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<div type="image" title="The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books." agency="ANI" msid="114778648" hostid="261" caption="&amp;lt;p&amp;gt;The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books.&amp;lt;/p&amp;gt;"></div> Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of <keyword id="113684" type="General" weightage="20" keywordseo="microfinance" source="Orion">microfinance</keyword> and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, IndusInd Bank set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e. an NPA, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, RBI, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and <keyword id="20117932" type="General" weightage="20" keywordseo="navi-finserv" source="keywords">Navi Finserv</keyword> from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending instalments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honour any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its gross NPA for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. IDFC Bank’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in <keyword id="6051027" type="General" weightage="20" keywordseo="Unsecured-loan" source="Orion">unsecured loan</keyword>s, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. <keyword id="6376194" type="General" weightage="20" keywordseo="kotak-mahindra" source="Orion">Kotak Mahindra</keyword> Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical <keyword id="19897820" type="General" weightage="20" keywordseo="bollywood" source="keywords">Bollywood</keyword> headmaster who runs his dominion with an iron fist. However, that's a story for another day. Do you have a topic in mind you'd want a simpler explanation for, or insights or personal experience to share on personal finance and more? Contact us at businessinsider@timesinternet.in.

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

<ul><li>In the last six months, <a href="https://www.businessinsider.in/stock-market/news/12-equity-oriented-thematic-mfs-launched-in-the-last-6-months/slidelist/98900160.cms">12 new funds have been launched </a>in thematic schemes category with multinational companies (MNC) fund, <keyword id="347032" type="General" weightage="20" keywordseo="dividend-yield-fund" source="Orion">dividend yield fund</keyword> being and <keyword id="12557861" type="General" weightage="20" keywordseo="business-cycle-fund" source="Orion">business cycle fund</keyword> catching investor attention.</li><li>Such funds are popular as investors are looking for value creation across the board, beyond benchmark indices.</li><li>Such funds carry high risk and may not meet investor expectations of better returns in the long run, say experts.</li></ul><keyword id="917586" type="General" weightage="20" keywordseo="thematic-funds" source="Orion">Thematic funds</keyword> have created a buzz among investors given inflows into sectoral/thematic funds jumped more than three times from ₹903 crore in January, 2023 to ₹3,856 crore in February, 2023. In the last six months, <a href="https://www.businessinsider.in/stock-market/news/12-equity-oriented-thematic-mfs-launched-in-the-last-6-months/slidelist/98900160.cms">12 new funds have been launched </a>in thematic schemes category with multinational companies (MNC) fund, dividend yield fund being and business cycle fund catching investors attention. Such funds are popular because investors are looking for value creation options, across the board beyond benchmark indices. The fact that <a href="https://www.businessinsider.in/stock-market/news/back-to-square-one-nifty-circles-back-to-levels-last-seen-in-september-2021-markets-likely-to-end-2023-in-the-red/articleshow/98898424.cms">Indian markets have bled deeply </a>while underperforming global markets let investors look for sectors that are relevant in the current market situation. However, such funds carry high risk and may not meet investors expectations of better returns in the long run. “In recent months, performance of large and mid cap funds has not been optimal which can explain shifting investor interest towards alternate funds. We saw something similar a couple of years back when Indian investors invested heavily in international funds with an aim to get higher returns from indirectly investing in technology companies overseas. However, thematic funds are riskier in nature. So only a limited portion of portfolio allocation should be made in them,” said Pranav Haldea, MD at Prime Database Group. Thematic funds are investment funds focused on specific themes or trends. They invest in companies with specific themes like investing only in multinational companies, high paying dividend companies and so on to capitalize on growth opportunities and maximize returns. High risk thematic funds is a risky bet Meanwhile, since the sectors like PSU Banks and infrastructure have performed better in the volatile market, investors have been looking to invest in these categories. Also, the PSU Bank index emerged as the top sectoral winner in 2022, recording gains of nearly 73% – or about 16x the gains of the Nifty50 in 2022, as on December 15. “Some of the funds in categories like PSU/infrastructure/ and banking have done well, which naturally attracts more money from investors. In addition, there have been significant new launches, which creates buzz in the market and investors are enticed to invest,” said Dikshit Mittal, fund manager and senior equity research analyst at LIC MF Asset Management. Mittal also highlighted that the domestic banking sector is also in good shape as they have clean balance sheets, the growth runway is large, and valuations are reasonable. Infrastructure as a theme also seems to have a bright outlook considering government focus, budgetary allocations and resurgence of the manufacturing sector in India, says Mittal. Not to forget, thematic funds carry high risk so experts recommend investors to allocate only a part of their corpus to such funds. “In addition, thematic funds need timing to enter and exit so investors need to be agile in exiting these funds when their objective has been achieved,” said Mittal. Timing and theme of the fund is an important factor that derives the performance of the fund as if the theme goes wrong, investor returns will be hugely impacted. “The sudden popularity of thematic funds is largely driven by clients looking to invest in different pockets in the market. In this category, timings and wider themes are a challenging aspect to beat. Most of the existing funds have a narrow theme which ends up impacting their returns. We do not recommend thematic funds as it is not suitable for every investor,” said Kaustubh Belapurkar, director of fund research at Morningstar Investment Adviser India. As thematic funds revolve around a certain theme, they are much less diversified than other large cap equity funds that have a mix of large and mid cap stocks. Experts feel lack of diversification and high risk in thematic funds makes it not suitable for all kinds of investors. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-stage-a-rebound-led-by-adani-enterprises-group-market-capitalisation-rises-by-22011-crore/articleshow/99084630.cms">Adani group stocks stage a rebound led by Adani Enterprises: Group market capitalisation rises by ₹22,011 crore</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tax-hit-on-debt-funds-is-just-the-latest-punch-to-reeling-mutual-fund-companies/articleshow/99081740.cms">Tax hit on debt funds is just the latest punch to reeling mutual fund companies</a>

Can Thematic Funds Beat Market Blues? Time for a reality check amidst all the noise

June turned out to be a blockbuster month for thematic/sectoral <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword>, which managed to amass Rs 22,351.69 crore during the month, the highest amongst all equity mutual funds. Overall, equity mutual funds saw <keyword id="19967545" type="General" weightage="20" keywordseo="inflows" source="keywords">inflows</keyword> worth Rs 40,537 crore, whereas debt mutual funds saw significant outflows of about Rs 1.07 lakh crore. Within this category, liquid and overnight funds saw maximum outflows. As Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India noted, since June is a quarter end month, debt-oriented schemes, as expected, witnessed a net outflow. Only funds with a duration profile of less than 1 year, like low duration and money market funds, saw inflows. "The net outflow across the board could also be on the back of investors shifting towards equity markets in expectation of better returns, as the equity markets continue to touch all time high levels after the election results were announced. Between May and June, the number of folios in the debt segment fell from 7,091,977 to 7,013,214, which is a drop by 78,763 folios. In May, the number of folios fell by 26,088 folios". "Moreover, uncertainty over the interest rate cut cycle has also been keeping investors in tenterhooks. With no clarity on the probable timing for the beginning of interest rate cut cycle, investors, for a time being, would have decided to adopt a wait and watch approach and stay away from categories which are exposed to interest rate risks such as Dynamic and Gilt", he continued. <h2>SIP figures touch all-time highs</h2> As <keyword id="22344564" type="General" weightage="100" keywordseo="AMFI-data" source="keywords">AMFI data</keyword> further revealed, the number of new SIPs registered in June 2024 stood at a staggering 55,12,962. With this, the total number of SIP accounts in the country reached 8,98,66,962, inching up marginally from 8,75,89,485 in May 2024. SIP contributions also stood at an all-time high of ₹ 21,262.22 crores in June 2024 as against ₹ 20,904.37 crores in May 2024. The AUM of retail folios, which comprise of equity, hybrid and solution oriented was Rs 36,32,226 crores for June 2024. In <keyword id="22344565" type="General" weightage="20" keywordseo="hybrid-schemes" source="keywords">hybrid schemes</keyword>, multi-asset allocation funds garnered Rs 3,453.12 crore in June, and Arbitrage funds saw inflows worth Rs 3,836.58 crore. The only hybrid scheme to see net outflows were conservative hybrid funds, which shed Rs 130.57 crore. June marked the 40th consecutive month of positive inflows for <keyword id="20210668" type="General" weightage="20" keywordseo="equity-funds" source="keywords">equity funds</keyword> since March 2021. As Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited highlights, "SIP numbers are hitting peaks every month, accumulating a stellar ₹21,260 crore. This strengthens the fact that Indian investors are resilient and are participating in the long-term growth of the market. The overall market behaviour supported by numbers suggests that investors are strategically positioning themselves with cautious yet optimistic approach for long-term growth". Last month, the Indian MF industry hit the Rs 60 trillion mark for the first time. Exactly 10 years ago, in 2014, the industry's AUM stood at Rs 10 lakh crore. Just 6 months ago, its AUM was Rs 51 lakh crore. Anand Vardarajan, Chief Business Officer - Key Clients &amp; Alternate Investments, Tata Asset Management underlines that is growth is a huge validation when it comes to expanding retail investor's base and investors themselves choosing mutual funds as a reliable investment vehicle for wealth creation. This is further underscored by the fact that the addition in six months is equal to what the industry has seen in ten years ago! <h2>Large and Mid Cap funds find investors </h2>After garnering consistently high inflows in the recent past, small cap funds amassed Rs 2,263.47 crore, a slightly sobering figure. Midcap funds saw inflows worth Rs 2,527.84 crore. On the other hand, inflows in large-cap funds dipped at significantly to stand at Rs 970.49 crore. Far more investments went towards the large and mid-cap funds, which saw inflows worth Rs 2,912.19 crore. Melvyn Santarita, Analyst – Manager Research, Morningstar Investment Research India notes that these substantial net inflows can be attributed to the election results announced earlier in the month. Investors have remained optimistic and invested on policy continuity and anticipated reforms, expecting stability within the coalition government at the Centre. It was this optimism that propelled markets to new all-time highs. The multi-cap category witnessed the second highest net inflows in June 2024 among the equity-oriented categories amounting to INR 4,708.5 crores which was its 3rd highest net inflows ever over a monthly period. Categories which are biased towards the large-caps segment like flexicap (Rs 3,058 crores) and Value (Rs 2,027 crores) saw robust inflows during the month. "While markets have been in a prolonged bull run, there are concerns about overvaluations in certain areas, particularly in the mid and small-cap segments. Consequently, investors may be opting to invest in large-cap segments, where valuations are more favorable", Santarita highlighted. "However, they also continued their investments in mid and small caps, since the returns generated by mid and small cap segment over the last few years haven’t got unnoticed. Hence, the categories having substantial exposure in these two segments have witnessed strong net inflows. It is important to note that mid and small cap segments are highly volatile. While they can give exceptionally high return in up markets, they can fall equally hard in down markets. It’s important for investors to take exposure in these funds in line with their risk appetite", he cautioned. However, Hitesh Thakkar, Acting CEO, ITI Mutual Fund is confident of the immense wealth creation opportunities mutual funds will offer in the coming 5-7 years to retail investors. "Mutual fund is one of the preferred, transparent &amp; cost-effective investment products in India and is well accepted by retail investors. The trend is positive for Mutual fund industry future growth. There are chances that Industry will cross milestone of ₹100 lakh crores AUM by 2030”, he says. <h2><keyword id="19895579" type="General" weightage="20" keywordseo="gold" source="keywords">Gold</keyword> continues to glitter </h2>Net flows in Gold ETFs continued to be robust in June 2024, standing at Rs 726 crores. However, this was slightly below the net flows witnessed in May (Rs 827 crores). "Over the years, Gold has gained prominence as an effective diversifier, prompting many investors to include Gold ETFs in their portfolios. Gold prices also saw some slight correction in June which spurred buying from investors", underlines Santarita. However, the reason why inflows in gold ETFs have remained patchy as compared to equity is due to the significant gap in the returns offered. "Gold has done fairly well over the last year but dwarfs in comparison to how equities. Also, some investors could be choosing to opt for a risk-on approach to investing with the anticipation of a reversal in rate cycle going ahead", he continues.

Mutual fund AUM crosses the Rs 60 lakh crore mark, SIP nos. and AUM touch all-time highs

Kotak Flexicap Fund: Too big to be flexible?

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

<ul class="summary-list"><li>Elon Musk's X lawsuit led to the closure of the Global Alliance for Responsible Initiative.</li><li>Conservatives see this as a win for free speech against liberal media watchdog groups.</li></ul>High-profile conservatives took a victory lap this month after an antitrust lawsuit filed by Elon Musk's X, which alleged an ad trade group and its members illegally conspired to shift dollars away from the platform, resulted in the <a target="_blank" href="https://www.businessinsider.com/ad-group-to-suspend-garm-initiative-following-elon-musk-lawsuit-2024-8">closure of the advertising initiative the Global Alliance for Responsible Initiative</a>.For many of these high-fiving observers, the triumph wasn't merely that GARM — a two-person operation whose mission was to create common definitions around areas like hate speech and misinformation — had been toppled. It was a victory for free speech and, ultimately, a <a target="_blank" href="https://www.youtube.com/watch?v=0kY8BRI0sks">win</a> for right versus left.Since at least the 2016 election of President Donald Trump, conservative outlets have argued that liberal-leaning activists have pressured advertisers to boycott their sites. But the rise of the marketing practice known as "brand safety" hasn't just hit conservative outlets. It's dealt a revenue blow to publishers across the political spectrum.Initially fearful of inadvertently funding hate speech, terrorism, or online piracy, many advertisers' brand safety strategies now involve avoiding news and politics altogether."The left recentered the ad market," said Alex Marlow, the editor in chief of Breitbart News, in a recent <a target="_blank" href="https://www.prageru.com/video/elon-musk-takes-down-garm-and-why-it-matters">video interview</a> with the conservative media and advocacy group PragerU. "The positive, the silver lining, is that they ended up doing far more damage to themselves than they ever did to Breitbart."Now, as advertisers grow evermore fearful of appearing next to anything controversial, many ad industry insiders, as well as publishers on both the left and right, feel there's something fundamentally broken about the system."Whether you're X, or a liberal publisher, or <a target="_blank" class="" href="https://digiday.com/marketing/lawsuits-against-garm-call-into-question-the-politics-behind-brand-safety/">News Corp</a>., this thing just got out of hand," said Mark Penn, chief executive of the marketing company Stagwell Group.<h2 id="f94af8c2-5ed7-4b52-b6ef-69597c952279">The shift from advertising across 20 publishers to 44,000</h2>It wasn't always this way.When Rishad Tobaccowala, a former top Publicis Groupe executive and <a target="_blank" class="" href="https://rishadtobaccowala.com/bio">40-year ad industry veteran</a>, first began buying advertising in the 1980s, there were only around 20 media owners to purchase from, across TV, radio, print, and billboards.With a limited number of outlets, mostly producing professional content, controversies about ad placements were rare. If problems did arise, there'd be a person at the end of the phone to negotiate with."The biggest thing there was airlines taking down all their advertising if there had been an air crash," Tobaccowala said.The landscape today is dramatically different. Marketers now spend the majority of their budgets on digital advertising, and the average campaign runs across 44,000 websites, according to a December study from the Association for National Advertisers. Marketers don't self-select these websites, but instead instruct their ad vendors to target specific audiences, wherever on the web they may be browsing.It opened up a world where every ad impression was treated equally, regardless of where it appeared. As the use of automated ad buying grew, major advertisers began finding their ads in the murkiest corners of the web — porn sites, illegal torrenting services, videos depicting gratuitous violence, and more.This led to the rise of the brand safety industry. Companies promised to reduce marketers' risk by using software to scan a webpage's content and prevent their ads from appearing on anything unsuitable. Marketers created blacklists of sites they wanted to avoid and whitelists of sites they approved.But it wasn't until Trump's 2016 election that brand safety really entered the mainstream marketing vernacular — and the culture wars.<h2 id="63a5328f-ca44-4476-9d6f-d1c6e2f8aeaf">Sleeping Giants, YouTube advertiser boycotts, and the rise of keyword blocking</h2>"@sofi Are you aware that you're advertising on Breitbart, the alt-right's biggest champion, today? Are you supporting them publicly?" read the first tweet of Sleeping Giants, a then-anonymous social-media account in November of 2016.Sleeping Giants soon morphed into an <a target="_blank" class="" href="https://www.businessinsider.com/execs-solving-digital-advertising-problems-2018-8#matt-rivitz-and-nandini-jammi-freelance-copywriters-who-run-the-twitter-account-sleeping-giants-18">activist organization</a>, encouraging its ballooning Twitter following to pressure companies to stop advertising from other conservative outlets, such as Fox News' "Tucker Carlson Tonight" and "The Ingraham Angle," having accused them of peddling misinformation and hate speech.<div type="image" title="Tucker Carlson" height="1540" width="2836" msid="112840629" hostid="261" sizebytes="110448"></div>At around the same time, YouTube was facing a major advertiser boycott after a series of news investigations found their ads appearing alongside videos containing hate speech and terrorist content.The furor put marketers on high alert, terrified of an embarrassing screenshot that could land their brands in front-page news articles about funding extremism. Enter the brand safety industrial complex, which offered to quell CMO anxiety with sophisticated technology that promised to save their blushes. Platforms like Google and Facebook partnered with those firms and offered advertisers sharper brand safety controls.With each news cycle, advertisers added new terms to keyword blocklists, designed so their ad campaigns would avoid articles about uncomfortable topics. It presented a difficult paradox for publishers: High-traffic news cycles like the <a target="_blank" class="" href="https://www.businessinsider.com/integral-ad-science-doubleverify-help-brands-avoid-coronavirus-news-2020-3">COVID-19 pandemic</a> and <a target="_blank" class="" href="https://www.businessinsider.com/advertisers-are-avoiding-hard-news-during-russia-ukraine-war-2022-2">Russia's invasion of Ukraine</a> resulted in <a target="_blank" href="https://digiday.com/media/publishers-continue-to-see-coronavirus-coverage-blocked-by-advertisers/">ad revenue plunges rather than the expected spikes</a>.The topics getting blocked have sometimes reached absurdist levels. In April, Time CEO Jessica Sibley revealed that its Taylor Swift "Time Person of the Year" cover feature was deemed brand-unsafe because it contained language related to feminism and Swift's album "The Tortured Poets Department."<div type="image" title="Taylor Swift singing into a mic and wearing a white high-low gown onstage at the Eras Tour." height="2570" width="3427" msid="112840643" hostid="261" sizebytes="254122"></div>All this, and heavy competition from social-media giants and others, has contributed to a challenging ad market that has left the news industry scrambling. In 2023, more than 21,400 jobs were cut in the US media industry, according to the employment agency Challenger, Gray &amp; Christmas.<h2 id="e4ed5fc3-fd97-458a-a611-b9189cba3920">'You can't force brands to change their risk profile'</h2>Some advertising insiders say that while the concept of brand safety is sensible, the efforts have become too focused on policing what content ads appear next to (known in the industry as "content adjacency").When Mark Penn became Microsoft's chief strategy officer in 2014 and took on responsibility for its $2 billion ad budget, he was surprised that many companies shied away from advertising on news sites. He rejiggered the media plan and found that ads on news sites actually performed best for technology companies, as readers used them for research.<div type="image" title="mark penn" height="683" width="1024" msid="112840639" hostid="261" sizebytes="44626"></div>Penn is now the CEO of the marketing group Stagwell, which this year published a study that indicated the type of story an ad was placed next to didn't appear to affect the reader's favorability toward the brand. (Business Insider participated alongside other publishers with Stagwell's study by giving it access to the company's articles and some free advertising space, but otherwise had no influence over its process or findings.)"We don't want to be in the position of demonetizing one perspective or another," Penn said. "We want advertisers to feel like it's part of their civic responsibility to be advertising behind all perspectives."But some industry experts think it's too late to put the "content adjacency" genie back in the bottle."You can't force brands to change their risk profile," said Richard Raddon, CEO of Zefr, a software company that assesses brand suitability within content on platforms like YouTube, TikTok, Facebook, and connected TV. "No matter how much you pound your fist on the table saying that brands shouldn't care what they're adjacent to, it's just not going to change."<h2 id="50d9a7c4-5db5-4002-bebf-04e42953869f">A divisive election year and a challenging future for news brands</h2>Publishers are attempting to diversify through subscriptions, optioning their content for film and TV, launching commerce and events platforms, and signing AI licensing deals. But for most media companies, advertising remains the biggest source of income.Ben Shapiro, cofounder and editor emeritus of The Daily Wire, said he has proposed to some advertisers that they buy a mutual fund of advertising, where their ad dollars are split between shows like his on the right and podcasts like "Pod Save America" on the left."If you're an advertiser and want to advertise across a broad range of political shows that you think are not obviously violative of your core principles, then I think that also happens to be a pretty good defense" against online criticism and groups that advocate boycotts, Shapiro said.<div type="image" title="Ben Shapiro headshot" height="1000" width="1000" msid="112840634" hostid="261" sizebytes="35210"></div>"I think that would also be, by the way, a good way of helping the news industry generally. I think that would be good for debate. I think it's good for the public discourse in general," he added.(The Daily Wire is a joint plaintiff on an <a target="_blank" class="" href="https://news.bloomberglaw.com/litigation/daily-wire-censorship-claims-survive-against-state-department">active lawsuit</a> — alongside the State of Texas and The Federalist — that accuses the US Department of State of funding news rating and disinformation technologies they say censored conservative news.)In a highly charged US election year, marketers are more risk-averse than ever, especially when it comes to culture-war topics.Tractor Supply, John Deere, and Harley-Davidson <a target="_blank" class="" href="https://www.cnn.com/2024/08/19/business/harley-davidson-dei-john-deere-tractor-supply/index.html">recently ended</a> their diversity, equity, and inclusion initiatives after coming under activist pressure. And who can forget the image of Kid Rock shooting Bud Light cans with a rifle after the beer brand featured a transgender influencer in one of its social-media posts? A huge boycott of the brand saw Bud Light slip from being the top-selling beer in America to the No. 3 spot in the space of months.<div type="image" title="Bud Light beer bottles and Dylan Mulvaney" height="3000" width="3000" msid="112840641" hostid="261" sizebytes="252998"></div>"When I was working with clients and brands the people who were running marketing and advertising tended to be true decision makers and said, 'This is what we think,'" Tobaccowala said. "Now most people are really scared for their jobs, so their whole stance is, 'I'm not going to take a point of view on anything.'"The result, Tobaccowala fears, is a further winnowing of the media industry where only the biggest platforms and individual content creators survive."The ecosystem will look like whales and plankton," Tobaccowala said. "They feed off each other, but anyone in between won't have a future."

Brands are so scared of culture wars and controversy that it's ripping apart the media business

<ul><li><keyword id="19914160" type="General" weightage="20" keywordseo="Groww" source="keywords" meta.keywordsubtype="org" meta.entityname="Groww" meta.hostid="261" meta.entityid="Groww">Groww</keyword> has received SEBI approval to launch the <keyword id="21425700" type="General" weightage="20" keywordseo="Nifty-Non-Cyclical-Consumer-Index-Fund" source="keywords">Nifty Non-Cyclical Consumer Index Fund</keyword>.</li><li>The Nifty Non-Cyclical Consumer <keyword id="21293774" type="General" weightage="20" keywordseo="index-fund" source="keywords">Index Fund</keyword> will be launched through an <keyword id="20498936" type="General" weightage="20" keywordseo="NFO" source="keywords">NFO</keyword>.</li><li>The Nifty Non-Cyclical Consumer Index Fund is expected to be launched in the first week of May.</li></ul>Financial services company Groww has received approval from the <keyword id="19970553" type="General" weightage="20" keywordseo="Securities-Exchange-Board-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Securities Exchange Board of India" meta.hostid="261" meta.entityid="Securities Exchange Board of India">Securities Exchange Board of India</keyword> (SEBI), the country’s securities market regulator to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO). This will be the country’s first non-cyclical index fund and is expected to go live in the first week of May. The minimum investment amount for the NFO will be ₹500 and in multiples of ₹1 for purchases and ₹0.1 for switching. The redemption amount has been set at a minimum of ₹500 and in multiples of ₹1 thereafter. “The investment goal of the Nifty Non-Cyclical Consumer Index Fund is to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI) in the same proportion/weightage to offer returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index, subject to tracking errors,” Groww said in a statement. Groww acquired the mutual fund business of Indiabulls Housing Finance last year for ₹175.6 crore. <cmsannotation type="cmsannotation" annotationid="What is a non-cyclical consumer index fund?" comment="subhead" text="What is a non-cyclical consumer index fund?">What is a non-cyclical consumer index fund?</cmsannotation> A non-cyclical consumer index fund focuses on companies that provide essential goods and services which tend to remain stable in demand regardless of the economic cycle. This type of fund is designed to protect against market volatility by investing in stocks from industries such as utilities, healthcare, consumer staples, and sometimes financials. In this instance, the fund is benchmarked against the Nifty Non-Cyclical Consumer Index (Total Return Index). This tracks the performance of the top 30 stocks under sectors such as consumer goods and services, telecom and more. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/jiocinema-introduces-new-ad-free-premium-plans-starting-at-29/articleshow/109581033.cms">An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema</a> <a href="https://www.businessinsider.in/tech/news/gigabyte-aorus-co49dq-49-inch-qd-oled-144hz-curved-gaming-monitor-launched-in-india/articleshow/109563798.cms">GIGABYTE AORUS CO49DQ 49-inch QD-OLED 144Hz curved gaming monitor launched in India</a> <a href="https://www.businessinsider.in/tech/news/apple-let-loose-event-scheduled-for-may-7-ipads-expected-to-be-launched/articleshow/109553148.cms">Apple Let Loose event scheduled for May 7 – New iPad models expected to be launched</a>

Groww receives SEBI approval to launch Nifty non-cyclical consumer index fund

<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 class="summary-list"><li>Blackstone is launching two new funds for wealthy individual investors in credit and infrastructure.</li><li>Blackstone's largest fund for individual investors, BREIT, has come under fire from critics.</li></ul>Blackstone is doubling down on its offerings for individual investors, despite criticisms over its handling of a <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-blackstone-investing-private-reits-2024-1">real-estate fund known as BREIT</a>.In an earnings call on Thursday,<a target="_blank" class="" href="https://www.businessinsider.com/blackstone-ceo-stephen-schwarzman-best-career-lessons-2019-9"> Steve Schwarzman, Blackstone's chairman and CEO</a>, said the private-equity giant known for investing on behalf of pensions and other large investors plans to launch "several new products in the private wealth channel" focused on wealthy individuals.Later in the call, Jon Gray, Blackstone's COO and president, provided more details, saying the firm plans to launch the two new funds early next year. First up, he said, will be "an <a target="_blank" class="" href="https://www.businessinsider.com/biden-laws-us-infrastructure-invest-funding-2024-3">infrastructure vehicle</a> that will provide investors access to the full breadth of the firm's strategies in this area, including equity, secondaries, and credit."The second will be "a vehicle that will invest across our expansive credit platform," according to Gray.Those two new funds will join the three funds (BREIT, BXPE, and BCRED) for wealthy individual investors that Blackstone already offers, starting with its launch of BREIT in 2017. Those three funds, together with <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-private-wealth-joan-solotar-alternatives-breit-bcred-futureproof-2022-9">Blackstone's other offerings for wealthy individuals</a>, now represent $240 billion in assets, according to Gray."Our commitment to the $85 trillion private wealth market is stronger than ever," Gray said.The launches represent a vote of confidence for the firm's private wealth division after more than a year of prorated redemptions raised <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-breit-redemptions-real-estate-investing-strategy-2023-2">criticisms of BREIT</a>.Gray said Blackstone has raised nearly $13 billion for BREIT, BCRED, and BXPE in the first two quarters of the year, more than the firm raised from wealthy individuals in 2023.<h2 id="5c6f2378-97ef-44af-8017-8b724041e5ab">New Funds</h2>The two new funds represent investment areas that have so far paid off for the firm's investors. This quarter, Blackstone surpassed $100 billion in its infrastructure platform, which invests both debt and equity into infrastructure projects like renewable energy,<a target="_blank" class="" href="https://www.businessinsider.com/blackstones-data-center-bets-have-climbed-10-fold-to-100-billion-2024-4"> data centers</a>, and supply chain and transportation companies.Blackstone launched its infrastructure fund for institutional investors in 2017. Since then, Blackstone Infrastructure Partners has generated 16% net returns annually, beating the public infrastructure index by nearly 11%, Gray said."As we've been saying for some time, we believe flows in the wealth channel ultimately follow performance," Gray said.Private credit has also been a top performer for the firm, generating a gross return of 4.2% for the quarter. In the first half of 2024, the firm issued $24 billion in A-rated credits, up almost 70% year over year, according to Gray.BCRED, the firm's first credit fund for individual investors, raised $3.4 billion in this quarter, more than the $1.4 billion raised by BXPE and the $990 million raised by BREIT. This fevered fundraising pitch showcases demand for credit products and may explain why the company is planning to launch a second credit product for individual investors.<h2 id="993fc1df-00c9-4bd6-a7a1-b8382b3c08c8">BREIT criticism and response</h2>Blackstone's private wealth business has not been without its challenges. BREIT's woes started at the end of 2022 when the fund began <a target="_blank" class="" href="https://www.businessinsider.com/real-estate-blackstone-investing-private-reits-2024-1">prorating redemptions</a> from investors amid a slowdown in the real estate market before a $4 billion investment from the UC pension fund bolstered its books.By February of this year, it was able to fulfill all <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-starwood-real-estate-breit-sreit-investors-withdrawals-2024-5">redemption requests</a>, but some critics continued to question the <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-breit-commercial-real-estate-fund-misled-investors-private-equity-2024-5">company's valuation methods, including in an article by Business Insider</a>. Blackstone disputed many of the claims in the article, which cited criticisms of short sellers and other researchers.On Thursday, Schwarzman said that BREIT is three times bigger than the next five largest non-traded REITs combined, an indication that investors want a chance to invest in real estate alongside the world's largest landlord.Schwarzman combined his analysis of BREIT's success with a rosier picture of the larger macro environment in real estate. Since <a target="_blank" class="" href="https://www.businessinsider.com/blackstone-jonathan-gray-predicts-commercial-real-estate-bottom-2024-1">calling the bottom of the real estate market</a> at the beginning of the year, Blackstone's confidence that inflation is receding has continued to increase, leading to more deployment of capital into real estate.It's also providing more possibilities to exit and realize returns on its real estate assets. Gray said that the firm is now seeing two to three times more bidders on its logistics and rental housing assets than it did during the worst of the credit crunch. The firm, which is deploying nearly $15 billion into real estate this year, according to Gray, sees sunny days ahead."Real estate is one of the largest asset classes in the world, and having the largest business when the cycle is turning should be very advantageous for our shareholders," Schwarzman said.

Blackstone is doubling down on its efforts to woo the wealthy with 2 new funds, flying in the face of BREIT critics

<ul><li>Prominent Investors have bought 1.17 crore shares in <keyword id="3123724" type="General" weightage="80" keywordseo="rcms" source="Orion">RCMS</keyword> via anchor book such as HDFC Trustee, Aditya Birla Sun Life Trustee, Emerging Business Fund and more. </li><li>Radiant Cash Management provides services such as cash pick-up and delivery; network currency management; cash processing; cash vans /cash in transit and other value added services. </li><li>RCMS is proposing to open its initial public offering of equity shares on Friday, December 23, 2022, and close on Tuesday, December 27, 2022.</li></ul>Radiant <keyword id="868996" type="General" weightage="80" keywordseo="cash-management-services" source="Orion">Cash Management Services</keyword> Limited (RCMS), an integrated cash logistics company in India has raised ₹116.38 crore from anchor investors ahead of its initial public offering on Friday, December 23, 2022. The company informed the bourses that it allocated 1,17,55,681 shares at ₹99 per share on Thursday, December 22, to anchor investors. Prominent investors have bought 1.17 crore shares in the company via anchor book such as HDFC Trustee, Aditya Birla Sun Life Trustee, Emerging Business Fund, Alchemy Emerging Leaders of Tomorrow, Citigroup Global Markets, Dovetail India Fund, Societe Generale, BNP Paribas Arbitrage, <keyword id="126458" type="General" weightage="50" keywordseo="uti-mutual-fund" source="Orion">UTI Mutual Fund</keyword>, and Saint Capital Fund. Its marquee clients include Axis Bank Limited, Citibank, Deutsche Bank Limited, HDFC Bank Limited, ICICI Bank Limited, <keyword id="46013" type="General" weightage="50" keywordseo="kotak-mahindra-bank" source="Orion">Kotak Mahindra Bank</keyword>, Standard Chartered Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation Limited and <keyword id="2175521" type="General" weightage="50" keywordseo="yes-bank-limited" source="Orion">Yes Bank Limited</keyword>. “The company operates its business across five verticals, namely cash pick-up and delivery; network currency management (also known as cash burial in industry parlance); cash processing; cash vans /cash in transit and other value added services,” RCMS said in a statement. Founded in 2005 by Col. <keyword id="15862238" type="General" weightage="50" keywordseo="david-devasahayam" source="Orion">David Devasahayam</keyword>, Radiant Cash Management Services provides services across 13,044 pin codes in India covering all districts (other than Lakshadweep) as of July 31, 2022, the company revealed. “Radiant Cash Management Systems’ revenue from operations increased 29.04% to ₹286.04 crore for fiscal 2022 from ₹221.67 crore during the year ended March 2021, while its profit after tax during the year grew 17.81% to ₹38.21 crore for fiscal 2022 from ₹32.43 crore for fiscal 2021,” RCMS shared. The company closes its initial public offering of equity shares on Tuesday, December 27, 2022. As per RCMS, the <keyword id="6354763" type="General" weightage="50" keywordseo="ipo" source="Orion">IPO</keyword> is estimated to fetch ₹388 crore at the upper end of the price band. Investors can bid for a minimum of 150 equity shares and in multiples of 150 equity shares thereafter, the company states. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/landmark-cars-lists-at-nearly-7-discount-on-bourses-amid-weak-market-sentiment/articleshow/96443852.cms">Landmark Cars lists at nearly 7% discount on bourses amid weak market sentiment</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/most-anticipated-sequels-of-web-series-movies-and-shows-releasing-in-2023/slidelist/96429356.cms#slideid=96430674">From Shark Tank S2 to Indian 2, a look at the most anticipated sequels releasing in 2023</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/radiant-cash-management-services-ipo-ten-things-you-need-to-know-before-subscribing/slidelist/96435762.cms">Radiant Cash Management Services IPO – Here are 10 things you need to know before subscribing</a>

Cash-logistics company Radiant Cash Management raises ₹116 crore from anchor investors

<ul><li>The new fund offering (<keyword id="35472" type="General" weightage="20" keywordseo="nfo" source="Orion">NFO</keyword>) opens on December 1, 2023. </li><li>The fund is designed to strategically invest in <keyword id="62614" type="General" weightage="20" keywordseo="sectors" source="Orion">sectors</keyword> benefiting from India's <keyword id="6386662" type="General" weightage="20" keywordseo="economic" source="Orion">economic</keyword> shifts. </li><li>The fund will adopt a bottom-up strategy, selecting stocks across market caps. </li></ul>Axis Mutual Fund has launched the <keyword id="19658385" type="General" weightage="20" keywordseo="Axis-India" source="Orion">Axis India</keyword> <keyword id="5382838" type="General" weightage="20" keywordseo="manufacturing-fund" source="Orion">Manufacturing Fund</keyword>, an open- scheme that mirrors India's manufacturing landscape, and is benchmarked against the Nifty India Manufacturing TRI. The new fund offer (NFO) opens on December 1st, 2023, and seeks to enable investors to tap into the potential growth of India’s manufacturing sector, which is anticipated to expand in the years ahead. Investors can participate in the NFO until December 15, 2023. Why manufacturing as a theme? India is heading toward an exciting future, embracing modern technologies and focusing on sustainable growth. Government actions, along with labour and tax changes, position India as a competitive global manufacturing centre. India relies heavily on consumption, making it less prone to global economic shifts. The surge in growth is fueled by enhanced economic confidence driving product demand and efficient use of production capabilities. Hence, manufacturing as a theme holds a lot of promise. Axis India manufacturing fund's strategic focus The fund is designed to strategically invest in sectors benefiting from India's economic shifts, aiming for a diverse portfolio reflecting the depth of India's manufacturing strength. Encompassing sectors like capital goods, consumer durables, textiles, and pharmaceuticals, the fund will offer a comprehensive investment avenue within India's manufacturing landscape. Investment strategy across economic segments The fund targets three companies across three sectors of the Indian economy: Investments (Capex cycle): Companies boosting production through investments in equipment and research. Consumption: Industries witnessing increased demand due to rising incomes and a trend towards premium products. Net exports: The fund will be focused on companies benefitting from India's global supply chain integration. Investment approach and focus The fund will adopt a bottom-up strategy, selecting stocks across market caps. Emphasising active sector allocation and a 'Quality' investing style, it also aims to look at underrepresented segments in Indian listed markets. Says B Gop Kumar, MD and CEO, Axis Asset Management Compnany (AMC), "This thematic fund, is designed to capitalise on India’s growing momentum, focusing on sectors that stand to redefine India’s industrial contours.” Currently there are only a few manufacturing funds in India with a one and three year track record. <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;background-color:#ff0000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funds </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;background-color:#ff0000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">1-year return (%) </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;background-color:#ff0000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3-year return (%) </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Sun Life Manufacturing Equity Fund - Direct Plan </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">18.33 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.99 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Prudential Manufacturing Fund - Direct Plan </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">32.20 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">31.86 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Manufacture in India Fund - Direct Plan </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">21.62 </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">-- </td></tr></tbody></table> Source: Value Research “Investors should not take positions into these thematic funds for more than 10% of their portfolio allocation. That way if it doesn’t work out, they won’t face they won’t face a large drawdown on their portfolio,” says Abhishek Kumar, founder and chief<a href="https://business.outlookindia.com/invest/investment"> </a>investment advisor at SahajMoney, a financial planning firm. This is because thematic funds like manufacturing funds can carry higher risks due to their focused investment in specific sectors or trends. Their success hinges on the performance of those particular themes, making them more vulnerable to market fluctuations and industry-specific challenges.

You Searched For "kotak business cycle fund" and got 11 results

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

Ira Alok Puranik

Can Thematic Funds Beat Market Blues? Time for a reality check amidst all the noise

Bhakti Makwana

Mutual fund AUM crosses the Rs 60 lakh crore mark, SIP nos. and AUM touch all-time highs

Ira Alok Puranik

Kotak Flexicap Fund: Too big to be flexible?

Anagh Pal

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

Bhakti Makwana

Brands are so scared of culture wars and controversy that it's ripping apart the media business

Lara O'Reilly

Groww receives SEBI approval to launch Nifty non-cyclical consumer index fund

Sourabh Jain

Kotak Mahindra MF launches silver ETFs to hedge against ongoing uncertainties

Bhakti Makwana

Blackstone is doubling down on its efforts to woo the wealthy with 2 new funds, flying in the face of BREIT critics

Alex Nicoll

Cash-logistics company Radiant Cash Management raises ₹116 crore from anchor investors

Eetika Kapoor

New fund alert: 'Axis India Manufacturing Fund'

Anagh Pal

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You Searched For "kotak business cycle fund" and got 11 results

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

Ira Alok Puranik

Can Thematic Funds Beat Market Blues? Time for a reality check amidst all the noise

Bhakti Makwana

Mutual fund AUM crosses the Rs 60 lakh crore mark, SIP nos. and AUM touch all-time highs

Ira Alok Puranik

Kotak Flexicap Fund: Too big to be flexible?

Anagh Pal

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

Bhakti Makwana

Brands are so scared of culture wars and controversy that it's ripping apart the media business

Lara O&apos;Reilly

Groww receives SEBI approval to launch Nifty non-cyclical consumer index fund

Sourabh Jain

Kotak Mahindra MF launches silver ETFs to hedge against ongoing uncertainties

Bhakti Makwana

Blackstone is doubling down on its efforts to woo the wealthy with 2 new funds, flying in the face of BREIT critics

Alex Nicoll

Cash-logistics company Radiant Cash Management raises ₹116 crore from anchor investors

Eetika Kapoor

New fund alert: 'Axis India Manufacturing Fund'

Anagh Pal

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Lara O'Reilly