Passive funds set to get a fresh boost with SEBI’s new diktat
2 years, 6 months ago

Passive funds set to get a fresh boost with SEBI’s new diktat

Live Mint  

The passive fund industry got an impetus with the latest circular issued by capital markets regulator SEBI on May 23 that aims to promote passive funds. Increase in investors’ interest for index funds & ELSS: Fund Categories No of Schemes Net AUM April, 22 Net AUM April, 21 ELSS 39 1,46,077 1,25,377 Index funds 94 73,994 20,426 Gold ETFs 11 20,430 15,628 Other ETFs 124 4,12,858 2,77,570 FOF investing overseas 46 20,540 13,989 These are some of the new changes being introduced by the capital markets regulator SEBI via its circular on : Redemptions: Investors can directly approach the AMC for redemption of units of ETFs, for transactions of up to ₹25 crore without any exit load, in case of certain scenarios. Passive ELSS: In modification to an earlier circular issued on October 6, 2017, SEBI said the fund houses can launch either of the two schemes in the ELSS category: active or passive. About ELSS funds: In the latest circular, SEBI said the fund houses can launch either of the two schemes in the ELSS category: active or passive. Ankur Kapur, Managing Partner, Plutus Capital says, “Recently, SEBI has issued a circular stating that fund houses can launch passive ELSS funds.

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Sebi okays new product bridging MF, PMS
2 months, 3 weeks ago

Sebi okays new product bridging MF, PMS

Live Mint  

The stock market regulator on Monday paved the way for a new investment product bridging mutual fund schemes and portfolio management services, relaxed rules for investment advisors and research analysts, and unveiled a new framework for passively managed MF schemes, among a series of significant decisions. {{^adFree}} {{/adFree}} The Securities and Exchange Board of India said the new investment product …

Sebi imposes limits on passive mutual funds investing in sponsor group companies; details here
5 months, 2 weeks ago

Sebi imposes limits on passive mutual funds investing in sponsor group companies; details here

Live Mint  

Capital market regulator Securities Exchange Board of India has released a circular to share the limits imposed on total investment which can be made by passive mutual funds in their sponsor group companies. This followed public consultations on the recommendations of the working group, and it was later decided to streamline the norm applicable to investments by passively managed mutual …

Sebi limits passive mutual funds schemes investing in sponsor group companies
5 months, 2 weeks ago

Sebi limits passive mutual funds schemes investing in sponsor group companies

Hindustan Times  

Passive mutual funds will now have investment limits on the shares of the sponsor group companies, according to new rules notified on Monday by the Securities and Exchange Board of India. Equity-oriented exchange-traded funds and index fund investments in the sponsor group companies are capped at 35% of the scheme's net asset value. Mutual fund schemes excluding ETFs and index …

Want To Invest In Equity Mutual Funds? Know The Different Kinds And Their Benefits
8 months, 4 weeks ago

Want To Invest In Equity Mutual Funds? Know The Different Kinds And Their Benefits

ABP News  

A mutual fund scheme is known as an Equity mutual fund if the fund uses more than 60 per cent of its assets to invest in the equity holdings of various firms. Kinds Of Equity Mutual Funds When considering an equity fund to invest in, there are several types that a manager can look into and decide further, based on …

Stricter Norms For AIFs, Managers To Prevent Misuse Of Fund Structures, Check Sebi Proposal
11 months ago

Stricter Norms For AIFs, Managers To Prevent Misuse Of Fund Structures, Check Sebi Proposal

News 18  

Sebi on Friday proposed stricter norms for Alternative Investment Funds, its managers and key personnel amid instances of the instrument being used to facilitate evergreening of stressed loans and circumvention of other financial sector regulations. “While the AIF industry has registered robust growth over the years, a number of instances of AIFs being structured to facilitate circumvention of different financial …

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey
1 year, 4 months ago

Passive Funds Attracting Investors, Index Funds More Preferred Than ETFs: Survey

ABP News  

Passive funds have taken centre stage in India's mutual funds market in the past few years, increasing its market share over 17 per cent in 2023 from 1.4 per cent in 2015, according to a Motilal Oswal AMC survey released Tuesday. The survey conducted among 2,000 investors from around the country, showed that 61 per cent of investors have invested …

Passive funds gain traction among investors in India, market share witnesses growth: Study
1 year, 4 months ago

Passive funds gain traction among investors in India, market share witnesses growth: Study

India TV News  

A recent study revealed that passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of Assets Under Management in 2023 from 1.4 per cent in 2015. Low-cost nature of passive funds is biggest attraction According to the study by Motilal Oswal Asset Management Company, 61 per …

How new Sebi rules will improve passive funds’ performance
2 years, 6 months ago

How new Sebi rules will improve passive funds’ performance

Live Mint  

Market regulator Sebi has introduced a cap on the tracking error of passive funds, with effect from 1 July. No room for error “Most ETFs and index funds specify a 2% tolerance level for TE in their scheme information documents, or SIDs. More specifically, mutual fund AMCs will have to ensure that the TE of their ETFs / index funds …

Latest SEBI circular introduces a new passive ELSS scheme category
2 years, 7 months ago

Latest SEBI circular introduces a new passive ELSS scheme category

Live Mint  

The securities market regulator, SEBI came out with a circular on May 23 on ‘Development of Passive Funds’ covering a gamut of issues related to ETFs and index funds. Notably, the circular has introduced a new category of mutual fund schemes – Passive ELSS. Passive ELSS As per the latest circular, passive ELSS scheme will be based on one of …

What are pros and cons of investing in equity-linked savings schemes?
3 years, 1 month ago

What are pros and cons of investing in equity-linked savings schemes?

Business Standard  

Tax deduction of up to Rs 1,50,000 a year Lock-in period of three years No provisions of premature exit LTCG up to Rs 1 lakh is tax-free LTCG over and above Rs 1 lakh is taxable at 10% Investment up to Rs 1.5 lakh can be claimed as a deduction Suitable for investors who have a relatively high risk-taking capacity …

Top ELSS mutual funds chosen by investors in 2020-21 on Groww. Full list here
3 years, 8 months ago

Top ELSS mutual funds chosen by investors in 2020-21 on Groww. Full list here

Live Mint  

Around 54% investors above the age of 40 chose to park lumpsum amount of money in Equity Linked Saving Scheme from January 2020 till March 2021, showed data released by Groww. Around 15% of investors in the age group of 25-40 invested in ELSS funds on its platform between January 2020 and March 2021, according to Groww. Commenting on the …

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