Latest news with #AnandRathiWealthLimited
Economic Times
5 days ago
- Business
- Economic Times
A major correction is unlikely and every fall will be bought into: Feroze Azeez
Tired of too many ads? Remove Ads Also Read: Samir Arora sees investment opportunities in companies reshaping consumer behaviour Tired of too many ads? Remove Ads , Joint CEO,, discusses the market direction in the midst of tariff tantrums, Nifty earnings growth , as well as the domestic institutional investor behaviour. Further, three out of four derivative indicators suggest that no major correction is imminent and every fall will be bought I break the indicators down, Trump is trying to scare the Indian capital market , but is not getting any reaction. His negotiation tactic to crack at least one large economy is not seeming to work because the earnings growth has been 11% for Nifty if you keep constant constituents. There are seven reasons why the market is reacting very differently from the expectation of the news Nifty earnings in the last financial year was not 6.5% as reported even on NSE because there were four constituents which changed in NSE over the last one year. The earnings growth of the current constituents of Nifty was 11%, not 6.5% that is point one. Earning has been in double digits. For NSE Smallcap, everybody said the earnings are not good. There were 63 changes in NSE Smallcap 250. If you ignore those changes, the earnings growth was not minus nine, it was plus 18. So, the narrative that the earnings have not been good is have to compare the same stock. You cannot compare Anand Rathi Wealth Limited's earnings of this year with another company which it replaced last year which was a part of the index. So, earnings have been healthy. Domestic institutions are putting in money but I do not think they are putting in so much money. It is still 6.2% of the total household the car is not starting and you are pushing the car at 5 km per hour, once it starts, will it go at 30-40 km per hour? The answer is yes. But the whole cult of investing at least double digit Indian household savings in equity, we could not do it over the last two, two-and-a-half decades. The Direct Tax Code, the new tax regime has come. People are being given money in their bank accounts and they are deciding on investing in equity. Three out of four derivative indicators tell you that there cannot be a major correction and every fall will be bought you look at each sector and break down flows and ownerships into different buckets, the domestic institutions are betting on banks heavily. Their active weights have gone up on banking. In Nifty, banking has 31% weight and 24% in NSE 500, which is what the domestic mutual funds money track as their tier I benchmark. So, where is the money headed? The domestic money is completely getting skewed to the banking course, like you said, there is a hierarchy. That is happening because of foreign institutional investors. If you break it down into three categories and they should mandatorily be broken down into three categories, in spite of them all being called FIIs, they are – index fund investors, active FIIs, and the prop fund investors have not taken one rupee out in the last four years. They have added money in India. But the discretionary fund managers in the FII or the hedge fund guys have pulled out money and that is why you see a net negative. The prop guys like education institutions are one of the largest investors in Indian midcap and smallcaps. These are the Harvards of the world. Those guys have taken out money because Mr Trump has choked their fundings. So, this is how they are back, the ownership has changed because weightages have changed in different stocks. If people are not giving impetus or giving emphasis to the weightage change in indices, they will miss out on understanding demand and supply in each sector. Pharma has one of the biggest troubles but it has 4% weight, has a free float of almost about 47% in NSE 500. But that is not moving the needle in terms of earnings because of its lower weight.
Economic Times
29-07-2025
- Business
- Economic Times
NPS equity funds see low single-digit returns in 1 year. Is it time to review your retirement strategy?
National Pension System equity funds show low returns this past year. Experts blame market conditions and NPS structure. NPS equity funds have delivered low single-digit returns over the past year and according to market experts, this underperformance can be attributed to the current neutral market phase impacted by geopolitical tensions, as well as the structural limitations of the NPS framework. 'The market right now is in a neutral phase, impacted by geopolitical crisis, US tariff expectations and weak earnings in key sectors such as IT and financials, both of which form a significant portion of NPS equity portfolios. Another thing to keep in mind is the structure of NPS itself,' Arjun Guha Thakurta, Executive Director at Anand Rathi Wealth Limited shared with ETMutualFunds. Also Read | Smallcap mutual funds dominate return charts in 5 & 10 years. What's driving the surge? According to the structure of NPS, about 20-25% of the portfolio is mandatorily in debt, which typically won't go beyond 7–8% returns therefore, the real growth engine is the 50-75% in equity, and that's been playing around market volatility lately. 'Also, since most NPS equity funds invest heavily in large caps, nearly 70% of the portfolio, they miss out on the higher growth potential that mid and small caps have delivered over time. Together, these factors have resulted in lower returns,' he added. Out of 10 NPS fund managers, nine have offered upto single-digit returns, one delivered negative return in the same period, according to data provided to ET by Value Research. DSP Pension Fund, relatively a new entrant, has offered the highest return of around 8.90% in the last one year. Kotak Pension Fund offered a return of 3.90% in the last one year period. Three fund managers - HDFC Pension Fund, ICICI Prudential Pension Fund, and UTI Pension Fund offered 2.52%, 2.22%, and 2.17% returns respectively in the said time period. LIC Pension Fund and ABSL Pension Scheme offered 1.88% and 1.39% returns respectively in the last one year. Axis Pension Fund and Tata Pension Management offered 0.93% and 0.83% returns respectively in the said period. And lastly, SBI Pension Fund offered a negative return of 1.15% in the said period. Post looking at the performance of NPS equity funds, should one consider rebalancing their asset allocation and what is the ideal time to hold onto equity investments in NPS to potentially see meaningful growth, Thakurta recommends that a better approach is to manage the overall allocation at a portfolio level as this allows an investor to align their equity and debt exposure with your goals, investment horizon and risk appetite more further adds that NPS can be compared to a hybrid fund with a lock in, where you don't have full control over asset allocation along with compromised liquidity. In NPS, the subscriber is required to decide investment choice whether active choice or auto choice. In active choice, a subscriber has the right to actively decide as to how the contribution is to be invested based on their personal preference. In this, subscribers can select multiple asset classes under a single pension fund manager. Upto 50 years of age, the maximum permitted equity investment is 75% of the total asset allocation. From 51 years and above, maximum permitted equity iInvestment differs. Percentage contribution value cannot exceed 5% for Alternative Investment Funds. The total allocation across equity and related instruments, corporate debt and related instruments, government bonds and related instruments and alternative investment funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc asset classes must be equal to 100%On the other hand, in auto choice, the investments will be made in a life-cycle fund and the proportion of funds invested across three asset classes will be determined by a pre-defined portfolio. Also Read | Consistent performers: Over 40 equity mutual funds offer over 15% CAGR in 3, 5, 7 and 10 year horizons NPS is focused on saving for retirement whereas mutual funds help investors to plan for different financial goals. The NPS scheme has a certain maturity period of 60 years and withdrawal restrictions. Mutual funds offer a lot more flexibility and ELSS mutual funds come with a three-year lock-in. These funds have a minimum lock-in period amongst various tax saving options available under Section other retirement savings options are also available, Thakurta advices investors to definitely consider other options as it's better to control their asset allocation at a portfolio level, where they can divide their money into three baskets, with a mix of equity and debt as they have a low correlation with each other. For equity, investors can consider equity mutual funds from diversified categories and for the long-term basket, meant for retirement, can have an 80:20 mix of equity and debt, the expert further adds that the medium-term basket, for the longer-term needs, can be 70:30 in equity and debt and the short-term basket should be fully in debt, meant for any near-term expenses as this way, one gets the flexibility to manage short-term liquidity while also generating wealth over the long term through the power of is a market-linked defined contribution scheme that helps you save for your retirement. The scheme is simple, voluntary, portable and flexible. It is one of the most efficient ways of boosting your retirement income and saving tax. It allows you to plan for a financially secure retirement with systematic savings in a planned way, according to the NPS Trust at how the macro environment is evolving, with GDP growth at 6.5% for FY25 and projected to rise to 6.6% next year, inflation well under control, and strong tax collections, it is clear that the market is on a healthy growth path and in this context, NPS may not be the most efficient vehicle to benefit from this momentum, Thakurta mentioned. He further informs that most NPS equity funds tend to stick to large cap allocations and have a fixed structure, which limits flexibility and the ability to optimise returns and there is also the lock-in until retirement and the compulsory annuity purchase, which can restrict an investor's options. 'Mutual funds, in contrast, offer liquidity, a wide choice of categories and the flexibility to adapt to changing market cycles. For long-term investors, mutual funds are better suited to help generate wealth over the long term,' he added. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
29-07-2025
- Business
- Time of India
NPS equity funds see low single-digit returns in 1 year. Is it time to review your retirement strategy?
NPS equity funds have delivered low single-digit returns over the past year and according to market experts, this underperformance can be attributed to the current neutral market phase impacted by geopolitical tensions, as well as the structural limitations of the NPS framework. 'The market right now is in a neutral phase, impacted by geopolitical crisis, US tariff expectations and weak earnings in key sectors such as IT and financials, both of which form a significant portion of NPS equity portfolios. Another thing to keep in mind is the structure of NPS itself,' Arjun Guha Thakurta, Executive Director at Anand Rathi Wealth Limited shared with ETMutualFunds. 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View Details » According to the structure of NPS, about 20-25% of the portfolio is mandatorily in debt, which typically won't go beyond 7–8% returns therefore, the real growth engine is the 50-75% in equity, and that's been playing around market volatility lately. 'Also, since most NPS equity funds invest heavily in large caps, nearly 70% of the portfolio, they miss out on the higher growth potential that mid and small caps have delivered over time. Together, these factors have resulted in lower returns,' he added. Out of 10 NPS fund managers, nine have offered upto single-digit returns, one delivered negative return in the same period, according to data provided to ET by Value Research . DSP Pension Fund , relatively a new entrant, has offered the highest return of around 8.90% in the last one year. Kotak Pension Fund offered a return of 3.90% in the last one year period. Live Events Three fund managers - HDFC Pension Fund, ICICI Prudential Pension Fund, and UTI Pension Fund offered 2.52%, 2.22%, and 2.17% returns respectively in the said time period. LIC Pension Fund and ABSL Pension Scheme offered 1.88% and 1.39% returns respectively in the last one year. Axis Pension Fund and Tata Pension Management offered 0.93% and 0.83% returns respectively in the said period. And lastly, SBI Pension Fund offered a negative return of 1.15% in the said period. Post looking at the performance of NPS equity funds, should one consider rebalancing their asset allocation and what is the ideal time to hold onto equity investments in NPS to potentially see meaningful growth, Thakurta recommends that a better approach is to manage the overall allocation at a portfolio level as this allows an investor to align their equity and debt exposure with your goals, investment horizon and risk appetite more effectively. He further adds that NPS can be compared to a hybrid fund with a lock in, where you don't have full control over asset allocation along with compromised liquidity. In NPS, the subscriber is required to decide investment choice whether active choice or auto choice. In active choice, a subscriber has the right to actively decide as to how the contribution is to be invested based on their personal preference. In this, subscribers can select multiple asset classes under a single pension fund manager. Upto 50 years of age, the maximum permitted equity investment is 75% of the total asset allocation. From 51 years and above, maximum permitted equity iInvestment differs. Percentage contribution value cannot exceed 5% for Alternative Investment Funds. The total allocation across equity and related instruments, corporate debt and related instruments, government bonds and related instruments and alternative investment funds including instruments like CMBS, MBS, REITS, AIFs, Invlts etc asset classes must be equal to 100% On the other hand, in auto choice, the investments will be made in a life-cycle fund and the proportion of funds invested across three asset classes will be determined by a pre-defined portfolio. Also Read | Consistent performers: Over 40 equity mutual funds offer over 15% CAGR in 3, 5, 7 and 10 year horizons NPS is focused on saving for retirement whereas mutual funds help investors to plan for different financial goals. The NPS scheme has a certain maturity period of 60 years and withdrawal restrictions. Mutual funds offer a lot more flexibility and ELSS mutual funds come with a three-year lock-in. These funds have a minimum lock-in period amongst various tax saving options available under Section 80C. As other retirement savings options are also available, Thakurta advices investors to definitely consider other options as it's better to control their asset allocation at a portfolio level, where they can divide their money into three baskets, with a mix of equity and debt as they have a low correlation with each other. For equity, investors can consider equity mutual funds from diversified categories and for the long-term basket, meant for retirement, can have an 80:20 mix of equity and debt, the expert advised. He further adds that the medium-term basket, for the longer-term needs, can be 70:30 in equity and debt and the short-term basket should be fully in debt, meant for any near-term expenses as this way, one gets the flexibility to manage short-term liquidity while also generating wealth over the long term through the power of compounding. NPS is a market-linked defined contribution scheme that helps you save for your retirement. The scheme is simple, voluntary, portable and flexible. It is one of the most efficient ways of boosting your retirement income and saving tax. It allows you to plan for a financially secure retirement with systematic savings in a planned way, according to the NPS Trust website. Looking at how the macro environment is evolving, with GDP growth at 6.5% for FY25 and projected to rise to 6.6% next year, inflation well under control, and strong tax collections, it is clear that the market is on a healthy growth path and in this context, NPS may not be the most efficient vehicle to benefit from this momentum, Thakurta mentioned. He further informs that most NPS equity funds tend to stick to large cap allocations and have a fixed structure, which limits flexibility and the ability to optimise returns and there is also the lock-in until retirement and the compulsory annuity purchase, which can restrict an investor's options. 'Mutual funds, in contrast, offer liquidity, a wide choice of categories and the flexibility to adapt to changing market cycles. For long-term investors, mutual funds are better suited to help generate wealth over the long term,' he added. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
15-07-2025
- Business
- Time of India
Nearly Rs 81,000 crore pulled from liquid, overnight MFs. Time for a portfolio check?
Amid rising outflows from liquid and overnight funds, experts recommend ultra-short-term funds for up to 6 months and arbitrage funds for longer horizons due to better return potential and tax efficiency. While concerns about returns persist due to rate cuts, liquidity remains strong. Investors are advised to choose based on their goals, horizon, and risk appetite. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mutual fund investors have realigned their short-term investments, pulling money out of liquid and overnight funds amid changing preferences. These two categories together witnessed an outflow of more than Rs 81,000 crore in May and to monthly data released by the Association of Mutual Funds in India (AMFI), liquid funds saw an outflow of Rs 16,274 crore, while overnight funds recorded an outflow of Rs 65,401 crore over the last two Read | Investors pump over Rs 30,000 crore in flexi-cap mutual funds in H1 CY2025. Is all-cap exposure a new favourite? On the contrary, money market funds have been receiving significant inflows. According to the data, money market funds recorded the second-highest inflows over the last three months—April, May, and June—among the 16 sub-categories within debt mutual experts believe this reversal is primarily driven by seasonal factors, as many corporates and institutions use these categories to park short-term surplus funds. However, by June, this money tends to flow out due to advance tax payments and quarter-end balance sheet adjustments.'Additionally, with a series of interest rate cuts, yields in short-duration categories like overnight and liquid funds have flattened. As a result, investors have begun reallocating capital toward slightly higher-duration categories such as money market and ultra-short duration funds, which offer better accrual potential in the current interest rate environment,' Arjun Guha Thakurta, Executive Director, Anand Rathi Wealth Limited, told ETMutualFunds.'In the past two months, we've also seen a reversal in equity markets, which may have further triggered outflows from retail investors as part of portfolio reallocation,' he April, money market funds received inflows of Rs 31,507 crore, followed by Rs 11,223 crore in May, and Rs 9,484 crore in generally consider overnight and liquid funds as options for parking idle savings outside the banking system. For a savings account alternative, safety and liquidity must take priority—and liquid and overnight funds come closest to meeting these this context, the key question is: should one review their emergency fund parked in liquid or overnight funds? Addressing this, Thakurta advises that investors need not worry about recent outflows, as they are largely driven by institutional activity and seasonal factors—not by any structural concerns. Liquid and overnight funds invest in highly liquid instruments such as treasury bills, call money, and other short-term government-backed securities, which carry zero credit risk and offer fixed, predictable Read | Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend? Commenting on better alternatives to park short-term surplus money right now, the expert said it's about being selective. 'If your investment horizon is up to 1–6 months, ultra short-term duration funds are ideal. For a horizon of 6 months to 1 year, arbitrage funds work well, as they offer better potential without a significant increase in volatility,' Thakurta at the monthly returns, liquid funds delivered an average absolute return of 0.53% in May and 0.49% in June. Overnight funds gave average returns of 0.46% in May and 0.41% in comparison, money market funds posted higher average returns—0.66% in May and 0.61% in the case of liquid and overnight funds, if an investor redeems money on a Friday, they receive the amount on Monday, but the net asset value (NAV) applicable will be that of Sunday. This is because NAVs for these funds are declared for every day, including weekends and continued outflows from these two categories, some investors are concerned about the potential impact on returns or liquidity. Addressing this, Thakurta said returns might remain slightly muted in the near term—especially for overnight and liquid funds—due to the series of interest rate cuts. However, there are no liquidity concerns.'Liquid and overnight funds can comfortably handle large inflows and outflows as they invest in highly liquid instruments like treasury bills and call money. Even with recent outflows, these funds remain robust and well-positioned to meet redemptions without stress,' he May, corporate bond funds received the highest inflows among the 16 sub-categories, amounting to Rs 11,983 crore. In June, short-duration funds topped the chart with inflows of Rs 10,276 these categories gain traction and receive the highest inflows, the question arises: are corporate bond and short-duration funds more suitable in the current environment compared to liquid and overnight funds?Also Read | Mutual funds slashes cash allocation by Rs 13,000 crore in June; PPFAS and Quant MF join trend The expert said it depends on the investment horizon. If you're looking to park funds for up to 6 months, ultra-short-term duration funds are ideal. However, if your time frame is beyond 6 months, arbitrage funds can be a wise choice, as they offer tax advantages along with better return potential and low to SEBI's mandate, overnight funds invest in overnight securities with a maturity of one day, while liquid funds invest in debt and money market securities with a maturity of up to 91 days. In contrast, money market funds invest in money market instruments with a maturity of up to one should always invest based on their risk appetite, investment horizon, and financial goals.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
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Business Standard
11-07-2025
- Business
- Business Standard
Anand Rathi Wealth gains 6% in trade after posting 28% rise in PAT in Q1
Anand Rathi Wealth share price gained 6 per cent on BSE, logging an intraday high at ₹2,250 per share after posting healthy Q1 numbers SI Reporter Mumbai Anand Rathi Wealth share price saw buying interest in the morning deals and gained 6 per cent in trade on Friday on BSE, logging an intraday high at ₹2,250 per share. At 10:27 AM, Anand Rathi Wealth shares were higher by 4.8 per cent at ₹2,224.5 per share on the BSE. In comparison, the BSE Sensex was down 0.52 per cent at 82,755.63. The company's market capitalisation stood at ₹18,467.94 crore. Anand Rathi Wealth Q1FY26 results The stock advanced after the company released its June quarter numbers on Thursday, after market hours. In Q1, the company's profit after tax (PAT) stood at ₹93.9 crore as compared to ₹73.4 crore a year ago, up 27.9 per cent year-on-year (Y-o-Y). Its revenue from operations stood at ₹274 crore, up 15.3 per cent, as compared to 237.6 crore a year ago. The asset under management (AUM) of the company stood at ₹87,797 crore as against ₹69,018 crore a year ago, up 27.2 per cent. According to the filing, the company's mutual fund distribution revenue increased by 27 per cent Y-o-Y to ₹113 crore and net inflows were highest ever in a quarter at ₹3,825 crore. What did Anand Rathi Wealth management say on Q1 performance? "We achieved our highest-ever quarterly net inflows of ₹ 3,825 crore and onboarded 598 new client families (net) in Q1 FY26, taking the total families served to 12,330. Client attrition, measured by AUM lost, remained at a low 0.11 per cent, underscoring the strength of our client-centric uncomplicated approach," said the company management. About Anand Rathi Wealth Limited Anand Rathi Wealth Limited is a wealth management firm, catering to high and ultra-high-net-worth individuals with a unique and differentiated client strategy. The company operates across 18 cities in India, has a representative office in Dubai, and is setting up new offices in London and Bahrain.
