mutual funds

A boom in tiny initial public offerings in India may soon be followed by larger deals, broadening options for global investors looking to join the nation’s equities frenzy.

Last month, India’s IT city Bengaluru caught the attention of the nation due to its acute water shortage problem, as queues to procure water extended over many miles. As the scarcity was expansive, the Karnataka government even banned the use of drinking water for non-essential purposes — such as car washing, gardening, construction, water fountains and road construction and maintenance. The Bangalore Water Supply and Sewerage Board (BWSSB) had levied a fine of ₹5,000 for any violations of the order, in a bid to mitigate the situation.

Nippon India MF, ICICI Prudential MF and HDFC MF has registered an increase in time taken to liquidate 50 per cent and 25 per cent of small-cap investment as their assets under management swell in April on the back of consistent inflows and rally in the market.

Buoyant markets tend to work favourably for those players that are part of the ecosystem.  Brokerages, asset and wealth management companies and even private equity/investment players tend to be beneficiaries when markets are on a bull run.

The share of domestic mutual funds (MFs) in companies listed on NSE rose to a fresh all-time high of 8.92 per cent for the quarter ended March, powered by net inflows of ₹81,539 crore during the quarter.

Thanks to uninterrupted bull run and renewed interest in equity investment, the quantum of assets under management of the mutual fund industry accounts for 26 per cent of the bank deposit as of March-end against 21 per cent logged in FY23.

The sachet — till now identical with shampoos, pickles, kumkum and a host of other consumable products — will soon see a new product packed into it. Yes, small-amount mutual funds will hit the market soon, if the wishes of SEBI chief Madhabi Puri Buch fructify. The Securities and Exchange Board of India is considering bringing down the minimum investment for systematic investment plans (SIPs) to as low as ₹250, according to the SEBI Chief. SEBI is working with the mutual fund industry to see what the regulator can do to bring the viable SIP level down to ₹250 a month, “because then it is the equivalent of what Hindustan Lever did with shampoo sachets. You just explode the market,” Buch had said. Financial inclusion“This will allow greater participation in MFs from the bottom of the pyramid, and is in keeping with the market regulator’s objective of greater financial inclusion,” she has been emphasising in the last few months. Currently, SIPs as low as ₹100 are offered by a few fund houses but ₹500 is the minimum SIP size offered…