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Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why

Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why

Finance
NEW DELHI: And you thought midcaps and smallcaps have been under pressure over the past three months because of the Sebi reclassification, requiring mutual funds to rejig their portfolios? Mutual fund houses across the board exited several midcap and smallcap stocks over the past three months. As such, while the largecap equity indices have shown signs of stabilising in recent weeks, midcaps and smallcaps continued to be in turmoil. In fact, these stocks continued to bear the brunt of the selloff in market. Data showed BSE midcap and smallcap indices were up 50-55 per cent in last three years, but are down 10-12 per cent year-to-date. BSE smallcap and midcap indices fell 6 per cent each in May. Some analysts say there has been a structural shift among institutional and individual investors...
Everything you need to know about target-date funds

Everything you need to know about target-date funds

Finance
When considering target-date funds, it's important to be aware of the benefits and drawbacks — as well as whether you are the kind of person who should be investing in them. While some people love these so-called set-it-and-forget-it funds, others dislike them because of the completely hands-off approach to investing they offer. A variety of factors contribute to determining if you should invest in target-date funds, but it is most important to first understand what a target-date fund is and how it works. Target-date funds are also known as life-cycle funds. They're often mutual funds that hold a mi...
Flow of funds into alternatives is drying up

Flow of funds into alternatives is drying up

Finance
With volatility returning to the stock and bond markets and valuations of almost all financial assets very high, alternative investments and alternative investing strategies should be popular. They're not."There is not as much interest in the alternatives space as one might expect, given the volatility in markets," said Tayfun Icten, a senior analyst at research firm Morningstar covering alternative investing strategies. "We have not seen a healthy comeback in alternatives."The financial crisis, when virtually all financial assets except Treasury bonds fell dramatically, gave life to the so-called liquid alt funds industry. The funds invest in a wide variety of alternative assets and hedge fund-like strategies intended to not correlate with the returns on stocks and bonds.With such investm...
Funds platform AJ Bell plots London float

Funds platform AJ Bell plots London float

Business
One of Britain's biggest online investment platforms is drawing up plans for a London listing that will crystallise a huge fortune for the executive who launched it nearly 25 years ago.Sky News has learnt that AJ Bell, which oversees assets worth nearly £40bn, held a beauty parade of investment bankers in the last few weeks to prepare for an initial public offering (IPO).AJ Bell, which is named after its founder and ‎chief executive, Andy Bell, is unlikely to go public until the final quarter of this year at the earliest, according to insiders.When it does so, it will turn Mr Bell into one of the stockbroking sector's wealthiest ‎entrepreneurs, as well as yielding windfalls for some of the City's leading fund managers.Mr Bell owns 28% of the company, which is expected to be worth several h
Ailing Carillion races to find emergency funds

Ailing Carillion races to find emergency funds

Business
Carillion, the troubled construction services group which is embedded in the HS2 high-speed rail link and other critical Government infrastructure projects, is racing to secure new funding within weeks to avoid collapse.Sky News has learnt that Carillion, which has been sliding deeper into financial difficulty for months‎, is due to present a revised business plan to its syndicate of lenders in the coming days.The plan, which has been drawn up by the company and its advisers over recent weeks, is said to have exposed‎ a funding gap running to hundreds of millions of pounds.Carillion, which employs 19,500 people in Britain, has come up with a rescue plan which would involve handing back some loss-making contracts, revising the terms of others and potentially accepting financial support from