Shriram Mutual Fund has filed draft offer document with Securities and Exchange Board of India seeking approval to launch Shriram Large Cap Fund. The open-ended equity scheme will invest at least 80% of its assets in equity and equity-related instruments of large cap companies, while up to 20% can be allocated to shares of other market capitalisation or in debt and money market instruments.
Last month, the mutual funds increased their portfolio allocation to the oil & gas, private banks, consumer, cement, capital goods and utilities sector while brought down their holdings in PSU banks, healthcare, NBFCs, metals and chemicals. Axis Bank was one of the preferred stocks among MFs in February, with net buying by 19 funds. Kotak Mahindra Bank was another preferred stock in the month, with net buying by 15 funds. SBI was the least preferred stock among MFs last month.
Fund managers of top 10 fund houses by assets under management (AUMs) have shown considerable interest in public sector undertakings (PSUs) in February. The valuation of PSU companies is at trading at multi-year lows. The five PSU stocks which have attracted large amount of buying from leading fund managers in February are NTPC and Coal India (bought by DSP Mutual Fund), GAIL and Nalco (by ICICI Prudential Mutual Fund), and Engineers India (by Kotak Mutual Fund).
The net asset value (NAV) of Franklin India Prima Fund (Direct Plan) - Growth touched Rs 1006.59, after it gained 1.8%. This midcap fund launched in December 1993, has assets worth Rs 6500 crore. The fund has returned 100x to investors since launch meaning that Rs 1 lakh put in the new fund offer in December 1993 is now worth Rs 1 crore. With 87% of its corpus invested in midcap stocks, the top holdings of the fund are HDFC Bank, Kansai Nerolac, Ramco Cements, City Union Bank and Apollo Tyres.
Yes Mutual Fund has sought approval from SEBI to launch Yes Overnight Fund, an open-ended debt scheme investing in overnight securities. The scheme will allocate its entire corpus in debt securities and money market instruments with residual maturity of the next business day. Minimum investment will be Rs 1,000 with multiples of Re 1 thereafter.
Investments in Equity Linked Savings schemes (ELSS) offer tax deduction benefits of up to Rs 1.50 lakh under section 80C of the Income tax Act. ELSS are essentially equity mutual fund schemes. However, investment in ELSS demands a higher risk appetite as compared to other tax saving instruments like fixed deposits. ELSS also has a mandatory lock-in period of 3 years. Among the most recommended ELSS are Motilal Oswal Long Term Equity Funds, Aditya Birla Sun Life Tax Relief 96, L&T Tax Advantage, Axis Long Term Equity Fund, Mirae Asset Tax Saver, DSP Tax Saver and Invesco India Tax Plan.
India’s largest fund manager, HDFC Mutual Fund, held Rs 1.36 lakh crore in equities at the end of February. HDFC MF bought 1.40 crore NTPC shares last month, followed by Bharat Electronics (65 lakh), Coal India (47.90 lakh), SBI (43.80 lakh) and REC (41.10 lakh). On the other hand, it sold over 1 crore shares each in Federal Bank and NHPC. It also sold between 20-40 lakh shares of Oil India, Spencer's Retail, Container Corp and Tata Motors. It completely exited its stake in Amber Enterprises, Dish TV, GMR Infra, Jubilant FoodWorks, Kaveri Seeds, Piramal Enterprises and Ujjivan Financial.
According to the data provided by AMFI, the mutual fund managed to garner Rs 8,095 crore through SIPs, slightly higher than the Rs 8,064 crore collected in January. Inflows into equity funds stood at Rs 5,122 crore in February. Monthly equity inflows had touched the high of Rs 20,308 crore in November 2017. Assets under management (AUM) for the MF industry stood at Rs 23.16 lakh crore as at February-end. At present, domestic MFs have about 2.29 crore active SIP accounts.
HSBC Asset Management Company India Pvt. Ltd (HSBC AMC India) today announced the launch of the HSBC Large and Mid Cap Equity Fund – an open-ended equity scheme that invests in both large cap and mid cap stocks. The fund will remain open for subscription till March 25. Open-ended fund is a type of mutual fund that can issue and redeem shares at any time. An investor will generally purchase units directly from the fund itself. Their units are not traded in stock exchange. Open ended mutual funds hold shares of listed companies.
The mutual fund industry witnessed net fund outflows of Rs 20,083 crore in February. The asset under management at February end stood at Rs 23.16 lakh crore. While the balanced, liquid, income and gilt funds saw exits, SIPs continued to remain robust. SIP inflows touched an all-time high of Rs 8,095 crore and the industry added 2.5 lakh SIP accounts. ELSS also attracted investor attention to meet the tax deduction benefit ahead of the March 31 deadline.