MF Weekly: MFs’ AUM rises 7.6% to Rs 21 lakh crore in September quarter


Highlights:

 

MFs’ AUM rises 7.6% to Rs 21 lakh crore in September quarter


Mutual fund industry’s asset base surged 7.6 per cent to a record high of Rs 21 lakh crore at the end of September quarter, driven by strong participation from retail investors. In comparison, assets under management (AUM) of the MF industry, comprising 42 players, were at Rs 19.52 lakh crore during the April-June quarter, as per latest data with Association of Mutual Funds in India (Amfi). The industry’s AUM had crossed the milestone of Rs 10 lakh crore for the first time in May 2014 and in a short span of three years, the asset base has more than doubled to Rs 21 lakh crore at the end of September 2017, it added. Prior to this, it had touched a record high of Rs 20.6 lakh crore in August-end. Industry insiders attributed rise in assets base to increased participation from retail investors and high net worth individuals that attracted investments in both debt and equity segments.


IDFC AMC introduces Artificial Intelligence powered PMS


IDFC AMC, has launched the IDFC Neo Equity Portfolio, a unique PMS powered by AI (Artificial Intelligence) and Big Data analysis.The portfolio will analyse data from multiple traditional and non-traditional sources available in the public domain to identify stock opportunities. The fund house believes explosive growth in data generation now allows tracking several activities like goods and shipping movements and traffic patterns to better estimate demand, footfalls at malls to track customer behaviour, social media sentiments, credit card spending patterns etc., all of which can play an increasingly important role in fund management.


DSP BlackRock Mutual Fund launches Equal Nifty 50 Fund


DSP BlackRock Investment Managers launched the DSP BlackRock Equal Nifty 50 Fund, its first scheme in the passive funds category. The DSP BlackRock Equal Nifty 50 Fund is an equal-weighted variation of the Nifty 50 index with the same constituent set of companies. The difference being that the former assigns equal weight to each stock and invests equally in them whereas in the latter, the weight of each constituent is apportioned according to their market capitalization. The DSP BlackRock Equal Nifty 50 Fund, owing to its methodology, aims to provide better sector and stock diversification compared to Nifty 50 Index. Performance wise, on a total return basis, the Nifty 50 Equal Weight Index has outperformed the Nifty 50 Index with an alpha of 2.92 per cent (returns since 30th June 1999 to 31st July 2017). The Equal Weight Index gets rebalanced on a quarterly basis. Owing to this quarterly rebalancing method, an equal weight portfolio has a built-in profit booking mechanism, in effect buying the underperformers at “low” and selling the outperformers at “high”. The scheme is available in both regular and direct plans with both options of Growth and Dividend. The New Fund Offer opens on September 29, 2017 and will close on October 13, 2017.


AMFI suggests SEBI to make MF Utilities a market infrastructure institution


The Association of Mutual Funds in India (AMFI) has suggested Securities and Exchange Board of India (SEBI) to make MF Utilities a market infrastructure institution for the mutual fund industry. In case of recognition of MF Utilities as the market infrastructure institution, all the transactions in mutual funds will pass through a single gateway i.e. MF Utilities. The platform has to provide guaranteed clearing and settlement functions for transactions in mutual funds.


Reliance Mutual Fund changes exit load of its funds


Reliance Nippon Life Asset Management Ltd. has decided to modify the exit load of Reliance Growth Fund and Reliance Vision Fund. Accordingly, no exit load will be charged against earlier exit load of 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units.


Motilal Oswal Mutual Fund changes exit load of its funds


Motilal Oswal Mutual Fund has decided to modify the exit load of Motilal Oswal MOSt Focused 25 Fund, Motilal Oswal MOSt Focused Midcap 30 Fund, Motilal Oswal MOSt Focused Multicap 35 Fund and Motilal Oswal MOSt Focused Dynamic Equity Fund. Accordingly, 1% exit load will be charged if redeemed on or before 1 year from the date of allotment instead of earlier nil exit load. The changes has become effective from Oct 1.

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