Page 17 - Banking Finance February 2024

MUTUAL FUND

The fund house also informed that all companies constituting the underlying "Our new fund is an opportunity for
other terms and conditions of the SIDs, index (Nifty50 Value 20 Index) and 0- those who want to take advantage of
KIMs and SAIs of the schemes will re- 5% in money market instruments in- the merits of passive investing while
main unchanged. This addendum cluding TREPs and units of debt aiming to benefit from diversification
forms an integral part of the SIDs and schemes. and growth across the largest compa-
KIMs of the above-mentioned schemes nies in India by market cap and sec-
as amended from time to time. SBI Mutual Fund eyes Rs tors, which steer our economy," DP
Singh said.
The schemes are from mid cap, ag- 500 crore from new fund
gressive hybrid, large cap, balanced The largest fund house SBI Mutual Bandhan Mutual Fund
advantage, thematic fund categories. Fund launched a new equal weight in- launches Bandhan Multi
According to the last available portfo- dex fund that will track the Nifty 50
lio, Kotak Emerging Equity Fund is the index, and expects to garner at least Asset Allocation Fund
second largest scheme based on assets Rs 500 crore during the primary sub- Bandhan Mutual Fund has announced
managed in the mid cap category. The scription period. For investors, the the launch of the Bandhan Multi Asset
scheme manages assets of Rs open-ended fund comes with a rela- Allocation Fund, an open-ended
38,519.69 crore. tively lower cost as it is a passive fund scheme that enables investment across
which will remain open from January diverse asset classes including Indian
ICICI Prudential Mutual 16 to 29, the fund house said. equities, international equities, arbi-
"We are targeting to collect at least Rs trage, fixed income, gold and silver.
Fund launches ICICI Pru-
500 crore during the primary subscrip- Studies have established that asset al-
dential Nifty50 Value 20 tion period," DP Singh, the deputy location, rather than security selection

Index Fund managing director & joint chief execu- or market timing, is the dominant fac-
tive at SBI Funds Management, told tor impacting return variability, the
ICICI Prudential Mutual Fund has PTI. fund house said. The new fund will
launched ICICI Prudential Nifty50 Value adopt a multi-asset allocation strategy
20 Index Fund. ICICI Prudential Nifty50 The investment objective of the to optimize reward and risk by diversi-
scheme is to provide returns that cor-
Value 20 Index Fund is an open-ended fying investments across various asset
index scheme replicating Nifty 50 Value respond to the total returns of the se- classes, each offering unique advan-
curities represented in the underlying
20 Index. tages in terms of growth, stability, and
Nifty index, he said. inflation protection.
The scheme will invest in the securities
included in the Nifty50 Value 20 Index Shamsher Singh, the managing direc-
tor & chief executive, said, the new Mutual funds' collects Rs
(underlying index) which consists of the
index fund is a smart-beta strategy
top 20 most liquid value blue chip com- that allocates equal weight to all 63,854 crore through NFOs
panies listed on the NSE forming part stocks, instead of considering market in 2023
of Nifty 50. The 20 constituents in the
cap as the sole criteria. Asset management companies
portfolio will be from the Nifty 50 In- launched 212 new fund offerings
dex. Investors who seek balanced diversifi- mobilising Rs 63,854 crore in 2023,
cation and a broad-based growth po-
The investment objective of the marginally higher from previous year,
tential from all companies based on
scheme is to provide returns that Nifty50, passively and at a relatively on the back of significant uptrends in
closely correspond to the returns of its lower cost can consider investing in broader markets. In comparison, Asset
benchmark Nifty50 Value 20 Index, Management Companies (AMCs) gar-
this fund, he said.
subject to tracking error. nered Rs 62,187 crore through 228
DP Singh said in market-cap weighted New Fund Offerings (NFOs) in 2022.
The scheme will be managed by Nishit indices like Nifty50, a stock/sector Further, they collected Rs 99,704 crore
Patel, Priya Shridhar, and Kewal Shah.
might constitute a large weight of the in 2021 and Rs 53,703 crore in 2020,
The scheme will allocate 95-100% in index which sometimes leads the index according to data compiled by
equity and equity related securities of to be driven by them. Morningstar India.

BANKING FINANCE | FEBRUARY | 2024 | 15