MF Weekly: MF folios surpasses 6-cr mark at Aug-end on high retail push


Highlights:


MF folios surpasses 6-cr mark at Aug-end on high retail push


Showing a growing interest for mutual funds among investors, the number of folios has grown by 2.4 per cent to cross 6 crore at the end of August, according to ICRA, reported PTI. The total folio count at the end of August stood at 6.08 crore, 2.4 per cent higher compared to July. The growth was primarily on the back of 10.9 lakh new folios added to the equity category (including equity linked saving schemes) and another 2.36 lakh new folios to the balanced category, the report noted. Besides, investor awareness initiatives by Asset Management Companies (AMC) and regulatory bodies are helping to enhance the financial awareness and maturity of investors, which in turn is driving this growth, it added. The ELSS category, being a popular tax-saving instrument among investors, alone added 1.21 lakh new folios between April-August 2017. However, folio count dropped by 3,580 and 1,546 in Gold ETFs and Fund of Funds investing overseas, respectively, from July-end levels. The country’s smaller towns or B15 (beyond top 15 cities) locations accounted for 17.6 per cent of the total industry assets base at August-end. In the last 12 months, B15 towns have witnessed AUM growth of 39.1 per cent or Rs 1.04 lakh crore to reach Rs 3.70 lakh crore at the end of August compared to Rs 2.66 lakh a year back. The growth has come on the back of awareness campaigns by AMCs and industry body Association of Mutual Funds in India (Amfi). Overall, the assets under management (AUM) of the MF industry, comprising 42 players, reached to an all time high of Rs 20.6 lakh crore in August-end from Rs 19.97 lakh crore at the end of July.


Aditya Birla Sun Life AMC launches new fund scheme


Aditya Birla Sun Life AMC Ltd has launched a new fund scheme which will invest mainly in equity and equity-related securities. The Aditya Birla Sun Life Resurgent India Fund – Series 5, a close-ended equity scheme with tenure of 3.5 years, opened for subscription on September 20 and closes on October 4, the company said in a statement. The fund aims to generate capital appreciation by investing primarily in equity and equity-related securities, that are likely to benefit from recovery in the Indian economy, it said. The scheme will allocate around 80-100 per cent of assets in equity and equity-related securities (including options premium), and 0-20 per cent in money market and debt instruments, the statement said.


BNP Paribas Mutual Fund launches its focussed fund


BNP Paribas Mutual Fund has announced the launch of BNP Paribas Focused 25 Equity Fund. The NFO of the scheme is currently open for subscription and will close for subscription on 29 September, 2017. The BNP Paribas Focused 25 Equity Fund is an open-ended equity fund and seeks long term capital growth by investing in a concentrated portfolio of equity and equity related instruments. This will be a multi-cap portfolio, of which a minimum 65% will be large capitalization companies and up to 35% in high conviction, fast growing small and mid-sized companies.


Reliance MF fund manager – equity investments steps down


Reliance Mutual Fund has appointed Mr. Manish Gunwani as the fund manager of Reliance Growth Fund, Mr. Sanjay Parekh as the fund manager of Reliance Banking Fund and Mr. Ashutosh Bhargava as the fund manager of Reliance Quant Plus Fund, effective from Sep 16, 2017.


Sebi Seeks SC Nod to Restart Appointment Process for Mutual Fund Regulatory Body


Citing complete lack of regulations for mutual fund distributors and portfolio management products, the Sebi has sought the Supreme Court’s permission to start afresh its process to appoint Self-Regulatory Organisations (SROs). A bench led by Justice Ranjan Gogoi has asked the Sebi to place all the latest developments in this regard in an application while seeking the Court’s nod to issue fresh notice inviting applications for appointment as SRO. The move by the Securities and Exchange Board of India (Sebi) has come almost three years after selection of a SRO by the market regulator got entangled into legal wrangle, leading to a vacuum in this period.An SRO is supposed to monitor all mutual fund distributors, apart from ensuring a cordial relationship between mutual fund houses and distributors.


Indiabulls Mutual Fund declared 0.55% Dividend


Indiabulls Mutual Fund has announced 0.55 per cent dividend under dividend payout option of scheme named as “Indiabulls Arbitrage Fund” on the face value of Rs 10 per unit. The record date for the dividend was September 21. The latest NAV of the scheme is Rs 10.57. The investment objective of the open ended liquid fund scheme is to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market. The performance of the scheme was benchmarked against Crisil Liquid Fund Index. Sumit Bhatnagar is the fund manager of the scheme.


Edelweiss Mutual Fund announced 1% dividend


Edelweiss Mutual Fund has announced 1 per cent dividend under dividend payout option of scheme named as “Edelweiss Equity Opportunities Fund” on the face value of Rs 10 per unit. The record date for the dividend was September 21. The latest NAV of the scheme is Rs 16.97. The investment objective of the open ended equity scheme is to generate income and long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives. The performance of the scheme was benchmarked against S&P BSE 200. Harshad Patwardhan is the fund manager of the scheme.


Taurus Starshare Fund Announces Dividend


Taurus Mutual Fund has announced 27 September 2017 as the record date for declaration of dividend on the face value of Rs 10 per unit under regular plan-dividend option & direct plan-dividend option of Taurus Starshare Fund. The amount of dividend will be Re 0.70 per unit under each plan as on the record date.


ICICI Prudential Mutual Fund Announces wound up of ICICI Prudential Interval Fund – Quarterly Interval Plan I


ICICI Prudential Mutual Fund has announced wind up of ICICI Prudential Interval Fund – Quarterly Interval Plan I, a debt oriented interval scheme, with effect from 21 September 2017.

 

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