Page 14 - Banking Finance June 2022

MUTUAL FUND

mutual funds can launch either of the and diversification at issuer level. The the first two FMPs is June 30, 2022 and
following ELSS schemes in the open constituents of the index shall be peri- for the third FMP mentioned above,
ended scheme category, subject to odically reviewed also. the date of the merger is June 28,
compliance with guidelines on Equity 2022.
Linked Saving Scheme, 2005 notified by
Axis Mutual Fund sacks As per SEBI categorisation of funds,
the Ministry of Finance.
2nd fund manager- corporate bond funds invest in 80% of
The fund houses can either launch an total assets only in the highest-rated
Deepak Agrawal for al-
active ELSS Scheme or a passive ELSS
corporate bonds. While the medium
scheme (through Index Fund). The pas- leged frontrunning duration fund makes investments in
sive ELSS scheme shall be based on one
Axis Mutual Fund has asked fund man- debt & money market instruments
of the indices comprising equity shares
ager Deepak Agrawal to leave the firm such that the macaulay duration of the
from top 250 companies in terms of
from May 20 on the heels of an inves- portfolio is between 3 years - 4 years.
market capitalization.
tigation into alleged wrongdoings by
"I think it is a good move. Always good him and chief trader and fund man-
Mutual Fund companies
to add options for investors. It also ager Viresh Joshi. The fund house said
shows the keenness of the regulator to it had terminated the employment of collect Rs. 1.08 lakh crore
promote passive amongst investors Joshi.
via NFO in FY22
across categories. I hope in the future
"The employment of Deepak Agrawal Riding on intense retail investors' inter-
they allow AMCs to have both passive
- fund manager with Axis AMC - has est and a sharp rally in equity markets,
as well as active ELSS and leave the
been terminated with effect from May asset management companies (AMCs)
choice to the investor," says Swarup
20, 2022. Consequently, he ceases to
Mohanty, CEO, Mirae Asset Mutual launched 176 new fund offerings
be a key person of Axis AMC," said an
Fund. (NFOs) in 2021-22, garnering a whop-
Axis Mutual statement.
ping Rs. 1.08 lakh crore.
Sebi lays down operating Agrawal was the co-fund manager for With liquidity tightening, interest rates
three funds - Axis Value Fund, Axis
norms for debt index on the rise, stock market consolidation
Quant Fund, and Axis Consumption ETF.
in progress, return to work from office,
funds and ETFs The fund house, the seventh largest in
there could be subdued interest in
Sebi has released new norms for pas- terms of assets under management,
NFOs going forward. While fixed ma-
sively-managed debt funds. Sebi has had suspended Agrawal and Joshi ear-
turity plans (FMPs) category could see
said that Debt ETFs/ Index Funds could lier this month as it was investigating
considerable launches, the same can-
be based on indices comprising of Cor- alleged frontrunning cases against
not be expected from other catego-
porate Debt Securities; or Govern- them.
ries, Gopal Kavalireddi, Head of Re-
ment Securities, t-bills and/or State
search at FYERS, said.
Development Loans (SDLs) (G-sec indi- HDFC MF merges three
ces); or a combination of all. Also, almost all AMCs have launched
fixed maturity plans with new schemes across most categories,
"The new circular by SEBI on passive
two open-ended funds thereby fillings the earlier existing
funds has some fantastic changes that
product gaps that was created post-
will drive further transparency, liquid- HDFC Mutual Fund has announced the
recategorization, he said.
ity and innovation. In particular the merger of three Fixed Maturity Plan
regulations on debt passives are a big (FMP) - HDFC FMP- Series 42-1381D "Gaps in investment objectives, inter-
positive for this fast growing category," September 2018 (1), HDFC FMP- Series est of investor in specific themes, avail-
said Radhika Gupta, CEO, Edelweiss 42-1372D September 2018 (1) with
ability of funds for deployment, cred-
Mutual Fund. HDFC Corporate Bond Fund and HDFC
ibility and reputation of fund manag-
FMP- Series 43-1344D October 2018 (1)
According to the new norms, the con- ers, and performance of stock markets
with HDFC Medium Term Debt Fund.
stituents of the index in debt index could dictate the quantum of new
funds should have adequate liquidity The effective date of the merger for launches," he added.
14 | 2022 | JUNE | BANKING FINANCE