Benchmark plans Hang Seng as underlying; Reliance looks at MSCI.
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Significant inflows into income plans and liquid funds boosted net assets of domestic mutual funds in July, according to data posted by Securities and Exchange Board of India (Sebi) on its website.
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Why a well-managed and diversified fund will always beat a benchmark.
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You are right in your belief that the fund manager has an important role in the performance of a fund. But, remember that other factors such as the funds objective and style, fund houses expertise, and so on also have a hand in its success.
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Sebi directs fund houses, brokers and intermediaries to indicate such deals daily.
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With entry load on all mutual funds banned from August 1, fund houses are finding different ways to pay distributors for promoting their schemes.
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Govt's divestment plans encourage funds to bet big on state-owned firms.
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Is it better to invest short-term money in an arbitrage fund instead of liquid funds? The returns from the former, being equity-oriented, are tax-free after a year, while those of a liquid fund, which is a debt fund, would be taxable. More, in a falling interest rate scenario, liquid funds are not expected to return 8 to 9 per cent as earlier. On the other hand, arbitrage funds can comfortably return 7 per cent. Suggest some good arbitrage funds.
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Industry sources said fund houses could increase the trail commission for equity funds to compensate distributors. At present, fund houses pay 0.25 to 0.75 per cent as trail commission to distributors for equity schemes.
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Nearly 56 per cent of open-ended equity funds have selected good benchmarks, while remaining 44 per cent have a weak selection in this regard, according to a study by Crisil FundServices (Crisil).
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Newly-deleveraged balance sheets make their shares attractive.
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The countrys burgeoning mutual fund industry is expected to see its assets growing by 29 per cent annually in the next five years, with high household savings rate and low retail penetration attracting foreign asset managers, a report has said.
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Till now, I have largely been confined to mutual funds, on which I have been spending Rs 4,000 a month. This amount flows mostly to Fidelity Tax Advantage, but half of that amount I plan to redirect to Franklin India Taxshield. Also, I plan to increase my emergency fund to Rs 72,000 from Rs 25,000 by adding Rs 2,000 per month and contribute Rs 4,000 a month towards equity-linked savings schemes (ELSS). I intend to add a sum of Rs 2,000 a month to my savings.
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I had invested in Magnum Tax Gain and Fidelity Tax Advantage via Systematic Investment Plans (SIPs). Despite the recent regulation by Sebi abolishing the entry loads, my investments in August were made subject to an entry load.
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