Latest news with #AMFI
NDTV
a day ago
- Business
- NDTV
Centre Launches 100-Day Drive To Help Investors Claim Dividend, Update KYC
New Delhi: The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, has launched a 100-day campaign titled 'Saksham Niveshak,' running from July 28-November 6. Saksham Niveshak: 100 Days Campaign is LIVE! 🗓️ From 28th July to 6th November 2025 Are you still holding physical share certificates? Companies are trying to reach you at your last known address – don't miss out on your rightful benefits! ✔️ Update your KYC ✔️ Dematerialise… — IEPFA (Investor Education and Protection Fund) (@authorityiepf) July 30, 2025 This national drive is aimed at empowering shareholders by creating awareness about unclaimed dividends held by companies and guiding them through the process of updating their KYC and nomination details to reclaim their rightful dividend, according to Ministry of Corporate Affairs. The campaign encourages companies to proactively reach out to their shareholders, helping them recover unclaimed dividends and resume the regular receipt of dividends by updating essential records. Timely action by shareholders will ensure that their dividends and underlying shares are not transferred to IEPFA. Key objectives of the "Saksham Niveshak" Campaign include to facilitate the resolution of cases related to unclaimed dividends lying with companies, support KYC and nomination updates for shareholders and ensure direct dividend payouts from companies to the rightful investors. The Investor Education and Protection Fund Authority (IEPFA), established under the Ministry of Corporate Affairs, is committed to promoting financial literacy, safeguarding investor interests, and protecting unclaimed dividends and shares. Through initiatives like Niveshak Didi, Niveshak Panchayat, and Niveshak Shivir, IEPFA strives to build a financially informed and empowered investor base across the country. Earlier this month, the Department of Posts (DoP) collaborated with the Association of Mutual Funds in India (AMFI) to streamline KYC (Know Your Customer) verification for approximately 24.13 crore mutual fund investors. This includes 19.04 crore folios in Equity, Hybrid, and Solution-Oriented Schemes, as per AMFI data for June 30. With an impressive year-over-year investor addition trend of approximately 4 million new investors in FY23, 6.9 million in FY24, and 9.7 million in FY25, this landmark agreement will benefit all Asset Management Companies (AMCs) under AMFI by ensuring seamless KYC compliance for their vast and growing investor base, enhancing operational efficiency and financial inclusion across India.
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First Post
2 days ago
- Business
- First Post
Are mutual funds still the middle class's best bet for wealth building?
In the pre-2015 era, mutual funds faced little competition outside traditional insurance, FDs, and gold read more For much of India's working population, building wealth has always been a long game. The middle class, in particular, has relied on stable income, regular savings, and financial discipline to inch closer to goals like home ownership, retirement, and children's education. Among the many instruments available, mutual funds—especially through systematic investment plans (SIPs)—emerged as the preferred vehicle. But the financial landscape in 2025 looks very different from what it was a decade ago. From stock trading apps to real estate investment platforms, today's investor has no shortage of options. Which begs the question: are mutual funds still the best bet for India's middle class? Or has their advantage begun to erode? STORY CONTINUES BELOW THIS AD Mutual Funds: The Historic Favourite For most salaried households, mutual funds offered a simple proposition: let professionals manage your money, diversify across sectors, and invest consistently over time. The introduction of SIPs made this process even more accessible. Investors could commit a small fixed amount each month and benefit from rupee cost averaging. As the popularity of SIPs grew, so did the use of sip calculators—tools that allow investors to simulate the future value of their monthly contributions. These calculators helped first-time investors understand the power of compounding and plan more effectively for long-term goals. More from Business How Indian fintech startups are driving Malaysia's UPI-like digital payments revolution In the pre-2015 era, mutual funds faced little competition outside traditional insurance, FDs, and gold. But they were the first to truly offer market-linked growth in a structured and scalable format, making them the natural choice for upwardly mobile families. The Case for Mutual Funds in 2025 If popularity is any indicator of continued relevance, mutual funds remain firmly in the lead. According to data from the Association of Mutual Funds in India (AMFI), total industry AUM rose from around ₹25.49 lakh crore in June 2020 to ₹74.41 lakh crore by June 2025—a nearly threefold increase in just five years. SIP adoption continues to be the backbone of this growth. As of June 2025, monthly SIP inflows stood at ₹27,269 crore, while the total number of active SIP accounts crossed 8.6 crore. That's a substantial corpus being built one monthly payment at a time—often mapped out in advance using a sip calculator. The mutual fund space has also diversified beyond traditional equity and debt schemes. Passive investing—via index funds and exchange-traded funds (ETFs)—has gained meaningful traction among investors seeking low-cost market exposure. Meanwhile, hybrid funds that combine equity and fixed income have appealed to those looking for a more balanced, risk-managed approach. These formats give middle-class investors more flexibility in aligning their portfolios with specific risk appetites and financial goals. What's Changed: The Rise of Alternatives Over the last few years, direct equity trading has seen a dramatic rise, fuelled by user-friendly apps, low-cost brokerage, and widespread market access. For digitally native investors in their 20s and 30s, building a stock portfolio directly has become an exciting, if sometimes risky, alternative. As of 2025, nearly 20% of Indian households now allocate a portion of their savings to the stock market—a significant jump compared to previous decades. The trend accelerated notably after the COVID-19 pandemic, as more individuals began seeking returns that could outpace inflation and traditional instruments like fixed deposits or endowment plans. STORY CONTINUES BELOW THIS AD While this increased participation signals a welcome rise in financial engagement, it also introduces greater exposure to volatility, especially for investors without the time or experience to manage portfolios actively. Unlike mutual funds, direct equities offer no built-in diversification or professional management—leaving much of the outcome to investor behaviour and market timing. In contrast, SIP-based investing in mutual funds, often guided by a sip calculator, encourages long-term discipline and reduces the impact of emotional decision-making. Has the Advantage Eroded? There's no denying that the investment ecosystem has become more dynamic. But rather than being left behind, mutual funds have evolved. The rise of passive and hybrid options has enabled investors to build portfolios that align with their risk preferences. Better fund transparency, improved disclosures, and benchmarking rules have made it easier to evaluate performance. And with app-based onboarding, goal-planning tools, and integrated sip calculators, even tier-2 and tier-3 city investors are coming in with clarity and conviction. The numbers confirm it. In FY25 alone, equity mutual funds saw record net inflows of ₹4.17 lakh crore, helping drive a 25% year-on-year growth in equity AUM. This happened in a year when market volatility remained high—indicating that long-term investors are staying the course rather than chasing trends. STORY CONTINUES BELOW THIS AD Who Might Want to Look Beyond Mutual Funds? There is, of course, no one-size-fits-all answer. For financially savvy individuals who actively track the markets, direct equity or thematic ETFs may offer better customisation and, potentially, higher returns. Investors with extremely high capital and a clear understanding of risk may venture into structured products, global equities, or alternative assets. But such investors are still the exception, not the rule. For the average middle-class household juggling EMIs, school fees, and emergency savings, mutual funds offer a structured, tax-efficient, and professionally managed route to wealth creation. They also allow investors to start small and scale up—often after seeing projections on a sip calculator that link monthly discipline to long-term wealth. Conclusion: A Proven Path, But Not the Only One Mutual funds have come a long way from being a niche product to becoming a mainstream tool for wealth creation—especially for India's middle class. Their continued growth, aided by rising SIP contributions, better digital access, and tailored schemes, underscores their relevance in 2025. For many, they offer a rare blend of simplicity, professional management, and disciplined wealth building—often enhanced by tools like a sip calculator. But that doesn't mean they're the only game in town. With evolving digital platforms, wider financial literacy, and the growth of alternate products—from direct stocks to ETFs and even global investment avenues—middle-class investors today have more choice than ever before. Mutual funds remain a strong contender, particularly for those seeking structure and stability. Yet depending on one's goals, risk appetite, and experience, there's room to explore beyond them too. The key is not picking sides—but picking what fits.
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Business Standard
3 days ago
- Business
- Business Standard
Why PMS' need to be viewed differently from investing in a mutual fund
To open a PMS (Portfolio Management Services) account requires 37 signatures from a resident Indian. Even with digital onboarding, one still requires a physical signature to validate power of attorney, a new demat account, and in some cases even a new trading account and bank account opened. Not to mention the incremental audit and tax filing requirements this poses. Thus, it only makes sense that with all of these impediments, there should be a distinct purpose that a PMS serves for an investor versus a mutual fund (MF), which is relatively easier to start. There are two reasons why one should consider investing in a PMS. First, the customisation it offers. This is the primary feature by design for a PMS given each account is opened in an individual investor's name. It allows you to omit businesses from your portfolio that don't align with your ethical/ religious beliefs or where there might be a conflict of interest. It also enables you to request for tax loss harvesting which is impossible to do in a MF's NAV structure. There are finer aspects such as investing in businesses that are at the right price at the time of your investment rather than being tagged along in winners where most of the gains are already through. Enabling this degree of personalisation is a yard stick one must judge the PMS on for this truly offers a different investment vehicle possibility versus a MF today. The second reason is this possibility of a different outcome versus MF investment itself. There are two aspects to this different outcome- higher returns (of course this is an expectation) and non-correlation of returns. The latter is missed by most. A PMS portfolio even without any customisation is typically more concentrated. There is a higher concentration of smaller/ niche businesses in these portfolios as liquidity concerns in a particular stock's trading volume aren't as colossal as they are for some of the MFs. Furthermore, future flows do not change the outcome of your portfolio by adding more companies to it. All of this should result in outcomes that have lesser if not zero correlation to market returns. This collection of 15-25 small businesses in your portfolio can have a very different outcome versus the index. They need to be therefore assessed differently. The outcome cannot be judged on a monthly basis. The integrity of the style as marketed must definitely be judged on an ongoing basis. A complete visibility into transactions unlike MFs allows for the same. Assessment criteria However, if an investor wants a different outcome versus MFs, the assessment criteria must be different. The daily NAV tracking nature of MF investors has cornered the respective fund managers into ensuring they toe the line with their benchmarks. Ease of transactions in MF have made investing there akin to outcomes of ODIs in knockout. AMFI data as of FY25 year-end shows that over 45 per cent of equity investors redeem from a folio in less than 2 years. This is after a good two year run. The same data at the end of FY23 was 10 percentage points higher! Investing in PMS should be looked at as a test series. You can judge consistency on an ongoing basis but the outcome is drawn out as per the stated objective of the fund. A growth strategy PMS must be judged on a quarterly basis on the earnings growth of the portfolio, a momentum strategy on the up-capture performance, and so on. However, to burden PMS managers too with the same monthly NAV benchmarking is cornering the fund manager into giving you a me too product vs. the differentiated outcome the investor came looking for. In a PMS, having bought into the philosophy of the fund, an investor must judge the style integrity constantly and not performance alone.
Time of India
7 days ago
- Business
- Time of India
MF assets in Gujarat cross Rs 5L cr in June, biggest monthly rise on record
Ahmedabad: Mutual fund assets under management (AUM) in Gujarat crossed the Rs 5 lakh crore mark in June, with the state recording its highest-ever monthly increase in AUM. According to data by the Association of Mutual Funds in India (AMFI), overall, AUM in Gujarat rose to Rs 5.27 lakh crore — up by Rs 29,884 crore from Rs 4.97 lakh crore in May. This is the sharpest ever growth in MF AUMs in a month, according to AMFI. It was led by equity-oriented schemes, which accounted for Rs 3.36 lakh crore of the total. Debt funds contributed Rs 81,182 crore, while liquid funds stood at Rs 63,886 crore. Gold exchange-traded funds (ETFs) also comprised Rs 931 crore in the overall corpus. Experts attribute the rise in MF assets to improved investor sentiment, strong stock market performance, and a favourable near-term outlook. "While SIPs continue to bring in steady contributions, many investors are also booking profits in the direct equity market and reallocating to mutual funds for better diversification," said Jayesh Vithalani, an Ahmedabad-based financial consultant. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad According to industry players, the MF industry also saw broad-based growth in June across investor accounts, SIP contributions, new folios, and product offerings. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Eine zielgerichtete Strategie für Ihre finanzielle Zukunft eToro Click Here Undo "Nationally, the sector added several new investors and opened lakhs of fresh folios, an indication of rising financial awareness and trust in mutual fund products across urban and semi-urban markets," said a source privy to the development. NFO activity picked up momentum in June, indicating healthy demand for new themes and strategies. Sector-specific and passive investment products continued to draw interest, as did hybrid and multi-asset funds. With Gujarat among the top contributors to mutual fund growth, market participants expect the trend to remain strong in the coming quarters — supported by sustained retail participation, SIP inflows, and the ongoing shift towards financial assets. Overall inflows in Q1 in Gujarat | Month | MF AUM (Rs Lakh Cr) | Difference (Rs Cr) | |-------|---------------------|--------------------| | June | 5.27 | 29,884.27 | | May | 4.97 | 17,208.30 | | April | 4.80 | 16,605.97 | Source: AMFI
Mint
7 days ago
- Business
- Mint
Liquid Funds: A Smart Choice for Short-Term Savings
If you are looking for an avenue to park your funds for a short period of time, usually less than a year – for an upcoming expense, or to build an emergency fund, or to simply hold cash before a larger investment – liquid funds can be a practical option. While savings accounts remain a default choice for many, there is a growing recognition of the gains of liquid funds, a category of mutual funds, that aim to provide reasonable returns while keeping risk relatively low and offering easy access to your money. AMFI data consistently shows liquid funds as a significant category within the mutual fund landscape – they witnessed an inflow of over ₹ 40,000 crore in May 2025. This signals a rising shift among investors towards optimising short-term surpluses. Liquid funds are designed for those who need a temporary home for their money, often for periods less than a year. They offer several advantages such as flexibility in capital management and high liquidity. Unlike some other investment options, many liquid funds do not charge a penalty if you take your money out after holding it for a few days, a crucial differentiator from other fixed income products. This serves as a critical advantage for those managing unpredictable cash flows. It's important to remember that liquid funds are not designed for wealth creation—they serve a specific purpose of short-term cash management by prioritizing capital protection and liquidity. However, they can also play a strategic part in long-term financial planning through Systematic Transfer Plans (STPs). Liquid funds can be used for seamless transfer to other investment options within the same fund house via STPs, eliminating the need for manual transfers, streamlining the process of deploying idle cash into potentially higher-growth investments while maintaining flexibility. A core part of the investment strategy for these funds is that they aim to invest in very short-term money markets and debt instruments with a maturity of up to 91 days only. Even for securities that have features like put and call options (which allow early repayment), the time remaining until they mature should not be more than 91 days. These funds generally do not invest in foreign securities or engage in activities like securities lending and borrowing, which helps maintain their relatively low risk profile. Among the various liquid fund options available, the Parag Parikh Liquid Fund (PPLF) stands out as an example that offers a compelling mix of capital protection, liquidity, and convenience — making it a strong alternative to traditional savings or current accounts. Its primary objective is capital preservation and liquidity while aiming to deliver reasonable market-related returns. PPLF is presented as a credible alternative to traditional investment options like savings or current accounts for deploying money for short durations, offering a highly liquid option for investors. One feature worth noting is its Insta Redemption facility, which allows investors to withdraw up to ₹ 50,000 or 90% of their holdings (whichever is lower) in a matter of mere minutes. The redeemed amount is credited directly in your bank account through IMPS on the same day, typically within 30 minutes. This could be useful for investors who prioritize quick access to funds. For streamlined cash management, investors also benefit from access to the dedicated PPFAS CashFlex App, designed for quick and secure investments and redemptions in liquid and arbitrage funds. In terms of performance, over the past year PPLF has delivered returns of around 6.9%, which, while not guaranteed to continue, has outpaced the average savings account interest of 3-4% as well as the FY25 inflation rate of 4.6%. Additionally, PPLF levies no exit load after six days, providing flexibility for withdrawals. Investors in PPLF can use its proceeds to systematically transfer or switch into other schemes offered by PPFAS Mutual Fund, making it convenient for those looking to manage their investments within a single fund house. As with any investment, it is important to do your due diligence and review the Scheme Information Document for full details on asset allocation, risks, and other specific features before making an investment decision. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
