July 8, 2022
admin
Mutual fund houses to open NFOs soon
Mutual funds are preparing to launch new fund offers after a three-month pause that the SEBI imposed on them to comply with a new rule.
“The industry has complied with the regulator’s circular on discontinuing pooling client money for mutual fund transactions. The regulator will now permit new fund offers,” AMFI chairman A Balasubramanian said.
Since the industry could not meet the deadline by April 1 of discontinuing pool account usage for mutual funds due to operational hassles, Sebi extended the deadline to July 1. However, it barred mutual funds from launching NFOs till the time the industry complied with the rule. It also sought tighter authentication requirements when redeeming mutual funds with the objective of reducing the likelihood of fund houses misusing investor money.
The fund houses have given an undertaking to the regulator and industry body AMFI that all their distribution partners are compliant with the Sebi circular on pooling.
While a few asset managers have already announced NFOs, many more are expected to join in July and in August.
NFOs already announced :
1)Whiteoak Capital will be launching its maiden Whiteoak Capital Flexicap Fund, which will remain open for subscription July 12-26
2)Edelweiss NSE 0.76 % MF will be offering Edelweiss Focused Fund July 12-25.
3)SBI Mutual Fund has lined up a debt index fund and fixed maturity plan .
4)Mirae Asset Managers plans to launch the Mirae Asset Balanced Advantage Fund
The fund managers are happy that after the sharp correction in the market, they will find many good scrips available at attractive valuations. Money coming in will give them a chance to construct a solid portfolio for their mutual fund offerings.Even MF Distributors are confident that many of the investors who suffered big losses in crypto assets and direct equities will shift to mutual funds, especially through the NFO route.
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