Gold loan provider Muthoot Finance (MFIN) has bought IDBI Mutual Fund (IDBI MF) on November 22, paving way for company's entry into mutual funds space."MFIN today entered into a definitive agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited," Muthoot Finance said in its BSE filing.The transaction is expected to be completed by end of February 2020 subject to receipt of necessary regulatory approvals, it added.Close MFIN said upon closing, both IDBI AMC and IDBI MF Trustee Company would become its wholly owned subsidiary companies. related news DHFL postpones release of financial results; new date to be announced later Bank loan fraud: ED arrests former Bhushan Steel CMD Sanjay Singhal SBI raises Rs 3,814 cr from perpetual bonds Promoted by IDBI Bank in 2010, IDBI MF is one of the profit making companies in the mutual fund space with Assets Under Management (AUM) of approximately Rs 5,300 crore.IDBI MF runs 22 schemes with robust AUM … [Read more...] about Muthoot Finance to acquire IDBI’s mutual fund business for Rs 215 crore
Fixed income investors have been going through uncertain times. Investors in fixed maturity plans of two mutual funds have not been paid in full on the due dates. Elevated credit risk has made many investors shun credit risk funds despite attractive yields.Bond markets are staring at the outcome of the general elections as it will also have some bearing on the macro-economic factors such as fiscal deficit and government borrowing.At this crucial juncture, R Sivakumar, Head- Fixed Income, Axis Mutual Fund advises investors to keep their cool. He advises investors not to shun bond funds altogether and instead choose diversified bond portfolios that suit one’s investment needs.Close Investors are now officially scared of debt funds. Even liquid funds and FMP have lost money. Can we now say that if you can stomach the risk and stay here for the long run, then invest in equity funds? For everything else, go to bank fixed deposits and non-convertible debentures? related news … [Read more...] about Credit risk funds structurally still have the potential to offer excess returns over market returns: Axis MF
Saving and investing is must for everyone. As inflation leads to a price rise of essential commodities, your kitty should also grow over time to keep pace with inflation. While investing either you can choose to be an active investor and expect more return than market average, or you can choose to be happy with lower returns.As the name suggests an active investment management style involves hands-on approach. An investor or the fund manager is expected to pick and choose the right security, at the right time and at the right price. The portfolio comprises hand-picked investment opportunities. At times, the investor may take shelter in safe haven options such as cash and gold. The idea is to outperform returns that the market gives.Of course, it comes with its own set of costs – higher fees and the possibility of underperformance to the market as the fund manager or investor may go wrong.Close Fund managers of actively-managed mutual funds decide on which stocks and sectors they … [Read more...] about Explainer | Active or passive investing – which is better?
BOI-Axa’s Credit Risk Fund was in the focus for all the wrong reasons. The recent fall in its net asset value after a credit event resulted in a 29 per cent loss on a one-year basis, placing the scheme at the bottom of the category. Many issuers are fighting the tight liquidity in the system. Despite the cuts in policy rates by the Reserve Bank of India and fall in benchmark bond yield, there is not much respite for debt investors. In this backdrop, Alok Singh, chief investment officer of BOI-Axa Asset Management Company shares his views on some of these issues.BOI Axa Credit Risk Fund’s NAV has declined 29 per cent over past one year and is at the bottom of the returns table. What went wrong and how do you plan to tide over the situation?Since its inception in February 2015, BOI Axa Credit Risk Fund has been managed like a focussed fund. Though the concentration of issuers meant high risk, it also allowed effective monitoring. The fund did well till August 2018. In … [Read more...] about ‘Taking credit risks in liquid funds not the right thing to do’: BoI AXA
Foreign portfolio investors (FPIs) sold equities worth Rs 22,500 crore in the Indian market in the September quarter, as concerns over weak macroeconomic environment and uncertainty around the US-China trade talks and Brexit kept the risk appetite low.There was a shift in the preferences of stocks and sectors as well.According to a Kotak Institutional Equities report, Lemon Tree Hotels, Varun Beverages and Shriram Transport saw the highest increase in the stake by FPIs, while Mindtree, Yes Bank and LIC Housing Finance saw the biggest drop in stake.Close Diversified financials, IT services and oil, gas and consumable fuels sectors witnessed FPI selling. FPI ownership in the BSE-200 Index declined to 23.8 percent in the September quarter from 24.1 percent in the previous quarter. related news These 26 stocks saw EPS downgrades in 4 quarters: time to book out? CSB Bank IPO opens today; should you subscribe? Market Headstart | Nifty … [Read more...] about These stocks were FPI favourites in Q2; do you have any?