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India Ratings (Ind-Ra) downgrades UTI Ultra Short Term Fund to ‘IND AAmfs’

Finance
India Ratings and Research (Ind-Ra) has downgraded UTI Ultra Short Term Fund’s National Fund Credit Rating to ‘IND AAmfs’ from ‘IND AAAmfs’. The fund has also been placed on Rating Watch Negative (RWN), said a statement by the rating agency on Thursday. The rating agency noted that the downgrade and RWN follows downward credit migration in one of the underlying investments of UTI Ultra Short Term Fund. The statement also said that Ind-Ra is closely monitoring the fund’s exposure to the investment that has seen a series of credit rating downgrades. The RWN indicates that rating may be either affirmed or downgraded on resolution. The RWN will be resolved after Ind-Ra achieves full clarity on the stability of the credit quality of the underlying investment. "The agency considers weighted a
Tax Arbitrage: The nudge to solve the current debt mutual fund crisis

Tax Arbitrage: The nudge to solve the current debt mutual fund crisis

Finance
By Somnath MukherjeeIt’s been the non-proverbial Ides of several months now for the credit markets. It started with the IL&FS default last year, but it has been a series of blow-ups since then — the latest being downgrades in two Reliance ADAG group companies. The most immediate impact has been on certain debt mutual funds (MF), that have been large investors in several companies that have come under stress. The most debilitating effect though isn’t about drop in prices — after all MFs are market instruments and subject to price volatility — it is about the absolute lack of liquidity in bonds that come under stress. Given that MFs, for most parts, are open-ended vehicles (i.e., unitholders have a right to withdraw their investments on demand), it is the appropriateness of MFs investing
Sebi to soon act decisively on the crisis in debt fund mart

Sebi to soon act decisively on the crisis in debt fund mart

Finance
By Ruchi BhatiaMarket regulator Sebi may could soon step into the crisis in debt mutual funds, after Kotak AMC and HDFC AMC rolled over some of their fixed maturity plans (FMP), putting investors' money at risk. Sources told ETNow that Sebi could soon unveil fresh directives to reign in mutual funds acting like banks. “Mutual funds are not banks. They do not have capital adequacy ratio like banks, neither do they have the adequate expertise to evaluate risks. So why should investors' money be put at stake,” said a Sebi official who is in the know of the development. ETNow learnt that the new directive will ensure higher disclosures in case of a default by companies and will also aim to cap exposure to debt securities of a single company. To ensure higher transparency and accountability b
ICICI Pru Mutual Fund launches Bharat Consumption Scheme

ICICI Pru Mutual Fund launches Bharat Consumption Scheme

Finance
ICICI Prudential AMC announced launched the ICICI Prudential Bharat Consumption Scheme. The Scheme aims to benefit from the Indian consumption story, considered as one of the fastest growing consumption markets globally. The benchmark for the Scheme is Nifty India Consumption Index and will be managed by Rajat Chandak and Dharmesh Kakkad. The overseas investments of the scheme will be managed by Priyanka Khandelwal. "Globally, it has been observed that the moment a country’s per capita GDP crosses $ 2,000*, there is a disproportionate rise in discretionary spending and India is poised to cross this milestone in 2019-20,” Nimesh Shah, MD & CEO, ICICI Prudential AMC, said on the launch of the scheme. “With the largest millennial population globally, India offers a growt...
Aditya Birla Sun Life Retirement Fund collects Rs 166 crore

Aditya Birla Sun Life Retirement Fund collects Rs 166 crore

Finance
Aditya Birla Sun Life AMC Limited had launched the Aditya Birla Sun Life Retirement Fund on February 19, 2019. The fund has collected Rs 166 crore in its NFO period, attracting investors from 241 locations from across the country. The fund in its NFO period that was open for two weeks garnered 23,743 applications, 42% of which are from B30 cities (beyond Top 30 cities) alone. Close to 40% of the applications have come through the SIP route, with a significant portion of it in Century SIP, ABSL MF’s offering of SIP with a life cover. The fund has also achieved in adding over 7,000 new customers to its existing investor base. The fund offers four investment options designed as per suitability of various age groups and different risk profiles of an individual that includes – The 30s pla