Page 18 - Banking Finance July 2021

MUTUAL FUND

Mutual Fund

News

Tata Mutual Fund positioning and duration in such a way equity reinvestments, credit risk
that any policy change or rate assessment, and evaluation of
launches floating rate NFO movement has lesser impact on our infrastructure projects.

Tata Mutual Fund has launched a investments and we move with broader Manish Gunwani, CIO - Equity
floating rate fund -an open-ended debt directional change in market," he said. Investments, Nippon India Mutual
scheme predominantly investing in Meanwhile, Nippon India Mutual Fund Fund, said, "We are delighted to have
floating rate instruments. The new has launched Nifty Pharma Exchange Rupesh on board. His in-depth
fund offer, which opened for
Traded Fund. Subscription of the fund knowledge and rich experience would
subscription, will close on July 5.
will close on June 28 and reopens for complement and strengthen our
The fund will invest a minimum 65 per continuous re-subscription on July 12. equity investment management
cent of its corpus in floating rate The scheme will provide returns close function and will help our team's
securities issued by corporates or to the total returns of the securities as collective endeavour to deliver value to
government or convert fixed interest represented by the Nifty Pharma index all our unitholders."
securities to floating via derivatives.
before expenses, it said.
Akhil Mittal, senior fund manager at Sebi clarifies rules on
Tata Asset Management said with Rupesh Patel of Tata MF holding of liquid assets in
inflation remaining high, further cut in
interest rate is unlikely. The RBI will joins Nippon India MF as debt mutual funds
most likely reduce the excess senior fund manager Markets regulator Sebi clarified rules
accommodation and would address Nippon India Mutual Fund has pertaining to holding of liquid assets in
liquidity and rate corridor (difference announced the appointment of Rupesh open-ended debt mutual funds.
in reverse repo and repo) first and Patel as Senior Fund Manager in Equity Sebi had in November 2020 issued rules
follow up with rate movement.
Investments and Hideaki Masago as that entailed keeping of minimum 10
However, the RBI will stay put on Deputy Chief Risk Officer. Rupesh Patel per cent in government securities in
current accommodation in this fiscal was earlier associated with Tata order to enhance the liquidity in open-
and any sort of normalisation will start Mutual Fund as a senior fund manager. ended debt funds like floater funds,
only after 6-9 months. Reverse repo is In his last role, Rupesh Patel managed credit risk funds and banking and PSU
expected to gradually rise and come some of the flagship equity funds such bond funds, among others.
back to normal band of 25 bps below as Midcap Growth, Large Cap, Tax This led to some confusion in fund
repo rate from the current band of 65 Savings, and Infrastructure Funds since managers' minds as to what the
bps below repo rate, he said.
2008. Rupesh brings 19 years of diverse balance allocation would be, Sandeep
"It is imperative that we manage our experience across equity investments, Bagla, CEO - TRUST MF, said.

18 | 2021 | JULY | BANKING FINANCE