Industry AUM rose to Rs.21.41 lakh crore in Oct 2017

As per data from the Association of Mutual Funds in India (AMFI), the assets under management (AUM) of mutual fund industry rose to Rs. 21.41 lakh crore in Oct 2017 compared with Rs. 20.40 lakh crore in Sep 2017. Overall inflow in mutual fund schemes stood at Rs. 51,148 crore in Oct as against outflow of Rs. 16,604 crore in the preceding month. Income funds saw inflow of Rs. 40,845 crore while equity and equity-linked saving scheme (ELSS) saw an infusion of Rs. 16,002 crore. However, liquid funds saw net outflow of Rs. 13,261 crore during the period.

AMFI to request SEBI on modification of scheme consolidation guidelines

According to media reports, the Association of Mutual Funds in India (AMFI) is likely to approach the Securities and Exchange Board of India (SEBI) requesting modification of certain regulations of the scheme consolidation guidelines. Among other things, AMFI is planning to request the market regulator on modification of norms related to market capitalization. On debt funds, AMFI will request the market regulator to consider modified duration instead of Macaulay duration.

HDFC Mutual Fund to launch housing opportunities fund on Nov 16; offer to end Nov 30

HDFC Mutual Fund will launch HDFC Housing Opportunities Fund- Series 1 on Nov 16 and it will remain open for subscription until November 30. The close-ended thematic equity fund will allocate at least 80 percent of its assets in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing and its allied business activities. The fund house will also invest up to 20 percent in equity shares of companies other than in housing and its allied business activities or in debt and money market instruments. The scheme also has the provision to invest up to 10 percent in units issued by Real Estate Investment Trusts or REITs & Infrastructure Investment Trusts InvITs.

PNB to exit mutual fund business

Punjab National Bank will sell its entire stake in Principal PNB Asset Management Company. The Principal group has exercised call option to buy the entire stake in the company. Consequent upon the exercise of call option by the Principal Group, the Board in its meeting held on Nov 2 has approved to offload its entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.

Essel Finance makes a foray in mutual fund business

Post-acquisition of Peerless Funds Management in Aug 2017, Essel Finance, a part of the conglomerate Essel Group announced its entry to the Rs. 21 trillion mutual fund industry. The Managing Director of Essel Finance said that the company has been exploring an opportunity to acquire a mid-sized fund house.

Motilal Oswal Mutual Fund appoints Mr. Abhaya Hota as an Independent Director

Motilal Oswal Mutual Fund has announced appointment of Mr. Abhaya Hota as an independent director on the Board of Motilal Oswal Asset Management Company Limited, Investment Manager to Motilal Oswal Mutual Fund (MOMF) with effect from Oct 24, 2017. The fund house has also announced appointment of Mr. Nagesh Pinge as an independent director on the board of Motilal Oswal Trustee Company Limited with effect from Oct 24.

Reliance Nippon AMC lists at 17% premium

The equity shares of Reliance Nippon Life Asset Management Ltd (RNAM) were listed at Rs 295.9, a premium of Rs 43.9 or 17.4% (on the upper band of the IPO price of Rs. 252). RNAM was admitted to dealings on the BSE in the list of 'B' Group Securities. The stock codes for RNAM on the BSE and NSE respectively are 540767 and RNAM. RNAM is an India based asset management company. Company is promoted by Reliance Capital Limited and Nippon Life. Reliance Capital is an RBI registered non-banking finance company with business interests in asset management and mutual funds, life, health and general insurance, commercial and home finance, stock broking, wealth management services, and distribution of financial products, asset reconstruction and proprietary investments.