Latest news with #FoF
&w=3840&q=100)
Business Standard
17 hours ago
- Business
- Business Standard
FoF expense structure not consistent across schemes, says DSP MF
The expense ratio of fund of funds (FoFs), a mutual fund category witnessing renewed interest following Budget 2024 tax changes, may be masking the real cost in several schemes, DSP Mutual Fund said in a report on Monday. FoF investors pay costs on two fronts — the expenses charged by the fund house for managing the FoF and the total expense ratio (TER) of the underlying schemes. "Investors often focus only on the expense ratio of the FoF wrapper (the fund that they directly invest in), without realising that there is also an additional hidden cost: the expense ratio of the underlying fund(s)," the fund house said. In the note, DSP MF said it has opted to disclose the total expenses of all its FoFs. "At DSP, in the spirit of full transparency, we disclose the Total Expense Ratio (TER) of our Fund of Funds (FoFs), which includes both the cost of the FoF itself and that of the underlying funds. We believe this comprehensive disclosure is essential for investors to make well-informed decisions that accurately reflect the true cost of their investments," it said.
Time of India
23-05-2025
- Business
- Time of India
Indian mutual fund industry's AUM crosses Rs 70 trillion milestone: ICRA Analytics
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The assets under management AUM ) of the Indian mutual fund industry grew by 22.25% YoY in March 2025 to reach the Rs 70 trillion AUM of open-ended 'other schemes' witnessed the highest YoY growth of 23.80% in April 2025, followed closely by open-ended equity schemes (23.57%) and hybrid schemes (20.74%). 'Other schemes' comprise index funds ETFs and FoF investing overseas, according to data from the Association of Mutual Funds in India ( AMFI ).Within index funds and ETF space, Gold ETF schemes grew 87.33% YoY in April 2025 to Rs 61,422 crore, followed by a modest 31% growth in index funds over the same period to Rs 2,92,206 crore, according to a release by ICRA AnalyticsIn the equity category, AUM of sectoral/thematic funds witnessed the highest YoY growth of 49.94% followed by multi cap funds which grew 35.79%. In the debt segment, AUM of the long duration scheme category rose 58.14% YoY, followed by money market (44.79%) and ultra short duration (32.78%) number of folios grew 30.21% YoY as of April 2025. This growth was primarily driven by 'other schemes' for which folios increased 45.94%, while those of equity schemes rose by 31.39%. Meanwhile, folio count for debt-oriented schemes declined by 1.15% over the reciprocal tariffs imposed by the U.S. President, coupled with geo-political tensions between India and Pakistan following the Pahalgam terror incident, kept investors on tenterhooks. However, domestic mutual fund investors continued to show confidence and remained steady, the release from AMFI showed that inflows into equity mutual funds amounted to Rs 24,269.26 crore. While this was a 12-month low, reflecting investor caution amid market volatility, it also marked the 50th consecutive month of positive inflows in the equity segment since March 2021 – highlighting growing investor maturity and witnessing a sequential drop of nearly 14% in equity fund inflows in March 2025, the category narrowed the fall to a MoM decline of 3.24% in April 2025. However, on a YoY basis, the inflow rose 28.29% during the same domestic ETFs (excluding Gold ETFs) continued gaining prominence with net inflows hitting an all-time high of Rs 19,057 crore in April 2025. This underscores a shifting investor preference toward low-risk passive investment amid global and domestic total number of outstanding SIP accounts grew 5% YoY to 914.41 lakhs in April 2025 from 870.11 lakh a year ago. The number of SIP accounts contributed rose by 31%, reaching Rs 838.25 lakh in April SIP contributions grew by 31% YoY to Rs 26,632 crores in April 2025 from Rs 20,371 crores in April 2024, and increased by 2.72% MoM. SIP AUM grew 23% YoY and 4% MoM in April 2025. SIP AUM as a percentage of month end AUM stood at 19.85% in April 2025 as compared to 19.67% in April 2024.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The Hindu
19-05-2025
- Business
- The Hindu
Managed ETF portfolios
Among the draft offer documents filed with SEBI are many fund-of-funds (FoFs) intending to invest in the same family single ETF. For example, silver FoF investing in the same-family silver ETF. Perhaps, there is more potential to use FoF to offer products with a basket of ETFs. Here, we discuss Managed ETF portfolios. Passive-active-passive A Managed ETF portfolio involves three participants — you (investor), the portfolio manager who constructs an ETF portfolio and the ETF manager who passively manages the ETF (underlying investment). Suppose a Managed ETF portfolio manager decides to create a portfolio consisting of a Gold ETF, a Nifty ETF and a Mid-cap ETF. This portfolio manager must continually manage the position with the objective of timing the market to generate returns. Note that each ETF — gold, Nifty and Mid-cap — is passively managed by the respective ETF manager. If you were to map the participants to the investment process, you have a passive-active-passive approach — passive (you) — active (Managed ETF portfolio manager) and passive (ETF manager). Consider two arguments. The objective of the Managed ETF portfolio manager is to generate alpha by continually changing the allocation to style, sector and strategy ETFs. For example, Nifty 50 ETF is a style (size-based) ETF, Nifty Bank ETF is a sector ETF and Nifty100 Low Volatility 30 is a strategy ETF. Suffice it to understand a Managed ETF portfolio is relatively easy to create using style and sector ETFs. It is optimal to passively manage investments in a Managed ETF portfolio. If entry and exit are frequent and not well-timed, the portfolio returns could suffer despite the Managed ETF portfolio manager performing well. It is crucial the portfolio manager considers style and sector universe, including third-party ETFs to pick the ones actively traded. Conclusion At a macro level, the Managed ETF portfolio relies on the portfolio manager's ability to select ETFs to invest in. For instance, the manager may decide to invest in a pharma ETF instead of a banking ETF. At a granular level, the Managed ETF portfolio brings to the fore the market timing skills of a portfolio manager. Therefore, alpha returns can come from allocation (proportion of sector and style ETFs) and market timing (when to buy and sell). This product should be kept outside the core portfolio. The Managed ETF portfolio could be structured as an open-end fund (FoF structure). (The author offers training programmes for individuals to manage their personal investments)
Time of India
12-05-2025
- Business
- Time of India
Defence sector ETFs surge amid India-Pakistan tensions, Groww, Motilal Oswal ETFs lead with 7% gains
Representative image Defence sector-based Exchange-Traded Funds (ETFs) have seen impressive growth, with returns up to 7% in the past two weeks, fueled by heightened India-Pakistan tensions. This surge comes amid increased investor interest in defence stocks, which are typically considered resilient during periods of geopolitical instability. Groww Nifty India Defence ETF and Motilal Oswal Nifty India Defence ETF both delivered solid returns of 6.73% and 6.74%, respectively, during the period. Meanwhile, Groww Nifty India Defence ETF Fund of Funds (FoF) outpaced them with a gain of 7.10% in the same timeframe, according to an ET report. These ETFs are benchmarked against the Nifty India Defence TRI, which recorded a 6.75% increase over the same period. The uptick in returns follows reports that the Indian government is meeting with defence manufacturers next week, sparking optimism around military procurement and defence sector growth. In the past week alone, the defence ETFs posted more modest gains of up to 1%, though their performance over the last three months has been more substantial, with returns reaching up to 19.56%. Among the ETFs, the Motilal Oswal Nifty India Defence ETF led with 19.56%, followed closely by the Groww Nifty India Defence ETF at 19.24%. The Groww Nifty India Defence ETF FoF also delivered 19.24% over the same period. In the past month, defence ETFs have surged by up to 16%, with Groww Nifty India Defence ETF FoF leading the pack with 16.40% returns. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
09-05-2025
- Business
- Time of India
NFO Alert: Baroda BNP Paribas Mutual Fund launches Income Plus Arbitrage Active Fund of Funds
Baroda BNP Paribas AMC has launched the Income Plus Arbitrage Active Fund of Fund, targeting conservative investors seeking better post-tax returns than traditional debt products. The scheme invests in a mix of debt and arbitrage mutual funds and is open for subscription till May 21. It offers tax-efficient income with a low-risk profile and diversified allocation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Baroda BNP Paribas Asset Management India has announced the launch of the Baroda BNP Paribas Income Plus Arbitrage Active Fund of Fund (FoF). The scheme is designed for conservative investors who seek capital appreciation with regular income and aim to earn higher post-tax returns than traditional debt instruments and debt new fund offer or NFO of the scheme is open for subscription and will close on May Read | SIP inflows climb 3% to all-time high of Rs 26,632 crore in April The scheme will invest 50–65% in units of debt oriented mutual fund schemes of Baroda BNP Paribas Mutual Fund , 30–50% in units of arbitrage scheme of Baroda BNP Paribas Mutual Fund and 0-5% in money market instrumentsthus aiming to create a balanced and diversified portfolio that helps mitigate risk while enhancing return potential.'For conservative investors looking beyond fixed income products or conventional debt funds, this fund offers the potential to earn better post-tax returns, especially for holding periods beyond two years,' said Prashant Pimple, CIO – Fixed Income, AMC.'The concessional long-term capital gains (LTCG) tax rate of 12.5% makes this an attractive option for long-term savers in higher tax brackets,' he fund will be co-managed by Prashant Pimple and Neeraj Saxena. The scheme will be benchmarked against Nifty Composite Debt Index 60% + Nifty Arbitrage Index 40% - minimum application amount for lump sum investment is Rs 1,000 and in multiples of Re 1 thereafter. For daily, weekly, and monthly SIP, the minimum amount is Rs 500 and in multiples of Re 1 thereafter. For quarterly SIP, the minimum investment amount is Rs 1,500 and in multiples of Re 1 Baroda BNP Paribas Income Plus Arbitrage Active FoF seeks to invest in a portfolio of fixed income and arbitrage schemes. It seeks to build a risk profile similar to lower-risk fixed-income schemes and would invest in the Baroda BNP Paribas Arbitrage Fund for its arbitrage Read | NFO Insight: Can this multi asset allocation fund save your portfolio in this volatile market? The portfolio manager would select a fixed income scheme or multiple fixed income schemes with differential weights based on their views on macroeconomic variables, interest rates, credit environment, etc. The scheme intends to predominantly invest in debt schemes, thus providing investors a low-risk investment optionThis scheme is ideal for investors seeking lower-risk mutual funds, tax-efficient income solutions, and alternatives to fixed-income products.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
