Mumbai-based Mayank Mehta has been investing in mutual funds (MFS) sporadically over the past 10 years. Though he often signs monthly cheques for systematic investment plans (SIPs), he is more inclined towards derivatives. "Most of my MF investments have yielded good returns, but I am more drawn to derivatives trading. It gives the adrenaline rush that the slow-grinding MF investments don't," says the 30-year-old software engineer.
Mehta concedes that derivatives are not easy to crack and one can often end up on the losing side. He also takes cues from random messages on social media, but cautions that "sometimes they work, often they don't." Mehta feels the sweet spot would be to have an expert or fund manager invest his money in derivatives. To be sure, there are portfolio management services (PMS) and alternative investment funds (AIFS) that take riskier bets.
However, their minimum ticket sizes are ₹50 lakh for PMS and 1 crore for AIFS.
Those like Mehta, who want to invest a few lakh rupees in derivatives have to either resort to the do-it-yourself technique or settle for MFs, which are allowed to use the derivatives segment only for hedging.
Mehta is yet to fall in the trap of schemes that promise unrealistically high returns, but several others have.
To address this problem, the Securities and Exchange Board of India (Sebi), the markets regulator, has proposed a new asset class that will sit in between MFS and PMS or AIFs. The minimum ticket size for the yet-to-benamed asset class is proposed to be ₹10 lakh.
The regulator has said the structure of the proposed asset class will be akin to MFs, but it will be allowed to offer riskier investment strategies. The various investment thresholds in debt securities or real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) will be slightly more relaxed vis-à-vis MFs.
Bu hikaye Business Standard dergisinin August 09, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Standard dergisinin August 09, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
WazirX Creditors Ask Firm To Speed Up Restructuring
In a recent townhall meeting, creditors of WazirX pressed founder Nischal Shetty and the restructuring legal team for solutions, seeking representation on the committee of creditors (CoC) and expeditious restructuring within four months, and asked for clarity on redistribution of potential gains from future crypto market upswings.
Used-truck prices spike up to 21%
With the government reviewing its vehicle scrappage policy, the price of used trucks has surged by up to 21 per cent in certain segments. The rise in used-market prices is also driven by demand from the government's infrastructure projects, say industry sources.
RAJASTHAN: Traders flag land, transportation woes ahead of summit
The Rajasthan government is gearing up for a three-day investment summit in December.
Chevron to sell stake worth $6.5bn to Canadian oil firm
Chevron Corp agreed to sell stakes in oil sands and shale assets in Western Canada to Canadian Natural Resources for $6.5 billion.
Surging Chinese stocks may advance another 20%, says Goldman Sachs
Goldman Sachs Group upgraded its call on Chinese stocks to overweight, as it joined a camp of optimists that are touting the positive impact of Beijing's stimulus blitz.
Ola EVs on a bumpy ride as social media takes stock
Comedian Kunal Kamra and Ola's Aggarwal engaged in a verbal duel on X
India's manufacturing under-performance: A new clue from 'multi-plants'
Perhaps the biggest failure of India's development and an equally big puzzle is why India has under-performed in labour-intensive manufacturing whether measured in terms of output, exports or employment.
Orders, input costs to keep cap goods on rails
Brokerages predict 12-22% revenue growth, 13-18% rise in Ebitda
Equity rally fuels fastest quarterly growth in MF assets in five years
Average AUM in Q2FY25 rises 12.3% sequentially to ₹66.2 trillion
Hero Motors withdraws papers for ₹900 cr IPO
Hero Motors, the auto components firm of the Hero Motors Company (HMC) Group, has withdrawn its documents for an initial public offering (IPO) worth 900 crore, an update Securities and with the Exchange Board of India (Sebi) showed on Monday.
