Comments on: Equity Scheme (Part 2)

By: Karthik Rangappa

Karthik Rangappa — Sun, 26 Jan 2025 03:35:12 +0000

In reply to Pulkit.

Ah yes, here is circular – https://www.sebi.gov.in/legal/circulars/sep-2020/circular-on-asset-allocation-of-multi-cap-funds_47542.html . Guess the circular was issued to fix the issue of Multi cap funds behaving quasi large cap fund. Btw, this was the case when I wrote the chapter, I should have updated it with the circular, my bad.

By: Pulkit

Pulkit — Sat, 25 Jan 2025 19:10:04 +0000

I think you have said something wrong here. You have said that in Multicap, the fund manager has the flexibility to decide where he wants to invest. But you have given example that in SBI’s Multicap Mutual Fund, he has invested 70% in Large Cap. But this is not possible because according to SEBI, a Multicap Fund has to invest at least 25% in each three small medium large asset. But in this, you are saying that SBI’s Multicap Fund has invested 70% in Large Cap. How is it possible according to you? These both are contradicting statements according to you and SEBI Circular.

By: Karthik Rangappa

Karthik Rangappa — Fri, 06 Dec 2024 23:56:05 +0000

In reply to Anshul Mishrra. Thats right, the fund manager is free to invest in non high yeild stocks. It could be stocks with lower or no dividends too.

By: Anshul Mishrra

Anshul Mishrra — Fri, 06 Dec 2024 07:35:32 +0000

Hey Karthik,
In high dividend yield fund, SEBI mandates to invest in 65% in equity stocks (high dividend yielding stocks)
So does that mean the fund manager has the liberty to invest remaining 35% in non-equity space??
or is it a compulsion for fund manager to invest the remaining 35% in equity space only

By: Karthik Rangappa

Karthik Rangappa — Mon, 08 Jul 2024 04:18:59 +0000

In reply to chandrasekhar sheshadri. Sure, maybe we can do a video on this. Thanks.

By: chandrasekhar sheshadri

chandrasekhar sheshadri — Sun, 07 Jul 2024 15:59:38 +0000

Hi is it possible to discuss about Flexi cap funds. their pros and cons.

By: Karthik Rangappa

Karthik Rangappa — Tue, 18 Jun 2024 05:23:40 +0000

In reply to Nitish. 1) It can change during the course of the fund. 2) I've a chapter later in this module on how to analyze an equity fund, maybe you should check that.

By: Nitish

Nitish — Mon, 17 Jun 2024 09:47:38 +0000

Hi Karthik, I have few doubts related to equity MF
1. Is expense ratio of a fund subject to change over time or it is same throughout?
2. Suppose one has figured out the Multi Cap as a scheme to invest. Now looking at various available options in this category, how can one choose which one to go with. What are the key parameters to look after among AUM, Expense Ratio, past returns, age of the fund etc.

By: Karthik Rangappa

Karthik Rangappa — Fri, 14 Jun 2024 05:08:01 +0000

In reply to Abhishek Gupta. I cant really give you a fund specific advice Abhishek :)

By: Abhishek Gupta

Abhishek Gupta — Thu, 13 Jun 2024 12:56:33 +0000

I called them today and they said that himanshu mange is a very experienced guy although he is associated with nippon india MF for the past 4 years only and he can manage it and they will share my concern about tracking error with himanshu mange. Basically unhone clear answer nhi diya…
Should I start SIP in nippon india midcap 150 tri index fund assuming fund mgmt will take place at an auto pilot mode and tracking error will come down over time ?

By: Karthik Rangappa

Karthik Rangappa — Thu, 13 Jun 2024 05:10:31 +0000

In reply to Abhishek Gupta. Most fund management today has reduced to an auto pilot mode since every fund manager follows a mandate. But maybe you should write to them and check what they have to say :)

By: Abhishek Gupta

Abhishek Gupta — Wed, 12 Jun 2024 14:38:42 +0000

There is one fund mgr named himanshu mange of nippon india. He manages nifty mid cap 150 tri index fund along with other 27 nippon india schemes. I wanted to invest in this nifty mid cap 150 index fund but one point concerns me and that point is can himanshu mange bring down tracking error overtime ? I am saying this because he is managing 27 other schemes so can he allot enough effort to this particular scheme of midcap 150 tri index fund to reduce tracking error over time ?
Is my concern right or am I overthinking ?

By: Karthik Rangappa

Karthik Rangappa — Sat, 08 Jun 2024 04:57:31 +0000

In reply to Abhishek Gupta. Yes, all fund houses aims to bring down the tracking error overtime.

By: Abhishek Gupta

Abhishek Gupta — Fri, 07 Jun 2024 17:36:05 +0000

Hello kartik !!
Recently I decided to invest in nippon india nifty midcap 150 TRI index fund and it had a tracking error of 0.09% (lowest among all mutual funds ) and expense ratio of 0.3% but when I compared funds return with benchmark, there was difference of approximately 1.7 to 1.8 percent and when I did the same comparison with two other mutual funds with similar expense ratio (around 0.3%) and tracking error (ranging between 0.10% to 0.12% ) there was around 2% difference.
So my doubt is nippon india ka jo ye index fund h uske returns and its benchmark returns ke beech ka jo difference h wo in future narrow ho skta h ? and kya tracking error overtime km ho skta h ? Because i think difference of around 2% will have great imapct on my final corpus after 10
years.

By: Mustan

Mustan — Fri, 17 May 2024 06:08:13 +0000

Hello Karthik
Could you please let me know the difference between Multip cap and Flexi cap?