Page 16 - Banking Finance November 2019

MUTUAL FUND

DHFL likely to buy back Krishna Sanghvi to be appointed as CIO of Mahindra
mutual fund bonds at Mutual Fund
discount Krishna Sanghavi will soon join the Mahindra Mutual Fund as the Chief Invest-
ment Officer (CIO). Sanghavi has served as the Head of Equi-
Dewan Housing Finance Corp Ltd ties at Canara Robeco Mutual Fund. According to sources,
(DHFL) Sanghvi will take the responsibility of both equity and debt in-
likely vestments of the AMC from November 1.
to buy In accordance with the sources, Krishna Sanghvi will be looking
back after specifically the Mahindra Kar Bachat Yojana, which is an
bonds Equity Linked Saving Scheme (ELSS). Investments in ELSS qualify for tax deduc-
held by tions of upto Rs. 1.5 lakh under Section 80C of the Income Tax Act. He will also
mutual be instrumental in managing the Mahindra Unnati Emerging Business Yojana, a
funds at a discount to ensure near
mid cap scheme.
unanimity among lenders and allow
an exit to those unwilling to be a Before this, Sanghvi was associated with the Canara Robeco AMC as Head of
part of the banks-led resolution pro- Equities. He was managing or co-managing some of the flagship schemes of the
cess. fund house, including Canara Robeco SmallCap Fund, Canara Robeco Emerging
Equities, Canara Robeco Consumer Trends Fund, Canara Robeco Tax Saver Fund,
Big banks that are driving the reso- Canara Robeco Equity Diversified Fund, Canara Robeco Equity Blue Chip Fund,
lution process as part of the RBI cir-
Canara Robeco Infrastructure Fund and Canara Robeco Equity Hybrid Fund.
cular dated June 7, are keen to have
MFs on board to ensure smooth pas- Aditya Birla Sun Life Mutual Fund introduces banking
sage for the plan proposed by the
DHFL management. ETF
While banks and other lenders can Aditya Birla Sun Life AMC has recently introduced Aditya Birla Sun Life Banking
garner the support of about three- ETF, an open-ended exchange traded fund (ETF) track-
fourths of the lending entities even ing Nifty Bank Index. Lovelish Solanki, Fund Manager,
without the backing of mutual funds, Aditya Birla Sun Life Mutual Fund will manage Aditya
they want to avoid legal tangles that Birla Sun Life Banking ETF. The fund will have zero
may crop up later. entry or exit load and the units of the scheme can be
bought or sold from the exchanges on all trading days
Also, some of the lenders such as in- at prevailing listed price. The minimum application
surance and pension funds — which
amount for this fund is Rs 5,000, and in multiples of Rs 1,000, thereafter, during
had initially approved the banks-led the NFO period.
intercreditor agreement (ICA) — are
said to be having second thoughts. "Nifty Bank has outperformed and been a lead sector performer compared to
broader indices across all time frames. NPAs seem to have bottomed out for the
“We have heard of such an offer, but sector and profits are expected to rise as reflected in the earnings estimate of CY2019
it has not reached us yet. Once we and CY2020. The government too has taken multiple steps to inspire market confi-
receive an offer, we will evaluate it,” dence and stimulate growth by way of liquidity infusion, corporate tax cut, PSU bank
said a mutual fund manager involved consolidation and recapitalization. These measures augur well for the banking sec-
in the process. tor and its performance. Aditya Birla Sun Life Banking ETF is a great addition to our

The embattled home financier re- bouquet of ETF offerings which already has Nifty, Nifty Next 50, Sensex & Gold ETFs",
ceives about Rs 2,400 crore from its said A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC.
borrowers every month via EMIs "ETFs are the funds listed and traded on stock exchanges like shares. Due to
(equated monthly instalments). This the unique structure of ETFs, all types of investors, whether retail or institu-
money can be used to buy back tional, long-term or short-term, can use it to their advantage. Investors can
bonds. DHFL did not reply to an email complement their core equity portfolio with this kind of a financial instrument",
from ET seeking comments. added Balasubramanian.

16 | 2019 | NOVEMBER | BANKING FINANCE