Page 19 - Banking Finance November 2020

MUTUAL FUND

terial non-public information that could inflow of Rs 1.1 lakh crore in October, house had also launched the instant
affect the value of an investment to according to Amfi data. redemption facility in the fund earlier
external parties and will not act or this year. SIPs are available in the
Within debt schemes, liquid funds cat-
cause others to act on such informa- growth option for both regular and
egory was the biggest beneficiary with
tion. In addition, they will need to high- direct plans of the fund, on transac-
an inflow of Rs 19,583 crore followed
light and bring to the notice any in- tions made through the Sundaram
stance of suspected malpractice or by money market funds (Rs 15,445 Mutual website, branches, and RTA.
crore) and short duration funds (Rs
market misconduct to the appropriate
15,156 crore). The facility would be available from
risk, compliance and regulatory chains
of command. Sebi said they cannot Corporate bonds, ultra short duration November 13. Users can use NACH/
OTM to set up Weekly, Monthly or
favour one scheme over another for the funds, banking & PSU funds saw inflow
Quarterly SIPs, said the fund house.
purpose of security allocation, transfer of over Rs 15,000 crore, Rs 13,654
Weekly SIPs will be processed on
of benefits (profit/loss) or any valuation crore and Rs 5,554 crore, respectively.
gain or loss including by way of inter Wednesdays, monthly SIPs on any day
Hence, credit risk category continue to of the month and Quarterly SIPs on any
scheme transfers or otherwise among
witness net outflows, although the day of the quarter beginning January,
others.
pace has slowed down significantly, April, July, and October. The minimum
Srivastava said. SIP amount is Rs 1,000 and in multiples
Debt MFs see Rs 1.1 lakh
Credit risk funds saw an outflow of Rs of Re 1 thereafter.
cr inflow in October 415 crore in October as compared Commenting on the release of the new
Debt-oriented mutual fund schemes with outflow of Rs 539 crore in Septem- feature, Mr. Sunil Subramaniam, Man-
witnessed a staggering inflow of Rs 1.1 ber, Rs 554 crore in August, Rs 670 aging Director, Sundaram Mutual, said,
lakh crore in October, mainly due to crore in July, Rs 1,494 crore in June, Rs "Savings and current accounts are of-
investment in liquid funds, money mar- 5,173 crore in May and Rs 19,239 ten used to park surplus funds for un-
ket and short duration categories. crore in April. planned expenses, but liquid funds
score over them as they can give you
Debt mutual fund schemes had seen Gilt funds came back under investors'
potentially higher returns due to
net outflow of Rs 51,962 crore in Sep- radar in October after witnessing net
'disintermediation' and 'friendlier capi-
tember and Rs 3,907 crore in August, outflow for two consecutive months.
according to the Association of Mutual tal gains taxation."
The category saw fund infusion of Rs
Funds in India (Amfi). "Sundaram Money Fund, already
2,521 crore last month following a net
equipped with 24*7, 365 days instant
Hence significant flows have come in outflow of Rs 483 crore in September
redemption, is now a power-packed
ultrashort, low duration, money mar- and Rs 1,121 crore in August. tool that allows you to set up SIPs for
ket and short duration funds,
"The sovereign status of this category, your surplus, ensuring that your hard-
Morningstar India Associate Director -
with zero credit risk, has been the big- earned money is put to better use
Manager Research Himanshu
gest draw for investors. regularly.
Srivastava said.
The need to manually transfer funds
Besides, funds with pristine credit qual- Sundaram Mutual launches for your short-term goals, emergen-
ity, especially from categories such as
SIP in Sundaram Money cies, etc. has now been eliminated as
banking and PSU funds and corporate you can automate periodic additions
bonds, continue to gain traction from Fund to your investments and stay on track
investors, highlighting their preference Sundaram Mutual has announced the to building your corpus. This is one
for safety in this segment. launch of Systematic Investment Plans more step in SundaramMutual's en-
Mutual funds (MFs) that invest in fixed- (SIPs) in Sundaram Money Fund, its deavour to add value to its core retail
income securities or debt funds saw an open-ended liquid scheme. The fund franchise," he added. T

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