Page 17 - Banking Finance April 2019

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Shariah compliant mutual funds in India
Mutual funds collect Rs
Taqwaa Advisory And Shariah Investment Solutions (TASIS) has approved only
two Sharia-compliant mutual funds in India: Tata Ethi- 8,095 crore via SIP in Feb-
cal Fund and Taurus Ethical Fund. The schemes will ruary
invest in only securities which are Shariah compliant
and follow principles of Shariah in the selection of Mutual funds received Rs 8,095 crore
of its assets
portfolio stocks it is dealing for investors keen to in-
vest in a diversified equity fund without banking and through SIP
finance exposure or any business, sector which is prohibited in Islam. Besides in February
these two, Reliance Shariah Bees ETF is also considered as Sharia compliant ETF. 2019, 26 per
cent higher
Tata Ethical Fund is an open-ended equity fund which invests in a diversified eq- year-on-
uity portfolio based on principles of Shariah. TATA AMC is a part of one of the
most trusted and valued brands in India; Tata Mutual Fund has earned the trust year, shows data from AMFI. Mutual
funds collected Rs 8,064 crore
of lakhs of investors with its consistent performance and best in class services.
through SIPs in January 2019.
Tata Mutual Fund offers an investment option for everyone, whether you are a
businessman or salaried professional, a retired person or housewife, etc. Tata Asset "Amid global uncertainty, tension at
Management Limited (TAM) is the Investment Manager to Tata Mutual Fund. the border, liquidity tightness and
credit events, retail investor
Mutual funds can pay commission upfront on the first SIP behaviour to stay invested is quite
The Securities and Exchange Board of India (Sebi) has allowed mutual funds to heartening. The continued healthy
pay a portion of the trail commission upfront to distributors confidence that retail investors are
for systematic investment plans (SIPs). The regulator said trail showing, as is reflected in rising num-
commissions for SIPs of up to 3,000 per month, per scheme, ber of SIP inflows is laudable. The
for an investor who is investing for the first time in mutual patience to stay invested amid un-
fund schemes, can be paid upfront to distributors. certainty, will help from the indi-
vidual long term wealth creation
Only the first SIP purchased by the investor shall be eligible for upfront commis-
sions, Sebi said. In case of multiple SIPs being purchased on different dates, the perspective. Once political uncer-
SIP for which the installment starts on the earliest date shall be considered for tainty and liquidity tightness recedes
over the next few months, we expect
upfront fees. At present, fund houses are allowed to charge an additional TER of
30 basis points for getting business from retail investors from beyond the top 30 the inflows in both equity and liquid
funds to strengthen further," says N.
cities. The regulator has clarified that only inflows of up to 200,000 per transac-
tion by individual investors shall be considered as inflows from retail investors. S. Venkatesh, CEO, AMFI.

BANKING FINANCE | APRIL | 2019 | 17