Page 15 - Banking Finance October 2024

MUTUAL FUND

IndusInd Bank Receives

RBI Approval to Enter Mu-
tual Fund Business
IndusInd Bank has received approval
from the Reserve Bank of India (RBI)
to establish a wholly-owned mutual
fund asset management subsidiary. In Ò»©­
a filing to the stock exchanges, the
bank announced that RBI has also
granted permission for the lender to
infuse equity capital into the new sub-
sidiary.

Shares of IndusInd Bank closed at Rs.
1,349.60 on the NSE, down 1.07% Baroda BNP Paribas Multicap Fund Celebrates 21
from the previous day. The bank re-
cently reported a consolidated profit Years, Surpasses Rs. 2,500 Crore AUM
after tax (PAT) of Rs. 2,171 crore for Baroda BNP Paribas Multicap Fund has completed 21 years and crossed Rs.
Q1 FY25, reflecting a 2% increase from 2,500 crore in assets under management (AUM). This open-ended equity
Rs. 2,124 crore in the same period last scheme invests across large-cap, mid-cap, and small-cap stocks, offering a
year. Additionally, its net interest in- broad diversification to capitalize on growth opportunities.
come (NII) grew by 11% YoY to Rs. In the last year, the fund provided a 47.22% return, outperforming its bench-
5,408 crore from Rs. 4,867 crore. mark, the Nifty 500 Multicap 50:25:25 - TRI, which delivered 41.01%. Over
the last three years, the scheme returned 20.99%, closely tracking its
SIP Flows Reach Record Rs. benchmark's 21.04%. Since its inception, the fund has offered a return of
23,547 Crore in August 17.51%. A monthly SIP of Rs. 10,000 made since the fund's inception would
have grown to Rs. 1.58 crore.
Systematic Investment Plan (SIP) flows
in August 2024 reached a new high of The fund's Sharpe ratio of 1.11 highlights its strong risk-adjusted returns,
Rs. 23,547 crore, marking a 50% in- while a beta of less than 1 indicates lower downside risk. The fund lever-
crease year-on-year, despite market ages a multi-cap strategy, investing in sectors like media, textiles, and for-
volatility. According to data from the est materials, allowing it to navigate various economic cycles and mitigate
risks effectively.
Association of Mutual Funds in India
(Amfi), the total assets of the mutual
fund industry also hit a record Rs. 66.7 flected investor confidence in long- open-ended equity diversified funds,
lakh crore. term wealth creation through mutual 190 surpassed their benchmarks during

This growth came despite an early funds. the month.
August stock market dip due to con- The assets under management (AUM)
cerns over weak U.S. economic data 67% of Equity Mutual for equity mutual funds increased
and fears of a recession. By month- Funds Outperform Bench- 2.04% to Rs. 25.64 lakh crore in Au-
end, however, markets recovered, with gust from Rs. 25.12 lakh crore in July,
equity funds seeing net inflows of Rs. marks in August excluding sectoral and thematic funds.
38,239 crore, marking 42 consecutive In August, 67% of equity mutual funds Large and mid-cap funds were the top
months of positive inflows. Amfi CEO outperformed their respective bench- performers, with 79% of schemes out-
Venkat Chalasani noted that the surge marks, a significant increase from 39% performing their benchmarks, followed
in SIP contributions and mutual fund in July, according to a report by PL by focused funds, where 75% of
folio counts exceeding 20 crore re- Wealth Management. Of the 283 schemes outperformed. Additionally,

14 | 2024 | OCTOBER | BANKING FINANCE