X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
MFs on roll as 1HFY00 collections surpass FY99 - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 6, 1999

    MFs on roll as 1HFY00 collections surpass FY99

    Mutual fund (MFs) collection figures released by the Securities and Exchange Board of India (SEBI) reveal that MFs clocked collections of Rs 210 bn in 1HFY00, which is marginally lower than the amount they collected in whole of last year.

    Gross collections posted by MFs over the period April-September 1999 amounted to Rs 210 bn, which is just shy of the Rs 227 bn figure last year. The net inflow (sales less repurchases) in the first six months of the current year is also higher at Rs 67 bn (Rs 10 bn in FY99). This seems to indicate that while on the one hand investors investing in MFs has increased significantly, on the other hand, investors exiting from MFs has also declined by a large percentage.

    Several factors are responsible for increased investor interest in MFs over the past 12 months. The main factor that has influenced investor perception is the tax sops offered to the MF investor in the last budget. Dividends from MF schemes were made tax-free in the hands of investors and tax breaks were offered to equity-oriented balanced schemes.

    Another factor that has fuelled demand for MFs is the improved performance of the stock markets. While earlier pharma, software and fast-moving-consumer goods (FMCG) stocks lead the stock market rally, later on, even the cyclicals (cement, commercial vehicles, metals), media and housing stocks started posted encouraging gains.

    Rising investor inclination towards MFs can also be attributed to the fact that rich valuations of software, pharma and FMCG stocks have put these companies beyond the reach of the average retail investor. Investors who wish to participate in the rising fortunes of software, pharma and FMCG companies prefer to route their investments through MFs, which are more 'affordable'. In fact, after witnessing the large inflows, several MFs have launched dedicated pharma, software and FMCG funds.

    Finally, innovative products and services like gilt funds, balanced funds, systematic investment plan and monthly income plans, have invoked investor interest and have increased the options at his disposal.

    However, investor frenzy is not evenly spread across the MF segment. UTI and bank-sponsored MFs have lagged behind, while their private sector counterparts have stolen a march over them, despite entering the fray only a few years ago.

     

     

    Equitymaster requests your view! Post a comment on "MFs on roll as 1HFY00 collections surpass FY99". Click here!

      
     

    More Views on News

    The Right Financial Advisor Is Around the Corner (Outside View)

    Mar 10, 2016

    An opportunity to find an impeccably trustworthy and competent financial guardian is in the offing.

    Why financial planning should be dull and boring (Mutual Fund Corner)

    Feb 29, 2016

    Most financial planners come out as whiz kids who throw around financial jargon. But financial planning can be actually easy, provided one follows a disciplined approach.

    What Are E-Wallets And How To Use Them (Mutual Fund Corner)

    Feb 12, 2016

    PersonalFN highlights the benefits of parking a portion of your expenses in e-wallets and using them efficiently.

    Is Consumption Boom Over In India? (Mutual Fund Corner)

    Feb 2, 2016

    Mutual funds take a bearish call on the FMCG sector. The sector has started playing out due to a combination of slower growth and expensive valuations.

    How to Find a Saint Amongst Sinners? (Mutual Fund Corner)

    Feb 1, 2016

    Ethical practices help build long lasting relationships, and healthy long-term business relationships are often mutually rewarding. But PersonalFN is of the view that the financial services industry in India seems to have forgotten this.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    MARKET STATS