Latest news with #VishalDhawan
Mint
20-06-2025
- Business
- Mint
Now, you can add or remove joint holders in non-demat mutual funds
MUMBAI : People who hold mutual fund (MF) units in Statement of Account (SoA) form—that is, outside of demat accounts—can now add or remove joint holders and transfer those to others online. On 17 June, Mint covered the step-by-step process of transferring or gifting MF units held in an SoA. Today, we will discuss other important updates. Adding or removing joint holders Earlier, non-demat MF investors could not add or remove joint holders. Offline functionality was also absent. Vishal Dhawan, a registered investment advisor (RIA) and founder of Plan Ahead Wealth Advisors, said a joint holder is like a co-owner of the mutual fund, whereas a nominee simply acts like a custodian and is responsible for eventually transferring units to legal heirs. Also Read: How to move your mutual fund units from one demat to another or gift them For example, earlier, when a couple separated, they had to first dematerialize MF units held in the joint ownership account and transfer them to a single-ownership demat account. But now they can remove one holder from the account after mutually agreeing to it. Similarly, a person can seamlessly add their spouse as a joint holder. 'By allowing spouses to be added as joint holders, the transmission in the event of death becomes easier. A joint holder is essentially inheriting in its own right and not as a trustee of the eventual heir. In a way, a joint holder is a shared heir rather than a nominee, who is required to transfer the amount to the legal heir," said Harsh Roongta, an RIA and founder of Fee Only Investment Advisers. 'Allowing such additions will reduce the burden during hard times." When a minor turns 18, the account becomes a major account. Earlier, a joint ownership could not be added when the minor became a major. Now, parents or guardians can add themselves as joint holders when the minor account turns major. Also Read: Sebi reforms: Demat for housing societies, cooperatives a boost for financial inclusion If they choose the 'joint holder' option, transactions require the approval of all parties in the account. If one of the joint holders dies, the surviving joint holder can add another person as a joint holder. Since 18 May, investors can visit the CAMS or KFintech website to add or remove joint holders. A nominee can transfer units directly to legal heirs The transfer of units to legal heirs after a unitholder's passing was a cumbersome process before. Once the unitholder expired, the nominee would get access to the units. It was the job of the nominee to then transfer those units to the rightful legal heirs. Since unit transfers weren't allowed in the SoA form before, the nominee had to dematerialize those units and open demat accounts for each legal heir to transfer the units. 'It used to be a long and tedious process and would sometimes take weeks," said Dhawan. 'If the nominee decided to sell those units and distribute those to legal heirs, then the nominee would incur the entire capital gains." Now, the nominee can simply visit the MFCentral website and directly initiate a transfer. The site automatically redirects the user to either the CAMS or KFintech site, depending on the AMC they've chosen. Also Read: SIPs stop, demat accounts slump: Are retail investors running scared? Dhawan said the new changes are a welcome move and will make life easy for many of those who are holding mutual funds in non-demat form. 'In bank accounts, people can easily add or delete joint holders, and many assumed this could also be done for mutual funds. That wasn't true before, but now they can do so."
Time of India
18-06-2025
- Business
- Time of India
Money market funds outshine liquid & overnight funds in May. Time to rethink emergency fund strategy?
Live Events In May, mutual fund investors showed a shift in their preference within the short-term categories as liquid and overnight funds experienced net outflows whereas money market funds attracted fresh inflows According to the latest data by Association of Mutual Funds in India ( AMFI ), money market funds attracted the second highest inflows within 16-sub categories in debt mutual funds and attracted an inflow of Rs 11,223 crore in May. On the other hand, liquid funds witnessed the largest outflows of Rs 40,205 crore and overnight funds saw an outflow of Rs 8,120 crore in the same expert attributes this shift to strong macroeconomic environment and stability in repo rates as in the last policy meet, the apex bank did a 50 basis point cut in the repo rate and changed its stance from accommodative to the post-meeting conference the RBI governor clearly mentioned that the change in stance shows the RBI's approach of taking decisions based on the data that will come regarding growth and inflation and there was also a change in stance that indicated that we may well be currently at the end of the rate-cutting cycle, the expert said.'Given the strong macroeconomic environment and stability in repo rates, going ahead, investors will focus more on high yields. Currently, the top Money market funds on average are providing 25 bps to 70 bps higher yields than liquid and overnight funds, respectively. Since these funds are categorized as park money for the short term, the higher yields provided by Money market funds make them more attractive,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai shared with generally consider overnight and liquid funds as an option for parking idle savings outside the world of banking. For a savings account alternative, safety and liquidity must take priority over anything else and liquid funds and overnight funds come closest to satisfying these liquid and overnight funds, if an investor redeems money on a Friday, even as they will get their money on Monday, the net asset value (NAV) applicable will be of Sunday which is because in liquid and overnight funds, NAV is declared for every day, including with the given flow, the important thing to know is should one review the emergency fund parked in liquid or overnight funds? In response to this, the expert firmly says that Yes, reviewing these funds on a periodic basis is necessary, given the changes in the macro environment and personal events of the investor as certain important factors like investors' cash flow, interest rate cycle, and short-term requirements are vital for reviewing these funds.'If investors are expected to have a consistent cash inflow with no ultra short-term cash requirement and an overfunded emergency fund in a stable interest rate environment, they can tactically plan to change the allocation of funds from low-yielding liquid or overnight funds to money market funds. However, if their emergency funds are not funded enough, liquid or overnight funds are preferred,' Dhawan told Governor in his policy statement mentioned that inflation has softened significantly over the last six months from above the tolerance band in October 2024 to well below the target with signs of a broad-based moderation.'The near-term and medium-term outlook now gives us the confidence of not only a durable alignment of headline inflation with the target of 4 per cent, as exuded in the last meeting but also the belief that during the year, it is likely to undershoot the target at the margin,' the governor with RBI estimating its inflation expectation for FY26 to be less than its target of 4%, the current interest rate cut and tax benefits provided in the union budget should support growth, unless there are some significant global events that slow growth or increase inflation, Dhawan said.'Given, we may be at the end of the interest rate cut cycle, we can expect a stable interest rate environment going ahead. Money Market Funds do provide healthier yields than liquid and overnight funds at the current juncture. Hence, money market funds can be looked upon by investors who want to park excess funds for the short term, as they provide a good real return with lower credit risk,' Dhawan advised the with such category level shifts in inflows and outflows, reviewing debt fund allocation between once a quarter and half year should be good enough for investors, Dhawan further to the Sebi mandate, overnight funds invest in overnight securities having maturity of one day and liquid funds invest in debt and money market securities with maturity of upto 91 days only. On the other hand, money market funds invest in money market instruments having maturity up to one should always invest based on their risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
18-06-2025
- Business
- Economic Times
Money market funds outshine liquid & overnight funds in May. Time to rethink emergency fund strategy?
In May, money market funds saw significant inflows, attracting Rs 11,223 crore, while liquid and overnight funds experienced outflows. This shift is attributed to a stable macroeconomic environment and investors seeking higher yields. In May, mutual fund investors showed a shift in their preference within the short-term categories as liquid and overnight funds experienced net outflows whereas money market funds attracted fresh inflows. According to the latest data by Association of Mutual Funds in India (AMFI), money market funds attracted the second highest inflows within 16-sub categories in debt mutual funds and attracted an inflow of Rs 11,223 crore in May. On the other hand, liquid funds witnessed the largest outflows of Rs 40,205 crore and overnight funds saw an outflow of Rs 8,120 crore in the same period. Also Read | Flexi cap mutual funds dominate inflows for third straight month. Are investors seeking all-cap advantage? An expert attributes this shift to strong macroeconomic environment and stability in repo rates as in the last policy meet, the apex bank did a 50 basis point cut in the repo rate and changed its stance from accommodative to the post-meeting conference the RBI governor clearly mentioned that the change in stance shows the RBI's approach of taking decisions based on the data that will come regarding growth and inflation and there was also a change in stance that indicated that we may well be currently at the end of the rate-cutting cycle, the expert said. 'Given the strong macroeconomic environment and stability in repo rates, going ahead, investors will focus more on high yields. Currently, the top Money market funds on average are providing 25 bps to 70 bps higher yields than liquid and overnight funds, respectively. Since these funds are categorized as park money for the short term, the higher yields provided by Money market funds make them more attractive,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai shared with ETMutualFunds. Investors generally consider overnight and liquid funds as an option for parking idle savings outside the world of banking. For a savings account alternative, safety and liquidity must take priority over anything else and liquid funds and overnight funds come closest to satisfying these liquid and overnight funds, if an investor redeems money on a Friday, even as they will get their money on Monday, the net asset value (NAV) applicable will be of Sunday which is because in liquid and overnight funds, NAV is declared for every day, including holidays. Also Read | SBI's highest FD rate now falls to 6.7%. Are debt funds more attractive than ever now? Now with the given flow, the important thing to know is should one review the emergency fund parked in liquid or overnight funds? In response to this, the expert firmly says that Yes, reviewing these funds on a periodic basis is necessary, given the changes in the macro environment and personal events of the investor as certain important factors like investors' cash flow, interest rate cycle, and short-term requirements are vital for reviewing these funds. 'If investors are expected to have a consistent cash inflow with no ultra short-term cash requirement and an overfunded emergency fund in a stable interest rate environment, they can tactically plan to change the allocation of funds from low-yielding liquid or overnight funds to money market funds. However, if their emergency funds are not funded enough, liquid or overnight funds are preferred,' Dhawan told Governor in his policy statement mentioned that inflation has softened significantly over the last six months from above the tolerance band in October 2024 to well below the target with signs of a broad-based moderation. 'The near-term and medium-term outlook now gives us the confidence of not only a durable alignment of headline inflation with the target of 4 per cent, as exuded in the last meeting but also the belief that during the year, it is likely to undershoot the target at the margin,' the governor with RBI estimating its inflation expectation for FY26 to be less than its target of 4%, the current interest rate cut and tax benefits provided in the union budget should support growth, unless there are some significant global events that slow growth or increase inflation, Dhawan said.'Given, we may be at the end of the interest rate cut cycle, we can expect a stable interest rate environment going ahead. Money Market Funds do provide healthier yields than liquid and overnight funds at the current juncture. Hence, money market funds can be looked upon by investors who want to park excess funds for the short term, as they provide a good real return with lower credit risk,' Dhawan advised the investors. Also Read | JioBlackRock Mutual Fund announces launch of investment management platform Aladdin And with such category level shifts in inflows and outflows, reviewing debt fund allocation between once a quarter and half year should be good enough for investors, Dhawan further to the Sebi mandate, overnight funds invest in overnight securities having maturity of one day and liquid funds invest in debt and money market securities with maturity of upto 91 days only. On the other hand, money market funds invest in money market instruments having maturity up to one should always invest based on their risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
12-06-2025
- Business
- Economic Times
Lumpsum vs SIP: Is caution killing the case for lumpsum?
Mutual fund SIP inflows hit record highs in May amid market rally. Investors are cautious about lumpsum investments due to geopolitical tensions and slowdown fears. Vishal Dhawan suggests hybrid equity funds for lumpsum investments. Equity mutual fund inflows dropped, while hybrid funds saw increased interest. Overall mutual fund inflows decreased, but total assets under management grew. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads With mutual fund SIP inflows reaching record highs in May amid a market rally, a key question arises: Why are investors moving away from lumpsum investments? An expert explains that geopolitical tensions, trade concerns, and fears of a global slowdown—along with muted earnings and valuation worries—have made investors more cautious about lumpsum investing.'A combination of geopolitical uncertainty, trade wars, and fears of a global slowdown have made investors less confident about investing in lumpsums and more inclined towards SIPs in the current environment. Additionally, the slowdown in corporate earnings and concerns over the valuations of mid- and small-cap stocks are pushing investors to prefer SIPs as their investment strategy,' said Vishal Dhawan, CEO of Plan Ahead Wealth Advisors, a Mumbai-based wealth management firm, in a conversation with May, mutual fund SIP inflows rose marginally by 0.21% to Rs 26,688 crore, compared to Rs 26,632 crore in April. On a yearly basis, SIP inflows have surged nearly 28% from Rs 20,904 crore in May the current financial year so far, total SIP contributions by investors stand at approximately Rs 53,320 crore. For the calendar year to date, total SIP contributions have reached nearly Rs 1.31 lakh crore, up from Rs 98,571 crore during the same period last benchmark indices—Nifty50 and BSE Sensex—are down about 4% from their 52-week highs. With markets hovering near record levels, is the fear of buying at the peak discouraging lumpsum investments?Addressing the trend, Dhawan noted that investors often anchor to index highs, and their past experience of corrections from those levels tends to impact their willingness to invest in to the latest monthly data from the Association of Mutual Funds in India ( AMFI ), equity mutual funds witnessed a 22% drop in monthly inflows, receiving Rs 19,013 crore in May compared to Rs 24,269 crore in mutual funds saw an outflow of Rs 15,908 crore in May, a sharp reversal from the inflow of Rs 2.19 lakh crore in April. Meanwhile, hybrid mutual funds attracted higher inflows than equity mutual funds in May, with inflows rising 46% to Rs 20,765 crore from Rs 14,247 crore in funds saw a steep 73% decline in monthly inflows, receiving Rs 5,525 crore in May compared to Rs 20,229 crore in April. Different mutual fund categories showed mixed trends, with some attracting investor interest while others witnessed a advises that investors can still consider lumpsum investments in the current environment through hybrid equity funds, multi-asset funds, balanced advantage funds, and equity savings mutual fund inflows dropped by 89% in May. However, total assets under management (AUM) grew 3%, rising to Rs 71.93 lakh crore in May from Rs 69.73 lakh crore in April.
Time of India
12-06-2025
- Business
- Time of India
Lumpsum vs SIP: Is caution killing the case for lumpsum?
With mutual fund SIP inflows reaching record highs in May amid a market rally, a key question arises: Why are investors moving away from lumpsum investments? An expert explains that geopolitical tensions, trade concerns, and fears of a global slowdown—along with muted earnings and valuation worries—have made investors more cautious about lumpsum investing. 'A combination of geopolitical uncertainty, trade wars, and fears of a global slowdown have made investors less confident about investing in lumpsums and more inclined towards SIPs in the current environment. Additionally, the slowdown in corporate earnings and concerns over the valuations of mid- and small-cap stocks are pushing investors to prefer SIPs as their investment strategy,' said Vishal Dhawan, CEO of Plan Ahead Wealth Advisors, a Mumbai-based wealth management firm, in a conversation with ETMutualFunds. Also Read | Mutual fund SIP inflows at record high, rise marginally to Rs 26,688 crore Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » In May, mutual fund SIP inflows rose marginally by 0.21% to Rs 26,688 crore, compared to Rs 26,632 crore in April. On a yearly basis, SIP inflows have surged nearly 28% from Rs 20,904 crore in May 2024. In the current financial year so far, total SIP contributions by investors stand at approximately Rs 53,320 crore. For the calendar year to date, total SIP contributions have reached nearly Rs 1.31 lakh crore, up from Rs 98,571 crore during the same period last year. Live Events The benchmark indices—Nifty50 and BSE Sensex—are down about 4% from their 52-week highs. With markets hovering near record levels, is the fear of buying at the peak discouraging lumpsum investments? Addressing the trend, Dhawan noted that investors often anchor to index highs, and their past experience of corrections from those levels tends to impact their willingness to invest in lumpsums. According to the latest monthly data from the Association of Mutual Funds in India ( AMFI ), equity mutual funds witnessed a 22% drop in monthly inflows, receiving Rs 19,013 crore in May compared to Rs 24,269 crore in April. Debt mutual funds saw an outflow of Rs 15,908 crore in May, a sharp reversal from the inflow of Rs 2.19 lakh crore in April. Meanwhile, hybrid mutual funds attracted higher inflows than equity mutual funds in May, with inflows rising 46% to Rs 20,765 crore from Rs 14,247 crore in April. Also Read | Midcap mutual funds deliver 19% return in 3 months. Check top performers Passive funds saw a steep 73% decline in monthly inflows, receiving Rs 5,525 crore in May compared to Rs 20,229 crore in April. Different mutual fund categories showed mixed trends, with some attracting investor interest while others witnessed a decline. Dhawan advises that investors can still consider lumpsum investments in the current environment through hybrid equity funds, multi-asset funds, balanced advantage funds, and equity savings funds. Overall mutual fund inflows dropped by 89% in May. However, total assets under management (AUM) grew 3%, rising to Rs 71.93 lakh crore in May from Rs 69.73 lakh crore in April.
