Returns made by the average mutual fund (MF) investor are lower than those of scheme or systematic investment plans (SIP). This is true for three broad categories–equity, debt and schemes that invest in both (hybrid) A study conducted by Axis Mutual Fund shows average annualised return made by an equity MF investor was 13.2 per cent between 2003 and 2020. On the other hand, equity SIPs and funds delivered returns of 14.5 per cent and 18.7 per cent respectively. Focus on short term returns, timing the market, impulsive investing techniques and frequent churning of the portfolio are the factors that tend to eat into the gains.
Updated Mar 12, 2021 | 15:06 IST
SEBI notification impacts bank the most. No issue on the intent of norms, SEBI is trying to limit concentration risk which is fine. This norm on valuation is an issue, need clarification. Ashwani Bhatia, SBI. (Representational Image) | Photo Credit: BCCL
Key Highlights
Maturity of all perpetual bonds shall be treated as 100 yrs from issuance date
SEBI prescribes investment limits for MF for investing in AT-1 bonds and Tier 2 bonds
Mumbai: In a recent circular dated March 10, 2021, SEBI has reviewed investment norms of instruments with special features namely AT-1 bonds (Additional Tier I bonds) and Tier 2 bonds.
Read more about Mutual funds assets touch record high, says Crisil report on Business Standard. Mutual fund assets bounced back from the decline witnessed in January
Read more about HDFC Mutual Fund sells 2.73% stake in Just Dial for over Rs 108 cr on Business Standard. The sale took place through an open market transaction
Seen shift towards organised from unorganised players
Need to be cautious of Black Swan events
The Nifty posted its highest-ever quarterly earnings per share at Rs 164.4 and beat estimates for the 2nd straight quarter. The earnings season has been better than estimates said Jinesh Gopani, Head – Equity at Axis Mutual Fund. He believes the market will be driven by money flow and improving fundamentals of the Indian economy going forward.
In an interview with ET Now he said financials, infrastructure proxies and IT internet platform companies look good from a 2-year point of view. However, he cautioned against black swan events. A dramatic rise in US 10 year yield would rattle the equity markets, he added.