At present, debt securities that mature in less than 60 days are not marked to market. They are valued on an amortized basis, where daily interest is added to ensure the security's price goes up in a linear fashion.
Enough steps will be taken and safeguards will be put in by SEBI to ensure that side-pocketing facility is not misused.
With the latest inflow, the total infusion in mutual fund (MF) schemes reached about Rs 2.23 crore in the first eight months (April-November) of the current fiscal, latest data with the Association of Mutual Funds in India (Amfi) showed.
The market is expecting easier fiscal and pro-growth policy from the new RBI governor Shaktikanta Das, said UBS Securities' Tanvee Gupta Jain.
Kalpen Parekh of DSP MF advised investing in index funds provide better returns
The higher income levels of millennials have led to increased household savings which is making their way to the financial assets through mutual fund route.
'Side pocketing' is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. It prevents the distressed assets from damaging the returns generated from more liquid and better-performing assets.
SEBI has been scanning India's mutual funds' investments in the shadow banking sector since then.
Smart beta ETFs aim to bridge the gap between active and passive funds. But only smart investors are drawn to it, for now.
Although India's passive share is small, India is beginning to consider the benefits of passive investing, similar to the US market during the 1970s.
You should never make an ELSS allocation decision in isolation. It should be part of your overall financial plan.
Whenever stocks remain over-valued, there is a fair chance that gold makes a strong come back
As money is invested at regular intervals you can take the advantage of market fluctuations
He expects the equity market to remain volatile responding to incoming events and data
Investors must remember that ranking cannot be the sole performance indicators, especially due to the dynamic and unpredictable nature of the market.
Allowing mutual funds to segregate distressed debt securities in a scheme, a practice called side-pocketing is a clear moral hazard.
While selecting a scheme for investment or while deciding whether to continue with a current investment, a fund’s performance track record does play a critical role and returns usually take precedence over other important factors that are considered while investing
As per AMFI data, the average AUM has crossed 24 lakh crore in Q2FY19.
It is rightly said that if you don’t know where to go, then it doesn’t matter which path you take.
It is unlikely that CPSE ETFs will outperform Nifty in the long run because of the nature of public sector organisations where it invests.
There is no perfect way to pick the right mutual funds or next year’s winners. But here are some points worth considering when picking the same:
Yes Bank promoters prepaid Rs 200 crore each to Reliance Mutual Fund and Franklin Templeton Mutual Fund thereby reducing the total outstanding loans of Yes Bank promoters to the funds to Rs 1,400 crore, sources told the TV channel.
"The market seems to be pricing in stable and reform oriented government," Nilesh Shah said.
The fund has an impressive track record of outperforming the category averages and benchmark indices over the long term.
Over the last few years, investor accounts have increased following robust contribution from retail investors, especially from smaller towns and huge inflows in equity schemes