News That Matters

Tag: Mutual

Rs 4,500 crore mutual fund money at stake in Voda Idea; Templeton markdown hits 6 schemes

Rs 4,500 crore mutual fund money at stake in Voda Idea; Templeton markdown hits 6 schemes

Finance
Mutual funds having exposure to Vodafone Idea’s corporate papers and shares are staring at possible losses as an adverse judgment from the Supreme Court threatens to down the curtains on the business. The telco’s survival will now depend on its ability to garner funds to pay the statutory dues and repay what it had borrowed from the market. The government has estimated Vodafone Idea’s dues at over Rs 53,000 crore, including over Rs 28,000 crore in licence fee, interest and penalties and the rest on spectrum usage charges. Besides, the company’s total debt stood at Rs 1.15 lakh crore at the end of FY2019, shows available data. Mutual fund investors have already taken the first hit from this, after Franklin Templeton India marked down its Vodafone Idea debt exposure to zero as a pre-emptive
Mutual funds add Rs 3.15 lakh crore to asset base in 2019

Mutual funds add Rs 3.15 lakh crore to asset base in 2019

Finance
Mutual funds have added a whopping Rs 3.15 lakh crore to their asset base in 2019 on the back of robust inflows in debt schemes and measures taken by regulator Sebi for boosting investor confidence. The asset under management (AUM) of the industry rose by over 13 per cent (Rs 3.15 lakh crore) to Rs 26.77 lakh crore at the end of last month, up from Rs 23.62 lakh crore at the end of December 2018, as per the latest data available with the Association of Mutual Funds in India (Amfi). The AUM growth seen by the 44-member mutual fund industry in 2019 is significantly higher than 7.5% witnessed in 2018. However, the growth was much more higher at 32% in 2017, when the asset base expanded by over Rs 5.4 lakh crore. Industry experts said the double-digit growth is a positive sign given the negati...
Most investors make less returns than their schemes: Axis Mutual Fund report

Most investors make less returns than their schemes: Axis Mutual Fund report

Finance
Most mutual fund investors make lower returns than their mutual fund schemes due to their bad habit of frequently getting in and out of schemes, shows an analysis of Axis Mutual Fund. ‘Analysis of Indian investor behaviour and its impact on performance’ by Axis Mutual Fund looked at the performances across different category of funds, including equity, hybrid and debt funds in the short and the long term. The findings of the report conclude “investor flows are not stable but instead tend to follow market performance and as a result their realised returns are much worse than what they would have achieved by using either simple buy and hold or systematic investment strategies.” The report further adds that the effect is persistent across different time periods and shows that there has been l
ABSL Mutual Fund launches Aditya Birla Sun Life PSU Equity Fund

ABSL Mutual Fund launches Aditya Birla Sun Life PSU Equity Fund

Finance
Aditya Birla Sun Life Mutual Fund has launched the Aditya Birla Sun Life PSU Equity Fund, an open-ended equity scheme that will follow the PSU theme. According to a press release, the new scheme will focus on investing predominantly in Public Sector Undertakings (PSUs) or companies where the government is a majority shareholder with at least 51% shareholding. The new fund offer is open for subscription. It will close for subscription on December 23. The minimum application amount required is Rs 500 and in multiples of Re 1 thereafter, during the New Fund Offer period. The fund house said they believe that the PSUs which dominate many key sectors of the economy would grow in the coming time, especially in industries where setting up a new business unit requires huge capital, regulatory cl...
Mutual funds unlikely to get priority in DHFL refund

Mutual funds unlikely to get priority in DHFL refund

Finance
NEW DELHI: Even as mutual funds have been impatient regarding their dues from crisis-hit DHFL, which will soon go the insolvency way, legal experts say that it is unlikely that the funds would be the first in the list of creditors to get back their dues. They are also of the view that the fund houses would have to take a haircut, much against the their wish of incurring any such paring down of their refunds. Mutual fund houses want the Wadhawans, the promoters of Dewan Housing Finance Corp Ltd (DHFL), to arrange funds and pay back their dues and are likely to raise the issue in the committee formed by the Reserve Bank of India (RBI) to administer DHFL. "I don't think it is possible legally. Any resolution has to be comprehensive, it cannot be that one party gets the money out of the system...