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mutual funds

Mutual funds are a vehicle for investing in stocks and bonds. It is not an alternative investment option to stocks and bonds, but rather it pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities. Buying a mutual fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses. Each mutual fund has a specific stated objective (what the fund will invest in) which is laid out in its prospectus – the legal document that contains information about the fund, its history, its officers and its performance. The mutual fund regulations require that the fund’s objectives are clearly spelt out in the prospectus. Some popular objectives include equity (stocks), debt (fixed income securities) and money markets. Mutual Funds in India are managed by an Asset Management Company (AMC) that may have several mutual fund schemes with similar or varied investment objectives. AMCs hire a professional money manager, who buys and sells securities in line with the fund's stated objective. All AMCs Regulated by Securities and Exchange Board of India (SEBI) and funds are governed by a Board of Directors that is supposed to represent the shareholders' interests, rather than the AMC’s. More

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  • Coming soon: Wider mandate for UPI to facilitate investments Dec 08, 2022 11:31 AM IST

    Coming soon: Wider mandate for UPI to facilitate investments

    Reserve Bank of India governor Shaktikanta Das said UPI will soon allow single-block-and-multiple debit functionality. Investments in the capital markets and mutual funds are set to be among the bigger beneficiaries

  • How should debt fund investors play the RBI rate hike? Dec 07, 2022 03:01 PM IST

    How should debt fund investors play the RBI rate hike?

    Experts suggest investing in short-term funds but also allocating a part of the capital to long-term gilt funds to take advantage of any positive surprises on the inflation front

  • RBI hikes interest rate as expected, and keeps the door open for further hikes Dec 07, 2022 02:02 PM IST

    RBI hikes interest rate as expected, and keeps the door open for further hikes

    Fixed rate loans, referred to as MCLR (marginal cost-based lending rate) move up with a lag. On the other side of the table, the move stands to benefit depositors.

  • DSP MF sees outperformance in small, midcaps; says largecap valuations not cheap Dec 06, 2022 06:12 PM IST

    DSP MF sees outperformance in small, midcaps; says largecap valuations not cheap

    Experts say small and midcap stocks outperform once they move out of deep phases of underperformance. The first off the block could be smallcaps, followed by midcaps.

  • Is the market on a weak footing despite touching new highs? Dec 06, 2022 09:34 AM IST

    Is the market on a weak footing despite touching new highs?

    The advance-decline data show that more stocks are falling while the benchmark index Nifty50 continues to rise

  • Higher tax deductions, more power to NPS: MF distributors’ wish list for Budget 2023 Dec 05, 2022 07:32 AM IST

    Higher tax deductions, more power to NPS: MF distributors’ wish list for Budget 2023

    Given that some state governments have been clamouring for a return to the old pension system, some mutual fund distributors say it’s time to give higher tax deduction limits for the National Pension Scheme. Section 80C tax deductions should be linked to inflation, other distributors say.

  • Why target maturity funds should be in your portfolio as interest rate increases slow Dec 05, 2022 07:28 AM IST

    Why target maturity funds should be in your portfolio as interest rate increases slow

    Even if interest rates go up further, the extent of the hikes will probably be slower. Target Maturity Funds are a good opportunity to invest in debt markets, with a reasonable predictability of returns.

  • SBI MF to distribute Rs 29.91 crore among FISTIP unitholders; payments to commence from Dec 7 Dec 03, 2022 09:17 PM IST

    SBI MF to distribute Rs 29.91 crore among FISTIP unitholders; payments to commence from Dec 7

    The amount will be paid by "extinguishing proportionate units at the NAV dated December 2, 2022".

  • IIFL launches India’s first passive tax-saving fund after SEBI’s nod Dec 02, 2022 04:28 PM IST

    IIFL launches India’s first passive tax-saving fund after SEBI’s nod

    It is the first passively managed tax-saving scheme to be launched after the capital market regulator allowed fund houses to launch such funds on May 23, 2022.

  • IDFC AMC's acquisition by Bandhan-led consortium gets SEBI nod Nov 30, 2022 09:16 PM IST

    IDFC AMC's acquisition by Bandhan-led consortium gets SEBI nod

    As per the terms of acquisition, BFHL will own approximately 60 percent stake in IDFC AMC, whereas, the other two members of consortium - GIC and ChrysCapital (CC) will own 20 percent each.

  • The most favourite small-cap stocks held by multi-cap MFs Nov 30, 2022 08:33 AM IST

    The most favourite small-cap stocks held by multi-cap MFs

    Multi-cap funds are bound by SEBI regulations to diversify across large-cap, mid-cap and small-cap stocks. Due to their illiquid nature, multi-cap funds have a large holding of small-cap stocks

  • Value funds do better than flexi-cap funds Nov 29, 2022 06:18 PM IST

    Value funds do better than flexi-cap funds

  • Sebi introduces credit rating wise investment limit for active debt funds Nov 29, 2022 04:58 PM IST

    Sebi introduces credit rating wise investment limit for active debt funds

    Earlier in May, Sebi had introduced credit risk based single issuer limits for debt ETFs/ Index Funds in order to effectively manage the risk associated with such investments

  • What is an InvIT and why should investors have it in their portfolios? Nov 29, 2022 12:41 PM IST

    What is an InvIT and why should investors have it in their portfolios?

    InvITs list on the stock exchanges to raise capital for the purchase of a portfolio of operational infrastructure assets that are already producing consistent cash flows. It is like a hybrid product―with equity and fixed-income characteristics

  • Despite markets at all-time highs, small-cap funds remain worthy Nov 29, 2022 08:02 AM IST

    Despite markets at all-time highs, small-cap funds remain worthy

    Although small-cap equity funds have given decent three-year returns, keep in mind their high volatility and a faster-than-normal rise in corpus sizes.

  • How to buy a Merc with your mutual fund SIP Nov 28, 2022 01:42 PM IST

    How to buy a Merc with your mutual fund SIP

    Luxury purchases, like say a Mercedes-Benz car, could be within reach if you diligently pursue a mutual fund systematic investment plan. If you get a head start, it's better.

  • Eyeing multibaggers amid record high? Here are most popular smallcaps of PMS managers Nov 28, 2022 07:51 AM IST

    Eyeing multibaggers amid record high? Here are most popular smallcaps of PMS managers

    The smallcap space is a favourite hunting ground for PMS fund managers as PMS investors typically like taking risks. Fund managers also get a leeway to hold concentrated portfolios and pick stocks that would otherwise not pass a mutual fund’s muster

  • Union Budget 2023: AMFI asks for no LTCG on units of equity funds if held for 3 years Nov 25, 2022 06:39 PM IST

    Union Budget 2023: AMFI asks for no LTCG on units of equity funds if held for 3 years

    One of the demands if for uniform taxation of capital gains from mutual funds and Unit-Linked Insurance Plans issued by insurance companies.

  • Mutual fund investors to get dividend payments within 7 days from record date Nov 25, 2022 05:58 PM IST

    Mutual fund investors to get dividend payments within 7 days from record date

    In case of redemption or repurchase of units, the fund houses are told to payout the proceeds within three working days.

  • Which funds got the most flows in 2022? Nov 25, 2022 05:31 PM IST

    Which funds got the most flows in 2022?

  • MF schemes investing in auto sector do well Nov 25, 2022 05:18 PM IST

    MF schemes investing in auto sector do well

  • Sensex scales record high: How to make the most of your investments Nov 25, 2022 03:35 PM IST

    Sensex scales record high: How to make the most of your investments

    Instead of buying or selling, the time may be right to review your portfolio in the context of your financial goals.

  • UTI AMC stake sale key for PNB’s growth, but bank needs more capital Nov 25, 2022 03:07 PM IST

    UTI AMC stake sale key for PNB’s growth, but bank needs more capital

    At November 25 market price, PNB’s 15 percent stake in the AMC will be worth about Rs 1,376 crore. Analysts point out that PNB has fallen short of peers when it comes to improvement in asset quality. For the July-September quarter of FY23, the bank reported a net profit of Rs 410 crore, which was lower than Street estimates.

  • Long-term wealth creation | SIPs in these 25-year-old mutual funds deliver up to 28 times Nov 24, 2022 09:22 AM IST

    Long-term wealth creation | SIPs in these 25-year-old mutual funds deliver up to 28 times

    Out of more than 235 equity diversified mutual fund schemes, 31 schemes are at least 25 years old. Some of these schemes have created significant wealth for investors who have been patient enough to stick around

  • How You Can Invest In More Than One Asset Class: Hybrid Funds | Explained | Invesco Nov 23, 2022 10:35 AM IST

    How You Can Invest In More Than One Asset Class: Hybrid Funds | Explained | Invesco

    Hybrid funds are those through which you can invest in more than one asset class. These asset classes can include equity, debt, commodities and arbitrage - though, of course, equity and debt are the most common. In this video, we explain the 6 types of hybrid funds and how each of them are useful - watch!