Mutual funds sahi hai? This is one of the jokes doing the rounds after the latest Amfi data showed that investors are selling their mutual fund investments in a big way. After riding high on the successful Amfi campaign of Mutual funds sahi hai for a little over three years, the industry is facing rough weather. According to mutual fund intermediaries, the trend is a culmination of a series of mishaps in the MF universe in the last two years along with the economic disruptions caused by the pandemic. Mutual fund advisors and financial planners believe that profit booking is not the only reason for the sharp fall in mutual fund net inflows in June. They say that investors have lost some amount of trust on mutual funds because of the recent events in the debt mutual fund universe. "Investors barely regained trust after the previous downgrades because schemes proved their worth. Many investors moved to AMCs which were promising. AMCs like Mirae and IDFC which have taken a concious call … [Read more...] about Are investors losing faith in mutual funds?
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I am pursuing my graduation and have invested a small amount in the equity market. What are the investment options if I have a surplus of Rs 1,500 per month?Ankur Choudhary Co-Founder and CIO, Goalwise replies: Two popular avenues where you can invest small amounts regularly are recurring deposits and mutual fund SIPs. You can choose a recurring deposit if you want fixed returns with negligible risk or you can opt for SIPs. Mutual funds give you the flexibility of investing in various asset classes like domestic equity, international equity, gold or debt with amounts as low as Rs 500 (or even Rs 100 in some cases). In fact, with Rs 1,500 you can construct a fully diversified SIP portfolio comprising domestic equity (HDFC Index Fund Sensex Plan), international equity (Motilal Oswal S&P 500 Fund), gold (ICICI Prudential Gold Savings Fund) and debt (Nippon Liquid Fund). There are no guaranteed returns when you invest in mutual funds and even your principal amount is at risk of loss. … [Read more...] about What is the best way for a graduating student to invest his monthly surplus savings?
MUMBAI: Investment trade body Asia-Pacific Real Estate Association (APREA) has approached the central bank to allow overseas funds to invest in debt securities issued by Real Estate Investment Trusts (REITs) and Infrastructure investment trusts (InvITs). Finance Minister Nirmala Sitharaman, in Union Budget 2019, had already allowed foreign portfolio investors (FPI) to invest in REITs and InvITs but the enabling mechanism has not yet been put in place. Capital markets regulator Sebi had also amended the regulations governing REITs and InvITs with effect from December 2017 to provide for issuance of listed debt securities by these trusts. However, due to lack of enabling provisions under the foreign exchange regulations by the Reserve Bank of India (RBI), these business trusts have not been able to source debt funding from FPIs so far The government and Sebi have been making efforts for the last few years to make REITs and InvITs a success story in India by creating a regulatory … [Read more...] about APREA seeks RBI nod for overseas funds debt investment in REITs, InvITs
MNC Funds or mutual fund schemes that invest mostly in multinational companies are gaining currency these days. MNCs are always bankable, especially in the current bleak economic scenario due to the pandemic. These companies were also in the news as they were doling out handsome dividends last one month. Reflecting the positive sentiment, the MNC mutual funds have been offering good returns. In the last three months, the MNC fund category has posed 16.22% returns. These schemes have given 2.23% in the last one year, 3.25% in three years and 4.69% in five years. The big question is: Do these factors make MNC funds a safe bet to tide over the current uncertain scenario? Mutual fund analysts believe that the dividends doled out by MNCs are a sign of good health of these companies. The dividends are reinvested by the mutual fund schemes. “The dividends will surely be re-invested and that will impact the NAV of the schemes. However, the spike is momentary. The dividends do not … [Read more...] about Are MNC funds a safe bet in the current scenario?
By Ragini Saxena, Ishika Mookerjee and Ronojoy Mazumdar Battered India bank stocks, the worst performers this year on the benchmark equity gauge, are being picked out by some funds that see them rebounding with the economy as the coronavirus-triggered lockdown is eased. “Cycles come and go and we continue to have a long-term view that India has tremendous growth ahead including in credit and banks we hold,” said Nuno Fernandes, who helps oversee $1.5 billion in emerging market assets at GW&K Investment Management LLC in New York. After a peak in January, shares in Indian lenders are now trading close to their lowest level since 2016 as the prospect of the first economic contraction in 40 years triggers concern that bad loans will surge. The central bank has cut borrowing costs to a 20-year low and the government pledged 21 trillion rupees ($277 billion) in stimulus to revive growth. Picking out banks with strict lending criteria prompted Fernandes and colleague Tom … [Read more...] about Funds buying battered India bank stocks see cyclical rebound