Latest news with #AssociationofMutualFundsofIndia
Time of India
3 days ago
- Business
- Time of India
Sebi introduces new guidelines for MF nomination process: What investors need to know
To simplify and safeguard the nomination process in a mutual fund, markets regulator Sebi has come up with more operational guidelines. The move will lead to certain changes in the coming months. WHAT IS NOMINATION IN A MUTUAL FUND? WHY IS IT IMPORTANT? Nomination is the process of appointing a person to take care of your assets in the event of your death. Regulatory guidelines make it mandatory for new folios/accounts opened by an individual in a single name to make a nomination. In case investors do not wish to nominate, they need to confirm the same in the application form. Nomination makes transmission easy for the heirs in the event of the unitholder's death. However, in the absence of a nominee, the heirs/claimants will have to produce a host of documents like a will, legal heir certificate, no-objection certificate from other legal heirs etc., to get the units transferred in his/her name WHAT ADDITIONAL THINGS DOES ONE HAVE TO MENTION IN THE NEW NOMINATION FORMS THAT WILL BE IN EFFECT FROM JUNE 1? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Air conditioners without external unit. (click to see prices) Air Condition | Search Ads Search Now Undo Starting June, a new format of the nomination form must be used. This new format is available on all mutual fund house websites, mutual fund registrar websites and that of Association of Mutual Funds of India (AMFI). As per the new rules, investors will have to provide the nominee's full name, relationship with investor, percentage of share, address, email ID, mobile number. In addition to the above they have to provide one of the following identity details, namely PAN, driving licence, last 4 digits of Aadhaar or passport number. If the details are incomplete there could be delays or rejections due to NIGO—not in good order—and the form could be rejected. Investors have to merely provide these details in the form and no proof of any documents is required while making these nominations. Investors can also opt out of the nomination by using the relevant form and there is no change in that form. In addition, an investor can also authorise one of the nominees to operate the account on his behalf, in case of incapacitation, and authorise the nominee to encash his assets up to a specified percentage from this account or folio. DO EXISTING INVESTORS IN MUTUAL FUND SCHEMES HAVE TO DO ANYTHING NOW? It is not mandatory for existing mutual fund investors, who have a nomination in their folios, to make any changes now Live Events HOW MANY PEOPLE CAN YOU NOMINATE? You can add 3 nominees up to August 31, 2025. And from September 1, 2025 you can add up to 10 nominees in a folio. HOW CAN YOU MAKE A NOMINATION IN YOUR MUTUAL FUND FOLIO? Completion of the nomination is simple and can be done online through RTA (registrar and transfer agent) websites or fund house websites. For those not keen to do it online, one can use a relevant physical form, sign it and send it to the fund house. In case the mobile numbers or email IDs of the second holder are not updated with the fund house, the online process will not work and investors may have to do it by filling a form only.
The Hindu
20-05-2025
- Business
- The Hindu
‘Older investors need to be cautiously optimistic of market rallies'
The recently released annual report of the Association of Mutual Funds of India (AMFI) showed that 60% of the people aged 25 to 44 were investing in equity mutual funds and this share increased from 36% in 2020. The increased risk-taking tendencies can be confirmed by the reduced interest in debt securities in this age group. This trend is contrary to the street wisdom that younger investors are more risk taking. Experts say that a combination of increasing popularity of investing in markets and the post COVID-19 bull rally were the reasons behind the shifting preferences of this age group. The optimism was seen despite a correction in September 2024. 'Investors are not panicking and that is a positive development' said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services Ltd. Mr. Vijayakumar also said that 'recent bias' contributed to this increasing share of older investors in equity mutual funds. While he maintained that high frequency indicators like the purchasing managers index and GST filings showed healthy macroeconomic situation, investors may have to be cautiously optimistic. 'It is difficult to justify a price to earnings ratio of 20-21 in a market where the earnings of corporate India grow at 5-6%. Market is of the opinion that earnings growth will pick up. But the market is richly valued, ' he said. A 'richly valued' market means that the stocks are valued at the right price and there is no room for a further increase in value. Mr. Vijayakumar said that richly-valued markets can correct in response to unexpected events. He further added that present fundamentals do not support a further rally to occur.
Mint
09-05-2025
- Business
- Mint
Debt mutual fund inflows in April at 2-decade high as investors seek safer bets
Investors pumped money into debt mutual funds in April as they sought lower-risk options to ride out the market volatility and to rebalance their portfolios at the start of the financial year, taking net inflows into these funds to the highest in over two decades. Net inflows into debt-oriented open-ended mutual fund schemes were at ₹ 2.19 trillion in April—the highest since January 2005, from when this data is available. The net inflows marked a sharp reversal from March, when debt-oriented schemes witnessed outflows of ₹ 2.02 trillion. Within debt schemes, liquid funds saw the highest inflows of ₹ 1.18 trillion, followed by money market funds' ₹ 31,507 crore and ultra-short duration funds' ₹ 26,733 crore, data from the Association of Mutual Funds of India (AMFI) showed. According to Suranjana Borthakur, head of distribution and strategic alliances, Mirae Asset Investment Managers (India), investors are favouring debt schemes for their stability and liquidity, especially in an environment marked by geopolitical uncertainties and market fluctuations. 'The significant inflows into arbitrage funds at ₹ 11,790 crore, a 9-month high, further underscores this preference for low-risk options, as investors seek to park funds securely while awaiting clearer market signals,' said Borthakur. In the short term, investors are likely to continue favouring shorter-end debt schemes and arbitrage funds over equity schemes until the volatility triggered by the India-Pakistan conflict subsides, as these offer stability and lower risk, Borthakur added. Initially, the volatility in India's stock market was driven by concerns over US President Donald Trump's reciprocal tariff policies, which raised fears of increased capital flows to US dollar markets, experts said. 'However, the phase of Trump-related tariffs may be easing soon as bilateral discussions with major countries have started,' said Seemant Shukla, chief executive, Quantum AMC. India and the US are working to finalise the first phase of a bilateral trade agreement by September-November, which could soften the potential impact of Trump's new tariffs. On 6 May, India struck a landmark free trade agreement with the UK that promises to unlock major economic gains for India by eliminating tariffs on 99% of Indian exports to Britain, covering nearly 100% of the trade value. The escalating conflict between India and Pakistan, however, would have an impact on volatility and markets in the short run, said Shukla. Portfolio rebalancing also had a significant influence on investors turning to debt mutual funds. 'One of the key reasons for the sharp surge in debt mutual fund inflows in April is the beginning of the financial year, a period when corporates and institutions typically reallocate their portfolios,' said Gaurav Goyal, head–sales and marketing, Canara Robeco AMC, and the company's spokesperson on AMFI data. This has led to significant investments in liquid, overnight, money market, and ultra-short-term funds, he said. Net inflows into equity mutual fund schemes dropped to a one-year low of ₹ 24,269 crore in April, marking a 3.2% decline on a month-on-month basis. That was the fifth straight month of declining inflows into equity schemes. In times of heightened market volatility and geopolitical uncertainty, it is common for investors to shift toward conservative assets such as debt funds, said Feroze Azeez, joint-chief executive, Anand Rathi Wealth Ltd. However, he added that such trends are typically short-lived. 'Historical patterns suggest that the impact of geopolitical tensions on equity markets tends to be temporary. Over the long term, market performance is more strongly influenced by economic fundamentals and corporate earnings,' said Azeez. As the current wave of war-led uncertainty stabilizes, said Azeez, it is likely that investors will gradually reallocate towards equity schemes. Within equity schemes, net inflows were highest in flexicap schemes at ₹ 5,541 crore. This was followed by smallcap and midcap funds with net inflows of ₹ 3,999 crore and ₹ 3,313 crore, respectively. Monthly inflows into mutual funds via systematic investment plans surged to an all-time high of ₹ 26,632 crore in April. This was driven by a steady increase in the number of contributing accounts, which now total 83.8 million.
