Page 19 - Banking Finance December 2020

MUTUAL FUND

80% allocation to small caps, with the are participating in or enabling dis- indicating a return to normalisation for
rest in mid caps. Although small cap ruption the retail investor.
funds can invest up to 35% of their > Its multi-sector and multi-cap as- However, the increase in SIP numbers
corpus in large cap companies also, set allocation strategy along with "may induce many to profit booking, as
this will not be the strategy of UTI exposure to global equities ensures we are seeing in November equity flow
Small Cap, said Agarwal. that it is beneficiary to not only the preliminary numbers", said
It will aim to hold a portfolio of 60-70 disruptor but also companies GautamKalia, head (investment solu-
stocks so that it can be scaled up with- which are adapter or enablers of tions) at Sharekhan by BNP Paribas.
out having to change the portfolio, he disruption
added. The strategy is a bottom-up one > Overseas investments will be ad-
and so there will be no predetermined vised by Schroder Investment Man- The industry raised Rs. 7,800 crore
sectoral allocations. However the agement Limited based on their through the SIP route last month, com-
model portfolio put out by UTI MF in disruption philosophy pared with Rs. 7,788 crore garnered in
its presentation shows consumer September, data from the Association
goods as the top sector followed by fi- > The NFO of Axis Special Situations of Mutual Funds in India (Amfi)
nancial services. Fund will open on December 4 and showed.
will close on December 18. This was the first increase in System-
"A low interest rate environment dis-
proportionately benefits mid and small > The scheme will be benchmarked atic Investment Plan (SIP) inflows since
cap companies. These tend to have a against Nifty 500 TRI. March this year. With the latest fig-
higher cost of capital than large caps. "Axis AMC has always tried to bring ures, the inflow through the route had
If you notice the returns over the past innovative new fund ideas for our in- reached to Rs. 55,627 crore in the first
few years have been led by expansion vestors that we believe can help in eight months of the current financial
in multiples. However in the coming long term wealth generation. Our year 2020-21.
years we expect earnings growth to product development is backed by our "While the month-on-month increase
take charge," said Agarwal. unique and time tested philosophy of is marginal, it may be an indication to
responsible investing with an unflinch- a return to normalisation for the retail
Axis Mutual Fund launches ing focus on quality. The introduction investor.
of the Axis Special Situations Fund also "The recent spurt in equity markets
'Special Situations Fund' continues our journey towards creat- may also instil more confidence in re-
Axis AMC has launched 'Axis Special ing an industry leading asset manage- tail investors who will see their SIP in-
Situations Fund', an open ended equity ment platform that can service needs vestments show higher returns in their
scheme that follows a special situa- for all our investors. As the world statements," Kalia said.
tions theme focusing on investing in transforms around us led by ever ac-
disruptive growth opportunities. The celerating technological change and Considering the fact that economy is
fund will allow investors to capture innovation, investors need to be able slowly reviving and job market is also
opportunities across the entire disrup- to allocate to and benefit from this reaching pre-COVID-19 levels gradu-
ally, FYERS Head (Research) Gopal
tion value chain. Further the fund will theme - whether in Indian or global
be investing across both domestic and markets," says Chandresh Kumar Kavalireddi said investors are resuming
global markets as well as across the Nigam, MD & CEO, Axis AMC. their investments, which was either
market cap spectrum. Overseas invest- paused due to paucity of funds or with-
ments will be advised by Schroder SIP inflow rises in October, drawn to meet expense.
(which is around 25% shareholder in Further, fund collection through SIP
Axis AMC). tally reaches to Rs. 55,627 was Rs. 7,791 crore in August, Rs.
crore 7,831 crore in July, it dropped below
Here are the key features of Axis Spe-
cial Situations Fund: After six months of continuous decline, the Rs. 8,000-crore mark in June to Rs.
> The fund offers Indian investors an investment in mutual funds through 7,917 crore. It was at Rs. 8,123 crore
opportunity to invest in stocks that SIPs rose to Rs. 7,800 crore in October in May, Rs. 8,376 crore in April and Rs.
8,641 crore in March.

BANKING FINANCE | DECEMBER | 2020 | 19