Overview of the Indian mutual fund industry in 2023
06 July, 2023
by Tanvi Gandhi
The asset management industry in India is experiencing brisk growth in assets under management driven by financialisation and expectations for further penetration into an untapped growing population. The article aims to provide an overview of the industry highlighting key trends. MFs, dominated by equity, being challenged by AIFs McKinsey estimated the industry’s overall AUM increased
- Published in Business Issues, Featured
Start researching mutual funds with AMC dossiers
30 August, 2022
by MMI Editor
Start researching mutual funds with AMC dossiers Some believe selecting mutual funds is easy. Just look at the short and long-term ‘track record’, perhaps relative to the relevant index and peers. Others use ‘risk-adjusted performance’ instead, which in practical terms means using a ratio like Sharpe Ratio, Information Ratio or Sortino Ratio. The sophisticated add
- Published in Advisory Process, Featured
50 shades of value investing in India
15 July, 2022
by MMI Editor
While everyone agrees that value investing is buying a stock for less than its intrinsic value, this is easier said than done. There is no one way to calculate intrinsic value. Over time Warren Buffet’s definition of value has changed from the ‘cigar butt’ approach that his mentor Ben Graham espoused to a more broader
- Published in Equities, Featured, Portfolio Construction
How active and skilled are Indian equity funds?
22 June, 2022
by Devasri Davey
While retail investors and advisers track various performance-based quantitative parameters such as excess returns and Sharpe ratio on mutual fund fact sheets, the professional investment consulting industry uses more advanced measures such as tracking error and information ratio to evaluate active funds. We calculated and analysed these measures for the Indian equity fund universe with
- Published in Equities, Featured, Portfolio Construction
Do mutual fund ratings work?
16 February, 2022
by MMI Team
Investors and advisers often use ‘star ratings’ to select the ‘best mutual funds’. They assume that the mutual fund ratings, whether denoted by stars or numbers (1 to 5) or alphabets (A, B etc) or metals (gold, silver etc), would be helpful in their selection of funds that will outperform in the future. We have
- Published in Advisory Process, Featured, Portfolio Construction
P2P lending in India
21 January, 2022
by MMI Team
Peer-to-peer lending is a small sub-segment of the fast growing lending segment within fintech. It allows investors to lend to a diversified portfolio of small borrowers through digital platforms, thereby cutting out the traditional middlemen (like banks and non-banking financial companies) and earning a higher return. We look at the p2p lending landscape in India.
Are PMS better than mutual funds?
20 January, 2022
by MMI Team
With increasing flows into portfolio management services (PMS), we hear PMS providers claiming that they outperform mutual funds as a category. We decided to take a high level look at the performance. While the median PMS performance is not too different from that of mutual funds, the dispersion of returns is higher. We suggest investors
Wealthtech in India
12 January, 2022
by MMI Team
Wealthtech, also sometimes referred to as Investtech or robo-advisory, is still nascent in India. We take a look at some players.
- Published in Business Issues, Featured
the private wealth issue
10 December, 2021
by MMI Team
Private wealth….the wealth of private clients. The term ‘private client’ implies there is something private about them. The term has become synonymous with ‘high net worth’ investors. They are different from ‘individual or retail investors’ who may need help with making financial decisions. They are also different from institutional investors, which are sophisticated but may
- Published in Business Issues, Dossiers on wealth firms, Featured
Connected strategy for wealth management
11 November, 2021
by MMI Team
A recent whitepaper by Alexis Calla, Sandeep Mukherjee, Nicolaj Siggelkow and Christian Terwiesch asserts that the Asian wealth management industry is currently largely analog, disconnected and lacks scale, relying on people for most aspects of the customer journey. The paper adapts the framework from a book ‘Connected Strategy‘ by two of the authors who are
- Published in Advisory Process, Business Issues, Featured