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MF Weekly: Industry AUM data comes in at Rs. 20.59 lakh crore in Aug 2017 - IndiaNotes.com
MF Weekly: Industry AUM data comes in at Rs. 20.59 lakh crore in Aug 2017
SMC | Published: 11 Sep, 2017  | Source : IndiaNotes.com

Highlights:


RBI Committee proposes single license for advisors offering different financial products


The Reserve Bank of India committee, headed by Dr. Tarun Ramadorai, Professor of Financial Economics, Imperial College London, has proposed uniformity in guidelines for advisors across all financial products. The committee wants advisors to offer all the financial products such as insurance, mutual funds, National  Pension Scheme, and Alternative Investment Funds with a single license. Currently, all the financial regulators have different rules and regulations for their intermediaries and advisors registered with them. The committee has recommended introduction of an independent body, which can be managed by all these regulators to form a unique guidelines for financial advisors.


Industry AUM data comes in at Rs. 20.59 lakh crore in Aug 2017


According to data from AMFI, the corpus of the mutual fund industry increased from Rs. 19.97 lakh crore in Jul 2017 to Rs. 20.59 lakh crore in Aug 2017. Maximum inflow was seen in the liquid category funds to the extent of Rs. 21,352 crore followed by equity (including ELSS fund category) with an inflow of Rs. 20,362 crore in Aug 2017. The income category funds witnessed inflow of Rs. 8,390 crore in the month under review.


LIC Mutual Fund revises the exit load of LIC MF Children's Fund


LIC Mutual Fund has revised the exit load of LIC MF Children's Fund to nil with effect from Sep 6. Previous an exit load of 1% was charged if units are redeemed or switched out on or before completion of 1 year from the date of allotment of units.


SEBI planning to come out with definitions for all categories of mutual fund schemes


The Securities and Exchange Board of India (SEBI) is planning to come out with the uniform definitions for all categories of mutual fund schemes. The matter was taken up for discussion in a meeting held by SEBI's Mutual Fund Advisory Committee. Currently, the mutual fund industry has over 2,000 schemes. The presence of multiple funds in the category from the same fund house creates confusion among distributors and investors. The capital market regulator has been pushing fund houses to merge schemes to reduce confusion among investors.


SEBI wants MF industry to benchmark returns of its equity schemes


The Securities and Exchange Board of India would like the mutual fund industry to benchmark the returns of its equity schemes against a total return index. The step is expected to reduce the alpha generated by these schemes and enable investors to evaluate the returns more effectively.


Mutual Funds hiked exposure to banking, financial stocks in July


Banking and financial services were the most favoured sectors for equity mutual funds in July, with both sectors seeing their share in equity fund AUMs inching steadily higher. Sebi data shows these two sectors accounted for 31.2 per cent of total equity asset under management at the end of July compared with 27.8 per cent in last July. Banking is already the top sector holding for most mutual funds given the share the sector has in the market. Funds had begun turning wary of banks in the previous months, opting instead for NBFCs. But the past six months has seen a sharp surge in share of AUM, moving from 20.9 per cent in January 2017 to 22.6 per cent in July 2017 (latest available data). The value of fund holdings in banking is up by a strong 42 per cent in July 2017 from January, and even more by 57 per cent from a year ago.


IDFC AMC introduces 'insta-redemption' facility in IDFC Cash Fund


IDFC AMC is introducing 'insta-redemption' facility under the IDFC Cash Fund. This facility will enable investors to get redemption proceeds in their registered bank accounts instantly. The fund house provides the option of seamlessly updating the bank IFSC code for smooth completion of the insta-redemption process. A few clicks enable money transfer from the cash fund to the savings account, which can then be easily withdrawn. The transfers will be done using the Immediate Payment Service (IMPS) provided by various banks and the entire process should take a few minutes. The facility will be available on all days and at all points of time through the online transaction mode.


AMFI directs R&T agents to take investor's consent on linking Aadhaar with their folios


In the wake of the Supreme Court's order on Right to Privacy, the Association of Mutual Funds in India (AMFI) has directed registrar and transfer (R&T) agents to obtain consent of investors to access their Aadhaar data from UIDAI platform. Presently, the mutual fund industry regulator is working on the guidance note and is likely to issue it to R&T agents shortly. Earlier, the government had directed registrar and transfer agents of mutual funds to link Aadhaar number of mutual fund investors with their folios. The mutual fund investors will have to update their Aadhaar number before Dec 31, 2017.

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.