Investors pumped in a record Rs 1.3 lakh crore in equity mutual funds in 2017 on the back of low bank deposit rates and lacklustre performance of gold and real estate.
In 2017, the total asset base of all 42 active fund houses put together surged by an impressive 32 per cent, while it had risen by 24 per cent over the last five years.
Trading in gold ETF has been lukewarm in the previous four fiscals. It had witnessed an outflow of Rs 775 crore in 2016-17, Rs 903 crore in 2015-16, Rs 1,475 crore in 2014-15 and Rs 2,293 crore in 2013-14.
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Poor performance of a fund must set the investor thinking on whether to continue with the investment.
Last month, State Bank of India reduced it's interest rates by 50 basis points to 3.5 per cent for savings deposits of less than Rs one crore. Subsequently, several other public and private sector banks cut their savings deposits rates by 50 basis points.
"Smaller towns or B15 (beyond top 15 cities) cities accounted for 17.7 per cent of total AUM as of July, thanks to a 41.3 per cent surge to reach past Rs 3.60 trillion in July from Rs 2.55 trillion a year ago helping the industry AUM to grow over 30 per cent to Rs 19.97 trillion," Icra said quoting Amfi data.
According to the global financial services major, July was a historic month for Indian equities, with total equity inflows (equity plus equity-linked savings schemes plus equity component of balanced funds) into domestic mutual funds rising to an all-time high of Rs 18,200 crore or USD 2.8 billion.
Tata MF changes dividend frequency for Tata Short Term Bond Fund and Tata Regular Savings Equity Fund.
We do believe the Indian markets are currently overvalued especially in light of elusive earnings growth.
This also marks the sixth consecutive monthly rise in the mutual funds' exposure to bank stocks.
Interview with Sunil Singhania of Reliance Mutual Fund
India today has one of the highest real interest rates in the world. With CPI inflation at around 1.54 percent, and with 10-year benchmark gilt at around 6.46%, the real interest rate is too attractive to be ignored.
We have a target of 32,000 for Sensex by March 2018, which is flat compared to current level.
The shares have been bought from US-based hedge fund firm Eton Park Capital Management.
Morningstar believes ICICI Prudential Value Discovery Fund has the wherewithal to outperform its benchmark index over the long term.
Non-performing assets in the banking system should not shift to mutual funds by way of debt funds. The industry should be careful about that, Tyagi told an industry summit organised by MF lobby Amfi here this morning.
Paytm has applied for a licence to set up a money market mutual fund that invests in short-term funds.
Aptech rose 200 percent, followed by Mastek which rallied 93 percent, Datamatics up 89 percent, and TVS Electronics rose 87 percent in last one year.
In the two years, investor accounts went up following robust contribution from smaller towns.
Investors should tread cautiously, and buy on dips. Keep an eye on valuations.
While RERA occupied the mind space for most of the week, the markets too have been volatile enough to attract attention of investors.
If you would have invested just Rs 1000 per month or Rs 12000 per year for next 5 years which equals to an investment worth Rs 60,000 would have given you a return of up to Rs 1,40,000 today.
All you need to know to bring you up to speed with the world of personal finance this week.