Page 16 - Banking Finance October 2022

MUTUAL FUND

According to the press release, the in- is up 5 per cent this calendar, announced the launch of Aditya Birla
dices underlying the Smart Beta ETFs - underperforming BSE Bankex's 13 per Sun Life Turbo Systematic Transfer Plan
the NIFTY100 Quality 30 TRI, NIFTY50 cent rise during the same period. (Turbo STP). It is a facility, in which the
Value 20 TRI and NIFTY Growth Sec- unitholders can opt to transfer variable
Mutual funds also bought shares of
tors 15 TRI - generated higher average amounts from a source scheme to a
Max Healthcare, which was down 11
rolling returns over 1, 3, 5 and 10 year target scheme, at defined intervals.
per cent till August. This scrip had seen
horizons compared to the NIFTY 100
a sharp rise in September that helped According to the fund house, the vari-
and NIFTY 50 TRI.
it cut year-to-date losses to 4 per cent. able or actual amount of transfer to
"Smart Beta investing is popular glo- The additional 1.95 crore shares that the target scheme via the turbo STP
bally with AUM rising steadily. HDFC MF bought in this healthcare company will be determined based on the results
AMC is happy to expand index solution were valued at Rs 756 crore. from an in-house model which helps
offerings for investors that are backed ascertain market valuation. The model
by empirical research. Smart Beta ETFs tracks technical and fundamental pa-
Inflows in equity mutual
offer one-shot diversification of portfo- rameters like valuation ratios, trend
funds sink to 10-month
lio at a low cost, and is proven tool for ratios and volatility ratios, to arrive at
investors who seek returns over the low an Equity Valuation Multiplier (EVM).
long-term. The fund house has 20 years This value helps determine the actual
Retail investors were cautious in allo-
of experience in managing passive amount to be transferred based on the
cating money to equity mutual funds
funds, which comes with highly disci- pre-selected STP base amount.
in August as the sharp rebound in the
plined and robust Investment and Risk
stock market saw valuations jump, "Turbo STP is a facility for those mar-
Management policies and processes,"
seeing flows into equity mutual funds ket participants having lumpsum
said Navneet Munot, Managing Direc-
in August slowing to Rs 6,120 crore amount to invest and are confronted
tor and Chief Executive Officer, HDFC
compared from July's Rs 8,898 crore, with issues regarding market valua-
Asset Management Company.
according to data released by Associa- tions, whether they are alluring or
tion of Mutual funds in India (AMFI). costly, and the amount they ought to
Mutual funds cut stake in
This is the lowest inflow equity funds contribute and for what tenure. It will
RIL, Infy & TCS to buy from have witnessed in the last 10 months. help invest more at attractive market
valuation levels and less when valua-
varied sectors However, flows into mutual funds
tions are expensive," said A
through the monthly systematic invest-
Mutual funds were seen trimming Balasubramanian, Managing Director
ment plans (SIPs) rose to Rs 12,693
stakes in the bluest of blue chips,
crore, much higher than the previous & CEO, Aditya Birla Sun Life AMC.
namely Reliance Industries, Bharti
month's Rs 12,140 crore, suggesting
Airtel, Infosys and TCS, among others,
investors were more comfortable Sundaram Flexi Cap Fund
while they were seen buying into many
spreading their bets on equities after
catch-up plays from varied sectors. NFO collects Rs 1,679 crore
the recent gains.
Among them is Sona BLW Precision, a Sundaram Mutual's, Sundaram Flexi
Mark to market gains in equity mutual
components manufacturer, where do- Cap Fund, has garnered Rs 1,679 crore
funds along with inflows of Rs 49,164
mestic fund managers bought an ad- in its NFO period, said the fund house.
crore into debt mutual funds saw the
ditional 3.62 crore shares to take the A total of 71,720 investors participated
MF holding to 11.96 crore shares in industry's assets under management in the NFO. The NFO was open for sub-
August from 8.33 crore shares in July, touch an all-time high of Rs 39.53 lakh scription between August 16 and Au-
valuing Rs 1,892 crore. This stock is crore. gust 30. The fund house said that this
down 27 per cent year-to-date. is the second largest New Fund Offer
Kotak Mahindra Bank, fund managers Aditya Birla Sun Life Mu- in Sundaram Mutual's 25+ years his-
tory.
held 18.09 crore shares against 17.65
tual Fund launches Turbo
crore shares, up 44 lakh shares month- Sundaram Flexi Cap is an open-ended
on-month (MoM). The change in value Systematic Transfer Plan equity scheme with the ability to invest
terms stands at Rs 845 crore. This scrip Aditya Birla Sun Life Mutual Fund has across sectors in large, mid and small
16 | 2022 | OCTOBER | BANKING FINANCE