Mutual Fund News

The NFO (new fund offer) period for the Bandhan Innovation Fund is open from April 10th to April 24th, 2024. Investors can invest with a minimum amount of Rs 1,000 and there is no upper limit on investment. The scheme comes with no entry load fees, but an exit load of 0.5% applies if redeemed or switched out within 30 days of allotment.

The fund seeks to invest in innovative companies across various sectors for long-term growth. It will target leaders in innovation (constantly innovating), rising innovators (promising new ideas), and emerging innovators (early-stage companies adopting new models). The focus is on companies with strong brands, high growth potential, unique products or services, significant investment in research and development, high skilled employee cost, and innovative business models. This includes sectors like technology, finance, and healthcare.

The performance of the Bandhan Innovation Fund will be benchmarked against the NIFTY 500 TRI, a broad market index that reflects a large portion of the Indian market capitalisation.

Manish Gunwani (equity), Brijesh Shah (debt), and Ritika Behera (overseas) will manage the scheme. The fund carries a Very High Risk designation as per the scheme information document.

PGIM India Arbitrage Fund:

Regular Plan ? Monthly IDCW Option: 0.0437

Direct Plan ? Monthly IDCW Option: 0.0441

PGIM India Hybrid Equity Fund:

Regular Plan ? Monthly IDCW Option: 0.1751

Direct Plan ? Monthly IDCW Option: 0.1915

PGIM India Equity Savings Fund:

Regular Plan ? Monthly IDCW Option: 0.0726

Direct Plan ? Monthly IDCW Option: 0.0789

Change in Fund Management Responsibilities:

Equity AUM Up in March Despite Market Dip

Total AUM across all asset management companies (AMCs) saw a 2.39% decline last month, dropping from Rs 55.86 lakh crore in February 2024 to Rs 54.52 lakh crore in March 2024. However, equity AUM defied the trend, registering a positive growth of 2.39%, reaching Rs 34.08 lakh crore last month from Rs 33.28 lakh crore in February. This indicates investor confidence in the stock market's long-term prospects.

AMCs Navigate Market Volatility Differently

Individual AMCs navigated the market fluctuations with varied success. SBI Mutual Fund, for instance, maintained a steady equity AUM growth (+2.71%) despite a slight dip in total AUM (-0.11%). ICICI Prudential Mutual Fund stood out with an impressive 4.83% increase in equity AUM, even though their total AUM decreased by 1.40%.

Individual AMC Performance in terms of overall AUM:

- SBI Mutual Fund (MF): SBI MF experienced a marginal decrease in AUM from Rs 9,20,524 crore to Rs 9,19,520 crore, representing a small decline of Rs 1,004 crore or 0.11%.

- ICICI Prudential Mutual Fund (MF): ICICI Pru MF's AUM dropped from Rs 7,27,022 crore to Rs 7,16,868 crore, indicating a decrease of Rs 10,154 crore or 1.40%.

- HDFC Mutual Fund (MF): HDFC MF saw a reduction in AUM from Rs 6,29,740 crore to Rs 6,14,665 crore, marking a decline of Rs 15,074 crore or 2.39%.

- Nippon India Mutual Fund (MF): Nippon India MF experienced a decrease in AUM from Rs 4,42,963 crore to Rs 4,38,277 crore, showing a drop of Rs 4,687 crore or 1.06%.

- Kotak Mutual Fund (MF): Kotak MF's AUM decreased from Rs 3,89,748 crore to Rs 3,81,240 crore, indicating a decline of Rs 8,509 crore or 2.18%.

Individual AMC Performance in terms of equity AUM value:

- SBI Mutual Fund (MF): SBI MF's Equity Value rose from Rs 6,27,257 crore to Rs 6,44,259 crore, indicating an increase of Rs 17,002 crore or 2.71%.

- ICICI Prudential Mutual Fund (MF): ICICI Pru MF saw a significant growth in Equity Value from Rs 3,85,478 crore to Rs 4,04,090 crore, marking an increase of Rs 18,612 crore or 4.83%.

- HDFC Mutual Fund (MF): HDFC MF's Equity Value increased from Rs 3,50,525 crore to Rs 3,54,966 crore, showing a growth of Rs 4,441 crore or 1.27%.

- Nippon India Mutual Fund (MF): Nippon India MF experienced an increase in Equity Value from Rs 2,81,113 crore to Rs 2,88,684 crore, representing a rise of Rs 7,572 crore or 2.69%.

- Kotak Mutual Fund (MF): Kotak MF's Equity Value grew from Rs 2,12,642 crore to Rs 2,19,400 crore, indicating an increase of Rs 6,758 crore or 3.18%.

Q4 2024 Sees Positive Growth

Looking at the broader picture, the average AUM for Q4 March 2024 witnessed a healthy 9.90% growth compared to Q3 December 2024. Similarly, the combined equity value for all AMCs in Q4 rose by 7.61% over Q3. This reinforces the industry's positive trajectory.

Individual AMC performance in terms of overall AUM (Q4 FY24 vs Q3 FY24):

- SBI Mutual Fund (MF): SBI MF's Average AUM rose from Rs 8,52,087 crore to Rs 9,15,902 crore, indicating an increase of Rs 63,815 crore or 7.49%.

- ICICI Prudential Mutual Fund (MF): ICICI Pru MF saw a substantial growth in Average AUM from Rs 6,41,297 crore to Rs 7,11,553 crore, marking an increase of Rs 70,257 crore or 10.96%.

- HDFC Mutual Fund (MF): HDFC MF's Average AUM increased from Rs 5,56,007 crore to Rs 6,17,678 crore, showing a growth of Rs 61,671 crore or 11.09%.

- Nippon India Mutual Fund (MF): Nippon India MF experienced a notable increase in Average AUM from Rs 3,80,049 crore to Rs 4,33,897 crore, representing a rise of Rs 53,848 crore or 14.17%.

- Kotak Mutual Fund (MF): Kotak MF's Average AUM grew from Rs 3,53,913 crore to Rs 3,84,007 crore, indicating an increase of Rs 30,094 crore or 8.50%.

A Promising Future

With continued investor participation and a stable market environment, the Indian mutual fund industry is well-positioned for further growth in both AUM and equity value.

HDFC Arbitrage Fund ? Wholesale Plan ? Regular Plan ? Normal IDCW Option (Payout & Reinvestment): 0.050

HDFC Arbitrage Fund ? Wholesale Plan ? Direct Plan ? Normal IDCW Option (Payout & Reinvestment): 0.050

HDFC Arbitrage Fund ? Wholesale Plan ? Regular Plan ? Monthly IDCW Option (Payout & Reinvestment): 0.050

HDFC Arbitrage Fund ? Wholesale Plan ? Direct Plan ? Monthly IDCW Option (Payout & Reinvestment): 0.050

Tata Equity P/E Fund ? Direct Plan IDCW - Option B (10) : 3.10

Sundaram Aggressive Hybrid Fund - Regular Plan-Monthly-IDCW Option: 0.250

Sundaram Aggressive Hybrid Fund - Direct Plan-Monthly-IDCW Option: 0.350

Sundaram Balanced Advantage Fund - Regular Plan-Monthly-IDCW Option: 0.080

Sundaram Balanced Advantage Fund - Direct Plan-Monthly-IDCW Option: 0.095

Change in the name of the Scheme:

Changes in the Schemes Benchmark Index:

Change in Fund Management Responsibilities:

Change in Fund Manager(s):

The new offerings include:

* Tata Nifty Auto Index Fund

* Tata Nifty Realty Index Fund

* Tata Nifty Financial Services Index Fund

* Tata Nifty MidSmall Healthcare Index Fund (Industry First)

* Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund (Industry First)

* Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund (Industry First)

Investors can participate in the New Fund Offer (NFO) for these schemes from April 8th to April 22nd, 2024, with a minimum investment of Rs 5,000.

Three of the new funds focus on sectors with high growth potential:

* Tata Nifty MidSmall Healthcare Index Fund: This fund tracks the performance of small and mid-sized healthcare companies in India.

* Tata Nifty500 Multicap India Manufacturing 50:30:20 Index Fund: This fund invests in large, mid, and small-cap companies from the Nifty 500 that are part of the manufacturing sector, aiming to capture the growth of Indian manufacturing.

* Tata Nifty500 Multicap Infrastructure 50:30:20 Index Fund: This fund provides exposure to large, mid, and small-cap companies involved in India's infrastructure development.

All the new funds offer investors the opportunity to invest across market capitalizations and benefit from the long-term growth potential of sectors such as healthcare, manufacturing, and infrastructure.

Data released by the Association of Mutual Funds in India (AMFI) revealed that the average AUM for the last quarter of FY24 (Q4FY24) stood at Rs 54.1 trillion, a significant jump from Rs 40.5 trillion in Q4FY23. This marks the 12th consecutive year of AUM growth for the MF industry.

SBI Mutual Fund retained its position as the leading fund house with an average AUM of Rs 9.1 trillion in Q4, reflecting a 27% increase compared to the same period in FY23. Among the top 10 AMCs, Nippon India MF emerged as the fastest growing, experiencing a phenomenal 47% surge in average AUM to Rs 4.3 trillion. Interestingly, Tata Mutual Fund, ranked in the top 15, led the pack with a near 50% gain in average AUM.

The sharp rise in MF assets since February 2023 can be attributed largely to mark-to-market gains in equity holdings. The benchmark Nifty 50 index rose by a significant 29%, marking its best year since the pandemic-induced slump in 2020-21. Additionally, broader market indices like Nifty Smallcap 100 and Nifty Midcap 100 witnessed impressive gains of 70% and 60%, respectively.

On the investor participation front, MFs garnered a net inflow of Rs 5.1 trillion in the first 11 months of FY24.

Change in Fund Management Responsibilities:

Change in Fund Management Responsibilities:

Change in Face Value of Units:

Tata Equity P/E Fund - Regular Plan ? IDCW Trigger ? Option B (10%): Rs 2.70

Change in exit load of UTI Retirement Fund:

Tata Equity P/E Fund - Regular Plan ? IDCW Trigger ? Option A (5%): Rs 1.48

Tata Equity P/E Fund - Direct Plan ? IDCW Trigger ? Option A (5%): Rs 1.63