Page 20 - Banking Finance January 2019

A N

re it ri ro t e & S e a t i containe
M ri e R tri ion in
Mutua funds sa d there are enou h a ue Research a utua fund research
safe uards to ensure that cred t r s house ns the a e on the an n
Mutua funds have added a ho
fro the S defau t s conta ned re u ator he RB shou d f ure out
n Rs
d s ss n the Reserve Ban of nd a s ho an AAA rated ond of a non an
tr on to
concerns that asset ana ers ere n f nanc a co an re u ated the
the r asset
ass n on the ent re r s to nvestors centra an turned out to e co
ase n
ete ho o sa d h rendra u ar
A fa r va uat on ethodo o ado ted and the
ch ef e ecut ve off cer a ue Research
utua funds and the recent a u trend a cont nue n the ne
h s s a re u ator fa ure
rova Secur t es and chan e ear he ed cons stent r se n the
Board of nd a to a o s de oc et n e underscored that defau ts co S f o s and a stron art c at on
or se arat n d stressed and u d as an es hose a er s he d utua of reta nvestors des te vo at e
sets n a ortfo o reduces funds s rare he tota ar ets he asset under ana e
the r s to nvestors sa d A defau t a ut to ether ent A M of the utua fund n
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ecut ve off cer Ad t a B r a crore accord n to n ove er end tse f u
Sun fe AM td u ar n cases here fro Rs tr on at the end of
e have faced ro e s
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eccan hron c e
n AA and a ove rated a er he th the Assoc at on of Mutua
A te Auto the tota a n tude s
rote do n the va ue of the r Rs unds n nd a A f sho ed
noth n co ared to the tota asset
crore nvest ents n nfrastructure he nvestor count s a so est ated
under ana e ent
eas n nanc a Serv ces td after
to have ro n over crore dur
t as do n raded u t e notches he ar et re u ator s a so oo n to
n the ear o ever the ndustr
to defau t hat accord n to the RB s t hten r s ana e ent fra e or
e erts e eve that the f na utua
nanc a Sta t Re ort on asses for u d and one ar et sche es
fund A M f ure at ece er end
the defau t r s on to nvestors t s or n th the ndustr od and
ht e s ht o er than that of
utua funds to reduce vo at t n n
ven veteran an er da ota re ove er as there cou d e a d n
f o s and outf o s n u d sche es
cent h h hted the r s nvo ved n an u d funds due to a uarter end
S B ha r an Aja a had sa d af
ncreas n a ount of sav n s e n heno enon
ter the re u ator s oard eet n n
funne ed nto ar ets he f nanc a
ece er t ans to co e out th ee n nd the uarter end
sector s h h evera ed and n the
a o c soon trends and the advance ta a out
case of utua funds t s nf n te e
e e ect the ndustr A M to
vera ed ecause the ho d no ca ta ose to Rs a h crore as nvested
c ose around Rs a h crore n
and nvest hatever co es n ota n u d and one ar et sche es
ota Mah ndra Asset Man
ana n d rector and ch ef e ecut ve usua used ar e nvestors to ar
a e ent o s nat ona head sa es
off ce at ota Mah ndra Ban sa d short ter cash accord n to ove
and d str ut on a ances Man sh
Re u ators across sectors need to a n er data Assoc at on of Mutua
and understand th s sh ft n the ode unds of nd a he RB n ts re ort Mehta sa d he ace of ro th
sa d ercent of the are h h net ho ever dec ned for the asset s e
Ba asu ra an an ho ever sa d u
orth nd v dua s cor orates an s n as co ared to the ast ear
tua funds are su osed to e on
and f nanc a nst tut ons he ndustr had seen a sur e of
ass throu h veh c es s nce the r fee s
n the A M or an add t on of
f ed he sa d ven f e earn er a sh er ch ef nvest ent off cer
over Rs tr on n
cent e don t earn e tra hereas n de t and head of roducts at ota
the case of B s hatever the earn Mah ndra Asset Mana e ent o o n nto the utua fund
e tra that oes to the r otto ne an td sa d utua funds have a houses e ect the ndustr ou d
he sa d n our case t oes to the a s assed throu h the fa out of a tness ro ust ro th as the sector
otto ne of the custo ers cred t event to nvestors s et to ta ts fu otent a
20 | 2019 | JANUARY | AN N NAN