Management structure and Functions of Mutual Funds
Mutual funds are constituted as Trusts and are governed by the Indian Trusts Act, of 1882. The structure of mutual funds in India includes three tiers: sponsors, trustees, and asset management companies (AMCs). Sponsor: The sponsor acts as a promoter, who brings the initial capital for the mutual funds business akin to that of a…
Read article Meaning of Net Asset Value (NAV) – Expenses Ratio – Load/No-Load Funds in mutual funds
Mutual funds are popular among large sections of retail investors because they offer investors the opportunity to diversify and therefore spread out their risk over several investments. Mutual funds are managed by full-time, professional fund managers who have the expertise, experience, and resources to actively buy, sell, and manage investments. But when we visit any…
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SEBI asks mutual funds to limit small cap, midcap fund inflows: Market got spooked after the curb
India’s market regulator, SEBI, has asked money managers to restrict investments in small- and mid-cap stock mutual funds and reduce commissions. The move aims to curb surging inflows into these funds and address the extraordinary exuberance in small- and mid-cap stocks. SEBI wants small- and mid-cap funds to make additional risk disclosures to their investors.…
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What is BBPOU under Bharat Bill Payment System
Updated on 01.03.2024 In supersession of earlier BBPS-related guidelines/circulars, the Reserve Bank of India issued a new direction on March 1, 2024. The earlier circular was suitably modified as under. BBPOUs are the System Participants in the Bharat Bill Payment System (BBPS) BBPS. A BBPOU may function either as a Biller Operating Unit or a…
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Capital Adequacy – Revised definition of Trading Book
The Reserve Bank on Wednesday notified that the revised definition of trading book for capital adequacy in terms of MD on investments dated September 12, 2023. As per the guidelines, the investment portfolio would be categorized into 3 categories viz. Held to maturity (HTM), Available for sale (AFS), and Fair Value through Profit and Loss…
Evolution of Mutual Funds in India
Mutual Funds are vehicles to mobilize money from multiple retail investors and invest the money pooled in various types of securities. The profit earned by these funds gives the investors the benefit of growth, wealth creation, stability, regular income, liquidity, or a mix of all. Mutual funds are not only providing growth to the capital…
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