The Indian equity market performed very well in 2021 on the back of economic recovery, robust corporate earnings growth, comfortable liquidity conditions, and active participation from retail investors. The market rally during the year was broad-based; most stocks and sectors participated in the rally. As a result, mutual funds that invest across market caps benefitted…
The year 2021 belonged to the mid-cap and small-cap stocks. Sustained buying from investors during the year took the Nifty Smallcap 250 index and the Nifty Midcap 150 index to an all-time high level of 10,014 and 12,219, respectively on October 18, 2021. A broad-based market rally during the year meant that Mid-cap Funds and…
Mid-cap Funds have recorded strong performance in the last one and a half years amid a sharp rally in most mid-cap stocks. However, going forward, the volatility in equity market is expected to intensify due to expensive valuations, inflation concerns, Omicron threat, among other factors. Consequently, only a limited set of mid-cap stocks can showcase…
In its latest circular, SEBI has announced the extension of deadline for implementation of Risk Management Framework as well as two-tier structure for benchmarking of mutual fund schemes by three months. Both these norms will now be implemented from April 01, 2022. SEBI has extended the timeline for implementation based on the request received from the Association of Mutual Funds in…
In 2018, SEBI had introduced categorization norms for mutual funds to prevent duplication of schemes and to ensure that schemes remain true to its investment mandate. This rule aimed to help investors make informed decisions, thereby making the mutual fund selection process easier for them. However, the pace at which mutual fund houses are launching…
SEBI’s circular on Potential Risk Class (PRC) Matrix for debt mutual funds came into effect from December 01, 2021. The PRC matrix will apply to all existing debt schemes as well as all upcoming launches. The existing Risk-o-Meter is based on the portfolio of the scheme and captures the actual risk in the portfolio taken by…
The equity market has turned volatile once again amid profit booking following a sharp rally in the last few months. With the ongoing concerns about the new COVID-19 variant it is difficult to predict the direction of the market from here on. Meanwhile, the RBI kept interest rate unchanged, to support the economic growth as certain activities…
SEBI had recently prescribed a dual benchmarking structure for mutual funds to bring uniformity in benchmark of schemes within a particular category. As per SEBI’s circular, the first-tier benchmark will reflect the category of the scheme viz. Large-cap, Mid-cap, Multi-cap, etc., while the second-tier benchmark will demonstrate the investment style/strategy of the fund manager within the category for instance, growth,…
Edelweiss Mutual Fund has launched another scheme in the Bharat Bond series. The new fund offer (NFO) of Bharat Bond ETF will mature in 2032 and is open for subscription from December 03, 2021 to December 09, 2021. Earlier the fund house had launched Bharat Bond ETFs maturing in 2023, 2025, 2030, and 2031. The minimum investment amount…
During its board meeting held in September 2021, SEBI had cleared the launch of Silver Exchange Traded Funds (ETFs) allowing domestic mutual funds to launch schemes tracking silver. It has now specified operating norms for Silver ETFs to ensure uniformity of the schemes. These new norms will come into effect from December 09, 2021. According…
