Institutional investors have shown high preference for Exchange Traded Funds (ETFs) and Fund of Funds (FoF) over other category of mutual fund schemes in the past three-four years. Of the total investments in ETFs and FoFs, at the end of August 2019, close to 93 per cent has come from institutional investors and a meagre 7 per cent from individual investors. Institutional investors include banks, insurance companies, Employees’ Provident Fund Organisation (EPFO) and other domestic institutions. Individual investors include retail investors and high networth Individuals (HNIs). There are a few reasons for the rising interest of institutional investors in ETFs. First, a large part of the ETF investment is from EPFO. Two-and-a-half years ago, the government had increased the EPFO’s investment limit in ETFs to 15 per cent from 10 per cent. These ETFs also include SBI, UTI and LIC. Mutual fund distributors point out that the quantum of investments EPFO can make are in the … [Read more...] about ETFs emerge as preferred investment vehicle for institutions, led by EPFO
Why invest in etfs
Dhirendra Kumar, Founder, Value Research, says Bharat 22 ETF is a combination of 60% relatively superior quality PSUs and 40% private companies which are relatively out of favour. He was talking to ET Now.Edited excerpts: A very classy set of stocks, representing various sectors in Bharat 22 ETF. The first tranche had been subscribed well but up until now the performance has been just about okayish. What exactly would be your recommendation? It is available at a 2.5% discount. Is this a good option for retail investors? It is an interesting option. It might have proved to be reasonably attractive for investors. It is a better option and just not a PSU disinvestment vehicle. If you look at other rounds of big investment or previous alternatives, compared to that, 40% of the disinvestment is in private sector companies. L&T, ITC and Axis Bank together account for nearly 40% of the total fund. So 40% is non-PSU. I am wary of PSUs. The government being the owner of companies is … [Read more...] about Bharat 22 ETF composition is reasonably attractive: Dhirendra Kumar, Value Research
Digitalization is gradually taking over the economy. Many businesses are changing their mode of operation using cyberspace technology. One of the most common businesses in cyberspace is online trading. It has become the most stable source of income for many entrepreneurs globally. Crude Oil is a hugely popular commodity among traders. With supply and demand constantly in flux, volatility and news are never far away and liquidity is rarely hard to find. This business is not commonly known by many especially in Nigeria, despite the fact that oil remains the most common commodity across the globe. Luckily, you don’t need to handle any amounts of crude or own an importation license in order to trade the oil markets. This is because most oil and gas trading is handled via futures. So instead of buying oil, storing it, waiting for its price to increase and then selling it on and arranging for it to be delivered, you can buy a futures contract and then sell the contract … [Read more...] about How digitization is making online crude oil trading easier
Mutual Fund new fund offers (NFO) that had taken a backseat in the last one year are once again flooding the market with new launches.More than a dozen equity funds have been launched in this financial year, while NFOs of as many as 8 equity schemes are currently on.Also, close to 15 equity schemes from various mutual funds have sought the Securities and Exchange Board of India’s approval to launch equity schemes in the current financial year.Close Mutual Fund experts cited that rush of new fund offers is after the SEBI’s directive on classification and categorisation of mutual funds.Himadri BuchAssistant Editor|Moneycontrol.com Simplex Infra's rating downgrade dents NAV of HDFC Credit Risk Fund by 30 bps - Is there more pain in the offing?Future Supply Chain eyes revenue of Rs 10,000 crore over 4-5 yearsManulife sees potential in India's mutual fund space; expects AUM to touch Rs 42 lakh crore in 3 yearsIn October last year, SEBI standardised the scheme … [Read more...] about Mutual funds line up equity new fund offers, but will investors partake?