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How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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Follow-on public offer eliminates the need for promoter's minimum contribution now

  The Board of Securities and Exchange Board of India (SEBI) has approved some changes related to the follow-on public offer of the capital market, including several mutual fund regulations, in today's meeting. Regulator SEBI has lifted the lock-in ban for promoters' minimum contribution and issue in the follow-on public offer (FPO). Till now promoters of mutual funds have to make 20% contribution in the follow-on public offer. Market regulator SEBI has also added some conditions for this, the first of which is that the shares of the issuer company have been trading continuously for the last 3 years and the second thing is that it should have at least 95% investor compliance clearance.   According to these changes in the rules of Mutual Fund by SEBI, each scheme of a fund will have different asset and liability. Now the need to issue physical certificates of units of funds of mutual funds has also been removed. The maximum limit of exit load of mutual funds schemes and the...
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SEBI introduces a new category of funds flexi-cap in mutual funds

  Securities and Exchange Board of India (SEBI) has introduced a new fund category, Flexi-cap, in mutual funds. According to the circular, mutual funds in this category need to invest at least 65 per cent of the portfolio in equities. However, there is no restriction in terms of allocation to market capitalization range and they can dynamically shift across large-cap, mid-cap and small-cap. So, effectively, the new category of the fund in a mutual fund is how SEBI used to define the multi-cap category until it changed the category's mandate.   On September 11, 2020, SEBI issued a circular informing about the change in the mandate of the multi-cap fund's category. According to the new guidelines of SEBI, multi-cap funds need to allocate 25 per cent of the portfolio to each-large-cap, mid-cap and small-cap stocks, increasing the minimum equity allocation to 75 per cent. AMC has been given time until January 2021 to make the required changes in the portfolios of their multi-c...
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Know what changes SEBI made in debt funds after Franklin Templeton incident

  SEBI has paid special attention to the matter since the closure of the 6 debt scheme of Franklin Mutual Fund AMC. It has made several changes in the last month regarding debt and equity funds. Debt mutual funds scheme has been losing investors for some time. For this major reason, SEBI had to do all this. Please tell that 6 schemes of Franklin Templeton have defaulted. Due to this, around 28 thousand crore rupees of his investors were stuck. However, money has been slowly coming back since then to the investor. In view of the interests of an investors, market regulator SEBI has made some changes in the rules of mutual funds business, to reduce the risk. Also, such incidents should be stopped in future.   SEBI told the mutual funds company that they will now give a new warning in the fund product. It is fundamentally related to risk. Now, in every mutual fund scheme's risk-o-meter, a very high-risk category is also included in this. All mutual funds scheme will now be req...
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SEBI has changed the time of purchase and sale of time of Equity Mutual Fund; know new cut off time

There is good news for Mutual Fund investors. The market regulator SEBI has changed the time of purchase and sale of Equity Mutual Fund to 3 PM again, giving relief to mutual fund investors from Monday, October 19, 2020. With this decision, investors will get more time to buy and sell mutual funds.   But SEBI has not made any changes in the timing of buying and selling debt mutual fund schemes and Debt Schemes and Conservative Hybrid Funds. Nilesh Shah, chairman of the Association of Mutual Funds in India (AMFI), an organization regulating mutual fund business, also tweeted about this new decision of SEBI. SEBI has not made any changes in the time of purchase and sale of liquid and overnight funds and it is from 12.30 to 1.30 PM as before. For debt and conservative hybrid funds, it is 1 PM.   In India, Mutual Fund Companies invested Rs 39,500 crore in the stock market in the first half of the current financial year (2020-21) if we talk about investment by mutual fund c...
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SEBI changes asset allocation rules for multi-cap mutual funds

  The Securities and Exchange Board of India (SEBI) has made some changes in the asset allocation rules for multi-cap mutual funds. According to the new rules, such funds will be required to invest at least 75 per cent of their funds in shares. This limit is currently 65 per cent. In addition, such funds would have to invest at least 25 per cent each in the shares and related securities of companies with large, medium and small market capitalization, the SEBI circular states.   Mutual fund industry experts say the move will divert Rs 30,000 to 40,000 crore from stocks of companies with large market capital to midcap and smallcap companies. The regulator stated that all multi-cap funds will complete compliance with these provisions within one month from the date of publication of the next list of shares by the Association of Mutual Funds in India (AMFI). The date is January 2021.   SEBI said that the multi-cap fund scheme has been amended with a view to diversify t...
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ICICI Bank announces QIP of equity shares, floor price @ Rs 351.36 per share

  Private sector ICICI Bank on Monday announced a Qualified Institutional Placement for equity shares. The bank has set a minimum floor price of QIP at Rs 351.36 per share. The board of ICICI Bank will meet on August 14 to decide the issue price of QIP. ICICI Bank said in a stock exchange filing, 'The meeting of the Issues Committee of the Board of Directors of the bank has been held on Friday, 14 August 2020. This meeting has been held to determine the issue price of equity shares after considering each other.   ICICI Bank received Rs 3,036 crore in the exchequer in the June quarter after the sale of 3.96 per cent stake in ICICI Lombard General Insurance and 1.50 per cent stake in ICICI Prudential Life Insurance. Significantly, HDFC Bank recently set a floor price of Rs 1,838.94 per share for its QIP issue with an aim to raise Rs 14,000 crore.   What is QIB, let's first know about it, QIP or Qualified Institutional Placement is largely a fundraising tool for the Stock Ma...
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