MF Weekly: Mutual funds garner Rs 5,900 cr in November through SIP

SMC | Dec. 19, 2017, 4:10 p.m.

Mutual  funds  garner  Rs  5,900  cr  in  November  through  SIP

Retail investors are preferring systematic investment plan (SIP) option for investing in mutual funds, with the industry garnering around Rs 5,900 crore  through  the  route  in  November ,  an increase  of 52 per cent  from  the  year-ago  period. With  this,  the  total  money garnered by fund houses  through  SIPs  has  touched  Rs  40,780  crore  in  the  first  eight  months of  the  current  fiscal,  according  to  the  Association  of  Mutual Funds  in India  (Amfi)  data.  In  comparison,  Rs  27,468  crore  was  collected  through  the  investment  plan  in  April-November  2016-17.

The  total  folio  count  at  the  end  November  was  6.49  crore

The total folio count at the end November was 6.49 crore, 2.7 per cent higher compared with October , according to data from the Sebi.  The mutual fund  industry  added close to  17.56 lakh  new folios  in  the  month out of which 12.24 lakh  were in  the  equity category (including  ELSS). Other ETFs as a category also witnessed phenomenal growth in  folio  count mainly due to  the  NFO of a particular ETF that  received  very good response from investors. However , folio count in Income, Gilt, Gold ETFs and Fund of Funds investing overseas witnessed de-growth from October-end levels.  The  fall  in  folio  count  in  debt  categories  could  be  because  investors  are  preferring  equity  over  debt  as  there  are  concerns relating  to  fiscal  deficit  and  rising  inflation,  the  report  said.

ICICI  Pru  Balanced  Advantage  Fund  cuts  equity  pie  to  3-year  low

The largest product among mutual funds' dynamic asset allocation schemes, which invest in a mix of shares and bonds, has cut the equity exposure in  its  portfolio to the lowest  in  almost three years amid concerns over elevated stock valuations. Stock holdings of ICICI Prudential Balanced  Advantage  Fund  fell  to  35.41%  of  the  Rs22,845  crore  it  managed in  November  2017  from  a  high  of  76%  in  Feb  2016.  The  equity  exposure in  the  scheme  now  is  the  lowest  since  January  2015,  when the  fund  house  had  reduced  it  to  34.3%.  Dynamic asset  allocation  funds  change  the debt and equity proportion in  the portfolio based on market valuations. When stock valuations are high, these funds  reduce exposure to this asset class.  The total  money this  category manages now is  about Rs 30,000 crore. ICICI  Prudential  Balanced  Advantage Fund uses price-to-book value  (P/B)  ratio  of stocks  to  decide its  equity allocation. Currently ,  the  P/B ratio  of Nifty is  3.6 times  as against 2.81 in  February 2016, when the  fund's  exposure  to  stocks  was  76%.  Within  its  equity  investments,  the  fund  has  largely  stuck  to  large  caps  because  of  rich  valuations  in  mid- and  small-cap  stocks.

Rollover  of  ICICI  Prudential  Value  Fund  Series  5

ICICI  Prudential  Mutual  Fund  A  has  extended  the  maturity of  A  ICICI  Prudential  V alue  Fund  Series  5  A  by  400  days.  Subsequent  to  the  rollover  the scheme  shall  mature  on  February  12,  2019.  The  existing  maturity  date  of  the  scheme  is  January  08,  2018.

Launch  of  ICICI  Prudential  Value  Fund  Series  19

ICICI  Prudential Mutual Fund has launched  ICICI  Prudential V alue Fund Series 19. The New Fund Offer will open for  subscription on December 21,  2017  and  closes  on  January  04,  2018.

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