Business
Changing Dynamics: Smaller fund houses outpace major players in 2021
The mutual fund space has grown over the pandemic and interestingly so far in 2021, several smaller companies have gained momentum and outpaced the growth of established major players.
In tandem with the rise in the equity market, small players made giant strides during the year.
Equity schemes of fund houses like Quant Mutual Fund, ITI Mutual Fund, PPFAS Mutual have been among the best performing schemes so far in the year.
The assets under management of Quant witnessed over five-fold rise during January-July 2021. Its AUM in December 2020 stood at Rs 521 crore and by July-end it reached Rs 2,842 crore, showed data from primemfdatabase.com.
The AUM of ITI Mutual Fund rose over 100 per cent to Rs 1,879 crore and PPFAS Mutual Fund’s AUM also nearly doubled to Rs 14,318 crore.
Some of the schemes of relatively new fund houses have given blockbuster returns with several of them coming from Quant Mutual Fund. As per the market estimates, ICICI Prudential Technology Fund, Quant Tax Plan Fund, PGIM India Midcap Opportunities Fund, Quant Infrastructure Fund and Quant Active Fund are the top five equity funds giving best returns ranging from 80 per cent to over 100 per cent.
Kotak Mahindra Mutual Fund, a major player in the segment, has the highest AUM of over Rs 2.58 lakh crore as of July 2021, 13 per cent higher than Rs 22.78 lakh crore, the Prime Database data showed.
According to Pranav Haldea, Managing Director of Prime Database Group, the higher growth rate of AUM of smaller fund houses is due to low base effect along with their identification of specialised offerings.
“One reason is low base effect, and second I think smaller fund houses have done a commendable job in terms of identifying niches where they have specialised,” he told IANS.
He further said that performance of these mutual funds along with the incumbent giants will continue to be robust.
“The sort of AUM growth which you have seen in the mutual fund industry in the five odd years, the AUM now stands at close to 35-36 lakh crores. So the growth of these smaller fund houses will also extract a fair share of that growth,” he said.
Haldea told IANS that the growth will continue because there will be more channellising of retail savings into mutual funds going forward.
More and more retail investors in the last one and half years have come to the capital market as various other kinds of investment markets are not providing the investment returns that they are used to.
“So retail investors are increasingly looking at equity and the markets obviously are supportive and the markets are doing really well,” he said.
N.S. Venkatesh, Chief Executive, Association of Mutual Funds in India (AMFI) said: “Mutual Funds have emerged as the preferred savings-cum-investment avenue over the last few years, and the pandemic has actually triggered this shift towards Mutual Funds in a more pronounced way.”
This shift will continue in 2021 and beyond, accentuated by Sebi-driven initiatives towards transparency and disclosures, he said.
“Over the years, mutual fund industry too, has deepened its penetration, beyond top 15 cities, even as number of MF players has risen with new fund houses coming in to mutual fund industry, enabling steady but sure rise in the number of investors who have been embracing mutual funds as the preferred savings tool,” Venkatesh said.
The number of mutual fund investors in the country has doubled to 2.39 crore as of June 30, 2021 from 1.19 crore at the end of March 2017, thereby indicating that pandemic has actually had no impact on the inflows, he added.
The mutual fund industry AUM rose 4.9 per cent in July 2021 to a record Rs 35.3 lakh crore due to inflows into both equity funds and debt funds
An ICICI Direct Research report said that IT funds have been consistent outperformers in the last two to three years as the growth outlook improved for the sector in the post Covid world resulting in valuation re-rating of most stocks.
The sectors or segments like infrastructure, PSUs that lagged behind in the early part of the rally, have started to gain traction indicating the healthy trend of sector rotation, it said.
“Small cap funds have been consistent outperformers in the last one year after they were beaten down during the Covid pandemic induced market fall. Midcaps also followed small cap funds and have outperformed other categories. However, there seemed to be some profit booking recently as it underperformed in the last one month,” it said.
Business
US flight disruption: Air India advises passengers to check latest status

New Delhi : Air India on Saturday advised passengers to check the latest status of their flights and plan their journey to the airport accordingly, amid massive disruption at the US airports. The Federal Aviation Administration (FAA) lifted a nationwide ground stop that had halted departures at US airports after a communications failure, though airlines warned that disruption and cancellations could continue.
“A nationwide ground stop is currently in effect across the US due to communication outages affecting air traffic operations. As a result, departures from airports across US are impacted, with possible consequential disruptions to Air India flights to and from the US,” Air India said in a statement posted on X. “Our teams continue to closely monitor the situation and will share updates as available,” it added. The cancellation of US flights happened after a communications problem affected air traffic operations. The notice announcing the cancellation did not specify the cause of the failure or say that airline schedules had returned to normal.
Earlier, the FAA’s Air Traffic Control System Command Center said the ground stop remained in effect across a large portion of the country, although some coastal facilities had been able to release international departures. In an update, American Airlines said some flights from certain airports were beginning to receive clearance to depart. At that point, most departures remained paused, and the airline expected further disruption, including unavoidable cancellations. American advised customers to check their flight status and review its travel alert for options. Its warning was issued before the FAA’s cancellation advisory. Homeland Security Secretary Markwayne Mullin told reporters earlier that officials had acted as a precaution following a telecommunications outage affecting the FAA. “There is no indication as of yet that this was a nefarious attack,” he said at the time. That preliminary assessment did not rule out a cyberattack.
General
FBI warns AI tool can speed up cyberattacks

Washington : The FBI has warned that cybercriminals are using an artificial intelligence-assisted security testing tool to accelerate attacks on organisations around the world, with some intrusions reaching privileged access in less than three hours. In an alert issued on Friday (local time), the bureau said malicious actors had used the open-source framework, known as ARTEX, since at least August to target organisations across sectors including finance, government, technology, defence, energy and health care. The FBI said the tool can automate several stages of an intrusion, from identifying potential targets to preparing or carrying out data theft. That speed can leave defenders less time to detect and respond to an attack, it said.
The alert said some intrusions progressed from initial targeting to privileged access in under three hours. According to the alert, the framework was originally intended for authorised security testing. Its developer removed the original online repository in October following reports of malicious use, but copies and variants remained available, the FBI said. The bureau said the tool could lower the technical barriers for conducting complex operations and allow attackers to pursue multiple targets at the same time. Organisations’ internet-facing applications, cloud infrastructure and systems connected to suppliers or partners were among the areas of concern identified in the alert.
The FBI cited financially motivated attacks on South Korean financial institutions that it said resulted in personal information being taken from approximately 67,000 people. It also described a separate supply-chain compromise affecting users of a cloud backup service, which it said enabled access to more than 2,250 downstream customer environments. The bureau encouraged organisations to review their exposure to the internet, strengthen identity and access controls, monitor unusual activity and protect credentials. It also urged organisations that identify suspicious activity to contact the FBI or report it through the Internet Crime Complaint Center.
Business
India’s forex reserves climb $2.49 billion to $719.5 billion, gold holdings surge to $104.8 billion

India’s foreign exchange reserves rose by $2.49 billion to reach $719.547 billion in the week ended November 6, according to data released by the Reserve Bank of India (RBI) on Friday.
This increase follows consecutive weeks of decline, during which the reserves had slipped from $722.3 billion in the week ended October 17 to $717.057 billion by October 30.
The uptick in reserves was primarily driven by a sharp rise in gold holdings, which surged by $2.205 billion to $104.796 billion during the week, the RBI data showed.
Foreign currency assets, which form the largest component of India’s forex reserves, also rose by $232 million to $591.350 billion.
These assets are influenced by changes in the value of non-US currencies such as the euro, pound, and yen that are held in the reserves.
India’s Special Drawing Rights (SDRs) with the International Monetary Fund climbed by $52 million to $18.610 billion, while the country’s reserve position with the IMF increased by $1 million to $4.791 billion.
In rupee terms, the country’s total foreign exchange reserves stood at Rs 67,58,986 crore as of November 6.
Notably, the weekly increase in dollar terms came even as the reserves declined by Rs 49,742 crore in rupee terms, as per the data.
India’s forex reserves had previously touched an all-time high of $785.7 billion in the week ended September 4, following significant foreign currency inflows through a special concessional swap scheme for diaspora deposits.
Meanwhile, earlier this month, the central bank eased the foreign exchange reporting requirements for small exporters and importers of services.
Under the amended Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, individual service exporters will be deemed to have submitted the Export Declaration Form (EDF) once they provide the required payment-related information to their authorised dealer bank for crediting the proceeds to their accounts.
For exporters other than resident individuals, the same treatment will apply if the inward remittance for the service is not more than Rs 10 lakh or its equivalent in foreign currency.
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