Page 17 - Banking Finance November 2022

MUTUAL FUND

As per the industry data, the top con- heavyweights ICICI Bank, HDFC Bank, tion of the acquisition, the schemes of
tributing states towards the industry's Infosys and Reliance Industries, shows the mutual funds operated by L&T
Rs 39.5 lakh crore assets under man- latest data. Mutual Fund will be transferred to
agement (AUM) are - Maharashtra, HSBC Mutual Fund or will be merged/
The top 10 most popular stocks among
New Delhi, Gujrat, and Karnataka. consolidated with identified schemes of
mutual fund managers comprise about
Also, there is a strong traction of inves- the mutual fund of HSBC or vice-versa.
35% of the industry's equity assets un-
tors from smaller towns investing in The sponsorship, trusteeship, manage-
der management (AUM).
mutual funds. ment, and administration of the L&T
Topping the list is private lender ICICI Mutual Fund will be correspondingly
Bank. Domestic fund managers have changed.
SEBI orders rating agency
placed bets worth Rs 1.4 lakh crore on
brickwork to shut down the stock, worth 6.7% of industry's
HDFC Mutual Fund
Markets regulator Sebi has cancelled equity AUM.
the licence of credit rating agency launches HDFC Silver ETF
The second most popular stock among
Brickwork Ratings for multiple lapses domestic MFs is India's largest private Fund of Fund
and has ordered the company to close
sector lender HDFC Bank, on which Rs HDFC Mutual Fund has launched HDFC
its operations within six months. Brick-
1.16 lakh crore is riding. Infosys, on the Silver ETF Fund of Fund. HDFC Silver
work, founded by banking and former
other hand, is not just the third larg- ETF FOF is an open-ended Fund of Fund
credit rating agency professionals, is
est bet but also the only IT stock to
scheme investing in HDFC Silver ETF.
one of the seven such agencies regis-
feature in the top 10 list. MFs have Investment options like SIP, STP are
tered with Sebi. According to its
placed bets worth Rs 90,577 crore.
available.
website, Canara Bank is a promoter
The investment objective is to seek
and a strategic partner.
HSBC Mutual Fund re-
capital appreciation by investing in
The markets regulator, in an order
ceives SEBI approval to ac- units of HDFC Silver ETF. Investing in
signed by member Ashwani Bhatia,
physical silver and storing it in a safe
also said the agency that it cannot take quire L&T MF
manner could be difficult for an indi-
on any fresh business. HSBC Asset Management (India) has
vidual, hence HDFC's Silver ETF FOF
received approval from the Securities
Sebi's crackdown on rating agencies NFO gives an opportunity to the inves-
and Exchange Board of India (SEBI) to
began after Infrastructure Leasing & tors to get exposure to silver through
fully acquire L&T Investment Manage-
Finance Services (IL&FS) collapsed in mutual funds, thereby eliminating the
2018. One of the allegations against ment Limited (LTIM), subject to certain need to store silver physically.
conditions and approval. LTIM is a
rating agencies was that they did not
wholly-owned subsidiary of L&T Fi- "HDFC AMC believes in understanding
respond to risk build-up and
the consumers' needs and aims to of-
nance Holdings Limited (LTFH) and the
overleveraging in the company.
fer them easy and effective solutions
investment manager of L&T Mutual
for investments. The HDFC Silver ETF
Fund.
Nearly Rs 5 lakh crore of
FOF will provide investors the opportu-
According to AMFI data, L&T MF has
mutual fund money riding nity to invest in silver which serves dual
average assets under management
utilities of being a precious metal and
on these 10 stocks (AAUM) of Rs 717.03 billion and over
an industrial commodity," Navneet
2.2millionn active folios as of Septem-
Mutual fund managers have placed Munot, Managing Director and Chief
ber, 2022,
heavy bets totaling around Rs 4.75 lakh Executive Officer, HDFC Asset Man-
crore on 10 stocks which includes Nifty According to HSBC MF, upon comple- agement Co.
BANKING FINANCE | NOVEMBER | 2022 | 17