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Tag: Mutual

Can mutual funds give multibagger returns like stocks?

Can mutual funds give multibagger returns like stocks?

Finance
Stocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev Thakkar, Chief Investment officer, PPFAS Mutual Fund, at the ET Wealth Investment Workshop, held at Delhi on February 15. Thakkar explained to the participants at the ninth edition of ETWIW that the idea of a mutual fund is to average out the risk by investing in a basket of securities. “Mutual funds are designed in a manner where they will give an average of total stocks held in the portfolio. If a mutual fund scheme has 25 stocks, the scheme’s return will neither be that of the worst stock, nor that of the best stock,” said Thakkar. This way, returns also get average out," he added. Then am I not better off investin...
ICICI Pru Mutual Fund launches ICICI Prudential Retirement Fund

ICICI Pru Mutual Fund launches ICICI Prudential Retirement Fund

Finance
ICICI Prudential Mutual Fund has launched ‘ICICI Prudential Retirement Fund’, an open ended retirement solution oriented scheme having a lock-in of five years or till retirement age (whichever is earlier). The NFO will open on February 07 and will close on February 21. “The best time to plan for your retirement is when you are young and working. Investing in a long-term mutual fund schemes enable in building a good retirement corpus. It also gives flexibility of Systematic Withdrawal Plan (SWP) to meet regular cash flow needs, post retirement,” says Nimesh Shah, MD & CEO, ICICI Prudential AMC. “Mutual fund is a long-term vehicle to plan for retirement. With costs of living, medical expenses and inflation rising with each passing year, it has become important to plan
LIC Mutual Fund launches Arbitrage Fund

LIC Mutual Fund launches Arbitrage Fund

Finance
LIC Mutual Fund launched LIC MF Arbitrage Fund, an open-ended scheme investing in arbitrage opportunities. The new fund offer (NFO) opens on January 4 and will close on January 18. The fund will be managed by Yogesh Patil (Equity) and Marzban Irani (Debt). Investors can make investment in the scheme in a lump sum. The investment objective of the scheme is to generate income by taking advantage of arbitrage opportunity that potentially exist between cash and derivative market and within the derivative segment along with investments in debt securities and money market instruments. The fund manager will use a disciplined quantitative analysis while accessing the arbitrage opportunities. The scheme will hold minimum of 65 per cent in equities and equities related instruments, derivatives incl...
Mutual funds managing more equity assets than insurers for the first time: ICRA report

Mutual funds managing more equity assets than insurers for the first time: ICRA report

Finance
For the first time, mutual funds have managed more money in equities than insurers in the month of October 2018, according to the data released by National Securities Depository Limited (NSDL). As per the data, equity assets managed by insurance companies came in at Rs 9.22 lakh crore as against Rs 9.32 lakh crore by mutual funds. Data released by Association of Mutual Funds in India (AMFI) showed that assets under management (AUM) of the mutual fund industry grew at 8.08% month-on-month (MoM) and 5.45% year-on-year (YoY) basis to Rs 24.03 lakh crore in November 2018. Equity AUM (including equity linked savings scheme), balanced funds and ETFs run by mutual funds stood at Rs 10.44 lakh crore in November 2018, up by 3.74% (MoM basis) and 8.92% (YoY basis). As per ICRA report, the mutual fun...
Are your debt mutual funds in danger because of IL&FS, NBFC crisis?

Are your debt mutual funds in danger because of IL&FS, NBFC crisis?

Finance
The IL&FS default saga and crisis in the NBFC space are casting a long shadow in the debt mutual fund space. The recent dip in NAV of two debt mutual fund schemes of Tata Mutual fund that held IL&FS papers further spooked investors. Tata Money Market Fund saw a 5.94 per cent dip in its NAV on October 29. Tata Short Term Fund also saw a 3.2 per cent fall in its NAV. The dip in NAV of Tata schemes was because the fund house wrote off the balance 50 per cent of its investment in the commercial paper of IL&FS after the infrastructure company failed to pay the maturity proceeds. The CP was to mature on October 29. “The IL&FS paper matured this month and we did not get the money, so we had to write it down to zero. Rs 25 crore CP had matured in Tata Short Term Bond Fund and we did...