Tag: mutual funds

Kotak Mahindra MF lowers SIP amount to ₹28 for four funds — what this means for investors

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

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Kotak Mahindra Mutual Fund has announced some adjustments to its systematic investment plan (SIP) amounts for four of its flagship funds, effective from April 22, 2024.

The funds affected by this change include:

• Kotak Gold Fund.
• Kotak Multicap Fund.
• Kotak Multi Asset Allocation Fund.
• Kotak Nifty 200 Momentum 30 Index Fund.

Investors will witness a reduction in SIP amounts, with daily frequencies now as low as ₹28, down from the previous ₹100.

This means mutual fund investors can now invest a minimum of ₹28 per day via SIP in these schemes.

For investors, this adjustment in SIP amounts presents both opportunities and considerations.

On one hand, the lowered entry barrier may attract new investors who were previously deterred by higher SIP amounts.

With the reduced threshold, more individuals may find it feasible to initiate or increase their investment contributions, thereby fostering greater participation in the market.

Additionally, the daily frequency of SIPs enhances the flexibility for investors, allowing them to incrementally invest smaller amounts at regular intervals.

This approach aligns with the principle of rupee cost averaging, potentially mitigating the impact of market volatility and offering a disciplined investment strategy over the long term.

However, investors should also exercise caution and conduct thorough research before making any investment decisions.

While the lowered SIP amounts may seem appealing, it’s essential to evaluate the performance track record and underlying fundamentals of the respective funds.

Factors such as historical returns, fund objectives, portfolio composition, and market conditions should be carefully assessed to ensure alignment with individual investment goals and risk tolerance.

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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

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

Women’s participation in investment assets grows, but gender gap persists

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

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The participation of women in investment assets has been steadily increasing, according to data from the Association of Mutual Funds in India (AMFI). However, despite this growth, women’s involvement in financial assets remains relatively low compared to their male counterparts. Several key factors contribute to this phenomenon, including fear, lack of support, and financial literacy.

Ridhi Doongursee, co-founder of LXME, highlights the prevalent fear among women regarding investing in capital markets, often stemming from past negative experiences or perceptions of risk. Additionally, societal judgments and the absence of supportive environments further deter women from actively managing their finances. Moreover, time constraints due to familial responsibilities exacerbate the issue, leaving women with limited opportunities to educate themselves about financial matters.

Despite challenges, there is a promising trend of increasing female participation, particularly in inflation-beating assets, indicating a positive shift in the right direction.

Hena Mehta, Co-Founder & CEO of Basis, acknowledges the progress made in recent years, citing a significant increase in the number of women investing in mutual funds. “Just in the last three to four years since 2019, the number of women investing in mutual funds has increased between 58 to 60%. So we are making progress. Within the Basis community as well, about 50-55% of women started investing after joining the Basis platform because they finally got the knowledge they needed, trust gaps were filled, they got the confidence etc. So we do have a lot of work to do.

However, we are seeing data that is promising, that’s telling us that we’re headed in the right direction and more women are participating in inflation beating assets and growing their wealth for the long term,” Mehta stated in a discussion with CNBC-TV18.

The demographic breakdown reveals that a significant portion of women investors falls within the 25-44 age group, indicating a growing interest among younger generations. Additionally, most women prefer the regular plan route in mutual funds and tend to stay invested for longer periods, reflecting a cautious yet committed approach to investment.

However, Priya Sunder, co-founder and director of Peak Alpha Investments, brings attention to the persistent gender pay gap as a fundamental barrier to women’s financial empowerment. The disparity in earnings results in smaller investment sizes and delayed wealth accumulation, perpetuating a cycle of financial disadvantage for women. Addressing the gender pay gap and supporting women through career transitions are essential steps toward fostering equal opportunities in investment, she added.

The report was released as a part of a special industry initiative for International Women’s Day, led by Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and AMFI board members. The event celebrated women’s contributions to the investment industry, recognising fund managers, research analysts, and dealers for their achievements.

Watch the accompanying video for the entire discussion.

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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

Education costs on the rise: Where should you invest for securing your child’s future?

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

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Education costs have been skyrocketing in recent years. While general inflation hovers around 5-5.5%, the cost of education has reached around 11-12%. It is said that education expenses could potentially double every 6-7 years, putting a significant financial burden on families.

Moreover, for those considering studying abroad, it’s essential to factor in the impact of currency depreciation, which can further amplify the costs.

With the rupee depreciating at a rate of 4-5% annually against major currencies, the outflow for education expenses can increase substantially over time.

Given these daunting statistics, planning for your children’s education has become more critical than ever. But how do you navigate this financial challenge?

One common strategy is through mutual funds, offering a structured and potentially lucrative investment avenue.

Suresh Sadagopan, Founder of Ladder7 Financial Advisories, emphasises the importance of starting early when it comes to education planning.

He suggests initiating the process as soon as the child is born, acknowledging the uncertainty surrounding their future career path.

By starting small and gradually increasing investments over time, parents can build a substantial education corpus.

While there are dedicated children’s education plans available, Sadagopan advises that they might not always be the most efficient option.

These plans are tailored for individuals who lack expertise in portfolio management and asset allocation.

However, for those seeking more flexibility and control over their investments, mutual funds offer a viable alternative.

ALSO READ | Child’s education planning: Finsafe India’s Mrin Agarwal suggests these mutual fund schemes

Mutual funds provide a diverse range of investment options, from largecap to midcap funds, catering to varying risk appetites and investment horizons.

Sadagopan recommends constructing a well-balanced portfolio comprising mutual funds and other securities to achieve the desired growth while ensuring stability.

In addition to mutual funds, Sadagopan suggests considering real estate as part of the investment strategy, particularly for those with a long-term investment horizon of 10 years or more.

However, he advises a caution here, noting the lack of a consistent track record compared to mutual funds.

Real estate returns can vary significantly based on location and market conditions, necessitating careful consideration before allocating funds.

Watch this video for more.

Also Read | Here’s how to do financial planning for your child’s education

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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 investments soar 86% in FY24, insurance premium payments up 56%: Report

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

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Mutual fund investments surged 86% in FY24, while insurance payments grew 56%, a recent report from Razorpay revealed. Additionally, trading saw a 62% jump in value, according to the report.

Razorpay, an omnichannel payments and banking platform for businesses, analysed over a billion transactions processed on its platform between April 1, 2023, and March 31, 2024, to derive these insights.

According to the report, these findings suggest the emergence of a more mature India, one that actively seeks to balance present-day expenditures with future financial security.

The report also highlighted other notable trends of the last financial year.

Indians displayed a growing emphasis on holistic wellness, with spending on dieticians increasing by 125%, and a significant rise in transactions related to health coaching and preventive healthcare products.

Furthermore, the data revealed a continued enthusiasm for travel and entertainment, with increases in payments for air travel, travel accommodations, multiplex transactions, and ticket sales for cinematic experiences.

Education also emerged as a priority, with growth in e-learning, distance education, and payments to vocational schools, Razorpay said.

Razorpay also pointed out specific days that stood out in terms of consumer spending patterns, such as April Fool’s Day, Dhanteras, and significant sporting events like the World Cup 2023.

ALSO READ | Mutual fund assets surge 35% to ₹53.4 lakh crore in FY24, flexi cap category leads growth

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 assets surge 35% to ₹53.4 lakh crore in FY24, flexi cap category leads growth

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

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The mutual fund industry witnessed 35% surge in assets under management (AUM) in FY24, at ₹53.40 lakh crore. This represents a substantial increase from the ₹39.42 lakh crore recorded in March 2023, as reported by the Association of Mutual Funds in India (AMFI).

This surge is the highest since financial year 2021, AMFI said.

The flexi-cap category emerged as the largest fund category, closely followed by large-cap funds, with multi-cap funds experiencing the highest growth rate of 85%.

Alongside the increase in AUM, there has been a rise in the number of investors, with the number of folios reaching a record high of 17.78 crore, equating to an investor base of approximately 4.46 crore.

Notably, women constituted around 23% of investors, while men accounted for about 77% based on February 2024 data.

The growth trajectory has been primarily fuelled by individual investors, particularly in equity, hybrid, and solution-oriented schemes, which collectively accounted for nearly 58% of industry assets and 80% of folio count by March 2024.

This indicates a growing participation of households in the capital markets through mutual funds, AMFI said.

Within the equity-oriented categories, there has been a growth of 55% during FY24, reaching ₹23.50 lakh crore in assets, driven by inflows and mark-to-market gains.

Hybrid funds also marched ahead, surpassing the ₹7-lakh crore mark, with asset gains exceeding 50%.

This growth can be attributed to investors adopting an asset allocation approach and leveraging arbitrage opportunities in the market, AMFI stated.

Passive funds, particularly exchange-traded funds (ETFs), continued to benefit from institutional investment flows, with ETFs holding assets worth ₹6.64 lakh crore as of March 2024.

Meanwhile, debt funds saw moderate growth of around 7% during the financial year, reaching ₹12.62 lakh crore in assets, following contractions in the previous two financial years.

The adoption of systematic investment plans (SIPs) continued to rise, with monthly net inflows reaching approximately ₹19,300 crore in March 2024.

For financial year 2024, net inflows through SIPs stood at nearly ₹2 lakh crore.

ALSO READ | Stress test 2.0 results show improved liquidity positions: How quickly can small cap funds offload portfolios?

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

Stress test 2.0 results show improved liquidity positions: How quickly can small cap funds offload portfolios?

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

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The second batch of mutual fund stress-test results unveil a slight improvement in the overall liquidity positions of small-cap funds. According to a Moneycontrol report, it would take an average of 13.74 days as of March end, a slight improvement from 14.03 days in the previous month, to liquidate half of the portfolios of such schemes.

Here are the key findings on small-cap funds from mutual funds’ stress tests:

Quant Small Cap Fund

Quant Small Cap Fund, an offering from Quant Mutual Fund with an asset under management (AUM) of ₹17,349 crore, has shown improvements in its liquidity positions.

Ranked as the fifth largest fund in its category, Quant Small Cap Fund now projects a 20-day duration to liquidate 50% of its portfolio, down from 22 days in the initial stress test conducted in March.

Additionally, the recent stress test indicates a timeframe of 10 days for liquidating 25% of its portfolio, compared to 11 days previously.

Mahindra Manulife Small Cap Fund

Mahindra Manulife Small Cap Fund, managing an AUM of ₹3,557.06 crore, would take four days to liquidate half of its portfolio, with a further reduction to two days for 25% liquidation.

UTI Small Cap Fund

UTI Small Cap Fund, with an AUM of ₹3,501.59 crore, would require five days for 50% liquidation and three days for 25% liquidation.

Tata Small Cap Fund

Tata Small Cap Fund would now take 29 days to liquidate 50% of its portfolio.

It would take 15 days to liquidate 25% of its portfolio against 18 days earlier.

Canara Robeco Small Cap Fund

Canara Robeco Small Cap Fund improved the 50% liquidation period for half of its portfolio to eight days from 14 earlier.

And a 25% liquidation would take four days now against seven earlier.

SBI Small Cap Fund

SBI Small Cap Fund, with an AUM of ₹25,435 crore, saw improvements in its liquidity positions, with the number of days required to liquidate 50% of the portfolio decreasing from 60 to 58 days.

Addressing market concerns

The stress testing initiative, mandated by the Securities and Exchange Board of India (SEBI), emphasises on concerns over market froth, particularly within the small-cap segments.

By disclosing stress test results and related metrics, AMCs provide investors with transparency and insights into the resilience of their portfolios amidst market fluctuations.

However, it’s crucial to recognise that liquidity concerns, while important, should not be the sole determinant of investment decisions.

As highlighted by experts, investors should refrain from solely relying on stress test results. Instead, they should consider a holistic array of factors when assessing mutual 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

Stress test 2.0 results: India’s fifth biggest small-cap fund to take 20 days to liquidate 50% of portfolio

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

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The second round of mutual fund stress tests, mandated by the Securities Exchange Board of India (Sebi), has begun yielding results. According to the latest findings, Quant Small Cap Fund, managing an asset under management (AUM) of ₹17,349 crore, has enhanced its liquidity positions.

Quant Small Cap Fund is the fifth biggest fund in the category.

The fund now projects a 20-day duration to liquidate 50% of its portfolio, down from 22 days in the initial stress test conducted in March.

The recent stress test indicates that Quant Small Cap Fund would require only 10 days to liquidate 25% of its portfolio, compared to 11 days previously.

However, Quant Mid Cap Fund will now need seven days to liquidate half of its portfolio, up from six days in the previous test.

Mahindra Manulife Small Cap Fund (AUM of ₹3,557.06 crore) would take four days to sell half of the portfolio, while 25% liquidation will take two days.

UTI Small Cap Fund (AUM of ₹3,501.59 crore) would take five days to sell 50% of the portfolio and three days for 25% liquidation.

As per Sebi’s mandate, asset management companies (AMCs) are required to disclose the results of stress tests, along with metrics related to liquidity, volatility, valuation, and portfolio turnover, specifically for mid-cap and small-cap equity schemes.

These reports must be made public within 15 days of the conclusion of each month.

This emphasis on stress testing arises from Sebi’s concerns over market froth, particularly within the small-cap segments.

The Association of Mutual Funds in India (AMFI) data recently indicated a shift in mutual fund inflows in March 2024. In particular, the small-cap category experienced an outflow of ₹94 crore, marking the first outflow in FY24.

What should investors do?

While stress test results offer insights into the liquidity dynamics of mutual funds, investors should adopt a balanced approach to decision-making.

It’s crucial to recognise that liquidity concerns, while important, should not be the sole determinant of investment decisions.

As highlighted by experts during conversations with CNBC-TV18, investors should refrain from solely relying on stress test results.

Instead, investors should consider a holistic array of factors when assessing mutual funds.

Beyond liquidity, factors such as portfolio concentration and investment duration play pivotal roles in shaping investment outcomes.

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

UTI Mutual Fund renames two schemes: Here’s what investors should know

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

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In a bid to streamline investment options and align with regulatory directives, UTI Mutual Fund has announced the renaming of its schemes, effective April 15, 2024. The changes include the transformation of UTI Children’s Career Fund-Investment Plan to UTI Children’s Equity Fund, and UTI Children’s Career Fund-Savings Plan to UTI Children’s Hybrid Fund.

The decision follows Securities Exchange Board of India (SEBI) directives aimed at enhancing investor accessibility and comprehension within the mutual fund landscape.

Under the SEBI’s master circular, mutual fund scheme names are expected to reflect their respective categories, facilitating easier identification for investors.

It must be noted that renaming process will not alter any terms or conditions outlined in the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the schemes.

This means there will be no difference in the performance or structure of the schemes.

In essence, investors need not worry about the name changes.

The focus remains on maintaining continuity and transparency within the investment landscape, while also adhering to regulatory standards.

Therefore, the renaming of UTI Mutual Fund schemes should be viewed as a positive step towards enhancing clarity and accessibility for investors.

ALSO READ | Canara Robeco MF announces fund manager changes, benchmark revision on select schemes: What should investors do

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

Canara Robeco MF announces fund manager changes, benchmark revision on select schemes: What should investors do

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

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Canara Robeco Mutual Fund has announced two changes affecting its investment offerings. The first alteration involves the management restructuring of its Canara Robeco Conservative Hybrid Fund, while the second pertains to the revision of the benchmark for its Canara Robeco Manufacturing Fund.

Effective April 10, 2024, the Canara Robeco Conservative Hybrid Fund, previously managed by Avnish Jain and Shridatta Bhandwaldar, will now be helmed by Avnish Jain alongside Amit Kadam.

In addition to the managerial shift, Canara Robeco Mutual Fund has decided to recalibrate the benchmark for its Canara Robeco Manufacturing Fund.

As of April 15, 2024, the fund’s benchmark will transition from the “S&P BSE India Manufacturing Total Return Index” to the “Nifty India Manufacturing TRI.”

This adjustment aligns with a directive issued by the Securities and Exchange Board of India (SEBI), emphasising the need for mutual fund schemes to realign their benchmarks per the PRC matrix-based Tier-1 variant.

The SEBI directive, in consultation with the Association of Mutual Funds in India (AMFI), stresses on the importance of providing comprehensive guidelines to actively managed debt-oriented mutual fund schemes.

The aim is to ensure alignment with the evolving market dynamics and enhance transparency in benchmark selection, ultimately benefiting investors.

In light of these changes, investors can consider these actions:

Review portfolio allocation

Investors holding positions in the Canara Robeco Conservative Hybrid Fund can review their portfolio allocation in light of the management transition.

They should assess whether the revised management team aligns with the investment objectives and risk appetite.

Benchmark comparison

For investors with holdings in the Canara Robeco Manufacturing Fund, it’s crucial to compare the new benchmark, Nifty India Manufacturing TRI, with the previous benchmark, S&P BSE India Manufacturing Total Return Index.

They should understand how this change may impact fund performance and evaluate whether it aligns with your investment goals.

Consult financial advisors

Investors can seek guidance from qualified financial advisors or wealth managers to understand the implications of these changes on the investment strategy.

They can provide personalised recommendations based on your financial goals and risk tolerance.

Monitor performance

Investors should keep a close watch on the performance of the respective funds following the implementation of these changes.

They should regularly monitor fund performance against the benchmark and industry peers to make informed decisions about portfolio adjustments.

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

Debt funds see around ₹2 lakh crore outflows in March but experts say it’s a good time to invest for the long term

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

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Debt schemes witnessed a total outflow amounting to ₹1.98 lakh crore in March, the Association of Mutual Funds in India (AMFI) reported. This marks a stark contrast from the previous month, which saw inflows of ₹63,808.82 crore.

Among the various debt categories, liquid funds bore the brunt of the outflows, with nearly ₹1.57 lakh crore being withdrawn.

This figure, although higher compared to December 2022 and March 2023, reflects a routine quarterly pattern of liquidity management by corporates, according to Sanjay Agarwal, Senior Director at CareEdge Ratings.

Himanshu Srivastava, Associate Director at Morningstar Investment Research India Private Limited also attributed the outflow in March to the advance tax requirements that corporates need to fulfil, especially with it being both quarter-end and financial year-end.

Interestingly, almost all debt categories, except for long duration funds, banking & PSU funds, and gilt funds with a 10-year constant duration, saw outflows.

Investors particularly favoured long duration funds and gilt funds with 10-year constant duration, possibly due to their higher maturity profile.

“This trend suggests that investors are anticipating an interest rate cut later in the year, prompting them to reallocate their investments from shorter-duration profiles to longer-duration ones,” Srivastava said.

Opportune time to enter debt market

However, despite the overall outflows, experts suggest that the current market conditions present an opportune time for investors to enter the debt market.

The current landscape, marked by increased yields, suggests that investors can potentially benefit from entering the debt market at this juncture.

Government bonds, known for their stability and reliability, along with corporate bonds offering higher returns, and fixed deposit instruments providing secure investment avenues, collectively present a promising outlook for investors seeking to capitalise on the current market dynamics, experts say.

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