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Business Upturn
12-08-2025
- Business
- Business Upturn
AMCs stocks in focus: HSBC notes improvement in equity and hybrid fund flows in July
By Arunika Jain Published on August 12, 2025, 08:29 IST HSBC has reported that net flows into equity and hybrid (E&H) funds improved further in July 2025, showing broad-based gains across fund categories compared to 1QFY26. Systematic Investment Plan (SIP) flows accounted for around 45% of total inflows, while New Fund Offers (NFOs) contributed 17%. Lump sum flows also saw an uptick during the month. The brokerage observed that large asset management companies (AMCs) continued to gain market share in assets under management (AUM). However, while buoyant equity markets present an upside risk to its cautious stance, HSBC maintained a measured view on the sector. Disclaimer: The above views are those of HSBC. This update is for news reporting purposes only and does not constitute investment advice. Ahmedabad Plane Crash Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at You can write to her at [email protected]
Time of India
26-06-2025
- Business
- Time of India
Why are investors shying away from sectoral and thematic mutual funds in 2025?
Mumbai: Equity mutual fund schemes that bet on sector and focused themes - the hot picks of 2024 - are falling out of investor favour amid erratic returns and heightened risk. Net inflows into sectoral and thematic funds , which averaged ₹15,340 crore a month from June to December 2024, have dropped to an average of ₹1,408 crore for the three months from March to May 2025. "Several investors who have been mis-sold these funds, and did not understand the risks, now seem to be liquidating them," says Vicky Mehta, an independent mutual fund analyst. 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 Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo Mutual funds raised record money from retail investors through New Fund Offers (NFOs) in segments like defence, tourism, capital markets, energy, manufacturing, innovation, transportation and logistics, automotive, internet economy, realty and many others. As regulations prevent fund houses from operating more than one scheme in each equity category, the industry has found a way around the rule by launching schemes based on various themes. Live Events Agencies "A lot of money in sectoral and thematic funds was raised through NFOs from large fund houses, which were lapped up by investors due to unique propositions," says Dheeraj Gaur, CEO, Arete Capital. Investors were, however, not prepared for the sell-off that began in the last week of September. Sectoral and thematic funds tend to be more volatile than diversified equity funds and often witness sharp falls during market sell-offs. For example, the defence index fell 23% between November 28 and February 28, while the realty index lost 21.2% in a single month between December 27 and January 27. Since February 28, the defence index has rebounded by over 70%, while the realty index has risen by about 20%. Many investors could be using the bounce to liquidate their sector fund holdings. Mehta believes informed investors who understand when to get in and out of sector funds should consider such funds, while retail investors are better off staying away and avoiding fresh allocations.
Time of India
17-06-2025
- Business
- Time of India
India's mutual fund AUM hits record Rs 72.2 lakh crore; retail investors & SIPs drive growth
SIP contributions reached a record monthly figure of ₹26,688 crore in May 2025. (AI image) I ndia's mutual fund industry has achieved unprecedented assets under management (AUM) of ₹72.2 lakh crore as of May 2025, showing a 22.5% increase compared to the previous year. The substantial growth stems from increased investor participation and greater adoption of systematic investment plans (SIPs), demonstrating broader financial participation across the nation, according to a report released by Franklin Templeton. The industry structure shows equity-oriented funds comprising more than 60% of total AUM, whilst debt-oriented funds represent approximately 28%. The passive investment segment has expanded significantly, reaching ₹11.97 lakh crore, representing a 25% increase from the previous year and constituting 17% of the total industry AUM. SIP contributions reached a record monthly figure of ₹26,688 crore in May 2025, with aggregate SIP AUM reaching ₹14.61 lakh crore. The industry now maintains 9.06 crore SIP accounts, the report said. India Mutual Fund Industry - Vital Stats The asset management sector has expanded considerably outside metropolitan areas, with B30 cities now contributing 18% of total Assets Under Management. The number of investors has grown to a record 5.49 crore, showing a 19% increase year-on-year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Türk kredi kartı kullanıcıları için harika haber! HANGİKREDİ Daha Fazla Oku Undo Individual investors dominate equity fund ownership with an 88% share, indicating strong participation from retail customers. The industry saw substantial capital raising through New Fund Offers (NFOs), collecting ₹1.01 lakh crore in the last 12 months, with equity funds accounting for 97% of the total. The highest net investments were recorded in sectoral and thematic schemes, whilst arbitrage and multi-asset hybrid categories emerged as preferred choices in their respective segments. While equity funds maintained positive net sales for 51 straight months, the equity net sales excluding SIPs and NFOs showed negative trends. Direct investments increased to 47%, driven by the rise of self-investing platforms and professional investment advisors, the report added. At the state level, Telangana recorded remarkable 32% annual AUM growth, followed by strong performances from Haryana and Uttar Pradesh. The mutual fund sector's expansion outpaced bank deposits, with its proportion to bank deposits rising significantly to 31.2% from 12.6% over ten years. The growth trajectory of India's mutual fund sector remains strong, supported by enhanced financial awareness, favourable regulations and improved digital access. The sector shows promising prospects for continued expansion, particularly through retail participation and passive investment strategies. 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
13-06-2025
- Business
- Time of India
NFO Insight: Baroda BNP Paribas Health and Wellness Fund opens. Is it the right prescription for your portfolio?
Baroda BNP Paribas Mutual Fund 's latest new fund offer , the Baroda BNP Paribas Health and Wellness Fund , is open for subscription and will close on June 23. This open-ended equity scheme will focus on companies expected to benefit from the rising demand in healthcare and wellness—an emerging megatrend both in India and globally. The fund aims to capitalise on the multi-decade structural growth story within the healthcare and wellness space. CEO comments on fund launch Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » 'Over the last century, average life expectancy in India has more than tripled. Across every life stage—from toddler to septuagenarian—there is a constant need and expenditure towards well-being. Given the low starting base of per capita healthcare spending, we view this sector as a multi-decadal opportunity offering promising prospects for investors,' said Suresh Soni, CEO, Baroda BNP Paribas AMC. Also Read | Lumpsum vs SIP: Is caution killing the case for lumpsum? CIO on fund launch Live Events 'India offers a $200 billion market cap opportunity with over 100 investible companies across pharma, diagnostics, Medtech, hospitals, insurance, and healthcare research,' said Sanjay Chawla, CIO – Equity, Baroda BNP Paribas AMC. The primary objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments of pharma and healthcare companies. The fund will be benchmarked against the BSE Healthcare Total Return Index and will be managed by Sanjay Chawla. This thematic fund is suited for investors with an investment horizon of three years or more. It offers an opportunity to participate in India's growing health consciousness and invest in an evolving ecosystem of wellness-focused businesses. Sector Expected to Grow While India's current per capita healthcare expenditure is significantly lower than that of developed markets, it is expected to grow exponentially. Key drivers include rising affordability, increasing awareness, longer life expectancy, and a higher incidence of chronic diseases, according to a press release. Experts' Take on the New Launch Experts typically advise caution when it comes to investing in New Fund Offers (NFOs), unless the scheme offers something genuinely unique—such as access to an untapped investment theme or an enhanced proposition over existing options. Without a historical performance record, investors may find it difficult to make informed decisions. According to one expert, there are already over 10 pharma and healthcare-focused mutual funds available in the market. However, this new fund may adopt a distinct approach in terms of stock selection, portfolio construction, or focus on sub-segments like diagnostics, CDMOs, wellness, or healthcare services—potentially offering a fresh perspective within the broader theme. 'As with any new fund, it does not yet have a performance track record. So, while the investment philosophy might be compelling, it's sensible to monitor how the portfolio evolves and how the fund navigates different market conditions,' said Sagar Shinde, VP of Research at Fisdom, in a note to ETMutualFunds. Also Read | Mutual funds reduces overall cash allocation by Rs 6,200 crore to Rs 2.17 lakh crore in May 'There's no pressing need to rush into the NFO . Given the ample choices already available in this category with proven track records, it's better to wait, watch how this fund shapes up, and then consider it for investment based on merit,' Shinde added. Another expert shares a different opinion on this new fund as she mentions that Baroda BNP Paribas Health and Wellness Fund is not the first of its kind in India as several healthcare and pharma-focused funds are already in the market but what differentiates each fund is its investment approach, stock selection, and how broadly it defines the healthcare ecosystem—some include wellness, diagnostics, hospitals, and even health-tech platforms. 'Baroda BNP Paribas fund offers investors another opportunity to tap into India's growing healthcare story. It's worth considering for those looking to increase sectoral exposure, especially from a long-term perspective. Like any sectoral fund, it should be evaluated based on investment horizon, portfolio strategy, and alignment with personal financial goals,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets shared exclusively with ETMutualFunds. The minimum amount for lump sum investment is Rs 1,000 and in multiples of Re 1 thereafter. For Systematic Investment Plans with daily, weekly, or monthly frequency, the minimum SIP amount is Rs 500 and in multiples of Re 1 thereafter; for quarterly SIPs, the minimum amount is Rs 1,500 and in multiples of Re 1 thereafter. The fund will allocate 80–100% in equity and equity-related instruments of companies in the pharma, healthcare, and allied sectors; 0–20% in equity and equity-related instruments of companies other than those in the pharma, healthcare, and allied sectors; 0–20% in debt and money market instruments; 0–10% in units of mutual funds (domestic schemes); and 0–10% in units issued by REITs and InvITs. Time to allocate in this sector? Shinde advises that in pharma, recent corrections have created better entry points, and the long-term structural drivers remain intact. Staggered investments can be considered. On the other hand, Jain mentions that pharma and healthcare remain strong thematic plays, particularly because they offer defensive qualities in uncertain markets. Given India's demographic trends—rising average age, increasing healthcare awareness, and lifestyle-related health issues—this sector is poised for long-term structural growth. 'Investors who do not currently have any exposure to this space may consider allocating around 10% of their total equity portfolio to healthcare and pharma funds. However, this should be done with a minimum 3–5 year investment horizon and as part of a well-diversified portfolio. A staggered investment approach (via SIP or tranches) can also help manage entry-point risk,' Jain advises investors. Apart from Baroda BNP Paribas Health and Wellness Fund, there are 16 funds based on the pharma and healthcare sector, of which 10 have a track record of three years in the market. ICICI Pru Pharma Healthcare & Diagnostics (P.H.D) Fund offered the highest return of around 29.05% in the last three years, followed by SBI Healthcare Opp Fund , which has offered a 28.36% return in the same time period. LIC MF Healthcare Fund gave the lowest return of around 20.77% in the said period. With enough funds based on the sector and having a long performance track record, Shinde mentions that the outlook is neutral to positive overall but very constructive on hospitals and specialty pharma segments. While U.S. pricing pressure remains a concern, domestic demand, growth in chronic therapies, and export diversification are supportive. In the last three years, these funds have offered an average return of 24.72%, and in the last five years, they have delivered an average return of 21.93%, with up to 25.16% return in the last five years. LIC MF Healthcare Fund gave the lowest return in the last five years at around 17.40%. Jain believes that the long-term outlook for India's pharma and healthcare sector remains robust. Post-COVID, there has been a fundamental shift in consumer behaviour and government focus toward healthcare infrastructure, wellness, and preventive care. India's role as a global pharmaceutical manufacturing hub and growing domestic demand support the sector's earnings potential. 'While short-term volatility may persist due to regulatory changes or global market sentiment, the structural drivers remain intact. Innovation in biosimilars, rising export demand, growth in diagnostics and hospitals, and increasing insurance penetration further strengthen the investment case. As such, this sector offers a compelling mix of growth and defensiveness, making it a relevant thematic allocation for long-term investors,' she added. One should always invest based on their risk appetite, investment horizon, and 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.
Economic Times
09-06-2025
- Business
- Economic Times
Explained: Why holding mutual fund units in demat form makes sense
iStock The system simplifies investing. NSDL highlights this as a transformative step in India's financial evolution. We live in an age where everything is becoming digital — faster, smarter, and more transparent. The financial sector has been relentlessly trying to innovate to make transactions seamless and investment journeys more efficient. Those who've witnessed the open outcry system of stock exchanges will gladly recall how the shift to online trading and the dematerialization of securities marked a defining leap. What once took days and physical paperwork, now takes just minutes — with a few clicks on a screen. And now, we are witnessing the logical evolution in this journey: Mutual Funds in demat form. Over a decade and a half ago, the Securities and Exchange Board of India ('SEBI') enabled investors to hold Mutual Fund investments — earlier available only as Statement of Account ('SOA') — in demat form through the stock exchange then, the depository ecosystem has continually evolved, enabling investors to manage their Mutual Fund holdings with ease. Today, you can convert your Mutual Fund SOA into demat form through your existing account — without the need to open a separate one. This facility is available to the Non-Resident Indians too, offering a unified experience for all investors. Each mutual fund scheme is assigned a unique ISIN, simplifying tracking and portfolio consolidation. Investors can subscribe to fresh units, Systematic Investment Plans, Equity Linked Savings Schemes, and/or New Fund Offers directly through their stockbroker and the units are credited straight into their demat account. Redemption is equally effortless—through your Depository Participants, broker, or electronically via NSDL's SPEED-e services. Holding Mutual Fund units in demat form offers several advantages: a single consolidated portfolio view, automatic updates across all holdings, the ability to pledge for margin or loans, simple off-market transfers for gifting, and unified nomination—all within one digital a nutshell, this evolution aims to bring greater control, efficiency, and transparency to your mutual fund investments. While investors should factor in demat maintenance charges and brokerage NSDL, we remain committed to trying to enhance investor experience by building digital infrastructure that aims to support financial inclusion and investor empowerment. We believe holding mutual funds in demat form is not just a technical upgrade—it is the foundation of a more connected, secure, and simplified future of investing. So, start your investment journey by holding mutual fund units in your demat account. (The author Vijay Chandok is Managing Director and CEO, NSDL. Views are own) (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
