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Sebi might tweak essence of balanced funds
The Securities and Exchange Board of India’s (Sebi’s) proposed move to simplify category classifications of mutual fund schemes may lead to a change in the definition of balanced funds. The capital markets regulator has been going slow on approving balanced funds in the past few years and unofficially insisting on a 50:50 equity-to-debt mix for new scheme approvals. Currently, there is no standard definition of balanced funds. Several fund houses already offer balanced schemes that have an equity allocation of 65 per cent or higher.

September sees record SME IPOs in a booming market
Fund-raising activity by small industries will see a sharp momentum in the coming 10 days as more than a dozen SME players have lined up their IPOs on stock exchanges before September 30. While BSE's SME platform will see about six SME IPOs, NSE's Emerge platform will have about 12 IPOs before the end of September. According to NSE sources, more than half of the upcoming SME IPOs during September are from Madhya Pradesh, raising about Rs. 155 crore on the Emerge platform. However in the overall SME IPO space, Gujarat-based companies continue to lead the pack.

What explains the sudden jump in inflows to equity funds in August
If there was one thing that stood out this month, it was the figure for net flows into equity fund in August, which scored an all-time high. Net flow is the difference between the inflows and outflows. At Rs 29,145 crore in August, net flows to equity funds was a good 58 per cent higher than the net flows in July. What appears to have driven this huge surge is a sharp drop in redemptions and a flavour for low-risk equity products.

New norms may drive launch of REITs
With market regulator SEBI permitting single-asset real estate investment trusts (REITs), fence-sitting developers, enthused by the tweaked norms, may opt for REITs soon. Even as SEBI continues to make amendments to make investments in REITs attractive, developers on their part are focussing more on acquiring and developing commercial properties to create assets for REITs. “SEBI has permitted single-asset REITs as against the earlier requirement of investing in at least two properties, with no more than 60 per cent of the total asset value invested in one property,” Shubham Jain, VP & Sector Head, Corporate Ratings, said.

Flows from offshore India funds, ETFs ebb
India-focused offshore funds and exchange-traded funds (ETFs) in August saw net inflows of $140 million, the lowest monthly inflow in 2017. While India-focused offshore funds received net inflows of $179 million, offshore ETFs witnessed net outflows of $39 million. The trend is consistent with the recent selling spree by foreign portfolio investors (FPIs). In August, FPIs sold Indian shares worth nearly $2 billion while the first half of September has seen selling of $300 million.

Why bargain hunting is the key to investing in stocks
People’s instincts about what makes a purchase worthwhile can have harmful side effects if applied to investing. However, overcoming these instincts can be very profitable. This is what the powerful concept called value investing is all about.

Equity funds sitting on Rs 50,000-crore cash pile
Equity fund managers are sitting on a cash pile of over Rs 50,000 crore, say industry sources. Some even peg it at Rs 75,000 crore, considering the equity component of popular balanced funds. Fund managers say cash as a percentage of the corpus for several of their schemes is now in the double digits as inflows into equity schemes have been consistently high while stock valuations soar. Between January and August, equity schemes, including ELSS, have received inflows of Rs 81,000 crore, and balanced funds Rs 53,000 crore.

Insurance IPOs hot on D-Street
For long, the most simplistic investment thesis has been to latch on to IPOs from a sector that appears novel and about which the stock market has little clue. When Dhirubhai Ambani floated RIL in 1988, retail investors hardly knew about the petrochemical industry. When NR Narayana Murthy sold shares of Infosys, much of India had not even seen a desktop computer. Insurance is the new theme that is playing out now.

Mutual Fund assets now a fifth of banking system deposits
Assets under management (AUM) of the domestic mutual fund (MF) industry touched a record high of Rs 20.6 lakh crore in August. This is nearly a fifth of the banking system deposits, which stood at Rs 106.7 lakh crore last month. In March 2014, MF assets accounted for only a tenth of the banking system deposits. The MF industry, which offers a mix of equity and debt products, has been a prime beneficiary of the improvement in and shift towards financial savings in the country.

Mutual Fund SIPs touch Rs 5,206 crore in August
Indian mutual fund SIP accounts stood at 1.59 crore, with Rs 5,206 crore collected in August, say report from Edelweiss Research. This is the highest that mutual funds have reached. AMFI data shows that the mutual fund industry added about 86 lakh SIP accounts every month on an average during the FY 2017-18, with an average SIP size of about Rs 3,275 per SIP account.

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