Latest news with #MF
Mint
3 days ago
- Business
- Mint
Now, you can add or remove joint holders in non-demat mutual funds
MUMBAI : People who hold mutual fund (MF) units in Statement of Account (SoA) form—that is, outside of demat accounts—can now add or remove joint holders and transfer those to others online. On 17 June, Mint covered the step-by-step process of transferring or gifting MF units held in an SoA. Today, we will discuss other important updates. Adding or removing joint holders Earlier, non-demat MF investors could not add or remove joint holders. Offline functionality was also absent. Vishal Dhawan, a registered investment advisor (RIA) and founder of Plan Ahead Wealth Advisors, said a joint holder is like a co-owner of the mutual fund, whereas a nominee simply acts like a custodian and is responsible for eventually transferring units to legal heirs. Also Read: How to move your mutual fund units from one demat to another or gift them For example, earlier, when a couple separated, they had to first dematerialize MF units held in the joint ownership account and transfer them to a single-ownership demat account. But now they can remove one holder from the account after mutually agreeing to it. Similarly, a person can seamlessly add their spouse as a joint holder. 'By allowing spouses to be added as joint holders, the transmission in the event of death becomes easier. A joint holder is essentially inheriting in its own right and not as a trustee of the eventual heir. In a way, a joint holder is a shared heir rather than a nominee, who is required to transfer the amount to the legal heir," said Harsh Roongta, an RIA and founder of Fee Only Investment Advisers. 'Allowing such additions will reduce the burden during hard times." When a minor turns 18, the account becomes a major account. Earlier, a joint ownership could not be added when the minor became a major. Now, parents or guardians can add themselves as joint holders when the minor account turns major. Also Read: Sebi reforms: Demat for housing societies, cooperatives a boost for financial inclusion If they choose the 'joint holder' option, transactions require the approval of all parties in the account. If one of the joint holders dies, the surviving joint holder can add another person as a joint holder. Since 18 May, investors can visit the CAMS or KFintech website to add or remove joint holders. A nominee can transfer units directly to legal heirs The transfer of units to legal heirs after a unitholder's passing was a cumbersome process before. Once the unitholder expired, the nominee would get access to the units. It was the job of the nominee to then transfer those units to the rightful legal heirs. Since unit transfers weren't allowed in the SoA form before, the nominee had to dematerialize those units and open demat accounts for each legal heir to transfer the units. 'It used to be a long and tedious process and would sometimes take weeks," said Dhawan. 'If the nominee decided to sell those units and distribute those to legal heirs, then the nominee would incur the entire capital gains." Now, the nominee can simply visit the MFCentral website and directly initiate a transfer. The site automatically redirects the user to either the CAMS or KFintech site, depending on the AMC they've chosen. Also Read: SIPs stop, demat accounts slump: Are retail investors running scared? Dhawan said the new changes are a welcome move and will make life easy for many of those who are holding mutual funds in non-demat form. 'In bank accounts, people can easily add or delete joint holders, and many assumed this could also be done for mutual funds. That wasn't true before, but now they can do so."
Economic Times
13-06-2025
- Business
- Economic Times
Consumption and infrastructure 2 top compounding themes in market now: Sumit Bhatnagar
Sumit Bhatnagar, Fund Manager, LIC MF, says consumption is expected to rise and can be a top compounding theme as factors that slowed it down recede. Rural consumption has revived and urban consumption should follow. Tax cuts and RBI measures on unsecured loans will help. Government pay commissions in FY27 and FY28 will inject funds. The second compounding theme is infrastructure. India needs infrastructure investment in power, ports, railways, and roads. Focus on infrastructure is expected to continue. After that RBI bazooka of repo and CRR cuts, the Indian markets were seen to be trending higher, but given the fact that the crude oil is now showing a surge in the international market, what do you make of the market and where are we headed from here? Sumit Bhatnagar: We are positive on the markets over the near term. We are seeing a very clear sign of economic revival as also a potential for corporate earning revival as well. If you look at the global environment that we are in, both the IMF and World Bank have cut their global growth estimate by 50 bps. In that kind of an environment if your economy is growing at 6.5%, it is still a pretty decent number. With the recent policy measure that you just mentioned by the RBI both on the monetary side as also the regulatory step that they had taken earlier, it provides a significant support to your economic growth outlook. If the credit growth revives and if the credit growth picks up, then there can be a small positive surprise on the RBI GDP growth estimates as well. In that kind of an environment, markets should do well from here onwards also, but that should broadly be in line with the corporate earnings expectations which we expect to be in a low double digit return, low double digit over next one or two years. In so far as crude is concerned, even at $70 crude is not a major concern for us as it is within the budgeted numbers, its impact on inflation can easily be managed. What are some of the top secular or compounding themes in the market right now? What are you liking among the sectors at the moment? Sumit Bhatnagar: The top compounding themes to my mind would be consumption now. What has happened is that over the last two years consumption has lagged, but now the factors that were impacting the consumption or leading to slowdown are slowly receding. While we all know that rural consumption has revived, urban consumption also should now revive over the next one or two years. One is led by the tax cuts that the government has announced. Secondly, the steps that RBI has announced in so far as your unsecured loans are concerned should also help in revival of urban consumption. More importantly, in FY27, we expect central government's pay commission to come in and at the same time, one year later, maybe in FY28, some state government pay commission should come in and that should push in around Rs 2.5 lakh crore into the hands of one-and-a-half crore employees and that should provide some bit of a support to second compounding theme is infrastructure. We think India still is very underinvested in so far as infrastructure is concerned, including power, power transmission, ports, railways, and roads. If you are planning to be a major manufacturing hub, you want to be a China plus one type of an alternative, there is no choice but to invest heavily into infrastructure. Both the central and state government's focus continues to be on that. Last year may have been an aberration. We expect focus to continue going forward. So, these two would be the key themes for me. Help us with your take on the IT pack as well. The sector has not participated much in the recent rally that we have seen, but for the past couple of days, select IT counters were buzzing. Is there merit to once again look into any of the IT counters? Can they do well? Sumit Bhatnagar: IT as a pack is in a very tricky situation. While valuations have corrected somewhat over last six months led by global uncertainty, if we do not see a revival in global growth, if uncertainty around us does not recede or US-China does not recede, we can continue to see disappointments in it, so that is one space where there is a potential of a downgrade if the global uncertainty does not recede per se. And if you talk about the overall market construct right now, Q4 FY25 earnings have been better than what the Street was estimating. On the back of this, do you believe there are any sectors that need to be relooked or revisited in terms of any rerating, derating perhaps? Sumit Bhatnagar: Broadly we expect low double digit type of earnings at a largecap level over next two years. But in terms of sectors, maybe financial, both banks and NBFCs can now surprise positively. The recent RBI measure can help banks in managing the NIMs much better with a CRR cut that they have announced. Plus, frontloading of the repo rate cut should help NBFCs as well. With credit growth revival, there can be earnings surprises in both these segments. Secondly, telecoms with the possibility of a tariff hike can surprise positively on earnings. Cement, we expect to do well with the prices holding up firmly and with the volume growth of 6-7%, cement can surprise on upside in so far as earnings are concerned. Consumption over the next two-three years can surprise if demand picks up. Drivers are now getting in place for demand revival, but we need to watch out for that. What is your take on metals? We believe the government is likely to hike the safeguard duty on the steel products beyond 12% and on a month-on-month basis, we are seeing domestic steel production inching higher. What will impact the steel stocks? Will it be the demand, will it be the price, or will it be supply? Sumit Bhatnagar: Our sense is that in the entire metal space, steel is one segment that should do reasonably well. Even without your government support on anti-dumping or safeguard duties, steel volumes were still growing at a pretty healthy 8-9%. And with the government's plan to hike duty to 24%, it could only reduce the cheap Chinese imports that are coming in. So, maintain a positive view on steel, but valuations also need to be looked at in steel stocks. What is your take on emerging sectors like aviation as a subsector of defence? We have already seen a significant runup in some of these defence counters. Would you still continue to be bullish on defence and also aviation in terms of drones as a subsector of defence? Sumit Bhatnagar: So far as defence is concerned, till about a month back, it used to be a narrative sector, but after the proof given in Operation Sindoor, the narrative part is over, now they can actually offer a very attractive opportunity over a medium to long term. With the kind of proof that we have seen, we do expect some bit of an inquiries or increase in inquiries for your defence platforms as well. Earlier, we used to export support consumables, but now platforms also are a fair game but that is going to take time. So, in so far as near-term is concerned, the recent rally prices in a lot of positives and space as a whole may be a fairly priced or maybe inching towards valuations as well. In so far as drones are concerned, we have seen the importance of drones in Operation Sindoor per se and even in Russia-Ukraine war. Now drones are a very effective weapon system as well. Drones have both a defence as also your industrial application. As a space, drones can do well, but unfortunately there are not many options available to play this space.
Time of India
13-06-2025
- Business
- Time of India
Consumption and infrastructure 2 top compounding themes in market now: Sumit Bhatnagar
Sumit Bhatnagar , Fund Manager, LIC MF , says consumption is expected to rise and can be a top compounding theme as factors that slowed it down recede. Rural consumption has revived and urban consumption should follow. Tax cuts and RBI measures on unsecured loans will help. Government pay commissions in FY27 and FY28 will inject funds. The second compounding theme is infrastructure. India needs infrastructure investment in power, ports, railways, and roads. Focus on infrastructure is expected to continue. After that RBI bazooka of repo and CRR cuts, the Indian markets were seen to be trending higher, but given the fact that the crude oil is now showing a surge in the international market, what do you make of the market and where are we headed from here? Sumit Bhatnagar: We are positive on the markets over the near term. We are seeing a very clear sign of economic revival as also a potential for corporate earning revival as well. If you look at the global environment that we are in, both the IMF and World Bank have cut their global growth estimate by 50 bps. In that kind of an environment if your economy is growing at 6.5%, it is still a pretty decent number. With the recent policy measure that you just mentioned by the RBI both on the monetary side as also the regulatory step that they had taken earlier, it provides a significant support to your economic growth outlook. If the credit growth revives and if the credit growth picks up, then there can be a small positive surprise on the RBI GDP growth estimates as well. In that kind of an environment, markets should do well from here onwards also, but that should broadly be in line with the corporate earnings expectations which we expect to be in a low double digit return, low double digit over next one or two years. In so far as crude is concerned, even at $70 crude is not a major concern for us as it is within the budgeted numbers, its impact on inflation can easily be managed. What are some of the top secular or compounding themes in the market right now? What are you liking among the sectors at the moment? Sumit Bhatnagar: The top compounding themes to my mind would be consumption now. What has happened is that over the last two years consumption has lagged, but now the factors that were impacting the consumption or leading to slowdown are slowly receding. While we all know that rural consumption has revived, urban consumption also should now revive over the next one or two years. Live Events You Might Also Like: Buy on dips if you believe in long-term India growth, 3 investment themes to bet on: Mihir Vora One is led by the tax cuts that the government has announced. Secondly, the steps that RBI has announced in so far as your unsecured loans are concerned should also help in revival of urban consumption. More importantly, in FY27, we expect central government's pay commission to come in and at the same time, one year later, maybe in FY28, some state government pay commission should come in and that should push in around Rs 2.5 lakh crore into the hands of one-and-a-half crore employees and that should provide some bit of a support to consumption. The second compounding theme is infrastructure. We think India still is very underinvested in so far as infrastructure is concerned, including power, power transmission, ports, railways, and roads. If you are planning to be a major manufacturing hub, you want to be a China plus one type of an alternative, there is no choice but to invest heavily into infrastructure. Both the central and state government's focus continues to be on that. Last year may have been an aberration. We expect focus to continue going forward. So, these two would be the key themes for me. Help us with your take on the IT pack as well. The sector has not participated much in the recent rally that we have seen, but for the past couple of days, select IT counters were buzzing. Is there merit to once again look into any of the IT counters? Can they do well? Sumit Bhatnagar: IT as a pack is in a very tricky situation. While valuations have corrected somewhat over last six months led by global uncertainty, if we do not see a revival in global growth, if uncertainty around us does not recede or US-China does not recede, we can continue to see disappointments in it, so that is one space where there is a potential of a downgrade if the global uncertainty does not recede per se. And if you talk about the overall market construct right now, Q4 FY25 earnings have been better than what the Street was estimating. On the back of this, do you believe there are any sectors that need to be relooked or revisited in terms of any rerating, derating perhaps? Sumit Bhatnagar: Broadly we expect low double digit type of earnings at a largecap level over next two years. But in terms of sectors, maybe financial, both banks and NBFCs can now surprise positively. The recent RBI measure can help banks in managing the NIMs much better with a CRR cut that they have announced. You Might Also Like: Next biggest opportunity will be thrown up by manufacturing in India: Mihir Vora Plus, frontloading of the repo rate cut should help NBFCs as well. With credit growth revival, there can be earnings surprises in both these segments. Secondly, telecoms with the possibility of a tariff hike can surprise positively on earnings. Cement, we expect to do well with the prices holding up firmly and with the volume growth of 6-7%, cement can surprise on upside in so far as earnings are concerned. Consumption over the next two-three years can surprise if demand picks up. Drivers are now getting in place for demand revival, but we need to watch out for that. What is your take on metals? We believe the government is likely to hike the safeguard duty on the steel products beyond 12% and on a month-on-month basis, we are seeing domestic steel production inching higher. What will impact the steel stocks? Will it be the demand, will it be the price, or will it be supply? Sumit Bhatnagar: Our sense is that in the entire metal space, steel is one segment that should do reasonably well. Even without your government support on anti-dumping or safeguard duties, steel volumes were still growing at a pretty healthy 8-9%. And with the government's plan to hike duty to 24%, it could only reduce the cheap Chinese imports that are coming in. So, maintain a positive view on steel, but valuations also need to be looked at in steel stocks. What is your take on emerging sectors like aviation as a subsector of defence? We have already seen a significant runup in some of these defence counters. Would you still continue to be bullish on defence and also aviation in terms of drones as a subsector of defence? Sumit Bhatnagar: So far as defence is concerned, till about a month back, it used to be a narrative sector, but after the proof given in Operation Sindoor , the narrative part is over, now they can actually offer a very attractive opportunity over a medium to long term. With the kind of proof that we have seen, we do expect some bit of an inquiries or increase in inquiries for your defence platforms as well. Earlier, we used to export support consumables, but now platforms also are a fair game but that is going to take time. So, in so far as near-term is concerned, the recent rally prices in a lot of positives and space as a whole may be a fairly priced or maybe inching towards valuations as well. You Might Also Like: ETMarkets Smart Talk: Defence stocks may face bumpy ride despite big potential, says Asit Bhandarkar In so far as drones are concerned, we have seen the importance of drones in Operation Sindoor per se and even in Russia-Ukraine war. Now drones are a very effective weapon system as well. Drones have both a defence as also your industrial application. As a space, drones can do well, but unfortunately there are not many options available to play this space.
Time of India
09-06-2025
- Business
- Time of India
Equity, debt or gold, which asset class has delivered highest returns in last 11 years? Here's an annual performance tracker
Gold proves crucial in portfolio performance ranking In this TrendMap, we have considered the weighted annual returns for comparison. The equal weighted portfolio of equity, debt, and gold generated the highest returns in 2025 year-to-date. Moreover, such a portfolio delivered double-digit returns in six of the past 11 years. In contrast, the returns generated by the portfolio with a strong debt component has seen high volatility since 2020. After topping the charts in 2023 and 2024, the portfolio with a strong equity component skidded down in 2025 year-to-date amid high turbulence due to global macroeconomic uncertainties and valuation concerns. Gold has emerged as a crucial asset. Portfolios with zero gold exposure remained in the lowest two ranks in six out of the last 11 years. Looking at the risk-reward ratio, of the seven defined portfolios based on the average returns and standard deviation over the last 11 years, the portfolio with the higher debt component (debt 60%) has the most optimal risk-to-reward ratio, followed by the equal weighted portfolio. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 모기 잡지말고 켜두면 다 죽어! 앱스토리몰 더 알아보기 Undo Comparatively, the portfolio with the highest equity component has the most sub-optimal risk-to-reward ratio. Source: ACE MF. *2025 data is YTD based on 30 May 2025 closing values. Other years' returns are calculated between the first and the last trading day closing values. WAR is the weighted average return (or portfolio Live Events return) of the given investment allocation. Benchmarks used: Equity: Nifty 500 Index, Debt: Crisil Composite Bond Index, Gold: Nippon India ETF Gold BeES.
Time of India
06-06-2025
- Business
- Time of India
Best small cap mutual funds to invest in June 2025
Small cap mutual funds that invest in the stocks of very small companies have given over 26.38% in 2024. In April 2025, the small cap funds again gained investors' interest and received an inflow of Rs 3,999 crore. The talk about the higher valuations in the small cap space and the recent volatility in the market are forcing many investors to accept that a correction may be around the corner. Mutual fund managers and advisors say the valuations are rich but investors can continue to invest in small cap schemes to create wealth over a long period. According to many mutual fund advisors, even though the small cap segment has run up a lot in the last six months, investors can still invest in these schemes in a staggered manner to create wealth over a long period. Also Read | MF Tracker: Will this Rs 30,000 crore smallcap fund continue to maintain its long-term performance? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold Container Homes in Cebu - Prices You Won't Believe! Shipping Container Homes | Search Ads Search Now Undo Small cap schemes invest in very small companies or their stocks. According to the Sebi mandate, small cap schemes must invest in companies that are ranked below 250 in terms of market capitalisation. These schemes also will have to invest at least 65% in small cap stocks. Small companies go through many ups and downs - more than the established companies in the large and mid cap segments. That is why investing in small cap stocks is considered extremely risky; the small cap segment can also be extremely volatile, especially in the short term. That is why small cap schemes are recommended only to aggressive investors with a very high risk appetite and very long investment horizon. Should you invest in small cap funds? Are you wondering why anyone would take so much risk investing in small cap schemes? These schemes also have the potential to offer very high returns over a long period. For example, the small cap category offered an average return of 19% over 10 years. However, to pocket such fabulous returns you must be prepared to take so much risk and volatility. Live Events It is not very easy to identify winners in the small cap segment. Many of these companies are unknown. They are also under-researched. Their management can be unscrupulous and they can make big claims that can be bogus. Sometimes the management along with market operators can drive up prices. These are some of the reasons why the market rewards and punishes these companies disproportionately. If these companies succeed, the market will be after these stocks and investors will suddenly have multi-baggers in their portfolio. However, if they falter, the stocks would be severely punished. Overnight the stocks can become absolute dud. In short, investing in small caps is not a child's play. You will have to find successful fund managers who specialise in small cap stocks. You should also pay attention to how the schemes fared during the market downturn. Also Read | 9 equity mutual funds offer over 20% CAGR in seven years. Are there any included in your portfolio? Here are some small cap schemes you can invest to create wealth over a long period. Follow our monthly updates to keep track of the performance of these schemes. Axis Small Cap Fund has been in the third quartile for 25 months now. The scheme had been in the fourth quartile for two months before that. SBI Small Cap Fund has been in the third quartile for the last 14 months. Kotak Small Cap Fund has been in the fourth quarter in the last month. The scheme had been in the third quartile earlier. Nippon India Small Cap Fund had been in the first quartile for the last two months Best small cap funds to invest in June 2025: Axis Small Cap Fund SBI Small Cap Fund Kotak Small Cap Fund Nippon India Small Cap Fund Our methodology: ETMutualFunds has employed the following parameters for shortlisting the Equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ii) When H <0.5, the series is said to mean reverting. iii) When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zero Y = Sum of all squares of X Z = Y/number of days taken for computing the ratio Downside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme = [Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore
