Page 15 - Banking Finance July 2024

MUTUAL FUND

The performance of the scheme will be ments and/or units of debt/liquid Nippon India Mutual Fund
benchmarked against Nifty EV and schemes of domestic mutual funds. changes fundamental at-
New Age Automotive Index - Total
Return Index. The scheme will be man- Children's mutual fund tributes of multi-asset
aged by Abhishek Jain. fund
AUM surge 142% in last 5
Nippon India Mutual Fund has an-
Mirae Asset Mutual Fund years to Rs 20,081 crore in nounced the change in fundamental at-

launches Mirae Asset Nifty May tributes of Nippon India Multi Asset Fund.
The fund will now be called Nippon India
EV and New Age Automo- The total assets under management Multi Asset Allocation Fund.
(AUM) of children's mutual funds, a
tive ETF solution-oriented category, witnessed The changes will be effective from July

Mirae Asset Mutual Fund has an- a nearly 142% surge in the last five 14. The fund house informed about the
nounced the launch of Mirae Asset years to touch Rs 20,081.35 crore in changes to its unitholders through a
Nifty EV and New Age Automotive ETF, May. The AUM was Rs 8,285.59 crore notice-cum-addendum.
an open-ended scheme replicating/ in May 2019. On a year-on-year basis, At present, it is an open-ended scheme
the AUM has increased by nearly 31%
tracking Nifty EV and New Age Auto- investing in equity, debt and exchange
motive Total Return Index. from Rs 15,375.40 crore in May 2023. traded commodity derivatives and Gold
The children's mutual fund category as ETF. After the changes, it will be an
The fund will be India's first Exchange open-ended scheme investing in equity,
Traded Fund (ETF) focused on the Elec- of May 2024 gave an average return of
22.64%, 14.68%, and 12.71% in the last debt and exchange traded commodity
tric Vehicles (EV) and New Age Auto- derivatives and Gold ETF & Silver ETF.
motive segment. The fund aims to of- one, three, and five years respectively,
according to a report by ICRA Analytics. The investment objective of the
fer investors long-term capital appre-
ciation opportunities by investing in the The report mentioned that these re- scheme will be to seek long-term capi-
tal growth by investing in equity and
equity of companies that are at the turns are significantly higher as com- equity- related securities, debt and
forefront of the dynamic and rapidly pared to fixed deposits (as per State money market instruments and Ex-
evolving automotive sector and the Bank of India), which on average gave change Traded Commodity Derivatives
entire value chain. 6.80%, 6.75%, and 6.50% returns over and Gold ETF, Silver ETF as permitted
the same time period.
The new fund offer or NFO of the by the Sebi from time to time.
scheme will open for subscription on The net flows into children's mutual The scheme will invest 50-80% in eq-
June 24 and will close on July 5. The funds witnessed a growth of 28%, uity and equity -related securities (in-
102%, and 23% over a one, three, and
scheme will re-open for continuous cluding overseas securities /Overseas
five-year period.
sale and repurchase on July 11. ETF), 10-35% in debt and money mar-
According to Ashwini Kumar, Senior ket instruments, and 10-30% in Gold
The scheme will be benchmarked
against Nifty New Age and Automotive Vice President and Head of Market ETF, Silver ETF and Exchange Traded
Data, at ICRA Analytics, the surge in Commodity Derivatives (ETCD).
Total Return Index. The scheme will be
managed by Ekta Gala and Akshay education inflation, which is estimated To achieve the investment objective,
at close to 11-12% (almost twice the
Udeshi. The exit load will be nil. the scheme will invest in equity and
country's inflation rate), is encourag- equity-related instruments, debt and
The minimum initial investment during ing an increasingly large number of money market instruments, Gold ETF
NFO will be Rs 5,000 with subsequent parents to look for suitable investment and Silver ETF and Exchange Traded
investments being multiples of Re 1. avenues to fund their children's educa- Commodity Derivatives (ETCDs) as per-
The scheme will invest 95-100% in se- tion. The attractive rate of returns mitted by SEBI from time to time. The
curities included in the Nifty EV and coupled with the growing awareness scheme seeks to provide diversification
New Age Automotive Index and 0-5% among parents regarding mutual fund across equity, debt and commodity
in money market instruments including investments is contributing to a surge asset classes with an aim to provide
tri-party repo/ debt securities, instru- in AUM of these funds. superior risk adjusted returns.

14 | 2024 | JULY | BANKING FINANCE