In February, mutual funds continued to trim positions in heavyweights such as Bharti Airtel (Rs 2,800 crore), HDFC Bank (Rs 1,700 crore), Reliance Industries (Rs 1,500 crore) and HDFC (Rs 1,400 crore) as investors continued to redeem money in equity schemes. Positive flows were seen in NTPC (Rs 700 crore), IndusInd Bank (Rs 700 crore) and L&T (Rs 650 crore). Most large MFs remained underweight on banking and overweight on capital goods. Mid-cap additions included SAIL (Rs 540 crore), IRCTC (Rs 430 crore) and Jindal Steel (Rs 290 crore), while major reductions included Dixon Tech (Rs 440 crore), Max Fin (Rs 400 crore) and PI Industries (Rs 390 crore). Small-cap additions were PVR (Rs 380 crore), Railtel (Rs 280 crore) and ESAB (Rs 230 crore) while key reductions were Engineers India (Rs 240 crore), Indian Energy Exchange (Rs 160 crore) and Just Dial (Rs 140 crore).
Finance Ministry writes to Sebi, requests agency to withdraw perpetual bond rule
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Synopsis
The ministry s objection is to the rule that requires debt mutual funds to value perpetual bonds as a 100-year instrument from April 1. Fund managers too had raised concerns over this.
The finance ministry requested the Securities and Exchange Board of India (Sebi) Friday to withdraw the part of its Wednesday circular that changed the rules followed by mutual funds to value perpetual bonds. The capital market regulator hadn t responded to the suggestion at press time, but is expected to review the rules before they take effect on April 1, said people with knowledge of the matter. The move by the ministry was a rare instance of such a government intervention being made public, experts said.
Fund query: How to plan SIPs when you have home loan EMIs
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I am 33 years old, and had been investing in MFs through the SIP route. I was planning a for long-term investment, mainly towards a retirement corpus. But two years ago, I decided to purchase a premium apartment by a very reputed builder. Since then, I have had to temporarily stop my SIP investments to manage the down-payment, EMIs and other related expenses. I currently have investments in Axis Bluechip, Kotak Multicap, ICICI Prudential Large & Mid Cap, Aditya Birla Sun Life Equity Growth, and L&T Midcap. I wanted to know if I should exit/switch from the underperforming funds. Also, recently, I started investing ₹10,000 a month in NPS as I thought it a good choice for retirement. I plan to continue SIPs in Axis Bluechip. Should I make any changes to my plan?
Time for MFs to make their votes ‘count’
March 12, 2021
SEBI directs MFs to compulsorily vote in corporate resolutions
To improve transparency and encourage mutual funds to diligently exercise their voting rights in the interests of unitholders, SEBI’s recent circular has mandated mutual fund houses to
compulsorily vote on all resolutions involving approval.
Until now, MFs were only required to record and disclose the rationale behind exercising their voting rights in companies, but were not required to compulsorily vote.
However, MFs with no economic interest on the voting day may be exempted from compulsorily casting votes, SEBI said.
From April 1, MFs have to compulsorily vote in all corporate governance matters: changes in the state of incorporation merger and other corporate restructuring and anti-takeover provisions; changes to capital structure, including increases and decreases of capital and preferred stock issuances; stock option plans and other management co
Read more about With new players at the gates, AMCs to see stiff competition in MF space on Business Standard. Currently, nine requests for MF licence are being processed by Sebi