Page 19 - Banking Finance December 2018

U UA UN

B M t a n a n hes art Beta
B p ans to a e i i
B M t a nd has a nched B a it its first s art eta offerin . t is
t a f n s safer
an open ended f nd that i e trac in ift 2 a it
inde . he f nd o d e in estin a ini of e i is p annin to introd ce to her
per cent in the co panies nder ift 2 a it r es to
ran ed their a it scores hi e the resid a per cent p r o t e c t
i e in ested in one ar et instr ents. ccordin in estors
to the research paper p ished ndices ift 2 in i id
a it inde inc des top co panies fro its parent f n d s
ift 2 inde se ected ased on their a it scores. the ost
asic offerin in the t a f nd
he a it score for each co pan is deter ined ased on ret rn on e it
as et fro credit ris . Ret rn o er
R financia e era e e t it Ratio and earnin ro th aria i
safet i id f nds a o in estors to
it ana ed d rin the pre io s fi e ears. he ei ht of each stoc in the in
par one for a short period hi e
de is ased on the co ination of stoc s a it score and its free f oat ar
ass rin eas i idit and hi h
et capita i ation. he inde is re a anced se i ann a . ift 2 a it
safet . n estors can redee their
portfo io has o tperfor ed its parent 2 inde in ost ca endar ears.
one on the ne t siness da
n the ca endar ear asis fro 2 to 2 ift 2 a it portfo io
asis .
has o tperfor ed ift 2 in o t of ca endar ears and ift in o t
of ca endar ears. e era i id f nds a so offer instant
rede ption of p to Rs a da .
s s are isted on the e chan e costs of distri tion are ch o er and the
he safet aspect arises fro the po
reach is ider. hese sa in s in cost are passed on to the in estors in the for
sitionin of i id f nds in er short
of o er costs. rther ore e chan e traded echanis he ps red ce ini
ten re onds hich are not af
a co ection dis rse ent and other processin char es. he str ct re of s
fected roader ond ar et f c
is s ch that it protects on ter in estors fro inf o s and o tf o s of short
t ations. hese f nds can on in est
ter in estors. his is eca se the f nd does not ear e tra transaction cost
in instr ents earin at rit of p
hen in se in d e to fre ent s scriptions and rede ptions.
to da s. his ens res that f nd
M t a f n fo io n ers in reases to rore ana ers do not carr nnecessar
Risin in estors interest in t a f nd has ed to an addition of near 77 a h interest rate ris s.
ne fo ios in the first se en onths of the c rrent fisca he f nds sit at the near otto of
ta in the tota to an a ti e hi h of aro nd crore at the ris raph for ond f nds o er
the end of cto er. his fo o s an addition of . crore ni ht f nds are a notch safer offer
acco nts in 2 7 fisca o er 7 a h fo ios in 2 7 in in estors ret rns si i ar to a
and a h in 2 . an fi ed deposit. hi e i id f nds
o ios are n ers desi nated to indi id a in estor acco nts tho h an in es are ost tapped instit tions fi
tor can ha e tip e acco nts. ccordin to the data fro ssociation of M nancia p anners ad ise indi id a s to
t a nds in ndia fi on tota in estor acco nts ith acti e p a ers the par their s rp s one in the so
n er of fo ios rose to a record 7 at the end of cto er this ear that id e cash can earn ore than
p fro 7 7 at the end March 2 re isterin a ain of 7 . a h. hat the o d fro a sa in s ac
co nt.
er the ast fe ears in estor acco nts ha e increased fo o in ro st con
o e er the r es are si ent on the
tri tion fro retai in estors especia fro s a er to ns and h e inf o s
in e it sche es. o ios in e it and e it in ed sa in sche es re e tent of credit ris these f nds can
a h to crore. Besides fo ios in a anced cate or s r ed . a h to ta e. nd ana ers can se
o er a h d rin the period nder re ie . rther fo ios in inco e f nds rose their discretion to in est in hi her
. a h to . crore. era t a f nds ha e seen an inf o of o er Rs ie d instr ents of iss ers hose re
crore d rin pri cto er period of the c rrent fisca 2 hi e pa ent capa i it a not e ro
e it sche es a one attracted an i pressi e inf o of o er Rs 7 crore. st.

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