Page 17 - Banking Finance May 2024

MUTUAL FUND

tunities fund. Kotak Special Opportuni- high of 17.78 crore, with the investor ceeding Rs 19,000 crore for two
ties Fund will be an open-ended equity base standing at around 4.46 crore. straight months in February and March
scheme following a special situations AMFI said individual investors domi- this year signal a shift towards a more
theme. disciplined investment strategy among
nated mutual fund categories such as
investors.
The investment objective of the equity, hybrid and solution-oriented
scheme will be to generate long-term schemes with the three categories to- "This disciplined approach is further
capital appreciation by investing pre- gether accounting for nearly 58% of exemplified by the increased prefer-
dominantly in opportunities presented the industry assets and 80% of the fo- ence for equities, driven by their strong
by special situations such as Company lio count as of March 2024. The share performance over the past year, in-
Specific Event/Developments, Corpo- of assets under management of these dicative of investors conducting regu-
rate Restructuring, Government Policy categories has increased from 45% in lar portfolio assessments and adjust-
change and/or Regulatory changes, March 2019. ments," Karthick Jonagadla, small case
Technology led Disruption/ Innovation Debt funds saw moderate growth of Manager and founder, Quantace Re-
or companies going through tempo- around 7% in FY24 to close with assets search, said.
rary but unique challenges and other of 12.62 lakh crore, after contracting Bandhan Mutual Fund
similar instances. 2% and 9% in the previous two finan-
The scheme will be benchmarked cial years, 2022 and 2023, respectively, files draft document for
against Nifty 500 TRI. The scheme will showed data from the mutual fund in- Nifty 500 Value 50 Index
be managed by Devender Singhal and dustry body. Fund
Arjun Khanna. Bandhan Mutual Fund has filed a draft
The minimum application amount for Mutual Funds SIP invest- document with Sebi for Nifty 500 Value
lumpsum, SIP, and additional purchase ments rise to Rs 2 lakh 50 Index Fund. Bandhan Nifty 500
investments will be Rs 100, and any Value 50 Index Fund will be an open-
amount thereafter. The minimum re- core in FY24 ended scheme tracking Nifty 500 Value
demption amount for all plans will be Buoyant economic outlook and in- 50 Index.
Rs 1,000 or 100 units or account bal- creased market participation helped The investment objective of the
ance, whichever is lower. drive the inflows in the mutual fund
industry through systematic invest- scheme will be to replicate the Nifty
The scheme will allocate 80-100% in ment plans or SIPs route to record Rs 500 Value 50 Index by investing in se-
equity and equity-related securities of 2 lakh crore in 2023-24, marking a rise curities of the Nifty 500 Value 50 Index
special situations theme, 0-20% in eq- of 28 per cent year-on-year. In com- in the same proportion/weightage
uity and equity-related securities other parison, an inflow of 1.56 lakh crore with an aim to provide returns before
than of special situations theme and was witnessed through this route in expenses that track the total return of
overseas mutual funds schemes/ETFs/ Nifty 500 Value 50 Index, subject to
2022-23, Rs 1.24 lakh in 2021-22 and
foreign securities, 0-20% in debt and Rs 96,080 crore in 2020-2021, data tracking errors. The scheme will offer
money market securities, and 0-10% in with the Association of Mutual Funds regular and direct plans both with only
units of REITs & InvITs. in India (AMFI) showed. growth option.

Moreover, mutual fund SIP contribu- The minimum application amount for
Mutual fund industry as- tion has seen over four-fold rise during lumpsum investment will be Rs 1,000
sets grow 35% in FY24 the last seven years. It was Rs 43,921 and in multiples of Re 1 thereafter.
The minimum amount for additional
The mutual fund industry's assets un- crore in 2016-17. purchase will be Rs 1,000 and in mul-
der management grew by 35% in Additionally, SIP book has also grown tiples of Re 1 thereafter. The minimum
FY24, recording the highest gain since consistently from Rs 14,276 crore in amount for SWP will be Rs 200 and any
fiscal FY21 when the industry grew by March 2023 to an all-time high of Rs amount thereafter. The minimum
41%, said the Association of Mutual 19,270 crore in March 2024, indicat- amount for repurchase/redemption
Funds India (AMFI). ing a growth of 35 per cent. will be Rs 500 or the account balance
The number of folios closed at a record The SIP contributions consistently ex- of the investor, whichever is less.

16 | 2024 | MAY | BANKING FINANCE