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
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
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
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.
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.
The advance-decline data show that more stocks are falling while the benchmark index Nifty50 continues to rise
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.
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.
The amount will be paid by "extinguishing proportionate units at the NAV dated December 2, 2022".
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.
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.
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
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
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
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.
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.
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
One of the demands if for uniform taxation of capital gains from mutual funds and Unit-Linked Insurance Plans issued by insurance companies.
In case of redemption or repurchase of units, the fund houses are told to payout the proceeds within three working days.
Instead of buying or selling, the time may be right to review your portfolio in the context of your financial goals.
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.
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
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!