Page 18 - Banking Finance May 2025

MUTUAL FUND

scheme focused on investing primarily
in government securities across varied SBI Mutual Fund Launches Income Plus Arbitrage Ac-
maturities. The New Fund Offer (NFO) tive Fund of Fund
is currently open and will close on
SBI Mutual Fund has unveiled the SBI Income Plus Arbitrage Active FOF, an
May 7.
open-ended Fund of Fund scheme investing in actively managed debt-ori-
The fund aims to allocate at least 80% ented and arbitrage mutual fund schemes. The NFO opens on April 23 and
of its assets to government-backed will close on April 30.
securities, providing investors with an "In today's market environment, stability and tax-efficiency matter. The SBI
opportunity to diversify their portfolios Income Plus Arbitrage Fund of Fund aims to allocate investments between
with sovereign debt instruments. debt-oriented and arbitrage mutual fund schemes, depending on market
Groww said the fund offers investors conditions, to provide a combination of stability from debt and market-neu-
exposure to evolving macroeconomic
tral returns from arbitrage," said D. P. Singh, Deputy MD & Joint CEO, SBI
trends, including anticipated interest Funds Management.
rate reductions and inflation modera-
tion. The scheme targets conservative investors, high-net-worth individuals, and
corporates seeking optimal post-tax returns over a 2-3-year horizon. Its
Given improvements in India's fiscal benchmark is a composite of 65% Nifty Composite Debt Index and 35% Nifty
framework and global monetary con- 50 Arbitrage Index.
ditions, the timing is considered favor-
able for investing in gilt securities. The
fund is positioned as a low-credit risk universe for mutual funds, offering in- Mutual funds best choice
option for investors seeking stable re- vestors greater avenues for risk-ad- for retail investment but
turns over the medium to long term. justed returns while boosting the infra-
structure and real estate sectors' fund- avoid thematic funds: BSE
Sebi Proposes Higher MF ing ecosystem. chief
Limits in REITs, InvITs, 39% of equity mutual Retail investors who lack technical
knowledge of the stock market should
Seeks Feedback on Equity funds outperform respec- consider mutual funds as the best in-
Treatment tive benchmarks in March vestment option, according to S
Ramamurthy, CEO and MD of BSE. He
Securities and Exchange Board of India Around 38.64% equity mutual funds made the remarks during a discussion
(Sebi) is considering enhancing the in- outperformed their respective bench- with members of the Calcutta Cham-
vestment limits for Mutual Funds in marks over the past month, ending ber of Commerce.
Real Estate Investment Trusts (REITs)
March 31, 2025. There were 298 Ramamurthy suggested that small in-
and Infrastructure Investment Trusts open-ended equity diversified funds vestors without market expertise
(InvITs) to provide broader diversifica- and 114 funds recorded out-perfor- should consider index funds and broad-
tion opportunities for MF schemes. based funds or large cap funds to
mance during this period, according to
Given that REITs and InvITs have fea- a mutual fund performance analysis by spread risk within the mutual fund
tures of both equity and debt instru- PL Wealth Management. space, while avoiding thematic funds.
ments, Sebi has invited feedback on Large cap mutual funds was the Ramamurthy emphasized the impor-
whether such securities should be clas- best performing category where tance of investor awareness and re-
sified as 'equity' and included in equity sponsibility. He cautioned that regula-
71.88% of the schemes outperformed
indices for mutual fund investments. tions alone cannot protect investors
the benchmark. It was followed by who do not take adequate precautions.
The regulator has also sought public Large & Mid Cap Funds and Mid Cap "You trade what you understand, and
opinion on whether the proposed re- Funds which outperformed their re- you understand what you trade – if
laxation in investment restrictions spective benchmarks by 58.06% and you don't do that, you have a prob-
would be appropriate. Sebi's move is 51.72% respectively during the month lem," Ramamurthy said, urging inves-
aimed at expanding the investment of March 2025. tors to be vigilant and informed.

16 | 2025 | MAY | BANKING FINANCE