Page 22 - Banking Finance July 2023

MUTUAL FUND

Premiumization, Formalization, and through a notice cum addendum. The schemes are cheaper compared to the
Digitization which are expected to new facility will offer investors the op- regular plans, which include a commis-
drive growth in this sector." tion to change SIP instalment date, SIP sion paid to distributors. This resulted
end date, frequency, amount of SIP, in mushrooming of several online plat-
SIP closures rise 7.4 per- and the option without cancelling the forms that provide the facility of invest-
existing registered SIP. The fund house ing in direct plans.
cent month-on-month in
has announced this facility with a view
May to provide more convenience and flex- DSP Mutual Fund files
ibility to the investors.
The number of systematic investment
draft for Multicap Fund
plan (SIP) accounts being discontinued This feature will avoid all the cancella-
DSP Mutual Fund has filed a draft for
rose 7.4 per cent month-on-month to tions and re-registrations of SIPs in-
a multicap fund. DSP Multicap Fund
14.19 lakh in May, despite the stellar volved during different stages of the
will be an open-ended equity scheme
inflow into mutual funds through the SIP modification process. In case the
investing across large cap, mid cap,
route. At the same time, the number investor wants to modify the scheme
small cap stocks.
of new SIP registration rose to 24.7 name, then the existing SIP will be
The scheme will be benchmarked
lakh last month from 19.56 lakh in ceased and the new SIP will be regis-
against Nifty 500 Multicap 50:25:25
April, implying fresh registration of tered under the same folio.
TRI. The scheme will be managed by
over 5 lakh, data with the Association
Mirae Asset Mutual Fund has an-
Chirag Dagli, Jay Kothari (fund man-
of Mutual Funds in India (AMFI)
nounced an addendum to the scheme
showed. ager for overseas investments)
information documents (SIDs) / key in-
The investment objective of the
The higher number of SIP registration formation memorandums (KIMs) cum
scheme is to seek to generate long-
than discontinuation shows investors' common application forms of all the
term capital appreciation from a port-
continued confidence in the route, DP scheme(s) as amended from time to
folio of equity and equity related secu-
Singh, Deputy MD and CBO at SBI time.
rities across market capitalization.
Mutual Fund, said.
According to the scheme information
This could also be due to an easy can- Sebi comes out with
document, the minimum application
cellation facility available through
framework for execution- amount will be Rs 100 and any amount
online modes, he added.
only platforms for invest- thereafter. The minimum installment
Meanwhile, investors continued to park
amount for SIP/SWP/STP will be Rs 100
their money in mutual funds, with con- ing in direct MF schemes
and any amount thereafter. The
tributions in SIPs reaching a new high Sebi introduced a regulatory frame- scheme's riskometer shows that the
of Rs 14,749 crore last month, after a work for 'Execution Only Platforms' for scheme will fall in the 'very high risk'
brief dip to Rs 13,728 crore in April. It direct plans of mutual fund schemes in category.
was Rs 14,276 crore in March. a bid to protect the investors dealing
The scheme will have a regular and a
This robust inflow has led to assets in such schemes. The execution-only direct plan with growth and IDCW op-
under management of SIP rising by five platform allows transactions in direct
tions. The scheme will allocate its as-
per cent to Rs 7.53 lakh crore last plans of mutual funds without the help
sets of around 75-100% in equity and
month from Rs 7.17 lakh crore in April. of distributors. equity related securities, 0-25% in eq-
The new framework would be appli- uity and equity related overseas secu-
Mirae Asset Mutual Fund cable from September 1, the Securities rities, 0-25% in debt and money mar-
and Exchange Board of India (Sebi) said ket instruments, and 0-10% in units is-
introduces new SIP modi-
in its circular. sued by REITs & InvITs.
fication facility Over the past few years, direct plans The portfolio construction will be
Mirae Asset Mutual Fund has intro- of mutual fund schemes have gained based on a “bottom up” approach as
duced a SIP modification facility traction among investors as such well as a “top down” approach.
20 | 2023 | JULY | BANKING FINANCE