Mutual Funds

The move directly affects the roughly 100,000 mutual fund distributors many who have used the IFA tag.
Photo: iStock
Dividends are now taxed in the hands of investors who hold the securities rather than at the company’s end.  (Photo: iStock)
During April-June quarter, inflows in such schemes stood at  ₹17,500 crore. (Photo: Reuters)
During April-June quarter, inflows in such schemes stood at 17,500 crore. (Photo: Reuters)

Equity MF inflows drop 50% to 12,000 cr in Dec qtr on valuation

  • Investors poured nearly 12,000 crore into equity oriented mutual funds in the three months ended Dec 2019, a sharp slump of 50% from the preceding quarter
  • Mid-cap funds saw infusion to the tune of 2,688 crore in the period under review, from 3,738 crore in the preceding three months, translating into a decline of 28%

Photo: Aniruddha Chowdhury/Mint
Signs of a revival in small- and mid-cap stocks pushed inflows into equity funds to five-month high (Reuters)
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon (Photo: iStock)
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon (Photo: iStock)

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

Total mutual fund industry assets stood at an average  ₹28 lakh crore
Photo: iStock
If you do want to invest in the fund, try to stagger your investment through a Systematic Investment Plan (Photo: Ramesh Pathania/Mint)
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon (Photo: iStock)
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon (Photo: iStock)

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

(Photo: iStock)
(Photo: iStockphoto)
Photo: iStock (iStock)
(L-R) N S Venkatesh, Chief Executive with Sachin Tendulkar and Nilesh Shah, Chairman, AMFI.
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon  (Photo: iStock)
Debt mutual funds: Which type of funds to go for depends on the duration of your investment horizon (Photo: iStock)

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

Photo: iStock
Photo: iStock

What’s further fund offer?

  • An FFO is different from a further public offer (FPO) or a follow-on offer, which is a term that applies to stocks rather than mutual funds
  • In an FPO, an already listed company issues shares to the public afresh

Quant funds follow a data-driven approach to pick stocks, using pre-defined parameters such as momentum or valuation (REUTERS)
Quant funds follow a data-driven approach to pick stocks, using pre-defined parameters such as momentum or valuation (REUTERS)

Why mutual funds are launching quant funds

  • Quant strategies, which fall somewhere in between active and passive trading, seek to reduce the role of human bias
  • Mutual fund houses are preparing for a future where passive investing takes hold in the country

A manager buys and sells scrips regularly, sometimes every day, to generate a return (Photo: iStock)
A manager buys and sells scrips regularly, sometimes every day, to generate a return (Photo: iStock)

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

Periodically switching funds from equity to debt funds is an efficient way to rebalance the portfolio (Photo: iStock)
Periodically switching funds from equity to debt funds is an efficient way to rebalance the portfolio (Photo: iStock)

The merits of debt fund systematic investment plans

  • Debt fund SIPs fit into the plan of investing surpluses regularly and protect them from entry point risks
  • For an SIP to hold its own, the values need to show volatility, and the debt market fits the criterion