Reena Saxena’s Post

Did you know? The MUTUAL FUND ADVERTISEMENT WARNING STATEMENT- Today’s “Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.” was earlier “Mutual Fund Investments are subject to market risks, read the offer document carefully before investing.” This change happened in the year 2000. SEBI (Mutual Funds) Regulations, 1996, mandated the disclosure of certain information in the Scheme Information Document (SID) and Statement of Additional Information (SAI), in 1996. Also in 2000, SEBI issued guidelines for advertisements by mutual funds, which included the requirement to mention CAGR for the past one, three, five years and since inception. SEBI over time observed the need to emphasize the importance of reading all scheme-related documents, to ensure that investors have access to comprehensive information before making investment decisions. Since then, the Offer Document (OD) got included the Scheme Information Document (SID) and Statement of Additional Information (SAI), which displays more detailed and specific information about the mutual fund scheme. Tell me if I've missed on something! #mutualfund #investment #portfoliomanagement

The Premier Miton Strategic Monthly Income Bond fund gets an RSMR rating. The fund is managed by a strong team of managers, credit analysts and dealers, who have developed a unique approach to managing the fund based on a ‘triangle of trust’. The team have consistently applied their coherent investment process since the fund was launched and this has been reflected in the fund’s performance. Find out more about why we rate this fund on the RSMR website: https://lnkd.in/e_JA8jCA And read about the reasons behind the rating in Investment Week: https://lnkd.in/ePmhkaHR #fundrating #investmentresearch #investmentmanagement #premiermiton #incomebond

The Premier Miton Strategic Monthly Income Bond fund gets an RSMR rating. The fund is managed by a strong team of managers, credit analysts and dealers, who have developed a unique approach to managing the fund based on a ‘triangle of trust’. The team have consistently applied their coherent investment process since the fund was launched and this has been reflected in the fund’s performance. Find out more about why we rate this fund on the RSMR website: https://lnkd.in/en8BiGK9 And read about the reasons behind the rating in Investment Week: https://lnkd.in/ePmhkaHR #fundrating #investmentresearch #investmentmanagement #premiermiton #incomebond

Interval funds continue to dominate the largest unlisted closed-end funds. Earlier this year, we released a report in partnership with FUSE Research Network that included the largest unlisted CEFs by type and category. Of the 10 largest funds, eight were interval funds and two were tender-offer funds. UMB Bank FUSE Research Network Maureen Quill #UMBFundServices #intervalfund #valuation #alternativeinvestments #sponsored #tenderoffer #financialadviser #investmentmanager #fairvalue #redemption #regulation #fees

Have you heard about SEBI's recent move regarding mid & small-cap mutual fund schemes? SEBI has taken steps to moderate inflows into these schemes, aiming to protect investors from potential risks associated with high valuations. Fund houses now have 21 days to develop policies to achieve this goal, which may involve: Limiting investment amounts: This could come in the form of capping SIPs or lumpsums, or even temporarily halting fresh inflows. Increased transparency: Fund houses will be required to clearly disclose their chosen methods of moderating inflows on their websites. SEBI's concern is the potential for excessive risk due to inflated valuations in the mid and small-cap space. By moderating inflows, they hope to prevent fund managers from investing in overvalued stocks and safeguard investors from potential difficulties if they need to redeem their investments. What are your thoughts on this new regulation? Are you an investor in mid and small-cap funds? How do you think this might impact your investment strategy?

An SWP is a tool that allows one to regularly withdraw a predetermined amount of money from their mutual fund investments over a specific period. It is the other side of the investment equation—the reverse of an SIP—that facilitates a phased exit from investments. Let’s consider the multiple benefits of pursuing an SWP. Read more at: https://lnkd.in/dwMwC7XX

In a recent insightful article from Finshots, the introduction of SEBI's new asset class has sparked much conversation, and I find myself in agreement with the article's perspective. The piece sheds light on this innovative effort by SEBI to cater to a segment of investors that have long been in a sort of financial no-man’s-land — investors too big for mutual funds but not quite ready for the high stakes of Portfolio Management Services (PMS). The article highlights several key points: SEBI's initiative provides a fresh avenue for investors with portfolios between ₹10 to ₹50 lakhs, offering more sophisticated yet accessible investment strategies. This new asset class introduces instruments like Long-Short Equity Funds and Inverse ETFs, allowing for enhanced risk management and flexibility. Drawing from global practices, SEBI is offering alternatives akin to hedge fund-lite strategies found in markets like Europe and the US, enabling a broader range of investment options. Supporting the article’s perspective, I believe this move could democratize access to advanced financial strategies that were previously the domain of the elite. It marks a progressive step towards inclusivity in financial planning, providing a bridge for those who have outgrown mutual funds. This increased access to sophisticated investment strategies without the hefty entry fees can empower more investors to manage their portfolios effectively. Furthermore, while recognizing the challenges mentioned in the article — such as the need for skilled active management and the mixed historical performance of similar global funds — it seems that the benefits outweigh the risks. The initiative encourages a more tailored approach to investing, suiting a diverse range of investor profiles. As these opportunities unfold, a balanced approach is advised. It would be interesting to hear if others believe this could indeed democratize sophisticated investing or whether it poses challenges too complex for average investors to navigate. How do you see this shaping the investment landscape? Let's discuss! 💬 #SEBIGlowUp #InvestmentInnovation #FinancialPlanning #InvestSmart

The new SEBI consultation paper on “New Asset Class” and creating a structure for differentiated, higher risk strategies looks very promising. Gist: 1. New asset class that falls between mutual funds and PMS. Why? gap in the current investment spectrum, where mutual funds cater to retail investors with varying risk appetites, while PMS and alternative investment funds (AIFs) aim at more sophisticated, high-networth investors. Investment Strategies(Like Hedge fund Strategies) : Long-Short Equity Funds, Inverse ETFs/Funds for inverse index returns. Derivative exposure - Permitted. Min Amount: Rs 10 lakhs. option to choose options such as Systematic Investment Plan (SIP), Systematic Withdrawal Plan (SWP), and Systematic Transfer Plan (STP) #Investing #NewAssetClass #Sebi #Opportunity What to you think, is it a good move? Credits:

Off the back of an impressive calendar year 2023 result driven by strong #sharemarket investments, MLC Asset Management has flagged further bright spots in areas like #emergingmarkets and #unlistedassets.

A tale of two fund houses: PPFAS vs Quant MF 1. Investment Strategies: - PPFAS follows a 'buy-and-hold' strategy, where fund managers prefer to stick with their investment choices for a long period. The fund manager, Rajeev Thakkar, is described as a focused long-term investor who values the fundamentals of stocks and is willing to pay a higher price for growth potential. - Quant, on the other hand, relies heavily on quantitative models and is described as a macro-driven house. Sandeep Tandon, the fund manager, is portrayed as an opportunistic and risk-focused investor who moves in and out of stocks quickly. The fund is characterized by a higher portfolio turnover ratio and is often labelled as a momentum investor. 2. Risk Approach: - PPFAS is portrayed as risk-averse and focuses on playing the extreme long game. The measures of risk, namely beta and standard deviation, are reported to be lower for PPFAS Flexi Cap Fund compared to Quant Active Fund. - Quant, while not explicitly labelled as high-risk, is presented as a fund that does not want to miss any significant opportunities that the market presents. The article suggests that the fund may be more adaptable and opportunistic in its approach. 3. Performance and AUM: - Both funds have achieved significant AUM milestones, with Quant reaching INR 55,007 crore and PPFAS Mutual Fund reaching INR 61,943 crore. Quant achieved this feat in a little over six years, while PPFAS took around 11 years. - Quant is highlighted for its good returns during a bull market, attracting retail investors, while PPFAS is known for delivering alpha over the long term. 4. Folio Management: - Quant manages approximately 52 lakh folios, whereas PPFAS oversees around 30 lakh folios. This indicates a higher retail investor base for Quant. 5. Investment Approach: - Quant funds use big-picture analysis to make small-scale investing choices, with a focus on quantitative models and macro-driven analysis. - PPFAS primarily follows a 'buy-and-hold' strategy, emphasizing stability and longevity in its investment approach. In conclusion, PPFAS and Quant have distinct investment philosophies, risk approaches, and performance characteristics, catering to investors with different preferences and risk appetites. While PPFAS focuses on a long-term, value-driven approach, Quant embraces a more dynamic and opportunistic strategy. Source: https://lnkd.in/dvSt9vQQ #mutualfunds #sip #investments