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MUTUAL FUND

Mutual Fund assets cross 13 trillion mark in July-Sep- Mutual fund offer SIPs
tember: Crisil with innovative variants
for better returns
The Domestic Mutual Fund (MF) 872.39 billion to end with average as-
industry's asset under management sets worth Rs 13.16 trillion, during the Investors, disappointed with losses
(AUM) surged 7 per cent in their mu-
to cross the Rs 13 trillion July-September period. tual fund
mark for the quarter equity hold-
ended September 2015, "The industry recorded the ings, may
according to the rating largest absolute gain in as- finetune
agency Crisil. sets, ever since the Asso- their invest-
ciation of Mutual Funds in ment pro-
Driven by rise in equity and debt-ori- India (AMFI) started de-
ented funds, the industry added Rs claring quarterly average AUM data in cess by opting for variants of system-
September 2010," it noted. atic investment plans (SIPs). Wealth
managers and distributors are advis-
LIC Nomura MF plans to mobilise Rs 200-crore via new ing clients to go for SIPs that work
scheme differently from the current system
of investing on the same day every
LIC Nomura Mutual Fund plans to mop (RGESS)a qualified Scheme...This fund month as lump sum investments and
up Rs 200 crore through its new open- is suitable for those investors who seek SIPs made in various equity scheme
ended exchange traded fund. The in- long term financial gains and returns categories are showing losses.
vestment objective
of the scheme is to mirroring underly- "Using this method if you invested for
provide returns that ing index, subject the last three years in DSPBR Equity
closely correspond to tracking errors'," Fund it outperformed by 3.18 per
to the total returns of securities as rep- LIC Nomura MF cent, Reliance Equity Opportunities
resented by CNX Nifty index. Chief Executive Officer Sarojini Dikhale outperformed by 1.81 per cent," says
said. Srikanth Meenakshi, founder and di-
rector, fundsindia.com.
The company is aiming to garner Rs LIC Nomura MF is a joint venture be-
200 crore through the new scheme. "It tween LIC of India and Japan's Nomura "In a plain vanilla SIP even if the
is Rajiv Gandhi Equity Savings Scheme Asset Management Company. market moved up by 2 per cent yes-
terday and again up by another 2
LIC may club with state-run banks for Nomura stake sale per cent today, the SIP/STP is trig-
gered making the purchase cost-
Life Insurance Corporation (LIC) has 11,157 crore as of September- end, lier," says Srikanth Matrubai, a
initiated talks with public sector banks making it the 19th largest player in Bengaluru-based financial planner.
to sell 35 per cent stake held by its terms of AUM.
Japanese partner Nomura Fund houses too, are offering vari-
in its mutual fund arm. If Nomura exits, the Japa- ants of SIP. HDFC Mutual Fund's
nese financial powerhouse Swing Systematic Transfer Plan (STP)
The Corporation does not will become the 10th for- would invest less, when the net as-
want to increase its stake in eign fund house to quit the set value (NAV) is high and more
the MF joint venture, LIC crowded domestic MF when NAVs are low. It is also tuned
Nomura AMC, any further. market that has now 43 players. US- to redeem the excess when portfo-
based Goldman Sachs has announced lio value is more than target value
The market is abuzz with talks that the sale of its MF business to Reliance and reinvest in the debt scheme.
Nomura India is unlikely to renew its Capital AMC. Nomura is unlikely to re-
five-year contract with LIC and is plan- new its contract with LIC in the mutual
ning to completely exit its mutual fund fund venture, when the five-year term
business here. The Japanese firm holds comes to an end early next year, ac-
35 per cent stake in LIC Nomura MF, cording to sources.
which had an AUM of a little over Rs

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