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Time of India
27-05-2025
- Business
- Time of India
Nifty up 13% from April's low. How should mutual fund investors alter their investment strategy?
With the benchmark index Nifty 50 up nearly 13% from April's low and touching 25,001 on Monday, market experts note that while many investors may consider profit booking, mutual fund investors, particularly those with a long-term outlook, are advised to stay invested. The recent highs reflect strong underlying earnings growth, supportive macro factors, and positive investor sentiment, rather than a signal to exit. 'Timing the market is challenging, and exiting prematurely could mean missing out on further upside or the power of compounding. That said, investors should use this opportunity to review their asset allocation and rebalance if their equity exposure has gone significantly above their target levels. Booking partial profits and reallocating to underweight asset classes, such as debt or gold, could be considered purely from an asset allocation standpoint—not as a reaction to the index level,' said Sagar Shinde, VP Research, Fisdom. Also Read | Nifty still below peak, but why are these mutual funds at record-high NAVs? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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HomeLane Get Quote Undo Another expert advocates the same opinion that unless one has short-term financial needs or the portfolio has deviated significantly from the defined asset allocation targets, staying invested is the wiser choice for long-term wealth creation, as the Indian economy remains on a strong footing, supported by robust earnings, government reforms, and macroeconomic stability. 'For long-term investors, trying to time the market based on index levels often results in missed opportunities. Instead of exiting the market entirely, consider rebalancing your portfolio—trim some exposure in overvalued sectors or schemes and reallocate towards laggards or more balanced options if needed. This allows you to capture gains while keeping your investments aligned with your financial goals,' recommends Adhil Shetty, CEO of Live Events The index stood at 22,161.6 on April 7, marking the lowest level in the current financial year so far. Over the past three months, it has risen by 10.22%, while its six-month gain stands at 2.60%. The Nifty 50 has gained 8.25% over the last year and 5.11% so far in the current calendar year. Nifty50 touched its 52-week high level on September 27, 2024 of 26,277 and is currently down by nearly 5% from its 52-week high level. As the benchmark index rises, experts recommend that investors continue their SIPs but exercise caution with lump-sum investments, advising them to stagger these investments over time. Shetty of Bankbazaar recommends that SIP (Systematic Investment Plan) investors should continue their regular contributions regardless of market levels as SIPs are designed to eliminate the need for market timing by investing a fixed amount at regular intervals, which helps average out the cost of units over time and this approach works particularly well during volatile or high market phases, as it ensures discipline and allows investors to benefit from market corrections through rupee cost averaging. 'On the other hand, investors with lump-sum amounts should be cautious when the market is at all-time highs. Rather than deploying the full amount at once, consider a staggered investment strategy—spread the investment over 3 to 6 months or even longer through Systematic Transfer Plans (STPs) into an equity fund. Alternatively, deploying the lump sum can offer exposure to equities while managing downside risks. This measured approach helps reduce regret from potential short-term corrections and aligns better with long-term wealth-building goals,' he added. Also Read | 30 equity mutual funds multiply lumpsum investments by over 2 times in 3 years To continue with the SIPs in the current market scenario, Shinde adds that lump-sum investors, however, should adopt a staggered approach as deploying the entire amount at current levels could expose them to short-term volatility. 'A Systematic Transfer Plan (STP)—where the lump sum is parked in a liquid or ultra-short duration fund and gradually moved into equities—can be an effective method to mitigate timing risks. Alternatively, if the investor has a medium- to long-term horizon, partial deployment in balanced advantage or multi-asset funds can serve as a middle ground, offering market participation with downside buffers,' Shinde adds. ETMutualFunds looked at the performance of equity mutual fund categories since the April low and found that out of 21 categories, 19 offered double-digit average returns and two gave single-digit returns in the same time frame. Since April 7, the Auto sector based funds offered the highest average return of 18.30%, followed by technology based funds which gave 17.04% average return in the same period. International funds gave 16.07% and infrastructure funds gave 14.86% average return in the same period. Midcap and smallcap funds gave 14.82% and 14.71% respectively since April's low level. Contra and largecap funds were last in the list of double-digit gainers. The categories gave 11.77% and 11.22% respectively in the mentioned period. Consumption based funds and pharma and healthcare funds gave 9.83% and 8.50% average returns respectively in the mentioned period. Post the categories gaining in double-digits and market above 25,000 mark, Shinde advices investors fresh investments at market highs should be made with a margin of safety and diversification in mind and for new investors, it's important not to shy away from equity markets entirely—rather, the focus should be on how and where to deploy capital. Also Read | Planning to invest Rs 10 lakh for up to 2 years? Shiv Gupta of Sanctum Wealth recommends this 'Conservative hybrid funds or balanced advantage funds (BAFs) offer a prudent starting point. These funds dynamically manage equity exposure based on valuations and volatility, making them ideal for entry during elevated market levels' 'Flexi-cap and multi-cap funds are also well-suited for long-term investors due to their allocation flexibility across market capitalisations. For global diversification, international funds—especially those focused on US or developed markets—are also attractive, given their recent rebound and long-term growth potential. In short, invest, but do it with a category that aligns with your risk appetite & time horizons,' he further added. On the similar lines, Shetty advices that quality-focused index funds that invest in fundamentally strong companies can offer consistent returns with relatively lower risk and the key is to match the investment horizon and risk tolerance with the right fund category and investing through SIPs or staggering the investment through STPs (Systematic Transfer Plans) can further reduce timing-related risks. 'Investing at market highs requires a disciplined and cautious approach, especially for new investors who may be concerned about near-term corrections. Rather than shying away from investing altogether, new entrants can consider fund categories that offer built-in risk mitigation and asset allocation flexibility. Quality-focused index funds that invest in fundamentally strong companies can offer consistent returns with relatively lower risk. The key is to match your investment horizon and risk tolerance with the right fund category. Investing through SIPs or staggering the investment through STPs (Systematic Transfer Plans) can further reduce timing-related risks,' the CEO of Bankbazaar advised. One should always consider risk appetite, investment horizon, and goals before making investment decisions. ( 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.
Yahoo
19-05-2025
- Business
- Yahoo
Groww to buy wealth management firm Fisdom for $150m
Groww, a brokerage platform in India, is acquiring wealth management firm Fisdom for $150m in an all-cash transaction. This acquisition is pending regulatory approval from the Securities and Exchange Board of India (SEBI) and is expected to be finalised within two to three months. The announcement comes as Groww prepares to file its draft red herring prospectus via a confidential route in the near future, reported Entrepreneur India. Looking ahead, Groww is expected to pursue its initial public offering (IPO) at a valuation estimated between $7bn and $8bn. Founded in 2015, Fisdom offers a range of financial services, including mutual fund investments, stock trading, bonds, portfolio management, and tax filing. The company has a customer base of more than one million and operates 15 offices across India. Fisdom has received investment from firms such as Prosus, Saama Capital, and Quona Capital. The acquisition of Fisdom is expected to enhance Groww's service offerings and diversify its revenue streams in light of ongoing regulatory changes and market fluctuations, reported the media outlet. This acquisition represents Groww's second major purchase this year, following its acquisition of Indiabulls Asset Management Company in May 2023. Groww, which began its operations as a mutual fund investment platform in 2016, expanded its offerings to include IPO investments, equity trading, exchange-traded funds (ETFs) in 2020. For the financial year 2024, Groww reported a consolidated revenue of Rs31.45bn ($367m), more than double the revenue from the previous year. The operating profit for the same period was Rs5.35bn ($62.5m), an increase from Rs4.58bn ($53.5m) in the financial year 2023. In 2021, Groww secured $251m in a funding round, tripling its valuation to $3bn at that time. "Groww to buy wealth management firm Fisdom for $150m" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Entrepreneur
17-05-2025
- Business
- Entrepreneur
Groww to Acquire Fisdom in USD 150 Million Deal Ahead of IPO Filing
Groww is in the final stages of closing a USD 250–300 million pre-IPO funding round, with USD 150 million already raised from Singapore-based investor GIC at a post-money valuation of USD 7 billion You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Groww, one of India's largest brokerage platforms by active users, is set to acquire wealth management startup Fisdom for USD 150 million in an all-cash transaction, according to a source familiar with the matter. The acquisition, which is subject to regulatory approval from the Securities and Exchange Board of India (SEBI), comes just weeks before Groww is expected to file its draft red herring prospectus through the confidential route. The deal is expected to close within two to three months and marks Groww's second significant acquisition following its purchase of Indiabulls Asset Management Company in May 2023. The company is also in the final stages of closing a USD 250–300 million pre-IPO funding round, with USD 150 million already raised from Singapore-based investor GIC at a post-money valuation of USD 7 billion. Founded in 2015, Fisdom provides services such as mutual fund investments, stock trading, bonds, portfolio management, and tax filing. The startup has over a million customers and operates through 15 offices across India. It is backed by investors including Prosus, Saama Capital, and Quona Capital. In FY24, Fisdom reported a revenue of INR 84 crore—up 28 per cent from the previous year—while reducing net losses by 19 per cent to INR 57.4 crore. The company reported EBITDA-level profitability in the March quarter of FY25. Groww, which began as a mutual fund investment platform in 2016, introduced equity trading, ETFs, and IPO investments in 2020. For FY24, the company reported a consolidated revenue of INR 3,145 crore—more than double the previous year's figure. Operating profit stood at INR 535 crore, up from INR 458 crore in FY23. However, it posted a net loss of INR 805 crore due to a one-time domicile tax of INR 1,340 crore incurred when the company moved its registered office from Delaware to Bengaluru. The acquisition comes at a time when broking firms are under pressure from changing regulations and declining investor activity. Groww saw a drop of approximately 75,000 active investors in April 2025. Zerodha, another major player in the space, reported a decline of over 55,000 users, continuing a five-month downward trend. Brokerages have also been affected by increased taxes on trading, reduced exchange incentives, and restrictions on retail participation in futures and options markets. Angel One, a listed brokerage, saw its net profit fall by 49 per cent year-on-year to INR 175 crore in the March 2025 quarter. Its revenue also declined by 22 per cent to INR 1,056 crore. Groww is expected to pursue its IPO at a valuation between USD 7 billion and USD 8 billion. The addition of Fisdom is likely aimed at broadening its service offerings and revenue streams amid ongoing regulatory shifts and market uncertainty.
Time of India
17-05-2025
- Business
- Time of India
Groww to Buy Startup Fisdom in All-cash Deal
HighlightsInvestment platform Groww has signed a definitive agreement to acquire wealthtech startup Fisdom in an all-cash deal valued between $140 million and $160 million, pending regulatory approval. Founded in 2015, Fisdom provides various wealth management solutions and has established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank. The acquisition aligns with Groww's strategy to enter the competitive wealth management sector, as it prepares to file its draft red herring prospectus with the Securities and Exchange Board of India for a planned $700 million public listing. Investment platform Groww has signed a definitive agreement to acquire wealthtech startup Fisdom in an all-cash deal, subject to regulatory approval, according to people familiar with the matter. The transaction values Fisdom between $140 million and $160 million, they said. The acquisition will help Groww, India's largest stockbroking platform with 13 million active users, expand its presence in the wealth management space. ET had first reported on the deal on March 13. Founded in 2015 by Anand Dalmia and Subramanya SV, Fisdom offers wealth management solutions, including mutual funds, stocks, bonds, portfolio management services (PMS), and tax filing solutions. Following regulatory clearance, Fisdom's founders will continue to run the business, and the current team will stay on in the firm, one of the sources cited above said. Backed by the likes of PayU , Saama Capital and Quona Capital, among others, Fisdom serves over a million customers. Since inception, it has raised around $48 million, as per data from Tracxn, and was last valued at around $103 million in 2023. While PayU is the largest shareholder with around 30% stake, Quona Capital's shareholding is at 13.8%. Saama Capital, which had invested around ₹20 crore in the fintech, holds 12.4%. Fisdom posted revenues of ₹84 crore in FY24, marking a 28% increase from the previous year, while reducing its net losses by 19% to ₹57.4 crore. It achieved Ebitda profitability in the March quarter of FY24. Fisdom has established partnerships with 15 national and regional banks, including Punjab National Bank and Indian Bank, helping these lenders sell wealth management products to their customers. The acquisition of Fisdom will mark Groww's entry into the highly competitive and rapidly growing wealth management sector. This space has been attracting significant investor interest amid the Indian stock market's bull run. In recent years, players like Centricity, Dezerv and Ioniq Wealth have all secured equity funding to capitalise on this emerging opportunity. Groww's IPO and funding The acquisition comes as Groww prepares to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for a planned $700-million public listing. According to sources, Groww intends to file its DRHP through the confidential route by the end of this month. The company is also in the process of raising $250-300 million in a funding round led by Singapore's sovereign wealth fund GIC. On May 15, GIC sought approval from the Competition Commission of India (CCI) to acquire a 2.14% stake in Groww for a $150 million investment. This deal would value Groww at $7 billion, post-money, according to people familiar with the matter. Launched in 2016, as a mutual fund investment platform, Groww diversified into stocks, IPOs, and ETFs in 2020.
Time of India
16-05-2025
- Business
- Time of India
Groww to buy Fisdom in $150 million deal
File photo BENGALURU: IPO-bound investment platform Groww signed an agreement to acquire wealth-tech startup Fisdom in a deal valued at approximately $150 million, people familiar with the matter told TOI. 'The deal is entirely cash-based and is expected to close after regulatory approvals,' one of the people said. The transaction marks Groww's entry into the wealth management and offline advisory space. It follows the company's acquisition of Indiabulls Asset Management in 2023 as part of its efforts to expand into asset management. Founded in 2015 by Anand Dalmia and Subramanya S V , Fisdom offers investment and advisory products, including mutual funds, stocks, bonds, portfolio management services, and tax-filing solutions. In FY24, Fisdom reported revenue of Rs 84 crore, up 28% year-on-year, while net losses narrowed 19% to Rs 57.4 crore. Groww turned profitable in FY23. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
