Page 16 - Banking Finance May 2022

MUTUAL FUND

investments and increasing awareness best single-day record of 26.65 lakh inflow trends in equity mutual funds to
among the people are some of the el- transactions registered on January 10, sustain given the current economic
ements that may have an impact on the exchange said in a statement. condition and markets, Manish
this industry, she added. Kothari, CEO and Co-Founder, ZFunds,
Snehal Dixit, Business Head-Mutual
said. According to the data, equity
Funds BSE StAR MF, said that reaching
MFs go long on new-age new heights by adding many more mutual funds witnessed a net inflow of
Rs 1,64,399 crore in the entire 2021-
companies, beaten-down transactions is possible since mutual
fund has become a product of the 22. This included an all-time high in-
stocks flow of Rs 28,464 crore last month.
masses.
Top mutual funds lapped up beaten-
"Distribution is spreading due to
down shares of recently-listed compa- Bandhan-led group to
digitisation, area and the scope for dis-
nies in March. SBI Mutual Fund, ICICI buy IDFC MF, deal valued
Prudential, Nippon India and UTI bought tributors, which is increasing with new
investors entering the MF market," he
One97 Communications - parent of at Rs. 4,500 crore
added.
Paytm, which has been under selling Bandhan Financial Holdings won the
pressure since its listing on November In March, BSE StAR MF processed a bid to buy IDFC Asset Management
18. The stock had fallen to a low of Rs record number of 1.97 crore transac- Company in a deal valued at 4,500
520 on March 23, more than 75% be- tions against its previous best of 1.87 crore, marking the entry of a finan-
low its IPO price of Rs 2,150. Since then, crore transactions in January. cier that began its life as a bottom-
it has recovered 32% to Rs.688. of-the-pyramid lender into the ritzy
In the entire FY22, the mutual fund business of asset management domi-
During the month, these funds also distribution platform processed 18.47 nated by bulge-bracket financial
bought afresh shares of PB Fintech crore transactions as against 9.38 groupings such as ICICI, HDFC and
(Policybazaar), Zomato Star Health, crore achieved in the preceding finan- the State Bank of India. This is the
which too were out of favour on Dalal cial year. largest deal to date in the Indian
Street. asset management space.
Besides, the platform registered 10.89
Amidst rising inflows into equity funds, lakh new systematic investment plans The consortium led by the Kolkata-
fund managers bet on the 're-opening amounting to Rs 250 crore last month. based owner of Bandhan Bank
trade', buying shares of airlines, hotels, trumped the US based Invesco that
malls, entertainment and logistics. Equity mutual funds see partnered with buyout firm
Prominent companies such as Indian Warburg Pincus and Kedaara Capi-
Hotels, KPR Mill, V-Mart Retail, Rs 1.64 lakh crore net in- tal, paying 3.6% of the assets under
Sundaram Finance, Bharat Forge, PVR, flow in FY22 management. The winning group
and Barbeque-Nation Hospitality have includes Lathe Investments Pte. Ltd,
Strong SIP book and lower returns from
been bought by fund managers of lead- an affiliate of Singapore sovereign
traditional investments made equity
ing fund houses for their March 2022 wealth fund GIC, and local private
mutual funds an attractive investment
portfolio. equity fund ChrysCapital.
destination for investors with equity-
JM Financial was advising the
BSE's StAR MF platform oriented funds receiving a staggering Bandhan-led consortium in the deal.
net inflow of Rs 1.64 lakh crore in
sees record 29.9 lakh 2021-22. Addition of mutual funds business to
Bandhan's portfolio of tiny, small-
single-day transactions This comes following a net outflow of ticket and housing loans would im-
BSE's mutual fund distribution platform Rs 25,966 crore during 2020-21, data prove its ability to cross sell financial
StAR MF processed a record 29.9 lakh with Association of Mutual Funds in products to millions of customers
transactions in a single day. India (AMFI) showed. who do not have access to savings
instruments. T
The platform has surpassed its previous Going ahead, we expect the growing

16 | 2022 | MAY | BANKING FINANCE