Page 16 - Banking Finance April 2022

MUTUAL FUND

The fund will invest in government se- The index will select top 30 companies, Now, we don't know whether, in
curities forming part of the GSec por- based on market cap which align to the Ramayana, Kumbhakarna invested in
tion of CRISIL IBX 50:50 Gilt Plus SDL pre-defined set of basic industries. mutual funds (MFs) or not, but if he
Index - April 2028, State Development Speaking on the launch, Meeta Shetty, had invested and he had seen his net
Loans securities forming part of the Senior Analyst & Fund Manager, Tata asset value (NAV), he probably would
SDL portion CRISIL IBX 50:50 Gilt Plus Mutual Fund, said, "Tata Nifty India have woken up. So, the only solution is
SDL Index - April 2028. Apart from Digital Exchange Traded Fund is a pas- asset allocation. There is no mecha-
this, the scheme will also have an allo- sive portfolio replicating a pre- defined nism whereby one can protect the
cation to money market instruments downside and get the full upside. The
Digital India Index. Current character-
including cash and cash equivalents istics of Nifty India Digital Index based best that investors can do is asset allo-
Sebi clarifies mutual fund on its index construction methodology cation.
represents the digital change agent Balanced advantage fund is not the
transactions via online companies and digital enablers. Digital only answer. There are asset allocator
aggregators transformation is still in the early stages funds, which divide between gold,
and we expect more new age compa- debt, equity and offshore assets. Then
Sebi has given clarification regarding nies to achieve scale, raise capital and there are asset allocator funds that
transactions in mutual funds facilitated get listed over the next 3-5 years. " divide within these asset classes based
by online platforms. The regulator said on a conservative, medium-risk or ag-
payment aggregators should directly "As this transformation unfolds and the gressive investor. But BAF is probably
credit the amount collected from the new age companies become a more the first step in creating a solution
bank account of the investor only into prominent part of the economy and where investors can divide between
an approved account, as per the in- equity markets, we see the emergence debt and equity. People necessarily
structions from the investor. of new hybrid segments like consumer
tech, fintech, edtech, etc. The portfo- don't chase returns and they don't like
It also said payment aggregators lio, over a period, would have adequate complexity. They want products which
should not act on instructions of the representation to Digital enablers as are simple to understand, and they
online platforms to alter the list of well i.e. IT Services/ Cloud transforma- want products which they can
approved accounts and in no case, tion / SaaS companies. The Indian IT commonsensically understand.
should the amounts be credited to the services companies which are ahead in
bank accounts of the online platforms. digital and cloud capabilities will also be Axis MF launches Axis
Stock exchanges should ensure that an important part of this segment along NIFTY Midcap 50 Index
payment aggregators must put in place with companies which are in the auto-
adequate checks and balances so that mation/robotics/IoT space". Fund
the approved account is that of a Axis Mutual Fund, has announced the
clearing corporation, Sebi said. RBI should revise the over- launch of Axis NIFTY Midcap 50 Index
The regulator said asset management seas investment limit by Fund (an open ended Index Fund track-
companies would be liable to the ing the NIFTY Midcap 50 Index). Man-
unitholders in case of misuse of funds MFs aged by Jinesh Gopani, Head - Equity,
by payment aggregators or online plat- Nilesh Shah, managing director of the fund will track the NIFTY Midcap
forms with respect to mandates cov- Kotak Mahindra Asset Management 50 Index TRI.
ering mutual fund transactions. Co. Ltd, believes that the only solution The NIFTY Midcap 50 Index consists of
to the current volatility is asset alloca- top 50 companies based on full market
Tata Mutual Fund launches tion or a Kumbhakarna-kind sleep capitalization from NIFTY Midcap 150
Tata Nifty India Digital Ex- where you don't worry about market index with preference given to those
returns. In an interview with Mint, the stocks on which derivative contracts
change Traded Fund mutual fund industry veteran talked are available on National Stock Ex-
Tata Mutual Fund launched Tata Nifty about the right way to approach the change (NSE). The index is rebalanced
India Digital Exchange Traded Fund - market, limit on overseas investment, on a semi-annual basis (March and
an open-ended Exchange Traded Fund and the underperformance in their September) using average data of the
replicating Nifty India Digital Index. flagship flexi-cap fund. last six months. T

16 | 2022 | APRIL | BANKING FINANCE