Page 6 - Mutual Funds

Focused MFs' asset base rises 31% to Rs 1.43 trillion in April-June qtr

Focused mutual funds, which invest in a concentrated portfolio of stocks, are gaining traction among investors with the asset base of the category growing to Rs 1.43 lakh crore in three months ended June 2024, marking an increase of 31 per cent from a year ago. Interestingly, some of the focused funds offered by the mutual fund houses such as Invesco India Focused Fund, Mahindra Manulife Focused Fund, JM Focused Fund and HDFC Focused 30 Fund delivered a remarkable return of 40-60 per cent in the past year, industry data showed. Focused funds are a type of mutual fund where the fund manager selects a concentrated portfolio of stocks, typically limited to a maximum of 30 due to regulatory constraints. This requires the fund manager to be highly skilled in stock selection, as they need to identify the best investment opportunities across the market without bias toward any specific market cap or sector. According to data with the Association of Mutual Funds in India (Amfi), the assets

Equity MF inflow drops 9% to Rs 37k cr in July over drop in fund infusion

Inflow in equity mutual funds declined 9 per cent month-on-month to Rs 37,113 crore in July owing to the drop in fund infusion in large-cap, small- and mid-cap categories. Despite the dip, the quantum of net inflows witnessed in July was the second highest flows ever received in a month. Also, this was second only to the flows of Rs 40,608 crore received in June. The latest flow also marks the 41st consecutive month of net inflows in equity funds, data with the Association of Mutual Funds in India (AMFI) showed on Friday Moreover, monthly contributions from Systematic Investment Plan (SIP) rose to an all-time high of Rs 23,332 crore in July as against Rs 21,262 crore in the preceding month. This reflects the growing financial discipline among retail investors, helping them build wealth systematically over time, Venkat Chalasani, Chief Executive, AMFI, said. Overall, the mutual fund industry has witnessed an inflow of Rs 1.9 lakh crore in the month under review as compared to an ..

India's equity MF inflows ease off record high levels in July, shows data

The sequential 9.4 per cent drop in July from the previous month was due to profit booking at record high levels

Mkt regulator Sebi notifies mutual fund norms to prevent market abuse

Fund houses to put in place whistle-blower policy, top management to shoulder more responsibilities

Mutual fund and retail ownership in listed companies at fresh high

Foreign portfolio investments declined to its lowest level in 12 years

AT-1 bonds' valuation by mutual funds to be based on yield-to-call: Sebi

Capital markets regulator Sebi on Monday said that mutual funds will value Additional Tier 1 or AT-1 bonds based on yield to call (YTC) basis. Yield to call is the expected return an investor gets if they buy a bond and hold it until the issuer repurchases it on the call date, before maturity. This came after the National Financial Reporting Authority (NFRA) recommended that AT-1 bonds should be valued based on yield to call to align with market practices and Ind AS 113 principles. This recommendation applies only to the valuation of AT-1 bonds under Ind AS 113, not to other purposes. "In order to align the valuation methodology with the recommendation of NFRA, it has been decided that the valuation of AT-1 bonds by mutual funds shall be based on Yield to Call," Sebi said in a circular. However, for all other purposes, the deemed maturity of perpetual bonds will still follow the guidelines in the Master Circular. AT1 bonds are issued by banks with no maturity date, but they includ

Sebi amends mutual fund rules to curb front-running, insider trading

Capital markets regulator Sebi has amended mutual fund norms requiring Asset Management Companies (AMCs) to put in place an institutional mechanism to identify and deter front-running and insider trading in securities. Additionally, the management of AMCs will be responsible for ensuring the effectiveness of the institutional mechanism. Also, the regulator has directed AMCs to have a whistle-blower mechanism. This came in the wake of Sebi's passing two orders regarding front-running cases involving Axis AMC and Life Insurance Corporation of India (LIC). In a gazette notification dated August 1, Sebi said, "Asset management companies shall put in place an institutional mechanism, as may be specified by the Board, for the identification and deterrence of potential market abuse including front-running and fraudulent transactions in securities". Front-running refers to an illegal practice, where an entity trades based on advanced information from a stock broker or analyst before the .

Moderate earnings growth this year, but strong outlook: Bhandwaldar

Bhandwaldar discusses the potential end-of-earnings downgrades for the information technology (IT) sector, noting that upgrades will depend on the US outlook

How to strike a balance between investment expectation and financial goal

Investors must manage their biases and decide what is the right size for each of their positions in a portfolio

Multi-asset allocation funds steal a march on balanced advantage funds

Since April 2023, rake in Rs 42,980 crore versus Rs 14,033 crore garnered by BAFs

SBI Mutual Fund launches the Innovative Opportunities Fund: Check details

The fund will invest up to 35 per cent of the corpus in global stocks as and when the foreign investment limit is raised

Investment in equity MFs surge 5-fold to Rs 94,151 cr in June quarter

Investment in equity mutual funds surged over five-fold to Rs 94,151 crore in the June 2024 quarter against Rs 18,358 crore a year ago, driven by a strong economic environment, supportive government fiscal policies, investors confidence and robust stock return. This has also pushed the industry's assets under management (AUM) by 59 per cent to Rs 27.68 lakh crore in June from Rs 17.43 lakh crore a year ago, data from the Association of Mutual Funds in India (AMFI) showed. The robust gain in the asset base was also replicated in the growth of investors in equity mutual funds, with the number of folios closing at 13.3 crore, adding an investor base of over 3 crore. The significant gain in equity folios indicates broader participation across investor segments, driven by improved financial literacy and accessible investment platforms, Trivesh D, COO of stock trading platform Tradejini, told PTI. According to the AMFI data, equity-oriented mutual fund schemes invested Rs 94,151 crore in

Index fund folios up 12-fold since March 2020: Zerodha Fund House

Data from the Association of Mutual Funds in India (Amfi) pegs the index fund retail accounts or folios at 7.2 million in March 2024

Bajaj Finserv AMC launches fund 'focused on' 25-30 largecap stocks

Bajaj Finserv Large Cap Fund will have a concentrated portfolio with a 'high conviction' stock selection approach

Indian banks' short-term debt increases to 12-year high on loan demand

Depositors in India have been saving less in banks as soaring equity markets and avenues such as mutual funds, insurance funds and pension funds lure them

MF AUM increases to 29% of bank deposits on equity rally, inflows

In the financial years ending March 2023 and March 2022, MFs had cornered over 6 per cent of household savings. In FY21, this figure had been a mere 1.3 per cent, according to RBI data

MFDs cash in big: Commissions increase over 20% on market liftoff

SBI hits the mother lode: Rs 1,000 crore payoff from its mutual fund

Budget 2024 wishlist: Amfi's hopes for mutual fund reforms and tax benefits

Budget 2024: One of Amfi's main requests is to align the tax benefits for pension-focused mutual fund schemes with those of NPS

Motilal Oswal MF launches a new fund focusing on current capex cycle

The fund house said India has a huge manufacturing opportunity on the export front with sectors like chemicals, pharma, industrial machi­n­ery, and automotive likely to emerge as key drivers

New asset class to foster innovation, raise competition, say experts

Industry experts believe it may eat into some of the existing assets of MFs, PMS