Page 12 - Banking Finance September 2023

MUTUAL FUND

Mutual Fund

News

Mutual funds launch tech tion by investing predominantly in eq- high level of liquidity, through invest-
uity and equity related securities of ments made primarily in debt and
funds as IT sector bleeds
technology & technology related com- money market securities having matu-
Mutual fund houses are often criticised panies. rity of 1 business day including TREPS
for launching schemes that track (Tri-Party Repo) and Reverse Repo.
The minimum application amount for
themes and sectors that have done
purchase / switches is Rs 100 and any The scheme will have a regular and a
better in the recent past. Such a strat-
amount thereafter. The scheme will in- direct plan with both growth and IDCW
egy attracts significant inflows, as inves-
vest 80-100% in equity and equity re- options. The scheme will allocate its
tors are willing to write cheques based
lated instruments of technology & tech- assets up to 100 % in debt, money mar-
on past performance. However, this
nology related companies, 0-20% in ket instruments, cash and cash equiva-
time, mutual fund houses are launching
equity and equity related instruments of lents (including repo) with overnight
schemes focusing on the information
companies other than technology & maturity / maturing on or before the
technology (IT) sector, which is not in
technology related companies, 0-10% in next business day, and 0-5% in G secs
the best of health. In the last year
units of REITs and InvITs, 0-20% in debt and/or T bills with a residual maturity
ended August 21, 2023, technology sec-
securities, money market instruments of up to 30 days. The scheme falls un-
tor funds have given 5.06 percent re-
and fixed income derivatives, and 0- der the 'low' risk category.
turns compared to 18.12 percent given
20% in units of mutual fund.
by multicap funds, as per Value Re-
Quant Mutual Fund
search.
Helios Mutual Fund files
launches Quant Teck Fund.
HDFC Mutual Fund draft for overnight fund Quant Mutual Fund has launched Quant
Helios Mutual Fund has filed a draft for Teck Fund, an open-ended equity
launches HDFC Technology
an overnight fund. Helios Overnight scheme investing in technology-centric
Fund Fund will be an open-ended debt companies.
HDFC Mutual Fund has launched HDFC scheme investing in overnight securi-
The performance of the scheme will be
Technology Fund, an open-ended equity ties.
benchmarked against S&P BSE TECk
scheme investing in technology & tech-
The scheme will be benchmarked TRI. Sandeep Tandon, Ankit Pande,
nology-related companies.
against the CRISIL Liquid Overnight In- Sanjeev Sharma, and Vasav Sahgal will
The performance of the scheme will be dex. Alok Bahl will manage the scheme. manage the scheme.
benchmarked against S&P BSE Teck In-
According to the scheme information According to the scheme information
dex.
document, the investment objective of document, the investment objective of
The investment objective of the scheme the scheme is to generate returns com- the scheme is to generate consistent
is to provide long-term capital apprecia- mensurate with low risk and providing returns by investing in equity and equity-
12 | 2023 | SEPTEMBER | BANKING FINANCE