Tag: AMFI

Women’s Day 2019: There are only 23 women fund managers out of total 271

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

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It’s still a struggle for women in the corporate world. Women have a mere 8.5 percent representation in fund houses, according to Association of Mutual Funds in India (AMFI) and mutual fund websites.

The data collated by CNBC-TV18 suggests that only 12 out of the 40 fund houses that have a woman fund manager and there are only 23 women fund managers out of a total 271 fund managers, which gives us the disappointing number, 8.5 percent. The remaining 139, are men.

According to the data, IDBI AMC and SBI AMC have women representation ratio of over 30 percent. IDBI AMC, SBI AMC, Reliance Nippon Life AMC and ICICI Prudential AMC are the only fund houses that have more than one woman fund manager.

IDBI AMC and ICICI Prudential have two women fund managers. In IDBI AMC, there are a total of six fund managers and in ICICI Prudential, there are 22 fund managers in total. In SBI AMC, there are seven women fund managers out of the total 23 and in Reliance Nippon Life there are four women fund managers out of 21.

However, though the number is disappointing, there has been a steady rise in the number of women fund managers, compared to the earlier figures. Fund managers are given the responsibility to oversee and lead as the heads of equity or debt. Some of them are also primary or secondary managers, those who do the groundwork for managing funds.

A report by Bank of America Merrill Lynch said that the equality for women could boost global gross domestic product (GDP) by 31 percent or $28 trillion by 2025, the size of US and China GDP combined. With women driving the labour market, as well as the wealth management sector, it is expected that by 2020 they will hold $72 trillion of the world’s financial assets, double the 2010 level and accumulating assets 1.5 times faster than men, the report said.

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

Inflows into equity mutual funds remain subdued in January

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

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The inflow into equity mutual funds, including the Equity Linked Saving Scheme (ELSS), fell for the third straight month in January and remained largely subdued, according to the Association of Mutual Funds in India (AMFI) data. Equity mutual funds received Rs 6,158 crore in January as against the Rs 6,606 crore in December, a fall of around 6.7 percent, according to AMFI data.

Investments in the equity mutual funds declined largely due to the increasing risks in the global markets such as the persisting US-China trade war,  the upcoming general elections and the ongoing volatile trend in the financial markets.

Large inflows, instead, are seen going back into liquid funds. Liquid funds, which are used for investing money in short-term market instruments in essentially the money-market category, saw an inflow of Rs 58,637 crore last month, compared to around Rs 1.5 lakh crore in the month of December.

Balanced funds, often called hybrid funds and own both stocks and bonds, witnessed an outflow of Rs 952 crore in January, Amfi data showed, compared to an inflow of Rs 45 crore last month.

Equity Exchange Traded Funds (ETFs) are investments that combine stock investment and equity mutual funds. The inflow in this category has also seen a sharp decline of Rs 721 crore from the earlier Rs 10,878 crore, almost a 93 percent decline.

The stock market, going by the recent trend, has been very volatile due to geopolitical risks and macroeconomic changes in the Indian economy, among other reasons.

Taking into account all the above, the total of the inflow into income funds, that is mutual funds, ETFs or any other type of fund that generate an income stream for investors, has seen an overall inflow of Rs 2,080 crore in January as against the outflow of Rs 3,407 crore in the previous month.

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

Top 5 liquid schemes that saw highest AUM fall last month

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

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Liquid funds category or cash plans saw its assets under management falling by a whopping Rs 1.25 lakh crore in September over August, according to data on Value Research.

The industry also witnessed the highest outflows from the liquid fund category last month.

The AUM of liquid schemes stood at Rs 4.5 lakh crore in September, compared to Rs 5.7 lakh crore in August.

Going by the data on AMFI, outflows from liquid funds alone totalled Rs 2.11 lakh crore. Liquid funds or money market segment invests in cash assets such as treasury bills, certificates of deposit and commercial paper for a shorter horizon.

Fears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans or liquid funds were the worst hit.

Retail investors invest their short-term cash surplus in liquid funds to earn more than what they do from a savings account. Corporates use liquid funds to earn anything more than the zero interest in their current accounts.

Most fund managers said industry faced huge redemption pressure in September after liquidity in the banking system.

The liquidity crunch was largely attributed to the advance tax payments coupled with default in payments by IL&FS.

NS Venkatesh, Chief Executive Officer at AMFI said liquid fund flows will start coming back once the market stabilises.

According to AUM data from MF factsheet, the worst hit was Reliance Liquid Fund that witnessed a fall of 23.6 percent or Rs 12,127 in its AUM to Rs 39,358.64 crore in September. While AUM of UTI Liquid Cash Regular plan fell 26.5 percent to Rs 33,476 crore in September, a fall of Rs 12,061 over August.

With a fall of 20 percent or Rs 11,525, AUM of ICICI Prudential Liquid Fund stood at Rs 47,684 in September, while that of Tata Liquid Fund fell 40 percent or by Rs 9,824 to Rs 14,634 in September.

The least hit was Aditya Birla Sun Life Liquid Fund that saw its AUM falling 16 percent or Rs 9,478 fall in September to Rs 49,621.

Source: MoneyControl.com

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

Thinking of liquidating your mutual fund portfolio? Stay put

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

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Financial markets are in turmoil. Latest mutual fund sector data shows investors exiting liquid funds in hordes, while equity funds continue to see net growth.

Each and every investor is asking the same question: Should I liquidate my mutual fund portfolio and wait till the market stabilises?

Think of this as a movie. There is a beginning, a lot of song and dance, followed by drama and eventually culminating in a happy ending.

This is how markets are. What one is witnessing today is a temporary setback. Just because externalities such as oil prices, rupee fall, US treasury yields, etc, have come together to roil global markets, doesn’t mean fundamentals of Indian markets are weak. It is up to the retail investor to not panic and continue to focus on their long-term goal of wealth creation.

Thus far, the gush of monthly systematic investment plans (SIPs) has been holding their own against the relentless selling by the foreign investors.

The scenario and portfolios presently look gloomy, but it is now that the core aspects of goal-based financial planning and asset allocation which inculcates the virtues of patience and focus stand you in good stead.

Kalpesh Ashar is a certified financial planner and runs Fullcircle Financial Planners and Advisors.

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 inflows in July at a 3-year low

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

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They say liquidity is the mother’s milk for any bull market. When inflows are strong markets gain, when inflows slow down markets falter.

And it’s always the new or incremental rupee which makes all the difference. So the flow is what matters.

Let us take a look at flows into domestic equity mutual fund schemes.

Since 2015, the size and influence of the domestic mutual fund industry has grown exponentially driven by huge inflows into equity schemes. This in turn has driven stock markets higher to new records.

Things have been changing for the last few months and unfortunately, it’s a change for the worse. Data from Association of Mutual Funds of India (AMFI) for the month of July shows,

a) While aggregate net inflows into equity and equity linked savings schemes (ELSS) increased 28 percent in July over June, the Rs 10,585 crore July number is 10 percent down from the 2018 monthly average and a whopping 48 percent lower as compared to monthly record high. In fact in absolute terms, the inflows in July 2018 is back at what we saw in April 2015.

b) Balanced funds as a category continue to see severe contraction. July’s Rs 287 crore is a drop of 81 percent from June and it is down 97 percent as compared to the monthly high we saw in this category. Introduction of 10 percent tax on dividends from equity mutual funds has made balanced funds less attractive.

c) Equity exchange traded funds (ETFs) as a category saw outflows of Rs 3,982 crore. In the previous month, this category had seen an inflow of Rs 8,313 crore as the Bharat 22 ETF was launched in June. Bharat 22 ETF was clearly a one-off and we had warned in July that it would have been a mistake to extrapolate it.

Markets had gotten accustomed to large monthly inflows into equity mutual funds over the last three years.

Experts have tom-tommed how local mutual fund money would act as a buffer if foreign institutional investors (FII) got fidgety and wanted out of India. All this could come into question if inflows into mutual funds continues to slow.

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

AMCs paid Rs 8,500 crore as mutual fund commissions in last fiscal, 70% up from FY17

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

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Backed by a strong bull run, more and more investors have started investing in mutual funds (MF) through systematic investment plans, said Association of Mutual Funds in India (AMFI).

Asset management companies (AMCs) paid a whopping Rs 8,533 crore to about 980 top MF distributors through commission and expenses in 2017-18, 70 percent increase from Rs. 5,000 crore paid to around 732 distributors as commissions in the previous fiscal, according to the data released by AMFI.

The overall assets under management (AUM) of the mutual fund industry also increased by around 26 percent to Rs 23 lakh crore as of March 31, 2018, from Rs 18.3 lakh crore, a year ago, the data said.

Interestingly, the commissions earned by the mutual distributors grew faster than the overall mutual fund AUM, it said.

Surat-based NJ India Invest topped the chart with Rs 786.77 crore earned as commission during 2017-18, up 78 percent from a year before. It is followed by HDFC Bank which collected Rs 641.39 crore as commission.

The state lender, State Bank of India (SBI), came third by earning Rs 558 crore during 2017-18.

According to the data, SBI saw the highest growth in the commission income with a whopping 212 percent increase from Rs 179 crore during 2016-17.

Banks have always dominated the list of top MF distributors by commissions earned. They are the major sellers of mutual funds, most of them receive a significant amount of commission selling MF products of their subsidiary AMCs.

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

Equity mutual funds see steady inflows in May but growth worries linger

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

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Inflows into equity mutual fund schemes edged slightly lower last month as investors refrained from making big bets amidst political uncertainties back home and lingering global trade concerns.

According to data provided by Association of Mutual Funds in India (AMFI), net inflow into equity mutual fund schemes was at Rs 12,070 crore in May, down 2.7 percent from Rs 12,409 crore in April.

But the flows were significantly higher from March, when the equity mutual fund schemes garnered Rs 6,657 crore as investors shorted stocks possibly to avoid the long term capital gains tax effective from April 1.

Flows into equity mutual fund schemes declined 15 percent against the fiscal 2018 average of Rs 14,255 crore, data by AMFI showed.

Balanced funds saw inflows of Rs 2,666 crore in May compared to Rs 3,500 crore in April.

While inflows into equity funds have improved significantly since March, political developments back home coupled with global uncertainties continue to hamper risk appetite of overseas investors.

Foreign investors have reduced their stake in Indian equities following the political setback to the ruling Bharatiya Janata Party in Karnataka, rising crude oil prices, falling rupee against the dollar and disappointing results especially from public sector banks holdings.

The domestic worries also coincided with the turmoil in global financial markets amid the political chaos in Italy.

“Foreign investors have been pulling money out of India. Their overweight position on India has declined. They are still overweight but it has come down significantly. So you can tell that they have been persistently disappointed by India’s lack of growth and they are stepping aside,” Ridham Desai, head of India equity research and managing director at Morgan Stanley told CNBC-TV18 earlier this week.

So far this year, the rupee has weakened 4.86 percent, while foreign investors have bought $241.20 million and sold $4.48 billion in equity and debt markets, respectively.

While the Indian stock index gained nearly 7% in January and hit a lifetime high, it is down about 4% since then, tracking the rout in global equities as worries of a trade war between the US and China intensified.

The benchmark Sensex, which is up 4% for the year, is likely to see modest gains this year as higher oil prices and political uncertainty ahead of the general elections next year will restrain the market, according to market experts.

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