Exploring Untapped Potential of Mutual Funds

The MUTUAL FUND industry has seen unprecedented growth in the past 3 years. In November 2016, total assets managed by mutual funds touched a record high of ?16.5 lakh crores rupees, a year on year growth of 27%.

Total number of folios in India also reached a record number of 4.7 crore. However, mutual funds still suffer extremely low penetration in India. A 7% share of Assets under Management (AUM) of Mutual Funds to GDP is significantly lower than some other emerging economies like Brazil (42%) and South Africa (33%).

INTRODUCING DIRECT PLANS OF MUTUAL FUNDS

MoneyFront aims to highlight the true potential of mutual funds to investors by firstly adopting the no-conflict option of direct plan of mutual funds. Direct plans are an alternative to the regular plans of mutual funds where you can skip the distributors and agents and invest directly with the Fund House.

Exploring Untapped Potential of Mutual Funds A direct consequence of this is an increase in returns by up to 1.5% annually, as the commissions paid to the distributors/agent are not charged to the scheme. MoneyFront, in its endeavour to provide maximum benefits to clients offers only ‘Direct Plans’.

For investors who are not well-versed about mutual funds or who need help with their asset allocation, MONEYFRONT also offers investment advisory that provides model portfolios and scheme recommendations tailor-made to the investor’s financial goals and risk tolerance levels. Over and above that, the investors have access to a vast library of news, views, developments, and statistics related to mutual fund schemes and everything else that impacts them.(READ MORE…)

PF norms eased: Withdrawal allowed for housing, medical, education and marriage of children

Under fire from trade unions, Employees' Provident Fund Organisation (EPFO) has decided to change the new rules that restrict employees from withdrawing their entire provident fund (PF) balance till the age of 58.

The EPFO has brought in norms that exclude subscribers falling in certain categories. According to amended norms, a subscriber can withdraw his or her entire savings for housing purpose, treatment of himself/herself or family members suffering from TB (tuberculosis), leprosy, paralysis, cancer or undergoing heart operation, marriage of children as well as professional education (medical, engineering, dental) of children.

Further, the rules have been relaxed for a member who joins an establishment under the control of the central or state governments and becomes a member of old-age pension schemes framed by the central or state governments. The fresh amendment will come into effect from August 1.

According to a February notification, EPFO subscribers can withdraw the employer's contribution of PF Withdrawal deposit only after attaining 58 years of age.

Under new EPFO norms, the employer's share will continue to earn interest as the body had recently approved a plan to credit interest to accounts which have no deposits for three consecutive years. According to EPFO norms, 12 per cent of an employee's salary goes as contribution to the fund, along with a matching contribution from the employer.

Flipkart in talks to raise $1 bn to expand business: Report

India's largest e-commerce marketplace Flipkart is said to be in the market to raise as much as $1 billion, but at a valuation lower than its peak of $15.2 billion. The company is looking for investments to expand its business and ward off attacks from well-funded rivals Snapdeal and Amazon. Read More