Portfolio Rebalancing: What Is the Real Benefit?
Investors often hear about the importance of an annual or a semi-annual portfolio review of their finances. We, too, promote this practice as it helps to know whether or not one’s financial goals are on track. A portfolio review also helps to remove any badly performing stocks or other investments, or tweak the portfolio, taking into account important changes in life.
 
But an...
Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital Access

Subscribe

Moneylife Magazine Subscriber or MAS member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • MFs unlikely to get priority in DHFL refund, haircut imminent'
    Even as mutual funds have been impatient regarding their dues from crisis-hit DHFL, which will soon go the insolvency way, legal experts say that it is unlikely that the funds would be the first in the list of creditors to get back their dues.
     
    They are also of the view that the fund houses would have to take a haircut, much against the their wish of incurring any such paring down of their refunds.
     
    Mutual fund houses want the Wadhawans, the promoters of Dewan Housing Finance Corp Ltd (DHFL), to arrange funds and pay back their dues and are likely to raise the issue in the committee formed by the Reserve Bank of India (RBI) to administer DHFL.
     
    "I don't think it is possible legally. Any resolution has to be comprehensive, it cannot be that one party gets the money out of the system, and obviously if the CIRP process has started, then any payment has to be as per the IBC (Insolvency and Bankruptcy Code) regulation itself, " said Manoj Kumar, a partner at law firm Corporate Professionals.
     
    "The company cannot redeem any part, during the CIRP. even if it happens before the commencement of the CIRP (Corporate Insolvency Resolution Process), even then, if they make the payment, it will be made on a priority as per the provisions of the IBC," he added.
     
    Sector experts are of the view that fund houses cannot themselves prsessure the promoters for refund. They feel it is too late for them to take up the matter as the RBI has superceded the company board and will now move for insolvency.
     
    Last week, citing governance concerns, the RBI superseded the Board of Directors of the housing lender and said that it intends to shortly initiate the process of resolution of the company. Promoters hold around 39 per cent stake in DHFL.
     
    The central bank appointed R. Subramaniakumar, former MD and CEO of Indian Overseas Bank, as the administrator of the company. One of the members of the committee is N.S. Venkatesh, the Chief Executive of the Association of Mutual Funds in India (AMFI), which has raised hopes among mutual fund firms of extracting the highest possible returns with least haircut. 
     
    Estimates show that the housing firm NBFC owes around Rs 84,000 crore as of July 6, to banks, the National Housing Board, mutual funds and bondholders.
     
    As per an inspection report conducted by the Regional Director (Western Region) of the Corporate Affairs Ministry, DHFL has a total loan portfolio of Rs 95,615 crore, the Finance Ministry informed the Lok Sabha on Monday.
     
    DHFL has been going through a liquidity crisis for around a year now and the promoters of the company have also been accused of fraud and siphoning off money.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Rajolu Ramam

    2 weeks ago

    Better late than never. When a small time thief steals one thousand rupees, he will be caught, first thrashed and handed over to the police. What we call these Bada chor who has misused public funds. Whether any body can thrash them.Still they are enjoying luxorious life with the ill-gotten money.

    ishan Chakravarthy

    2 weeks ago

    Excellent

    Hot and Cold Stocks of Mutual Funds in October 2019

    In October 2019, ICICI Lombard General Insurance Company  and Infosys were the most preferred stocks of Indian mutual funds. The net purchases of ICICI Lombard General Insurance were Rs1,114 crore. Bajaj Finance  and ICICI Bank were the most sold stocks. The net sales of Bajaj Finance were Rs860 crore and net sales of ICICI Bank were Rs811 crore.

     

    Premium Content
    Monthly Digital Access

    Subscribe

    Already A Subscriber?
    Login
    Yearly Digital Access

    Subscribe

    Moneylife Magazine Subscriber or MAS member?
    Login

    Yearly Subscriber Login

    Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone