While some public data has definitely gone out of circulation after the brakes on fund growth, availability of direct investment in mutual funds without mandatory commissions, such game changing regulation also coincided with the brave AMFI India's monthly data not being available ( maybe my browser don't work)

A year since we printed the monthly fund report, the new QFI regulation is also miles away from making a discrening impact on fund flows even as Cash market volumes pick up after a lean 18 months with current disparaging index valuations calling out value equations for many. ( that has an interesting take too, in last week's post marathon)

Fixed Income offers a great ramp in returns too for those not on board yet, as markets correct yield in anticipation and RBI holds out, taking the rate cut cycle to all FY13 and then some as it is unlikely to be in a hurry to cut rate this time.

Gilts and Corp bonds up front offer good returns, then the unsuccessful floats asds duration management was never put on charter by our Fixed income managers and India's unique opportunities from the inverted curve lost to many.

Yet the most opportune because of the inattention from investors is the Balanced Fund family. While Fixed income returns will likely be pruned in adjustments to the small amount of investors, some balanced fund regimes have the experience and the intelligence to deliver According to an ET report today, the amount of funds in this family with 40-60% equity allocation is a minor 4.5% of the overall india fund management industry. You could see a couple of fund launches in this sector but I suspect the first rush there is in general equity regimes. You could ccjust choose the Prudence Fund franchise for your cuppa choice in breakfast mornings~!

Posted via email from The India Investment Post