Sebi Gives Mutual Funds a Reality Check
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8 ISSUES AND INSIGHTS MUMBAI | THURSDAY 21 FEBRUARY 2019 > 5.1 million followers. Mostly tweeting political party or politician he’s follow - > CHINESE WHISPERS achievements of the government, the ing right now. On Twitter since July Twitter and elections minister for railways and coal has sent 2009, he has sent out just 2,051 tweets out 20,000 tweets since he joined in in close to 10 years. With the Lok Sabha polls round the corner, this might be a good April 2013. He himself is following 497 Amit Shah is third with 12.6 million Picture imperfect including Amitabh Bachchan, Preity followers. The BJP president, who time to look at the top Twitter influencers among our politicians Zinta and Ajay Devgn; business cham - joined Twitter in May 2013, is following A bers and a couple of industrialists, just 282, most of them leaders from his H N I S to Twitter in these fraught times. ers from the party. As for Mamata, apart from Prime Minister Narendra party and related organisations apart Y Let’s check out 10 possible influ - she’s been around for almost five years Modi, Finance Minister Arun Jaitley from an actor or two. A N I B encers in the Twitter gallery as the on the platform and has tweeted 5,134 and other party leaders. Delhi Chief Minister and Aam Y B countdown to 2019 elections has begun. times. While her followers are at 3.15 Rahul Gandhi is on number five Aadmi Party leader Arvind Kejriwal has N O I The three ladies—Bahujan Samaj million, she’s not much of a follower with 8.6 million followers. A regular an impressive 14.5 million follower T A R Party Chief Mayawati, newly-inducted herself. She’s kept it short at 31, choos - voice on social media, he joined in base. Since November 2011, when he T S U Congress General Secretary Priyanka ing to have actors and singers besides April 2015 and has sent out 4,140 got into Twitter, he has sent out 27,300 L L Gandhi Vadra and West Bengal Chief the Prime Minister’s Office (PMO) and tweets. The Congress president fol - messages. He’s following 209, including I Minister Mamata Banerjee — are at the politicians including Rahul Gandhi, lows only 206 including Priyanka, leaders cutting across parties. PM Modi, bottom of this list with 99,400, 215,000 Piyush Goyal, Arun Jaitley and Arvind Akhilesh Yadav, Kanimozhi, Mamata Nitin Gadkari, Chandrababu Naidu, Not surprisingly, Madhya Pradesh Chief NOT FOR PROFIT and 315,000 Twitter followers, respec - Kejriwal on the list. She’s also follow - Banerjee and Sharad Yadav. The list Omar Abdullah, Nitish Kumar, Sitaram Minister Kamal Nath is a critic of the NIVEDITA MOOKERJI tively. Going by the numbers, they have ing the Kolkata Police. also has a mix of business people Yechuri, Mamata Banerjee are among predecessor government, led by Shivraj to go aggressive to improve their social Nitin Gadkari is in the seventh place (Ratan Tata, Anand Mahindra, the names. The list does not ignore the Singh Chouhan of the Bharatiya Janata media standing. as per the number of followers. The Bhavish Aggarwal), celebrities (Sachin lieutenant governor of Delhi despite the Party (BJP). On Tuesday when he met ounded some 13 years ago, the Mayawati joined Twitter only in road transport and highways minister Tendulkar, Lata Mangeshkar) and top faceoffs. prospective investors and businessmen San Francisco-based social October 2018 and has sent out only 44 has been a slow adopter of social media. tech names (Satya Nadella, Sundar Topping the list is, of course, the PM, in Bhopal, he criticised the previous F media platform Twitter will messages. While she has already got Not too long ago, he was following only Pichai, Tim Cook)… There’s no promi - with 45.7 million followers. A Twitterati government's single-window play more than an important role in 99,400 followers, she’s not following three; now the number has risen to 132. nent BJP name here. since January 2009, he’s sent 22,400 clearance system, calling it a failure. the upcoming Lok Sabha elections in anybody other than Twitter Support. But he’s yet to embrace anything global Samajwadi Party leader Akhilesh messages, less than Kejriwal’s count. Of But in what is seen as a major India, if the current political narrative Priyanka is the latest kid on the block. on Twitter. He’s following most things Yadav is a notch higher with 9.07 mil - this list, Modi is following the maxi - embarrassment for his government, is to be believed. That the She joined Twitter earlier this month, BJP apart from the PMO and ministers. lion followers at number four. The mum number of people and organisa - just before the meeting started, Parliamentary Standing Committee coinciding with her entry into politics, Having joined in December 2009, he’s number of people he follows, at just tions at 2,124, including celebrities, booklets relating to different industries summoned the Twitter global chief to and she hasn’t sent out any tweets so sent out 3,070 tweets — most of them 16, doesn’t compare with his popular - industrialists, startups and both Indian and policies were distributed among explain his stand on safeguarding cit - far. She’s managed a follower base of in the last few months. He’s being fol - ity. And they are mostly actors/celebri - and international media. the guests. Pictures of Chouhan and izens’ rights on social media platforms 7,215 but is following only seven — lowed by 4.41 million. ties (like Vidya Balan, Amitabh Will this effort translate into votes? Deen Dayal Upadhyaya, a Jana Sangh shows the seriousness being attached brother Rahul Gandhi and some oth - Piyush Goyal is at number six with Bachchan, A R Rahman). There’s no There’s time still to work on the numbers. leader of yesteryear, adorned the booklets, which were printed during the previous regime. No time to waste Congress Sebi gives mutual funds a reality check President Rahul Gandhi ( pictured ) Guidelines on returns, classification and labelling will scale back ‘outperformance’ claims and improve transparency has been meeting people with gusto JASH KRIPLANI Subramaniam, group president and allocation to stocks that align with the these days. On head (equity), at UTI MF. scheme’s mandate. Tuesday, he met a he mutual fund industry has had Another big move by the regulator Some players within the MF industry small group of a good run for quite some time. has been the re-classification of schemes. see this as an opportunity for low-cost businessmen in T Fund collections, especially Under these guidelines, large-cap funds products such as exchange-traded funds New Delhi under through systematic investment plans, can allocate 80 per cent of their stocks (ETFs) and index funds. These funds the apni baat Rahul ke saath have been to the tune of ~8,064 crore a in large-cap companies or the top 100 reflect the returns of an underlying index umbrella. During the meeting, a small- month — an all-time high. companies. Mid-cap funds can have 65 of companies and are available at lower time trader from Indore suggested his Amid this euphoria, however, the per cent in mid-cap stocks, and small- fees for investors. party consider paying special attention industry has also had to ride through the cap funds can have 65 per cent in small- The fees charged by ETFs can be as to the handloom industry in Madhya crisis that hit mid-and small-cap funds, cap stocks. The result of this classifica - low as 0.1 per cent against fees of 1.5-2.25 Pradesh. Being the second-largest defaults by Infrastructure Leasing & tion could be that fund managers could per cent charged by large-cap schemes, industrial sector in the state, it has the Financial Services and other companies, find it harder to outperform benchmarks say analysts tracking the MF industry. potential to generate employment in and of course, implement several guide - because they won’t be able to dabble too “While alpha [outperformance] will per - large numbers. After listening to him lines of the Securities and Exchange much in riskier stocks. THE ROAD TO TRANSPARENCY sist for mid- and small-cap categories, patiently, Gandhi whisked out his Board of India (Sebi). The new regulations require large- EARLIER NOW index funds and ETFs will have a larger mobile phone and called Chief Minister Sebi’s changes, which were proposed cap schemes to invest at least 80 per cent | Scheme returns were compared | Scheme returns need to be compared role to play in the large-cap space,” Kamal Nath. He organised their in October 2017 and notified last year, of their funds in the top-100 companies. against just price gains of a against price and dividend gains under Edelweiss MF’s Gupta says. meeting without delay. will have a long-term impact on equity We have recently seen only a few stocks benchmark Total Return Index method Retail investors haven’t started funds’ performance. The new norms within this universe outperforming,” boarding the ETF bandwagon aggres - have introduced more transparency and Anand Vardarajan, head of business and | Schemes, whether a large- mid- | Reclassification requires schemes sively, as only seven per cent of ETF will also scale back claims of product strategy at Tata MF or small-cap mandate, had leeway to be in line with their assets are owned by individual investors. Gadkari, the film outperformance by many said. Last year, 67 of the Nifty- But some MFs are already exploring It isn't just the poster of a movie on the schemes.