Mutual Funds

Mint50 is a curated list of investment-worthy funds.
Mint50 is a curated list of investment-worthy funds.

Answering some Mint50 concerns

  • Sometimes the difference between two schemes is very minor and one scheme makes the cut simply on a technical ground
  • Do consult your financial adviser if you have one before taking a drastic portfolio churn decision

Majority of MFs having exposure in DHFL have marked down the value by about 75%
Majority of MFs having exposure in DHFL have marked down the value by about 75%

Kotak Mahindra mutual fund exposure in DHFL at 140 crore

  • The total exposure of the mutual fund industry in the company is estimated at 5,000 crore from 10 asset management companies
  • DHFL had reported a loss of 2,223 crore for the March quarter of the 2018-19 fiscal

This year we have changed our process and have outsourced the data work to CRISIL Research. The filters were developed by Mint, CRISIL Research has done the data crunching to throw out the league tables. (iStock)
This year we have changed our process and have outsourced the data work to CRISIL Research. The filters were developed by Mint, CRISIL Research has done the data crunching to throw out the league tables. (iStock)

The agony and ecstasy of putting out mutual fund lists like the Mint50

The Mint50 is a curated basket of 50 mutual fund schemes, offers products that can fit into three categories that cater to three primary expectations of investors

The final Mint50 list that made it through both these processes, we believe, are well-poised to continue giving investors the best experience.
You need not have all the 50 schemes in your portfolio. Photo: iStock
Mutual funds have significantly reduced their exposure to commercial papers after the IL&FS crisis last year, say analysts. (Photo: Aniruddha Chowdhury/Mint)
Mutual funds have significantly reduced their exposure to commercial papers after the IL&FS crisis last year, say analysts. (Photo: Aniruddha Chowdhury/Mint)

Mutual funds pare holdings in commercial papers in June

  • MFs’ stakes in commercial paper fell 13.69% from 4.31 tn in May to 3.72 tn in June
  • Mutual funds have significantly reduced their exposure to CPs in the aftermath of the IL&FS crisis

Mutual Funds primarily invest in equity (stocks) or debt (bonds). (iStock)
Mutual Funds primarily invest in equity (stocks) or debt (bonds). (iStock)

Why picking the right mutual fund is key in a tough market

  • The “mutual funds sahi hai” (mutual funds are good) catchline hasn’t amused investors, given their poor returns in the last two-three years when the industry faced setbacks
  • Mint analyses the reasons for the lacklustre performance of the funds and suggests what you should do

Expense ratio is deducted from the corpus of the fund on a daily basis (as a tiny fraction of the annual expense ratio). (Mint)
If Sebi's latest measures are hurting mutual funds, they have only themselves to blame for going out of line in the first place. (AFP)
If Sebi's latest measures are hurting mutual funds, they have only themselves to blame for going out of line in the first place. (AFP)

Debt mutual funds also need a ‘Sahi Hai’ moment

  • The key risks associated with debt funds include interest rate risk, credit risk and liquidity risk
  • Interest rate risk is triggered due to change in interest rates which generally has an inverse correlation to returns

Photo: Mint
Photo: Mint
The CPSE ETF tracks shares of 11 Central Public Sector Enterprises (CPSEs). (Photo: iStock)
The CPSE ETF tracks shares of 11 Central Public Sector Enterprises (CPSEs). (Photo: iStock)

Government to launch 6th tranche of CPSE ETF on 18 July

  • The issue is likely to open on 18 July for anchor investors and on 19 July for other investors
  • The government aims to raise a record 1.05 lakh crore through disinvestment in 2019-20

When yields fall, it leads to a rise in debt prices and, therefore, the net asset values of debt funds. (iStock)
 (Photo: iStock)
(Photo: iStock)

New tranche of gold bonds out with a discount

  • Sovereign gold bonds come at an issue price of 3,443 per gram, with a discount of 1.45%, which partially counteracts the customs duty hike of 2.5%
  • For those who wish to invest in it, sovereign gold bonds have emerged has a highly efficient vehicle

 (Photo: Mint)
Political stability, lower inflation coupled with the Reserve Bank's stance to lower interest rates is driving the enhanced retail inflows towards equity-oriented schemes, says Amfi CEO
Political stability, lower inflation coupled with the Reserve Bank's stance to lower interest rates is driving the enhanced retail inflows towards equity-oriented schemes, says Amfi CEO

Net inflows in equity MFs surge 54.4% month-on-month in June

  • Political stability, lower inflation, hopes of earnings growth fuel inflows into equity funds, says Amfi
  • Equity markets rose more than 1% in May after the victory of the Narendra Modi-led National Democratic Alliance

 (Photo: iStock)
(Photo: iStock)

Modi govt's $10 billion offshore bond plan is music for local markets

  • Economic Affairs Secretary said in terms of risk management, he don’t see offshore bond exceeding 10-15% of the total borrowing, which makes it roughly about $10 billion
  • Investors have been concerned about PM Modi’s plans to borrow a record 7.1 trillion locally this fiscal year