Governance at mutual funds
Commentary
R Balakrishnan

Governance at mutual funds: What you should know about the inside workings

While one doesn’t know enough yet to comment on the veracity of these allegations, this does shine the spotlight on the issue of governance at mutual funds. There’s a lot of song and dance on whether listed public companies are managed in the interests of their shareholders. But what about mutual funds? 
MFs are essentially custodians of public money, where both profits and losses are entirely passed on to unitholders. I give money to a fund manager to deliver a certain return from an asset class. But I am paying a fixed fee to him which he gets whether he does better or worse than the market. This pass-through nature of mutual funds means that the unitholder is most affected when the fund is mis-governed or mis-managed.

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Our response to your comments on our Axis fund call
Commentary
Vidya Bala

Our response to your comments on our Axis fund call

We upset a few of you with our call on some of the Axis funds last week 😊 Some of you commented on the blog and others raised tickets. We thought it would be better for us to respond through an article for the benefit of others as well. 

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Axis mutual funds; What should you do?
Commentary
Vidya Bala

What to do with your Axis mutual funds?

Axis Mutual Fund issued a public notice removing and replacing two of its fund managers, Viresh Joshi and Deepak Agarwal, from seven of its schemes — Banking, Technology, Consumption, and Nifty ETFs and Axis Value, Quant and Arbitrage Funds. This move was accompanied by speculation that the managers were suspended on front-running charges. Axis Mutual Fund hasn’t explicitly mentioned front-running charges, but it has confirmed that it has been investigating “potential irregularities” with the help of external advisors.

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Four passive debt funds to invest right now
Premium
Aarati Krishnan

Four passive debt funds to invest right now

Not so long ago, if debt investors in India wanted to get a 7% plus return, they had to go to post office schemes with (poor service and) a long lock-in period like the PPF or GOI Floating Rate Savings Bonds with a 7-year lock-in period. These options, apart from the difficulty of accessing them, required investors to sacrifice liquidity for returns. 

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Prime Fund Recommendation: A fund for the opportunist in you
Recommendations
Vidya Bala

Prime Fund Recommendation: A fund for the opportunist in you

Some funds have a clear fundamental strategy that shows in their portfolio construct. When that strategy pays off, they deliver. But many good-to-hear strategies have failed for many mutual funds in recent years. This is partly due to fast-shuffling sector preferences in the market and partly due to high stock weights in the index that funds struggle to replicate. As a result, you see them underperforming key indices. 

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hybrid funds in your portfolio
Mutual funds & ETFs
Bhavana Acharya

Prime Funds: Using hybrid funds in your portfolio (Part 3)

Hybrid funds don’t really suffer from the overlapping drawbacks we pointed out in our explanation on Prime Funds’ equity and debt recommendations. However, we still use our basic logic when it comes to portfolio building – given an investment purpose, which fund will fit that need?

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Prime Funds, build your portfolio
Mutual funds & ETFs
Bhavana Acharya

Prime Funds: Use them to build your portfolio right (Part 2)

This is the second to our two-part explanation on how we construct Prime Funds and how to use these fund recommendations to decide allocations. In the first part, we had covered equity funds in depth. In this Part 2, we will cover the debt fund recommendations in Prime Funds.

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Prime Funds: How to build a portfolio with the right allocations
Strategies
Bhavana Acharya

Prime Funds: How to build a portfolio with the right allocations (Part 1)

In this two-part series, we’ll explain how to build a portfolio with the right allocations. We also discuss how we categorise funds in Prime Funds and how to use each category in your portfolio. In this first part, we will cover equity funds. In the next, we will take up hybrid and debt funds.

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Changes to Prime Portfolios, our readymade portfolios
Recommendations
PrimeInvestor Research Team

Quarterly review: Changes to Prime Portfolios, our readymade portfolios

Prime Portfolios are a set of 19 unique portfolios that meet over 30 different investor timeframes and needs. Prime Portfolios are listed under Ready-to-use-portfolios in the Recommendations menu dropdown. These portfolios primarily use mutual funds, but where there are better-suited products such as deposits or government schemes, the portfolios include those too.

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changes to Prime Funds
Recommendations
PrimeInvestor Research Team

Quarterly review – changes to Prime Funds, our fund recommendations

If there’s one trend that equity funds don’t seem to be shaking off soon, it is the performance divergence. Over the past few review cycles, we have been highlighting how up-and-coming funds have soared well past the earlier steady performers. Taking stock of the underperformers, the nature of market movements, and returns we have made some key changes to our equity funds in this review cycle. 

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duplication in debt funds
Strategies
Vidya Bala

How to avoid duplication in debt funds

As a result of having many categories, many of you end up having duplication in debt funds in your portfolio inadvertently – by believing that spreading across different categories, you’re diversifying. However, funds that may be in different categories but not necessarily doing anything different for your portfolio. 

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update on Parag Parikh Flexi Cap and investing internationally
Commentary
Bhavana Acharya

An update on Parag Parikh Flexi Cap and investing internationally

In January, mutual funds investing overseas came up to a roadblock. As we had explained at the time on these curbs on international funds, Reserve Bank rules limit the amount mutual funds as a whole can invest in foreign securities. The cap stands at $7 billion for all foreign securities other than ETFs and $1 billion for ETFs. That $7 billion mark was close to being breached. And so, SEBI directed international funds to close off fresh subscriptions until a new limit could be worked out with the RBI. Please read our earlier article on this subject to understand the background.

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