Mutual funds reel from Reliance Business Broadcast Holdings default

• CARE Ratings downgraded Reliance Business Broadcast Network Holdings Ltd (a Reliance ADAG Group company) to D due to a delay in debt servicing
• Mutual Funds have a roughly ₹654 crore exposure to Reliance Business Broadcast Network Holdings Ltd as per data from Rupeevest.

What India’s top three mutual funds bought and sold last month

• Equity mutual funds received ₹9,150 crore inflows last month
• This is the highest since March

Mint50: Hand-picked mutual funds to build your portfolio

Mint50, a curated basket of investment-worthy funds, is the result of an exhaustive exercise that blends in various parameters with the aim of getting you the best combination of risk and returns

Reliance MF asks Yes Bank promoters to top up collateral as stock price plummets

• Reliance Mutual Fund has an exposure of ₹2,177 crore (as of July 31st 2019) to Yes Bank debt according to data from CRISIL
• Exposure to Yes Bank in individual schemes of Reliance Mutual Fund has also reached alarming levels

I would always recommend mutual funds over individual stocks: Anand Rathi

• The effort needed to manage individual stocks is much higher than the effort required for mutual funds
• Anand Rathi talks about the ongoing economic slowdown and the reforms that can reverse it

Is your mutual fund buying or selling stocks too much?

• If the portfolio turnover is greater than 100%, that typically means that the manager has churned the portfolio once over, completely
• A high turnover is not necessarily bad, but a consistently high turnover is not desirable unless the inherent strategy of the scheme calls for a high churn

Five situations when SIPs can harm your portfolio

• It’s important to assess when to stop, pause, switch or reduce your SIP allocation
• If a fund is performing poorly, stop an SIP into it. But remember to start switch to another SIP in a better performing scheme

Domestic investors keep faith in equity mutual funds despite volatile markets

• Open-ended equity schemes witnessed an infusion of ₹9,152 crore in August
• Inflows in mutual funds (MFs) through SIPs stood at ₹8,231 crore

Mint50: Hand-picked mutual funds to build your portfolio

Mint50, a curated basket of investment-worthy funds, is the result of an exhaustive exercise that blends in various parameters with the aim of getting you the best combination of risk and returns

Slowdown shock: PPF beats mutual funds over 5 years

• Post-tax return from PPF higher, but that may change in long run
• A recovery can change the picture dramatically, so investors should stick to their long-term allocation

Balanced advantage funds fail to deliver

• The freedom to switch between equity and debt hasn’t helped these funds
• Fund managers failed to move into debt and protect investors as equity markets floundered over the past year

Mutual fund costs matter

• Ideally, the lower the expense, the better it is for your fund as expenses reduce the fund returns to that extent
• Here is a list of actively managed equity schemes with the lowest expenses

Returns from PMS, AIFs tell only half the story, thanks to poor disclosure

Standardized, comprehensive performance disclosures are a fundamental necessity

Switch to debt funds two years before goal

As the investments are meant for long term, you need to consider equity as an asset class (invest via SIPs in equity-based mutual funds)

Five things to keep in mind before choosing an ELSS

• Ensure that the features of the ELSS fit in with what you want from the investment
• ELSS schemes have a 3-year lock-in during which they cannot be redeemed or switched. Selecting the right scheme, therefore, becomes very important

Mutual funds continue to cut exposure to debt of NBFCs

• The funds invested 7.1% of their assets in commercial papers from shadow lenders and 6.9% in bonds last month, the data showed
• Edelweiss Housing Finance and PNB Housing Finance are among other top non-bank lenders that saw their debt ratings cut as a cash squeeze added to default risks

To build debt fund portfolio, stick to short- and ultra-short categories

• I would recommend an asset allocation that apportions 60% of your investment to equity and the remaining 40% to debt.
• You can have a portfolio of a blend of equity funds such as Mirae Asset Large Cap fund, Invesco India Growth Opportunities fund, Kotak Standard Multicap fund and Franklin India Smaller Companies fund

Mint50: Hand-picked mutual funds to build your portfolio

Mint50, a curated basket of investment-worthy funds, is the result of an exhaustive exercise that blends in various parameters with the aim of getting you the best combination of risk and returns

Should you invest in active or index funds? Here’s what CRISIL AMFI report says

• Active funds outperformed benchmarks over most time periods ranging from three to 10 years
• The outperformance is also seen in most equity fund categories, including large-cap, large-and-mid-cap, multi-cap, mid-cap, small-cap, equity-linked savings schemes, focused and value/contra funds

Share of mutual funds doubles in households’ financial assets

• Mutual funds have registered a 31% compounded annual growth rate from 2014-18
• Funds have doubled their share of gross household financial assets from 3% to 6% during 2014-18