Mutual Fund

The Securities and Exchange Board of India (Sebi) has introduced a revised cut-off timing for mutual fund overnight schemes (MFOS) aimed at improving liquidity and efficiency in repurchase and redemption requests. Starting June 1, 2025, applications for redemption received up to 3 pm will be based on the previous day's Net Asset Value (NAV), while those received after 3 pm will be based on the next business day's NAV. The change ensures that stock brokers and clearing members have sufficient time to un-pledge units and process redemption requests post-market hours.

In a move to diversify investment opportunities and enhance liquidity in India’s real estate and infrastructure sectors, the Securities and Exchange Board of India (Sebi) has proposed increasing the investment limits for mutual funds in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This proposed revision aims to provide mutual funds with more flexibility, allowing greater exposure to these alternative asset classes. The changes would expand market access, attract more capital inflows, and boost liquidity.

Capitalmind Financial Services has received final approval from the Securities and Exchange Board of India (SEBI) to launch its mutual fund operations under the brand Capitalmind Mutual Fund. The firm plans to debut with an active equity fund suite, followed by expansions into debt, hybrid, and multi-asset funds. This move marks a pivotal step in the company's growth trajectory, as it leverages its established track record and commitment to data-driven, investor-first strategies.

India’s mutual fund industry is poised for transformative growth as monthly Systematic Investment Plan (SIP) inflows are projected to touch Rs. 40,000 crore within the next 18 to 24 months. This optimism stems from a confluence of factors, including rising disposable incomes, improved tax policies, robust corporate earnings, and heightened financial literacy among retail investors. While recent volatility led to a marginal drop in SIP accounts, the industry’s long-term fundamentals remain intact.

In a landmark regulatory move, the Securities and Exchange Board of India (SEBI) has introduced a standardized framework for mutual funds seeking to launch Specialized Investment Funds (SIFs). These funds aim to bridge the flexibility gap between traditional mutual funds and Portfolio Management Services (PMS). With a minimum investment threshold of Rs. 10 lakh—excluding accredited investors—SIFs represent a higher-risk, high-transparency offering targeting sophisticated investors.

The Indian government, through the Department of Investment and Public Asset Management (DIPAM), is advocating for mutual fund houses to increase their investment in stocks of public sector enterprises (PSEs). This comes after a record Rs. 1.50 lakh crore dividend payout by Central Public Sector Enterprises (CPSEs) in the fiscal year 2024-25.

Investor participation in equity mutual funds saw a notable slowdown in March, with net inflows dropping by 14% to Rs. 25,082 crore, marking the third straight month of declining inflows. The volatility in domestic equity markets appears to have tempered investor enthusiasm, especially in niche sectoral and thematic funds. However, mid-cap and small-cap funds continued to attract strong interest, indicating a selective risk appetite. Despite an overall mutual fund outflow of Rs. 1.64 lakh crore, the industry’s assets under management (AUM) rose modestly to Rs.

The Department of Investment and Public Asset Management (DIPAM) has called on mutual fund houses to increase their investments in public sector enterprises (PSEs). This push comes after the record-high dividend payout from central public sector enterprises (CPSEs), which reached Rs. 1.50 lakh crore in the 2024-25 fiscal year. DIPAM Secretary Arunish Chawla emphasized that these dividends reflect the strong performance of CPSEs, benefiting both the government and the common citizen.

Recently, Kotak Mutual Fund unveiled the launch of its new investment vehicle, the Kotak Nifty Top 10 Equal Weight Index Fund. This open-ended fund aims to replicate and track the Nifty Top 10 Equal Weight Index, offering investors exposure to the top 10 Nifty stocks with equal weightage. The fund will provide an innovative and balanced approach for investors seeking to diversify their portfolios in alignment with India’s leading market indices.