Page 16 - Banking Finance December 2022

MUTUAL FUND

the Nifty Financial Services Ex-Bank achieved its highest monthly record of ening has resulted in a spike in yields,
Index. The scheme will invest in the top 2.10 crore transactions in October offering value amidst the volatility. The
30 companies of the financial services 2022 as against its previous high of SDL strategy provides a relatively
sector except banks, based on free 2.08 crore transactions in September higher yield compared to G-Sec and
float market capitalization from Nifty 2022. PSU AAA bonds.
500 Index.
BSE StAR MF processed a record 34.29 Given the upward yield shift in the 3-5
Nifty Financial Services Ex-Bank Index lakh transactions on October 10 versus year and 10-year maturity bucket, we
is relatively less volatile than Nifty Bank its previous record of 32.48 lakh trans- believe IDFC CRISIL IBX 90:10 SDL Plus
Index across all time frames. The index actions (on 12th September 2022). The Gilt- November 2026 Index Fund and
has outperformed both Nifty 50 index platform also contributed 10.49 lakh IDFC CRISIL IBX 90:10 SDL Plus Gilt-
and Nifty Bank index over the last 10 new SIP registrations achieving 53% of April 2032 Index Fund could provide an
years. industry's new SIP registrations of attractive investment opportunity. In
"Financial Services have a huge contri- 19.73 lakhs in October 2022. This our opinion, investors could derive
bution in the Indian economy becom- means that every second SIP being value from this strategy, given that we
added to the industry is through the are in the last leg of the rate hike
ing one of the fastest growing major
economies of the world. There is an BSE StAR MF platform. cycle. The funds are well-positioned to
benefit from the market opportunity,
increasing participation from all parts BSE StAR MF has achieved a growth of
making this launch very timely," said
of the society in Credit, Investments 76% in transactions over the previous
Gautam Kaul.
and Insurance and as a result the sec-
FY 22. It has achieved 13.96 Cr. trans-
tor is poised to witness an unprec-
actions in FY 23 of 18.47 Cr. transac-
edented boom. HDFC Mutual Fund laun-
tions in FY 22. The platform's MF Dis-
We are also in the middle of a digital tributor network has seen a multifold ches HDFC Business Cycle
revolution that has contributed to the increase to 73,719 distributors (as on
Fund
growth of financial services companies October 2022). Distributors have pro-
HDFC Asset Management Company
who are adapting to this change cessed over 86.14 lakh transactions
has launched HDFC Business Cycle Fund
faster. The sector is on rise and the through the BSE StAR MF mobile app
which aims to invest in businesses likely
road thus far has been paved by vari- since its launch, of value worth Rs
on the cusp or in the midst of a
ous reforms, FDI policy relaxation, tax 24,555 Cr as on October 22.
favourable business cycle.
exemptions, etc. which will further
encourage the industry to spend on According to the fund house, the fund
IDFC Mutual Fund launches
expansion. Investors must tap into this will manage risks by being adequately
two target maturity funds
universe of companies and gain from diversified across sectors / sub sectors
their growth through ICICI Prudential IDFC Mutual Fund has launched IDFC / market cap, and across a number of
Nifty Financial Services Ex-Bank ETF," CRISIL IBX 90:10 SDL Plus Gilt- Novem- stocks. It is therefore a well-diversified
says Chintan Haria, Head- Product ber 2026 Index Fund and IDFC CRISIL fund suitable for long term investments
Development & Strategy, ICICI Pru- IBX 90:10 SDL Plus Gilt- April 2032 In- via both lumpsum and SIP. The busi-
dential AMC. dex Fund, open-ended Target Maturity ness cycle investing may gain from dual
Index Funds that will invest in constitu- benefits of earnings growth and im-
BSE StAR MF contributes ents of CRISIL IBX 90:10 SDL plus Gilt provement in valuations. In business
Index- November 2026 and CRISIL IBX cycle investing, one needs an agile in-
47% of net equity inflow,
90:10 SDL plus Gilt Index- April 2032 vestment strategy that dynamically
53% of new SIPs in October respectively. rotates investments based on assess-
ment of stages of business cycles.
BSE StAR MF has said that it has con- The funds will be managed by Gautam
tributed 47% of the net equity inflow Kaul and will invest in a mix of state "In an era marked by increasing com-
into mutual funds in October. The plat- development loans and gilt securities. plexities and shortening of business
form contributed Rs 4,397 crore of MF "The recent increase in market expec- cycles, positioning portfolios well
investments in October. BSE StAR MF tation of further monetary policy tight- should be a rewarding activity. HDFC

16 | 2022 | DECEMBER | BANKING FINANCE