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Credit fund assets zoom 60% in last 10 months
With interest rates likely to remain on hold in the near future, debt funds that look beyond ‘AAA’-rated paper for higher yields are back in the limelight. These include mostly credit opportunity and corporate bond opportunity funds. In the last 10 months, assets of these funds have grown by nearly Rs 30,000 crore to Rs 80,000 crore, data from Value Research shows. While the one-year performance of these funds (11.1 per cent) lags duration funds such as gilt and income funds, they have clocked better returns over a 3-month period

Derivatives limit enhancement likely to bring in billions of FII dollars
A recent change to India’s trading rules has opened the door for fund managers to increase their holdings of derivatives in the country, loosening restrictions that had stifled trading. The Securities and Exchange Board of India last month increased the combined futures and options trading limit by removing some caps on contracts and on the market value of positions held.

NSEL case: Sebi likely to take action against brokers soon
The Securities and Exchange Board of India (Sebi) will soon decide action against five brokerages, whose clients lost significant amounts of money in the Rs 5,574-crore National Spot Exchange Ltd (NSEL) scam. The brokerages include Anand Rathi Commodities, Motilal Oswal Commodities, India Infoline Commodities, Geofin Comtrade and Phillip Commodities.

C-KYC implementation may prove a tough task
The Central Know Your Customer (C-KYC ) system unveiled by the government last year to unify KYC data across all financial regulators (RBI, SEBI, IRDA and PFRDA) seems a distant reality as it is being implemented at a slower-than-envisaged rate due to issues related to automation, process gaps and resolution of queries. Mandated to be maintained by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), the lack of an application programming interface (called API) with the C-KYC system is making life difficult for SEBI-registered KYC registration agencies to upload data manually.

Govt may roll back 10% LTCG proposed for ESOPs and PEs
The government may be looking to roll back or tweak a budget announcement, imposing long-term capital gains (LTCG) tax on holders of ESOPs and private equity investors, people close to the development said.

Redeeming MFs is as important as investing
Disinvesting is the most important part of your investment. That sounds illogical but isn't, even if you are not the government. Think about it. The goal of investing is to grow your money. However, this goal is accomplished only when you have taken the money out of your investments and taken it back to your bank account. Therefore, it should be self-evident that the manner and timing of redeeming your investments is an important - in a way, the most important - part of your investments.

Do investors gain if a mutual fund stops new inflows?
The best performing small-cap fund, DSP BlackRock Micro Cap Fund, has stopped accepting fresh investments. The fund house says fresh investments have been suspended because the huge size of the scheme (AUM of Rs 4,780 crore) makes it dificult to build positions and ensure liquidity. We spoke to four experts to find out whether stopping inflows benefits existing investors in the scheme.

Expect more innovation in insurance this year
The year 2016 saw a growing Indian consumer base that recognizes the value of health insurance to help stave off medical inflation and cover health care expenses for oneself and the family members. This was evident through the 35% rise in gross written premium (GWP) between April and November 2016, as compared to a year ago. A growing GWP in health insurance premium is aiding the growth of this segment but India still has a long way to go to ensure health coverage for every citizen.

Expense ratio: will larger MFs too follow Quantum, PPFAS’ footsteps?
If investors believe that the recent move by two smaller mutual funds to reduce their expense ratios may have ripple effects across the industry, that appears to be unlikely. Over this month, Quantum Mutual Fund, revealed a roadmap to cut its expense ratio as its asset size increases. When its flagship Long Term Equity Fund was launched in 2006, it charged an expense ratio of 2.25 per cent (gross of tax). Over the years, this has come down to 1.25 per cent (gross of tax or 1.09 per cent net of tax). Its current assets under management in this fund is at ?658 crore.

Fixed income ETF usage jumps among Asian investors
Flows into fixed income exchange-traded funds (ETFs) are growing rapidly with Asian institutional investors looking to earmark an increasing chunk of their investments into such products this year, according to a survey done by Greenwich Associates.

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