A hedge fund manager in Hong Kong has publicly apologised after a parody video of him licking his finger and wiping it on a hand rail in a metro car went viral, sparking anger in the city which is grappling to contain an outbreak of the new coronavirus.

We’ve passed our goal and greenlit one more episode of Multiplex 10: The Web Series, so we’ll get back into production as soon as the Indiegogo campaign ends. But we’re not done yet! We have exactly one stretch goal: for every $2,500 over the base goal, we will produce at least two more minutes of … Continue reading Multiplex 10: The Web Series is FUNDED on Indiegogo!

Anyone who has worked in retail or the service industry has had to deal with wildly entitled customers, like this Karen who lied to a restaurant owner's face. There are customers out there, who, out of some weird desire to bully people and get their way, will even demand a service that will potentially hurt them, like this Karen who demanded a "fresh" donut straight from the fryer oil.  When trying to understand how someone can be so ruthlessly rude to the people around them, it helps to get some insight from people who know Karens explaining what that's like.

Demand for milk has dropped with the closure of cafes and restaurants during the coronavirus crisis.

MPs consider a petition signed by 330,000, asking for students to get money back on fees this year.

Royal Challengers Bangalore teammates AB de Villiers and Virat Kohli have put up equipment -- that were used during their historic partnership against Gujarat Lions in 2016 edition of the Indian Premier League (IPL) -- on auction in order to raise funds for the fight against coronavirus pandemic.

de Villiers on Monday took to social media to upload images of the signed equipment and announced all the proceeds will go to both the countries in their respective fights against the ongoing crisis.

The duo struck the highest-ever partnership in the history of the tournament when they put together 229 runs against Gujarat in 2016 IPL. Both the players slammed respective centuries during the course of the historic partnership.

"Cricket has given me many incredible memories -- and among the most precious stands the partnership with Virat Kohli, playing for RCB against Gujarat Lions in 2016," de Villiers wrote on his Instagram account.

"Everything clicked on what was an unforgettable night in the IPL. The capacity crowd at the M. Chinnaswamy Stadium were going crazy and we both scored centuries in a partnership of 229 off 96 balls. More importantly, RCB won the match by 144 runs.

"Now we find ourselves in a global crisis caused by COVID-19 pandemic and Virat and I would like to help the people in need, people struggling to put food on the table.

"So we are putting some items from that special day in 2016 and creating one unique auction item. All money raised will be donated to charities supporting people most affected by the crisis, split 50/50 between charities working in South Africa and India," he added.

Kohli also used the repost option to share de Villiers' post onto his Instagram account for his followers to see and take part in the auction as well.

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Amid the rising number of coronavirus cases across the city, the Mumbai Police on Monday took to Twitter to thank Bollywood actor Akshay Kumar for his humble contribution towards the Mumbai Police foundation amid the COVID-19 crisis.

Mumbai Police thanks @akshaykumar for contributing Rs. 2 Crore to the Mumbai Police Foundation. Your contribution will go a long way in safeguarding the lives of those who are committed to safeguarding the city - the men and women of Mumbai Police!#MumbaiPoliceFoundation

— CP Mumbai Police (@CPMumbaiPolice) April 27, 2020

While extending a thank you note to the action-superstar of the B-Town industry, Mumbai Police said that the contribution will help to safeguard the lives of the Mumbai Police personnel who are committed to safeguarding the city to fight the global pandemic.

In the past too, Sooryavanshi actor donated Rs 3 crore to help the Brihanmumbai Municipal Corporation (BMC) in order to help them to make rapid testing kits, personal protection equipments and face masks in its battle against the deadly virus.

#RohitShetty has facilitated eight hotels across the city for our on-duty #CovidWarriors to rest, shower & change with arrangements for breakfast & dinner.

We thank him for this kind gesture and for helping us in #TakingOnCorona and keeping Mumbai safe.

— Mumbai Police (@MumbaiPolice) April 21, 2020

Besides helping Mumbai Police and the country's richest civic body, Akshay also contributed Rs 25 crores to the PM CARES fund to help the country fight the epidemic. Earlier, Mumbai police expressed gratitude to Bollywood director Rohit Shetty for facilitating eight hotels across the city for Mumbai police personnel.

Thanking Rohit Shetty for his kind gesture, Mumbai Police said that the facility would help on-duty corona warriors to rest, shower and change with arrangements for breakfast and dinner.

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With the lockdown prompting students and parents in uncertainty, schools in Mumbai have been acting on requests received from parents on rolling back fees and refunding miscellaneous fares.

According to a report in The Times of India, city schools have been rolling back fees for bus and canteen as children are attending classes online and not availing the services.

Parents have been requesting for financial relief from the school as they have been facing pressure in terms of their jobs and businesses due to the lockdown imposed by the government due to the Coronavirus outbreak. A parent was quoted by the newspaper as saying that the requests for carrying forward a portion of tuition fees and/or additional variable costs to the next term were also made, to which schools replied that they are looking for ways to address the concerns in the best possible way.

The Dhirubhai Ambani International School in Bandra Kurla Complex issued a notice to students and parents that states, "During this time, as we offer virtual classes, your child is not availing the school transport service and the canteen snack facility. Taking this into account, the school has decided to refund the charges paid toward these services for the current quarter of 2020."

Addressing the concerns by parents, the management of the Children’s Academy Group of Schools said that they have decided to roll back on the fee hike. The school’s trustee Rohan Bhatt was quoted by the newspaper saying that "We understand that the parents also might be going through a difficult period financially and, hence, have decided to roll back the fee hike for at least six months," adding that they are also allowing parents to pay the fees at their own pace. However, the trustee also mentioned that if the situation persists, the school may face trouble in paying the salaries of teachers and staff.

On the other hand, some parents said that they are willing to pay the schools until they can afford to and as long as children are getting their education from online classes. Lauding the efforts by the teachers, a parent was quoted by the newspaper as saying, "The efforts the teachers and school are putting into teaching the kids is phenomenal. My child is learning everything from football to keyboard through online classes. So as long as we can, we would be willing to support the school."

Meanwhile, on the circular issued by the Maharashtra state education board, asking schools to be considerate while demanding fees for the ongoing and the next academic year, state education minister Varsha Gaikwad said on Friday that the parents can lodge a complain to the district education officers if schools are forcing them to pay during the lockdown period.

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The nation witnessed 85 Indian and global stars come on one platform to raise funds for GiveIndia COVID-19 relief fund for a fundraiser concert that was held live on May 3, 2020. Aamir Khan and Kiran Rao kickstarted the philanthropic extravaganza by singing classic melodies of hope for the virtual audience.

Sharing heartfelt messages of hope with the audience, Aamir and Kiran made sure to urge everyone to contribute to the fundraiser. The classics they chose were- Aa Chal Ke Tujhe by Kishore Kumar and Raj Kapoor's Kisi Ki Muskurahaton Se from Anari and they both sang them beautifully.

Aamir Khan also said that we are passing through a difficult stage and it is important to help the needy and expressed that people should not lose hope. Kiran also said that everyone should come together in tough times.

I for India was a home-to-home fundraiser concert that went live on Facebook on Sunday, May 3, 2020, at 7:30 pm. The concert was a no-sponsors, only-donors approach where 100% proceeds from the fundraiser concert went to the India COVID Response Fund, to support on-ground relief efforts.

The vision for the concert by leaders from the entertainment industry, including Aamir Khan and Kiran Rao was three-pronged: to entertain those locked down in their homes, to pay tribute to those who are working on the frontlines and to raise funds for those who have no work and no home and do not know where their next meal is coming from. The concert features performances and personal messages from the entertainers from across the world.

With the nation facing a lockdown to curb the spread of COVID-19, these efforts by personalities like Aamir Khan inspire many others. Though this is not the first time he has extended his support to help the people affected by the lockdown, the personal touch that Aamir and Kiran gave in order to raise funds is commendable.

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The I for India concert saw the biggest names in Bollywood come together to raise money for GiveIndia.org. The nation witnessed 85 Indian and global stars come on one platform to raise funds for GiveIndia Covid-19 relief fund for a fundraiser concert which was held live on 3 May, 2020. One of the most surprising performances was delivered by the worlds youngest action star Tiger Shroff.

Fans of the actor got to witness a whole new side of him as he flaunted his singing prowess. Tiger October and the yesteryear classic Roop Tera Mastana were the songs of Tiger's choice. The actor sang his heart out but had sunglasses on Tiger felt shy.

Tiger Shroff Sings Roop Tere Mastana To Raise Funds During I For India Concert#TigerShroff @iTIGERSHROFF #IForIndia @TeamTIGERSHROFF @AyeshaShroff pic.twitter.com/tNBSU54633

— TIGER SHROFF Planet™ 𝓐𝓴𝓼𝓱𝓪𝓲 (@TIGERSPLANET) May 3, 2020

The actor stunned the audience as he showed off his skills to the point where fans want him to come up with his own single and also to sing in his forthcoming films.

 

 

 

View this post on Instagram

I love my INDIA ðŸ˜ÂÂŽðŸ˜ÂÂŽ

A post shared by tigershroff (@tigershroff_95009_) onMay 3, 2020 at 7:56am PDT

On the work front, Tiger's recent release Baaghi 3 was a box office hit and saw the actor take action to the next level as he battled against a nation. The actor will next be seen in the sequel of Heropanti which will release in 2021.

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In a historic move, India's biggest fundraiser concert to raise funds for GiveIndia Covid-19 relief fund was met with an unprecedented response by millions of people across the globe. Held live on 3rd May, 2020 IST on Facebook Live, India's biggest virtual concert witnessed 85 plus Indian and global stars on one platform to raise funds for those affected by Covid-19 pandemic.

Shah Rukh Khan, who was more than happy to be a part of this noble initiative, urged everyone to contribute in whatever capacity they could. The superstar pulled off an interesting and engaging conversation with his ardent fans by singing the song 'Sab Sahi Ho Jayega' (created by Badshah) – a song about chances… good chances… about hope, compassion and love.

Shah Rukh Khan's adorable act with his son AbRam was loved and appreciated by one and all, bringing a magical end to the marvelous evening. After announcing a range of initiatives, Shah Rukh Khan provided 25,000 PPE kits to the frontline medical staff in Maharashtra fighting to contain the novel coronavirus pandemic in the state.

 

 

 

View this post on Instagram

‪Extremely grateful to #IforIndia, @badboyshah and @cacklerraj for music, lyrics & for working overnight. thank u Sunil for the edit. All so that I could sing. ‬ ‪Ab bhai, lockdown mein mujhe gaate hue bhi jhelna padhega. AbRam is saying 'papa enough now!’‬ ‪Par sab sahi ho jaayega!‬

A post shared by Shah Rukh Khan (@iamsrk) onMay 3, 2020 at 2:08pm PDT

The actor's group of companies, Kolkata Knight Riders, Red Chillies Entertainment, Meer Foundation and Red Chillies VFX recently announced several initiatives to support the efforts of Prime Minister, Shri Narendra Modi ji and the Government in its COVID-19 fight.

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Archana Puran Singh has always believed in laughing out loud and living life to the fullest. We all have seen that in Comedy Circus and The Kapil Sharma Show, and the same amount of mirth and liveliness is to be found in her Instagram posts. But in the latest one, it's her hubby Parmeet Sethi who steals the show.

We all get to see Singh capturing Sethi and her mother and Sethi, who seems to be in a jovial mood, begins taking a dig at her and their 30-year old marriage. He calls her a 'defective maal' and also adds 'Iska koi refund nahin hai.' To make matters worse for her and funnier for us, her mother too joins Sethi to pull her leg.

Have a look at the first video right here where we can see all three of them:

 

 

 

View this post on Instagram

. Both saasu ma and jawai ji have some fun... at my expense! 😁 Mom has declared me to be the "video waala" ! 🤦‍♀ï¸ÂðŸ˜‚ #lockdown2020 #quarantinelife #madhislandlife

A post shared by Archana Puran Singh (@archanapuransingh) onMay 2, 2020 at 6:47am PDT

And in the second video, the actress gives us a glimpse of their Sunday conversations. She says- "Sunday. No workout. Fresh mint flavoured nimbu paani. Nature. Mom. Parmeet. Bhagyashri. Entertainment. Nok jhok. Happy." (sic)

Have a look right here:

 

 

 

View this post on Instagram

Sunday. No workout. Fresh mint flavoured nimbu paani. Nature. Mom. Parmeet. Bhagyashri. Entertainment. Nok jhonk. Happy. @iamparmeetsethi #madhislandlife #quarantinelife #lockdown2020 #bhagyashrirocks

A post shared by Archana Puran Singh (@archanapuransingh) onMay 3, 2020 at 7:38am PDT

Hope just like us, you also had a laugh!

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Parineeti Chopra has stepped forward to do more during the coronavirus crisis that is raging in our country. The sensitive actress has decided to go on a virtual coffee date with people to raise funds that will feed 4000 family members of 1000 daily wage earners of our country!

Millions of poor labourers are struggling to access food and rations during the COVID lockdown, and are unable to keep themselves and their families safe. Parineeti has come on board to help raise funds for GiveIndia’s Mission: Ration Kit that aims at delivering food to those most affected by the crisis.

Pari’s campaign will see ration kits containing dal, rice, aata, salt, masala, tea, sugar, oil etc, to be able to sustain a family of 4 people. These kits will be distributed to families in Maharashtra, Rajasthan, Bihar and Tamil Nadu. The A.T.E. Chandra Foundation has also joined hands in this cause and will be adding 25% of the total donation value collected as a matching amount, thereby multiplying the impact!

Parineeti, who is doing this in association with Arjun Kapoor’s sister Anshula’s breakthrough charity initiative Fankind, says, “There are millions of unemployed daily wage earners who are struggling to make two ends meet today due to the coronavirus crisis in our country. During the COVID19 national lockdown, they are unable to earn and that is putting them at high risk! Fankind, GiveIndia and I have come together to try and help them and their families by providing them ration kits.”

One just needs to log on to fankind.org/Parineeti and donate to be eligible for this virtual date which will aid GiveIndia to reach out to the ones who need our immediate help. The contest will be open for donation for a week, starting 6th May.

Pari adds, “No one should go to sleep hungry, so let’s do our bit to make a difference and take care of our fellow brothers and sisters of India. This fund raiser is uniquely crafted for me to meet you virtually and have a cup of coffee! This is how I will be saying thank you to 5 lucky winners through a video chat. I am looking forward to chatting with you and getting to know more about you over a piping cup of coffee. Let's join hands and donate for those who are in need.”

The Maharashtra government has taken serious note of complaints, alleging illegal collection of relief funds in the name of Covid-19 pandemic by certain organisations, according to officials here on Wednesday.

Following a specific complaint to Chief Minister Uddhav Thackeray, Chief Secretary Ajoy Mehta asked the Home Department to take necessary action, said lawyer Vinod Tiwari, the complainant.

In his representation, the lawyer presented several social media posts and calls seeking funds for providing coronavirus relief.

"Most of these are solicited by registered or unregistered organisations, certain political parties, some media, individuals or entities without any credential checks by the authorities, like the Collector. This is in violation of the Disaster Management Act, 2005, Section 53/54 and also the Income-Tax Act rules," Tiwari told IANS.

He said such collections were nothing but 'unjust enrichment' by some elements out to exploit the Covid-19 pandemic, as there were no accounts available of how much was collected or spent, and for what purposes.

"Besides, this is directly hampering the official fund-raising drive by the Chief Minister Relief Fund-Covid-19 or the PM-CARES Funds, which should be the only such means as accountable and permissible," Tiwari said.

He said similar shady fund collection drives were on all over the country, which must be immediately stopped and be acted against in the public interest.

Seeking the government intervention, he demanded seizure of all the illicit amounts collected by such entities, sealing their bank accounts and transferring the funds to the official PM-CARES Fund or the CMRF-Covid-19, besides initiation of criminal action against all them.

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This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

A chance to act with Leo and De Niro

Leonardo DiCaprio and Robert De Niro are giving fans the chance to appear in their upcoming film, Martin Scorsese’s adaptation of Killers of the Flower Moon. DiCaprio and De Niro are using the upcoming production to raise funds for the All-In Challenge, an online initiative that gives stars from all corners of the entertainment industry a chance to offer donation initiatives to benefit America’s Food Fund, as per reports. They explained that those who make a donation will have a chance to win a walk-on role in the production.

Ellie helps those in lockdown

Singer Ellie Goulding has helped source 400 mobile phones, which will be given to homeless people to help them through the lockdown. The distribution of the phones began on April 15. The phones will go towards people that the organisation, Crisis, supports, as well as those who are staying in hotels across London.

Tom Hardy to read bed-time stories

Tom Hardy will read night-time tales on the long-running series Bedtime Stories. The episodes of the BBC Children’s channel CBeebies will run from April 27 through May 1. The episodes were shot in Hardy’s garden, following social distancing guidelines. He will be joined by his French bulldog named Blue for some of the bedtime stories. The development, the channel alludes, is a step further in providing engaging content relevant to the situation. 

Ben, Matt play poker

Ben Affleck, Matt Damon and other stars raised $1.75mn through poker, for an online celebrity poker tournament, All In For America’s Charity. They raised $1.75 million for Feeding America, a non-profit organisation that distributes food to those in need amid  the outbreak, as per reports. Celebrities such as Tom Brady, Adam Sandler and Bryan Cranston bought in for $10,000 each at the food bank fundraiser.

Off screen superhero Krasinski to play one on screen?

Actor John Krasinski, who has been lifting spirits amid the pandemic with his series, Some Good News, has reportedly met with Marvel Studios for an unspecified project. Although details about the project are awaited, it is reported that Marvel has been holding “virtual meetings” with actors, directors and writers lately, and Krasinski was one of them. It also indicated that Krasinski might be in talks for a role in Young Avengers. Another possibility that the site mentioned is a Fantastic Four reboot. Neither Marvel nor Krasinski has confirmed the development.

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During the COVID-19 lockdown, individuals are losing patience -- moving freely and not following the necessary social distancing. This lack of civic sense and maturity on their part is weakening our fight against the deadly contagion pathogen.

The capital markets, as a result, also has witnessed intense volatility and bears are running lose. Certain sections of investors, however, have shown tremendous maturity during these challenging times.

At a time when Foreign Portfolio Investors (FIIs) have net sold or dumped Indian equities (owing to markets worldwide falling sharply and margin calls being hit), domestic fund managers are looking for value-buying opportunities in the carnage of the markets.

It is also heartening to see retail and High Net-worth Individuals (HNIs) buying into various equity-oriented mutual funds in a lump sum as well as the SIP (Systematic Investment Plan) mode. Monthly SIP inflows have touched a record high in March 2020 and the SIP folios, too, surged to 3.12 crore.

However, in debt-oriented schemes, investors seem to be pressing the panic button. The mutual fund industry recorded a net outflow of Rs 1.95 trillion in March 2020. Barring Overnight Funds and Gilt Funds, all other sub-categories of debt mutual funds have reported an outflow in March 2020.

Advance tax payment obligations, deterioration in asset quality, potential risk of defaults in the COVID-19 lockdown, and heightened volatility in the Indian debt market are some of the key reasons for outflows from debt-oriented mutual schemes.

[Read: Why Investors Pulled Out Money from Debt Mutual Fund Schemes in March]

The massive outflows were also seen from the Liquid Funds and Arbitrage Funds.

Table 1: Action in March 2020

Unprecedented redemptions in the Arbitrage Funds and Liquid Funds, as well as the net inflows recorded by the overnight funds, suggest that investors preferred safety over returns. As you know, liquidity is a key concern as the world continues to fight the COVID-19 pandemic.

Some arbitrage schemes such as Tata Arbitrage Fund and ICICI Prudential Equity-Arbitrage Fund had stopped taking in fresh subscriptions in the third week of March 2020 for the lack of arbitrage opportunities as markets faced broad-based selling.

But now markets are finding some sort of stability and bouncing back -- rallied over 20% from March lows - although the bears continue to run loose.

So, is it a time to consider arbitrage funds again?

Yes, I think so.

Arbitrage Funds aims to exploit the price differential in two different segments (spot and futures or cash and derivatives) of the equity market. They buy stocks in the spot market and sell in the future market simultaneously thereby making gains with the price differential (called the spread).

The differential usually is in sync with the prevailing interest rates in the economy; but depending on the market volatility, it could sometimes be higher as well. That being said, these are short-term opportunities that spring up due to lack of information to a set of market participants in one of the markets.

The capital market regulator's mutual fund categorisation and rationalisation mandates that an Arbitrage Fund must strictly follow the arbitrage strategy and invest at least 65% of its total assets in equity & equity related instruments.

Since the transactions are in either direction, the positions are completely hedged. And the remaining 35% of the total asset is deployed in debt and money market instruments.

In March 2020, when the stock futures started quoting at a discount to the spot prices in the cash market, it was a concern. But now that we have seen some sharp up-moves in the Indian equity markets as the government has done relatively well in containing the spread of the deadly virus (compared to other nations) and thanks to the prompt fiscal measures also have been taken -- both by the Ministry of Finance (the Rs 1.75 trillion package) and the Reserve Bank of India (by reducing policy rates sharply, keeping monetary policy stance 'accommodative as long as it is necessary', and ensuring enough liquidity in the system) -- in my view, it would be perceived positively by the markets in times to come and enough arbitrage opportunities would be available. It is possible that Arbitrage Funds may even perform a tad better vis-a-vis Liquid Funds.

Table 2: Report Card of Arbitrage Fund, Liquid Funds and Short Duration Funds

Over the last one year, the returns generated by Arbitrage Funds have been quite satisfactory. In fact, these funds have outperformed those clocked by Liquid Funds. The 3-month returns clocked by Arbitrage Funds have been almost at par with Liquid Funds.

Do note that an Arbitrage Fund carries low risk and the returns depend on the market conditions and fund manager's ability to reap rewards from arbitrage opportunities.

Short-Term Capital Gains (i.e. realised profits within a year) on arbitrage funds are taxed at 15%, while the Long-Term Capital Gains (i.e. gains made after staying invested for more than a year) are taxed at 10% for gains above Rs 1 lakh in a financial year.

To park money for the short-term for an investment time horizon up to 1-year, you may consider investing in an Arbitrage Fund.

And if you have an extreme short-term time horizon (of 3 to 6 months), consider a Liquid Fund with high-quality debt papers, which does not have high exposure to Commercial Papers (issued by private entities).

Alternatively, if you wish to park in a much safer category, you would be better off investing in an Overnight Funds.

Happy Investing!

PS: If you wish to select worthy mutual fund schemes, I recommend you to subscribe to PersonalFN's unbiased premium research service, FundSelect.

Additionally, as a bonus, you get access to PersonalFN's popular debt mutual fund service, DebtSelect.

Each fund recommended under FundSelect goes through our stringent process, where they are tested on both quantitative as well as qualitative parameters.

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If you are serious about investing in a rewarding mutual fund scheme, Subscribe now!

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Author: Rounaq Neroy

This article first appeared on PersonalFN here.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

COVID-19 has started showing its impact on the mutual fund industry. Few days ago I mentioned in my article, Debt mutual funds witnessed massive outflows of Rs 1.95 trillion in the month of March.

Though we could attribute most of that outflow to corporates redeeming funds to meet their quarter end obligations, high volatility and uncertainty as consequences of the pandemic could have also played a major hand in the redemption pressure for debt schemes.

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FII have been redeeming investments heavily in equity and debt segment ever since WHO declared COVID-19 a pandemic. In March, FIIs pulled out Rs 60,375 crore from the debt market.

High redemption and lack of buying interest has made debt mutual fund schemes vulnerable, especially those with higher exposure to low rated instruments.

This instability has claimed its first casualty in debt mutual funds...

Franklin Templeton Mutual Fund (FTMF) has decided to wind down six of its debt schemes with effect from April 23, 2020 due to COVID-19 related market dislocation. This is something that is unheard of in the mutual fund industry and has perplexed many investors and advisors.

The schemes that are wound up are:

• Franklin India Low Duration Fund
• Franklin India Dynamic Accrual Fund
• Franklin India Credit Risk Fund
• Franklin India Short Term Income Plan
• Franklin India Ultra Short Bond Fund
• Franklin India Income Opportunities Fund

Together these schemes have an AUM of 30,854 crore as on March 31, 2020. Notably, these are the very schemes which in the past had to create segregated portfolio for its exposure to downgraded papers of Vodafone Idea and Yes Bank.

What led to the move?

According to a statement to investors from FTMF, "Despite several measures taken by the Reserve Bank of India (RBI), the liquidity in certain segments of the corporate bond markets has fallen-off dramatically and has remained low for an extended period. In this scenario, mutual funds are facing unprecedented liquidity challenges due to a variety of factors-rising redemption pressures due to heightened risk aversion, mark to market losses following a spike in yields and lower trading volumes in the bond markets. These factors have together caused a significant and worsening liquidity crunch for open-end mutual fund schemes investing in corporate credits across the credit rating spectrum."

The schemes had to resort to continuous borrowing to fund redemptions during this time, and were unable to repay the borrowings through sale of portfolio securities due to the prevailing market environment. The Investment manager did not believe it was prudent to continue funding redemptions through potentially increasing levels of borrowings.

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FTMF follows a high-risk high-return strategy for the above mentioned funds - Meaning a major part of its portfolio is exposed to lower rated securities (rating below AAA). The market disruption due to the virus outbreak has impacted these securities the most.

Under conditions of high redemption pressure, mutual funds sell their liquid assets to meet the demand, leaving the portfolio highly exposed to illiquid assets.

Thus, investors who choose to stay invested are at a disadvantage here.

Anticipating continued liquidity stress to the funds, the fund house thought winding up the scheme is the only viable option for the unitholders to minimize erosion of value.

Table: Details of schemes being wound up

What does it mean for investors of these schemes?

Investors of these schemes will not be able to purchase/redeem investment, switch to other schemes or do systematic transactions. In short their funds will be locked. The fund will not charge any management fees for the funds that are being wound up.

The fund house will rely on coupon payments, maturity value of underlying securities, and selling of securities at realisable value. While the fund house expects to realise most of the proceeds as per maturities, there may be some low rated securities that may even default on the due date. The fund house may create segregated portfolios for such securities and pay back as and when the money is realised.

It will be prudent to check the average maturity of portfolios of each fund and expect major repayment within that period.

What should investors in debt funds do?

Debt mutual fund Investors are not as confident, due to incidents of exposure to toxic papers in the past. This event could make them even more wary about their investment in debt schemes. As a consequence, there may be some panic selling in other debt schemes by investors worried about their funds getting locked.

However, instead of taking any hasty decisions, it would be a great idea to check your funds for the quality of assets it holds.

Choose a fund house that follows prudent investment process and stringent risk-management system. In these uncertain times, it would be wise sticking to liquid funds and overnight funds for the fixed-income part of your portfolio. Alternatively, if you prefer safety of capital, invest in Bank fixed deposits.

Our friends at Quantum Mutual Fund have highlighted the secret behind their debt management strategy which has helped them provide safety and liquidity to investors when it comes to investing in quantum funds. Don't Worry, Quantum Liquid Fund always aims for Safety and Liquidity

The way ahead...

While the fund house has done this to protect investors' interest, it has made the funds illiquid from the investors' point of view. Many investors may lose faith in debt funds for their short-term goals.

Going further, investors may have to consider liquidity risk due to AMC action, while investing in any high credit risk oriented debt funds.

It is time for the regulator to step up and clarify the illiquidity part for other debt schemes out there to investors. Moreover, it needs to provide a framework of strict guidelines to restrict fund managers from putting investors' hard-earned money at risk by exposing them to low rated securities for higher yield.

Meanwhile, AMFI has assured investors that a majority of the fixed income fund assets is invested in superior credit quality securities, and the schemes have appropriate liquidity to ensure normal operations. It further stated that the industry remains fully committed to the investors' interests and there is no need for them to panic and redeem investments.

Author: Divya Grover

This article first appeared on PersonalFN here.

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PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Unnerving movements for debt mutual funds investors!

Just last week my colleague, Divya explained the fiasco at Franklin Templeton Mutual Fund, which took a decision to abruptly wind down six debt mutual fund schemes, namely:

• Franklin India Low Duration Fund
• Franklin India Dynamic Accrual Fund
• Franklin India Credit Risk Fund
• Franklin India Short Term Income Plan
• Franklin India Ultra Short Bond Fund
• Franklin India Income Opportunities Fund

In all, the above debt mutual fund schemes had an AUM of Rs 30,854 crore as of March 31, 2020.

The fund house cited, "severe market dislocation and illiquidity in the fixed income space" caused by the COVID-19 pandemic, as the reason behind the decision.

Investors in these schemes are now left in the lurch: they cannot sell (nor buy) these funds and will have to rely on the fund house to get back their hard-earned money. Investors will have to hold their investments in these schemes until liquidity is available to the mutual fund house by either selling securities in the fund's portfolio or receiving maturity proceeds.

Currently, a fact is, not just Franklin Templeton Mutual Fund, but debt mutual fund schemes of many other fund houses are have a remarkable exposure to stressed assets.

According to portfolios disclosed on March 31, 2020, mutual funds collectively held Rs 1.38 trillion of exposure to debt securities issued by Non-Banking Financial Companies (NBFCs). Approximately Rs 51,000 crore of the exposure in debt securities has a maturity profile of less than 3 months; and now, mutual funds fear that there will be defaults.

NBFCs and other corporate borrowers claim that they do not have enough liquidity to fulfil their obligations and have requested for additional time. Given that, rating downgrades from rating agencies look likely.

However, some companies are playing smart: they are approaching the Courts to prevent a rating downgrade, plus seeking a stay on sale of pledged shares. Of course, they are well within their right to approach the judicial authority or Courts and contest.

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But the capital market regulator, seems to be in no mood in offering them any leeway. On the contrary, the regulator is asking the mutual fund industry to act against the issuer of securities who are possibly carrying high credit risk; facing asset quality problems.

Delays in repayments would mean the creation of more side-pockets by mutual funds. And in my view, more the losses investors suffer, more frustrating it will be for mutual fund houses and their investors. Eventually retail and High Net-worth Individuals, particularly, will lose confidence and may not be keen to invest in debt funds.

If you are wondering what has gone wrong, here's everything you may like to know about liquidity, credit risk and the exposure of mutual funds to corporate debt in the present scenario.

If you remember, the capital market regulator had mandated large corporations to source at least 25% of their borrowings from the bond markets from the beginning of FY 2019. This move was expected to deepen Indian bond markets and reduces the stress on banks. Just a year later, the same move is proving fatal for companies that went to the bond markets to raise money.

Now that the COVID-19 lockdown has forced many business units to shut off temporarily or operate much below their optimal operational capacity with a skeletal staff, companies, including the large organisations that relied heavily on debt markets, are finding it difficult to honour maturity claims on Commercial Papers (CPs), Non-Convertible Debentures (NCDs), and Bonds.

They were hoping for an 'at-par treatment' with Banks when the Reserve Bank of India (RBI) offered a moratorium period to borrowers. But the RBI circular came to them as a shocker. The devil was in the details.

On March 27, 2020, the RBI issued a notification allowing a three-month moratorium on all outstanding term loans and working capital facilities on account of disruptions caused by the outbreak of coronavirus. This circular did not cover around 10 thousand NBFCs, who mainly depend on CPs, NCDs, and Bonds for their funding requirements.

As far as NBFCs are concerned, the RBI has already provided them with a liquidity facility through the banking channel. The RBI directed banks to utilise funds infused under Targeted Long Term Repo Operations (TLTRO) facility to invest in 'investment-grade' CPs, NCDs, and Bonds issued by NBFCs. Also, RBI mandated banks to allocate 50% of Rs 50,000 crore of liquidity introduced by way of TLTRO 2.0 to small and mid-size NBFCs and small finance banks.

But NBFCs seemed not too happy with just liquidity and many of them are now approaching courts to prevent rating downgrades. This is not a best practice for the industry, although fund houses may be well within their rights to contest.

Recently, Indiabulls Housing Finance was successful in receiving the interim order from Delhi High Court, throttling any coercive action against the housing finance company for its inability to repay its bondholders. The Delhi High Court will hear the case further on May 19, 2020.

This has added to the worries of mutual fund houses that now fear other NBFCs will follow the same path.

The capital market regulator, only recently (a few days ago) following the three moratorium by RBI (due to disruptions caused by COVID-19 pandemic) has relaxed the valuation norms for debt and money market instrument held by mutual funds vide a circular dated April 23, 2020, wherein it states as under:

• Based on assessment, if the valuation agencies appointed by AMFI are of the view that the delay in payment of interest/principal or extension of the maturity of a security by the issuer has arisen solely due to COVID-19 pandemic lockdown and/or in light of the moratorium permitted by Reserve Bank of India (RBI) (vide notification no. RBI/2019-20/186, dated March 27, 2020) creating temporary operational challenges in servicing debt, then valuation agencies may not consider the same as a default for the purpose of valuation of money market or debt securities held by Mutual Funds.
  
  However, in the scenario, as stated above, if there is any difference in the valuation of securities provided by two valuation agencies, the conservative valuation shall be accepted.

But then what is the point of coming up with these valuation norms as an afterthought, and not in close synchronisation when the RBI came with its notification a month ago?

The damage now is already done and companies are anyways approaching the Courts to prevent a rating downgrade.

Let's say shares of a company are pledged and to recover the proceeds -- if they cannot be sold due to a court order -- then such lending would be as good as unsecured lending.

Also, why should that not be construed as an instance of deviation from the stated fundamental attributes of a debt mutual fund scheme? After all, mutual fund investors invest in debt fund schemes taking into account a certain level of risk. Change in the risk profile of a scheme is a change in the fundamental attribute/s.

According to India Ratings, NBFCs having the asset base of Rs 500 crore to 5,000 crore, largely fall between "A" and "BBB" rating categories.

The mid-path could be a decision on payment or deferring the payment in consultation with all stakeholders, including debenture trustees. The industry will require a blanket resolution because a case-to-case resolution approach is cumbersome and may create more chaos.

Unless the RBI takes a clear stance on NBFCs and other financial institutions, mutual fund houses are likely to feel the heat of redemptions. Suppose, there's no further statement issued by the banking sector regulator; mutual funds will have to be prepared to handle large-scale defaults, which might look inevitable. After all, a majority of NBFCs' customers are retail borrowers and they enjoy a moratorium on the EMI payment for 3-months. This has been the trickiest part for NBFCs.

While COVID-19 outbreak has been the genuine reason for the potential defaults this time, asset-liability mismatches of NBFCs are well-known. Many NBFCs have gone overboard with cheap credit available during stable market conditions. Their credit underwriting has been questioned widely. The industry has also witnessed belly-up instances such as IL&FS and DHFL. Many mutual fund houses have burned their fingers badly in such defaults.

At the time of writing this piece, to ease the liquidity pressure on mutual funds, the RBI today decided to provide a special liquidity facility of Rs 50,000 crore for mutual funds. Under this facility, the RBI will conduct repo operations of 90 days tenor at the fixed repo rate. This will be on-tap and open-ended, and banks can submit their bids to avail funding on any day from Monday to Friday (excluding holidays). The scheme is available from today i.e., April 27, 2020, till May 11, 2020, or up to utilization of the allocated amount, whichever is earlier. The Reserve Bank will review the timeline and amount, depending upon market conditions.

The RBI has stated further that the liquidity support availed under the Special Liquidity Facility for Mutual Funds shall be used by banks exclusively for meeting the liquidity requirements of mutual funds by, 1) extending loans; and (2) undertaking outright purchase of and/or repos against the collateral of investment-grade corporate bonds, CPs, debentures and certificates of Deposit (CDs) held by mutual funds.

Having taken this measure, keep in mind that it does not make investing in debt mutual funds risk-free. Considering the prevailing investment environment, you should stay away from mutual fund schemes whose portfolio characteristic appears compromised. Also, avoid credit risk funds and corporate bond funds as they are likely to be more vulnerable amidst the financial crisis followed by COVID-19 pandemic.

As a thumb rule: Choose mutual fund schemes from fund houses that follow prudent judicious investment processes and stringent risk-management systems.

In these uncertain times, it would be wise sticking to liquid funds and overnight funds while considering debt funds.

Our friends at Quantum Mutual Fund have highlighted the secret behind their debt management strategy which has helped them provide safety and liquidity to investors when it comes to investing in quantum funds. Don't Worry, Quantum Liquid Fund always aims for Safety and Liquidity.

As with all financial matters, better be safe than sorry!

PS: If you wish to select worthy mutual fund schemes, I recommend you to subscribe to PersonalFN's unbiased premium research service, FundSelect.

Additionally, as a bonus, you get access to PersonalFN's popular debt mutual fund service, DebtSelect.

Each fund recommended under FundSelect goes through our stringent process, where they are tested on both quantitative as well as qualitative parameters.

Every month, PersonalFN's FundSelect service will provide you with insightful and practical guidance on equity mutual funds and debt schemes - the ones to Buy, Hold, or Sell.

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Author: Rounaq Neroy

This article first appeared on PersonalFN here.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Last month, SEBI had asked credit rating agencies not to consider any delay in payment of interest or principal loan amount arisen solely due to the nationwide lockdown conditions as a default.

The stress in the Indian mutual fund industry due to the pandemic impact deepened after Franklin Templeton MF decided to wind down six of its debt schemes. The lack of liquidity and redemption pressure compelled FTMF to take the extreme step.

In this economic environment, Mutual Fund houses are concerned about companies that are likely to delay and default in payments. Many companies have sought deferment/rescheduling of payment due to COVID-19 related disruptions. In order to minimize the resultant damage, market regulator SEBI recently provided temporary relaxation in valuation norms for instruments mutual funds hold.

SEBI has asked valuation agencies to avoid treating delays in payment of interest/principal or extension of maturity of a security as default for the purpose of valuation of money market or debt securities held by Mutual Funds, if it has been caused solely due to COVID-19 pandemic lockdown and/or in light of the moratorium permitted by RBI.

[Read: Will Mutual Fund Houses Act Against Companies Approaching Courts To Prevent Rating Downgrade Amidst COVID-19?]

"In view of the nationwide lockdown and the three-month moratorium/ deferment on payment permitted by RBI, a differentiation in treatment of default, on a case to case basis, needs to be made as to whether such default occurred solely due to the lockdown or loan moratorium", SEBI circular said.

SEBI has stated that in the above mentioned scenario, if there is any difference in the valuation of securities provided by two valuation agencies, the conservative valuation shall be accepted. This revised norm will be in effect until the RBI's period of moratorium.

However, AMCs shall continue to be responsible for true and fairness of valuation of securities.

Mutual fund houses have to mark the value of their assets based on valuations provided by valuation agencies appointed by AMFI.

At present, a debt or money market security is classified as 'Default' if the interest and/or principal amount has not been received on the day such amount was due; or when such security has been downgraded to 'Default' grade by a credit rating agency. Default denoted that the security is below investment grade.

This leads to mark down of the respective security and thereby impacts NAV of the scheme.

SEBI's move provides some relief in this regard. It will ensure that all fund houses follow a uniform approach while dealing with defaults/delay due to COVID-19.

Will it make investment in debt fund safe?

SEBI has not yet provided any moratorium on commercial paper and corporate bond repayment. According to a report published in Livemint, Rs 1.5 trillion worth of commercial paper and corporate bonds will be maturing in the first quarter.

As mentioned earlier, AMCs shall continue to be responsible for true and fairness of valuation of securities. But in the absence of rating downgrade from valuation agencies, fund houses cannot side-pocket their exposure to a defaulting company. Therefore, we may still see some write-offs if the AMC finds recovery to be difficult even after the relaxation period.

COVID-19 has impacted businesses across sectors. Some sectors such as NBFCs were under stress even before the pandemic. The default risk has thus amplified.

The relaxation of valuation would delay the issue, but downgrades would arise subsequently. Spike in number of side pockets (by fund houses) may thus become imminent.

My colleague, Rounaq, rightly mentioned yesterday, losses the investors suffer will be directly proportionate to the stress, pressure mutual fund houses and their investors will face. Eventually retail and High Net-worth Individuals, particularly, will lose confidence and may not be keen to invest in debt funds.

What should investors do?

In these uncertain times, it would be wise sticking to liquid funds and overnight funds for the fixed-income part of your portfolio and avoid funds that take higher credit risk. Alternatively, if you prefer safety of capital, invest in Bank fixed deposits.

Choose a fund house that follows prudent investment process and stringent risk-management system.

Our friends at Quantum Mutual Fund have highlighted the secret behind their debt management strategy, which has helped them provide safety and liquidity to investors when it comes to investing in quantum funds. Don't Worry, Quantum Liquid Fund always aims for Safety and Liquidity.

SEBI has time and again taken steps to tighten norms for debt funds. As an investor, if you take portfolio risks, align it with your own risk appetite and financial objective.

PS: If you wish to select worthy mutual fund schemes, I recommend you to subscribe to PersonalFN's unbiased premium research service, FundSelect.

Additionally, as a bonus, you get access to PersonalFN's popular debt mutual fund service, DebtSelect.

If you are serious about investing in a rewarding mutual fund scheme, Subscribe now!

Author: Divya Grover

This article first appeared on PersonalFN here.

Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Coronavirus or Covid-19 is showing no signs of receding. On the contrary, the number of cases is increasing by the day and the situation is rather depressing, as almost every region of the world and country is infected.

Sadly, there is no antidote or a vaccine conclusively developed to fight this deadly pathogen yet. And according to the World Health Organisation (WHO), Coronavirus will be with us for a long time. Most cases are still in the early phase of the epidemic and some countries which were affected early in the pandemic, are now seeing a resurgence in the number of cases, said the WHO Chief.

COVID-19 is truly playing havoc and may be followed with a financial crisis owing to the lockdowns imposed to contain the spread. The risk of global recession undeniably looms large. "This crisis is like no other", as what the International Monetary Fund's (IMF), Chief Economist, Ms Gita Gopinath wrote in the foreword to the World Economic Outlook, April 2020.

Graph 1: The virus has spread even to Indian equities

The graph above depicts the S&P BSE Sensex falling off the cliff and investors' wealth being eroded. Since the all-time high of the S&P BSE Sensex (42,273.87 points made on January 20, 2020), we have fallen more than -25% and overall sentiments seem downbeat and volatility has heightened.

On a year-to-date basis, Indian equity is down nearly -23.2% (as of April 27, 2020), while gold -- with uncertainty looming around the world -- has exhibited its sheen and demonstrated its trait of safe haven and an effective portfolio diversifier, clocking nearly +5.0% absolute return as of April 27, 2020.

Graph 2: YTD Performance of key asset classes

The graph above validates the importance of tactical asset allocation. The key lesson here is: all asset classes will not necessarily move in the same direction (up or down) always - over the long-term; some may even move in the opposite direction as what we have seen in the recent past (in the case of equities and gold).

As we (the world) continue to fighting COVID-19 and the aftereffects of it are conceivable, a further correction cannot be ruled out and the bottom is unknown. COVID-19 is likely to impact corporate earnings amidst a time when India is already facing slowdown blues. As people are quarantined, demand would remain muted and inflation risk will begin to surface, particularly in food prices.

So, although the current levels offer a decent value-buying opportunity, skewing your portfolio completely to equity as an asset class could endanger wealth creation. In such times you, as an investor, need to follow tactical asset allocation while you aim to generate wealth.

Tactical Asset Allocation with Quantum Multi Asset Fund of Funds

To invest sensibly in the current times, you need a Multi-Asset Fund that invests in mainly three asset classes: equity, debt and gold; and is truly balanced.

Among the plethora of Multi-Asset Funds, the Quantum Multi Asset Fund of Funds (QMAFOF) incepted on July 11, 2012, is truly balanced and holds well-diversified portfolio (across the three key asset classes: equity, debt and gold) at all the times -- unlikely many of its peers who swayed by the excess exuberance in equities, lost sense, and eroded investors wealth.

Table 1: Asset Allocation of Quantum Multi Asset Fund of Funds

The Scheme predominantly invests in the units of Equity, Debt / Money Markets and Gold schemes of Quantum Mutual Fund. Currently, the following schemes are used to gain exposure to a particular asset class:

For equity - Quantum Long Term Equity Value Fund, Quantum Nifty ETF

For debt & money market instruments - Quantum Liquid Fund, Quantum Dynamic Bond Fund

For Gold - Quantum Gold Fund (ETF)

The Units of any other Equity and Debt / Money Markets scheme launched by Quantum Mutual Fund from time to time would be eligible to be part of the above asset allocation components.

Although QMAFOF aims to invest predominantly only in the schemes launched by Quantum Mutual Fund, QMAFOF may seek to invest in the units of similar schemes of other mutual fund houses in case of any investment and regulatory constraints that arise that prevent the Scheme from increasing investments in the schemes of Quantum Mutual Fund.

The investment objective of Quantum Multi Asset Fund of Funds is, "to generate modest capital appreciation while trying to reduce risk (by diversifying risks across asset classes) from a combined portfolio of equity, debt/money markets and gold schemes of Quantum Mutual Fund"

QMAFOF benchmarks it against the Crisil Composite Bond Fund Index (40%) + S&P BSE Sensex Total Return Index (40%) + Domestic price of Gold (20%).

Being a fund of fund, this benchmark is most suitable to compare QMAFOF's performance. The unique combination clubs together the relatively risky assets with other stable asset classes in the portfolio.

Backed by an astute investment strategy, taking the relative valuations between asset classes into consideration such as Price-to-Earnings relative to historical averages; the relationship between earning yield to bond yield relative to historical averages; and macroeconomic factors prevailing globally and within India, the two fund managers of QMAFOF, namely Mr Chirag Mehta (MMS - Finance, M.Com, and CAIA with over 13 years' experience in research and investments) and Mr Nilesh Shetty (B.Com, MMS -Finance, and CFA with collectively 16 years in equity markets), have generated respectable returns for investors.

Table 2: Report card of QMAFOF versus some of its peers

Even as the equity market is panting for breath attributable to COVID-19 and volatility has intensified, QMAFOF due to its sensible asset allocation to equity, debt and gold through its underlying portfolio, has fared relatively better than some of the peers.

ICICI Prudential Multi-Asset Fund, Axis Triple Advantage Fund, HDFC Multi-Asset Fund, and UTI Multi-Asset Fund, on the other hand, have all eroded investors wealth posting double-digit negative returns (see Table 2) in this downturn. Some of these schemes have fared well during upswings by keeping to the allocation to equities high, but on the downside, they have not managed the risk very sensibly. Investors, as a result, have experienced a roller-coaster ride in the journey of wealth creation.

A multi-asset fund, ideally, is expected to be truly balanced and sensibly allocate its assets whereby the downside risk of one asset class is compensated by the positive returns of the other asset classes.

Here are five good reasons to invest in Quantum Multi Asset Fund of Funds

1. You gain from a diversified portfolio across asset class which, in turn, reduces risk and optimizes returns.
2. You do not have to worry about portfolio rebalancing; the fund manager will astutely do it for you at regular intervals in the endeavour to achieve the set-out investment objective of the fund.
3. Portfolio tracking will be easy for you instead of tracking 10 different schemes
4. You will benefit from the lowest expense ratio in the category
5. And above all, Quantum Mutual Fund's strong research capabilities across various asset markets - equity, debt and gold, -- with robust investment processes & systems followed at the fund house.

Suitability of Quantum Multi Asset Fund of Funds

QMAFOF is a perfect fund for investors looking to tactically diversify the portfolio with a single fund across equity, debt and gold, plus leave the aspect of rebalancing to the discretion and expertise of the fund manager.

Furthermore, the fund is appropriate for investors seeking long term capital appreciation, who have a moderately high-risk appetite, and an investment time horizon of 3 to 5 years.

It is the best time to invest in the Quantum Multi Asset Fund of Funds. Valuation-wise, Indian equities look attractive and there appears to be a decent margin of safety (with a high return potential if the equity markets ascend).

Similarly, given the uncertainty surrounding the world, gold is expected to display its lustre. The economic uncertainty surrounded by the COVID-19, GDP growth rates being revised downwards, easy monetary policy action and stance followed by central bank across the world, geopolitical tensions, trade tension, and increased stock market volatility are likely to keep spotlights on gold.

Likewise, with credit risk getting amplified, it makes sense to have exposure to a pure Liquid Fund (that does not take exposure to Commercial Papers issued by private entities). Now that policy rates are already lowered by RBI to address growth concerns, it does not make much sense to take exposure to the longer end of the yield curve; it could prove less rewarding and risky (may encounter high volatility) in the foreseeable future. Deploying your hard-earned money is short-end of the maturity curve, would be far better.

By investing in Quantum Multi Asset Fund of Funds, you will be able to balance the risk better with a sensible investment strategy in place.

Just as an excess drug dosage cannot treat COVID-19, your investment portfolio, too, needs just a fair amount of diversification to clock optimal risk-adjusted returns in the journey of wealth creation.

Go ahead and consider investing in Quantum Multi Asset Fund of Funds.

Happy Investing!

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Author: Rounaq Neroy

This article first appeared on PersonalFN here.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Despite the rally we recently witnessed, the market mood continues to be sombre due to the pandemic crisis. FPI outflows from the Indian market persisted in the current month as well, while the recent fiasco at a popular fund house also dented investor sentiments.

It is difficult to predict how this situation will unravel eventually. Though the pandemic has impacted both large and smaller sized companies, small and mid sized companies could be the most affected.

However, quality names even in these segments could perform well over the long run. Therefore, you should stick to only quality names across different market capitalisation and invest via a well managed mutual fund that focuses on growth through diversification.

HDFC Mid-cap Opportunities Fund (HMOF) is one such mid cap fund that looks to invest in mid cap stocks with sound financial strength and reasonable growth prospects.

Graph 1: Growth of Rs 10,000 if invested in HDFC Mid-cap Opportunities Fund 5 years ago

One of the most popular funds in the midcap category, HMOF's asset size is the largest as compared to its peers. However, HMOF has shown no constrain when it comes to delivering superior performance. The fund has a track record of generating above-average returns across market conditions. Over the last 5 years, HMOF has generated returns at 4.5% CAGR as compared to 1.9% CAGR generated by its benchmark Nifty Midcap 100 - TRI, thus generating an alpha of around 2.5 percentage points CAGR. The fund has made well use of diversification to mitigate downside risk and generate decent lead over the benchmark index.

Table: HDFC Mid-cap Opportunities Fund's performance vis-a-vis category peers

*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.

Though HMOF has trailed some of the other popular peers in the mid cap category, it stands strong in the list of mid cap funds. The fund has constantly outperformed the benchmark by a noticeable margin across time periods.

Some of the other top performers in the category are Axis Midcap Fund, Invesco India Midcap Fund, and DSP Midcap Fund.

The fund has not only demonstrated its ability to generate superior returns for its long term investors, but has been reasonable when it comes to managing volatility and curtailing down-side risks. In terms of risk-adjusted returns, HMOF has outperformed its benchmark by a significant margin and also stays ahead of most of its peers.

Investment strategy of HDFC Mid-cap Opportunities Fund

Categorized as midcap fund, HMOF is mandated to invest minimum 65% of its assets in equity and equity related instruments of mid cap companies. Accordingly, HMOF invests in stocks of predominantly mid-sized companies, which have reasonable growth prospects at acceptable valuations. The fund also holds significant exposure in smallcaps along with moderate exposure in large caps as well as cash and debt.

It follows the bottom-up approach to identify high quality businesses for the long term. The stocks are bought primarily for the strengths of company fundamentals rather than the strength of the macro-economic indicators.

The fund manager resists from following market momentum and holds each of his high conviction stock for the long term.

Graph 2: Top portfolio holdings in HDFC Mid-cap Opportunities Fund

As on March 31, 2020,HMOF held 75 stocks in its portfolio, with no individual stock having exposure of more than 5%.Popular mid cap names like Aarti Industries, Balkrishna Industries, Trent, Ipca Laboratories, and Voltas, etc. appeared in its top portfolio holdings. The top 10 stocks constitute close to 32% of its assets.

The fund's portfolio is primarily skewed towards Banking and Finance sectors which together constitute around 17% of the portfolio. Auto ancillaries, Pharma, Chemicals, and Industrial Products are the other prominent sectors with allocation of around 9-11% each.

Suitability

HMOF's performance over longer time periods has been commendable, where it has generated decent long-term returns for its investors as compared to the benchmark, though it has lagged behind some of its peers. Its focus on timely realization of growth potential of stocks at fair valuation can help it generate strong returns while also minimize the downside risk. However, its aggressive mandate makes it prone to high volatility. This makes HMOF suitable for investors with high risk appetite and a long term investment horizon.

Editor's note: The last few years have not been among the best for equity mutual funds. While most funds have underperformed or are struggling to match the returns of the benchmark, there are few funds that have the potential to constantly generate alpha for its investors. And we have identified five such high alpha generating funds, in our latest report 'The Alpha Funds Report 2020'. Do not miss our latest research finding. Get your access to this exclusive report, right here!

Note: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Author: Divya Grover

This article first appeared on PersonalFN here.

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PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Last week the mutual fund industry was jolted by the news of Franklin Templeton MF winding down six of its debt schemes. The fund houses cited high redemption pressure and lack of liquidity due to COVID-19 as the reason behind the move.

There has been a rush of redemption in the debt market due to high volatility and uncertainty caused by the outbreak of pandemic. The stress is more evident in high-risk category of securities where liquidity has dried up. Notably, the schemes that were wound up belonged to the high credit risk category.

The recent FTMF fiasco led RBI to take note of the situation and step up to build confidence in the capital market.

On April 27, 2020, RBI announced the opening of a special liquidity facility (SLF-MF) worth Rs 50,000 crore to ease liquidity pressure on mutual funds.

Under SLF-MF, RBI will conduct repo operation of 90 days tenor at the fixed repo rate. Banks can avail funds under this facility between April 27, 2020 and May 11, 2020 or up to utilization of the allocated amount, whichever is earlier. RBI will review the timeline and amount, depending upon market conditions.

Banks have to utilise the funds availed under this exclusively for meeting the liquidity requirements of MFs by:

• Extending loans, and
• Undertaking outright purchase of and/or repos against the collateral of investment grade corporate bonds, commercial papers (CPs), debentures and certificates of Deposit (CDs) held by MFs.

The liquidity support under this would be eligible to be classified as held to maturity (HTM) even if it goes beyond the 25% limit of total investment in the HTM portfolio.

Will banks come to the aid?

For banks, availing funds at a lower rate (repo rate) and using it to purchase investment grade, which generally carry higher interest, and holding them till maturity seems like a good opportunity, but they may not be as enthusiastic to come to the aid of MFs.

You may recall that few days ago, RBI came out with a similar liquidity window worth Rs 50,000 for NBFCs. Of these, 50% of funds had to be dedicated towards investment in investment grade bonds, commercial paper, and non-convertible debentures small and mid-sized NBFCs and MFIs.

NBFCs who have been dealing with liquidity crunch for quite some time now is one of the worst affected sectors with rising risk of bad loans amid the COVID-19 outbreak.

As a result, the first tranche of the operation worth Rs 25,000 crore conducted few days ago received bids for just Rs 12,850 crore.

Similarly, the stress in debt mutual fund segment is not new - some categories of debt funds have been facing redemption pressure ever since the IL&FS debacle came to light. Banks may be reluctant to lend to mutual funds with higher exposure to lower quality papers, which have been lacking in liquidity.

If banks do lend to MFs it may be limited to those with good quality papers. This will not serve the intended purpose of the facility.

Many mutual funds investing in credit-risk grade securities may have offloaded good quality papers to meet the high redemption and may be now left with only lower quality papers. Risk aversion in banks has magnified due to rising fear of bad loan pile up. Hence, banks may not be keen to accept lower quality papers as collateral.

Besides, some mutual funds may already have high borrowing rate availed to fund redemptions and further borrowing may not be a viable option for them.

Thus, if redemption pressure continues, liquidity strain will continue in schemes carrying higher exposure to lower rated securities. Hence, RBI may have to come out with alternative steps to deal with issue that would infuse liquidity directly to mutual funds rather than relying on banks.

Word of caution for investors in debt funds

RBI and AMFI have assured investors that stress in capital market is confined to the high-risk debt MF segment at this stage; the larger industry remains liquid.

In the current market volatile and uncertain environment, it would be advisable to stay away from credit risk schemes. However, do not resort to panic selling. Doing that will have an exponentially negative effect on funds, primarily those having exposure to moderate and low rated assets.

Redemption pressure may force the fund managers to sell good quality papers in the portfolio in the secondary market and pile up exposure to low rated assets because it will be difficult to liquidate at fair value.

Keep in mind that debt funds are not risk-free. Investment in debt funds carry various risks relating to liquidity, credit quality, and interest rate. Therefore, before investing in debt funds understand the various risks involved and invest in schemes where the portfolio risk aligns with your own risk appetite and financial objective.

Moreover, choose a fund house that follows prudent investment process and stringent risk-management systems.

In these uncertain times, it would be wise to stick with liquid funds and overnight funds for the debt part of your portfolio as they are highly liquid and carry lower risk.

Our friends at Quantum Mutual Fund have highlighted the secret behind their debt management strategy, which has helped them provide safety and liquidity to investors when it comes to investing in quantum funds. Don't Worry, Quantum Liquid Fund always aims for Safety and Liquidity.

PS: If you wish to select worthy mutual fund schemes, I recommend you to subscribe to PersonalFN's unbiased premium research service, FundSelect.

Additionally, as a bonus, you get access to PersonalFN's popular debt mutual fund service, DebtSelect.

If you are serious about investing in a rewarding mutual fund scheme, Subscribe now!

Author: Divya Grover

This article first appeared on PersonalFN here.

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PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

The Indian equity markets are on a rollercoaster with the uncertainty surrounding the COVID-19 pandemic. It's been a nerve-racking experience for investors and wealth has been eroded.

As we continue to battle COVID-19 with lockdown 3.0, on a year-to-date basis the S&P BSE Sensex is down -23.9% as of May 5, 2020, (see Table 1 below).

Table 1: Wealth erosion across market cap segments

Balanced Hybrid Funds that are supposed to be balanced and protect downside risk have gone on to erode investors' wealth by seldom maintaining a 'fair balance' and displaying unreasonable love and exuberance for equities plus for taxation reason -- to be treated as an equity-oriented fund. (see Table 2 below).

Similarly, many multi-asset funds that hold the mandate to invest with allocation across three asset classes i.e. equity, debt and gold with minimum 10% in each have posted negative returns (see Table 2 below).

Table 2: Report card of Balanced Hybrid Funds and Multi-Asset Funds

ICICI Prudential Multi-Asset Fund, HDFC Multi-Asset Fund, and UTI Multi-Asset Fund, in particular, have not lived up to the expectation and the trust evinced by investors (going by their AUM size). Not just are their recent returns amidst the outbreak of COVID-19 crisis unappealing, but even the 3-year and 5-year compounded annulaised return is nothing to vie for. This is because they haven't been able to sensibly allocate to the three key asset classes: equity, debt and gold, and play the investment strategy astutely.

On the other hand, the Quantum Multi-Asset Fund of Funds (QMAFOF) has depicted true balance backed by its sensible investment strategy arrested the downside risk and relatively fared better vis-a-vis its peers over 3-year and 5-year time periods.

The Quantum Multi-Asset under normal circumstances by maintaining 25%-65% exposure to units of equity schemes (vide Quantum Long Term Equity Value Fund, Quantum Nifty ETF); 25%-65% exposure to units of debt and money market instruments (vide Quantum Liquid Fund, Quantum Dynamic Bond Fund); 10%-20% in units of gold schemes (vide Quantum Gold ETF); and up to 5% in money market instruments, Short-term Corporate Debt securities, Tri-Party Repo, Repo/ Reverse Repo in Government securities and Treasury Bills has been able to generate modest, yet appealing returns than the rest, and mitigated the risk by diversifying across asset classes: equity, debt and gold.

Historically it is proved that all classes never move in the same direction -- up or down -- at the same time. There could be times when certain asset classes perform better than the other and/or show an inverse relation to another (see Table 3).

Table 3: Here's how various asset classes fared per calendar year

If your multi-asset fund strategically allocates between equity, debt, and gold sensing the pulse of each asset class, maintains balance, and takes calculated risk sensible wealth creation is possible.

In the on-going COVID-19 crisis, equities will remain volatile, but given the sharp correction, there are and will be, enough long-term value-buying opportunities with a decent margin of safety.

Gold in such uncertain times would continue to gain all the attention. Easy monetary policy action and accommodative stance to address growth concerns, a record-high debt-to-GDP ratio, trade war tensions, geopolitical tensions, the potential risk to the inflation trajectory mainly due to food prices, increased stock market volatility, and the U.S. Presidential election in November 2020 are some of the factors expected to work in favour of gold. The precious yellow metal will demonstrate its trait of being a portfolio diversifier, a hedge (when other asset classes fail to post alluring returns), and command a store of value.

And speaking of debt & money market instruments, with exposure to highly rated papers and predominantly government securities, will act as a stabilizer.

A unique aspect of QMAFOF is that it has always taken relative valuations between asset classes into consideration, such as:

• Price-to-Earnings relative to historical averages;
• The relationship between earning yield to bond yield relative to historical averages; and
• Macroeconomic factors prevailing globally and within India

It is this wide-ranging and sensible approach that has helped QMAFOF to protect against the downside risk and reward its investors better than many of its peers. The fund managers, Mr Chirag Mehta (MMS - Finance, M.Com, and CAIA with over 13 years' experience in research and investments) and Mr Nilesh Shetty (B.Com, MMS -Finance, and CFA with collectively 16 years in equity markets), have strategically moved in and out of the aforesaid asset classes wisely recognising their upswings and downswings.

[Read: Why Tactically Invest Across Asset Classes amidst COVID-19 with Quantum Multi-Asset Fund Of Funds]

The choice is completely yours: to stay invested in a 'Balanced Hybrid Fund'/ Multi-Asset Fund that does not show true balance and keep harming your health and wealth; or make a sensible move and switch over to Quantum Multi Asset Fund of Funds that is truly balanced and has sensibly generated wealth for investors without the shrieking experience of a rollercoaster.

Wish to invest in Quantum Multi Asset Fund of Funds? Click here.

Happy Investing!

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Author: Rounaq Neroy

This article first appeared on PersonalFN here.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:
The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Novak Djokovic said that he, Roger Federer and Rafael Nadal are organising aid for players struggling with the paralysis of the game due to the Coronavirus pandemic. "I spoke to Roger and Rafa a few days ago," Djokovic, the World No. 1, said in an Instagram chat with friend and rival Stan Wawrinka on Saturday.

No support from federation
"We had a long conversation about the near future of tennis, what is going to happen, how we can contribute and how we can help especially lower-ranked players, who are obviously struggling the most. The majority of the players who are ranked between 200, 250 in the world, and the 700th or 1,000th do not have federation support, do not have sponsors. They are completely independent and left alone," he said. "Guys who are ranked between 200-250, especially to 700...are thinking of leaving tennis right now."

He said players, the ATP and the four Grand Slams "would all get together and will contribute to a player relief fund that ATP will distribute." "It looks, hopefully, that there will something between $3 million (2.75 million euros) and $4.5 million that is going to be distributed," he estimated. Djokovic said the cash could come from the prize money for the season-ending World Tour Finals or the final bonus pools for top players.

Lack of tournaments
"Maybe if we don't have any tournaments this season, we can take a certain percentage from our prize money from Australian Open in January," he said. "These guys are the grass roots of tennis. The future of tennis. We need to show them they still can rely on support of the top guys." According to reports in tennis media, Djokovic, as president of the ATP Players' Council, which also includes Federer and Nadal, proposed to members that players in the Top 100 for singles and the Top 20 in doubles contribute according to their rankings.

The proposed scale runs from $30,000 for a Top-5 player to $5,000 for those between 51 and 100. That would raise approximately $1 million and the ATP would make a similar contribution. On Friday, ATP chief Andrea Gaudenzi echoed the call for unity on the tour website. "Our guys are at home, obviously unable to play, unable to earn money and financially struggling, so we will try to help," he said.

"I've been quite touched by the top players who reached out, the big names expressing their desire of helping the lower-ranked players and putting those players first. We are also talking with the Grand Slams about it. They may want to join in the effort. I think it would be a great message for the sport." World tennis has been at a standstill since the beginning of March and will not resume until mid-July at the earliest following the postponement of Roland Garros and the cancellation of Wimbledon.

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American tennis player Sloane Stephens has started a fundraiser for students and teachers in Haiti in association with her fiance Jozy Altidore's JA Foundation. "Can you imagine climbing 200 flights of stairs every day simply to access clean water, and education, and healthcare? The children and families in Marre-a-Coiffe, Haiti do just that. I'm taking the Hike for Haiti Challenge to raise awareness and funds to help provide students and teachers in Haiti vital support.

Jozy Altidore

From April 17 to May 17, we'll be hiking 200 flights of stairs in solidarity," Sloanne, 27, says on her fundraising page. Meanwhile, Jozy remarks: "In these times of adversity and social distancing, it's so important to find ways to virtually stay connected to others in our community, and to stay healthy and active at home. The JA Foundation will be matching funds donated to my team page up to $2,500, so your contribution will have double the impact."

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Flamboyant India batsman KL Rahul is auctioning the bat he used during the World Cup last year and other memorabilia to raise funds for vulnerable children.

In a video message posted on Twitter on his birthday, Rahul said all proceeds from the auction will go to the Aware Foundation, that works to provide dispossessed, disadvantaged and vulnerable children in India the right to education. "I have decided to donate my cricket pads, my gloves, helmets and some of my jerseys to our collaboration partner Bharat Army. They are going to auction these things out and the funds will go towards the Aware Foundation," Rahul said. "It's a foundation that look towards helping children. It is very special and I couldn't pick a better day to do this."

The items up for auction, which started on Monday, includes Rahul's signed 2019 World Cup bat, Test, ODI and T20 jersey along with his batting gloves, helmet and pads. "Go on check out the auction and show some love for me and the children and let's stay strong together during this difficult time and all of us will come out of this stronger," Rahul said. The coronavirus outbreak has infected over 24 lakh people and caused more than one lakh deaths worldwide. In India, more than 17,000 people have been infected with 550 deaths reported.

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New Zealand batsman Henry Nicholls has donated his ICC 2019 World Cup shirt to UNICEF to help raise funds for the battle against COVID-19. The 28-year-old has offered his half-sleeve shirt signed by his teammates to facilitate meals for Kiwi families. The official Twitter handle of UNICEF New Zealand wrote, "NZ Cricketer @HenryNicholls27 has offered up one of his prized 2019 Cricket World Cup jerseys, signed by the whole team! One lucky donor who has supported our #FoodForKiwiFamilies appeal will receive it. You've got to be in it, to win it so donate now!"

Anyone who donates by Monday, irrespective of the amount, will enter a draw and one lucky person will get the shirt. The Blackcaps played their second consecutive final but failed to bring the trophy home as they lost to England on the basis of the boundary-countback rule. As a result, the Three Lions went on to lift their first-ever 50-over title.

The normal 50-over match action and super over had ended as a tie, and in the end, England was announced as the winners after scoring more boundaries in the match. As all the sporting activities including cricket have been suspended due to the global surge of the coronavirus pandemic, the left-handed batsman was last seen in action against Australia in an ODI on March 13.

He has played 33 Tests, 49 ODIs, and 5 shortest format games for Kiwis. The player has scored 3,095 runs across all formats including six centuries.

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As the battle against the COVID-19 pandemic intensifies especially in Maharashtra, India's worst-hit state, every penny contributed can make a huge difference.

The Mumbai Cricket Association (MCA) was among the first state associations to pledge (on March 26) a Rs 50 lakh contribution to the Chief Minister's Relief Fund.

However, it is understood that the money has not been transferred yet due to a lack of direction regarding which fund the amount has to be deposited in.

Treasurer Achrekar's email
In an email on April 9, MCA treasurer Jagdish Achrekar had sought direction from MCA president Dr Vijay Patil and the Apex Council members to decide on whether to donate instead towards the COVID-19 relief fund set up especially for the pandemic. This dedicated relief fund was initiated a few days after the MCA decided to donate to the Chief Minister's Relief Fund. "I refer to the virtual meeting dated March 26 in which the Apex Council members decided to contribute Rs 50 lakh to [the] Chief Minister relief fund. I gather that a special account for COVID-19 relief fund has been opened by the CM's office. May we transfer Rs 50 lakh to the account designated by CM office? I hereby seek your permission for the same," Achrekar wrote in his email, a copy of which is with mid-day.

When asked what difference it made if the amount was transferred to either of the relief fund accounts, an MCA source said: "It is important to have clear direction as it [donation] involves technical points like tax benefits."

Meanwhile, MCA's joint secretary Sanjay Naik said they are awaiting a response from the Chief Minister's office: "We have the approval of our committee. We are waiting for the CM's office to provide direction. I think it should happen in a few days."

On March 28, MCA had contributed R50 lakh to the Prime Minister's Relief Fund.

Selectors yet to be paid
Meanwhile, it is understood that the MCA has yet to make payments to their senior and junior selectors though the season ended in March. Only senior team selector Sridhar Mandale has received his payment due to a medical emergency in his family. The chairman of the senior selection committee [Milind Rege] is supposed to receive Rs 3.5 lakh while his other colleagues in the committee are to get Rs 3 lakh each.

Naik said the payments to selectors will be cleared shortly. "It will be done soon. The delay might be due to the lockdown," he said.

Rajput, Kuruvilla in fray for Mumbai coach job

FORMER India Test cricketers Lalchand Rajput and Abey Kuruvilla are being touted as the top contenders for the Mumbai coach's job. Rajput is currently with the Zimbabwe team while Kurvuvilla, the former junior national chief selector, is associated with IPL side Mumbai Indians and the DY Patil Sports Academy. It is learnt that former India pacer Aavishkar Salvi is also among the candidates.

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England star all-rounder Ben Stokes will run his first ever half marathon on Tuesday to raise funds for the National Health Services (NHS) Charities Together and national children's cricket charity Chance to Shine. The 28-year-old all-rounder who admitted that the longest he had ever run was 8 km, will be running a half marathon near his home. "A half marathon is always been something that I've thought about doing a but never really got around to overdoing it. Obviously we have been in lockdown so I thought what a great option to go out and if I'm going to do it I might as well try and raise some funds for a good cause," Stokes said in an Instagram video.

Stokes got inspired by the efforts of three men who ran full marathons in their back gardens over the weekend. "I will be hopefully inspiring people to make some donations towards the Cricket Garden Marathon, I'm just trying to add some more funds to what they've managed to do for the great cause," said Stokes. "I've done absolutely no training, the longest distance that I've ever run is 8 kilometres. So, I don't even know I'm going to be able to complete it but hopefully, I can," he added.

The left-handed Stokes on April 8 became the first English cricketer since 2005 to be named as Wisden's Leading Cricketer in the World. In 2005, Andrew Flintoff was named as Wisden's Leading Cricketer of the Year.

The year 2019 proved as an instrumental year for Stokes as he played a key role in England's first 50-over World Cup win and then he went on to play a memorable inning against Australia during the third Ashes at Headingley.

Also, the English all-rounder was named as ICC's cricketer of the year in January 2020.

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Mumbai Cricket Association (MCA) have completed the formalities in transferring Rs 50 lakh to the Maharashtra Chief Minister's COVID-19 Relief Fund, according to an MCA official on Thursday.

Though the decision was taken on March 26, the amount was not remitted as there was no direction whether to make the donation to the CM's Relief Fund or the specially-created fund for the COVID-19 pandemic.

Maharashtra is one of the worst-hit states in India with over 14,000 positive cases reported.

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Nations around the world reacted with alarm Wednesday after President Donald Trump announced a halt to the sizable funding the US sends to the World Health Organisation. Health experts warned the move could jeopardize global efforts to stop the Coronavirus pandemic.

Trump said he was instructing his administration to halt funding for WHO pending a review of its role "in severely mismanaging and covering up the spread of the coronavirus." The United States is WHO's largest single donor, contributing between $400 million and $500 million annually to the Geneva-based agency in recent years. He has repeatedly labelled COVID-19 the "Chinese virus" and criticised the UN health agency for being too lenient on China, where the novel virus first emerged late last year.

EU 'deeply regrets' move
An investigation by The Associated Press has found that s ix days of delays between when Chinese officials k new about the virus and when they warned the public allowed the pandemic to bloom into an enormous public health disaster. The European Union said Trump has "no reason" to freeze WHO funding at this critical stage and called for measures to promote unity instead of division. EU foreign policy chief Josep Borrell said the bloc "deeply" regrets the suspension of funds and added that the WHO is now "needed more than ever" to combat the pandemic.

Stand with WHO: Oz
Australian Prime Minister Scott Morrison said he sympathised with some of Trump's criticisms of WHO and China but that Australia would continue to fund the UN health agency. Germany's foreign minister, Heiko Maas, pushed back at Trump's announcement. Devi Sridhar, chair of global public health at the University of Edinburgh, called said. "This is the agency that's looking out for other countries and leading efforts to stop the pandemic. This is exactly the time when they need more funding, not less. Trump is angry, but his anger is being directed in a way that is going to ultimately hurt US interests."

A selfish decision: Russia
Russia's Deputy Foreign Minister Sergei Ryabkov told state news agency TASS, "I's a sign of the very selfish approach of the US authorities to what is happening in the world." Chinese foreign ministry spokesman Zhao Lijian said the country is "seriously concerned" about the US government's decision to suspend funding and hinted at stepping up its monetary contribution to WHO. The WHO did not respond to repeated requests from The Associated Press for comment, but its but Director-General Tedros Adhanom Ghebreyesus tweeted, "There is no time to waste".

Now, Trump says states to decide on reopening economy

A day after claiming "total authority" in decision-making, Donald Trump on Tuesday said he would leave it to individual governors to decide on the reopening of the economy in their respective states, which in some cases could be even before May 1. COVID-19 has so far infected over two million people worldwide. In the US, over 25,000 have lost their lives and more than 6 lakhs have tested positive. Over 95 per cent of the 330 million population in the US are under stay-at-home order.

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[Source: Research & Innovation] The European Innovation Council (EIC) Accelerator Pilot will work with an extra €150 million to support game-changing innovations to tackle the coronavirus crisis. The additional budget, approved by the European Commission today, will fund the best start-ups and SMEs who applied under the March cut-off.

Meeting on May 4, 2018, India's GST Council approved plans to simplify GST filing obligations.

Local authorities in India have been instructed to draw up lists of taxpayers that have filed fraudulent or potentially fraudulent requests for input tax credits and where appropriate share this information with other state authorities.