Mutual fund exposure to bank stocks at record Rs 1.44 lakh crore
Mutual fund managers continued to be bullish on bank shares, with their allocation to the sector reaching an all time-high of over Rs 1.44 lakh crore at the end of May, mainly due to cheaper valuations. In comparison, the figure was Rs 90,014 crore at the end of May 2016. Banking continues to be the most preferred sector with the fund managers as they cannot afford to take a bearish call on banking stocks, given the high weightage attached to the index. Sebi's decision on restructuring in stressed firms comes against the backdrop of the government and the Reserve Bank of India (RBI) stepping up efforts to tackle the menace of bad loans, amounting to more than Rs 8 lakh crore. Overall, the deployment of equity funds in bank stocks stood at Rs 1,43,704 crore at the end of May 2017, compared to previous high of Rs 1,34,596 crore in the preceding month, latest data available with Sebi showed.
Investors Pull Out Nearly Rs. 41,000 Crore From Mutual Fund Schemes In May
Investors have pulled out nearly Rs. 41,000 crore from various mutual fund schemes in May, with liquid funds witnessing most of the outflows. This comes following an inflow of about Rs. 1.51 lakh crore in the preceding month. According to data by Amfi, a net sum of Rs. 40,711 crore has been pulled out from mutual funds in May, as compared to Rs. 1,50,703 crore in the preceding month. After taking into consideration the latest outflow, total investment in mutual fund schemes stood at Rs. 1.10 lakh crore in the first two months of the current fiscal. Individually, liquid funds or money market category -- with investments in cash assets such as Treasury Bills, certificates of deposit and commercial paper for shorter horizon -- witnessed an outflow of Rs.64,692 crore last month. However, equity and equity linked saving scheme (ELSS) saw an infusion of Rs. 10,790 crore. Besides, balanced and income funds witnessed an inflow of Rs. 7,663 crore and Rs. 5,124 crore respectively. The outflow has pulled assets under management (AUM) of all the active 42 fund houses toRs. 19.04 lakh crore at the end of May, from Rs. 19.36 lakh crore at April-end.
Birla Sun Life AMC launches close-ended equity scheme
Birla Sun Life Asset Management Company (BSLAMC) said it has launched a close-ended equity scheme with a tenure of 3.5 years . The product - Resurgent India Fund-Series 4 - is a close-ended equity scheme with a tenure of 3.5 years from and including the date of allotment, the company, a part of Aditya Birla Financial Services (ABFS), said. BSLAMC is also the investment manager for Birla Sun Life Mutual Fund (BSLMF). The New Fund Offer (NFO) opens for subscription on June 23 and closes on July 7 with the price of units of the scheme fixed at face value of Rs 10 per unit. The product aims to generate capital appreciation by investing primarily in equity and equity-related securities (including options premium), that are likely to benefit from recovery in the Indian economy.
Exit Load change in IDFC Money Manager Fund
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IDFC Mutual Fund has decided to change the exit load of IDFC Money Manager Fund - Investment Plan with effect from June 22, 2017. Now, the fund will not charge any exit load. While earlier, it was charging an exit load of 0.25% if redeemed within one month from the date of allotment.