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‘Mutual funds continue to do better on post-tax basis’:
For MFs, Sebi brings in flexi-cap category.
MFs no doubt continue to do better on post-tax basis when compared with other modes of investments like Bank, Post office etc.,
An expert spoke on the difference between investing in mutual funds and PPF or NSC. Singh said that when one is looking at a large sum of money, mutual funds continue to do better on a post-tax basis. He also spoke on the dilemma in front of Indian savers at present and added that the tenure of investment is very important in making the right choice.
According to the new guidelines of SEBI, MF schemes in the new category will have to adopt the name flexi cap. Existing schemes can reclassify themselves to this category. However, this constitutes a change in attributes and such schemes will have to give investors a 30-day window to exit, without any fee. AMFI has requested Sebi to create the category.
The markets regulator has introduced a ‘flexi-cap category’ for mutual funds (MFs), which will be required to invest at least 65% of the corpus in equity but will have no restrictions on investing in large-, mid- or small-cap company stocks.
In September, the Securities and Exchange Board of India (Sebi) came up with new rules for multi-cap funds, which are required to invest at least 25% of the corpus in large-, mid- and small-caps. It raised concerns among industry players over the possibility of existing multi-cap funds being forced to buy mid- and small-cap stocks despite these segments not having the liquidity to absorb large flows from MFs. After the circular was issued, the Association of Mutual Funds in India, or Amfi, asked Sebi to create a new flexi-cap category, which will not have such stipulations.
The new MF category will be called flexi-cap schemes. Existing schemes will be able to reclassify themselves. However, this constitutes a change in attributes, and such schemes will have to give investors a 30-day window to exit, without any exit load. “The option to convert an existing scheme into flexi-cap is very good. Rather than introducing new funds, fund houses should convert existing multi-cap funds into flexi-cap. This would be better for investors,” say experts.
Sebi has also restored the pre-covid cut-off timings of MFs with effect from 9 November. It has sent a letter to Amfi in this regard. In April, Sebi reduced the cut-off timings of all MFs from 3pm to 1pm and for liquid and overnight schemes from 1.30pm to 12.30pm. The action follows an RBI move to extend debt market timings for most securities to 3.30pm, also with effect from 9 November.
ICICI Prudential Life Insurance raises ₹1,200 crore in maiden NCD sale
The NCDs are in the nature of subordinated debt, with a coupon of 6.85% per annum and a tenor of 10 years with a call option at the end of five years, and annually thereafter
United Breweries Q2 net profit falls 97% to ₹3.61 crore
- Revenue from operations declined 37.61% to ₹2,238.96 crore during the quarter under review
- The company said it recorded ‘significant sequential volume growth’ during the quarter
Sebi restores pre-covid cut-off time for mutual fund transactions
- In April, Sebi had reduced the cut-off timings of all mutual funds to 1 pm from 3 pm and for liquid and overnight schemes to 12.30 pm from 1.30 pm
Where WhatsApp Pay fits into India’s growing digital payments space
Whatsaap enters India’s payments ecosystem standing on its huge user base, and its parent’s partnership with Jio, but facing a new cap on market share
Jet submits revival plan to NCLT
- On 18 October, lenders to Jet Airways accepted a ₹1,000-crore bid by a consortium of UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan to revive and operate the airline that last flew on 17 April, 2019.