ABHISHEK KUMAR Mumbai, 19 May he net equity exposure of most large ☐ balanced advantage funds (BAFS) has decreased in the past few months, with two of the largest schemes in this category offered by ICICI Prudential Mutual Fund (MF) and SBI MF lowering allocations below 40 per cent.
The average equity exposure of the five largest schemes stood at 53.4 per cent at the beginning of the calendar year 2024 (CY24). It decreased to 51 per cent by the end of April 2024, according to portfolio disclosures.
BAFS manage equity and debt allocation dynamically, depending on underlying valuations. Although regulations provide complete flexibility to such schemes regarding allocations, they typically opt for a minimum 65 per cent equity exposure to benefit from the equity tax treatment, which is advantageous compared to debt.
However, BAFS use equity derivatives to reduce their net exposure to below 65 per cent while complying with the taxation requirement at the gross level.
Diese Geschichte stammt aus der May 20, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 20, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
India Inc profit in Q4 grew least in 5 quarters
Listed companies' combined net profits (adjusted for exceptional gains and losses) were up 11.4 per cent yearon-year (Y-o-Y) in the January-March 2024 (Q4FY24), growing at the slowest pace in the last five quarters.
Rising mercury quenches FMCG thirst
With heatwave persisting in most parts of the country, fastmoving consumer goods (FMCG) companies continue to report a sharp increase in the sales of summer-centric products like ice creams and cold beverages.
Agnikul fires up reusable rocket dream, orbital launch next target
After the successful test flight of Agnibaan SORTED, Chennai-based space startup Agnikul Cosmos is lining up an orbital flight in the next 12 months and is also drawing up an ambitious plan to develop India's first reusable launch vehicle carrying payloads.
Indian travellers in 'hot pursuit' of luxury
More inclined to seek unique experiences, willing to brave the heat, and explore beyond traditional holiday seasons
HAZE OVER BRIGHT LINE TEST
Why transfer pricing over marketing intangibles has become a contested issue between companies and tax authorities
Of cricket and monetary policy
The June policy will be one of status quo in every way. There will be no change in rate or stance
Small credit business gives itself a hand
As unsecured loan growth ebbs, new ways to serve the segment have emerged, report
Banking channel for financial inclusion feels left out
Business correspondent firms' revenues are under stress as banks get tough with them to meet targets
Unclaimed shares in banks caught in legal limbo
The Banking Regulation Act, 1949, empowers the Reserve Bank of India (RBI) to regulate banks, but many of its provisions do not apply to those owned by the government.
Lack of central KYC hinders market participation
I recently spent an idyllic week trekking with friends in the Dordogne region of southwest France.