Mutual Funds

The RBI cited much higher than expected inflation when it surprised traders by keeping policy rates unchanged last month
The RBI cited much higher than expected inflation when it surprised traders by keeping policy rates unchanged last month

Indian bond yields are headed higher, Aditya Birla MF says

  • Inflation is expected to remain elevated over the next 6-12 months, said Maneesh Dangi, who oversees $23 billion of debt assets
  • An increase in inflation and fears of a wider fiscal deficit led to yields jumping in early December

In 2017, such schemes had witnessed an impressive inflow of around  ₹1.33 trillion as compared to  ₹51,000 crore in 2016 (Photo: iStock)
In 2017, such schemes had witnessed an impressive inflow of around 1.33 trillion as compared to 51,000 crore in 2016 (Photo: iStock)

Investment in equity mutual funds drops 41% to 75,000 crore in 2019

  • Equity and equity-linked saving schemes (ELSS) attracted an inflow of 74,870 crore in 2019, much lower than 1.2 trillion seen in 2018, Amfi data said
  • Experts, however, are of the view that equity schemes will attract investor interest this year as the market is expected to perform well

Photo: iStock
Franklin Templeton AMC has the highest exposure to Vodafone Idea debt (Photo: Reuters)
Tata Mutual Fund and DSP Mutual Fund have recently launched quant funds of their own
Tata Mutual Fund and DSP Mutual Fund have recently launched quant funds of their own

India's oldest quant mutual fund revamps its model

  • The Nippon India Quant Fund is looking at adding more factors into its investment model
  • The fund was established in 2008 as the Reliance Quant Fund, the first of its kind in India

N.S. Venkatesh, chief executive officer of Amfi
N.S. Venkatesh, chief executive officer of Amfi

Amfi seeks measures to boost mutual funds in budget

  • Amfi, in its memorandum, also wanted the government to recognize MFs as specified long-term assets
  • Amfi said that investments of up to 1.5 lakh under DLSS should be eligible for tax benefits, subject to a lock-in period of five years

The finance ministry had issued a notification in this regard in December 2019. (Photo: Pradeep Gaur/Mint)
The finance ministry had issued a notification in this regard in December 2019. (Photo: Pradeep Gaur/Mint)

In relief for asset managers, FinMin excludes mutual funds from foreign investor

  • The ministry has now excluded mutual funds from the category, reverting them to their original status
  • Ironically, retail domestic money invested in the schemes of foreign-owned mutual funds would have been counted as foreign money

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

The FoF structure helps you diversify and brings the views of multiple fund managers in a single portfolio (Photo: iStock)
The FoF structure helps you diversify and brings the views of multiple fund managers in a single portfolio (Photo: iStock)

Things to consider before you invest in debt FoFs

  • Axis All Seasons Debt FoF will dynamically invest in different debt market segments
  • The new FoF will hold 6-10 funds which will be selected based on their suitability to implement the manager’s views

Photo: iStock
The usual long-term returns assumption is about 12% (compounded annually). (Photo: iStock)
HDFC Mutual Fund: Financials accounted for 33% of stock assets
Some fund managers say value funds are underperforming in line with the broader market. (Photo: iStock)
Some fund managers say value funds are underperforming in line with the broader market. (Photo: iStock)

What’s ailing value funds?

  • Value funds are underperforming in line with the broader market as they can invest in any category
  • The fact that value investing is a subjective concept is another reason why these funds may be in trouble

Equity funds usually have low cash levels as these schemes are vehicles meant for long-term investments. (Photo: iStock)
Equity funds usually have low cash levels as these schemes are vehicles meant for long-term investments. (Photo: iStock)

Is your mutual fund holding too much cash?

  • Equity funds usually have low cash levels as these schemes are vehicles meant for long-term investments
  • Here’s a list of funds with the highest cash levels

From left) Nimish Shah of BNP Paribas Wealth Management, Rajeev Thakkar of PPFAS Mutual Fund, Tarun Birani of TBNG Capital and Aashish Somaiyaa of Motilal Oswal AMC
From left) Nimish Shah of BNP Paribas Wealth Management, Rajeev Thakkar of PPFAS Mutual Fund, Tarun Birani of TBNG Capital and Aashish Somaiyaa of Motilal Oswal AMC

Should Sebi-defined mutual fund categories be recalibrated?

The Securities and Exchange Board of India (Sebi) is reportedly considering expanding mutual fund categories. Neil Borate asks four experts if there is merit in recalibrating the existing Sebi-defined categories

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
S Naren of ICICI Prudential MF is advising clients to follow an asset allocation strategy (Photo: Mint)
S Naren of ICICI Prudential MF is advising clients to follow an asset allocation strategy (Photo: Mint)

S Naren of ICICI Pru MF bets on comeback of smallcaps but urges patience

  • Smallcap stocks have been struggling over the past two years, during which they have lost almost 30% of their value
  • In contrast, the benchmark equity index completed its fourth annual gain in 2019

Most MF schemes diversify across stocks and sectors (Photo: iStock)
Most MF schemes diversify across stocks and sectors (Photo: iStock)

How concentrated is your mutual fund scheme?

  • Diversified funds, too, can hold a concentration of their larger holdings and a much more diversified portfolio among the smaller holdings
  • Here is a list of funds with the highest concentration of top 10 holdings

S Naren, chief investment officer, ICICI Prudential Mutual Fund (Photo: Mint)
S Naren, chief investment officer, ICICI Prudential Mutual Fund (Photo: Mint)

S Naren of ICICI Pru Mutual Fund on US-Iran tension, asset allocation

  • The small cap segment is set to dominate the landscape for the next three to five years, after under-performing for two years, S Naren said
  • The large caps are extremely over-valued at present making them a no-go area, despite the vital roles that the companies are playing, S Naren said