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Kotak Flexicap Fund: Too big to be flexible?

Debt MFs catch investor fancy as their returns go up to 23%

ETFs performed better than actively-managed equity mutual funds in FY23

<ul><li>White Oak Capital’s wholly owned subsidiary GPL Finance and Investments had acquired YES Asset Management Company last year.</li><li>On Thursday, the subsidiary received the nod from regulator <keyword id="35210" type="General" weightage="20" keywordseo="sebi" source="Orion">SEBI</keyword> to become the sponsor of YES MF.</li><li>With this, India will now have four new fund houses coming up soon -- Groww, Zerodha, Samco MF and White Oak Capital.</li></ul>Wealth management firm White Oak Capital has received approval from India’s market regulator to get started with the <keyword id="598742" type="General" weightage="20" keywordseo="mutual-fund-business" source="Orion">mutual fund business</keyword> after it acquired YES Mutual Fund (MF) last year. In September 2020, the investment management firm had bought YES MF from YES Bank, which was struggling with bad loans and raising fresh capital. The transaction will be completed in the next few weeks. GPL Finance and Investments, White Oak Capital’s wholly owned subsidiary, received Securities and Exchange Board of India’s nod to become the sponsor to the newly owned AMC. Sponsor can be seen as the promoter of the associate company. YES MF is the smallest amongst the 44 fund houses in the ₹36 trillion industry with ₹81.45 crore average assets under management (AUM) as of June quarter, according to the Association of Mutual Funds in India. Commenting on the development, <keyword id="1603586" type="General" weightage="20" keywordseo="prashant-khemka" source="Orion">Prashant Khemka</keyword>, founder at White Oak Capital said, “We have instituted a performance-first culture at our firm, earning the confidence of investors globally who have entrusted us with assets of over ₹40,000 crores in the past four years. We are excited about offering our investment expertise to retail investors across the country.” Khemka is the former chief investment officer (CIO) and lead portfolio manager at Goldman Sachs Asset Management. Aashish P Somaiyaa, who will be taking over as chief executive officer of the AMC said, “We continue to build a seasoned team of industry professionals to provide best in class investment products to retail investors. We will look forward to covering India well beyond the metro cities including B30 locations, to achieve higher inclusivity through omni-channel presence across physical, virtual and digital channels.” B30 cities include tier II and tier III cities. Last week, Samco MF, an online discount broker, announced its entry into the mutual fund business. With this, India will now have four new fund houses coming up soon -- Groww, Zerodha, Samco MF and White Oak Capital. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/ipo-bound-pine-labs-raises-another-100-million/articleshow/86262592.cms">IPO-bound Pine Labs raises another $100 million</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/indias-bad-bank-get-government-nod-green-lights-narcl-with-30600-crore-guarantee/articleshow/86262155.cms">India's bad bank get government nod — green lights NARCL with ₹30,600 crore guarantee</a>

Wealth management firm White Oak Capital gets SEBI’s nod to enter mutual fund business

Mutual fund industry to see many mergers in next couple of years, says Aditya Birla Sun Life AMC’s CEO

New Delhi, Jan 31 () Mutual funds investors will not be able to make fresh investment or sell their units on the Budget day because subscription and redemption are closed on Saturdays and Sundays, industry officials said.
 Mutual funds subscriptions and redemptions will not be permitted because all the fund houses in their scheme information documents have declared Saturday and Sunday as "non-business day".
 Consequently, mutual funds investors will not be able to participate like others participants in stock markets.
 "Tomorrow, stock exchanges are open but mutual funds are closed for subscription and redemptions," said Omkeshwar Singh, head of mutual fund distribution business at Samco.
 Investors through equity and derivatives can participate but investors through mutual funds will not be able to participate, he added.
 In case of any change in non business day, fund houses need to issue notices to investors and publish advertisements in leading newspapers which is a lengthy process.
 Stock markets will be open for normal trading on February 1, Saturday, when the Union Budget will be presented by Finance Minister Nirmala Sitharaman.
 Trading would be conducted during normal hours from 9 am to 3.30 pm.
 According to markets sources, the decision has been taken following requests made in this regard by market participants as Budget contains several market-moving announcements.
 In 2015, stock exchanges were open for trading on February 28, Saturday, when then Finance Minister Arun Jaitley had presented the Budget. SP ANU
ANU

No fresh investment, redemption for mutual fund investors on Budget day

Ever since Donald Trump won the 2024 US presidential elections, bitcoin has been surging, going up over 40% in the last two weeks. Recently, the cryptocurrency soared past $97,000, having risen 8.32% in just the last 7 days, and is currently trading at $96,906.09. The overall crypto market is also buoyant, with the crypto volume jumping 10.06% over the past 24 hours to touch $198.83 billion. The markets are enthused about Bitcoin's prospects going ahead, given that Trump has hinted towards establishing a dedicated role in the White House for deliberating crypto policies. Trump has been vocally pro-crypto and had promised, during his presidential campaign, to scale back <keyword id="24085738" type="General" weightage="20" keywordseo="crypto-regulations" source="keywords">crypto regulations</keyword> and fire SEC chair Gary Gensler, who had initiated a crackdown on digital assets in the US. The crypto lobby in the US has been advocating for crypto-friendly SECs and access to banks. In a bid to do so, crypto companies have pumped in over $119 million to support pro-crypto candidates. Says Edul Patel, co-founder and CEO of Mudrex, "Market sentiment grew stronger from Bloomberg's report of Trump’s plan to establish a dedicated White House role for crypto policy. The anticipation of faster regulatory clarity coupled with BlackRock’s Bitcoin ETF options projecting a $176k price target by 2026 has driven BTC’s price to the $95K milestone and beyond." The ongoing rally is not restricted to just bitcoin but also extended to Solana and XRP, which gained 10.85% and 59.02%, respectively, over the last 7 days. But does this mean that good times are coming for <keyword id="19991358" type="General" weightage="20" keywordseo="Indian-markets" source="keywords">Indian markets</keyword> as well? Apurva Sheth, Head of Market Perspectives &amp; Research, SAMCO Securities, notes that bitcoin is a proxy for risk-taking in the markets. Bitcoin moving up means the risk appetite of investors is rising. Conversely, if it falls, then investors prefer safety." Both Nifty and Sensex have lost over 5% each over the last month. FIIs (<keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">foreign institutional investors</keyword>) have also been scrambling out of Indian markets, having withdrawn Rs 1,14,445.89 crores during October 2024 and offloading Rs 34,348.30 crore so far in November. During trade today, Nifty and Sensex remained in red, with Nifty down by 0.74% and Sensex down by 0.6%. DIIs (domestic institutional investors) have been trying to keep the market afloat in both October and November, pumping in Rs 31,636.77 crore in Indian markets in November so far. Last month, DIIs infused Rs 1,07,254.68 crore in the Indian markets. According to an NSE report, by the end of the previous quarter, FPIs holding in NSE-listed companies stood at 36.3%, despite the seventh consecutive quarterly decline. Previously, FIIs holding in listed companies had hit a record high of 39.9% in December 2021. In contrast, DIIs are increasingly making headway into the Indian markets. Active Domestic Mutual Funds (DMFs) have been increasing their investments in the NSE-listed companies. Their ownership in these companies has risen from 12.4% in December 2021 to 15.7% as of September 30, 2024. Banks and insurance companies have also expanded their market share. Their ownership in NSE-listed companies has grown from 8.8% three years ago to 11% as of pr quarter.

The Bitcoin rally does not seem to be stopping anytime soon! Does this spell good news for Indian markets?

The union budget for 2024 introduced a slew of changes that will directly impact your pocket in the days to come. FM Sitharaman brought about significant changes in how your capital gains were taxed. Take a look at how this will impact your pocket. First off, what are capital gains? Simply put, any gains or profits you make when you sell a capital asset like your properties, investments in stock or mutual funds and more is counted as capital gains. What sets capital assets aside is their ability to generate monetary value over a long period. Depending on the time period they are held for before they are sold, <keyword id="20584761" type="General" weightage="20" keywordseo="long-term-capital-gains" source="keywords">long-term capital gains</keyword> (LTCG) or <keyword id="20584760" type="General" weightage="20" keywordseo="short-term-capital-gains" source="keywords">short-term capital gains</keyword> (STCG) is applicable. So, what has changed? In one sharp move, <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> pushed up the long-term <keyword id="20301441" type="General" weightage="100" keywordseo="capital-gains-tax" source="keywords">capital gains tax</keyword> from 10% previously to 12.5% now. Moreover, <keyword id="22142879" type="General" weightage="20" keywordseo="indexation-benefit" source="keywords">indexation benefit</keyword>, which reduced the total tax outgo from the investor's hands, also went away with these proposed changes. As for short-term capital gains tax, it was decreased to 15% from its previous rate of 20%. However, to ease the pain, the maximum exemption amount for long-term capital gains in a single year was increased from Rs 1,00,000 previously, to Rs 1,25,000 now. All listed securities will be considered long-term capital assets (and hence, LTCG will be levied) if they are held for a period of 12 months. For unlisted securities and other immovable properties, LTCG will be applicable post 24 months of holding them. Bonds, debentures and gold will have also have a holding period of 24 months, from the earlier duration of 36 months, in order to be eligible for long-term capital gains tax. What does indexation mean? Indexation allowed <keyword id="19900618" type="General" weightage="20" keywordseo="investors" source="keywords">investors</keyword> to account for inflation, by adding the same to their initial purchase price. This would result in a higher purchase price, significantly lowering the overall gains. But now, capital gains tax will be calculated at the actual purchase price (ouch!) with no scope to factor for inflation, which would mean a higher tax outflow from the investor's pockets. This benefit has been done away with for real estate and gold. Under indexation benefit, it is not your initial purchase, or acquisition price that is taken into consideration, but rather your indexed cost of acquisition that comes to play. This is calculated using the CII of the sale year and the purchase year. This helps in adjusting the purchase cost of your property for inflation when you are selling it. The government calculates and notifies the public of the CII (cost inflation index) every year. For instance, Aditya's father purchased a property worth Rs 40,00,000 in 2009 (FY2009-10). In 2004 (FY2024-25), he decides to sell this for around a crore. How will his tax liability be calculated? First, lets consider that he had indexation benefit. By that, his indexed cost of acquisition (there's a long formula to this) would be Rs 98,10,810, making his long-term gains at Rs 1,89,189. So, 20% of this would come down to Rs 37,837. But lets also consider if he did not have this indexation benefit. While indexation benefits have been done away with starting July 23rd, 2024, lets assume this rule came into effect at the very start of FY25, or 1st April, 2024. This would mean your total capital gain would be 12.5% of Rs 60,00,000, or a staggering Rs 7,50,000. What are the experts saying? Nilesh Sharma - President &amp; Executive Director, SAMCO Securities sees this as a double whammy which leaves much to be desired on the investors front. "It seems govt wants share in investors’ profit. At a time when the equity indices are at an all-time high, the government has tried to take a share out of the growth and the profits earned by the investors by increasing both the STT rates on derivatives and an increase in STCG and LTCG", he notes "The removal of indexation benefit for LTCG will also impact the real estate industry and will slow down the resale of residential flats /lands. There is a fear that it may also increase the proportion of cash transaction in real estate deals, which will be again be counterproductive. The government has not announced any major changes for the individual tax payers except a slight change in the tax slabs and a minor increase in the standard deduction. This too, is however applicable only in the new tax regime, leaving nothing for the tax payers who have opted for the old tax regime", continued Sharma. Palka Arora Chopra, Director, Master Capital Services Ltd notes that the removal of indexation benefits might negatively impact investor returns, leading to a short-term bearish outlook for the sector. "While the 25% increase in the Long-Term Capital Gains (LTCG) tax is manageable and not likely to deter investors significantly, the increase in short-term capital gains (STCG) tax from 15% to 20% could have a more pronounced negative impact in the medium term", she continued.

Decoding capital gains taxes: What FM Nirmala took from your pocket, what she gave you in Budget 2024

New Delhi, Nov 17 () Mutual fund investment in stock markets halved to Rs 55,700 crore in the first 10 months of the year because of lower participation from retail investors.
 Fund managers had bought shares worth about Rs 1.12 lakh crore during January-October 2018, according to the data provided by the Securities and Exchange Board of India (Sebi).
 "Inflows from retail investors into mutual funds have slowed compared with a year ago. As a result, mutual funds deployment into stock markets has lowered," said Vidya Bala, co-founder of Primeinvestor.in
 "Despite markets moving to new highs, since the rally is restricted to select stocks, retail investors have not seen any positive impact on their wealth. Unless retail appetite increases this trend may continue," she added.
 Omkeshwar Singh, head of mutual fund distribution business at Samco said although the overall flow per month in equities has been positive, if we remove Systematic Investment Plan (SIP) inflows than such inflows turned into negative, therefore the investment has been lower.
 "The investments through lump-sum net of redemptions have been negative," he added.
 SIP is an investment vehicle that allows investors to invest small amounts periodically instead of a lump-sum payment. The frequency of investment is usually weekly, monthly or quarterly. It is similar to a recurring deposit where investors deposit a small or fixed amount every month.
 Of Rs 55,700 crore infused in this year, most of the investment in equities during the year came between July and September. Fund managers infused a net sum of Rs 43,500 crore during the period. However, foreign investors pulled out Rs 22,400 crore in these three months.
 The sell-off by foreign portfolio investors (FPIs) in the Indian equity markets provided an opportunity to mutual fund managers, experts believe.
 On the other hand, fund managers withdrew a collective sum of Rs 12,000 crore from equities in March and April. SP SHW MR
MR

MF investment in equities halves to Rs 55,700-cr in Jan-Oct 2019

New Delhi, Apr 27 () Experts on Monday termed the RBI's move to open a special liquidity facility of Rs 50,000 crore for the mutual fund sector as "brilliant", saying it will improve investor confidence and reduce stress in the corporate debt market. The Reserve Bank of India's decision comes days after Franklin Templeton Mutual Fund decided to close six debt schemes with assets under management of more than Rs 25,000 crore. With a view to easing liquidity pressures on mutual funds, the RBI decided to open a special liquidity facility of Rs 50,000 crore. At the same time, the RBI highlighted that the stress, however, is confined to the high-risk debt mutual fund (MF) segment at this stage; the larger industry remains liquid. Mutual fund industry body Amfi Chairman Nilesh Shah said it is a good confidence building measure to ensure continued confidence of investors on the industry as also normal functioning of the markets. Nimesh Shah, MD and CEO at ICICI Prudential AMC, said that as a pre-emptive step, the RBI through its announcement of special liquidity facility for mutual funds has aimed to reduce the stress in the corporate bond segment. "...This is a welcome and positive step which will improve investor sentiments. We believe that a deflationary environment where prices come down across asset classes makes debt an interesting asset class to invest in today," he added. Given the incident about winding up of six debt oriented schemes of Franklin Templeton MF, there was much anxiousness and concern among investors, specially retail clients. "Brilliant move by RBI to bring confidence to mutual fund investors and also will help to calm down the corporate debt market," ITI Mutual Fund CEO and CIO George Heber Joseph said. Ankur Maheshwari, CEO, Equirus Wealth, said the RBI's decision will provide comfort to mutual fund investors and preserve financial stability. "Also, while banks had sufficient liquidity already, this is a reassuring step that the regulator is ready to support the markets as and when required," he added. Under the Special Liquidity Facility for Mutual Funds (SLF-MF), the RBI will conduct repo operations of 90 days tenor at the fixed repo rate. The scheme will be available from Monday itself till May 11, 2020, or up to utilisation of the allocated amount, whichever is earlier. The RBI further said funds availed under the SLF-MF should be used by banks exclusively for meeting the liquidity requirements of MFs by extending loans, and undertaking outright purchase of and/or repos against the collateral of investment grade corporate bonds, commercial papers, debentures and certificates of deposit held by MFs. "We would need to understand the definition of investment grade debt instruments. Good quality debt instruments were already getting funding, therefore what all grades of debt instruments are included will determine the actual impact on liquidity into MF system," said Omkeshwar Singh, who is head RankMF at Samco. Kaustubh Belapurkar, Director – Manager Research, Morningstar India said the liquidity window will certainly help improve investor confidence. Mutual funds have ample AAA rated exposures which can be used for this purpose. "But it will be interesting to see, if banks are willing to lend lower down the credit curve if it comes to that. Liquidity is constrained in the debt markets,especially lower down the credit spectrum," he added. He, further, said that debt funds have witnessed redemptions, but most have a significant amount of liquid securities to meet redemptions. This has been in play since March, given the pessimism around the economy slowing down due to the lockdown. Amit Jain, Co-Founder and CEO Ashika Wealth Advisors said liquidity window is a positive sentiment in short term, however in the long run, performance of underlying industry and business model will determine the future liquidity in corporate bond market "Also, we feel, once the lockdown opens we may observe high redemption pressure by Indian corporates from these debt instruments, to fund their day to day operations," he added. The announcement comes days after Franklin Templeton Mutual Fund, which has been operating in India for 25 years, decided to shut down its six schemes citing redemption pressures and lack of liquidity in the bond markets. The Amfi chairman believes that the mutual fund industry continues to be on sound footing both on portfolio quality as also on the liquidity front despite an isolated incident in these challenging times. Barring four fund houses that have collectively taken loan of Rs 4,427.68 crore, as of April 23, 2020, which is a small percentage of the RBI announcement and also overall MF Industry AUMs, none of the other 40 mutual fund houses has any borrowings, thereby indicating sound liquidity, he added. SP MR

RBI MF liquidity window to improve investor confidence, calm down corp debt mkt: Experts

New Delhi, Feb 4 () Industry body Amfi has sought clarification from relevant tax authorities with regard to the government's plan to scrap dividend distribution tax (DDT) on mutual funds and introduction of tax deducted at source on the income distributed by such products, officials said on Tuesday.
 Industry experts believe that the government's plan to tax dividend at the hands of investors could make dividend plans in equity and balanced schemes unattractive and investors may move towards growth plans.
 In addition, long-term investment plans such as equity-linked saving schemes and retirement products will be impacted too as the proposed tax regime has no deduction available.
 Finance Minister Nirmala Sitharaman in the Union Budget 2020-21 has proposed to abolish dividend distribution tax (DDT) on the dividend declared by companies and mutual funds to shareholders or unit holders.
 Once the DDT is abolished, the dividend amount will be added to investors' taxable income and taxed as per the individual tax bracket.
 Currently, mutual funds deduct the DDT and then hand over dividend to the unit holders.
 In addition, the minister introduced a 10 per cent TDS (tax deducted at source) provision on the income distributed by a mutual fund to its unit holders if such income exceeds Rs 5,000.
 The minister proposed the insertion of a new Section -- 194K -- in the Income Tax Act, which states "any person responsible for paying income arising from units of mutual fund or a specified company must deduct tax at the rate of 10 percent of such income", according to the Finance Bill 2020.
 Samco Head (RankMF) Omkeshwar Singh said a TDS of 10 per cent has been introduced under new Section 194K for a payout of Rs 5,000 and above, however it is not clear if it considers only dividend or capital gains as well.
 "Industry body Amfi has sought formal clarifications from relevant tax authorities since TDS on long-term capital gains for equities is exempted up to Rs 1 lakh," he said.
 "We would need to wait for more clarification on this subject. Further, the new proposed tax regime has no deductions available under 80C, which was being used by governments to encourage long-term investment-cum-savings, that (ELSS or retirement) may get adversely impacted," he added.
 Several industry officials also said the Association of Mutual Funds in India (Amfi) has sought clarification from relevant tax authorities in this regard.
 "With the removal of DDT on mutual funds, dividend income from mutual funds is now taxable in the hands of the investors at their relevant tax slabs (subject to a 10 per cent TDS)," said Kaustubh Belapurkar, director, manager (research), Morningstar
 "We think this will make dividend plans in equity and balanced plans unattractive from a tax perspective for investors in the higher tax brackets as investors in a growth plan are liable to pay a LTCG (long-term capital gains) of 10 per cent," he added.
 Naveen Kukreja, CEO and co-founder of Paisabazaar.com, "The government's move will positively impact a small segment of individual investors, who are not in the highest tax slab and were investing in the fixed income instruments under the dividend option," said 
 Abhishek Bansal, Chairman and MD, Abnas Group of Companies, said the proposal is a positive move
 "Earlier, DDT was levied twice, first when a company would pay a dividend to an asset management company (AMC), second when the AMC would declare its annual profits. These year-end profits declared by the AMC could be availed of in two ways by the investor who is a customer of the AMC: Either the investor could take the gains out as a dividend or it could be invested back into the fund. If the investor took the dividend route, he would need to pay DDT again," he said.
 "This has now been replaced by a single simplified tax in terms of the abolishment of DDT and 10 per cent TDS to be applied by the AMC to its investors. This is hence a positive move," he added.
 Bansal said that now, the quantum of savings that would result because of this step needs some clarification from the government on whether the TDS is to be cut on the income component or on the entire proceedings. Clarification on the same will surely be available over the next few days as the industry has requested clarity on the same. SP HRS

You Searched For "SAMCO Mutual Fund" and got 11 results

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