Mutual Fund Schemes Count May Limit In This Fiscal
Mutual funds have earned endless demand among investors. It is one of the best investment choices in India. As of the expert’s analysis, the mutual fund scheme may vary its instructions due to several causes. Investors can make investments in Mutual Funds via the SIP and Lump Sum investment method. But, Sebi received only 125 new fund offer documents from mutual fund houses in the current fiscal which is less than to the previous record. As of the data, the fund houses filed up to 211 draft papers in the last fiscal 2018. Moreover, the fund houses allocate a small number of NFOs in 2019 to uninterested investors’ opinions and liquidity problems in debut funds. There are only two months for the end of this year. Do you have any about the future demand in mutual funds? Let’s see what will happen in the next 2 months.
According to the report, the Securities and Exchange Board of India has received the draft papers from 5 categories of schemes, such as a Fixed maturity plan, Business cycle fund, Exchange-traded fund, retirement, and Sustainable equity fund. Moreover, the fund houses also planning to file draft papers under Index funds and global funds.
As of Sebi analysis, the mutual fund houses have been submitted 125 new fund offer documents with Sebi till 31st October 2019. In these, a few schemes have received clearance from Sebi. Moreover, these schemes also launched.
A mutual fund distributor said that the investment advisers and experts observe that several new fund offers (NFOs) are higher when the market is in good and lower when the markets are decreasing.
He also added that in the last year, most of the equity funds have not been performed well in the market. Especially, mid and small-cap funds have under-performed. Moreover, debt funds also faced the same problem. This is one of the main causes of decreasing the count in New Fund Offers (NFOs), said a source.
Mutual Fund Houses Files 125 New Fund Offer Documents (SID)With Sebi
In fiscal 2019, Axis Mutual fund, ICICI Prudential, UTI, SBI, Aditya Birla Sun Life, Edelweiss, and Reliance mutual fund houses have submitted new fund offer documents with Sebi.
Axis mutual fund plans to launch the Axis Greater China Equity Fund. It has already submitted scheme information documents with Sebi. But, Sebi did not respond to the Axis mutual fund’s request, said a source. Through this scheme, the Axis fund house tries to provide capital growth by investing in equity and equity-related instruments of China, Hong Kong, and Taiwan.
On the other hand, BNP Paribas and Mahindra Mutual Fund Houses also filed information documents with the Securities and Exchange Board Of India. BNP Paribas and Mahindra MF filed documents for BNP Paribas Global Disruptive Technology Fund and Mahindra Top 250 Nivesh Yojana Scheme.
BNP plans to invest in global companies. Because of these companies earned profit from innovative technologies such as artificial intelligence, robotics, and cloud computing.