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-
BANKING FINANCE | DECEMBER | 2024 | 17