Day Trading Stocks & Futures

[siddhant4u]

shit about to hit fan if you are holding large caps ?

 

[siddhant4u]

Looks like if SEBI go ahead with circular, small cap will have min 50,000 Cr investment in 3-4 month !!

 

[timepass]

wtf is this ? https://www.financialexpress.com/ma...equities-to-75-pc-for-multicap-funds/2081065/


Sebi on Friday tweaked asset allocation framework for multicap mutual funds, asking such funds to have a minimum corpus of 75 per cent invested in equities as against the present mandate of 65 per cent.

Further, such funds will have to make a minimum investment of 25 per cent each in equity and related instruments of largecap, midcap and smallcap companies, Sebi said in a circular.


does that mean multicap fund with 40% exposure to largecap will have to sell off and buy smallcap and midcap to balance ?

Maybe it means that the funds have till the next budget to rebalance their portfolio.

"All the existing multicap funds will ensure compliance with the provisions within one month from the date of publishing of the next list of stocks by industry body Amfi (Association of Mutual Funds in India), that is January 2021, it added. "

 

[Dr. Jan Itor]

wtf is this ? https://www.financialexpress.com/ma...equities-to-75-pc-for-multicap-funds/2081065/


Sebi on Friday tweaked asset allocation framework for multicap mutual funds, asking such funds to have a minimum corpus of 75 per cent invested in equities as against the present mandate of 65 per cent.

Further, such funds will have to make a minimum investment of 25 per cent each in equity and related instruments of largecap, midcap and smallcap companies, Sebi said in a circular.


does that mean multicap fund with 40% exposure to largecap will have to sell off and buy smallcap and midcap to balance ?

I was completely unaware about this... is this providing a solution to some existing problem in the MF industry or is it the other way round?

 

[iwillwin]

Multicap schemes will slowly die out then...it's difficult to find smallcap themes with liquidity to pump 40-50k crores

 

[cinderblock]

How hard is it to just rename the fund? I don't know. The investors won't care what it is called.
Like if smlcap has only a small allocation, call it a Large and mcap fund and sell the small cap holding to a dedicated smlcap fund internally.

 

[TracerBullet]

I was completely unaware about this... is this providing a solution to some existing problem in the MF industry or is it the other way round?

SEBI is on a mission to make record number of changes, whether it makes sense or not. i dont know whether they even consult the players or just make up rules in their dreams. This kind of tinkering is manipulative - moving large amount of money from one class to another ( previously from midcaps to largecaps ).

Multicap to my mind meant freedom to go whatever was more interesting to fund manager. Same weightage for small and mid caps seems absurd. Now funds will chase small caps.

Deadline is jan 21

"All the existing multicap funds will ensure compliance with the provisions within one month from the date of publishing of the next list of stocks by industry body Amfi (Association of Mutual Funds in India), that is January 2021, the regulator noted."

 

[travi]

SEBI is on a mission to make record number of changes, whether it makes sense or not. i dont know whether they even consult the players or just make up rules in their dreams. This kind of tinkering is manipulative - moving large amount of money from one class to another ( previously from midcaps to largecaps ).

Multicap to my mind meant freedom to go whatever was more interesting to fund manager. Same weightage for small and mid caps seems absurd. Now funds will chase small caps.

Deadline is jan 21

Equal weightage is tough to manage, they'd rather have kept a flexible weightage range, like minimum 10-15% to ensure that something is distributed fairly.
Like the kotak multicap fund i've held since my early days which has been renamed a few times As of now, only 1.5% in smallcaps and 22% in MC, the rest in LC.
A minimum holding of say 10%( or 15% ) in each cap would easily serve the purpose in a better way.

Later i realised that i'm better off managing a handful of them myself and put some lumpsum in smallcap / midcap specific funds.

For eg. this year, MF are selling RIL as they cant have more than 10% single stock holding, so NS has outperformed all of them.
Momentum strategy not allowed in MF what is not rising should be bought more.

 

[TracerBullet]

Equal weightage is tough to manage, they'd rather have kept a flexible weightage range, like minimum 10-15% to ensure that something is distributed fairly.
Like the kotak multicap fund i've held since my early days which has been renamed a few times As of now, only 1.5% in smallcaps and 22% in MC, the rest in LC.
A minimum holding of say 10%( or 15% ) in each cap would easily serve the purpose in a better way.

Later i realised that i'm better off managing a handful of them myself and put some lumpsum in smallcap / midcap specific funds.

For eg. this year, MF are selling RIL as they cant have more than 10% single stock holding, so NS has outperformed all of them.
Momentum strategy not allowed in MF what is not rising should be bought more.

They have flexibility of 25% with min 25% in small/mid/large. Yes, smaller minimums would have made much more sense. From what i remember small caps only added to volatility of returns without too much benefit, so small cap limit is what i dont really like. Now we will probably have many funds getting relabeled to large and mid or large cap.
I am too thinking of finding some long term systems in future as alternative to MF. Maybe next year i will get more time for that. But there is tax implication so performance has to be reasonably better. And then there is question of that vs finding trading systems on smaller timeframes like daily. Lets see.

 

[bpr]

this kinda makes sense it is not hedge fund that u want full flexibility ...
last thing we want is duplicate large cap funds in the name of multicap funds ...
but the rule could have been introduced in the begining when multicap was launched to avoid such issues.