There are 15 fund houses have invested in the stock of Nvidia either through their international schemes or domestic schemes. A restriction is in place that prevents many investors from participating in the rally.
The rise in passive investment is one of the reasons for the underperformance of AMC stocks
Mutual Funds AUM rose to a new high up by 3.68% over previous quarter. Long term debt funds AUM cross the Rs 1 trillion mark for the first time.
Dipen Sheth, Head-Institutional Research of HDFC Securities believes investors are moving away from equities to other assets like gold and real estate.
SEBI and RBI have recently allowed all categories of foreign investors to invest in equity oriented and debt oriented schemes launched by Indian Mutual Funds. This BMR alert details the new rules that allow for foreign investment in MFs.