#UTI Banking and PSU Fund

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UTI Banking and PSU Fund: A Stable Investment for Long-Term Growth

UTI Banking and PSU Fund, managed by UTI Mutual Fund, primarily invests in the banking, financial services, and public sector undertakings (PSUs) sectors. It offers investors exposure to a diversified portfolio of stable, well-established companies in these sectors. With a focus on steady returns and moderate risk, this fund is ideal for long-term investors seeking growth while benefiting from the resilience of banking and PSU funds, making it a smart choice within UTI Mutual Fund's offerings.

[itsmyuu]

Role of CEOs in the Mutual Fund industry & 4i strategy

Does the role of CEOs matter big in the mutual fund industry? Yes does, in a big way and the people should know why it does.The corner office occupants always play an important role in every industry and sector, marshaling their troops in the battles for market share and business almost on a daily basis. Mutual fund industry is not an exception on this for sure; but the role of the CEOs in mutual fund industry which is highly regulated, is exceptionally critical when compared to the other industries and sectors (non-financial) in many ways.

Unlike many industries, mutual funds industry is highly regulated and controlled just the way they are regulated the World over. Though not many CEOs are often visible in public and media due to the highly regulated nature of the sector and plus they aren't listed entities which do not make them interact as often as their listed counterparts, but their roles are much more critical than that of the other non financial industries and sectors, many of which are not regulated the way the mutual funds are.

The roles of the CEOs in the mutual fund industry have been evolving and transforming in a big way over the last 25 years, precisely since 1993 when the mutual funds industry was thrown open to the private and foreign players in this country, which was otherwise dominated by a handful of PSUs led by UTI. Ever since, the growth of the industry has been phenomenal, but even more phenomenal in the last 10 - 12 years or so, during the time the equity markets also scaled new peaks due to higher economic growth coupled with the rising awareness among the investors about mutual funds in India.

Pre-1993 era was largely dominated by UTI and few other PSU bank sponsored mutual funds, which more or less functioned in the old fashioned way, but the liberalization of the sector saw the entry of various categories of mutual funds, chief among them being private standalone, JVs, foreign, private bank sponsored making the industry highly competitive and much more transparent.The entry of the new players redrew the rules of the game drastically, thereby shaking up the entire foundations of the industry in a big way.

Many innovations in the fund industry ( such as daily NAV which are now common and taken for granted) came up post 1993, putting the fund industry at the forefront of a phenomenal growth trajectory over the next 25 years. What was an industry which just managed few thousand crores of assets as a whole has now grown to managing in excess of 23 lakh crores of investors wealth and that’s mind boggling growth by any measure.

Owing to the change in the industry dynamics, the roles of the CEOs also underwent massive changes during the growth phase. CEOs in the industry also came into the industry in different versions, from sales, investment, broking and banking backgrounds, each coming with different sets of skills, functioning in their own styles of management. Nevertheless the CEOs are always on a tight spot in the industry considering the pressure from all the sides, be it investors, promoters, various stakeholders along with the usual peer pressure. Since the industry handles the money of the investors, the responsibility of that lies with the CEOs of the mutual funds, though there are layers of accountability at various levels as mandated by the regulator. But eventually the buck stops at the CEO, by being the head of the organization.

Importance of CEO's role in the mutual fund industry can be evaluated and measured on number of parameters, but largely they stand on the success of four pillars called 4i strategy.

4i strategy - 4i stands for Investors, Investment process, Intermediaries and Individuals

Investors: CEO's role always should and will primarily be centered around the investors and their interests, who put in not just their money, but their trust and faith in the mutual fund house. And this industry caters to several lakhs of retail investors who chip in their savings for better returns. 'Customer first' approach is paramount for any CEO, but in the mutual funds industry, keeping customers satisfied on host of factors such as fund performance, customer service and other things play a vital role in the success of a fund house.

Investment process: Investment process is unique to this industry, for the simple reason that the fund houses manage lakhs of crores of investors money. Though the industry is well regulated and well monitored, both by external agencies and internal checks and balances, losing sight on the investment process can cost a great deal for the mutual fund houses. Eventually the returns alone do not matter, but the means and ways of achieving those returns matter the most. Successful CEOs always know that keeping a hawk's eye on the investment process is extremely important for all the stakeholders of the fund.

Intermediaries: Play a vital link in the business value chain of the mutual fund industry. With a network of intermediaries spread far and wide, across various categories and geographies, they bring in the investors to the mutual fund fold on an incremental basis, talking to them on a day in day out basis. Keeping the intermediaries in the loop in the ever changing industry dynamics becomes all the more important for the simple reason that they spread the message of the fund houses to wide section of the investors.

Individuals: This industry specializes on having highly skilled individuals across various functions - managing funds, designing products, selling funds, servicing the customers to name a few. Developing the right talent and nurturing it plays a vital role not just for the success of the organization, but for the entire industry.  

Of course, the CEOs have the pressure to constantly work on their firm’s market share and profit generation as part of their core, but just by effectively following the basics of managing the 4i has put the best of them in the pedestal in the industry. If we look at some of the successful CEOs in the industry who have been around for a long time, their success mantras have always been due to the effective management of the 4i and the fruits of market share have always followed the 4i. With the industry poised for a quantum leap in terms of assets growth, the success of the CEOs will continue to center around the 4i strategy which will continue to lead the transformation of the industry led by the elite club of corner office occupants!

V Gopalakrishnan

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Sebi fines SBI, LIC, BoB over MFs

Sebi fines SBI, LIC, BoB over MFs

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TNN Mumbai: Markets regulator Sebi has fined banking major SBI, life insurance major LIC and PSU lender Bank of Baroda Rs 10 lakh each for holding more than 10% share in UTI Mutual Fund in addition to the holding majority stake in fund houses promoted by them. Sebi said that in March 2018, it had amended the holding norms for fund houses. Subsequently, it had given these entities a year…

[mutualfundsshares]

SBI Fixed Maturity Plan (FMP) – Series 12 (1179 days) – Direct and Regular

SBI Mutual Fund FMP Plan

 SBI Mutual Fund's new store offer is named as SBI Fixed Maturity plan (FMP) – Series 12 (1179 days). It is a shut finished value plot putting resources into Debt and Money Market instrument/government protections.

 Subtleties of SBI Fixed Maturity Plan (FMP) – Series 12 (1179 days)

 Store House SBI Mutual Fund

 Benchmark CRISIL Medium Term Debt

 Riskometer Moderate

 Type Closed-end

 The Fund house is opened for membership on 09 July and will close on fifteenth July 2019. The SBI FMP venture objects of the plan are to furnish standard salary and capital development with restricted loan fee hazard to the financial specialists. It will be conceivable through interests in a portfolio containing obligation instruments, for example, Government protections, PSU corporate securities, and Money Market Instruments.

 The proposal of units will accessible at Rs 10 for each unit during the new Fun offer. The M least Application Amount is Rs. 5,000/ - and in products of Re. 1/ - from there on. There is no furthest breaking point for the most extreme add up to be raised or gathered during the NFO time frame. Section burden and leave load don't exist for anybody. The plan doesn't offer a proceeding with premise to proceed or re-buy the assets. The benchmark file of the plan is CRSIL medium Term Debt record.

 Speculation Details

 Dispatch Date July 16, 2019

 Return Since Launch 0.95%

 Residency (Days) 1179

 Development Date October 06, 2022

 The plan would have two plans Direct and Regular plans.

 Direct Plan:

 The immediate arrangement is just for the financial specialists who have chosen to buy units in a plan legitimately without talking with a merchant or financier. They can contribute units through an enrolled venture counselor or straightforwardly with the Mutual store. Different highlights of the plan like speculation objective, resource designation design, venture technique, chance components, offices offered, load structure will be the equivalent for immediate and normal financial specialists.

 Qualified Investors for Direct Plan:

 All classes of speculators qualified to buy in to the plan under the immediate arrangement.

 Ordinary Plan:

 The financial specialists who will buy units through any wholesalers those applications ought to be considered under the Regular arrangement.

 Note:

 On the off chance that an application ought to submit with wrong/invalid/inadequate ARN code that application will be handled under the Regular Plan. The AMC will contact or gather the right ARN code inside 30 schedule day of the receipt of use from the Investor or Distributor. In Case, the won't gather the right code inside 30days, it will return cash under the immediate arrangement with no leave load.

 Development and Dividend

 Under the SBI FMP plot, the two plans have two alternatives Growth and Dividend choices. The Dividend office will have Payout and move. Profit move will accessible for just NFO speculators. They can move the profit proclaimed in the plan of any open-finished SBI MF.

 SBI Fixed Maturity plan (FMP) – Series 12 Asset Allocation Pattern

 Instruments Indicative Allocations (% of absolute assets)Minimum – Maximum Risk Profile

 Debt 70% 100% Low to Medium

 Currency Market Securities 0% 30% Low to Medium

 About the Company:

 SBI Mutual Fund is a supported store house with its corporate base camp in Mumbai, India. It is a business venture embraced mutually by state bank of India, an Indian worldwide, open segment banking and budgetary administrations organization. SBI turned into the first Non-UTI Mutual Fund in Quite a while. Resources under administration of SBI Mutual Funds have esteemed at Rs. 2,33,114 crores in 2018.

 Disclaimer: This article connotes data about the plan. It doesn't offer any guidance or proposal. Common Fund speculations are managed to showcase chance. If it's not too much trouble read the offer archive cautiously before contributing.

[bigyack-com]

Govt unlikely to announce capital infusion for PSU banks in Budget - business news

The government is unlikely to announce capital infusion for the public sector banks (PSBs) in the upcoming Budget and will rather encourage them to expedite recovery of bad loans and raise funds from the market.Besides, sources said, banks may also look for divesting or selling their non-core business as part of fund raising exercise during 2020-21.Finance Minister Nirmala Sitharaman is expected to present the second budget of the Modi 2.0 government on February 1.According to sources, banks have robust pipeline of recovery from the resolution of both NCLT and non-NCLT cases during this calender year and also headroom for raising capital from the market. The provision coverage ratio of public sector banks is at a 7-year high of 76.6 per cent. In some of the non-performing assets, banks have done provisions up to 100 per cent, sources said, adding that recovery from those account will straightaway form part of the bottomline. Share price of some of the banks are firming up which provide them opportunity to dilute government holding, sources said. Country’s largest lender State Bank of India (SBI) has already initiated the process of diluting its stake in its subsidiaries SBI Cards and Payment Services Ltd and UTI Mutual Fund. It is looking to sell 50 lakh shares representing 1.01 per cent stake in the National Stock Exchange (NSE).Similar exercise is being undertaken by other state-owned lenders as well in an effort to raise capital. In addition, the government has already front loaded Rs 68,855 crore, out of Rs 70,000 crore earmarked for capital infusion for the current fiscal, to take care of the mega-merger plan announced in August, 2019.Among all four anchor banks -- Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Merging entities like Allahabad Bank was provided Rs 2,153 crore, United Bank of India 1,666 crore and Andhra Bank Rs 200 crore. Besides, Bank of Baroda got a capital infusion of Rs 7,000 crore, Indian Overseas Bank Rs 4,360 crore, UCO Bank Rs 2142 crore, Punjab & Sind Bank 787 crore and Central Bank of India Rs 3,353 crore. LIC-controlled IDBI Bank too received additional capital of Rs 4,557 crore through the first supplementary demands for grants approved by Parliament last month. With the deadline of March 31 to complete other regulatory requirements, the merged entity will come into existence beginning next fiscal. Alternative Mechanism of Government of India gave in principle approval for merger of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).Syndicate Bank will be merged with Canara Bank, while Allahabad Bank will be amalgamated with Indian Bank.Similarly, Andhra Bank and Corporation Bank will be consolidated with Union Bank of India. The government remains committed to maintain financial health of public sector banks and it will provide capital in case if the need arises in the future, sources added. Read the full article

[sagar-jaybhay]

Exchange Traded Funds (ETF)

New Post has been published on https://sagarjaybhay.in/exchange-traded-funds-etf/

Exchange Traded Funds (ETF)

Exchange Traded Funds By Sagar Jaybhay

Exchange listed Funds are basically Index Funds that are listed and listed on exchanges like stocks. till the event of ETFs, this wasn’t attainable before. Globally, ETFs have opened a full new panorama of investment opportunities to Retail likewise as Institutional cash Managers. they allow investors to realize broad exposure to entire stock markets in several Countries and specific sectors with relative ease, on a period basis and at a lower value than several different sorts of finance.

An ETF could be a basket of stocks that reflects the composition of associate Index, like S&P CNX swell or bseSensex. The ETFs mercantilism price relies on net quality price of the underlying stocks that it represents. think about it as a open-end investment company that you simply should purchase and sell in period at a value that amendment throughout the day.

What are benefits of ETFs?

ETFs provide many benefits to investors: –

1. will simply be bought / sold like every different stock on the exchange through terminals across the country.

2. is bought / sold anytime throughout market hours at a value getting ready to the particular NAV of the theme.

3. No separate kind filling. simply a telephony to your broker or a click on internet.

4. Ability to place limit orders.

5. Minimum investment is one unit.

6. fancy flexibility of a stock and diversification of open-end fund.

7. Expense magnitude relation is lower.

8. Provides arbitrage between Futures and money Market.

ETF’s In India List

IDBI Gold Exchange Traded FundUTI Gold Exchange Traded FundInvesco India Gold ETFKotak Gold ETFICICI Prudential Gold ETFSBI – ETF GoldBirla Sun Life Gold ETF (G)Axis Gold ETFQuantum Gold FundHDFC Gold Exchange Traded FundReliance ETF Gold BeESReliance ETF Long Term GiltCan Gold Exchange Traded FundLIC G-Sec LTE Fund – RP (G)SBI-ETF 10Y GiltEdelweiss ETS – BankingReliance ETF Bank BeESSBI – ETF Nifty BankKotak Banking ETFKotak NV 20 ETFReliance ETF NV20ICICI Prudential NV20 ETFReliance ETF PSU Bank BeESKotak PSU Bank ETFMotilal MOSt Oswal NASDAQ 100 ETFReliance ETF Infra BeESLIC MF ETF – SensexReliance ETF SensexICICI Pru SPIcE PlanUTI Sensex Exchange Traded FundSBI – ETF SensexHDFC Sensex ETFKotak Sensex ETFEdelweiss ETS – Nifty (Nifty EES)SBI – ETF Nifty 50IDFC NIFTY ETFReliance ETF Nifty BeESUTI Nifty Exchange Traded FundHDFC Nifty 50 ETFInvesco India Nifty ETFQuantum Nifty ETF (G)LIC MF ETF – CNX Nifty 50ICICI Prudential Nifty ETFKotak Nifty ETFMotilal MOSt Oswal M50 ETFABSL Nifty ETFReliance ETF Hang Seng BeESSBI – ETF BSE 100ICICI Prudential Nifty 100 ETFLIC MF ETF – Nifty 100Reliance ETF Nifty 100Reliance ETF Shariah BeESReliance ETF Liquid BeESReliance ETF Dividend OpportunitiesCPSE Exchange Traded FundSBI – ETF Nifty Next 50Reliance ETF Junior BeESICICI Pru Midcap Select ETFEdelweiss ETF – NQ30Reliance Close Ended Eqty-Sr-A (G)Motilal MOSt Oswal Midcap 100 ETFReliance ETF ConsumptionR*Shares Gold ETFR*Shares Nifty ETFIIFL Nifty ETFR*Shares Banking ETF

[toldnews-blog]

New Post has been published on https://toldnews.com/business/ilfs-spv-downgrade-hits-6-debt-mf-schemes/

IL&FS SPV downgrade hits 6 debt MF schemes

MUMBAI: Six debt mutual fund schemes from three MF houses have been placed under a ratings watch with negative implications by ICRA for their exposure to debentures issued by special purpose vehicles (SPVs) of troubled infrastructure financing company IL&FS.

The decision came after a downgrade of these SPVs to ‘default’ by Crisil after they halted repayments citing a court-ordered moratorium on all payouts by IL&FS group firms to their debtors.

Earlier this month, two SPVs floated by IL&FS had decided to hold back payments despite generating enough cash. The decision triggered a ratings downgrade to ‘default’ by Crisil this week. “Crisil rates two IL&FS SPVs — North Karnataka Expressway (NKEL) and Jharkhand Road Projects Implementation (JRPICL). While JRPICL has halted repayments, NKEL has not. As the matter is sub judice, we will await clarifications from NCLAT on the moratorium and, subsequently, take appropriate rating action on other SPVs wherever warranted,” said Crisil ratings director Subodh Rai.

Incidentally, ICRA is one of the three ratings agencies that had failed to detect financial weakness at IL&FS before it defaulted and severely affected the country’s financial market last September. The other two ratings agencies are India Ratings and CARE. The six MF schemes that have been placed under ratings watch are HDFC Short-Term Debt Fund, HDFC Banking & PSU Debt Fund, UTI Banking & PSU Debt Fund, UTI Bond Fund, UTI Dynamic Bond Fund and Aditya Birla Sun Life Short-Term Opportunities Fund, a release from ICRA said. “The rating action takes into account the deterioration in the credit quality of the underlying investments of these schemes driven by their exposure to SPVs of IL&FS… Hazaribagh Ranchi Expressway (HREL), JRPICL or Jorabat Shillong Expressway (JSEL). The default risks by various SPVs of IL&FS have increased given the recent communication by their management to trustees to stop future repayments, citing their interpretation of an order given by the NCLAT on October 15, 2018,” ICRA said.

Speaking to TOI, a top official at one of the fund houses said, “The ratings decision does not reflect on the cash flow situation of the fund houses or the schemes. It (ICRA’s decision) was because of exposure to one of the highway subsidiaries of IL&FS. But because of NCLAT instructions, all types of cash outgo from the IL&FS group are now under moratorium. There is no logic behind this interpretation and fund houses will find legal solutions to this problem.”

[digitaltariq]

Markets regulator Sebi fines SBI, LIC, Bank of Baroda over Mutual Funds | Business

Markets regulator Sebi fines SBI, LIC, Bank of Baroda over Mutual Funds | Business

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Aug 15, 2020, 03:15PM ISTSource: TOI.in

Markets regulator Sebi has fined banking major SBI, life insurance major LIC and PSU lender Bank of Baroda Rs 10 lakh each for holding more than 10% share in UTI Mutual Fund in addition to the holding majority stake in fund houses promoted by them. Sebi said that in March 2018, it had amended the holding norms for fund houses. Subsequently, it had…

[supervidyavinay]

PIGIM India Short Maturity Fund is offering eye-popping 17% returns in the last one year. The returns are more than double the average returns offered by the short duration category. The scheme is ahead of its peers by a wide margin. ETMutualFunds.com spoke to Puneet Pal, Deputy Head-Fixed Income, PGIM India Mutual Fund, to find out how the scheme managed this remarkable feat. We also asked him about the recent developments in the debt mutual fund space, and for his advice to debt mutual fund investors. Read the edited interview.PGIM India Short Maturity Fund is offering 17% returns in the last one year? The returns are far ahead of the category average return of 7.79% in the same period. UTI Short Term Fund, ranked second in the short duration category, is offering around 13%. What is the reason behind this extraordinary performance?The fund was able to ride the fall in yields over the last one year. We have seen yields coming down significantly over the last one year, aided by rate cuts and liquidity infusion by RBI. The operational rate has shifted to the reverse repo rate, a fall of 240 basis points in the last one year. AAA PSU Bond yields have mirrored the fall in the policy rates and have fallen by about 240 basis points.We have been maintaining a very good portfolio quality, supported by our internal rating process, which has helped the fund to avoid credit-related losses. So, I will say that superior security selection, which is supported by a robust credit evaluation process and the right duration calls, helped the performance of the fund.The scheme had a rough patch in September 2019, when it fell sharply and also recouped most of the losses. It must have been a roller-coaster ride for the fund house and investors. Can you take us through that period?We had an exposure to an SO (Structured Obligation) security, where the valuation yield went up as the credit yields were generally going up in the market but as the security was maturing in a short span of time, the fund gained when the security matured. We were proactive in our communication to our investors / distributors to keep them updated on the short-term developments to enable them to remain invested in the fund during this period.The scheme is sitting on a large cash pile of around 26%. What is the rationale behind this?We had maintained a slightly higher proportion of cash in the portfolio at the end of last month, as we booked some profits on the back of the RBI rate cut on 22nd May 2020. Also , given that June is the quarter end, traditionally there are some outflows. So, it was a combination of profit booking and preparing for some outflows related to the quarter end that led us to keep more cash.Do you think short duration funds like PGIM India Short Maturity Fund are likely to benefit from the softer rate regime? Even Fed is expecting near zero rate for the next two years?Yes, we expect shorter maturity funds to continue to perform well from the softer interests rate regime. Given the disruption caused by the COVID19 pandemic, we expect rates to remain low in the developed markets, also indicated in the recent US Federal Reserve meeting. The scenario of ultra low to negative Interest rates in the developed markets along with the humongous amount of liquidity infusion by the central banks, will have a rub-off effect on emerging markets, including India.Most money market analysts are not hopeful for further easing of rates in India. What is your view?We continue to expect further easing from RBI to the extent of 25-50 basis. We expect RBI to cut rates towards the end of the year. Our view is based on the fact that India is going to see a contraction in growth this year. RBI has also acknowledged this fact in the last MPC meeting. Given the backdrop of contraction in GDP growth and the fact that we are constrained to give a meaningful fiscal stimulus to the economy, the monetary policy will have to provide more stimulus to the economy.The debt mutual fund space is going through a tough phase. Most investors are wary of investing in debt funds. What would you recommend to conservative investors looking to park money for a short to medium horizon?We would recommend that conservative investors should invest in good quality portfolios with low duration risk . Good quality short maturity funds and banking & PSU funds with moderate duration should be able to give better risk-adjusted returns over a medium-term horizon. We expect further easing of rates from RBI and given that the credit cycle is still not out of the woods, a low duration good credit quality portfolio is an ideal bet for a conservative Investor. from Economic Times https://ift.tt/3hibs6Z

[mutualfundsshares]

SBI FMP Series 16(1116 Days): NFO Period from 13th Aug-19th Aug

SBI MF Launches New NFO Under Fixed Maturity Plan

 SBI Mutual Fund trustee organization has propelled its sixteenth arrangement of new reserve offers. The name of the NFO is SBI FMP Series 16(1116 Days). The plan has planned for membership on thirteenth August this year. It will close on nineteenth August 2019. It is a nearby finished obligation plot.

 Contribute at least Rs 5000 and in products of Re.1 from there on. The Additional buy sum and repurchase sum isn't required for this plan. The Scheme offers a residency of 1116 days with moderate hazard.

 The plan doesn't offer on a consistent base, and there would not be any passage burden and leave load. It offers immediate and customary plans with profit and development alternatives.

 The target of the plan:

 The essential target of the plan to furnish standard pay and capital development with restricted financing cost hazard to the speculators through interests in a portfolio including obligation instruments like Government protections, PSU and Corporate securities and currency advertise instruments developing at the very latest the development of the plan.

 SBI FMP Series 16(1116 Days) Asset Allocation Pattern

 Instruments Indicative Allocations (% of complete assets)Minimum-Maximum Risk Profile

 High/Medium/Low

 Debt 60% 100% Low to Medium

 Currency Market Securities 0% 40% Low to Medium

 The SBI FMP Series 16(1116 Days) NFO execution will be the benchmark against Crisil Medium Term Debt Index. The store will oversee by Ms. Ranjana Gupta.

 SBI Mutual Fund is a supported reserve house with its corporate home office in Mumbai, India. It is a business venture attempted mutually by state bank of India, an Indian global, open area banking and money related administrations organization. SBI turned into the first Non-UTI Mutual Fund in Quite a while. Resources under administration of SBI Mutual Funds have esteemed at Rs. 2,33,114 crores in 2018.

 Disclaimer: This post is only data about the plan. It doesn't offer any guidance or suggestion. Shared Fund ventures are directed to showcase hazard. If it's not too much trouble read the offer record cautiously before contributing.