In Budget 2020, the dividend distribution tax (DDT) paid by companies has been scrapped. Tax on dividend from companies to shareholders will now be payable in the hands of shareholders at their applicable slab rates. The budgets proposal to levy 10 percent TDS on dividend paid by mutual funds had led to some confusion among investors as it was not clear whether this tax would apply to capital gains from mutual funds as well. The CBDT later clarified that the TDS was applicable only on dividend paid in excess of Rs 5,000.
NSE
"It is hereby clarified that under the proposed section, a mutual fund shall be required to deduct TDS at 10 per cent only on dividend payment and no tax shall be required to be deducted by the mutual fund on income which is in the nature of capital gains," said the tax authority.
Monetary policy
The RBI has kept the repo rate unchanged, at 5.15 percent in its monetary policy. The central bank said that it will maintain an 'accommodative' stance for as long as it is required to revive the economy.
The Monetary Policy Committee (MPC) said:
"Economic activity remains subdued and the few indicators that have moved up recently are yet to gain traction in a more broad-based manner. Given the evolving growth-inflation dynamics, the MPC felt it appropriate to maintain status quo."
In addition to keeping the repo rate unchanged, the RBI has projected GDP growth for FY 2020-21 at 6 percent.
Kotak Mahindra MF schemes merger
Kotak Mahindra Mutual Fund has approved the merger of Kotak World Gold Fund (Merging Scheme) and Kotak US Equity Fund (Merging Scheme) into Kotak Global Emerging Market Fund (Surviving Scheme) with effect from 26 February.
Since the merger constitutes a change in fundamental attributes of the merging schemes, unitholders who do not wish to be invested in Kotak Global Emerging Market Fund can redeem their units without any exit load until 25 February 2020.
Index Returns
Source: BSE / NSE
Top 5 best performing funds
| Name | 1W | 1Y | 3Y |
| Edelweiss Gr China Equity ... | 4.4% | 31.9% | 19.8% |
| Franklin Asian Equity | 4.0% | 17.0% | 12.9% |
| UTI MNC | 3.9% | 5.8% | 10.5% |
| HSBC Global Emerging Markets | 3.8% | 9.1% | 9.9% |
| Invesco India PSU Equity | 3.7% | 26.2% | 5.6% |
Source: Kuvera.in
Top 5 worst performing funds
| Name | 1W | 1Y | 3Y |
| DSP World Gold | -1.5% | 23.8% | 0.8% |
| Invesco India Gold | -1.4% | 20.7% | 9.3% |
| ICICI Prudential Bharat 22 Fof | -1.2% | -4.7% | NA |
| HSBC Infrastructure Equity | -1.1% | -0.3% | -7.4% |
| Aditya Birla Sun Life Gold | -1.0% | 22.5% | 10.4% |
Source: Kuvera.in
What investors bought
We saw the most inflows in these 5 Funds –
| Name | 1W | 1Y | 3Y |
| Axis Bluechip | 2.2% | 21.0% | 19.6% |
| Parag Parikh Long Term Equity | 2.3% | 16.4% | 14.6% |
| UTI Nifty Index | 1.1% | 10.5% | 12.5% |
| Kotak Standard Multicap | 1.6% | 16.5% | 13.0% |
| Axis Small Cap | 1.3% | 37.4% | 16.6% |
Source: Kuvera.in
What investors sold
| Name | 1W | 1Y | 3Y |
| HDFC Hybrid Equity | 0.8% | 9.5% | 6.0% |
| ICICI Prudential Equity Arb | 0.2% | 6.7% | 6.7% |
| UTI Arbitrage | 0.2% | 6.8% | 6.7% |
| HDFC Balance Advantage | 0.7% | 8.4% | 10.5% |
| Sundaram Mid Cap | 3.2% | 15.6% | 5.8% |
Source: Kuvera.in
Most Watchlisted Fund
Top 5 funds added to watchlist by Kuverians
| Name | 1W | 1Y | 3Y |
| Axis Bluechip | 2.2% | 21.0% | 19.6% |
| SBI Banking & Financial Services | 1.9% | 26.2% | 21.2% |
| Mirae Asset Emerging Bluechip | 1.3% | 19.5% | 15.1% |
| Axis Focused 25 | 2.3% | 24.6% | 18.6% |
| Axis Long Term Equity | 2.6% | 23.4% | 17.6% |
Source: Kuvera.in
Top ELSS funds
| Name | 1W | 1Y | 3Y |
| Canara Robeco Equity Tax Saver | 3.5% | 16.3% | 14.6% |
| BOI AXA Tax Advantage | 3.0% | 26.4% | 14.9% |
| Invesco India Tax | 2.6% | 16.1% | 14.3% |
| Axis Long Term Equity | 2.6% | 23.4% | 17.6% |
| Nippon India Tax Saver | 2.3% | 8.1% | 3.2% |
Source: Kuvera.in
Movers & Shakers
ICICI Prudential Mutual Fund has announced that Lalit Kumar will cease to be the fund manager of ICICI Prudential MNC Fund. Anish Tawaklay will continue as the sole fund manager of the scheme.
ICICI Prudential Mutual Fund has announced a change in scheme name of ICICI Prudential Moderate Fund (FOF) to ICICI Prudential Income Optimizer Fund (FOF) , with effect from 03 February 2020. There will be no change in the fundamental attributes of the scheme.
BNP Paribas Mutual Fund has approved the change in the name of BNP Paribas Substantial Equity Hybrid Fund to BNP Paribas Equity Hybrid Fund with effect from 17 February 2020. There will be no change in the fundamental attributes of the scheme.
Quote of the week:
An example of how a viral transmission is different than normal information transmission can be illustrated thusly: if information were spread in a memetic fashion, it would infect a subject, and, were the information's traits conducive to the information's survival, then the subject would accept the idea. This is strongly contrasted with information theory, in which the information is accepted based on how useful it is to an individual, e.g. the idea is accepted because it helps the subject survive if they accept it. Viruses, being obligate parasites, do not always help their host (in this case, the subject) survive.:- Idav Kelly
First Published:Feb 8, 2020 11:47 AM IST
zpostcode
Recruit
weather
mreligion
Yellowpages
sport
constellation
shopping
name
game
directory
literature
Word
tour
furnish
Lottery
tftnews
lyrics
News
digital
car
dir
Edu
Finance
