Tag: mutual fund

Bandhan Mutual Fund launches Long Duration Fund: Should you invest?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bandhan Mutual Fund has recently introduced its newest offering, the Bandhan Long Duration Fund. This open-ended, long-term debt scheme aims to invest in a diversified portfolio of debt and money market securities, ensuring a Macaulay duration of over seven years.

While the scheme’s primary objective is to generate optimal returns over the long term, it’s crucial to note that there’s no guarantee of achieving this objective, as stated by the fund house.

The new fund offer (NFO) scheme will be available till March 18, 2024.

Plans option

The scheme offers regular and direct plans, each with separate net asset values (NAVs). Both plans provide an Income Distribution cum Capital Withdrawal Option (IDCW) and a growth option.

The IDCW option under both plans further offers a payout of the IDCW option, reinvestment of the IDCW option, and sweep/transfer of the IDCW plan.

Asset allocation

Regarding asset allocation, the Bandhan Long Duration Fund will invest in debt securities (including G-Sec and securitised debt) and money market instruments, with the Macaulay duration of the portfolio exceeding 7 years.

The indicative allocation ranges from 0% to 100% of total assets, with a risk profile categorised as low to moderate.

Minimum investment

The minimum investment allowed is ₹1,000 and in multiples of ₹1 thereafter.

Investment process

The investment process for the Bandhan Long Duration Fund is accessible through licensed mutual fund distributors, investment advisors, online platforms, and directly on the official Bandhan Mutual Fund website at https://bandhanmutual.com/nfo/bandhan-long-duration-fund/.

Risk structure

The Potential Risk Class Matrix indicates a relatively low credit risk (Class A), moderate credit risk (Class B), and relatively high interest rate risk (Class C).

The fund’s risk profile falls under Class IIIA, indicating relatively high-interest rate risk and relatively low credit risk.

A look at returns of similar funds

(Source: Moneycontrol)

Investment considerations

Investors looking to capitalise on potential opportunities in the changing interest rate environment may find this fund appealing, especially if they anticipate a decline in the current near-peak interest rates due to structural improvements in the economy, the fund house said.

In a statement regarding the launch, Vishal Kapoor, CEO of Bandhan AMC, highlighted the unique phase of the macroeconomic environment.

He emphasised that a combination of structural and cyclical improvements is likely to lead to lower deficits, reduced inflation, and increased foreign investments in Indian bonds.

These developments, Kapoor believes, will create an enticing opportunity for bond investments.

However, investors should be aware that the long duration of the fund may result in higher volatility compared to other debt fund categories.

Investors considering the Bandhan Long Duration Fund should carefully evaluate their risk tolerance and investment goals before deciding to invest.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This mutual fund has turned ₹1 lakh investment into ₹1.58 crore in 30 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Since its inception on February 1, 1994, the HDFC Balanced Advantage Fund has delivered a compounded annual growth rate (CAGR) of 18%. For perspective, this return means that ₹1 lakh investment at inception would have grown to ₹1.58 crore (158 times) now.

The fund is said to be one of the longest-running mutual funds in India.

With an AUM of ₹73,000 crore (as of December 31, 2023), the fund is amongst the largest actively managed mutual funds in the country, HDFC Mutual Fund said.

About the fund

HDFC Balanced Advantage Fund, an open-ended Balanced Advantage Fund, has the primary aim of achieving long-term capital appreciation and income through a dynamic allocation between equity and debt investments.

Mutual fund’s strategy

The mutual fund employs a dynamic investment strategy, actively managing allocations between equity and debt instruments, the fund house said.

“The approach to equity investments is guided by a broad framework that primarily considers market valuations, including the trailing twelve-month Price to Earnings Ratio of NIFTY 50 and the Earnings Yield/G-Sec Yield Ratio. The fixed income strategy includes diversification across credits, asset types, and tenures, with duration adjusted based on interest rate views. The credit risk is mitigated by prioritizing Safety, Liquidity, and Returns (SLR),” it said in a statement.

Adding to this, Navneet Munot, MD & CEO of HDFC AMC, said that if asset allocation is the key, HDFC Balanced Advantage Fund makes it easy.

Gopal Agrawal, Senior Fund Manager, HDFC AMC, said, “HDFC Balanced Advantage Fund has successfully navigated through multiple market cycles with its disciplined approach to investing and focus on the long term. The fund is well-diversified and aims to continue capitalising on India’s growth opportunity.”

Performance

(Source: HDFC Mutual Fund)

Fund managers

Srinivasan Ramamurthy serves as the fund manager for equity, while Gopal Agrawal holds the position of Senior Fund Manager in the equity domain.

Anil Bamboli takes charge as the Senior Fund Manager for fixed income. Additionally, Arun Agarwal serves as a Senior Fund Manager, contributing to the overall management of the fund.

Nirman S Morakhia also plays a role in fund management.

For overseas investments, the fund has Dhruv Muchhal.

ALSO READ | SBI Mutual Fund launches new fixed maturity plan with 91 days tenure: Should you invest?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mutual fund industry’s AUM nears ₹50 lakh crore-mark: How much of it comes from Tier 2, 3 cities?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The mutual fund industry in India has achieved a significant milestone, with assets under management (AUM) nearing the ₹50 lakh crore mark in November. Mohit Gang, CEO of Moneyfront, shed light on the evolving investment trends across metro cities and their smaller counterparts.

Gang initiated the discussion by highlighting pivotal changes brought about by the Securities and Exchange Board of India (SEBI) in 2018.

SEBI’s geographical classification based on factors like financial development, infrastructure, and overall progress differentiated between the top 30 metro cities and the subsequent 30 cities, is termed as B-30. This classification is aimed to glean insights into the origins of mutual fund assets.

According to Gang, the data from October indicates that approximately ₹39.4 lakh crore stems from the top 30 cities, while the next 30 cities contribute around ₹8.50 lakh crore to the mutual fund AUM.

Beyond these, the next tier of cities adds an additional ₹2-3 lakh crore. Notably, the B-30 cities have witnessed significant progress over the past decade.

Reflecting on the growth of B-30 cities, Gang remarked, “If we rewind 10 years and look at the percentage share of B-30 towns and cities in 2012, it was around 6 or 7%. Today, it has surged to approximately 25-26%, if not more.”

This leap underscores the progress these cities have made in contributing to the mutual fund landscape.

While the top 30 cities continue to dominate the mutual fund market, Gang emphasised the growth and development witnessed in the B-30 cities.

He acknowledged their increasing contribution to the overall AUM, highlighting the trajectory of progress observed over the past decade.

For full interview, watch accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ABSL MF, Axis MF see highest outflows in Q2 of FY 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India’s mutual fund industry continues to exhibit robust growth, with the assets under management (AUM) of open-ended funds reaching a staggering ₹46,29,982 crore as of September 2023. This marks a significant 5% increase from the preceding quarter and an impressive 21% rise compared to the same period last year, reflecting the growing investor confidence in the sector, according to AMFI data analysed by Morningstar India’s quarterly report.

Fund houses have seen a spike in inflows in the second quarter of the year, but some big fund houses have also experienced significant outflows. ICICI Prudential, Kotak Mutual Fund, Nippon MF, Quant MF, and Mirae Asset Mutual Fund saw the highest net inflows in the second quarter of FY 2023-24.

In contrast, Aditya Birla Sun Life, Axis MF, and UTI MF were among the fund houses that observed the highest outflows in the same period, with ABSL MF experiencing total outflows of ₹13,755 crore. Many schemes from these fund houses have seen substantial outflows in the last year.

In the latest quarter, open-end mutual funds witnessed net inflows of ₹34,765 crore. Although substantial, these inflows are notably lower than the ₹1,84,789 crore recorded in the quarter that ended in June 2023, indicating a shift in investment patterns amidst evolving market conditions.

The industry’s composition reveals a well-diversified portfolio. Equity funds remain a major component, constituting about 41% of the total AUM. Fixed-income funds follow closely, accounting for 28%, demonstrating a balanced approach by investors towards risk and return. Other categories, including allocation/hybrid, solution, and miscellaneous funds, collectively make up the remaining 31%, underlining the varied preferences of investors.

The equity segment, particularly, has shown remarkable growth. Open-end equity funds registered a net inflow of ₹41,962 crore in the second quarter of fiscal 2023-24. Their total AUM as of September 2023 stood at an impressive ₹19,08,088 crore, up by 9% since June 2023 and a significant 30% increase over the same period last year.

Conversely, open-end fixed-income funds experienced net outflows amounting to ₹65,944 crore in the second quarter of fiscal 2023-24. Despite this, their AUM stood at ₹13,05,212 crore as of September 2023, marking a slight 3% decrease from the last quarter but still up by 5% year-on-year.

An interesting trend has emerged in the “Other Schemes” category, which includes a variety of subcategories like ETFs, index funds, and funds of funds overseas. This category has gained significant traction, witnessing net inflows worth ₹10,115 crore in the second quarter of fiscal 2023-24.

Additionally, the period saw the launch of 48 new fund offerings (NFOs), collectively garnering an impressive ₹22,049 crore during their NFO period. This underscores the growing appetite for novel investment opportunities among Indian investors.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is this the right time to invest in US bonds?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

There has been a significant surge in US Treasury yields recently, prompting investors to consider the potential merits of investing in US Treasury bond funds. Nirav R Karkera, Head of Research at Fisdom, shared insights on this matter during an interview with CNBC-TV18.

He suggested that when examining the current interest rate landscape, it appears that we may be nearing a peak. This, in turn, presents a compelling case for investing in US Treasury bonds.

Karkera went on to explain that “The increase in yields and, all of this narrative around macroeconomic and geopolitical tensions spell out challenges for various asset classes. But when we talk about US treasury bonds at this point in time, we feel that the narrative may be slightly different and positive. The US Treasury bonds could be such a story at this point in time, considering everything that’s happening and the outlook on the interest rate going forward as well.”

ALSO READ | Now you can invest in Floating Rate Savings Bonds via RBI’s retail direct portal

When asked about how retail investors can access US Treasury bond funds through the mutual fund (MF) route, Karkera highlighted the convenience of this approach. He noted that investing in these funds through the MF channel is as straightforward as investing in any other mutual fund.

Although there are options to invest directly in exchange-traded funds (ETFs), this would entail collaborating with specific brokers and dealing with associated charges and regulatory compliance requirements.

On the other hand, the mutual fund industry has made it simpler for Indian investors to gain exposure to US Treasury bonds. Karkera said, “Two asset management companies, Bandhan Mutual Fund and Aditya Birla Sunlife Mutual Fund, have introduced products that provide access to US Treasury bonds. These funds operate as funds of funds, primarily investing in ETFs that hold US Treasury bonds.”

“Investors can participate in these funds by accessing their preferred intermediaries or directly through the asset management companies, making the investment process straightforward and consistent with their usual mutual fund investments,” he told CNBC-TV18.

ALSO REA | Youngsters prefer mutual funds over insurance and fixed deposits for retirement planning

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bandhan Mutual Fund launches Nifty Alpha 50 Index Fund; NFO open for subscription

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bandhan Mutual Fund has launched the Bandhan Nifty Alpha 50 Index Fund. The new scheme is an open-ended index fund tracking Nifty Alpha 50 Index. The new fund offer opens for subscription on October 25, 2023 and closes on November 6, 2023. The new fund is a passive scheme following a rule-based investment approach.

The scheme is an alpha factor-based fund, which picks up investment options based on factors and rules set by the fund house.

According to the fund house, the Nifty Alpha 50 index will follow a structured, quantitative-led process of assigning weights to the securities based on alpha values, where the security with the highest alpha in the index is assigned the highest weight. A rule-based investment approach reduces bias when making investment decisions. The alpha strategy adapts to the changing market conditions, leveraging investment opportunities across segments.

“Traditional passive funds are designed to mimic their benchmark and thus offer broad market-based returns. Bandhan Nifty Alpha 50 Index Fund aims to generate outperformance by selecting stocks with specific factors that produce potentially higher risk-adjusted returns compared to the market. NSE data, as of September 30, 2023, indicate that the Nifty Alpha 50 Index has outperformed the Nifty 50 Index and the Nifty 500 Index, generating an alpha of ~5% over these broad-based indices, albeit with higher volatility. Savvy Investors seeking to add an aggressive strategy to their portfolio could include Bandhan Nifty Alpha 50 Index Fund, to enhance the growth potential of the portfolio,” said Vishal Kapoor, CEO, Bandhan AMC.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

One of India’s oldest fund managers has started a new mutual fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

One of India’s oldest fund managers has started a new mutual fund in a market already crowded by big legacy players. For Helios Capital founder Samir Arora, however, it is a familiar turf and “one more avenue to offer the fund management” that he has been doing for so long, and in his words, “quite reasonably well”.

“We are not businessmen; we are fund managers. And this is just one more avenue to offer the fund management that we have done for so long and quite reasonably well. And I was in Alliance, I was their first employee and I was more or less the first employee of any company in this business in 1993. I totally enjoyed that first stint, and I wanted to relive that,” Arora told CNBC-TV18.

In early August, Arora informed on X platform (formerly known as Twitter) that his firm had received markets regulator Sebi’s approval to launch a mutual fund business. Helios Capital, which is in the business of portfolio management services, applied for a mutual fund license with Sebi in February 2021.

Lauded as a “rockstar” for his performance as the Chief Investment Officer of Alliance Capital’s Indian mutual fund business, Arora isn’t perturbed by the burden of expectations as he re-enters the mutual fund industry after two decades.

“I’m too humble to say a rockstar. It was a good performance. We became number one in those days in Alliance while we were competing with all the big daddies of India with big partners, whereas Alliance was 100% foreign-owned in that sense. We hope to relive that whole experience,” Arora told CNBC-TV18.

However, Arora-led Helios Capital is not alone in venturing into India’s mutual fund markets.

Discount brokerage firm Zerodha also recently got Sebi’s nod to set up an asset management company. Earlier this year, diversified financial services group Bajaj Finserv also entered the highly competitive mutual funds business.

Billionaire Mukesh Ambani-led Reliance Group’s Jio Financial Services and US-based BlackRock Inc have also announced a joint venture to launch asset management services in India. Jio Financial Services was demerged from Reliance Industries on July 20.

An opportunity or an overcrowded space?

The Indian mutual fund industry has been growing at a fast pace with the Systematic Investment Plan (SIP) inflows in September 2023 reaching an all-time high of Rs 16,042 crore, marking a notable increase from the previous month’s Rs 15,814 crore. The number of SIP accounts hit an unprecedented high, reaching 7.12 crore in September, compared to 6.9 crore in August 2023.

The SIP Assets Under Management (AUM) also saw a substantial increase, reaching Rs 8.72 lakh crore in September, up from Rs 8.47 lakh crore in August 2023. Not just that, the number of new SIP registrations in September 2023, soared to over 36 lakh marking the highest ever figure recorded, demonstrating the growing interest and participation of retail investors.

The equity segment in September received a significant boost with the introduction of six new fund launches, collectively accumulating Rs 2,503 crores in investments, said Melvyn Santarita, Analyst – Manager Research at Morningstar Investment Adviser India.

With that said, one needs to consider that there are more than 40 fund houses, but the top 10 fund houses or AMCs (Asset Management Companies) manage over 70% of the mutual fund assets in India.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Got your annual bonus? Invest in your dreams

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Did you recently receive your annual bonus? Instead of indulging in extravagant shopping, this article aims to guide you towards wise investments and potential financial growth.

Investing your bonus is an excellent way of potentially increasing your finances to achieve your goals.

It’s a step towards securing a stable financial future. But what if you’re not comfortable with locking your money for an extended period and need access to liquid cash? That’s where Ultra-Short-Term Funds come into play.

Watch this video and understand more about ultra- short funds:

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bandhan MF introduces Nifty IT Index Fund to seize growth potential in Indian IT sector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bandhan Mutual Fund on August 18 introduced the Bandhan Nifty IT Index Fund, which is an equity scheme available for continuous investment. The fund is designed to mirror the performance of the Nifty IT index, with the objective of capitalising on the promising growth prospects within the Indian Information Technology (IT) sector. Investors can participate in the New Fund Offer (NFO) until Monday, August 28, 2023.

In an exclusive conversation with CNBC-TV18, Gaurab Parija, the Head of Sales & Marketing at Bandhan AMC, highlighted the remarkable trajectory of the IT index as one of the most consistently high-performing sectors over the years. According to Parija, Bandhan AMC sees the IT sector as an incredibly compelling theme to explore.

Also Read | Bandhan MF launches Nifty IT Index Fund, NFO to be available till August 28

Market reports project a noteworthy surge in IT spending, expected to double over the next 5-10 years, catapulting from the current 5 percent to a significant 10 percent.

While acknowledging a short-term underperformance of the IT sector, experts underscore the presence of a substantial runway for this core sector within IT. The long-term outlook remains robust, with the sector poised to capitalise on emerging opportunities and navigate challenges effectively.

For full interview, watch accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Give Wings to Your Savings: Investing the right way to attain your goals

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Have you ever wished to make your dreams come true, like owning your dream home, traveling to exciting places, or planning an early retirement? With the power of mutual funds, you can turn these aspirations into a reality.

Think of goal-based investing as a personalised roadmap that leads you to your dreams.

Goal-based investing via mutual funds is a strategic approach that aligns your investment decisions with specific financial objectives. By identifying clear goals, and selecting appropriate mutual funds, investors can create a disciplined and focused investment plan. This article explores how goal-based investing through mutual funds empowers individuals to achieve their aspirations while benefiting from the potential growth of diversified and professionally managed portfolios.

The beauty of goal-based investing is that it keeps you on track. Instead of making random investments without a clear purpose, you invest with a specific target in mind. This discipline helps you stay focused on your goals and avoid getting swayed by short-term market fluctuations.

As you continue investing regularly and sticking to your goals, you benefit from the power of compounding which is like a snowball effect: your investment gains generate additional returns, and these returns, in turn, generate more returns. Over time, compounding can significantly boost your wealth, especially when you’re patient and let your investments grow.

To know more about Goal Based Investing, watch our masterclass video by A. Balasubramanian, Chairman, AMFI where he sheds light on the topic in conversation with Surabhi Upadhyay and  Sonia Shenoy from CNBC-TV18.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow