Alternate investment funds: An industry at risk of death by a thousand circulars
1 week, 1 day ago

Alternate investment funds: An industry at risk of death by a thousand circulars

Live Mint  

Everybody loves a good fight; a clash of equals can be an engaging test of skills if fair play is assured. The Securities and Exchange Board of India had permitted AIFs to issue units as partly or fully paid, with RBI’s Form INVI allowing the same. Despite AIFs bringing in convertible currency funds, their $1.5 billion overseas investment allowance hasn’t been renewed in over 30 months, while mutual funds have had at least two renewals. Sebi’s new ‘specified investment fund’ regime lets mutual funds invest in nearly the same areas as Category III AIFs, with a minimum ticket size one-tenth that of AIFs. Combined with the tax advantage of mutual funds and the dismal lack of clarity on Category III AIF taxation, it’ll be a miracle if AIFs see any investor interest in a few years.

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History of this topic

Specialized Investment Funds: The next investment frontier for an affluent India
2 weeks, 5 days ago

Specialized Investment Funds: The next investment frontier for an affluent India

Live Mint  

India’s capital market participation has got a significant boost with the introduction of a new investment product category: Specialized Investment Funds. India's household financial assets are growing at a compound annual growth rate of ~12% per Reserve Bank of India estimates, with equities and mutual funds capturing a larger portfolio share. From FY20 to FY24, mutual fund assets under management …

Alternative investment funds: Dispelling myths and unlocking potential
2 weeks, 6 days ago

Alternative investment funds: Dispelling myths and unlocking potential

Live Mint  

Alternative Investment Funds in India have achieved a significant milestone, crossing an estimated ₹5 trillion in funds raised, with investment commitments surpassing nearly ₹12 trillion as of September. Read this | AIFs face risk of large investors moving away as Sebi tightens rules Compared to Mutual Funds with assets under management worth around ₹67 trillion, AIFs clearly have a long …

Indian real estate attracts ₹75,500 cr investment from AIFs; highest among all sectors: Anarock
1 month, 1 week ago

Indian real estate attracts ₹75,500 cr investment from AIFs; highest among all sectors: Anarock

Live Mint  

New Delhi, Dec 2 Investment in Indian real estate by Alternative Investment Funds has touched nearly ₹75,500 crore in more than a decade, the highest among all sectors with a 17 per cent share in the total inflow through this route, according to Anarock. "Latest SEBI data compiled by Anarock indicates that out of a total of ₹4,49,384 crore AIF …

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week
1 month, 4 weeks ago

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week

Live Mint  

Top News The Securities and Exchange Board of India, in its recent circular, has introduced an abridged Common Application Form for certain Foreign Portfolio Investors. Franklin AMC has launched new fund offers In the mutual fund space, Franklin Templeton Asset Management Company has launched a New Fund Offer for the Franklin India Arbitrage Fund. These developments across regulatory reforms, capital …

Sebi proposes reforms for angel funds, lowering entry barriers and enhancing investor flexibility
2 months ago

Sebi proposes reforms for angel funds, lowering entry barriers and enhancing investor flexibility

Live Mint  

The Securities and Exchange Board of India has proposed sweeping changes to the regulatory framework governing angel funds under Alternative Investment Funds, aiming to boost investor participation and provide more flexibility to fund managers. However, Sebi argues that angel funds provide distinct advantages, including professional management, streamlined operations, and easier access to startup opportunities, warranting their continued inclusion under AIF …

Sebi permits mutual funds to invest in overseas funds with limit on exposure to Indian securities
2 months, 1 week ago

Sebi permits mutual funds to invest in overseas funds with limit on exposure to Indian securities

Live Mint  

The Securities and Exchange Board of India has permitted mutual funds to invest in overseas mutual funds or unit trusts that invest a portion of their assets in Indian securities. “In order to facilitate ease of investment in overseas MF/UTs, to bring transparency in the manner of investment, and to enable Mutual Funds to diversify their overseas investments, the following …

Stricter Norms For AIFs, Managers To Prevent Misuse Of Fund Structures, Check Sebi Proposal
11 months, 3 weeks 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 …

SEBI and RBI are investigating alternate investment funds’ attempts to circumvent regulations
1 year, 2 months ago

SEBI and RBI are investigating alternate investment funds’ attempts to circumvent regulations

The Hindu  

Market regulator Securities and Exchange Board of India and the Reserve Bank of India are investigating a dozen cases of alternate investment funds allegedly being used to circumvent regulations, including “evergreening” of stressed loans, according to three sources with direct knowledge of the matter. SEBI has detected at least a dozen cases involving ₹150-200 billion where AIFs have been misused …

Alternative investment funds in a fix as SEBI’s demat deadline of Oct 31 looms: Report
1 year, 3 months ago

Alternative investment funds in a fix as SEBI’s demat deadline of Oct 31 looms: Report

Live Mint  

Alternative investment funds are in a fix over the market regulator’s diktat to dematerialise units of funds with a corpus of ₹500 crore or more by October 31, reported Business Line. The industry may reach out to the Securities and Exchange Board of India seeking extension of timeline, grandfathering of existing investments and exemption for funds whose life is ending …

Alternative investment funds and innovative opportunities for investors
1 year, 4 months ago

Alternative investment funds and innovative opportunities for investors

Live Mint  

Over the past few years, alternative investment funds have evolved as a popular investment vehicle. Over the previous seven years, the AIF category in India has increased tenfold, with assets under administration totalling ₹7 trillion, according to the Indian Association of Alternative Investment Funds. Compared to a decade ago, when overseas investors infused majority of the capital, almost 80-90% of …

Mutual funds invest more than Rs 2,400 crore in equities in May
1 year, 7 months ago

Mutual funds invest more than Rs 2,400 crore in equities in May

India TV News  

New Delhi: After withdrawing capital from equities in April, mutual funds put in over Rs 2,400 crore in stocks last month, primarily due to robust GDP growth, controlled inflation levels, and balanced liquidity in the economy. "Stable GDP growth, low inflation, investor-friendly policies, and global market sentiments towards emerging economies play a significant role in attracting investments from both mutual …

What are Alternative Investment Funds?
2 years, 1 month ago

What are Alternative Investment Funds?

Business Standard  

Alternative Investment Fund or AIF is any fund established in India which is a privately pooled investment vehicle that collects funds from sophisticated investors, both Indian or foreign, for investing. They include venture capital funds like angel funds, SME Funds, social venture funds, infrastructure funds and such other AIFs as may be specified. Category III AIFs are funds which employ …

Indian funds’ overseas investment plans run into RBI barrier
2 years, 6 months ago

Indian funds’ overseas investment plans run into RBI barrier

Live Mint  

Multiple Indian funds have urgently petitioned the Securities and Exchange Board of India to ease the overseas investment cap for Alternative Investment Funds to avoid missing out on deals but are facing a steep battle amid the sharp fall in the rupee in recent months, three people aware of the development said. Overseas investments by Alternative Investment Funds cumulatively hit …

How regulations have failed our fixed-income securities market
3 years, 3 months ago

How regulations have failed our fixed-income securities market

Live Mint  

The March 2020 redemption debacle will always be remembered as a moment of reckoning for India’s fixed- income mutual fund industry. Amid the denigration inflicted upon the industry, perhaps the greatest error of judgement pertained to the convenient omission of the fact that India lacks a credible secondary market for corporate debt securities. This means that the risk of holding …

AIFs’ returns trail Nifty across 5 yrs
4 years, 3 months ago

AIFs’ returns trail Nifty across 5 yrs

Live Mint  

Alternative investment funds used by wealthy and sophisticated investors fetched lower returns than the plain vanilla Nifty index in the five years beginning FY14, India’s first AIF industry benchmarks released by Crisil Research showed. While the Nifty total returns index from FY14 till 30 September 2019 stood at 12.8%, the pooled internal rates of return for category I and II …

Mutual fund redemption pressure continued in August
4 years, 4 months ago

Mutual fund redemption pressure continued in August

Deccan Chronicle  

Mumbai: Retail investors in mutual funds continued to book profits in equity-linked funds in August just as they did in July. Equity mutual funds saw almost daily redemptions in August barring a few days of net buying as per monthly data now available with the Securities and Exchange Board of India. As per data released by custodians to Sebi, August …

Investment Funds In India : A Legal Handbook
4 years, 4 months ago

Investment Funds In India : A Legal Handbook

Live Law  

Structuring a fund requires knowledge of investment techniques and astute strategies for portfolio design. The selection of the fund vehicle itself is driven by various considerations; and deciding the best- suited fund vehicle requires an understanding of current. The selection of the fund vehicle itself is driven by various considerations; and deciding the best- suited fund vehicle requires an understanding …

Equity MFs see first outflows since 2016
4 years, 5 months ago

Equity MFs see first outflows since 2016

Live Mint  

Equity mutual funds saw a net monthly outflow for the first time in more than four years as investors booked profits after a sharp rally, with some of them ploughing the money back into safer assets such as gold and debt funds, worried about the recent exuberance in stock prices. July saw a net outflow of ₹2,480.35 crore from equity …

Coronavirus Lockdown, Weak Investor Sentiment Impact Mutual Funds' NFO
4 years, 8 months ago

Coronavirus Lockdown, Weak Investor Sentiment Impact Mutual Funds' NFO

News 18  

The number of proposals for new fund offers filed by mutual fund houses with markets regulator Sebi has been dwindling since past few months largely due to the nationwide lockdown and its impact on overall investor sentiment. Jimmy Patel, MD and CEO, Quantum Mutual Fund said the industry is grappling with fixed income funds facing redemption pressure last month and …

Investors rush to exit risk funds
4 years, 8 months ago

Investors rush to exit risk funds

Live Mint  

Investors in credit risk funds ran for exits, redeeming units worth ₹19,238.98 crore in April, after six of Franklin Templeton India’s funds in the category collapsed. Graphic: Sarvesh Kumar Sharma/Mint Debt funds, which saw an outflow of ₹1.94 trillion in March, received overall inflows of ₹43,431.55 crore, primarily into liquid schemes, corporate bond funds, banking and PSU funds, overnight funds …

Franklin Templeton fiasco | What does it mean for investors in mutual funds? | The Hindu In Focus Podcast (Expert View)
4 years, 8 months ago

Franklin Templeton fiasco | What does it mean for investors in mutual funds? | The Hindu In Focus Podcast (Expert View)

The Hindu  

Franklin Templeton, one of India’s top 10 mutual fund houses, announced last week that it would be winding up six of its debt schemes. The development sent shockwaves through the mutual funds industry, and this week, the RBI announced a ₹50,000-crore “liquidity window” specially for mutual funds, to help them tide over redemption pressures. And what does this mean for …

RBI's liquidity support for MFs may struggle to be effective; Fitch says success will depend on banks' appetite to take up risks
4 years, 8 months ago

RBI's liquidity support for MFs may struggle to be effective; Fitch says success will depend on banks' appetite to take up risks

Firstpost  

The Reserve Bank of India’s liquidity support for mutual funds may struggle to be effective, as its success will hang on banks’ appetite to take up the risks involved, amid low capital headroom and a likely increase in fresh non-performing loans, according to Fitch New Delhi: The Reserve Bank of India’s liquidity support measures for mutual funds may struggle to …

Signalling support: The Hindu Editorial on RBI relief for mutual funds
4 years, 8 months ago

Signalling support: The Hindu Editorial on RBI relief for mutual funds

The Hindu  

The Reserve Bank of India’s decision to open a special facility to ensure the availability of adequate liquidity for the mutual fund industry is a timely move in signalling to investors that the central bank is alert to the need to preserve financial stability in these challenging times. In assigning ₹50,000 crore exclusively for commercial banks to lend to mutual …

Committed to India in the long term, says SoftBank’s India head Sumer Juneja
5 years, 1 month ago

Committed to India in the long term, says SoftBank’s India head Sumer Juneja

Firstpost  

Masayoshi Son, CEO and Founder of SoftBank, during his India visit, said that he wants to bet on the future. We have an optimistic outlook, a fundamental belief in the country’s potential and remain committed to India in the long term,” Sumer Juneja, Partner and Head of India, SoftBank Investment Advisers, told Tech2. “SoftBank’s other investments in India might come …

Opinion | The unintended consequences of Sebi rules on exit loads for liquid funds
5 years, 2 months ago

Opinion | The unintended consequences of Sebi rules on exit loads for liquid funds

Live Mint  

Over the years, capital markets regulator Securities and Exchange Board of India has done a remarkable job in introducing regulations which make mutual funds transparent and accessible and, more importantly, in shaping asset management companies’ behaviour towards working in the interest of investors. Given that liquid funds and/or debt funds are not FDs and that their returns should not be …

Mutual fund assets rise to Rs 25.43 lakh cr in May; fixed maturity plans continue to see outflow
5 years, 7 months ago

Mutual fund assets rise to Rs 25.43 lakh cr in May; fixed maturity plans continue to see outflow

Firstpost  

New Delhi: Fixed Maturity Plans witnessed outflow for the second straight month in May as investors pulled out Rs 1,797 crore from the schemes, amid many non-banking finance companies grappling with debt woes. However, latest data from industry body AMFI on Monday showed that average Assets Under Management of mutual funds rose to Rs 25.43 lakh crore in May from …

The dangers of high mutual fund inflows
6 years ago

The dangers of high mutual fund inflows

Live Mint  

Mumbai: Nothing sedates rationality like large doses of effortless money,” Warren Buffett wrote in his letter to Berkshire Hathaway shareholders in 2000. In September and October, for instance, when foreign institutional investors sold equities worth ₹37,250 crore, mutual funds provided the backstop with net purchases worth Rs35,700 crore. So we end up with a situation where mutual funds are forced …

Mutual Funds add Rs 1.24 lakh cr to asset base in 2018 on SIP flows, strong retail participation
6 years ago

Mutual Funds add Rs 1.24 lakh cr to asset base in 2018 on SIP flows, strong retail participation

Firstpost  

The asset under management of the industry grew by 5.54 percent or Rs 1.24 lakh crore to Rs 23.61 lakh crore at the end of December 2018, up from Rs 22.37 lakh crore at the end of December 2017, latest data available with the Association of Mutual Funds in India showed. New Delhi: Mutual funds have added a staggering Rs …

Mutual funds add Rs 3 lakh-cr to assets base in 2018, eyes more traction in new year
6 years ago

Mutual funds add Rs 3 lakh-cr to assets base in 2018, eyes more traction in new year

Firstpost  

New Delhi: Mutual funds have added a whopping Rs 3 lakh crore to their asset base in 2018 and the uptrend may continue in the new year, helped by a consistent rise in the SIP flows and strong participation of retail investors despite volatile markets. “Keep in mind the quarter-end trends and the advance tax pay-out, we expect the industry …

Mutual Funds SIP flow climbs 42% to Rs7,985 crore in October
6 years, 2 months ago

Mutual Funds SIP flow climbs 42% to Rs7,985 crore in October

Live Mint  

New Delhi: Retail investors have continued to remain buoyant with SIP flows in mutual funds reaching to Rs7,985 crore in October, a surge of 42% from the year-ago level, despite stock market volatility on the back of rupee depreciation and rising crude oil prices. With this, total funds garnered through SIPs have reached to Rs52,472 crore in the current fiscal …

IL&FS rot needs to be stopped from spreading
6 years, 3 months ago

IL&FS rot needs to be stopped from spreading

Live Mint  

A tad late, but the message is finally reaching India’s regulators: Infrastructure lender IL&FS is not a business that can be allowed to fail without consequences. Some of the group’s finance companies are now missing repayments on short-term paper, even as the unlisted parent’s owners, including state-run Life Insurance Corp. of India, dawdle over an emergency infusion of funds. The …

Equity mutual funds log Rs 10,585 cr inflow in July; total investment crosses Rs 43k cr so far this fiscal
6 years, 4 months ago

Equity mutual funds log Rs 10,585 cr inflow in July; total investment crosses Rs 43k cr so far this fiscal

Firstpost  

Strong inflow pushed the asset base of equity mutual funds by more than 10 percent to Rs 8.3 lakh crore by July-end from Rs 7.5 lakh crore at end-March. New Delhi: Investors pumped a staggering Rs 10,585 crore in equity mutual funds in July, mainly driven by strong corporate earnings and near normal monsoon. With this, total inflow has reached …

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