Page 18 - Banking Finance January 2024
P. 18

MUTUAL FUND

          our customers, we have changed the  long-term capital appreciation to unit  As the unforeseen gift of a pandemic-
          ETF product symbols to further simplify  holders from a portfolio that is invested  led boom in retail investing keeps on
          the identification of ETF Schemes for  in equity and equity related instru-  giving, and India's $4.1 trillion equity
          passive investment purposes. Product  ments of companies engaged in auto-  market continues to grow - benchmark
          identification can sometimes be con-  motive  &  allied  business  activities  indexes are poised to cap a record
          fusing for investors. Starting the ETF  theme.                       eighth year of gains - industry veterans
          Schemes name followed by the suffix  The scheme will allocate 80-100% in  see mutual funds attracting a bigger
          'IETF', we believe will make the selec-  equity and equity related instruments  slice of households' financial assets in
          tion more convenient".            of companies engaged in automotive  the years to come. Their share was
                                            & allied business activities theme (in-  under 9% as of March this year, versus
          Tata  Mutual  Fund  cuts          cluding equity derivatives), 0-20% in  about 45% for bank deposits.
          minimum SIP application           equity and equity related instruments
                                            of companies other than companies Sebi extends deadline to
          amount to Rs 100                  engaged in automotive and allied busi-  June 2024 to add  nomi-
          Tata  Mutual Fund  has reduced  the  ness activities theme, 0-20% in debt
          minimum application amount for SIP  and debt related instruments (includ-  nees  in  mutual  funds,
          across its schemes to Rs 100 and in  ing securitized debt & debt deriva-  demat accounts
          multiples thereof.                tives) and money market instruments  Markets regulator Sebi extended the
                                            including tri-party repos, 0-10% in units
          This addendum sets out changes to be                                 deadline to June 30, 2024 for demat
          made in the scheme information docu-  issued by REITs and InvITs, and 0-20%  and mutual fund account holders to
          ment (SID) & key information memo-  in units of domestic and overseas mu-  provide a nomination.
          randum (KIM) of the above specified  tual fund schemes (including ETFs).  Earlier, the deadline to nominate a
          schemes of the fund house.                                           beneficiary or opt out of it by submit-
                                            India's  mutual funds in-
          The fund house also stated that the                                  ting a declaration form was December
          above revision will be implemented dustry  outpaces  global          31, 2023.
          prospectively and shall remain in force  peers  with  19%  asset     "Based on representations received
          till further notice.                                                 from the market participants, for ease
                                            growth, leaving behind US,
          All other terms and conditions along                                 of compliance and investor conve-
          with risk o meter of schemes, PRC Japan and China                    nience, it has been decided to extend
          Matrix of the SID & KIM cum applica-  A record surge in assets under manage-  the last date for submission of 'choice
          tion  form  &  SAI  read  with  other  ment. More than 20 million new invest-  of nomination' for demat accounts and
          addendums if any remain unchanged.  ment accounts added. And a planned  mutual fund folios to June 30, 2024,"
                                            return by BlackRock Inc., the world's  the Securities and Exchange Board of
          SBI Mutual Fund files draft       largest money manager.             India (Sebi) said in a circular.

          documents  for two the-           These are some of the milestones that  Further, Sebi asked asset management
                                            mark what's set to be a blockbuster  companies (AMCs), depository partici-
          matic funds
                                            year for India's mutual funds industry.  pants  and  Registrar  and  Transfer
          SBI Mutual Fund has filed draft docu-  Powered by an insatiable thirst for fi-  Agents (RTAs) to encourage the demat
          ments with Sebi for two thematic funds  nancial gains, millions of young Indians  account holders and mutual fund unit
          : SBI Automotive Opportunities Fund  armed with smartphones have taken  holders to fulfil the requirement for
          and SBI Energy Opportunities Fund.  to equity investments in the world's  nomination/opting out of nomination

          SBI Automotive Opportunities Fund will  most-populous nation. That's helped  by sending a communication on fort-
          be an open-ended equity scheme fol-  boost fund assets by 19% in the first 11  nightly basis by way of emails and SMS
          lowing automotive and allied business  months  of  2023,  data  from  to all such unit holders who are not in
          activities theme. The investment objec-  Morningstar Inc. show, beating major  compliance with the requirement of
          tive of the scheme will be to generate  peers like the US, Japan and China.  nomination.


            16 | 2024 | JANUARY                                                            | BANKING FINANCE
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