The Mutual Fund industry AUM increased 5 percent in May to Rs 25.43 lakh crores. 5.54 lakh new folios were added in May bringing the total folio count to 8.32 lakh crore. Mutual funds saw a net inflow of Rs 77,000 crore in May. Inflows into
equity funds, including ELSS, stood at Rs 4,969 crore. Net inflows into index funds surged more than 12 times from Rs 18 crore in April to Rs 220 crore in May.
Inflows into Index Funds have increased as evidence mounts that active funds fail to outperform their benchmark indices. S&P Index versus Active or SPIVA has been the trusted name globally to this comparison. They report annually on how active funds have performed against benchmark indices. What gives SPIVA report credibility is that they correct the data for
survivorship bias. The SPIVA 2018 report shows that 64% of large-cap active funds underperformed S&P BSE 100 index over the past 10 years. The complete table is below.
You can access the complete report
DHFL has repaid Rs 962 crore in delayed interest payments on Non-Convertible Debentures. The company also clarified that the payments were made within the cure period of seven working days in its
release filed with the exchanges on June 11. Credit rating agencies including ICRA and Crisil have removed the company from the watch with negative implications. Per SEBI guidelines, once security is rated ‘D’, the rating agencies would have to wait for three months before evaluating any upgrade.
Howard Marks, the legendary investor at Oaktree Capital, in his recent newsletter described the three stages of a bull market as -
Tax Harvesting is a technique that utilizes the Rs 1 lakh annual LTCG exemption by selling and buying back part of your investment such that you “realize” gains and not pay taxes on them. At a 10 percent LTCG tax rate, you could save up to Rs 10,000 in LTCG taxes every year by doing this diligently. You can learn the details here. Stage 1: when only a few forward-looking people begin to believe things will get better Stage 2: when most investors realize improvement is actually underway Stage 3: when everyone concludes that things can only get better forever
A quick twitter survey revealed, 25% of investors think we are in Stage 1, 35% in Stage 2 and 40% think we are in Stage 3. What do you think?
You can read the complete newsletter
. here Index Returns
Index Weekly open Weekly close Change BSE Sensex 39,615.90 39,452.07 -0.41% Nifty 11,870.65 11,823.30 -0.40% S&P BSE SmallCap 14,657.09 14,365.93 -1.99% S&P BSE MidCap 14,906.38 14,720.99 -1.24% Source- BSE/NSE Top 5 best performing funds Source – Kuvera.in Top 5 worst performing funds Source – Kuvera.in Top 5 best performing ELSS funds Source – Kuvera.in
We saw the most inflows in these 5 Funds –
What investors bought Source – Kuvera.in
We saw the most outflows in these 5 Funds –
What investors sold Source – Kuvera.in Movers & Shakers 1/ has announced that Binod Kumar Mishra has ceased to be the Chief Operating Officer and Key Personnel of SBI Funds Management Private Limited. Naveen Kumar Jha has been appointed in his stead. SBI Mutual Fund
has announced that Rakesh Suri – Fund Manager – Fixed Income has ceased to be the Fund Manager and Key Personnel of DHFL Pramerica Asset Management Private Limited, with effect from 07 June 2019. DHFL Pramerica Mutual Fund
Gaurav Rastogi is the CEO of
Kuvera.in: India’s first completely free Direct Mutual Fund investing platform.