Is passive investing becoming a trend in India? Are fund managers losing mojo? Kaustubh Belapurkar anwers
Existing asset managers who have large assets, on an active basis are also augmenting their product bouquet by adding passive strategies if they didn't already have it for two reasons. One is obviously, look at SEBI's mandate of one fund per category. Most of them already have funds within that. So, on the passive side, obviously, you can launch index funds and have a product available for investors who are looking for a passive investing option. Key Points
Economic TimesMukesh Ambani may take low-cost road in true Jio style to win $540 billion mutual fund industry
Unlike many other countries where the popularity of passive products have surpassed those of traditional active mutual funds, in India exchange traded funds or ETFs have 12% share in total assets under management (AUM). And when you consider retail investors, it is less than 2% of equity AUM, giving the Ambanis huge runway for growth. Key Points
Economic TimesAUM of passive funds tracking Nifty indices hit new milestone of ₹5 lakh crore; key highlights here
The AUM of passive funds in India, including ETFs and index funds tracking Nifty indices, has surpassed ₹5tn ($67bn), according to the National Stock Exchange of India. These passive funds also started the year FY24 on a strong note with AUM increasing to ₹717,042 crore by May 2023 end. Key Points
mintJio Financial lists on D-St, falls 5% on expected passive fund selling
The shares which listed earlier than anticipated fell to ₹251.75 on the BSE, giving it a market value of ₹1.6 lakh crore, after opening trade at ₹265 apiece. The company, which has multiple lines of business in finance, was spun off from Reliance Industries. Key Points
Economic TimesWhy do we sell winning stocks too early?
Many investors are subconsciously impacted by their mental errors and biases. These lead to investors making irrational investment decisions. These include selling good investment options too early or keep on holding to loss making investments. Read on to know more about these biases that makes us take irrational investment decisions and how t0 solve them. Key Points
Economic Times
Monika Halan on busting myths on savings, investment, mutual funds & more
Monika Halan, an analyst, debunks myths about investing in mutual funds. She explains that mutual funds are not a single product but a pipeline that connects investors' money to various investment options like stocks, bonds, gold, and real estate. She emphasizes the importance of considering factors like risk, liquidity, and investment horizon, rather than just focusing on returns. Halan also advises against solely investing in midcaps and smallcaps, as well as expecting guaranteed high returns in the short term Key Points
Economic TimesTata Motors demerger: CV unit will exit Sensex, Nifty just like Jio Financial
The demerger of Tata Motors into separate listed entities for commercial vehicles (CV) and passenger vehicles (PV) will result in the exclusion of the smaller stock (CV unit) from Sensex and Nifty. Global indices like MSCI and FTSE will evaluate the market cap of the smaller entity to determine its eligibility for passive indices. Key Points
Economic TimesRs 95,000 cr investment in PLI till Nov: DPIIT review
As per the review, the government has approved 746 PLI applications till November 2023 and established PLI units in more than 150 districts across 24 states. Moreover, import substitution of 60% has been achieved in the telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit passive Optical Network) & CPE (Customer Premises Equipment). Key Points
Economic Times