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Mutual fund investors are not cashing out

Mutual fund investors are not cashing out

Finance
MUMBAI: A section of the retail investors in India is showing signs of maturity. Despite a sharp slide in the leading indices, several investors are not rushing to redeem their investments from equity mutual funds. This is a clear departure from earlier habits when retail investors hurried to redeem when markets showed a sharp southward movement. In fact, some are considering investing more since prices of a large number of good quality stocks are down, fund managers and financial planners said. In September, there were net inflows of about Rs 8,000 crore in equity funds, of which about Rs 7,000 crore was through the systematic investment plan (SIP) route and the balance as the lump sum investments, said A Balasubramanian, chairman, AMFI, the mutual fund industry trade body. MF distributor...
HDFC Mutual Fund gets Sebi go-ahead for IPO

HDFC Mutual Fund gets Sebi go-ahead for IPO

Finance
New Delhi, Jun 28 () HDFC Asset Management Company, the country's largest mutual fund firm, has received Sebi's go-ahead to float an initial public offer. The company had filed draft papers with Securities and Exchange Board of India (Sebi) in March and received its "observations" on June 22, as per the latest update with the markets watchdog. Sebi's observations are necessary for any company to launch public issues like rights issue, initial public offer (IPO) and follow-on public offer (FPO). HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments. Going by the draft papers, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 cro...
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...
Franklin Templeton Mutual Fund makes changes to 24 schemes

Franklin Templeton Mutual Fund makes changes to 24 schemes

Finance
Franklin Templeton Mutual Fund is making some changes to 24 of their existing schemes and merging its two schemes (Franklin India Government Securities Fund (FIGSF) - composite and PF Plan into FIGSF – Long Term Plan). The changes will be effective from June 4. The re-categorisation and merger of schemes are in line with Sebi’s new rules on categorisation of mutual funds. “If the investors do not wish to continue the systematic transactions under surviving plan (FIGSF – Long Term Plan) post-merger, the investors are required to intimate Franklin Templeton Mutual Fund in writing their unwillingness to continue the said facilities latest by 3 pm on June 1,” said a communication sent by the fund house to its investors. Apart from the merging schemes, the fund house also made some minor change
Mutual Fund folios surpasses 6 crore mark at August-end on high retail push

Mutual Fund folios surpasses 6 crore mark at August-end on high retail push

Finance
Showing a growing interest for mutualfunds among investors, the number of folios has grown by 2.4 per cent to cross 6 crore at the end of August, according to a report by ICRA. The total folio count at the end of August stood at 6.08 crore, 2.4 per cent higher compared to July. The growth was primarily on the back of 10.9 lakh new folios added to the equity category (including equity-linked saving schemes) and another 2.36 lakh new folios to the balanced category, the report noted. Besides, investor awareness initiatives by Asset Management Companies (AMC) and regulatory bodies are helping to enhance the financial awareness and maturity of investors, which in turn is driving this growth, it added. Folios are numbers designated to individual investor accounts, though one inv...