Page 18 - Banking Finance January 2024

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