Page 17 - Banking Finance AUGUST 2015
P. 17
MUTUAL FUND
MUTUAL FUND
Equity MF net inflows crosses Rs 1L crore in the last Small mutual funds op-
15 months pose over cap on upfront
Equity MFs have attracted net inflows to the tune of nearly $2 billion in June. fees
of over Rs 1 lakh crore or about $16.5 Net inflows (higher purchase in
billion in the last 15 months with nearly schemes than sales) into equity funds Fund houses are at war as they strive
one third of the money flowing into came at Rs. 12,273 crore for June, the to protect their businesses. The in-
schemes in the past dustry is split with
three months alone. second highest ever - smaller mutual funds
data with the accusing the trade
Net inflows in equity Association of Mutual body Association of
MFs (including equity - Funds in India (AMFI) Mutual Funds of India
linked savings schemes) showed. (AMFI) of siding with
stood at Rs 1,03,962 their larger counter-
crore in the last 15 months, which is Inflows for April-June parts. The bone of contention is the
higher than the inflows received over are more than four times the amount recent AMFI move to put a cap on
a 12-year timeframe stretching equity schemes got in the same period upfront fees mutual funds pay dis-
between January 2002 and April 2014. last year. Purchases made with these tributors which, the small asset man-
Despite the recent bout of volatility in investor inflows by funds helped agers feel, is against their interests.
the stock markets, investors continue counter net sales of 1,170 crore during
to chase equity. the period by foreign funds, which are At least five asset management com-
a bigger constituent of the market panies (AMCs) - Sundaram, JP Mor-
Equity MF attracted net investments than MFs. gan, Pramerica Deutsche and Edel-
weiss BSE 1.40 % - criticised AMFI
MFs makes a queue for 70 new offerings this year for "pushing through" the decision
without consensus said four people
MFs have lined up 70 New Fund Offers (NFO) and have filed draft documents in the know.
for them with capital markets regulator SEBI in
order to meet with rising demand from retail One of the five AMCs alleged that
investors for mutual fund schemes. Amfi, in its previous general meeting
early in June, went ahead with the
The documents for these 70 NFOs have been decision to limit upfront commission
submitted with the SEBI since the beginning of this calendar year. Some of despite majority of the fund houses
these NFOs have already been launched, while other schemes would be opened either voting against it or asking the
for subscription soon after the necessary clearances. industry body to make changes.
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