Mutual Fund News

Mutual fund inflows surge as banks lower deposit rates

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Mutual fund investments witnessed a significant surge in the June quarter, buoyed by a wave of interest rate cuts by banks and the Reserve Bank of India (RBI). With top banks such as SBI, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank reducing fixed deposit (FD) rates on tenures above one year by 15-60 basis points, investors have increasingly turned to mutual funds for better returns.

Total net inflows into mutual funds reached Rs 3.55 lakh crore in Q1 FY26, compared to just Rs 12,658 crore in the previous quarter. Debt funds led the trend, recording inflows of Rs 2.01 lakh crore, reversing a sharp outflow of Rs 80,536 crore in the March quarter.

Analysts attribute the rise to investor appetite for higher yields amid a softening interest rate regime. The trend is expected to strengthen further if rate cuts continue.

SEBI rejects Anil Ambani's plea to settle Yes Bank bond case

The Securities and Exchange Board of India (SEBI) has dismissed Anil Ambani's request to settle charges related to controversial investments in Yes Bank's additional tier-1 (AT1) bonds. The investments, made through Reliance Mutual Fund (RMF) between 2016 and 2019, totaled Rs 2,150 crore and were later written off during Yes Bank's financial crisis in 2020.

SEBI's investigation alleged that RMF's bond purchases were linked to loans extended by Yes Bank to other firms within the Anil Ambani Group. RMF was sold to Nippon Life Insurance in 2019, but the charges predate the sale. SEBI concluded that the fund's actions caused significant market-wide disruption and declined Ambani's proposal to settle without admitting guilt.

The rejection could expose him to penalties exceeding Rs 1,828 crore. The case adds to regulatory scrutiny of the Anil Ambani group's financial dealings during that period.

NSE pays Rs 40.35 crore to settle SEBI probe on data handling lapses