Page 19 - Banking Finance January 2019

A N

Re erve an o n ia rai e concern over vo ati it in
D t a n re
t a n in ow
gain to ot in t a
Reserve Ban of nd a n ts recent nanc a Sta t Re ort has ra sed con
n in tr cern over the vo at t n utua fund nf o s due
utua fund has re a ned ts to certa n ar et deve o ents he net nf o nto
nu er utua fund sche es n the f rst ha f of th s f sca
as do n shar at Rs crore a a nst
s ot n the
Rs a h crore o ed n the sa e er od ast
nd an u
ear
tua fund n
dustr he net fo o ncrease dur n A r Se te er over as
s n n on ro th n the nu er of S s a ears to e re at ve ore sta e fro
ahead of rudent a Mutua the o nt of v e of susta na t of fund nf o s ven the s n f cant churn n
und or the uarter end n e nf o s n utua funds ana e ent of u d t M s has eco e or
ce er AM s avera e tant sa d the RB re ort
assets under ana e ent stood at
Mutua funds are redee a e on da as s h ch under nor a c rcu stances
Rs a h crore ahead of see order rede t ons o ever under stressed ar et cond t ons a fund
rudent a Mutua Rs a h crore ust e read to eet the rede t on o at ons to ts un t ho ders
ver the ast one ear M s
n th s conte t u d t ana e ent s ver ortant for utua funds and
assets under ana e ent have
there ust e ade uate o c es and rocedures to eet nvestor rede t on
ro n fro Rs a h crore
re uests S B has a read ut n ace var ous o c too s to t ate and re
Mutua und has een one of so ve u d t ssues n utua fund sche es nc ud n a rov s on to a rede
the est enef c ar es n the f ed t on roceeds da s after rece v n re uests fro nvestors
nco e s ace ost the S do n
o eva uate otent a vu nera t es S B has ade stress test n andator
rade or orate nvestors re
for a u d and one ar et utua fund sche es he stress test s re u red
ferred to sta th stron rands and
to e carr ed out on a onth as s and shou d test the act of nterest rate
rushed to safet th one ov n
r s cred t r s and u d t and rede t on r s on the A of the concerned
out fro so e of the s a er fund
sche es
houses n favour of M ue to
o t nvest ents n u d assets a re ate va ue of an sche e s nvest
th s M a ned a ot of assets
ents n u d secur t es shou d not e ceed er cent of the tota assets of
n de t fund cate or es e u d
the sche e and an u d secur t es he d a ove er cent of the tota assets
overn ht and cred t r s s ace
e ass ned ero va ue
AN N NAN | JANUARY | 2019 | 19