short change: Mutual Funds’ exposure to software stocks at three-month high

The mutual fund (MF) industry is betting big on software companies as its equity exposure

Published: August 12, 2013 1:21 am

Mutual Funds’ exposure to software stocks at three-month high

New Delhi: The mutual fund (MF) industry is betting big on software companies as its equity exposure to the sector rose to three-month high of Rs 18,430 crore at the end of June. The MF industry’s investment in software stocks stood at Rs 18,430 crore as on June 30,accounting for 10.21 per cent of their total equity assets under management (AUM) of Rs 1.80 lakh crore,according to the Sebi data. This was its highest exposure in software shares since March,when the total value of mutual fund investments in the sector stood at Rs 19,196 crore. March’s figure also marked three-and-a-half year high exposure to the sector. Market participants attributed MFs’ inclination towards software segment to weakness in the Indian currency coupled with good performance by IT companies.

Balanced funds better option in volatile markets: Crisil

Mumbai: Balanced fund schemes are good investment options during volatile market conditions because of their well-defined asset allocation approach that protects investors from downside,says a Crisil report. According to the rating agency,balanced funds have outperformed the Nifty across three,five,seven and 10-year time frames. Balanced mutual funds follow a well-defined asset allocation approach that offers a higher degree of protection on the downside,but preserves much of the upside thereby serving investors well,the report says. In a balanced fund,while 65-80 per cent of the asset is allocated into equity,balance is invested into debt.

Mutual fund AUMs fall 6% in July on account of outflows

Mumbai: Assets under management (AUM) of the mutual fund industry declined by over 6 per cent to stand at Rs 7.61 lakh crore in July due to heavy redemption from liquid funds,a Crisil report has said. As per the rating agency,AUMs of liquid funds dipped 21 per cent to Rs 1.29 lakh crore,primarily due to outflows of Rs 45,300 crore after the recent liquidity tightening measures announced by the Reserve Bank. To stem the rupee volatility by curbing speculation,RBI last month came out with liquidity tightening measures. The agency noted that the industry witnessed rare outflows in the first month of the September quarter which usually happens towards the end of the quarter.

Exchange Traded Fund to start by October-November

Jaipur: An ‘Exchange Traded Fund’ (ETF),an investment fund traded on stock exchange,would be launched for investors in October-November this year,a finance ministry official has said. ETF’s has put a target of Rs 3,000 crore and so far Rs 1,400 crore have been raised,Ravi Mathur,disinvestment secretary,finance ministry,had told reporters. “ETF is an investment fund that is traded on a stock exchange,just like stocks (also like any mutual fund),and it holds assets such as stocks,commodities or bonds and trades around its net asset value (NAV) over the course of the trading day,” Mathur had said. pti

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