SEBI's move to double the minimum investment amount for portfolio management services (PMS) may force some high networth individuals to take the mutual fund route for making investments."SEBI's proposals will immensely help both the asset management industry as well as investors," said Sushant Bhansali, Chief Executive Officer, Ambit Asset Management."The ticket size increase should result in additional AUM for mutual funds as those in the Rs 25-50 lakh bracket will considering investing in MFs," he added.On November 20, SEBI doubled the minimum investment in PMS funds to Rs 50 lakh.However, existing investments will be allowed to continue until the end of the PMS agreement, the regulator said in a release detailing decisions taken at its board meet on November 20.Concurring with Bhansali's view, Prakash Gagdani, CEO, 5Paisa.com, said: "By increasing the PMS limit SEBI has made it very clear that major section of the retail investor should come via mutual fund … [Read more...] about SEBI move to up minimum PMS investment could benefit mutual funds
Mutual funds are busy changing the names of their schemes. Securities Exchange Board of India’s (Sebi) directive on the rationalisation and categorisation of mutual fund schemes has made mutual funds to drop the fancy names and fall in line. The idea is to simplify the process of understanding the mutual fund offerings and choosing schemes for investments by investors. But as the names change, there are some investors who may start worrying about their investments. If the investment you have invested into has disappeared or renamed do not get worked up. Do read on to understand how it impacts you.What happened?To ensure that all schemes launched by mutual funds are distinct in terms of asset allocation and investment strategy, SEBI proposed categorisation and rationalisation of mutual fund schemes. The SEBI prescription allows fund houses to offer schemes in 10 types of equity funds, 16 categories of bond funds and 6 categories of hybrid funds. Fund houses are also allowed … [Read more...] about Have they changed the name of your favourite mutual fund scheme? Here’s what you should do
The divestment programme of the Indian government has seen good traction thus far, partly because the government chose the exchange traded fund (ETF) route for the purpose.While more than Rs 10,000 crore rides on public sector company stocks through these schemes, the performance of PSU-stocks-dedicated mutual fund schemes have seen a dip in the past three months. This has made investors jittery about their investments.However experts advise investors to ignore short-term noise and focus on long-term prospects.Close "Owing to market volatility, investors may opt for defensive stocks. Many PSU stocks are large companies available at relatively attractive dividend yields. So, investors can consider investing in a staggered manner over next six months while investing in this space," says Chintan Haria, Fund Manager and Head of Product Strategy at ICICI Prudential AMC. related news Double Your Income series: Can I boost my income even if the economy is slowing? What is … [Read more...] about Do PSU equity funds offer an investment opportunity after their recent fall?
Small and mid-cap funds have been the preferred choice of many when it comes to mutual fund investing. By the end of CY2017, returns in excess of 30 percent ensure top of the returns-chart placement for these funds which in turn ensured sustained inflows from investors, especially first timers. No wonder some of them have loaded up their portfolios with small and mid-cap funds to the hilt.Here are three parameters that indicate that you have gone overboard with the small and mid-cap funds and some expert advice on how to handle the situation.You have invested more than 30 percent of your money in small and mid-cap fundsClose “Sometimes investors get influenced by the short-term performance and load up a particular type of scheme in their portfolios and sometimes market movements change the portfolio mix,” says Nishant Agarwal, Managing Partner & Head - Family Office, ASK Wealth Advisors. As mid cap funds offered much higher returns than the large cap funds the … [Read more...] about 3 factors that ask for a switch away from small and mid-cap funds
Tax saving mutual fund schemes or equity linked saving scheme (ELSS) are one of the most preferred options to save tax for most individuals. It comes with a three-year lock-in period. Although there is no restriction on the amount one can invest in it, investments up to Rs 1.5 lakh in a financial year is exempt under section 80C of the Income Tax Act. The recent budget kept the section 80C limit of Rs 1.5 lakh intact.Although no rule bans investments in excess of Rs 1.5 lakh per year, one should not invest money in excess of what is required in ELSS. Primary reason behind this is the three-year in lock in period. Financial planners advise investing in equity mutual funds with long-time frame – typically in excess of five years and in that case three-year lock-in is not a hindrance. It makes sense to invest in a product for long-term by choice and not out of force.ELSS portfolios comprise stocks of companies of all sizes – large, mid and small. This is akin to a … [Read more...] about Explainer | Should you invest more than Rs 1.5 lakh in tax-saving funds?