Page 19 - Banking Finance September 2021

MUTUAL FUND

investors is a series of Vodafone Idea bal experience has always been that years. Some of this out performance
papers, which are due for interest pay- value as a strategy will not work all the comes from the depreciation of the
ment on 2 and 3 September. The pa- time but tends to deliver sizeable re- rupee which falls roughly 3-4% against
pers have an interest rate reset clause turns in the long run. the dollar per annum. It is only in the
and a put/call option against them. last one year that the Nifty did better,
They were placed into 'segregated Mirae Asset Mutual Fund with a return of 44.2%.
portfolios' in January 2020 by the fund
house. to launch S&P 500 Top 50 SBI MF nets record Rs
Funds
ICICI Prudential Value Dis- Mirae Asset Mutual Fund will launch 12,000 crore in new fund
The euphoria of the stock market is
covery Fund AUM reaches an Exchange Traded Fund (ETF) invest- spreading to the mutual fund industry
ing in the top 50 listed US companies
Rs 21,195 crore comprising the S&P 500 index. The as well. In its latest new fund offer
(NFO), SBI Mutual Fund, the largest
ICICI Prudential Mutual Fund said its New Fund Offer (NFO) will last till 14
value discovery fund has witnessed sig- September. fund house in India in terms of money
nificant investor interest over the years under management, mobilised over Rs
Simultaneously, the fund house will 12,000 crore in its Balanced Advan-
and has emerged as the largest
launch a Fund of Funds (FoF), investing tage Fund.
scheme in the value category with a
in units of the ETF. This will help inves-
total asset base of Rs 21,195 crore as tors without demat and trading ac- This is the largest ever NFO
of July 2021. Moreover, the scheme -- mobilisation by an equity fund in the
counts to invest in the underlying
ICICI Prudential Value Discovery Fund mutual fund industry's history. The pre-
scheme. Demat and trading accounts
-- which completed 17 years in exist- vious biggest collection was Rs 9,800
are required to buy ETF units. The ETF
ence accounted for nearly 30 per cent crore by ICICI Prudential MF through
will have an expense ratio of 0.37%
of the total asset under management its Flexi Cap Fund last month.
while the FoF will have an expense ra-
(AUM) in the value category, the fund According to SBI MF executives, it will
tio of 0.62% for the direct plan. For the
house said in a statement. take a few more days to reconcile and
regular plan, the FoF expense ratio will
The fund house said that if an inves- climb to 1.05%. arrive at the final mobilisation figure.
tor had invested a lumpsum of Rs 1 Industry sources expect that number
lakh at the time of inception (August By way of comparison, the Motilal to cross Rs 12,500-crore mark.
Oswal S&P 500 Index Fund which tracks
16, 2004), as of July 31, 2021, that in- SBI MF executives said that with the
the broader S&P 500 Index has an ex-
vestment would have been worth Rs stock market at a record high level, a
pense ratio of 0.49% on its direct plan
22.13 lakh, translating into a com- large number of investors who are not
pound annual growth rate (CAGR) of and 1.06% on its regular plan. very comfortable investing in stocks
20.03 per cent. In the same time- According to a presentation released have put in their money in the fund.
frame, the Nifty 50 TRI (additional by the fund house, the S&P 500 Top 50 Also there are investors who want a
benchmark) has delivered a CAGR of has delivered returns of 22.6% CAGR return that is higher than fixed deposit
15.91 per cent and the corresponding over the past 10 years in rupee terms rates, which are at a historical low
worth of investment would be Rs 12.24 (as of 31 July 2021). Over the past five level.
lakh. years and one year, returns of the S&P
Industry figures show in July equity
The scheme follows a value investment 500 Index Top 50 come to 21.7% and NFOs had mobilised Rs 13,709-crore,
style by investing in diversified portfo- 33.6%. while the current month's figure is ex-
lio of stocks that have attractive valu- In two of three periods, the S&P 500 pected to cross that figure. Large NFO
ations but are quoting at a discount to has beaten the Nifty 50 which has de- collection was one of the reasons for
their intrinsic value. S Naren, ED and livered 12.5% CAGR over the last 10 the record Rs 22,584-crore net inflows
CIO at ICICI Prudential AMC, said glo- years and 14.5% CAGR over the last 5 into equity funds, AMFI officials said T

BANKING FINANCE | SEPTEMBER | 2021 | 19