5 Minutes Read

Direct vs regular mutual funds: Which is better for you?

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

 Listen to the Article (6 Minutes)

Summary

Direct investing entails independent investment without the aid of a mutual fund distributor or financial intermediary. Conversely, regular plans involve the guidance of MF distributors who navigate investors through market cycles.

When it comes to investing in mutual funds, investors are often presented with two primary options: direct plans and regular plans. Each option comes with its own set of advantages and considerations, making the decision-making process crucial to align with individual investment styles and financial objectives.

Direct investing entails independent investment without the aid of a mutual fund distributor or financial intermediary.

Conversely, regular plans involve the guidance of MF distributors who navigate investors through market cycles.

To shed light on this topic, CNBC-TV18 interviewed Amit Bivalkar, Founder & Director of Sapient Finserv, who highlighted the longstanding presence of direct plans, offering investors the opportunity to engage directly with mutual fund teams, thus bypassing distributors.

He mentioned that direct plans can also be accessed through registered investment advisors, albeit with a fee, or via execution-only platforms.

In contrast, regular plans entail investing through intermediaries such as mutual fund distributors.

Bivalkar suggested that direct plans are more suitable for experienced investors capable of understanding market fluctuations and making informed decisions regarding asset allocation and timing.

He pointed out that while the underlying portfolio in both direct and regular plans may be identical, the disparity lies in the distribution costs. Bivalkar explained, “The underlying portfolio in a regular plan or a direct plan is the same; therefore, the raw gross returns, if you try to look at them, are absolutely similar. But the difference in return will arise due to the distribution cost of a regular plan. So typically, the total expense ratio (TER) of a direct plan is the overall TER of a mutual fund scheme minus the distributor commission.”

However, Bivalkar cautioned against solely pursuing higher returns, emphasising the significance of understanding one’s risk profile and selecting investments accordingly.

He suggested that investors confident in their abilities may opt for direct plans, while those preferring guidance should seek the assistance of a distributor or advisor.

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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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With new financial year only 3 days away, here’s a look at key changes slated for April

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

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Summary

From revisions in some credit card policies to shifts in banking and investment regulations, here’s a breakdown of what’s in store in the first month of FY 25.

With financial year 2024-25 set to start from April 1, numerous changes are poised to take effect. This may affect individuals across various domains. From revisions in some credit card policies to shifts in banking and investment regulations, here’s a comprehensive overview of what lies ahead:

Credit card changes

SBI Card to overhaul reward points policy

SBI Card has updated its policies on the accrual of reward points. Commencing from April 1, 2024, the accrual of reward points on rent payments will be discontinued for a range of credit cards offered by the lender. AURUM, SBI Card Elite, SimplyCLICK SBI Card, are among the cards primarily affected.

ICICI Bank to raise minimum spend for lounge access

ICICI Bank has revised its criteria for complimentary airport lounge access. Starting from April 1, 2024, customers will have to spend a minimum of ₹35,000 in the preceding calendar quarter to unlock one complimentary airport lounge access for the subsequent quarter. This modification applies to a variety of ICICI Bank credit cards, including the Coral credit card, MakeMyTrip ICICI Bank Platinum credit card, and others.

YES Bank to adjust lounge access benefits

Yes Bank will revamp its domestic lounge access benefits from April 1, 2024. The bank has officially communicated that, for all its credit cards, cardholders will be required to spend a minimum of ₹10,000 in the ongoing quarter to qualify for lounge access in the subsequent quarter.

Axis Bank to change Magnus Credit Card benefits

Axis Bank has announced changes to its Magnus Credit Card from April 20 onwards. These revisions include adjustments to reward earnings, lounge access programmes, and annual fee waiver exclusions.

Spends on insurance, gold/jewellery and fuel categories will no longer qualify for reward points.

Benefits, including complimentary concierge services and airport meet and assist services, will be discontinued.

The lender will also make changes to the domestic airport lounge access programme, necessitating a minimum spend of ₹50,000 in the preceding three months for lounge access.

The number of complimentary guest visits for both domestic and international lounges will also be reduced from eight to four per calendar year.

Debit card changes

SBI to increase annual maintenance charges by ₹75 on some debit cards

State Bank of India (SBI) has announced a hike of ₹75 in the annual maintenance charges associated with certain debit cards. The same will be effective from April 1, 2024, as per the information available on the SBI website.

Mutual fund changes

Mutual funds to stop fresh inflows in overseas ETFs

The Securities and Exchange Board of India (SEBI) has directed asset managers to halt inflows into schemes investing in overseas exchange-traded funds (ETFs) effective April 1. Experts believe that SEBI’s move come on the back of overall industry surpassing the $1-billion (approximately ₹8,311 crore as of March 21, 2024) limit.

Consequently, the Association of Mutual Funds in India (AMFI) issued a letter to fund houses instructing them to cease accepting subscriptions to funds investing in overseas ETFs from April 1, 2024.

Investment changes

New login mechanism for NPS accounts

Starting April 1, 2024, National Pension System (NPS) users will be required to undergo Aadhaar-based login authentication, which will be integrated with the existing user ID and password-based login process.

The Pension Fund Regulatory and Development Authority (PFRDA) said this new login process seeks to address concerns related to unauthorised access and potential security threats within the NPS framework.

Aadhaar’s two-factor authentication system introduces additional layers of verification to certify the authenticity of fingerprints.

Insurance changes

Insurance regulator’s final rules on surrender value from April 1

The Insurance Regulatory and Development Authority of India (IRDAI) has announced its final regulations concerning surrender value. Effective April 1, 2024, surrender value is expected to remain the same or even lower if policies are surrendered in a period of within three years.

However, policies surrendered between the fourth and seventh years may witness a marginal increase in surrender value.

For non-single premium life insurance policies, a guaranteed surrender value will be provided upon payment of premiums for at least two consecutive years.

E-insurance to become mandatory

The Insurance Regulatory and Development Authority of India (IRDAI), has announced the compulsory digitisation of insurance policies starting April 1, 2024. Under this directive, all insurance policies across various categories, including life, health, and general insurance, will be issued electronically.

FASTag protocol update

Come April 1, 2024, a significant change is slated for FASTag users too.

Failure to update the Know Your Customer (KYC) details of one’s FASTag with the bank may lead to disruptions in toll payments. Banks will deactivate FASTags lacking updated KYC information post-March 31.

Even with a balance, payments won’t be processed, necessitating double toll tax payments at plazas.

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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Over half of equity large-cap funds underperformed their benchmark in 2023: Report

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

 Listen to the Article (6 Minutes)

Summary

The report further noted that the benchmark for Indian equity mid-/small-cap funds, the S&P BSE 400 MidSmallCap Index, rose 44% in 2023, and 74% of active managers underperformed this index over that period.

Over half of Indian equity large-cap funds failed to beat the benchmark, with 52% of actively managed funds underperforming the S&P BSE 100, according to S&P Indices Versus Active Funds India Scorecard for the year ending December 2023.

The past year saw differing performance among active fund managers across categories, the report said.

Just 30% of Indian equity linked savings scheme (ELSS) funds underperformed their benchmark. The S&P BSE 200 and is the only category where the majority of funds outperformed the relevant benchmark last year.

The SPIVA Year-End 2023 report further noted that the benchmark for Indian equity mid-/small-cap funds, the S&P BSE 400 MidSmallCap Index, rose 44% in 2023, and 74% of active managers underperformed this index over that period.

This funds category also fared the worst in the long run, with 75% of them lagging the S&P BSE 400 MidSmallCap Index over the 10-year period ending December 2023.

According to the report, the S&P BSE India Government Bond Index increased by 7.9% in 2023 and less than a fifth of active managers beat the benchmark in this category in 2023, bringing the underperformance rate to 82%.

Similarly, the S&P BSE India Bond Index rose 8.0%, while the underperformance of Indian Composite Bond fund managers was the highest across all categories in the SPIVA India Scorecard, at 96%.

The report also took into account the global market conditions and how India stood amidst other markets.

The SPIVA Year-end 2023 finds India among the leaders of the global stock market rally with all observed equity benchmarks posting gains of over 20% for the year.

Indian bond markets also had a strong year, with annual returns in the high single digits (8.0%).

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Zerodha Fund House crosses ₹1,000+ crore AUM: Here’s a look at schemes currently available

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

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Summary

Zerodha Fund House (Zerodha Mutual Fund) is passive-only fund house providing direct plans to do away with transaction charges.

Zerodha Fund House, a joint venture between Zerodha and smallcase, has crossed the ₹1000+ crore mark in Assets Under Management (AUM) within 40 days of crossing the ₹500 crore threshold. The announcement came through a tweet by Vasanth Kamath, Founder and CEO of smallcase.

In his tweet, Kamath acknowledged the rising demand for index-based investment products.

It must be noted that Zerodha Fund House (Zerodha Mutual Fund) is passive-only fund house providing direct plans to do away with transaction charges.

Here are the details of the schemes currently offered by Zerodha Fund House:

Fund Name Type AUM (₹ crore) Expense ratio Minimum investment Lock-in period iNAV
Zerodha Nifty LargeMidcap 250 Index Fund (ZN250) Index Fund ₹278.22 0.25% ₹100 None
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund (ZELSS) ELSS Tax Saver Fund ₹66.33 0.25% ₹500 3 years
Zerodha Nifty 1D Rate Liquid ETF (LIQUIDCASE) ETF ₹640.51 0.26% ₹101.4122
Zerodha Gold ETF (GOLDCASE) ETF ₹41.1 0.32% ₹10.7098

(Source: Zerodha Fund House website)

Zerodha Fund House said it will soon introduce more funds designed to serve specific roles in investors’ portfolios, both in fund and ETF formats.

Investors can participate in Zerodha Fund House schemes via digital platforms such as Coin, Groww, Kuvera, Paytm Money, IND Money, CAMS Online, MFU, and MFC.

ALSO READ | March 31 is the deadline to redo mutual fund KYC: Here’s who needs to act and how

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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March 31 is the deadline to redo mutual fund KYC: Here’s who needs to act and how

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

 Listen to the Article (6 Minutes)

Summary

To determine whether re-KYC is necessary, investors should consult the CVL KRA website or contact mutual fund houses or RTA helplines.

The deadline for mutual fund (MF) investors to redo their KYC (know your customer) verifications will end on March 31, 2024. Registrar and transfer agents (RTAs), CAMS (Computer Age Management Services), and KFin Technologies (KFintech) have issued emails to mutual fund distributors (MFDs), stressing the need for action.

It must be noted that failure to comply by March 31, 2024, will result in restrictions on mutual fund transactions effective April 1.

This includes SIPs (systematic investment plan), SWPs (systematic withdrawal plan), and redemptions.

Who needs to do this?

Investors whose KYC is not based on any of the ‘officially valid documents’ should do this by March 31.

Officially valid documents include an Aadhaar card, passport, and voter ID card.

KYC based on proofs such as bank statements and utility bills will no longer suffice post-deadline.

Additionally, ambiguity persists regarding certain documents like driving licenses for KYC purposes.

While CAMS indicates the need for resubmission, Kfintech lists driving licenses as valid documents.

How to redo mutual fund KYC?

To determine whether re-KYC is necessary, investors should consult the Central Depository Services Limited (CDSL) Ventures Limited – Know Your Customer Registration Agency (CVL KRA) website or contact mutual fund houses or RTA helplines.

However, it’s important to recognise that re-KYC cannot be completed online.

Redoing KYC requires submitting a physical KYC form along with the documents to mutual fund houses or RTAs.

Subsequently, this information is relayed to KYC registration agencies (KRAs), ensuring that the updated KYC details are reflected across all mutual fund investments linked to the investor’s Permanent Account Number (PAN).

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

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LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Deadline to seek tax benefits via ELSS mutual funds for FY24 ends today: Where should you invest?

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

 Listen to the Article (6 Minutes)

Summary

ELSS funds have long been favoured by investors for their dual benefits of tax savings and the potential for wealth creation through equity investments.

As the financial year 2023-24 nears its end, individuals adhering to the old tax regime must complete their income tax-saving investments by March 31, 2024. However, this year presents a unique challenge as the deadline coincides with a Sunday.

Additionally, stock markets are set to cease operations on Friday, March 29, 2024, in observance of Good Friday. With stock markets and mutual fund houses closed over the weekend, investors eyeing ELSS mutual funds must secure tax benefits under Section 80C by Thursday, March 28.

While banks will remain open on Saturday, March 30, 2024, investors may face delays in fund realisation and unit allocation, navigating through KYC procedures and bank holidays.

SEBI’s guidelines stress the significance of timely fund crediting to the mutual fund bank house.

This is crucial for validating investments and aligning with market fluctuations to secure favourable Net Asset Values (NAV).

How to invest?

For investment strategies, experts advocate for a systematic investment plan (SIP) approach.

This approach builds discipline and mitigates cash outflow burdens.

Emphasising strategic timing, lump sum investments during market downturns are recommended over impulsive decisions.

Where to invest?

The recent performance data highlights returns from various funds over three years:

ELSS fund Three-year return (%)
Motilal Oswal ELSS Tax Saver 27.4%
HDFC ELSS Tax Saver 29.2%
Bank of India ELSS Tax Saver 28.6%
Quant ELSS Tax Saver 31.8%
SBI Long Term Equity 33.5%

(Source: Value Research; returns are as of March 12, 2024, with SIP initiation on the first of every month)

Notably, SBI Long-Term Equity Fund, the oldest scheme in the ELSS category, has consistently outperformed benchmarks over one-, three-, and five-year periods.

Compounded Annualised Growth Rate (CAGR) performance 1 year 3 year 5 year Since Inception
SBI Long-Term Equity Fund 57.86% 26.53% 22.18% 16.54%
Scheme Benchmark: S&P BSE 500 TRI 39.34% 19.41% 18.98% NA
Additional Benchmark: S&P BSE Sensex TRI 24.51% 15.21% 16.48% 13.39%

(Source: SBI Mutual Fund)

However, investors should remember that while returns are important, they shouldn’t be the sole factor in their investment decision-making process.

Here are the factors to consider when investing in ELSS:

Assess financial goals

Determine the investment objectives, whether it’s long-term wealth accumulation, tax-saving goals, or a combination of both.

The goals will influence investment horizon and risk tolerance.

Understand ELSS

ELSS funds primarily invest in equities and offer tax benefits under Section 80C of the Income Tax Act, making them suitable for long-term wealth creation while saving taxes.

Evaluate fund performance

Review the historical performance of ELSS funds, considering returns over different periods (1-year, 3-year, 5-year, etc.).

Look for consistent performers with a track record of outperforming their benchmarks and peers.

Consider fund manager expertise

Assess the expertise and experience of the fund manager managing the ELSS fund.

A skilled and experienced fund manager can make a significant difference in fund performance over the long term.

Analyze fund portfolio:

Examine the composition of the fund’s portfolio, including sector allocation, market capitalisation preferences, and diversification strategy.

Ensure that the fund’s investment philosophy aligns with the risk profile and investment objectives.

Risk vs return

Evaluate the risk-return profile of ELSS funds. Higher returns often come with higher volatility and risk.

Consider the risk tolerance and investment horizon when selecting funds with an appropriate risk-return balance.

Expense ratio

Pay attention to the expense ratio of ELSS funds, which represents the annual fees charged by the fund house for managing the fund.

Lower expense ratios translate to higher returns for investors over the long term.

ALSO READ | The top ELSS performer delivered 61% return in 1 year: Check the rankings

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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SEBI raises questions on ‘mis-selling’ of products by several mutual fund houses

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

 Listen to the Article (6 Minutes)

Summary

Sources familiar with the matter have informed CNBC TV-18 that SEBI, in its recent communications with various mutual fund houses, has expressed reservations regarding selling practices within the mutual fund industry.

The Securities and Exchange Board of India (SEBI) has reached out to several mutual fund houses, raising concerns about the mis-selling of mutual fund products. Specifically, there have been worries regarding the sale of high-risk mutual funds to investors with low risk tolerance.

This development, first reported by Livemint, follows recent remarks by SEBI addressing the ‘froth’ in the small-cap sector.

The capital market regulator has urged mutual fund houses to conduct stress tests on their small-cap schemes and disclose the results publicly. These stress tests will determine the duration required to liquidate 50% and 25% of the small- and mid-cap portfolio without compromising accumulated gains.

Sources familiar with the matter have informed CNBC TV-18 that SEBI, in its recent communications with various mutual fund houses, has expressed reservations regarding selling practices within the mutual fund industry.

Of particular concern are instances where high-risk mutual funds are being promoted and sold to investors with low risk tolerance.

The regulatory body has highlighted cases where small-cap funds, known for their high volatility and risk, have been sold to senior and super senior investors, potentially exposing them to undue risk.

“We have received a query from SEBI about transactions where retired investors have invested in small cap funds,” a senior official at a mutual fund house told CNBC-TV18.

He further explained that although most of these transactions are facilitated through distributors, SEBI expects the fund house to monitor transactions and ensure a check on risk mismatch.

Additionally, SEBI has questioned investments in schemes with lock-in periods, including solution-oriented funds, which are designed for long-term wealth creation but may not align with the investment objectives of certain investors.

Another CEO of a mutual fund, while stating that they haven’t directly received such inquiries, acknowledged the occurrence of such communications. ”

“It is SEBI’s way of tightening the noose. A lot of money is flowing into the industry, especially into high risk funds. In such times, many investors are lured by high returns. Essentially, SEBI is emphasizing that it’s the responsibility of the fund houses to exercise caution,” said the mutual fund CEO.

Industry sources have indicated that mutual fund houses have received targeted inquiries from SEBI regarding these transactions.

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

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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

 Daily Newsletter

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

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Should Elon Musk be able to buy Twitter?

 5 Minutes Read

TRUST MF’s first equity scheme ‘Flexi Cap Fund’ to launch in April: Should you consider investing?

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

 Listen to the Article (6 Minutes)

Summary

The announcement of the TRUSTMF Flexi Cap Fund follows the recent addition of Aakash Manghani to the team, alongside Mihir Vora, who assumed the role of chief investment officer in October 2023.

TRUST Mutual Fund (MF) will launch its first equity fund in April 2024. Named TRUSTMF Flexi Cap Fund, the scheme will be open-ended and invest across large-cap, mid-cap, and small-cap stocks. The new fund offer (NFO) of the scheme will be open between April 5 to April 19, 2024.

Since its inception in February 2021, Trust Asset Management Company (AMC) has primarily focused on debt funds.

The announcement of the TRUSTMF Flexi Cap Fund follows the recent addition of Aakash Manghani to the team, alongside Mihir Vora, who assumed the role of chief investment officer in October 2023.

About the fund

Anchored by its investment objective to provide long-term growth in capital and income, TRUSTMF Flexi Cap Fund will manage investments in a diversified portfolio of equity and equity-related securities across the entire market capitalisation spectrum, along with debt and money market instruments.

Investors will be able to opt for either the Regular Plan or the Direct Plan, with options including Growth Option and Income Distribution cum Capital Withdrawal (IDCW) Option.

The scheme will impose no entry load, while an exit load of 1% will be applicable if redeemed or switched out within 180 days from the date of allotment, thereafter transitioning to nil.

Investment considerations

With the ability to invest across companies of varying market capitalisations, the fund will facilitate diversification, thus mitigating risk, the mutual fund house said.

Its flexi cap portfolio will offer flexibility to navigate effectively under different market cycles.

“The fund will be well-suited for various investor profiles, including new investors seeking exposure to different market caps through a single fund, core equity portfolio builders aiming to construct a well-rounded investment portfolio, and long-term investors seeking potential wealth creation adaptable to varying market conditions,” Trust Mutual Fund said.

However, investors should consider their risk tolerance level.

While the fund offers diversification to mitigate risk, equity investments inherently carry market risk.

Investors can consult a financial adviser to determine if the TRUSTMF Flexi Cap Fund will be suitable for their investment needs and risk appetite.

ALSO READ | Kotak’s Nilesh Shah explains why gilt funds may be a good option for long-term 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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Groww MF to revise exit load structure for Banking & Financial Services Fund: What this means for investors

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

 Listen to the Article (6 Minutes)

Summary

Launched earlier this year, the Groww Banking & Financial Services Fund – Direct Plan have Asset Under Management (AUM) of ₹32 crore as of February 29, 2024, according to Value Research.

Groww Mutual Fund has declared a modification in the exit load structure for its Groww Banking & Financial Services Fund, set to be effective from April 1, 2024. The alteration entails a transition from the current “Nil” exit load policy to “1% for redemption within 30 days.”

This means that investors who opt to withdraw their funds early will now have to bear this additional cost.

Launched earlier this year, the Groww Banking & Financial Services Fund – Direct Plan have Asset Under Management (AUM) of ₹32 crore as of February 29, 2024, according to Value Research.

As of March 27, 2024, the Net Asset Value (NAV) of the fund stands at ₹9.9406.

The fund has delivered a return of -0.59% since inception.

This decision by Groww Mutual Fund comes in the wake of similar adjustments made by other mutual fund houses.

Notably, Motilal Oswal Mutual Fund recently revised the exit load structure for its mid- and small-cap funds, with the exit load for both Motilal Oswal Midcap Fund and Motilal Oswal Small Cap Fund shifted to 1% for redemptions within one year from the date of allotment.

Similarly, Nippon India Mutual Fund has also announced modifications to the exit load structure for its Nippon India Small Cap Fund, effective from March 22, 2024.

This adjustment follows recent stress test findings and industry trends, prompting the fund to transition from the previous exit load policy of “1% for redemption within 30 days” to a revised structure of “1% for redemption within 1 year.”

Mutual fund houses retain the option to modify exit load structures as per industry dynamics and regulatory guidelines.

While reasons for Groww Mutual Fund’s decision were not stated, such alterations commonly align with optimising fund liquidity, managing investor behavior, and aligning with prevailing market conditions and regulatory requirements.

Additionally, the move may aim to deter short-term trading activities and encourage a more long-term investment horizon among 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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Are you a Crypto Head? It’s time to prove it!
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?

 5 Minutes Read

Kotak’s Nilesh Shah explains why gilt funds may be a good option for long term investors

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

 Listen to the Article (6 Minutes)

Summary

Nilesh Shah, Managing Director at Kotak Mahindra AMC and Abhishek Bisen, Head, Fixed Income at Kotak Mahindra AMC also discussed the value of gilt funds for retail investors.

With Kotak Gilt Fund recently marking its 25th anniversary, delivering compound annual growth rate (CAGR) of 8.99%, Nilesh Shah, Managing Director at Kotak Mahindra AMC and Abhishek Bisen, Head, Fixed Income at Kotak Mahindra AMC discussed the value of gilt funds for retail investors, including their benefits and risks, on CNBC-TV18.

Shah pointed out the current inversion in fixed deposit curves, making longer-term investments more attractive due to higher yields in government securities.

“In the government securities, the yield curve is still positively sloping. You get more for 30 years and 10 years, than one year. We expect interest rates to come down. So anyone investing for the longest possible duration should do well, and gilt fund provides that opportunity,” Shah said.

Read Here | PGIM India MF launches Retirement Fund with 5-year lock-in period: Should you invest?

A positively sloping yield curve, where long-term bonds yield more than short-term ones, suggests expectations of future economic growth and inflation. For long-term investors, this allows locking in higher returns, benefiting if interest rates decrease over time.

Bisen shed light on the essential factors investors should consider before diving into gilt funds.

He stressed on the concept of mark-to-market risk, reassuring investors that despite volatility, the capital invested in gilt funds remains secure over the long term, thanks to the backing of government securities.

Bisen advised investors to align their investment horizon with the long-term nature of gilt funds, emphasising their role in retirement planning and asset allocation.

As the economic landscape evolves, with expectations of declining interest rates, locking into gilt funds for a reasonable period may provide investors with stable cash flows and long-term annuities.

Bisen suggested that considering the current positive slope of yield curves, now might be an opportune time for investors to capitalise on gilt funds for sustained returns.

Watch this video for more. 

Also Read | ICICI Prudential MF announces fundamental changes to Commodities Fund: Should investors worry?

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
10 Questions · 5 Minutes
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?