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
Axis MF has maintained that it started a suo moto investigation in February 2022.
Fixed income funds or debt funds are typically used to reduce volatility in your portfolio. That doesn’t mean that your returns are guaranteed. There’s a big difference
Nippon India ETF Nifty BeES is an excellent choice for those who wish to avoid fund managers’ risk and invest in equity markets at a low cost. The fund is a part of MC30, Moneycontrol’s curated basket of mutual fund schemes you can invest in
The cases pertain to an inspection carried out on inter-scheme transfer for the period August 2018 to February 2019. Sebi fined the AMC Rs 25 lakh, CEO Ajit Menon Rs 5 lakh, and three fund managers for Rs 2 lakh each
Cryptocurrency transfers, freebies to social media influencers, I-T returns, mutual fund investments… there’s a lot happening in July. Here are the operational and regulatory changes you need to watch out for.
Fund houses not sponsored by banks depended on a mix of national distributors, banks and brokers
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All those SIPs will stop where your broker used to transfer funds from your broking account balance to the mutual fund house. You have to sign up for fresh NACH mandates.
More fund houses could also be forced to shut their schemes once again as these new limits are not expected to be substantial
Dynamic Asset Allocation or Balanced Advantage Funds are supposed to be winners when markets correct. Till 21 June 2022, the average return from a basket of 14 BAFs, is minus 6.3 percent YTD. Though negative, it is better than negative 11.3 percent of Nifty YTD.
The fund manager of quant based scheme identifies stocks using the computer-based algorithm that utilises various macro, fundamental and technical factors including volume, volatility, liquidity, value, momentum and alpha. There are seven quant based equity MF schemes available in India which are following different in-house models to build their portfolio
A scheme’s CAGR return does not capture its volatility. It’s the correct stat to judge a scheme, but not the only tool.
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Factors such as rising inflation, weakness of Rupee, rising interest rates and ongoing Russia-Ukraine conflict have impacted different sectors and different segments of the stock markets.
In its reply to Moneycontrol, Axis AMC has rubbished Joshi's allegations and stands by its decision to sack him. Any compensation or damages payable to him is out of question, says the fund house. The investigations are still underway into the alleged case of front-running.
Only select fund houses have opened their doors of international funds. And they may shut these if they breach their February 1, 2022 limits.
Nifty Next50 consists of stocks ranked between the 50th and 100th most liquid stocks on the NSE. Last month, active fund managers added stocks like Bandhan Bank, SBI Cards and Havvels’s from this list.
SEBI had banned mutual fund from launching new schemes till the new systems pertaining to pool accounts were put in place. The deadline for the new system implementation is July 1. And fund houses are getting ready to launch new schemes
Mutual funds that have sold stocks of overseas-listed companies to meet investor redemptions will be able to reinvest in overseas-listed stocks. Edelweiss MF, Nippon India MF, ICICI MF announce re-opening of funds, Mirae MF reopens with restrictions. PPFAS MF says it can’t reinvest in overseas-listed stocks as it had not sold any stocks since February 1, Motilal Oswal MF will continue with suspension of fresh investor flows.