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8 03, 2016

Mutual Funds: Money Market Funds Receive the Most in February! AUM for Equity MFs Fall For a Second Straight Month

By |March 8th, 2016|Categories: MutualFunds|Comments Off on Mutual Funds: Money Market Funds Receive the Most in February! AUM for Equity MFs Fall For a Second Straight Month

Periodically, AMFI releases a wonderful package of data concerning Mutual Funds. This includes AUM data, net inflows and outflows each month, Commissions data and so on. What they also do, is give out information regarding the different categories of MFs and the types of investors. Based on this information, we can get some insights into, for example; how have Retail investors reacted to the Budget vis-a-vis Mutual Fund entries or […]

17 02, 2016

The Risk in Debt Funds Surfaces as JSPL Gets Downgraded Yet Again

By |February 17th, 2016|Categories: JINDALSTEL, MutualFunds|2 Comments

After reporting a Rs. 550 cr. loss in December, Jindal Steel and Power Limited has seen a downgrade in its bond rating by Crisil. They were moved from BBB+ to BB+ (a full letter down, which is three notches).

The downgrade reflects CRISIL’s belief that the JSPL group’s liquidity will deteriorate significantly in the near term as stake sale in rolling mill and the receipt of […]

6 01, 2016

Sensex Five Year Returns Below 5%, Mutual Funds Did Slightly Better, But Barely Beat Inflation. Time For A Change?

By |January 6th, 2016|Categories: MutualFunds, Nifty|29 Comments

What if you had invested in the Sensex, every month, with the same amount, over the last five years? (Called a Systematic Investment Plan or SIP)

Answer: Less than 5% Per Year.

(Add another 2% for dividends, and remove about 1% for costs – either as ETF fees or otherwise – and you still get just 6% to 7% on the Sensex for five years)

[…]

11 09, 2015

Premium: Action Plan: What To Do With the Jitters In Corporate Debt Owning Mutual Funds

By |September 11th, 2015|Categories: Debt, MutualFunds, Premium|Comments Off on Premium: Action Plan: What To Do With the Jitters In Corporate Debt Owning Mutual Funds

CapM Premium Header

Today we’re going to look at debt mutual funds, and how they will be impacted when there are concerns that the debt they own has a potential of not being repaid.

Unless you’ve been living under a rock, you’ve heard of the crisis at Amtek Auto, and then that caused a crisis at JP Morgan AMC. Amtek Auto’s shares are near multiyear lows and when they were downgraded (12 notches! to essentially junk) everyone realized there’s a good chance the company may not be able to pay back the debt.

The Mark-To-Market Problem

[…]

28 08, 2015

JP Morgan AMC Takes A Big Hit on Two Short Term Debt Funds – The Sword of Potential Default in Amtek Auto?

By |August 28th, 2015|Categories: Debt, MutualFunds|13 Comments

Remember Amtek Auto? That company that fell big time on the exchanges and the official excuse was that it was taken out of the F&O category?

Well, that’s not that only thing that seems to have been hit. JP Morgan AMC’s short term debt funds have seen a large dip in their NAV yesterday. From Invest Mutual:

JP Morgan Short Term Income Fund  -3.38% – This is a short debt […]

10 03, 2015

Long Term Returns for Going “Direct” Can Give You Many Lakhs More

By |March 10th, 2015|Categories: Direct Plan, HDFC Mutual Fund, MutualFunds, Regular Plan|39 Comments

Last week, we wrote about how investing in Direct Plans vs Regular Plans could give an investor up to 0.7% extra returns annually. The differential is because of commissions that the distribtors get versus none in the Direct route. 

Take the HDFC Equity Mutual Fund, for instance. The Fund was started on January 01, 1995 with a starting NAV was Rs. 10. The Direct Plan was introduced in January 2013.

This is […]

5 03, 2015

Mutual Funds: Direct Plans Beat “Regular” Plans By 0.7% Per Year!

By |March 5th, 2015|Categories: Direct Plan, MutualFunds, Regular Plan|26 Comments

Mutual Funds have been in vogue as an investment class ever since their introduction in the 1960s with UTI introducing the first Mutual Fund in India. It has undergone a sea of changes and upgrades since those days, with public sector banks and other NBFCs throwing their hat in the ring as the years went by. The first private sector funds were set up in 1993, and this coincided with […]

15 10, 2014

Equity Mutual Funds Outperform Nifty; AUM Increases Over 60% In 15 Months

By |October 15th, 2014|Categories: MutualFunds|1 Comment

Following up on our earlier posts on Mutual Funds (Read “Why AMFI Should Not Ban Upfront Commissions” and “Mutual Funds Hike Exit Loads, Hoping This Time Investors Will Stay”), we take a closer look at the monthly performance of Mutual Funds.

The data that is used in our analysis provides a monthly look at Total Inflows, Redemptions/Repurchases Assets Under Management (AUM) and a few more metrics. The data was obtained from AMFIs database. […]

13 10, 2014

Why AMFI Should Not Ban Upfront Commissions

By |October 13th, 2014|Categories: MutualFunds|4 Comments

I am all for regulation. As in, I do not think a world without regulation, in the financial space, is worthwhile. But not all regulation is good, and the specific nature of my argument is that while I like the concept of regulation, I think we fail in the implementation.

Latest in my disagreement series is that AMFI is considering banning all upfront commissions to distributors by mutual funds. I […]

10 10, 2014

Mutual Funds Hike Exit Loads, Hoping This Time Investors Will Stay

By |October 10th, 2014|Categories: MutualFunds|12 Comments

In a strange move, Mutual Funds are increasing exit load time frames. This is usually a desperate situation by MFs to retain investors, or they are just using the current interest in equity funds to ensure that these investors stay even if the market gets volatile.

 

(Pic from the Business Standard Article)

Even bond funds haven’t been spared! Sure, the recent budget has made it less lucrative […]

18 07, 2014

Mutual Fund Commissions Go Up in FY14, But The Future Is Scary (Freemium)

By |July 18th, 2014|Categories: Macronomics, MutualFunds, Premium|Comments Off on Mutual Fund Commissions Go Up in FY14, But The Future Is Scary (Freemium)

Each year AMFI releases data on all commissions paid to agents by all mutual funds, to distributors that meet any of:

  • Manage more than 100 cr. Of assets
  • Commissions of Rs. 1 cr. In total (all MFs) or Rs. 50 lakh from a single fund house
  • […]

6 11, 2013

How Much Are You Paying Mutual Funds in Commissions?

By |November 6th, 2013|Categories: MutualFunds|18 Comments

A question on Ask Capital Mind goes like this:

Is there any link from which I can get to know the Trailing commission which the AMC pays to the distributor?

The one simple way to find out what it costs you in commissions is to check the mutual funds’ direct plan versus the regular plan. Check only the growth options because dividends distort the NAVs since the payouts could happen […]

18 10, 2013

Video: Liquid and Ultra Short Term funds, and Fixed Deposits

By |October 18th, 2013|Categories: FixedIncome, MutualFunds, Video|1 Comment

Some of you have talked about Liquid and Ultra Short Term funds, versus Fixed Deposits, and how to compare all of them:

Here’s a video that I’d made at MarketVision a long time back which might be relevant:

Certain minor things might have changed – like the Dividend taxes on ultra-short term funds have now been upped to 25% as well, so that advantage over liquid funds […]

5 08, 2013

Liquid Funds Recover From the July 15 Damage

By |August 5th, 2013|Categories: Gilts, MutualFunds|2 Comments

Liquid Funds have recovered substantially from their fall on July 16. Remember, on July 15, the RBI took extraordinary measures to cut liquidity and that raised short term interest rates by 300 bps (3%). This caused liquid funds to fall in their NAV, as short term funds were impacted by rising yields (yields move inversely with prices).

At the time there was a fear that these funds have […]