Page 21 - Banking Finance July 2023

MUTUAL FUND

Mutual Fund

India fund managers buy Funds have also remained active buy- HDFC Mutual Fund
ers of T-bills at primary auctions, mar-
T-bills, dump bonds as launches HDFC Non-Cycli-
ket participants said, as they look to
early rate cut chances van- maximise their returns by adjusting cal Consumer Fund
their portfolios. HDFC Mutual Fund has announced the
ish
"Mutual funds have booked profits by launch of HDFC Non-Cyclical Consumer
Indian mutual funds will swap their
selling long bonds and reducing the Fund that intends to invest across
government bond holdings for shorter-
India's consumption categories with a
interest rate risk in the portfolios," said
dated treasury bills since the hawkish
Sandeep Bagla, CEO of Trust Mutual bottom-up stock selection approach
commentary from most major central
for portfolio construction.
Fund.
banks has ruled out rate cuts in the
near future, fund managers said. The fund will invest in a core of the
DSP Mutual Fund launches portfolio (at least 80%) of stocks that
"After the focus on inflation from the
represent the non-cyclical consumer
U.S. and the Indian central bank, rate DSP NIFTY IT ETF
cuts are out of the picture for the time theme within the basic industries like
DSP Mutual Fund has launched DSP Consumer Goods, Consumer Services,
being and in such a scenario, three-
Nifty IT ETF, an open ended scheme Telecom, Healthcare, Media, Enter-
month Tbills is the safest bet," said
replicating/tracking Nifty IT Index. tainment and Publication. The universe
Raju Sharma, head of fixed income at
for this theme is diverse - with 300+
The performance of the scheme will be
IDBI Mutual Fund.
companies having market caps more
benchmarked against Nifty IT TRI. The
Mutual funds have sold a net 124 bil- than Rs 500 crores. The fund will invest
scheme will be managed by Anil
lion rupees ($1.51 billion) worth of gov- across market cap segments
Ghelani and Dipesh Shah.
ernment bonds from June 8 to June 22,
(largecaps, midcaps and smallcaps),
while purchasing T-bills worth over 256 The investment objective of the
and diversify within consumer sectors
billion rupees in the secondary market, scheme is to provide returns that, be-
and sub sectors.
Clearing Corp of India data showed. fore expenses, correspond to the total
Navneet Munot, Managing Director
return of the underlying index (Nifty IT
During this period, the Reserve Bank and Chief Executive Officer, HDFC Mu-
TRI), subject to tracking errors.
of India held rates steady again but
tual Fund, said, "As India moves further
signaled monetary conditions will re- The scheme will invest around 95-
into Amritkaal, the consumption sector
main tight, and while the Federal Re- 100% in equity and equity-related se-
finds itself at an inflection point. Aided
serve also held steady, it said rates will curities of companies constituting Nifty by factors such as India's GDP per
have to increase another half percent- IT Index, the underlying index and 0- capita surpassing US$2000, themes
age point by year's end. 5% in cash and cash equivalents. including Demographic Dividend,
BANKING FINANCE | JULY | 2023 | 19