• MF News
  • IPO News

Big bet on SIPs: MFs garner over Rs 67,000-cr in FY18 In comparison, Rs 43,921 crore was collected through the investment plan in 2016-17, according to the latest update with Association of Mutual Funds in India (Amfi).
Mon, 16 Apr 2018 16:20:25 +0530


Equity MF inflow down 59% to Rs 6,657-cr in March on LTCG According to a report by rating agency Icra, equity funds, including equity-linked saving schemes saw monthly net inflow of Rs 6,657 crore in March, down from Rs 16,268 crore infusion seen in February.
Thu, 12 Apr 2018 18:25:23 +0530


Equity mutual funds log Rs 1.7 lakh crore inflow in FY18 Strong inflows have pushed the asset base of equity MFs by 38 percent to Rs 7.5 lakh crore during the period under review, the data showed.
Mon, 09 Apr 2018 15:35:18 +0530


Most equity mutual funds underperform in last 1 year: Report The findings are a part of SP Dow Jones Indices#39; scorecard SPIVA, which tracks the performance of actively managed Indian mutual funds against their benchmarks over one-year, three-year, five-year and 10-year periods.
Mon, 26 Mar 2018 17:58:12 +0530


Tushar Pradhan Speaking on investor behaviour, Tushar Pradhan believes that the real test of the investor would be in case of a major correction if there is a substantial external element.
Wed, 14 Mar 2018 10:43:13 +0530


Nazara Technologies gets Sebi#39;s go-ahead for IPO The company is popularly known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.
Mon, 23 Apr 2018 18:37:29 +0530


IndoStar Capital gets Sebi#39;s nod for Rs 2,000 cr IPO The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in January and received "observations" from the regulator on April 3, as per the latest update with the markets watchdog.
Mon, 09 Apr 2018 18:43:18 +0530


Strong debut: Hotel chain Lemon Tree closes 29% higher on Day 1 The hospitality chain’s stock closed at Rs 72.10 apiece, a rise of Rs 16.1 to the issue price of Rs 56. It had listed at Rs 61.6, a premium of 10 percent to its issue price on the National Stock Exchange (NSE).
Mon, 09 Apr 2018 15:37:30 +0530


New Listing: Lemon Tree Hotels debuts with 10% premium at Rs 61.6 apiece The Rs 1,038.68 IPO received bids for 15.49 crore shares against the total issue size of 12.98 crore shares.
Mon, 09 Apr 2018 10:00:24 +0530


Lemon Tree Hotels to make stock market debut on April 9 The company in consultation with merchant bankers has fixed final issue price at Rs 56 per share.
Sat, 07 Apr 2018 17:00:04 +0530


Mishra Dhatu Nigam closes tad higher than issue price The stock touched an intraday high of Rs 91 and low of Rs 86.05 after opening 3.3 percent lower at Rs 87.
Wed, 04 Apr 2018 17:12:22 +0530


ICICI Securities makes weak debut; stock dips 14% below issue price The stock got listed at Rs 431.10 with a discount of 17.09 per cent over the issue price. During the day, it touched an intra-day high of Rs 462.70 and an intra-day low of Rs 431.10.
Wed, 04 Apr 2018 15:20:20 +0530


Mishra Dhatu Nigam opens lower, falls over 4% to Rs 86.05 The stock price fell as much as 4.4 percent in morning to hit a day#39;s low of Rs 86.05 while it touched an intraday high of Rs 90.90.
Wed, 04 Apr 2018 10:33:32 +0530


ICICI Securities debuts at Rs 453.80, down 13% from issue price The stock price debuted at Rs 453.80 on the National Stock Exchange, down 12.73 percent compared to issue price of Rs 520.
Wed, 04 Apr 2018 10:08:15 +0530


4 PSUs file IPO papers with Sebi Railway infrastructure firm Ircon International and warship maker Garden Reach Shipbuilders and Engineers are the other two firms which have filed IPO papers.
Mon, 02 Apr 2018 19:19:16 +0530


Karda Construction debuts with a discount of 24% at Rs 136 The stock listed at Rs 136, a discount of 24 percent to the issue price of Rs 180.
Mon, 02 Apr 2018 10:14:27 +0530


New Listing: Sandhar Technologies lists at a premium of 5% at Rs 349 The stock listed at Rs 349, a gain of Rs 27 to the issue price of Rs 332 per share.
Mon, 02 Apr 2018 10:04:22 +0530


Sandhar Technologies, Karda Construction to debut on bourses on April 2 Sandhar Technologies has fixed the final issue price at Rs 332 per share and Karda at Rs 180 per share.
Wed, 28 Mar 2018 23:50:20 +0530


T Suvarna Raju It was no fireworks for Hindustan Aeronautics Limited (HAL) debut on dalal street. The defence major listed at Rs 1,159 per share versus issue price of Rs 1,215 per share.
Wed, 28 Mar 2018 15:07:13 +0530


Hindustan Aeronautics debuts at Rs 1,159, falls 5% from issue price The stock price has opened at Rs 1,159 on the National Stock Exchange while it started off trade at Rs 1,169 on the BSE, falling 4 percent.
Wed, 28 Mar 2018 10:05:24 +0530

SCHEDULED A MEETING
Name :
City :
E-mail :
Mobile :
Message :
Captcha Code "643750"
 
Mutual Fund

The Definition

A mutual fund is nothing more than a collection of stocks and /or bonds. You can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.

You can make money from a mutual fund in three ways:

v Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of the income it receives over the year to fund owners in the form of a distribution.

v If the fund sells securities that have increased in price, the fund has a capital gain. Most of the funds also pass on these gains to investors in a distribution.

v If fund holdings increase in price but are not sold by the fund manager, the fund’s shares increase in price. You can then sell your mutual fund shares for a profit.

Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares.

 

Advantages of Mutual Funds:

Professional Management – The primary advantage of funds is the professional management of your money. Investor purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

Diversification – By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you. Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn’t be possible for an investor to build this kind of portfolio with a small amount of money.

Economies of Scale – Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions.

Liquidity – Just like an individual stock, a mutual fund allows you to request that your units be converted into cash at any time.

Simplicity – Buying a mutual fund is easy. Mutual fund companies own a line of schemes, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as Rs.500 can be invested on a monthly basis.

 

Mutual Funds: Different Types of Funds

No matter what type of investor you are, there is bound to be a mutual fund that fits your style. According to the last count there are more than 40 mutual funds companies in India selling more than 200 mutual fund schemes.

It’s important to understand that each mutual fund has different risks and rewards. In general, the higher the potential return, the higher the risk of loss. Although some funds are less risky than others, all mutual funds have some level of risk – it’s never possible to diversify away all risk. This is a fact for all investments.

Each fund has a predetermined investment objective that tailors the fund’s assets, regions of investments and investment strategies. At the fundamental level, there are three varieties of mutual funds:

v Equity funds (stocks)

v Fixed- income funds(bonds)

v Money market funds (T-bills, call money market)

 

All mutual funds are variations of these three asset classes. For example, while equity funds that invest in fast-growing companies are known as growth funds, equity funds that invest in companies of the same sector or region are known as specialty funds.

Let’s go over the many different flavors of funds. We’ll start with the safest and then work through to the more risky.

Money Market Funds:

The money market fund consists of short-term debt instruments, mostly treasury bills. This is a safe place to park your money. You won’t get great returns, but you won’t have to worry about losing your principal. A typical return is twice the amount you would earn in the regular checking/savings account and a little less than the average certificate of deposit (CD).

Bond/Income Funds:

Income funds are named appropriately: their purpose is to give current income on a steady basis. When referring to mutual funds, the terms “fixed-income,” “bond,” and “income” are synonymous. These terms denote funds that invest primarily in government and corporate debt. While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. As such, the audience for these funds consists of conservative investors and retirees.

Bond funds are likely to pay higher returns than certificates of deposits and money market investments, but bond funds aren’t without risk. Because there are many different types of bonds, bond funds can vary dramatically depending on where they invest. For example, a fund specializing in high-yield junk bonds is much more risky than a fund that invests in government securities. Furthermore, nearly all bond funds are subject to interest rate risk, which means that if rates go up the value of the fund goes down.


Balanced Funds: 

The objective of these funds is to provide a balanced mixture of safety, income and capital appreciation. The strategy of balanced funds is to invest in a combination of fixed income and equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income. The weighting might also be restricted to a specified maximum or minimum for each asset class. 

A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a balanced fund, but these kinds of funds typically do not have to hold a specified percentage of any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset classes as the economy moves through the business cycle. 

 

Equity Fund:

Funds that invest in stocks represent the largest category of mutual funds. Generally, the investment objective of this class of funds is long-term capital growth with some income. There are, however, many different types of equity funds because there are many different types of equities.


The idea is to classify funds based on both the size of the companies invested in and the investment style of the manager. The term value refers to a style of investing that looks for high quality companies that are out of favour with the market. These companies are characterized by low P/E and price-to-book ratios and high dividend yields. The opposite of value is growth, which refers to companies that have had (and are expected to continue to have) strong growth in earnings, sales and cash flow. A compromise between value and growth is blend, which simply refers to companies that are neither value nor growth stocks and are classified as being somewhere in the middle. 

For example, a mutual fund that invests in large-cap companies that are in strong financial shape but have recently seen their share prices fall would be placed in the upper left quadrant of the style box (large and value). The opposite of this would be a fund that invests in start-up technology companies with excellent growth prospects. Such a mutual fund would reside in the bottom right quadrant (small and growth). 

Global/International Funds:

An international fund (or foreign fund) invests only outside your home country. Global funds invest anywhere around the world, including your home country. 

It’s tough to classify these funds as either riskier or safer than domestic investments. They do tend to be more volatile and have unique country and/or political risks. But, on the flip side, they can, as part of a well-balanced portfolio, actually reduce risk by increasing diversification. Although the world’s economies are becoming more inter-related, it is likely that another economy somewhere is outperforming the economy of your home country. 

 

Specialty Funds:

This classification of mutual funds is more of an all-encompassing category that consists of funds that have proved to be popular but don’t necessarily belong to the categories we’ve described so far. This type of mutual fund forgoes broad diversification to concentrate on a certain segment of the economy. 

Sector funds are targeted at specific sectors of the economy such as financial, technology, health, etc. Sector funds are extremely volatile. There is a greater possibility of big gains, but you have to accept that your sector may tank. 

Regional funds make it easier to focus on a specific area of the world. This may mean focusing on a region (say Latin America) or an individual country (for example, only Brazil). An advantage of these funds is that they make it easier to buy stock in foreign countries, which is otherwise difficult and expensive. Just like for sector funds, you have to accept the high risk of loss, which occurs if the region goes into a bad recession. 

Socially-responsible funds (or ethical funds) invest only in companies that meet the criteria of certain guidelines or beliefs. Most socially responsible funds don’t invest in industries such as tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get a competitive performance while still maintaining a healthy conscience. 

Index Fund:

The last but certainly not the least important are index funds. This type of mutual fund replicates the performance of a broad market index such as the NIFTY 50 or BSE Sensex. An investor in an index fund figures that most managers can’t beat the market. An index fund merely replicates the market return and benefits investors in the form of low fees.