Equity, debt, hybrid, sectoral are the themes for which the mutual fund houses have filed the applications
In the truncated week gone by, four fund houses filed draft offer documents with the market regulator Securities and Exchange Board of India (SEBI) seeking approval to launch various schemes.
Equity, debt, hybrid, and sectoral were the themes for which the mutual fund houses filed the applications.
Fund houses Mirae Asset Mutual Fund, Indiabulls Mutual Fund, Axis Mutual Fund and Shriram Mutual Fund filed offer documents for new fund offers (NFOs) with SEBI.
According to market participants, mutual funds are focusing more on retail investors who are already showing a lot of commitment and maturity. Also, there has been a growing demand from retail investors for mutual fund products as the investors' base touched a record high of 6.65 crore.
Mirae Asset Mutual Fund has sought the market regulator's go ahead to introduce a healthcare fund , while Shriram Mutual Fund India has filed an offer document for Shriram Multicap Fund.
Axis Mutual Fund has sought approval for Axis Ultra Short Term Fund, while Indiabulls has filed for a hybrid scheme.
Interestingly, Mahindra Mutual Fund once again approached the capital markets regulator for launching a plan with Hindi name 'Rural Bharat Yojana' so that investors in rural areas understand the objectives of the schemes in a better manner. The move is seen as moving away from the age-old tradition of English names for schemes.
Over the last few years, mutual funds have proved to be a low-cost, compliant and transparent way to channelise savings towards financial investments.
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. The funds are invested in stocks, bonds and money market instruments, among others.
Among other developments, Pankaj Sharma, Chief Investment Officer, DSP BlackRock Mutual Fund, in an interview to Moneycontrol, had said that he sees risk of interest rate reversal by Reserve Bank of India.
According to Sharma, the recent trends in macro-economic variables particularly slippage in fiscal deficit and rise in inflation expectations have increased risks for sooner-than-expected reversal in interest rate stance.
To read the full interview please click the below link:
Sharma expects the 10-year government bond to remain under pressure amid volatility.
26 AMCs agree to pay to BSE service charge for BSE StAR MF platform
Leading stock exchange BSE had sated in a press release that 26 asset management companies (AMCs) agreed to pay a fee to the bourse for the services being provided through its mutual fund platform.
The mutual fund industry has agreed to pay a nominal service charge per transaction on bilateral basis to BSE for its services being provided through the BSE StAR MF platform.
These agreements for payment, decided on a bilateral basis with each individual AMC, will allow BSE additional resources to provide even better services to AMCs and all investors in mutual funds, bringing further automation and certainty to the mutual funds investment process in India, BSE stated in a release.
This platform is the largest mutual fund distribution platform in the country with more than 20 percent of market share. In February 2018, BSE StAR MF platform processed over 2 million transactions with an average transactions per day of over 1 lakh and added nearly 1,000 new mutual fund distributors.
Reliance Nippon Life MF launches Any Time Mutual Fund facility
Transacting with Reliance Nippon Life Mutual Fund will get easier as the fund house has introduced a digital kiosk to facilitate mutual fund investment through an ATM-like machine called Any Time Mutual Fund.
This kiosk will enable existing investors to update their details, print their account statement and complete their CKYC (Central Know Your Customer). Similarly, distributors can also print and download account statements of their clients.
Distributors and investors will also be able to get information on account balance and NAV (net asset value). These digital kiosks will be placed at select branches of Reliance Mutual Fund where footfalls are higher.
On boarding new customers will be done through Aadhaar enabled-biometric KYC process.
The fund house has installed 14 kiosks across various branches of Reliance Nippon Life MF. Investors have executed over 9,000 transactions plus interactions through these kiosks so far.
