Mutual Funds

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

According to a study by S&P Indices Versus Active (SPIVA), for the five years ending December 2019, a majority of funds were underperforming.
According to a study by S&P Indices Versus Active (SPIVA), for the five years ending December 2019, a majority of funds were underperforming.

Most mutual funds underperformed benchmarks during 2014-19 period: Report

  • 40% of large cap mutual funds underperformed the benchmark
  • Typically, asset management companies say one must invest in mutual funds for the medium to long-term and see through near-term volatilities

Mutual funds have been increasing their exposure in these investment avenues over the last one year.. Photo: iStock
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

Making a nomination is not mandatory.  (Photo: iStock)
Making a nomination is not mandatory. (Photo: iStock)

Having a nominee for your MFs can ease the transmission process after death

  • In the absence of nomination, the claimants have to provide documents such as death certificate, Will or other proofs of entitlement to be able to establish their claim on the mutual fund units
  • You can change the nomination anytime after it is made by cancelling the existing nomination or making a fresh one, which will overwrite the existing one

Photo: iStock
Photo: iStock
People have continued with their SIP investments and have also invested lumpsum to benefit from the attractive valuations. (iStockphoto)
People have continued with their SIP investments and have also invested lumpsum to benefit from the attractive valuations. (iStockphoto)

CAMS data shows arbitrage and debt fund exodus, steady equity flows

  • Equity funds (including ELSS) received a net inflow of 10,144 crore in the month of March, almost in line with 10,795 crore flows received in the month of February
  • The numbers look quite encouraging given the fact that equity markets registered their worst ever monthly fall in the month of March

Photo: iStock
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

As of March 2018, the Indian mutual funds industry had total AUM worth  ₹21.36 trillion, of which 3.8% were managed passively, said the report.
As of March 2018, the Indian mutual funds industry had total AUM worth 21.36 trillion, of which 3.8% were managed passively, said the report.

AMFI warns of disruptions to mutual funds in Covid-19 lockdown

  • AMFI highlighted three broad areas of disruption because of coronavirus-related restrictions in Mumbai
  • AMFI asked Sebi to view mutual funds’ inability to comply with regulatory circulars and timelines leniently in view of the exceptional circumstances.

Strong inflows through SIP route have also helped in raising investment in equity mutual funds to 11-month high of  ₹10,730 crore in February. (iStock)
Strong inflows through SIP route have also helped in raising investment in equity mutual funds to 11-month high of 10,730 crore in February. (iStock)

Mutual fund SIP investments rose 5.2% to over 8,500 crore last month

  • SIP continued to be the preferred route for retail investors to invest in mutual funds as it helps them reduce market timing risk
  • Inflows into SIPs have averaged over 8,200 crore for the 12 months till February

Photo: iStock
Photo: iStock

Cash calls may not always work for mutual funds

  • Don’t choose a fund based on its cash holding, instead evaluate parameters such as long-term returns, portfolio risk and the fund manager’s strategy
  • It is difficult to isolate a scheme’s outperformance from taking cash calls from, say, picking good stocks

Photo: iStock
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: Raj Sam/Mint
The life insurance industry does not have a large exposure to AT1 bonds, so the impact is only marginal ( Photo: iStock)
The life insurance industry does not have a large exposure to AT1 bonds, so the impact is only marginal ( Photo: iStock)

Direct AT1 bond investors the worst hit. Here’s why

  • There are different regulations on investments in AT1 bonds for different products
  • Several funds saw their exposure to AT1 bonds issued by Yes Bank move far above the 10% limit and lost a lot of money

Photo: iStock
Yes Bank account holders stand outside a branch of the bank to withdraw money in Patna. (PTI)
Radhika Gupta is the CEO at Edelweiss Asset Management Limited
Radhika Gupta is the CEO at Edelweiss Asset Management Limited

‘Girl with a broken neck’ builds a 30,000 crore Indian mutual fund house

  • 'Celebrate all your perfections. Celebrate all your imperfections' says Radhika Gupta, CEO at Edelweiss Asset Management Limited, in a video
  • Gupta and her staff are seeking to increase the company’s assets under management to 3 lakh crore by 2025

Consumer-related stocks accounted for about a third of Motilal Oswal Midcap 30 Fund's assets as of the end of January
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