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MUTUAL FUND
UP first state to sell Rs 15 MF managers expanding investments by fetching more
cr UDAY bonds
cos
Uttar Pradesh was the first state to
sell around Rs Mutual fund managers are expanding Chemicals, Excel Crop Care, Automo-
15,800 crore their investment canvas by bringing bile Corporation of India, Hatsun Agro
worth of UDAY more companies into their portfolios. Products, Greenlam Industries, Starlog
(Ujwal Discom On the back of robust inflows from do- Enterprises, Eimco Elecon, Wheels In-
Assurance mestic investors, they are
Yojana) bonds trying out relatively un- dia, SMS Pharmaceuticals
known companies in order and Summit Securities have
this fiscal year at an average yield of to broad-base their alloca- been picked up by top fund
8.32 per cent. tions. managers, according to a re-
port from Edelweiss on
Top banks and mutual funds such as With more than a fourth of India's mutual funds.
Axis Bank, State Bank of India, UTI equity assets finding place
Mutual, and Kotak Mahindra are lap- only in selective blue-chip stocks, it is "Several of these companies
ping up the sovereign bonds' proxy increasingly becoming essential for are under-researched or not re-
from state governments, which fund managers to find stocks that can searched at all," said the research
boost the returns. help them generate better returns. head of a large asset management
company who is not authorised to
Private sector lender Axis Bank got Companies like Omkar Speciality speak to the media.
a lion's share at about 4,500-Rs
5,000 crore, and the State Bank of Brexit is an opportunity for Indian money market
India and Union Bank of India too
bought those bonds, said two people rather than being worst
familiar with the purchases. Those
bonds have rallied and yields have Indian money managers clung to equi- in assets. Domestic funds have bought
fallen about 10-15 basis points. ties during the worst selloff in four a net $1.5 billion of shares this year as
months, speculating the
"Institutional investors are seen elements that powered company profits recovered
scrambling for UDAY bonds, a clear this year's stocks rally are after declines in four of the
victory for the power ministry that strong enough to with- last five quarters and data
has been advocating the same," said stand global turmoil from showed India growing
Ajay Manglunia, EVP & Head Fixed the Brexit vote. faster than all other major
Income Markets at Edelweiss. economies.
Minister of State for Power, Coal, New "We will be concerned if the monsoon Increased public spending will help
and Renewable Energy, Piyush Goyal turns adverse, not by Brexit. We see maintain the growth momentum and
said, "Almost every state in the coun- Brexit as a buying opportunity." said S. India's record reserves will act as
try, most formally and some informally, Naren, chief investment officer at ICICI buffers against Brexit-fueled turmoil,
have confirmed that they would like to Prudential Asset Management Co., the according to SBI Funds Management
be a part of UDAY, particularly since it nation's second-biggest with $26 billion Ltd.
is a win-win for everybody".
Birla Sun Life files for approval of a close ended equity
Scripbox raises undis- scheme before SEBI
closed investment
Birla Sun Life Mutual Fund has filed offer document with SEBI to launch a close
Scripbox, a Bengaluru startup that ended equity scheme as "Birla Sun Life Resurgent India Fund-Series 1 & 2". The
uses proprietary algorithms to auto- New Fund Offer price is Rs 10 per unit. Entry load and Exit Load will be Nil for
mate mutual fund recommendations the scheme. The scheme offers Growth and Dividend option and seeks to col-
to retail customers, has raised an un- lect a Minimum Target Amount of Rs 20 Crores.
disclosed amount in funding led by
Omidyar Network. The scheme will be benchmarked against S&P BSE 200. The minimum applica-
tion amount is Minimum of Rs 5,000 and in multiples of Rs 10 thereafter.
20 | 2016 | JULY | BANKING FINANCE
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