Page 18 - Banking Finance March 2022

MUTUAL FUND

USD 1 billion per mutual fund, within not incorporating the clauses pertain- "We have seen investors now being
the overall industry limit of USD 7 bil- ing to its tool to pick stocks in the more mature and willing to continue
lion," Sebi had said. scheme information document (SID) of their SIPs despite market ups and
the new fund offer (NFO). downs. Investors who have come in
Mutual fund distributor The Securities and Exchange Board of over last 4-5 years have seen the ben-
efits of staying invested in equities and
launches Rs. 100 daily SIP India has also asked the fund house to see through market volatility," says
change its "Stress Tested Mutual Fund"
for people in rural areas tagline. Neil Parikh, chief executive officer of
PPFAS MF.
Mutual fund distribution platform, Existing unit holders have the option to
ZFunds, introduced the launch of Rs. exit the scheme before February 24 The stock markets have been volatile
100 daily mutual fund SIP, which is and this may be holding back some in-
without any exit load and the regula-
conceptualised particularly for people tor has directed the fund house to pay vestors from opening fresh SIP ac-
residing in rural areas and small cities. counts.
interest at the rate of 15% a-year to
The initiative is launched in collabora- such unit holder from the date of clo- "The surpluses with investors tend to
tion with ICICI Prudential Mutual Fund, sure of the NFO till date of the pay- be low around Jan-March period as
HDFC Mutual Fund, and Tata Mutual ment. they are making their tax-planning
Fund, ZFunds mentioned in a press re- investments in equity linked saving
The fund house launched the NFO of its
lease. schemes or insurance policies. So, fresh
maiden scheme, Samco Flexi Cap Fund,
Also, the corporate is in talks with a last month. The stock pick is based on account opening numbers can fluctu-
number of different fund homes to an in-house proprietary investment ate depending upon market conditions
counterpoint its product suite. framework, called the Hexashield and other factors, what is important is
to see the SIP contributions coming
Through this providing, ZFunds goals to Framework, which shortlists compa- into the industry," points out Rajiv
deal with the necessity hole current in nies on six parameters: competitive
Shastri, chief executive officer of NJ
tier-2, tier-3 and tier 4 cities the place strength and pricing power, balance MF.
people earn on a daily foundation as a sheet and insolvency, reinvestment
substitute of getting a month-to- and growth, corporate governance The monthly SIP contributions to mu-
month earnings. and leadership, cash flow and regula- tual fund industry has been growing
The funding quantity as little as Rs. 100 tory compliance. steadily. In January, monthly SIP con-
tributions stood at Rs 11,516 crore,
will assist daily wage earners and small which was about two percent higher
enterprise house owners to begin their Mutual fund industry than previous month.
funding journey from their daily earn- crosses five-crore-SIPs-
ings, ZFunds mentioned. Financial planners say that it is impor-
mark for the first time tant that investors continue their SIPs
Within a brief span of time, ZFunds has
registered greater than 3,000 daily The systematic investment plans (SIPs) during market volatility.
systematic funding plans (SIPs) on its in mutual fund (MF) industry crossed "SIPs give investors the benefit of ru-
platform and goals to achieve 1 lakh the five crore-mark in January even as pee cost averaging. So, when markets
daily SIPs by finish of FY23. market volatility pulled back the inves- correct investors accumulate higher
tor flows received by equity schemes. number of units at lower prices and
Sebi pulls up Samco MF for The MF industry saw 26 lakh new SIPs when markets rally they fetch lesser
calling its scheme a 'pure' being opened in January, showed AMFI units at higher price in the same SIP,"
says Amol Joshi, founder of Plan Rupee
data. This was higher than the average
equity fund 24 lakh SIPs added by industry in past Investment Services.
The capital markets regulator has five months, industry executives say This helps investors to keep their aver-
pulled up Samco Mutual Fund, a new the long-term trends indicate that in- age buying price lower and also allows
entrant to the market, for calling its vestors now understand the impor- them to build a large corpus over time
maiden scheme a pure equity fund and tance of SIPs. through staggered investments. T

18 | 2022 | MARCH | BANKING FINANCE