Tag: Mutual Funds (MF)

Indraprastha Medical shares hit 52-week high on stake acquisition by Quant Small Cap Fund

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

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Shares of specialty tertiary care hospital Indraprastha Medical Corporation Ltd (IMCL) surged more than 7% to hit a fresh 52-week high on Tuesday after Quant Small Cap Fund acquired 5.5 lakh shares in the company for nearly ₹14 crore.

The purchase of 5,50,000 shares, representing a 0.59% shareholding, was made at an average price of ₹249.59 per share, according to bulk deal data disclosed to the stock exchanges on Monday.

The New Delhi-based super specialty tertiary care hospital is a collaboration between Apollo Hospitals and the Delhi Government. IMCL operates two hospital facilities, one located in New Delhi and the other in Noida, Uttar Pradesh.

Following the positive development, the stock surged as much as 7.8% to hit its 52-week high of ₹262.05 apiece on the BSE.

This has helped in driving the company’s market capitalisation to more than ₹2,370 crore.

As of March 2024, together, the promoters own 51% of the company’s stake. The Government of NCT of Delhi holds 26%, and the Apollo Hospitals Group owns 25%. However, the government of NCT of Delhi has not yet dematerialised its shareholding.

Earlier this month, HDFC Bank divested a substantial portion of its shares in Indraprastha Medical Corporation Ltd (IMCL).

According to a regulatory disclosure on April 4, the bank confirmed the sale of a 3.03% equity stake in IMCL, amounting to ₹55.46 crore. This divestment took place through several transactions on the National Stock Exchange (NSE) between February 29 and April 4, 2024.

Throughout this period, HDFC Bank offloaded a total of 2,781,897 shares of IMCL, resulting in a decrease in its ownership stake in the company from 5.48% to 2.45%.

Shares of IMCL were trading 5.26% higher at ₹258.2 apiece on the BSE at 12:14 pm.

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 funds increase stake in PSUs like REC in March; Here’s what else they bought and sold

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

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India’s mutual funds bought fresh stakes in state-run Rural Electrification Corporation Ltd. (REC) in March, according to a note from Nuvama Alternative & Quantitative Research.

Around 35 fund houses held an 8.32% stake in REC as of the December quarter shareholding pattern on BSE. The REC stock was the best performer on the Nifty PSE index in 2023, gaining as much as 2023.

According to Nuvama, mutual fund houses increased their stakes in large-cap names like Reliance Industries and TCS. The shift to private large-cap banks was also evident as they increased stakes in lenders like HDFC Bank and Kotak Mahindra Bank in March.

But while funds have increased their stake in one IT major, they have reduced their stake in another one and that is Infosys. Among other major large-cap names where funds have pared down stake, include India’s largest lender State Bank of India.

Among the top midcap additions in March, includes stocks like Indus Towers, which has seen a stellar run so far in 2024. The stock went up 15% in March in hopes of recovery of further dues from Vodafone Idea on completion of the latter’s fundraise. The stock is also up 13% so far in April. Another notable addition among the midcaps is Jubilant Foodworks, a beaten-down name, with the stock having declined over 20% so far this year.

Among the top smallcap additions include the likes of Aster DM Healthcare, which recently announced a special dividend of ₹118 per share, post the sale of its GCC business and an underperforming name like Aditya Birla Sun Life AMC, which is still trading below its IPO price.

Some other interesting observations from the mutual fund activity in March:

Tata Chemicals: The Tata Group stock saw a sharp surge recently in view of Tata Sons’ potential listing and then saw a sharp correction from the highs when news of the listing not taking place surfaced. Here, Quant MF and ICICI Prudential MF bought a fresh stake in March.

IREDA: The state-run renewable energy player saw three mutual funds – Nippon India MF, Kotak MF, and ICICI Prudential MF exit their positions in March. Notably, none of the three funds had a stake in excess of a percent based on the December shareholding.

Tata Technologies: Another Tata Group stock which saw a stellar listing last year has seen funds like Nippon India and ICICI Prudential exit their positions in March. The stock, though well above its IPO price, continues to trade below its listing price of ₹1,200.

Lancer Container Lines: A stock not spoken about often but has a ₹1,600 crore market capitalisation has seen Quant MF acquire a 2.5% stake in March, as evident from the company’s March shareholding pattern. The stock is down 14% this year but has risen 35% over the last 12 months.

Hindustan Unilever: In some FMCG reshuffle, Axis MF has exited the underperforming stock and has instead increased its stake in peer company Colgate-Palmolive in March.

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

SEBI to make nomination optional for joint Mutual Fund portfolios? Details here

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

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Securities and Exchange Board of India (SEBI) has made it optional to make joint investments in mutual fund schemes and has removed investments made through exchange-traded funds (ETFs) and index funds from the regulations on exposure to a single stock of own group firms.

The capital market regulator has permitted the management of commodities and overseas investments by a single fund manager in a consultation paper aimed at promoting ease of doing business among mutual funds. These recommendations have been made by the working group constituted by SEBI to promote the ease of doing business and reduce the compliance burden.

SEBI has asked investors and market participants to share their feedback on the same by March 15.

Investments made by mutual fund schemes in sponsor group firms are limited to a maximum of 25% of net assets, as per existing regulations. Furthermore, for a sectoral or theme index-based passive fund, no single stock may hold more than 35% of the weight in the underlying index.

The Working Group on Ease of Doing Business has recommended that the current 25% sponsor group exposure limit be relaxed, given that the exposure to a single issuer for some sectoral indices may exceed 25% and that passive funds are needed to replicate the corresponding underlying index.

SEBI has suggested that Exchange-Traded Funds with an equity focus and index funds that are based on widely tracked and non-bespoke indices be exempt from the requirement of having a 25% investment limit in sponsors’ group companies. This will allow investments to be made under the weightage of the underlying index’s constituents, preventing any inadvertent tracking errors, The Hindu BusinessLine reported.

The mandatory nomination date for investments in mutual fund schemes was recently extended by SEBI to June. If the nomination is not submitted by the deadline, the folio shall be frozen for debit.

For jointly held folios, on the other hand, the surviving holder shall take precedence over the nominee during unit transmission.

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

NFO launch | Mahindra Manulife Mutual Fund launches Business Cycle Fund, details here

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

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Mahindra Manulife Mutual Fund has launched ‘Mahindra Manulife Business Cycle Fund’, an open ended equity scheme designed around the business cycle-based investment theme catering to investors seeking long-term capital appreciation through equity and equity-related securities.

The  ‘New Fund Offer’ (NFO) is set to open on 21st August 2023, with the subscription window closing on 4th September 2023. The fund will subsequently reopen for continuous sale and repurchase from 13th September 2023.

The fund aims to generate capital appreciation by investing predominantly in equity and equity-related securities with a focus on investing in companies and sectors to participate in the business cycles through active portfolio allocation. It seeks to empower investors by aligning economic shifts and market dynamics, offering astute monitoring and discerning junctures for well-informed decisions using economic and market cycle parameters.

The investment approach of Mahindra Manulife Business Cycle Fund amalgamates top-down and bottom-up methodologies, providing a comprehensive strategy. This process shall commence with a thorough identification of the prevailing business cycle and sectoral trends, providing a robust framework for portfolio allocation.

“Through a judicious alignment of economic shifts and market dynamics, we provide investors with an opportunity to add a long-term tactical play to their core fund portfolios. This fund complements our existing product portfolio and is well suited to both one time as well as SIP investments,” said Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund.

During favorable business cycles, the fund will emphasize investments in high-quality companies, ensuring diversification across market capitalizations and exposure to diverse investment prospects. Additionally, the fund shall strategically focus on sectors that correspond with distinct business cycle stages. By integrating these methodologies, the Mahindra Manulife Business Cycle Fund endeavors to optimize returns while effectively managing risk through well-informed sector and stock selection decisions.

The NFO will will be managed by Krishna Sanghavi, Renjith Sivaram Radhakrishnan and Kush Sonigara (overseas investments).

“The fund strategically aims to integrate the economic cycle and market cycle  with a view to construct portfolio based on sectoral preferences depending upon stages of business cycles, in order to generate long-term capital appreciation. At Mahindra Manulife, we believe our new offering Mahindra Manulife Business Cycle Fund is tailored to seize opportunities across market capitalization in equity markets using a blend of top-down Business Cycle/Sector identification and bottom-up stock selection approach,” said Krishna Sanghavi, Chief Investment Officer – Equity, Mahindra Manulife Mutual Fund.

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

AMFI seeks exclusion of transaction costs, brokerage and STT from SEBI’s TER proposal

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

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Ahead of the Securities and Exchange Board of India (SEBI) board meeting that is likely to discuss the proposed total expense ratio (TER) changes, CNBC-TV18 has learnt from industry sources that the Association of Mutual Funds in India (AMFI) has written to SEBI raising pertinent questions over the inclusion of goods and services tax (GST), transaction costs, security transaction tax (STT) and brokerage in the total expense ratio.

AMFI has said that the industry is agreeable to add GST in the total expense ratio, even though as a principle, GST being a statutory levy should be charged over and above the TER. So AMFI has told SEBI that the tax can be made a part of the TER in such a way that the GST is added at all possible levels.

AMFI has further said that the TER slabs in the consultation paper may need further review to add the GST impact at various levels.

Further, the industry body has suggested that STT being a government levy should not be part of the TER.

In the letter, accessed by CNBC-TV18, AMFI has said that since STT, brokerage and transaction costs are levied based on value and quantum of a transaction, it won’t make sense to add these to the TER.

AMFI has said that if these charges are added to TER, this could deter fund managers in undertaking investment transactions as there could be a possible breach of the TER limits in high-churn portfolios.

Industry experts believe that fund houses will have to take a hit on their management fees to avoid the breach of TER limits.

Also Read: Sebi proposes standard format on trading preference for different exchanges

It is important to note that STT, brokerage and transaction costs are levied upfront based on the transaction value, whereas TER is applied on a daily basis, hence annualised.

In its consultation paper in May, SEBI had proposed bringing all the charges including GST and transaction cost under the ambit of TER. Sources have told CNBC-TV18 that SEBI will discuss the issues raised by AMFI in its board meeting tomorrow.

Also Read: Kotak Institutional Equities sees no major impact of TER cut on AUM growth of asset management companies

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

Secure your child’s future with children’s funds— here’s all you need to know

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

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Planning for your child’s future is a crucial aspect of responsible parenting. Whether it’s their education, marriage, or other important milestones, ensuring that you have the necessary financial resources in place is imperative. To assist parents in this endeavor, several investment options are available, including children’s funds offered by various Asset Management Companies (AMCs) in India.

Speaking to CNBC-TV18, Salonee Sanghvi, Founder of My Wealth Guide, highlighted the significance of children’s funds. Sanghvi described children’s fund as a separate category specifically designed to address the financial needs of children’s education or marriage. These funds are structured as open-ended mutual funds, but they typically have a longer lock-in period compared to normal mutual funds. This lock-in period ensures that the funds remain invested and accumulate returns, providing a stable and reliable financial base for your child’s future.

When considering the allocation of assets within your investment portfolio, Sanghvi suggested evaluating two crucial factors. The first factor is your risk-taking ability. It is essential to determine the level of risk you are comfortable with, as taking too much risk can result in sleepless nights, while taking too little risk may hinder your ability to meet your desired goals. Understanding your risk appetite will help you make informed investment decisions, Sanghvi said.

The second parameter to consider is the time to goal. Time plays a vital role in reducing the risk and volatility associated with equity investments. As your time horizon increases, your ability to take risks also improves. By aligning your time to the goal with your risk-taking ability, you can create an overall asset allocation strategy that suits your portfolio and your child’s financial requirements, Sanghvi said.

Also Read: Planning an early retirement? Here’s how you can do it

Moreover, investing in children’s funds also offers tax benefits for parents. According to Sanghvi, these funds can be considered under the 80C allocation as per the old tax regime. This means that the amount invested in children’s funds can be deducted from your taxable income, resulting in potential tax savings. Additionally, parents can claim an annual exemption of Rs 1,500 per child under Section 10/32 of the Income Tax Act if the interest income from the funds exceeds Rs 6,500 per annum.

Watch video for entire discussion.

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

SEBI’s proposal on total expense ratio will reduce inefficiencies and curtail malpractices in the system, says expert

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

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In a significant step towards enhancing transparency and fairness in the mutual fund industry, the Securities and Exchange Board of India (SEBI) recently released a consultation paper on total expense ratio (TER). The aim of this paper is to shed light on the costs charged to unit holders, bringing greater clarity to the expenses associated with mutual fund schemes.

Total expense ratio, commonly known as TER, encompasses the various fees and expenses imposed by asset management companies (AMCs) on unit holders. These charges, which were previously not always fully disclosed, have now come under scrutiny. SEBI’s initiative seeks to ensure that what is presented to investors aligns with the actual costs they bear.

Mohit Gang, the Chief Executive Officer at Moneyfront, commends SEBI’s move as a significant leap towards transparency. He emphasises that this step will accurately reflect mutual fund expenses and eliminate any discrepancies between what is shown to investors and what is actually charged. By closing this gap, investors can now have a more precise understanding of the expenses incurred.

Not only does SEBI’s initiative enhance transparency, but it also addresses inefficiencies in the distribution channel and seeks to eradicate prevalent malpractices, Gang said. By reducing such practices, SEBI aims to optimize the distribution process and promote fair practices within the sector.

According to Gang, One of the notable benefits of SEBI’s move is the potential for reduced costs for investors. With greater transparency, retail investors can expect enhanced returns over the long term. Additionally, the measure aims to minimise excessive churning of funds, which can erode investor returns. By consolidating various objectives into a single action, SEBI aims to combat malpractices and harness economies of scale, benefiting all stakeholders involved, Gang said.

Also Read: The mutual fund story: SEBI’s proposed regulatory overhaul more good than bad?

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

How to choose the right mutual fund for a given goal

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

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Mutual funds can be a good investment tool for both short and long-term financial goals, depending on the individual’s investment objective, risk profile, and investment horizon. There has been a growing awareness among Indians about the benefits of mutual funds as an investment option, and a significant number of investors have started investing in mutual funds to achieve their financial goals.

For short-term goals, debt mutual funds can be suitable as they offer relatively lower risk than equity mutual funds. For long-term goals, equity mutual funds are generally considered suitable as they have the potential to generate higher returns over an extended period, although they do carry a higher degree of risk. 

Mutual funds can be a good investment tool as they offer diversification, professional management, convenience, liquidity, cost-effectiveness, and flexibility. 

The choice of mutual funds for short, medium, and long-term goals may vary depending on the individual’s investment objectives, risk profile, and investment horizon. However, here are some general recommendations:

For short-term goals (less than three years), debt mutual funds are generally considered suitable as they offer relatively lower risk than equity mutual funds. Examples of debt mutual funds include liquid funds, ultra-short-term funds, and short-term funds. 

But we need to understand what these funds are all about. 

Liquid funds: Liquid funds invest in securities with short residual maturities, making them an ideal choice for short-term goals such as keeping idle money, emergency planning, and more. Since they primarily invest in low-maturity instruments, they come with a minimal duration risk.

Treasury bills, commercial paper, certificates of deposit, and other money market securities with a maturity of up to 91 days to name a few. 

Ultra-short-term funds: Ultra-short-duration mutual funds primarily invest in fixed-income instruments, with short-term maturities that are higher in comparison to liquid funds. These funds come with low-interest rate risks and aim to provide better returns than liquid funds.

Short-term funds: These funds are recognised for investing in short-duration fixed-income instruments, maintaining a portfolio with a Macaulay duration of one to three years. They can be a suitable option for individuals planning to save for a foreign vacation, park a pre-retirement corpus, or purchase consumer durables.

For medium-term goals (three to five years), balanced mutual funds or hybrid mutual funds can be considered as they invest in a mix of equity and debt instruments. Examples of balanced mutual funds include aggressive hybrid funds and conservative hybrid funds.

Aggressive hybrid funds: Aggressive conservative hybrid funds allocate 65-80 percent of total investments to both equity and debt instruments, which leads to equity taxation. These funds may be suitable for individuals who are willing to take moderate risks while aiming for the returns of equity and the stability of debt.

Conservative hybrid funds: The majority of the corpus in debt instruments is invested by this type of mutual fund, with a smaller proportion allocated to equities to earn capital gains. Typically, these funds invest 75-90 percent of the corpus in fixed-income securities and the rest in equities. Due to the high allocation of debt instruments, the risk in these schemes is lower than that of equity funds. Conservative investors who prioritise stability in debt and seek the benefits of upside potential in equities may find these funds ideal.

For long-term goals (more than five years), equity mutual funds are generally considered suitable as they have the potential to generate higher returns over an extended period, although they do carry a higher degree of risk. Examples of equity mutual funds include large-cap funds, mid-cap funds, and small-cap funds.

Large-cap funds: Large Cap Funds allocate a minimum of 80 percent of their total assets to equity and equity-related instruments of large-cap companies, specifically the top 100 companies based on market capitalisation. These funds are generally more stable compared to mid-cap or small-cap funds, providing investors with added assurance.

Mid-cap funds: Mid Cap Funds allocate a minimum of 65 percent of their total assets to equity and equity-related instruments of mid-cap companies. Although these funds come with a volatile nature, they may provide better returns than large-cap schemes.

Small Cap funds: Small Cap Funds allocate a minimum of 65 percent of their total assets to equity and equity-related instruments of small-cap companies. These funds are known for their high volatility but also have great potential for returns. If you are seeking highly volatile funds with the potential for high returns, consider small-cap funds.

In conclusion, aligning your mutual fund investments with your financial goals requires careful planning and execution. By identifying your financial goals, selecting the right mutual fund category, allocating your investments wisely, rebalancing your portfolio periodically, and monitoring your investments regularly, you can ensure that your mutual fund investments are aligned with your financial goals and help you achieve them.

Note: This is a partnered post

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

How to create a retirement corpus through mutual funds?

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

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Define your retirement goals: Start by figuring out how much you will need in retirement to live comfortably. Consider your healthcare expenses, inflation, and life expectancy or even to plan how to grow your fund in a systematic matter.

Choose the right mutual funds: Look for mutual funds that are geared toward retirement savings. Funds that invest in a diversified mix of stocks and bonds can be a good option.

There are several types of mutual funds that you can consider for retirement planning. Here are a few options:

Equity Mutual Funds: These mutual funds invest in stocks of publicly traded companies. They are typically more volatile than other types of mutual funds, but they can offer higher potential returns over the long term. If you start early, it has its own advantage. Early investors have a longer time horizon to invest, and they can afford to take more risk. Equity mutual funds, especially those that invest in small-cap and mid-cap stocks, can offer high potential returns over the long term. Additionally, a portion of their portfolio can be allocated to international and emerging markets funds to diversify their portfolio and capture growth opportunities.

Debt Mutual Funds: Debt mutual funds invest in fixed-income securities such as bonds, debentures, and government securities. These funds are considered less risky than equity funds and provide a steady source of income. Pre-retirees may want to focus more on income-generating investments and preservation of capital. Debt mutual funds, especially those that invest in high-quality bonds and provide regular income, can be a good option. Additionally, dividend-paying equity mutual funds and real estate funds can also be considered for generating income.

Balanced Mutual Funds: Balanced mutual funds invest in a mix of equities and debt instruments. They provide the benefits of both equity and debt funds and are considered less risky than pure equity funds. As investors approach their 40s and 50s, when you have less risk tolerance, they may want to start shifting their portfolio towards a more balanced allocation between equity and debt mutual funds. Balanced mutual funds and target-date mutual funds can be good options for this age group, providing a mix of equity and debt securities with an appropriate asset allocation for their retirement timeline.

It’s important to note that investing in mutual funds always carries some level of risk, so it’s important to do your research and consult with a financial advisor before making any investment decisions. Additionally, it’s recommended to have a diversified investment portfolio that includes a mix of different asset classes to help mitigate risk.

Determine your investment strategy: Decide how much you want to invest and how often you will contribute to your retirement account. Consider the time horizon until retirement and adjust your investment strategy accordingly.

Monitor your mutual fund performance: Regularly review your mutual fund performance and adjust your investment strategy as needed. Consider consulting with a financial advisor to help ensure your retirement plan stays on track.

Rebalance your portfolio: As you get closer to retirement, adjust your investment mix to reduce risk and volatility. Consider moving more of your investments into bonds or other fixed-income securities to help protect your savings.

Remember that investing always comes with risks, including the risk of losing money. So it’s important to be patient, stay disciplined, and seek professional advice when necessary.

Note: This is a partnered post

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