Page 19 - Banking Finance December 2024
P. 19

MUTUAL FUND

         LIC Mutual Fund reduces

         minimum SIP limits
         LIC Mutual Fund has reduced the daily
         Systematic  Investment  Plan  (SIP)
         amount to Rs 100 and in multiples of
         Re 1 thereafter for select schemes
         managed by the fund house. LIC MF has                                             Ò»©­
         also introduced a daily SIP plan in LIC
         MF Liquid Fund effective from October
         16.
         The fund house informed about this to
         its unitholders through a notice-cum-
         addendum.
         Further, the AMC has reduced  the    SEBI amends AIF rules for investors
         monthly minimum SIP investment limit
                                              Markets regulator Sebi has amended Alternative Investment Funds (AIF)
         to Rs 200 and quarterly minimum SIP
         investment limit to Rs 1,000 for select  rules directing them to grant investors' rights in investment and distribu-
         schemes of LIC Mutual Fund.          tion of proceeds in proportion to their commitments in a scheme.
                                              In simple words, risks as well as rewards from investments made by an AIF
         Mid-and  small  cap  MFs             scheme need to be shared in proportion to investors' contributions to the
                                              scheme.
         attract Rs. 30,350 crore in
                                              This is aimed at clarifying the regulatory intent of AIFs' being pooled invest-
         H1                                   ment vehicles and ensuring fair and equal treatment of investors of an AIF.
         Mid-cap and small-cap mutual funds   In a notification issued on November 18, the markets watchdog said, "The
         attracted inflows of approximately Rs  investors of a scheme of an AIF shall have rights, pro-rata to their commit-
         30,350 crore during the first half of the  ment to the scheme, in each investment of the scheme and in the distribu-
         current financial year, indicating strong  tion of proceeds of such investment, except as may be specified by the Board
         investors interest, primarily due to  (Sebi) from time to time."
         impressive returns delivered by them.

         The data showed that mid-cap funds  Union      Mutual        Fund     tal appreciation by investing in stocks
         received an inflow of Rs 14,756 crore,                                showing strong momentum. Momen-
         while small-cap funds attracted Rs launches  NFO  of  active          tum stocks are such that exhibit rela-

         15,586 crore in the first half of FY25,  momentum fund                tively superior price momentum - based
         totalling Rs 30,342 crore.
                                            Union Mutual Fund has announced the  on the phenomenon that stocks which
         Mid-cap and small-cap indices have  launch of Union Active Momentum   have performed well in the past relative
         outperformed both the Nifty and large-  Fund, an open-ended equity scheme  to other stocks (winners) continue to
         cap indices this financial year, posting  following momentum theme.   perform well in the future, and stocks
         gains of about 20 per cent and 24 per  The new fund offer or NFO of the  that have performed relatively poorly
         cent, respectively.                scheme will open for subscription on  (losers) continue to perform poorly. The
         In the previous year, the cumulative  November 28 and will close on Decem-  portfolio of stocks will be selected,
         inflow into mid-cap and small-cap  ber 12. The scheme will reopen for  weighted and rebalanced using propri-
         funds amounted to Rs 32,924 crore for  continuous sale and repurchase within  etary screens.
         the same period, as per data from the  five business days of allotment.  The performance of this thematic
         Association of Mutual Funds in India  The investment objective of the scheme  scheme will be benchmarked against
         (AMFI).                            is to seek to generate long-term capi-  Nifty 500 Index (TRI) and will be man-


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