Categories
Meme Mutual fund news feed

Mutual Funds Sahi Hai!

Categories
Dharam Lessons Financial Plannig Feed Meme Mutual fund news feed News Stories Timeless

Happy Easter

Dharmendra Satapathy and the NextLevel-Education Team

wishes its friends every prosperity and contentment on occasion of Easter. Let us learn how to Invest correctly. Let us gather knowledge that enables us Invest fruitfully in our great nation’s Economy. Let us find financial knowledge, for only knowledge ensures growth and happiness. 

Categories
Financial Plannig Feed Mutual fund news feed Stories Story Selling Timeless

Basket of Fruits

 

 

There was a man who would every day buy apples on his way back from office.

And all through the night he would talk about the lovely apples that he bought.

He believed those apples would make the family healthy and thereby make a huge difference in their lives.

His wife on the other hand bought vegetables and fruits and brought them home in a basket.

One evening when the husband was alone in the house his eyes caught a glimpse of the basket. He walked towards the basket and opened it.

What he saw inside became a life time education.

What he saw was a mix of greens and fruits looking fresh as a daisy.

And amongst the fruits were some luscious apples.

He realized that while he only bought apples everyday, his wife brought home a balanced diet which most importantly included luscious apples.

The man here is like a stock picker who is excited in buying some select stocks while the lady is like the mutual fund buyer.

While you may buy stocks based on your personal analysis and knowledge, when you buy a mutual fund scheme, what you get is a well researched group of stocks which most importantly may also include the stock that you had bought based on your personal analysis.

So instead of getting all excited about picking stocks, just relax and invest in a mutual fund.

In all likelihood, you are likely to be a lot more satisfied.

@dharamlessons


Categories
Financial Plannig Feed Mutual fund news feed News Stories

Mutual Funds in Commodities Soon.

SEBI likely to allow Mutual Funds to Trade in Commodities soon.

With an aim to deepen the nascent commodity market, SEBI is likely to give mutual funds the go-ahead to trade in commodity markets in a month, while the regulator is also in talks with the RBI to allow institutional investors like banks and FPIs to trade in the segment.

“Mutual funds’ participation in commodities derivatives would be the first one to happen among institutional investors,” Securities and Exchange Board of India (SEBI) Chairman U K Sinha today said, and hinted that the move could be implemented in a month.

Sinha, whose term as SEBI Chairman ends on March 1, was speaking to reporters on the sidelines of the regulator’s international conference on commodity derivatives.

On allowing participation of banks, alternative investment funds and foreign portfolio investors (FPIs) in commodities, he said SEBI is in active consultation with the Reserve Bank over the issue.

“Our argument with RBI has been, in any case bank’s have huge exposure to commodities through the lending programme. We have been asking them to disclose that. Let a beginning be made by the corporates in disclosing that and then you yourself discover there is a need to allow them to hedge also,” Sinha said.

“We are at an early stage of dialogue and part of the reason is how comfortable RBI is about the financial health of the bank, so they will also have this as a concern when they take that call,” he added.

SEBI, which started regulating commodity markets after the merger of Forward Markets Commission (FMC) with the regulator in September 2015, is working towards developing the commodities market by bringing in more products participants like FPIs, insurance and mutual funds.

Read the Main Article herehttp://www.newindianexpress.com/business/2017/feb/17/sebi-likely-to-allow-mutual-funds-to-trade-in-commodities-soon-1571646.html

Categories
Financial Plannig Feed Mutual fund news feed News

50 Schemes To Invest In

The latest and complete list of Mutual Fund Schemes!

Categories
Mutual fund news feed News

MFs See Vast Inflows

Mutual Funds see Rs 54,000 Crores inflow in January; Rs 3.67 Lac Crores in FY’17.

Investors have pumped in nearly Rs 54,000 crore into various mutual fund schemes in January, with liquid, income and equity funds attracting the most of the inflows.

Investors have pumped in nearly Rs 54,000 crore into various mutual fund schemes in January, with liquid, income and equity funds attracting the most of the inflows. With this, total inflows has reached Rs 3.67 lakh crore in the first ten months of the current fiscal (2016-17). In comparison, Rs 1.84 lakh crore was invested in various mutual fund products during April-January period of 2015-16.

“Investors may have seen the volatility of the current fiscal as a positive to average out costs. Retail investors also appear to have become savvier, using liquid schemes to either earn higher returns or to run Systematic Transfer Plan (STPs) into equity funds to average costs,” said Srikanth Meenakshi, the COO of Fundsindia.com, an investment portal for mutual funds.

“Apart from equity, inflows into debt funds have risen. Deposit rates have been falling, resulting in lower returns for investors. Falling rates help debt fund returns as yields instruments rally, which could have additionally helped draw in investors,” Srikanth added.

According to the data by the Association of Mutual Funds in India (Amfi), a net sum of Rs 53,817 crore has been invested in mutual funds in the month of January. The latest inflows have been mainly driven by contribution from liquid, income and equity funds.

Liquid or money market fund category attracted Rs 28,588 crore in January, while income funds saw net inflows of Rs 10,541 crore. Equity and equity-linked schemes saw inflows of around Rs 4,880 crore.

Liquid and money market funds invest mainly in money market instruments like commercial papers, treasury bills, term deposits and have a lower maturity period and do not have any lock-in period.

An income fund emphasises on current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Such funds usually hold a variety of government, municipal and corporate debt obligations, preferred stock and dividend-paying stocks.

Total assets under management (AUM) of all the active 43 active fund houses soared to a record Rs 17.37 lakh crore at the end of January this year, from Rs 16.46 lakh crore at December-end 2016.

Categories
Mutual fund news feed News

Equity Mutual Fund Flows Dip

Equity Mutual Fund Flows dip to 4-month low in January. Tax-Saving Equity-Linked Savings Schemes saw month-on-month Rise in Inflows at Rs. 1,166 Crores…

 Investor flows into equity mutual funds, minus withdrawals, fell to a four-month low at Rs. 4,880 Crores in January despite stock rally. Total inflows remained strong at Rs. 17,600 Crores, but redemptions or withdrawals of Rs. 12,720 Crores brought down the figure to Rs. 4,880 Crores.

If not for money coming through systematic investment plans (SIPs), the figure would have been even lower, players said.
“Redemptions in January were quite high compared to previous months. High net worth and seasoned investors booked profits just before the Budget as were rising. have been a saving grace,” said sales head of fund house.
On an overall basis, the mutual fund industry saw healthy net inflows of Rs. 53,817 Crores across categories. Money market and income schemes saw inflows of Rs. 39,000 Crores.
Tax-saving equity-linked savings schemes (ELSSes) saw month-on-month rise in inflows at Rs. 1,166 Crores.
Anjaneya Gautam, national head (mutual funds) at Bajaj Capital, says, “ELSS sales are at their peak in January to March.”
alone are contributing Rs. 4,000 Crores per month, which translates into nearly half a lakh crore per annum,” says A Balasubramanian, chief executive of Birla Sun Life Mutual Fund.
Meanwhile, the mutual fund industry’s assets under management (AUM) have grown by 41 per cent so far this financial year. Total AUM passed Rs. 17 Lacs in January.
Redemption’s Effect…

Read the Main Article here:

Categories
Mutual fund news feed Stories Timeless

Market Spinner

 

The great Indian leg spinner Chandrashekhar used to say that he himself didn’t know what kind of a delivery he would be bowling until his arm had gone up to actually bowl the ball.

So there was no way for the batsman to guess what ball was coming at him.

Perhaps, that is why Chandrashekhar was so successful.

Likewise even the stock market does not know what it will deliver tomorrow and what the day after.

Nobody knows what opportunities will be thrown up tomorrow and what would disappear a day later.

This makes the market interesting and a great place for wealth creation in the long term future.

Like B S Chandrasekhar the Market too is a legend in its own way.

Categories
Mutual fund news feed News Stories

Start. Don’t keep thinking

Nadal vs Federer went down to the wire.

The two of them reminded me of two large cap funds from two reputed. companies.

1) The question is how do you select.

2) The answer is don’t select.

3) Just pick one.

1) One or the other would remain ahead during various phases of the match but you can’t say which one. Likewise on the two large cap funds one or the other would stay ahead during the investment journey of 15 years.

2) Past performance means nothing. Else Federer would have won the second set and Rafa the third.

3) At the end in both cases there will be one winner but can you say which one? Never.

4) Even if you happen to be on the losing side, you still are with a champion and would have made nearly the same number of points. Likewise whichever fund you are in your returns would be similar even if not exactly the same.

5) In such cases both are champions and represent the ultimate standards of perseverance, ultimate standards of skills, ultimate standards of patience, ultimate standards spirit.

In case of the two large cap funds are both champions and represent a robust economy called India.

  1. 6) Hence no point thinking. Just start investing.
Categories
Mutual fund news feed News Stories

Reader’s Corner: Mutual Funds

Nimesh Shah, MD & CEO, ICICI Prudential Asset Management Company, answers your queries.

If interest rates are likely to come down soon, will returns from debt also fall? What kind of should I invest in?

We believe the major part of the interest rate easing has already played out. Therefore in the current scenario, short and medium-duration and accrual based funds are likely to offer better risk-adjusted returns and should be considered for fresh investments.

Will I have to pay a fee if I switch between two funds of the same fund house?

A switch from one scheme to another is redemption in one scheme and thereafter fresh purchase in another scheme. Such a switch could attract exit load depending on the fund house and fund’s mandate, for example, if the fund mandates exit load up to a year, it can apply in case you switch before the stipulated time period. While you make the switch, also keep in mind the taxation aspect of your investment.

How important is the (AUM) size of a mutual fund? Will a fund with bigger AUMs give better returns than one with a smaller AUM?

Asset size does not play a significant role in the performance of a scheme. In fact, an investor should pay more attention to pedigree of the fund house, experience of fund managers, fund’s investment and risk management approach, as these factors directly affect the performance of the scheme.

What should be the time frame for investing in mid-cap and small-cap funds?

The returns from equity as an asset class can be volatile in the short term. However, if one invests for the long term, the investor experience could be rewarding. When it comes to mid and small cap funds, which is generally considered as an aggressive investment option, ideal investment horizon should be at least five years and more.

What are hybrid funds? What is the difference between hybrid funds and balanced funds?

Hybrid funds typically offer a combination of debt and equity asset class. Depending upon the weightage of these asset classes, such funds are classified into two types — equity oriented hybrid funds and debt oriented hybrid funds. Balanced fund is a type of equity fund wherein the equity allocation can be between 65-80 per cent of the portfolio. Hybrid funds are suitable for investors with a moderate risk profile as the portfolio is constructed keeping in mind the conservative risk profile of investors.

I had invested in a three year closed ended fund last year. Now I want to redeem part of the money. Can I redeem it?

As units of closed ended funds can be redeemed with AMC only at the time of maturity; it is recommended that investors invest only that amount of money which will not be required during the lock-in tenure. In case of contingency, an investor can consider selling their units through exchange as the units of closed ended schemes are listed on stock exchanges.

What is the difference between dividend reinvesting option and growth option? Which will give better returns?

Dividend re-investment as the name suggests is an option wherein dividend is automatically reinvested in the scheme itself, at an ex-dividend Net Asset Value (NAV). Meanwhile in the growth option, an investor does not want to receive any part of profits of the before his redemption. In other words, both dividend reinvestment and growth options allow compounding.