Tag: mutual funds

Tata Banking & PSU Debt Fund to merge with Tata Corporate Bond Fund from June 15

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Mutual Fund has unveiled plans for the merger of Tata Banking & PSU Debt Fund with Tata Corporate Bond Fund, set to take effect from June 15, 2024.

In a move aimed at streamlining its offerings, Tata Corporate Bond Fund will be the surviving scheme post-merger.

From June 15 onwards, Tata Banking & PSU Debt Fund will be dissolved, and its unit holders will transition to becoming unit holders of Tata Corporate Bond Fund.

As part of the merger arrangement, mutual fund investors are provided with an exit option, allowing them to redeem their investments at the prevailing Net Asset Value (NAV) without incurring any exit load.

This exit window is available till June 14, enabling investors to make decisions regarding their holdings.

Investors in the Income Distribution cum Capital Withdrawal Option (IDCW) of Tata Banking & PSU Debt Fund will be allotted units in the corresponding IDCW option of Tata Corporate Bond Fund.

Similarly, investors in the growth option of Tata Banking & PSU Debt Fund will receive units in the growth option of Tata Corporate Bond Fund, based on the closing net asset value (NAV) of the record date.

Those who opt to retain their investments post-merger will be subject to the load structure of Tata Corporate Bond Fund prevailing on the record date.

Additionally, existing Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and Systematic Withdrawal Plans (SWPs) in Tata Banking & PSU Debt Fund will be discontinued post-merger, with investors having the option to register for fresh plans in Tata Corporate Bond Fund.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

How can Gen Z start investing in mutual funds

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Given the current market landscape, understanding risks and assessing one’s investment appetite is paramount. So, where should Gen Z kickstart their investment journey?

Should they lean towards mutual funds, SIPs, or perhaps consider gold?

Let’s delve deeper.

According to Shweta Rajani, Senior Vice President & Head of Mutual Funds at Anand Rathi Wealth, the first step is setting clear objectives

Defining both short and long-term financial goals lays the groundwork for effective financial planning.

Whether it involves purchasing a home or preparing for retirement, taking the time to contemplate your aspirations is crucial.

Following goal setting, Rajani advocates for strategising, which encompasses budget allocation, determining the optimal asset mix between equity and debt, and selecting appropriate investment avenues.

She highlights the significance of commencing investments early to harness the benefits of compounding.

Advisably, initiating investments upon receiving the first paycheck is prudent.

Time serves as a critical factor in facilitating the exponential growth of investments.

Understanding the nuances of various investment products, such as mutual funds, is imperative for making well-informed decisions.

In terms of dos and don’ts, Rajani offers these guidance:

Dos:

• Employ technology wisely for research and investment monitoring.
• Clearly define objectives before committing to investments.
• Establish an emergency fund to navigate financial uncertainties.
• Ensure the presence of insurance or a retirement plan.
• Practice consistent investing and exercise patience.

Don’ts:

• Avoid blindly chasing trends solely because they are popular.
• Refrain from excessive trading despite the ease of technological access.
• Keep insurance needs separate from investment endeavors.

Rajani also highlights the trend of many do-it-yourself (DIY) Gen Z investors.

However, she cautions that this approach may not be ideal, especially considering that beginners often possess a limited level of knowledge in the field.

Watch this video for more.

Also Read | Unlocking financial growth: Anand Rathi Wealth’s investing tips for Gen Z

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

This is Zerodha Fund House’s first mutual fund scheme to cross ₹1,000 crore AUM

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Zerodha Fund House’s (ZFH’s) Growth Liquid Exchange Traded Fund (ETF) has become the first mutual fund scheme under its banner to exceed the ₹1,000 crore Assets Under Management (AUM) threshold.

Dubbed the Zerodha Nifty 1D Rate Liquid ETF, this fund distinguishes itself as India’s first Liquid ETF with Growth Net Asset Value (NAV).

Launched earlier this year on January 24, 2024, the Zerodha Nifty 1D Rate Liquid ETF tracks the performance of the Nifty 1D Rate Index.

This scheme assesses the returns generated by market participants lending in the overnight market.

With a primary focus on investing in TREPS (Treasury Bills Repurchase) traded on the CCIL (Clearing Corporation of India Ltd) platform, the ETF provides investors exposure to overnight debt products backed by treasury bills.

Its structure facilitates transitions between equity and cash within the same settlement.

Deepak Shenoy, Founder of Capitalmind said, “LIQUIDCASE is the innovation this market was waiting for so it is not surprising that it is gaining traction in the market. It removes dividend accounting and tracking hassle, making it simple to use to take cash positions.”

He emphasised the ETF’s ability to execute large-volume transactions close to NAV.

This ensures minimal slippage and maximises investor returns.

Liquid ETFs like LIQUIDCASE predominantly allocate funds towards overnight debt securities such as Tri-Party Repo, Repo, Government Securities, Reverse Repos, and similar instruments.

Notably, approximately 99% of LIQUIDCASE’s allocation is directed towards Tri-Party Repo, traded through the CCIL platform and fully collateralised by government securities.

ALSO READ | Total demat accounts increased to 154 million in April: Motilal Oswal

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Finserv Mutual Fund launches Nifty 1D Rate Liquid ETF: Should you invest

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Finserv Mutual Fund on Monday (May 13) launched Nifty 1D Rate Liquid ETF. The New Fund Offer (NFO) period for this ETF is from May 13 to May 16 2024.

This is an open-ended exchange traded fund tracking Nifty 1D Rate Index with relatively low interest rate risk and relatively low credit risk.

The scheme aims to provide current income with low risk while ensuring a high level of liquidity. It will primarily invest in tri-party repo on government securities or T-bills/Repo and Reverse Repo, closely mirroring the returns of Nifty 1D Rate index, subject to tracking error.

Targeted towards investors seeking short-term savings solutions, the ETF will offer a liquid scheme with low risk and high liquidity. The initial investment can start at ₹5,000, with subsequent investments allowed in multiples of ₹1.

The ETF will be managed by Siddharth Chaudhary and Nimesh Chandan. There will be no exit load for units sold through the secondary market on the stock exchange.

However, investors should note that brokerage on sales of units on stock exchanges shall be borne by them.

Large investors can redeem units directly with the fund at applicable NAV based prices if the redemption amount is greater than ₹25 crore, without any exit load currently applicable.

Investment consideration

The Nifty 1D Rate Liquid ETF presents a decent option for investors seeking stability and liquidity in their investment portfolio, especially for short-term savings.

With its focus on low-risk securities covered by Nifty 1D Rate Index, the ETF offers a potential avenue for current income with relatively low interest rate and credit risk.

However, as with any investment decision, investors should conduct thorough due diligence and consider consulting with financial advisors to assess whether this ETF aligns with their investment objectives and risk appetite.

ALSO READ | India’s first multi-asset allocation mutual fund with dividend yield strategy launched: Is it worth your investment?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s first multi-asset allocation mutual fund with dividend yield strategy launched: Is it worth your investment?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Finserv Asset Management Company (Bajaj Finserv AMC) on Monday (May 13) launched Bajaj Finserv Multi Asset Allocation Fund. This scheme is the nation’s first multi-asset fund with a dividend yield strategy.

The new fund offer (NFO) for the scheme will remain open until May 27.

Following this, it will be available for subscription until or before June 6, 2024.

The mutual fund house noted that dividend is due only when declared and there is no assurance that a company may continue paying dividend in future.

The scheme is vulnerable to instances where investments in securities may not earn dividend or where lesser dividend is declared by a company in subsequent years in which investments are made by scheme, Bajaj Finserv Mutual Fund said.

This is because profitability of companies are likely to vary and have a material bearing on their ability to declare

About the fund

The Bajaj Finserv Multi Asset Allocation Fund offers a diversified portfolio across various asset classes, including equities, fixed income instruments, commodities such as gold and silver ETFs, and REITs/InvITs.

With an equity allocation ranging from 35-80%, the fund employs a multi-theme, multi-sector, and multi-cap approach to investment.

The fund’s benchmark comprises 65% Nifty 50 TRI, 25% NIFTY Short Duration Debt Index, and 10% domestic prices of gold.

The Bajaj Finserv Multi Asset Allocation Fund will be managed jointly by Nimesh Chandan, Sorbh Gupta, Siddharth Chaudhary, and Vinay Bafna, across equity, fixed income, and commodities investment segments.

Investment considerations

According to Ganesh Mohan, CEO of Bajaj Finserv AMC, this fund has the ability to provide investors with access to multiple asset classes through a single investment avenue.

He stated, “Our aim is to offer a well-rounded portfolio that can navigate through various market scenarios and deliver consistent returns.”

Nimesh Chandan, CIO of Bajaj Finserv AMC further highlighted the focus on dividend yield-based investing to minimise volatility impact and maximise returns.

Chandan stated, “Investors seeking reasonable returns, professional asset allocation, and an all-weather investment avenue with low volatility compared to pure equity funds can consider Bajaj Finserv Multi Asset Allocation Fund.”

While the fund provides a unique investment proposition, investors should note that dividends are subject to declaration by companies, and there is no guarantee of future payouts.

Additionally, entry load is not applicable, but an exit load will be levied for redemptions/switch-outs within one year from the date of allotment.

Moreover, investors should conduct a thorough assessment of their risk tolerance, investment horizon, and retirement goals before investing.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Finserv to launch India’s first multi-asset fund with dividend yield strategy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Finserv Asset Management Company (Bajaj Finserv AMC) has announced the launch of Bajaj Finserv Multi Asset Allocation Fund. This will be India’s first multi-asset fund with dividend yield strategy, the mutual fund house said.

The new fund offer (NFO) of the scheme will open on May 13 and close on May 27. After that, it will be open for subscription on an ongoing basis on or before June 6, 2024.

The benchmark of the fund will be 65% Nifty 50 TRI plus 25% NIFTY Short Duration Debt Index plus 10% domestic prices of gold.

Bajaj Finserv Multi Asset Allocation Fund will invest across different asset classes with varying allocations.

It will maintain a diversified portfolio with an equity allocation ranging from 35-80%, employing a dividend yield strategy, multi-theme and multi-sector approach, and multi-cap orientation.

The fund will allocate 10-55% to fixed income instruments.

Further, it will allocate 10-55% to commodities, providing exposure to gold ETFs, silver ETFs, and exchange-traded commodity derivatives, according to the mutual fund house statement.

Also, the fund may allocate 0-10% to REITs/InvITs, focusing on investments for regular income, diversification, and an opportunistic approach.

While entry load will not be applicable, an exit load will be there for each purchase of units through lumpsum/switch-in /systematic investment plan (SIP) and systematic transfer plan (STP).

The fund will be jointly managed by Nimesh Chandan and Sorbh Gupta on the equity side; Nimesh Chandan and Siddharth Chaudhary on the fixed income side; and Vinay Bafna on commodities investment.

The exit load will be as follows:

If units are redeemed/switched out within one year from the date of allotment:

• Up to 30% of units allotted are redeemed/switched out – Nil.
• Any redemption/switch-out of units in excess of 30% of units allotted — 1% of applicable NAV.
• If units are purchased or switched in from another scheme of the fund are redeemed or switched out after one year from the date of allotment, no exit load is payable.

Speaking on the launch of the product, Ganesh Mohan, CEO, Bajaj Finserv AMC, said. “Bajaj Finserv Multi Asset Allocation Fund provides investors with an opportunity to access multiple asset classes through a single investment avenue. The fund’s asset allocation decisions are driven by a comprehensive evaluation of macroeconomic factors, valuation metrics, and investor behaviour. Our aim is to offer a well-rounded portfolio that can navigate through various market scenarios and deliver consistent returns.”

Nimesh Chandan, CIO, Bajaj Finserv AMC, highlighted the fund’s investment strategy, saying, “Our focus on dividend yield-based investing in the current scenario has the potential to minimise impact against volatility and maximise returns for the investors. Investors who are seeking reasonable returns, professional asset allocation, and an all-weather investment avenue with low volatility compared to pure equity funds can consider Bajaj Finserv Multi Asset Allocation Fund.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

AMFI to soon unveil guidelines to curb front-running and insider trading in mutual fund houses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Association of Mutual Funds in India (AMFI) will introduce a standardised operating procedure (SOP) for asset management companies (AMCs) within a month. This will be in order to curb potential market abuse, including front-running and insider trading, AMFI Chief Executive Venkat Chalasani said while making the monthly mutual fund data announcement.

This decision follows a directive from the Securities and Exchange Board of India (SEBI) on April 30, urging AMCs to establish a structured institutional mechanism for identifying and deterring market abuse.

SEBI will outline broad guidelines, with AMFI tasked to develop specific standards.

The regulator aims to enhance surveillance and internal control procedures within AMCs to detect misconduct and prevent misuse of sensitive information.

Additionally, SEBI plans to increase accountability among AMC management for any instances of misconduct.

To ensure transparency and accountability, AMCs will be required to implement a whistle-blower mechanism. This mechanism is intended to encourage employees to report any suspicious activities without fear of reprisal.

The need for such measures became apparent following instances where mutual fund employees were implicated in front-running trades for personal gain.

In response, SEBI imposed stricter norms on MF staff and fund managers. At present, AMC employees must document all face-to-face communications during market hours, including those that occur outside the office.

However, SEBI may grant exemptions to these requirements once the institutional mechanism is in place.

Previously, SEBI had brought mutual fund units under its prohibition of insider trading regulations to prevent employees and key staff from engaging in dealings based on unpublished price-sensitive information (UPSI).

Certain cases revealed key personnel redeeming their holdings in schemes before information was shared with other unit holders, prompting regulatory action.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SIP inflows cross ₹20,000 crore for the first time in April

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Systematic Investment Plan (SIP) inflows have breached the ₹20,000 crore mark for the first time in April 2024. According to data released by the Association of Mutual Funds in India (AMFI), SIP contributions reached a record high of ₹20,371.47 crore in April 2024, surpassing the previous month’s figure of ₹19,270.96 crore.

This surge in SIP inflows has further supported the industry’s Net Asset Under Management (AUM), which stood at ₹57.26 lakh crore for April 2024, up from ₹53.40 lakh crore in March 2024.

The increase in new SIP registrations further underscores the growing interest of investors in mutual fund investments.

In April 2024, the number of new SIPs registered totaled 63.65 lakh.

Commenting on these developments, Venkat Chalasani, Chief Executive of AMFI said, “The Mutual Fund Industry has witnessed significant growth, with SIP contributions reaching ₹20,371.47 crore and the total SIP AUM reaching ₹11.26 lakh crore in April 2024. Additionally, the number of SIP accounts has reached a new high of 8.70 crore.”

Notably, the net equity mutual fund inflows in April witnessed a decline to ₹18,888 crore from ₹22,576 crore in the previous month.

As per Chalasani, the dip in April’s mutual fund inflows were not impacted by ongoing Know Your Customer (KYC) compliance issues.

He revealed that currently, 93% of accounts either possess KYC registered or KYC Validated status, with only 3% encountering ‘KYC Hold’ status.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

93% mutual fund accounts KYC validated or registered, April’s numbers not hit by compliance issues: AMFI

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Venkat Chalasani, Chief Executive Officer, Association of Mutual Funds in India (AMFI), on Thursday (May 9) said that decline in April’s mutual fund inflows were not impacted by ongoing Know Your Customer (KYC) compliance issues.

Despite dip in net equity mutual fund inflows from ₹22,576 crore to ₹18,888 crore compared to the previous month, Chalasani emphasised that the system is functioning effectively.

He revealed that currently, 93% of accounts either possess KYC registered or KYC Validated status, with only 3% encountering ‘KYC Hold’ status.

In response to Securities Exchange Board of India’s (SEBI’s) latest directive on KYC norms, AMFI provided clarity on guidelines for investors:

• KYC verified investors retain the flexibility to invest in any Mutual Fund (MF) scheme.
• KYC registered investors can continue their investments in Asset Management Companies (AMCs) where they already hold investments.
• Investors facing KYC hold status should to rectify their KYC status promptly with valid documents.

Chalasani further highlighted that 98-99% of MF transactions are processing smoothly.

This includes purchases and redemptions, despite the challenges posed by KYC compliance.

AMFI is actively involved in resolving KYC issues for investors, especially those with ‘KYC on hold’ status.

It must be noted that media reports earlier indicated that approximately 1.3 crore mutual fund accounts are currently ‘on hold’ due to incomplete KYC compliance.

These accounts had their KYC processes completed using documents such as electricity bills, telephone bills, and bank account statements.

However, under SEBI’s latest directive, these documents are now considered invalid for KYC purposes.

Officially valid documents now include an Aadhaar card, passport, and voter ID card.

Consequently, investors with accounts flagged as ‘on hold’ are currently restricted from engaging in any transactions within mutual funds, whether buying or selling units.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow