Original analysis, reports, reviews and insights on developments in the mutual fund space and in-depth reviews
On 1st July 2024, SEBI released a consultation paper for “Introduction of Mutual Funds Lite Regulations (MF LITE) for passively managed Mutual Funds Schemes.” aimed to “reduce the compliance requirement, foster innovation, encourage competition and promote ease of entry for the MFs interested in launching only passive schemes”. In this paper, SEBI has proposed the…
Continue reading →SEBI released decisions made in its board meeting on June 27th 2024, which will significantly impact the income of finfluencers. The circular says: 1.1 The persons regulated by the Board and the agents of such persons shall not have any association, like, any transaction involving money or money’s worth, referral of a client, interaction of…
Continue reading →So far, Quant Mutual Fund has not made it clear whether it is being investigated for front-running. They have only said that they received inquiries from Sebi. It then released an FAQ that sheds no light on the investigation. The first faq is, “Has the SEBI enquiry concluded? : No, it is a regular ongoing…
Continue reading →Neil Borate of LiveMint reported on June 25th 2024, that “₹800 crore has been redeemed from Quant since news broke of Sebi’s search and seizure operation on suspicion of front-running”. On June 26th 2024, Moneycontrol reported Quant Mutual Fund net equity outflow at Rs 1,398 crore or 1.5% of AUM post-SEBI front-running probe. Investors are…
Continue reading →On June 23rd 2024, Moneycontrol reported that SEBI conducted search and seizure operations at two locations of Quant Mutual Fund on suspected front-running. In response, the AMC has confirmed via email to investors that it has received inquiries from SEBI but has not added more information. At the time of writing, information on this (first,…
Continue reading →This is an update on my mutual fund investing journey, which began on 19th June 2008. In the last three decades, I have gone from being a spend-thrift to being in debt to financial independence. New community members can refer to these articles for an account. The Financial Arrow of Time and My Journey: Driven by the…
Continue reading →This article discusses how to handle PPF accounts that are about to mature. When and how to extend it and when not to. A PPF matures after 15 financial years from the FY of opening. For example, an account opened in FY 2000-01 (or before 31st March 2001) will mature on 1st April 2016. There…
Continue reading →A reader wants to know, “Which debt mutual funds are suitable for short-term and long-term goals?” A discussion. A related question is whether debt funds are still relevant as there is no tax advantage compared to fixed deposits. Yes, debt funds are still relevant because they are necessary for rebalancing a portfolio. Also, unlike FDs,…
Continue reading →Taxation of multi-asset funds can be complicated—a simple explanation of the rules and how to choose funds in this category.
Continue reading →We discuss modifications that can make the National Pension Scheme (NPS an attractive retirement solution accommodating changing needs. The New Tax Regime has made redundant the “extra Rs. 50,000 tax saving” (or reduction in taxable income). So, finally, NPS can attract the right kind of investor. The new-generation retiree wants the flexibility to retire early…
Continue reading →A reader asks, “Which will fetch more returns over 15 years, an SIP or a lump sum investment?” Comparing the returns of a SIP with a lump sum investment has little practical use. After all, none of us will invest just once in the market or always systematically. Even if we did make the comparison,…
Continue reading →A reader says, “Given the changes in debt fund indexation benefits, I come across market veterans recommending equity savings and multi-asset funds as alternatives. I have the SBI, Kotak and Parag Parikh conservative hybrid funds in three different portfolios in my family. Would you continue to recommend these conservative hybrid funds for a long term…
Continue reading →A 30-year-old reader asks, “What MFs should I choose if I can invest Rs 1 Lakh a month?” Here are some model mutual fund portfolios for long-term goals (> 10 years away) independent of the amount to be invested. They are arranged in descending order of preference. We shall also mention relevant fixed-income options. Asset…
Continue reading →A reader says, ” Can you please let me know funds with indexation benefits apart from Parag Parikh Dynamic asset allocation fund and Edelweiss Multi Asset Allocation Fund excluding EquitySavings and Arbitrage?” A discussion. Let us begin with some context. Note: Tax rules change often. The rules mentioned here are valid as of April 2024…
Continue reading →Recently, there was some buzz on social media and a few articles about how large cap mutual funds have made a “comeback”. In this article, we discuss the performance consistency of these funds using the freefincal equity mutual fund outperformance screener (published monthly). Disclaimer: Fund performance reports present return and risk analysis of a fund with…
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