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<ul><li>The mutual fund product will provide investors with an opportunity to diversify their portfolio with exposure to multinational companies.</li><li>The fund house said that due to a unique combination of good corporate governance, trusted brands, focus on innovation and strong balance sheets, MNCs have longevity.</li><li>The fund will follow a bottoms-up approach with a focused strategy of maximum 30 stocks.</li><li>The scheme will be benchmarked against <keyword id="16491170" type="General" weightage="20" keywordseo="NIFTY-MNC-TRI" source="Orion">NIFTY MNC TRI</keyword> (Total Returns Index).</li></ul>HDFC Asset Management Company has launched HDFC MNC, an open ended equity scheme following multinational company (MNC) theme. The mutual fund product will provide investors with an opportunity to diversify their portfolio with exposure to multinational companies that are resilient during bouts of volatility. The fund house said that due to a unique combination of good corporate governance, trusted brands, focus on innovation and strong balance sheets, MNCs have longevity. “MNCs generally provide a unique combination of innovation and brand creation. They have access to superior products and technology due to R&amp;D focus of parent companies. This allows them to focus on brand creation,” said HDFC AMC in a fund presentation. The management said that the fund will invest in Indian companies that have a global presence of more than decade and are selling products consumed all over India. Dove, Tide, Kitkat, Vicks, Colgate etc are examples of well known brands with strong presence in everyday life that offer good investment opportunities, said the fund house. “MNCs tend to have a good track record of free cash flow generation and high dividend payout. Strong profitability and superior capital allocation track record results in consistently higher return ratios, thereby aiding wealth creation,” added the fund house. During periods of market downswings like tech bubble, global financial crisis, covid and geopolitical uncertainty, NIFTY MNC Index has managed to protect downside better than the broader market like Nifty 500, shows data shared by HDFC AMC. The fund will follow a bottoms-up approach with a focused strategy of maximum 30 stocks. The scheme will be benchmarked against NIFTY MNC TRI (Total Returns Index). The new fund offer (<keyword id="35472" type="General" weightage="20" keywordseo="NFO" source="Orion">NFO</keyword>) will open for subscription from February 17 and will close on March 3 and the scheme will be managed by senior fund manager Rahul Baijal. The minimum subscription amount for investment in the scheme is ₹100 per application and any amount thereafter. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-posts-820-crore-net-profit-in-q3-gautam-adani-says-current-market-volatility-temporary/articleshow/97914997.cms">Adani Enterprises posts ₹820 crore net profit in Q3: Gautam Adani says current market volatility temporary</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/top-stocks-heres-what-the-big-boys-bought-between-october-and-december/articleshow/97912443.cms">Top stocks: Here’s what the Big Boys bought between October and December</a>

HDFC MF launches MNC fund that offers portfolio diversification opportunities

Kolkata, <keyword id="259611" type="General" weightage="20" keywordseo="mirae-asset-mutual-fund" source="Orion">Mirae Asset Mutual Fund</keyword> on Thursday said it remains optimistic about a <keyword id="18167645" type="General" weightage="20" keywordseo="stable-capital-market-outlook" source="Orion">stable capital market outlook</keyword>, aided by <keyword id="18167646" type="General" weightage="20" keywordseo="improved-macroeconomic-conditions" source="Orion">improved macroeconomic conditions</keyword>. Ankit Jain, the fund manager at <keyword id="6418883" type="General" weightage="50" keywordseo="mirae-asset-amc" source="Orion">Mirae Asset AMC</keyword>, said the 25-basis point rate hike by the <keyword id="6355253" type="General" weightage="50" keywordseo="federal-reserve" source="Orion">Federal Reserve</keyword> was in line with expectations. According to him, inflationary pressures are easing globally, and supply and demand imbalances are being rectified. Jain emphasised that "India's healthy GDP growth projections contribute to the stability of the capital <keyword id="35196" type="General" weightage="20" keywordseo="market-outlook" source="Orion">market outlook</keyword>". He also expected that corporate earnings will rise, particularly in sectors that have already shown significant improvement. Jain expressed bullish sentiment towards sectors such as banking, pharma &amp; healthcare, consumer discretionary and manufacturing. Speaking about Mirae Asset Mutual Fund, which has an asset under management worth Rs 1.38 lakh crore, Jain said it has registered a compound annual growth rate of 40 per cent in the last few years. He expressed optimism about continued expansion due to the untapped potential of the mutual fund industry in the country. Despite the mutual fund industry's total assets under management standing at Rs 40 lakh crore, the "number of unit folios is currently only 3.5 crore, whereas there are over 8 crore taxpayers and 60 crore PAN card holders", he said. Speaking at the launch of the new Mirae Asset Multicap Fund, Jain described its investment strategy, stating that it will allocate 25 per cent each to large, mid and small-cap companies. He believes that this "balanced approach will enable investors to capitalise on long-term opportunities in high-growth small and mid-cap sectors". The NFO (New Fund Offer) of the assent management company is scheduled to open for subscription on July 28 and will close on August 11.

Mirae Asset MF sees market outlook 'stable', launches multi-cap fund

Equity MF flows more than double in September as investors buy the dip – ICICI Bank is the MF darling

<ul><li><keyword id="617593" type="General" weightage="20" keywordseo="Kotak-Mahindra-Asset-Management-Company" source="Orion">Kotak Mahindra Asset Management Company</keyword> launches a silver ETF, which will invest in physical silver and silver related instruments.</li><li>The fund house believes this is an opportunity to hedge against the ongoing economic uncertainties and geopolitical risks prevalent across several major global economies.</li><li>Silver ETF is more suited to experienced investors who understand commodity cycles.</li></ul>Kotak Mahindra Asset Management Company on Thursday launched Kotak Silver ETF (exchange traded fund), which will invest in physical silver and silver related instruments. The mutual fund product will provide investors with an opportunity to invest in this precious metal without physically holding it. The ETF’s price will be in line with the price movement of silver. The fund house says this investment product will provide investors an opportunity to hedge against the ongoing economic uncertainties and geopolitical risks prevalent across several major global economies. A silver ETF provides easy access to silver without actually physically holding it and also help in diversifying the investor portfolio. “Our Silver ETF launch is in line with our continued effort to provide easy and efficient access to various asset classes. It will provide convenient access to Silver as an asset which is not only a precious metal but also has many industrial uses. The consolidation in Silver prices since the start of the year provides a good opportunity for those looking to allocate some money to this asset for diversification,” said Nilesh Shah, group president and MD at Kotak Mahindra Asset Management Co. As per the World Silver Survey 2022, post the pandemic, demand for silver has outstripped supply due to uptick in industrial activity and a surge in retail investor appetite for the metal. The metal has clocked 43% absolute returns in the 5-year period. However, the past performance may or may not be sustained in the future. Silver prices are driven by its industrial consumption and supply side dynamics. The precious metal is a hedge against the traditional equity-debt portfolio, as silver has low-correlation with both asset classes. However, silver is a high-risk asset class and, therefore, it is more suited to investors who understand precious metals and commodity cycles. The new fund offer (NFO) of the Silver ETF opens for subscription on November 21 and closes on December 5. The units of the fund will be in the form of creation unit size or in multiples thereof. Each creation unit consists of 30,000 units of Kotak Silver ETF. Each unit is approximately equal to 1 gram of silver, said the mutual fund company. <keyword id="46594" type="General" weightage="20" keywordseo="etfs" source="Orion">ETFs</keyword> are a type of funds that are bought and sold the same as a stock on the exchange and the underlying asset in this case would be silver. The price of the ETF is tracked to an underlying index, here it will follow the price of silver in the real world. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/list-of-indian-and-global-companies-that-have-fired-their-employees-in-the-last-3-months/slidelist/95423791.cms">Here’s a list of Indian and global companies that have fired their employees in the last 3 months</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/paytms-lending-and-merchant-businesses-drive-revenue-growth-in-q2-low-penetration-offers-headroom-for-growth-say-analysts/articleshow/95423464.cms">Paytm's lending and merchant businesses drive revenue growth in Q2 – low penetration offers headroom for growth say analysts</a>

Kotak Mahindra MF launches silver ETFs to hedge against ongoing uncertainties

<ul><li>Mutual fund folios reached an all time high in February at ₹14.43 lakh crore.</li><li>High inflows were seen in thematic and small cap funds at ₹3,856 crore and ₹2,246 crore respectively.</li><li>Debt oriented funds continued to witness outflows of ₹13,815 crore in February.</li></ul>Inflows into equity oriented <keyword id="6357979" type="General" weightage="20" keywordseo="mutual-funds" source="Orion">mutual funds</keyword> hit a nine-month high in February with an infusion to the tune of ₹15,686 crore. The inflows stood at ₹12,546 crore in January, as per Association of Mutual Funds in India (AMFI) data. “This was on the back of a successful NFO of a couple of sectoral funds and one multicap fund. All these three funds mobilized ₹4,300 crore in total, which led to strong inflows,” said Viraj Gandhi, CEO at SAMCO MF. Mutual fund folios reached an all time high in February at 144 million, with MF industry assets under management (AUM) at ₹39.46 lakh crore. Retail MF folios were also at record high. High inflows were seen in thematic and small cap funds at ₹3,856 crore and ₹2,246 crore respectively. Mutual funds’ <a href="https://www.businessinsider.in/stock-market/news/mutual-funds-raise-bets-on-mid-small-cap-stocks-amid-volatile-markets/articleshow/98516460.cms">interest in mid and small caps has been growing </a>in the last three quarters. Domestic institutional investors (DIIs) like mutual funds invested into equities even as foreign institutional investors (FIIs) investments fell into the red. Overall, FPIs sold equities worth <a href="https://www.businessinsider.in/stock-market/news/fpis-continue-to-be-bearish-on-oil-gas-power-stocks-in-february-offload-equities-worth-7821-crore-in-the-two-sectors/articleshow/98511897.cms">₹5,293 crore in February</a>, while they <a href="https://www.businessinsider.in/stock-market/news/fpis-offload-equities-worth-28851-crore-in-january-in-financial-services-oil-gas-stocks/articleshow/97862620.cms">sold equities worth ₹28,851 crore last month</a>. <div type="image" title="new-equity-gfx" msid="98546165" hostid="261" sizebytes="49608"></div> FDs vs debt oriented funds Debt oriented funds continued to witness outflows of ₹13,815 crore in February, higher than ₹10,316 crore in January. This is because interest rate sensitive funds like credit risk funds, floater funds etc have been impacted by RBI’s rate hikes, said AMFI, CEO, NS Venkatesh in a media call. “Rising interest rates have hurt debt fund returns over the past year, with category average returns for most fixed income funds ranging from 3-4.5%. It is possible that investors are growing wary and are choosing to move money to fixed deposits instead, considering that their interest rates have seen an impressive rise of late,” said Harsh Gahlaut, CEO at FinEdge. SIP flows slow down marginally Contribution of retail investors through SIPs fell to ₹13,686 crore in February from ₹13,856 crore in January. “Retail investors continue to enter the markets via the SIP route, which is reflected in the consistent rise in SIP inflows over the last many months. Due to the fact that February has only 28 days, there is a dip seen in SIP contribution numbers as the flows are not recorded for the full month of 31 days,” Venkatesh said. The number of SIP accounts rose to 6.28 crore in February compared to 6.21 crore last month. The total SIP assets under management stood at ₹6.74 lakh crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-technologies-files-drhp-with-sebi-all-you-need-to-know-about-this-tata-motors-subsidiary/articleshow/98539244.cms">Tata Technologies files DRHP with SEBI: All you need to know about this Tata Motors subsidiary</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/bengaluru-accounts-for-four-out-of-five-layoffs-by-indian-startups-in-2023-so-far/slidelist/98534987.cms">Bengaluru accounts for four out of five layoffs by Indian companies in 2023</a>

Inflows into equity MFs hit a 9-month high in Feb, retail MF folios at record high

<ul><li>DSP Investment Managers launches a silver <keyword id="6357062" type="General" weightage="20" keywordseo="etf" source="Orion">ETF</keyword>, which will invest in <keyword id="4257203" type="General" weightage="20" keywordseo="physical-silver" source="Orion">physical silver</keyword> and silver related instruments.</li><li>Investment in silver can be a hedge against traditional equity and debt products.</li><li>Silver ETF is more suited to experienced investors who understand commodity cycles.</li></ul>DSP Investment Managers on Monday launched DSP Silver ETF (<keyword id="181067" type="General" weightage="20" keywordseo="exchange-traded-fund" source="Orion">exchange traded fund</keyword>), which will invest in physical silver and silver related instruments. This investment vehicle will give investors an opportunity to invest in this precious metal without physically holding it. The ETF’s price will be in line with the price movement of silver. Silver prices are driven by its industrial consumption and supply side dynamics. The precious metal is a hedge against the traditional equity-debt portfolio, as silver has low-correlation with both asset classes. However, silver is a high-risk asset class and, therefore, it is more suited to investors who understand precious metals and commodity cycles. A silver ETF can be used to hedge against equity and debt market products in times of volatility. “This new ETF offers investors an easier way to buy or sell silver compared to the physical version with the freedom to trade easily,” said DSP Investment Managers on Monday. Moreover, demand for physical silver is also very high because of its wide use across industries including jewelry businesses, solar panels and electrical conductors. Data suggests that close to 50% of the world's silver is consumed by electronics, auto, power, pharma and many other industries but the supply and availability for recycling is limited. DSP believes that as the world shifts to renewable and cleaner energy resources, there is potential for demand to go up since silver is a crucial raw material. DSP Silver ETF would allow investors to buy the precious metal starting from a ticket size of ₹5000. The new fund offer (NFO) of the Silver ETF opens for subscription on 1 August and closes on 12 August. Besides, silver can also potentially act as leverage against a depreciating rupee. This is because silver prices in India are derived from international silver prices but are then converted after adding currency effects and other costs of landing. “Investing in silver via an ETF is a modern and smart way for investors to gain exposure to this precious metal in an easy, digital form. Increasing demand for silver in industries, newer technologies and a shift to renewable sources of energy and the safe-haven demand can also act as favourable tailwinds for the metal. However, investors should expect fluctuations in short-term returns, especially during times of market volatility,” Anil Ghelani, CFA, head – passive investments and products at DSP Investment Managers. ETFs are a type of funds that are bought and sold the same as a stock on the exchange and the underlying asset in this case would be silver. The price of the ETF is tracked to an underlying index, here it will follow the price of silver in the real world. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sadhguru-koo-and-voot-select-are-indias-top-3-advertisers-on-meta-this-quarter/articleshow/93276557.cms">Sadhguru and Isha Foundation are India’s biggest advertisers on Meta: They spent ₹8 lakhs per day on Facebook and Instagram</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mahindra-mahindra-market-cap-crosses-1-5-lakh-crore-after-suv-sales-and-scorpio-n-bookings/articleshow/93275982.cms">Mahindra &amp; Mahindra market cap crosses ₹1.5 lakh crore after SUV sales and Scorpio-N bookings</a>

DSP MF launches silver ETFs amidst market volatility

New Delhi, May 11 () The number of proposals for new fund offers (NFOs) filed by mutual fund houses with markets regulator Sebi has been dwindling since past few months largely due to the nationwide lockdown and its impact on overall investor sentiment. Fund houses approached Sebi for as many as 11 NFOs in January, the number fell to six in February and further dropped to just one in March and nil in April. In May so far, the figure stands at two, according to the markets regulator. Since March, draft documents for only three new schemes have been filed. This comprises one by Nippon India MF in March and two by SBI MF in May and interestingly, all the three are passive funds. "The slowdown in March/April is largely related to the lockdown and its impact on overall investor sentiment," said Kaustubh Belapurkar, Director – Manager Research, Morningstar India. Jimmy Patel, MD and CEO, Quantum Mutual Fund said the industry is grappling with fixed income funds facing redemption pressure last month and the prevailing market conditions are not so encouraging either, which resulted in slowdown in NFO filing. "In COVID-19 era, there seems to be uncertainty on the survival and continuity of a lot of industries and business models. At this point in time, it is not a liquidity crisis but a crisis of confidence," Ashika Wealth Advisors Co-Founder and CEO Amit Jain said. So far in 2020, draft documents for 20 NFOs have been submitted with the Securities and Exchange Board of India (Sebi). Of these, some of the schemes have already been launched after getting regulatory clearances. Of these 20 NFOs request filed with Sebi, a large chunk of these offerings are passive funds. Patel said passive funds have slowly gaining traction as such funds do not need minimum assets under management (AUM) and investor count, Patel said. Themes like exchange traded funds (ETFs) and environment social and governance (ESG) attracted of mutual fund companies. Besides, many mutual fund companies filed applications for index funds. Given the defined Sebi categories most fund companies are only looking to fill gaps in their active fund bouquets if any. "On the passive side there has been a fair bit of interest with a number of offerings around broader Index funds and ETFs as well as some thematic /sectoral ETFs. Another theme that is seeing interest is the ESG theme, which has been in the spotlight globally for a while now," Belapurkar said. "Fund companies are beefing up their product bouquets to be ready for the future where passive funds and ESG funds will play an increasingly important role in investor portfolios," he added. Jain said new fund offer shall increase once economic and financial stability is restored in the system. Nippon India MF, SBI MF, Aditya Birla Sunlife MF, DSP MF, BNP Paribas MF, UTI MF, Tata MF and HSBC MF are the fund houses that approached Sebi with the offer documents for NFOs. Nippon India Mutual Fund spokesperson said new schemes have been filed to complete our ETF portfolio suite. SP DRR

Lockdown, weak investor sentiment impact mutual funds' NFO

A recent report by Axis AMC shed light on the burgeoning Indian mutual fund industry. Since March 2021, the MF industry has grown at a CAGR (compounded annual growth rate) of 23.65%, touching an AUM (asset under management) of Rs 67.25 lakh crore in October 2024. <keyword id="20300870" type="General" weightage="20" keywordseo="Equity-Mutual-Funds" source="keywords">Equity mutual funds</keyword>, which garnered Rs 41,886.69 crore during the month, saw a 58.96% YoY growth. The biggest contributor to the equity segment was sectoral funds, which captured 29.3% of net equity sales in October 2024. In all, they brought in Rs 12,278.78 crore during October 2024. The AUM of <keyword id="20890471" type="General" weightage="20" keywordseo="Hybrid-Funds" source="keywords">hybrid funds</keyword> also stood at Rs 9.24 lakh crore during the month, registering an annual growth of 47.8% and inflows worth Rs 16,863.30 crore during October 2024. Amidst this, the arbitrage funds led in net sales, capturing 3.61% of their AUM with monthly inflows worth Rs 7,181.70 crores. There and more people are entering the Indian markets, as is evident in the growing SIP corpus (Systematic Investment Plans), which saw contributions worth Rs 25,323 crore in October 2024, a 54.7% year-over-year growth. In October 2024, about 63,69,919 new SIPs were registered, taking the number of SIP accounts to a record high of 10,12,34,212 The growth in equity investments was largely led by retail investors and HNIs (high-net-worth individuals). Since March 2021, the retail segment in mutual funds has seen a 31.2% CAGR, while banks and foreign investors have recorded a CAGR of 31.8% during the same period. Corporations were the biggest contributors to debt mutual funds. Notably, the AUM of debt funds grew 14.8% over the previous year to stand at Rs 10,65,037 crore as of October 2024. The category saw net sales worth Rs 47,699 crore last month. Also testimony to the growing interest of investors in mutual funds were the figures of <keyword id="23958398" type="General" weightage="20" keywordseo="Passive-Mutual-Funds" source="keywords">passive mutual funds</keyword>, which recorded net sales worth Rs 8,025 crore during the month. Out of this, just index funds observed net sales of Rs 7,931 crore in the previous month. AUM from the top 30 Indian cities grew at 22.6% CAGR, whereas other cities grew at 27.8% CAGR since March 2021. FY25 also seemed to be the year where NFOs received an enthusiastic response from investors. So far, a total of 124 NFO schemes have managed to collect a total of over Rs 77,932 crore.

Mutual funds in spotlight: Industry grew at 23.65% CAGR since March 2021

The Indian mutual fund industry continued to register strong growth in fund inflows during May 2024, as monthly data released by the Association of Mutual Funds in India (AMFI) today showed. This was a record month for equity mutual funds, with the category’s inflows jumping up by a whopping 83% since April. The mutual fund industry’s AUM (net assets under management) stood at Rs 58.91 lakh crore, rising marginally from Rs 57.25 lakh crore in April 2024. With total inflows worth Rs 42,294.99 crore, debt mutual funds continued to receive more investor attention than their equity counterparts during the month, which saw inflows of around Rs 34,697 crore. Notably, this is the 39th consecutive month where <keyword id="19925781" type="General" weightage="100" keywordseo="equities" source="keywords">equities</keyword> have seen positive inflows. Hybrid funds also ended their month in green, garnering Rs 17,990 crore in May. <cmsannotation type="cmsannotation" annotationid="Expectations around election results behind the surge, say experts" comment="subhead" text="Expectations around election results behind the surge, say experts">Expectations around election results behind the surge, say experts</cmsannotation> Expectations around the continuation of a stable regime led by the ruling party BJP during the election month of May could have been the major driver behind the record inflows into the MFs. Venkat Chalasani, Chief Executive, AMFI, said "Political stability creates an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments. Global growth is sustaining its momentum in 2024 and is likely to remain resilient, supported by a rebound in global trade. The overall outlook for Indian capital markets remains positive, supported by strong fundamentals, and favourable demographics. However, it remains to be seen how the lesser-than-expected seats for the Narendra Modi-led BJP have impacted the MF sector in the month of June. However, a continuation of the NDA regime is likely to have contributed to the improved market sentiments as evident with surging markets post the counting day, and could reflect into the MF activity as well. "Although coalition governments face challenges in consensus-building and decision-making, infrastructure and nation-first initiatives introduced earlier are likely to receive support from allies across the political spectrum. The forthcoming 100-day action plan and a comprehensive Union Budget will provide a clearer picture of the government's priorities for the Indian economy," says Gopal Kavalireddi, Vice President of Research at FYERS. <cmsannotation type="cmsannotation" annotationid="Equity inflows mark a record high" comment="subhead" text="Equity inflows mark a record high"><keyword id="421833" type="General" weightage="20" keywordseo="Equity-inflows" source="Orion">Equity inflows</keyword> mark a record high</cmsannotation> Equity inflows remained positive for the 39th consecutive month, starting from March 2021. Growth Equity fund inflows for the month of May was ₹ 34,697, pushing the total inflows into mutual funds to Rs.1.1 lakh crore for the month. A total of 9 schemes were launched last month in the category of open-ended schemes, raising a total of ₹ 10,140 crores, said AMFI. Kavalireddi says, “Despite potential high volatility from FII selling, general elections, GDP data, and other minor events in May, investors remained steadfast in their pursuit of returns on the back of the Indian growth narrative." In a clear indication of investors looking to diversify their investments, multi-cap funds garnered Rs 2,644.88 crore. Large-cap funds amassed Rs 663 crore, while mid-cap funds made Rs 2,605.70 crore. On the other hand, small-cap funds have seemingly begun gaining their lost sheen, managing to take in Rs 2,724.67 crores during the month. Flexi-cap funds led the troupe, with inflows worth Rs 3,155 crore. "Equity flows have been largely driven by expectations of the election outcome, coupled with some NFO (new fund offer) launches, which perhaps led to a much higher than expected quantum in the equity category. On the equity side, investors possibly wanted to position their portfolios in advance to avoid any kind of gap risk as election exit polls were coming out over the weekend, which could have led to a spike in equity allocations towards the end of the month," Anand Vardarajan, Head Business Head – Banking, Institutional Clients, Alternate Products and Product Strategy, Tata Asset Management. Amidst hybrid funds, the majority came from arbitrage funds, which saw inflows worth Rs 12,758.12 crores in May. Notably, index funds and other ETFs collectively raked in Rs. 15,180 crore. <cmsannotation type="cmsannotation" annotationid="SIPs going strong" comment="subhead" text="SIPs going strong"><keyword id="159805" type="General" weightage="20" keywordseo="SIPs" source="Orion">SIPs</keyword> going strong</cmsannotation> Systematic investment plan (SIP) contributions continued to breach their record highs on a month-on-month basis. SIP contributions rose marginally to an all-time high of Rs 20.90 crore last month, as opposed to Rs 20.37 crore in April. SIP accounts also jumped to their highest figure in May, standing at 8,75,89,485. During the month, around 49,74,400 new SIPs were registered. As per <keyword id="1029773" type="General" weightage="20" keywordseo="AMFI-data" source="Orion">AMFI data</keyword>, SIP plans accounted for 19% of the net flows during the month. In the debt category, liquid funds saw the most influx, worth Rs 25,873.38 crore. Sectoral or thematic funds amassed Rs 19,213.43 crore during the month, trumping inflows by small-cap funds, which stood at Rs 2,724.67 crore, by a significant margin. Inflows into thematic funds were largely bolstered by the NFO of HDFC Manufacturing Fund, which drew Rs. 9,563 crores. Although Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, has a word of caution for all those flocking to sectoral funds, “investors must be cautious while investing in such funds. They are cyclical, and hence investors should have the necessary skills or the right set of advice in place to track sector dynamics and time their entry and exit from these funds. These are high-risk return propositions, and hence investors must take a judicious call while investing in them.” <cmsannotation type="cmsannotation" annotationid="Gold continues to shine" comment="subhead" text="Gold continues to shine">Gold continues to shine</cmsannotation> The quantum of net flows in <keyword id="20050894" type="General" weightage="20" keywordseo="gold-ETFs" source="keywords">gold ETFs</keyword> saw a sharp uptick to Rs 827 crore in May 2024, from a net outflow of Rs 396 crore in April. Srivastava further notes that the enduring <keyword id="19950651" type="General" weightage="20" keywordseo="global-inflation" source="keywords">global inflation</keyword>, which remains above central banks' comfort levels, and the persistent uncertainty surrounding <keyword id="19962135" type="General" weightage="20" keywordseo="interest-rate-cuts" source="keywords">interest rate cuts</keyword> have bolstered gold's appeal as a haven and as a hedge against inflation, thereby attracting more investors. “Also, over the years, gold has gained prominence as an effective diversifier, prompting many investors to include gold ETFs in their portfolios. <keyword id="19910265" type="General" weightage="20" keywordseo="gold-prices" source="keywords">Gold prices</keyword> also saw some corrections in May, which spurred buying from investors. In INR terms, gold has done fairly well over the last year but dwarfs in comparison to how equities have fared. Given this backdrop, flows in the gold ETF category have been somewhat patchy relative to the equity asset class," he continued. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

Election fever? Equities and SIP inflows mark record highs in May, per AMFI data

<ul><li>Indians investors will now be able to participate in the emerging blockchain industry growing worldwide through this mutual fund.</li><li>Invesco CoinShares Global Blockchain ETF Fund of Fund is India’s first mutual fund scheme to offer investment in the blockchain ecosystem.</li><li>These are details you need to know about the new fund offer and steps on how to invest.</li></ul>For those who are nervous about investing in a <keyword id="6357017" type="General" weightage="20" keywordseo="cryptocurrency" source="Orion">cryptocurrency</keyword> but believe that large businesses can benefit from the blockchain technology, here is a chance to invest in such companies. The new fund offer opens on December 8. Recently, financial market regulator Securities and Exchange Board of India (SEBI) gave a nod to Invesco Mutual Fund’s Invesco CoinShares Global Blockchain ETF Fund of Fund (FoF). This fund is India’s first mutual fund scheme that invests in global companies in the blockchain ecosystem. The fund is investing in a global fund that invests in upto 50 companies that are into the blockchain ecosystem. Some of this companies include: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Industry description </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blockchain technology solution providers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IBM, Oracle </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cypocurrent exchange platform </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coinbase, CME Group </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Blockchain payment systems </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Square </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mining hardware company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">AMD </td></tr></tbody><tbody></tbody><tbody></tbody></table> Interestingly, 15 Indian banks including ICICI Bank, Axis Bank, Bajaj Allianz, SBI, Kotak Mahindra Bank have reportedly planned to adopt blockchain technology to start <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/15-banks-to-start-new-trade-finance-system-using-blockchain-tech/articleshow/83545043.cms">a new trade finance system</a>. Reports say the new system will verify data using invoices on goods and services tax (GST) and e-way bills which will quicken transactions and also eliminate risk of frauds. What is Invesco CoinShares Global Blockchain ETF Fund of Fund ? Invesco CoinShares Global Blockchain is a global exchange traded fund (ETF) that invests in a portfolio of companies that are involved in the blockchain ecosystem directly or indirectly. The Indian fund will invest in the underlying global fund and try to duplicate the return. The fund has delivered 96% in the last one year. Here is how to invest in <keyword id="12539690" type="General" weightage="20" keywordseo="invesco-coinshares-global-blockchain-etf-fof" source="Orion">Invesco CoinShares Global Blockchain ETF FoF</keyword> and important details related to the fund. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fund opening dates </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NFO opens on November 24 and closes on December 8 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum lump sum investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum SIP investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹500 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Minimum quarterly investment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,500 </td></tr></tbody><tbody></tbody><tbody></tbody></table> Way to invest in this global fund is just like investing in a mutual fund. There are a list of new age fintech startups like Groww, Upstox, Zerodha Coin wherein you can start your investment easily in a few clicks. Just one thing mandatory for any investment in financial markets is having a demat account. If you do not have an account with any fintech mobile application, then you can directly create an account with the mutual fund house whose fund you wish to invest in. In this case, you can make an account with <a href="https://invescomutualfund.com/">Invesco MF</a>. <ul><li>Go the concerned MF website and click on ‘invest now’ or ‘invest online’</li><li>Complete you eKYC by submitting your PAN and Aadhaar details</li><li>Mention the amount you want to invest and choose frequency of investment</li><li>You can also give online instructions to your bank to transfer the decided amount to the fund house in case of SIP. </li></ul>SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/a-big-vc-backing-oyo-sharechat-and-epic-games-is-investing-in-cryptocurrency-and-he-is-not-alone/articleshow/87710161.cms">The partner at a VC firm backing OYO, ShareChat and Epic Games explains why it’s betting big money on crypto ⁠— and he’s not alone</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/here-are-the-five-ipos-that-doubled-investors-money-on-listing-in-2021/slidelist/87713646.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/here-are-the-five-ipos-that-doubled-investors-money-on-listing-in-2021/slidelist/87713646.cms">Sigachi broke Paras Defence’s record⁠—these are the five IPOs that doubled investors’ money on listing in 2021</a>

Now you can invest in global blockchain companies through this mutual fund ⁠— here's how to do it

<ul><li>Currently, there are 44 registered <keyword id="6354820" type="General" weightage="20" keywordseo="mutual-fund" source="Orion">mutual fund</keyword> companies in India offering a variety of schemes.</li><li>Equity funds are risky investment vehicles meant for long term investment.</li><li>Unlike equity funds, debt funds are for short term goals that offer steady returns.</li></ul>Mutual funds are by now a very popular investment vehicle, but many of us still don’t know what it is and what kind of mutual funds are available to invest in. Firstly, a mutual fund (MF) is a pool of money collected from many investors, which later gets invested in buying stocks, bonds etc., by a professional fund manager on behalf of investors. The fund manager aims to invest in quality financial instruments and make the most out of these investments. The fund manager attempts to create higher wealth over that investment base. Currently, there are 44 registered mutual fund companies in India offering a variety of schemes to satisfy the dynamic needs of diverse investors. Each MF scheme has a different objective towards investment. So, an investor needs to pick the mutual fund that suits his/her needs and risk profile. Let’s get to know some of the common type of mutual funds: Equity One of the most popular types of mutual fund is equity. <keyword id="6361918" type="General" weightage="20" keywordseo="equity-mutual-funds" source="Orion">Equity mutual funds</keyword> invest money in company’s shares and their returns depend on how the stock market performs. Such funds are generally considered more risky as the equity market happens to be very volatile. Now equity funds can be classified into types of schemes such as large cap, mid-cap, small cap, flexi cap and so on. Invest in equity schemes only if you have a long term investment horizon and high risk appetite as equities beats inflation over the long term like 7-10 years. The main objective of these funds is to achieve long-term capital growth. Equity funds invest at least 65% of their corpus in equity and equity-related securities. These funds may invest in a wide range of industries or focus on one or more sectors. Risk in such mutual funds are associated with a company the fund has invested in. Suppose if a stock of a company, the underlying fund has invested in, declines. The decline will reflect your returns as well. Also, remember, it is not the only company the fund has invested in, the other companies in the fund can offset the losses. Sector specific funds These are mutual funds that invest in a specific sector. These can be sectors like technology, infrastructure, banking, mining etc., or specific segments like mid-cap, small cap or large cap segments. Index funds An index fund is a mutual fund that imitates the portfolio of an index. Such funds promise to deliver returns same as the index they are mirroring. For instance, if a fund is attached to the BSE Sensex, then your fund returns will be almost equal to that index. An index mutual fund follows the same strategy as the index it is based on. Tax saving funds Tax saving funds, typically known as equity-linked saving schemes (ELSS) is another type of equity scheme. Such funds offer tax benefits to investors. The investments in the scheme are eligible for tax deduction under section 80C of the Income Tax Act, 1961. Solution-oriented schemes Such schemes are for specific goals like collecting funds for children’s education or marriage, or for retirement. They come with a lock-in period of at least five years. Debt Debt funds invest a majority of the money in fixed income instruments, such as corporate and government bonds, corporate debt securities, and money market instruments etc., that offer capital appreciation. Debt funds are also referred to as fixed income funds. Debt funds are comparatively safer than equity funds. Unlike equity funds, debt funds are meant to fulfill your short-term goals. Also, debt funds are more beneficial than fixed deposits and recurring deposits where you have to stay invested for a pre-committed period or have to pay a fine in case of early withdrawal. Low cost structure, relatively stable returns and relatively high liquidity are some other benefits of investing in debt funds. It is usually recommended to hold a percentage of your total investment in debt for steady returns in not-so-risky funds. Liquid fund is among popular debt funds to invest in the short term. There are other schemes as well like short duration funds, ultrashort duration funds, gilt funds, money market funds and so on. Mutual fund type based on duration Open-ended If you choose to invest in an open ended mutual fund scheme then you can withdraw anytime from these funds as they do not have a fixed maturity period. Closed-ended In closed-ended mutual funds, your investment is locked in for a specified period of time with a fixed maturity date. An investor can enter these types of mutual funds only during the new fund offer (NFO) period and redeem on the date of maturity which is typically 3-7 years. Besides, closed-ended schemes are listed on stock exchanges and one can attempt to sell them before maturity, however they generally trade at a discount. An NFO is when a fund house launches a new mutual fund scheme to raise capital to operate a fund. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/infosys-cadila-healthcare-adani-enterprises-and-other-top-stocks-to-watch-out-for-on-august-23/slidelist/85551667.cms">Infosys, Cadila Healthcare, Adani Enterprises and other top stocks to watch out for on August 23</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/finance-ministry-summons-infosys-ceo-over-glitches-in-it-e-filing-portal/articleshow/85533986.cms">Finance Ministry summons Infosys CEO over glitches in IT e-filing portal</a>

Looking to invest in mutual funds? Here are the different schemes you should know of

<ul><li>Since its inception on March 28, 2005, Nippon India <keyword id="6316206" type="General" weightage="20" keywordseo="multi-cap-fund" source="Orion">Multi Cap Fund</keyword> has outperformed most peers and market benchmark Nifty500 with returns of 15.15% CAGR.</li><li>₹10,000 invested in the fund every month since inception for 17 years would have grown to ₹89.81 lakh now.</li><li>During these pandemic years the fund invested in stressed and out-of-favour sectors that are generally avoided by others.</li></ul>Over the last 17 years, Nippon India Multi Cap Fund has survived the worst of the markets – including the US housing bubble, global financial crisis, demonetisation, US election of Donald Trump, Covid-19 outbreak or the Russia-Ukraine war. The Fund has seen it all and still managed to deliver the highest returns in the multi-cap category. Since its inception in March 2005, the fund has outperformed most peers and market benchmark Nifty500 with returns of 15.15% CAGR. In fact ₹10,000 invested in the fund every month since inception for 17 years would have grown to ₹89.81 lakh now. <div type="image" title="nippon india" height="900" width="1200" msid="93914085" hostid="261" sizebytes="40940"></div> Sailesh Raj Bhan, fund manager of Nippon India Multi Cap Fund believes in the mantra of value buying with a time horizon of three years. “Our attempt is to create that kind of a portfolio where you’re looking three years ahead and finding reasonable value in the business today, and you feel growth will accelerate from where we stand today,” said Bhan in an interaction with Business Insider India. In the last three years, the fund has given exemplary returns of 28.23% CAGR – higher than 23.60% CAGR returns by benchmark Nifty500 index. During these pandemic years the fund invested in stressed and out-of-favour sectors that are generally avoided by others. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top 5 performing schemes in multi-cap space </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% returns in last 1 year </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon India Multi Cap Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.73% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Ind Growth 4 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Quant Active Fund </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.05% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nippon India Capital Builder IV B </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.02% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Sundaram Multi Cap </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.59% </td></tr></tbody></table>(Source: Value Research, Note: Above are all direct plan schemes) “What has worked for us is our investment in engineering, manufacturing and in hotels, which has contributed significantly to the fund. The key idea was to choose sectors which are out of favour and offer disproportionate value. And if you remember, 12-18 months back, people did not want to invest in hotels as the narrative was hotels will not come back,” said Bhan Cut to almost two years later, hotels are back in business with a huge pickup in travel and tourism, contrary to most expectations. In fact, <a href="https://www.businessinsider.in/stock-market/news/hotels-make-for-a-happy-home-for-investors-stocks-return-over-50-in-less-than-six-months/articleshow/93762736.cms">hotel company stocks are among multibaggers</a>, which has made fortunes for investors. In April-June 2022, there has been a 244% increase in demand for hotels across six major cities — Delhi, Bengaluru, Chennai, Goa, Hyderabad and Mumbai, according to Hotel Momentum India Report 2022. Talking about Nippon India Multi Cap Fund, Dhirendra Kumar, CEO of Value Research in a conversation with Business Insider India said, “It is a decent fund, nothing awkward about it. A fund which has survived this long and is not doing poorly in bad markets and doing okay in a rising market, you do the job.” Staying steadfastly mid-cap amidst industry churn In November 2020, SEBI introduced flexi cap and differentiated between multi cap and flexi cap because many mutual fund schemes were not true to their label and would invest predominantly outside of their defined spheres. The differentiation is this – flexi <keyword id="6357979" type="General" weightage="20" keywordseo="mutual-funds" source="Orion">mutual funds</keyword> are allowed to choose the ratio between large, mid and small caps investments as they like. On the other hand, multi-cap funds are mandated to keep a minimum threshold of 25% investments in each of the three fund categories – large, mid and small cap. The remaining 25% can be invested at the fund manager’s discretion. This led to many funds converting from multi cap to flexi cap, freeing them up to choose a majority of large-cap stocks and avoid risky investments. Now, the tide is turning again. In the last one year, several mutual fund companies have come out with multi-cap new fund offers (NFOs) to fill their portfolio. “After SEBI’s categorisation of flexi cap, every multi-cap fund changed their erstwhile multi-cap fund to flexi cap. And now, fund houses are filling up multi cap space as NFO gets MF more money than otherwise,” said Kumar of Value Research. Amidst all this churn, Nippon India Multi Cap Fund steadfastly remained in the multi-cap category. It continued to find value in small caps, constantly looking for companies that are sector heads and offering an attractive valuation. “Our end objective is to capture the market plus return over the medium term. Now, most investors find it difficult to navigate from capitalisation in large cap, mid cap and small cap stocks. We intend to choose the kind of companies that can ride through market cycles – so even in a small cap, we look at a business which has to be a top 1-2 company in that sector or category. For example, when we were investing in hotels, the leader was from a small cap,” said Bhan. ‘Multi cap is an all season fund’ Bhan says multi cap is an all season fund because of its equal exposure to the three categories – large cap, mid cap and small cap, and the flexibility to invest the rest in large-cap space generally. Value Research’s Kumar believes multi-cap funds are a desirable category for investment as it has the necessary exposure to mid and small caps. “Everybody thinks flexi cap does almost the same thing as multi cap but not really. As flexi caps are becoming large, they are unable to have a meaningful position in mid caps and small caps,” Kumar said. “And multi cap, because it is mandated to have a minimum of 25% in small cap and mid cap, gives you a real or rather enforced diversification. Otherwise erstwhile multicap, which are now called flexi caps, are now dominantly becoming large caps as they get bigger,” said Kumar. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/wipro-tech-mahindra-lead-rout-in-it-stocks-as-recession-risks-loom/articleshow/93876535.cms">Wipro, Tech Mahindra lead rout in IT stocks as recession risks loom</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/hcl-tech-beats-wipro-to-become-indias-third-largest-it-company/articleshow/93879712.cms">HCL Tech beats Wipro to become India’s third largest IT company</a>

This multi-cap fund has survived the worst market cycles and yet delivered the highest returns

New Delhi, Dec 4 () The government's decision to launch an umbrella debt exchange-traded fund will provide a better opportunity to retail investors for participation in quality public sector bonds at an affordable cost, experts said on Wednesday.
They further said the move would also help in deepening and widening the participation in the Indian corporate bond market.
The Union Cabinet has approved the launch of exchange traded fund (ETF) for bonds to create an additional source of funding for Central Public Sector Enterprises (CPSEs) and state-owned financial institutions.
The New Fund Offer (NFO) of this ETF is expected be to launched during December itself. 
Bharat Bond ETF would be the first corporate bond ETF in the country.
 "It's a historic occasion for retail investors as also for the Indian corporate bond market, for retail investors as they would now be able to invest in an altogether new liquid avenue in quality Public sector Bonds, through the very low-cost ETF structure," N S Venkatesh, Chief Executive at AMFI said on the Cabinet approval to bond ETFs.
 "And for the economy, as the country's first exchange-traded bonds belonging to quality public sector enterprises bundled in a liquid low-cost ETF structure, would help in deepening and widening the participation in the Indian corporate bond market," he added.
ETF will be a basket of bonds issued by state firms or any government organisation, and will be tradable on exchange. The unit size will be of Rs 1,000, which will allow small investors to invest.
Edelweiss Asset Management Company (AMC), which will manage the government's debt ETF, said Bharat Bond ETF will be a diversified basket of public sector company bonds aimed at providing easy access for retail investors to invest in these bonds and bringing liquidity in the corporate bond market. 
"It will also help these companies with new source of funding. Initially, the ETF will have two maturities -- 3 years and 10 years -- and will invest in bonds of similar maturities," Edelweiss AMC CEO Radhika Gupta said.
 Rating agency Icra VP and Sector Head- Financial Sector Ratings Anil Gupta said lower ticket size of bond ETF is likely to provide better opportunity to retail investors for participation in corporate debt market with lowest credit risk as the underlying investments are proposed to be in 'AAA' rated PSU debt securities.
"As these securities are proposed to be listed on stock exchanges with involvement of market markers, this will also provide liquidity to the investors. A three-year debt ETF is comparable with a three-year fixed maturity plans (FMPs), however unlike FMPs, which have limited secondary market liquidity, ETFs are expected to have secondary market liquidity," he added.
 Gupta further said investors may however be mindful of the risk which these ETFs will have because of interest rate movements, as during an increasing interest rate cycle, the market price of the ETF units will decline. 
 Interest rate risk will however be lower in shorter tenure ETFs, and if held till maturity, the interest rate risk will also be mitigated as the ETFs will be redeemed at face value on maturity.
"Bharat Bond ETF from Edelweiss AMC offers greater opportunities to invest in debt investments at an affordable cost. This is a positive development as far as Indian debt market is concerned," said Tarun Birani, founder and CEO of TBNG Capital Advisors. 
Moreover, of the total mutual fund assets under management of Rs 25 lakh crore, share of MF debt is about Rs 11 lakh crore and this shows the potential for this opportunity, he added. SP

 
 
 
 
 
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