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Business Standard
2 days ago
- Business
- Business Standard
Aditya Birla Sun Life MF launches two new index funds: Who should invest?
Aditya Birla Sun Life Mutual Fund has launched two new factor-based index funds - Aditya Birla Sun Life BSE 500 Momentum 50 Index Fund and Aditya Birla Sun Life BSE 500 Quality 50 Index Fund. The New Fund Offer (NFO) for both funds opened for subscription on Monday, July 21, 2025, and will close on Monday, August 4, 2025. The BSE 500 Momentum Index Fund is an open-ended scheme replicating the BSE 500 Momentum 50 Total Return Index (TRI). The scheme will invest in the top 50 stocks from the BSE 500 with the strongest price momentum. On the other hand, the Quality 50 Index Fund will invest in 50 companies from the BSE 500 with stable earnings, high return on equity, and low debt. A Balasubramanian, managing director and chief executive officer at Aditya Birla Sun Life AMC, said that these twin fund launches are aimed at enabling investors to diversify their core equity portfolios with factor-based strategies that have proven performance across market cycles. "While the Momentum Index offers exposure to higher-return opportunities in fast-growing segments of the market, the Quality Index focuses on stocks with resilient earnings and a layer of stability against drawdowns. With India poised for sustained economic growth, both strategies offer a timely and complementary approach to long-term investing. Investors may choose either fund or a combination of both funds based on their investment horizon, risk tolerance, and return expectations,' he added. Priya Sridhar will be the designated fund manager for both schemes. According to the scheme information document (SID), the minimum amount required for investment in both the schemes is ₹500 and in multiples of ₹100 thereafter during the NFO period. For monthly and weekly SIP, the minimum amount is ₹500 and in multiples of ₹1 thereafter in both the funds. For both schemes, an exit load of 0.10 per cent of the applicable NAV will be levied on redemptions or switches made within 15 days from the date of allotment. However, no exit load shall be charged on or after the 16th day from the date of allotment. Who should invest in these funds? According to the AMC, the BSE 500 Momentum 50 Index Fund is designed for investors with a higher risk appetite looking to maximise upside capture in trending markets. It benefits from exposure to top-performing stocks and sectors, and stocks with a proven return record over a 12-month horizon. On the other hand, the BSE 500 Quality 50 Index Fund is suitable for investors seeking long-term wealth creation through investments in high-quality names with a stable balance sheet and lower volatility in earnings. These stocks tend to perform better during market downturns and provide good upside in recovery phases, the company said. According to the risk-o-meter, the funds invested in both schemes will be at very high risk. As per the SID, investors should consult their financial advisors if in doubt whether the product is suitable for them.
News18
5 days ago
- Business
- News18
Sebi Considers Review Of Categorisation Of Mutual Fund Schemes To Address Overlap
Last Updated: Sebi suggests that MFs should be permitted to offer both Value and Contra funds, subject to the condition that no more than 50% of the schemes' portfolios would overlap. Markets regulator Sebi on Friday proposed to review the categorisation of mutual fund schemes in a bid to improve clarity and address the issue of overlap in portfolios of schemes. The proposal came after Sebi noted a significant overlap of portfolios in some schemes and felt the necessity to introduce clear limits to the industry to avoid schemes with similar portfolios. In its consultation paper, Sebi suggested that mutual funds should be permitted to offer both Value and Contra funds, subject to the condition that no more than 50 per cent of the schemes' portfolios would overlap at any point in time. The overlap condition should be monitored at the time of New Fund Offer (NFO) deployment and subsequently on a semi-annual basis using month-end portfolios. In case of a higher-than-permitted overlap, the Asset Management Company (AMC) should rebalance the portfolios within 30 business days. An extension of up to an additional 30 business days may be obtained from the Investment Committee (IC) of the AMC, with the reasons for granting the additional days properly recorded and maintained. 'If the deviation persists beyond this period, investors of both the schemes shall be given an exit option without any exit load," Sebi proposed. The regulator proposed that mutual funds should be permitted to invest the residual portions of their portfolios in equity, debt (including money market instruments), gold and silver, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs) under the equity category schemes. Sebi also recommended changes in the nomenclature of debt schemes to enhance investor understanding. It proposed that the term 'Duration' be replaced with 'Term' for better clarity. Additionally, the 'Low Duration Fund' should be renamed as 'Ultra Short to Short Term Fund' to better reflect the investment objective, and the name of each debt scheme should indicate the fund's duration, such as Overnight Fund (1 Day) or Medium Term Fund (3 to 4 years). The regulator further proposed that mutual funds should be allowed to launch sectoral debt funds, provided that no more than 60 per cent of the portfolio in a sectoral debt scheme overlaps with any other sectoral debt or debt category scheme. This move should also ensure sufficient availability of investment-grade papers within the chosen sectors. Moreover, mutual funds should be permitted to invest the residual portion of their debt category schemes in REITs and InvITs, except for those with shorter durations, such as Overnight Fund, Liquid Fund, Ultra-Short Duration Fund, Low Duration Fund, and Money Market Fund, subject to regulatory limits applicable to this asset class. In terms of arbitrage funds, Sebi suggested that such schemes should be allowed to take exposure in debt instruments only through government securities with a maturity of less than one year and in repos backed by government bonds. For equity savings schemes, the regulator proposed that net equity exposure and arbitrage exposure should be mandated between 15 per cent and 40 per cent. With respect to hybrid category schemes, mutual funds should be allowed to invest the residual portion in REITs and InvITs, except in Dynamic Asset Allocation and Arbitrage Funds. Furthermore, mutual funds should be permitted to offer different types of schemes within the solution-oriented category, offering varying mixes of equity and debt components. Sebi also recommended that mutual funds be allowed to offer solution-oriented life cycle fund of funds with a target date. These schemes could include lock-in features tailored for specific financial goals such as housing, marriage, and other objectives. Additionally, the schemes may offer varying lock-in periods, such as 3 years, 5 years, or 10 years, to suit different investor needs. Also, Sebi proposed a change in terminology, suggesting that the word 'fund' in scheme names be replaced with 'scheme'. For example, instead of 'Large Cap Fund', it should be referred to as 'Large Cap Scheme'. Overall, mutual fund offerings would continue to be grouped under five broad categories — Equity-oriented schemes, Debt-oriented schemes, Hybrid schemes, Solution-oriented schemes, and Others. The Securities and Exchange Board of India (Sebi) has sought public comments till August 8 on the proposals. (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) Stay updated with all the latest news on the Stock Market, including market trends, Sensex and Nifty updates, top gainers and losers, and expert analysis. 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Time of India
5 days ago
- Business
- Time of India
Sebi considers review of categorisation of mutual fund schemes to address overlap
Markets regulator Sebi on Friday proposed to review the categorisation of mutual fund schemes in a bid to improve clarity and address the issue of overlap in portfolios of schemes. The proposal came after Sebi noted a significant overlap of portfolios in some schemes and felt the necessity to introduce clear limits to the industry to avoid schemes with similar portfolios. Explore courses from Top Institutes in Select a Course Category Product Management MBA Digital Marketing Healthcare Public Policy CXO Data Science others Data Science healthcare MCA Leadership Management Operations Management Cybersecurity Others Data Analytics Finance Artificial Intelligence PGDM Design Thinking Project Management Degree Technology Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details In its consultation paper, Sebi suggested that mutual funds should be permitted to offer both Value and Contra funds, subject to the condition that no more than 50 per cent of the schemes' portfolios would overlap at any point in time. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 15 Most Beautiful Women in the World The overlap condition should be monitored at the time of New Fund Offer (NFO) deployment and subsequently on a semi-annual basis using month-end portfolios. In case of a higher-than-permitted overlap, the Asset Management Company (AMC) should rebalance the portfolios within 30 business days. An extension of up to an additional 30 business days may be obtained from the Investment Committee (IC) of the AMC, with the reasons for granting the additional days properly recorded and maintained. Live Events "If the deviation persists beyond this period, investors of both the schemes shall be given an exit option without any exit load," Sebi proposed. The regulator proposed that mutual funds should be permitted to invest the residual portions of their portfolios in equity, debt (including money market instruments), gold and silver, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs) under the equity category schemes. Sebi also recommended changes in the nomenclature of debt schemes to enhance investor understanding. It proposed that the term 'Duration' be replaced with 'Term' for better clarity. Additionally, the 'Low Duration Fund' should be renamed as 'Ultra Short to Short Term Fund' to better reflect the investment objective, and the name of each debt scheme should indicate the fund's duration, such as Overnight Fund (1 Day) or Medium Term Fund (3 to 4 years). The regulator further proposed that mutual funds should be allowed to launch sectoral debt funds, provided that no more than 60 per cent of the portfolio in a sectoral debt scheme overlaps with any other sectoral debt or debt category scheme. This move should also ensure sufficient availability of investment-grade papers within the chosen sectors. Moreover, mutual funds should be permitted to invest the residual portion of their debt category schemes in REITs and InvITs, except for those with shorter durations, such as Overnight Fund, Liquid Fund, Ultra-Short Duration Fund, Low Duration Fund, and Money Market Fund, subject to regulatory limits applicable to this asset class. In terms of arbitrage funds, Sebi suggested that such schemes should be allowed to take exposure in debt instruments only through government securities with a maturity of less than one year and in repos backed by government bonds. For equity savings schemes, the regulator proposed that net equity exposure and arbitrage exposure should be mandated between 15 per cent and 40 per cent. With respect to hybrid category schemes, mutual funds should be allowed to invest the residual portion in REITs and InvITs, except in Dynamic Asset Allocation and Arbitrage Funds. Furthermore, mutual funds should be permitted to offer different types of schemes within the solution-oriented category, offering varying mixes of equity and debt components. Sebi also recommended that mutual funds be allowed to offer solution-oriented life cycle fund of funds with a target date. These schemes could include lock-in features tailored for specific financial goals such as housing, marriage, and other objectives. Additionally, the schemes may offer varying lock-in periods, such as 3 years, 5 years, or 10 years, to suit different investor needs. Also, Sebi proposed a change in terminology, suggesting that the word 'fund' in scheme names be replaced with 'scheme'. For example, instead of 'Large Cap Fund', it should be referred to as 'Large Cap Scheme'. Overall, mutual fund offerings would continue to be grouped under five broad categories -- Equity-oriented schemes, Debt-oriented schemes, Hybrid schemes, Solution-oriented schemes, and Others. The Securities and Exchange Board of India (Sebi) has sought public comments till August 8 on the proposals.
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Sebi considers review of categorisation of MF schemes to address overlap
Markets regulator Sebi on Friday proposed to review the categorisation of mutual fund schemes in a bid to improve clarity and address the issue of overlap in portfolios of schemes. The proposal came after Sebi noted a significant overlap of portfolios in some schemes and felt the necessity to introduce clear limits to the industry to avoid schemes with similar portfolios. In its consultation paper, Sebi suggested that mutual funds should be permitted to offer both Value and Contra funds, subject to the condition that no more than 50 per cent of the schemes' portfolios would overlap at any point in time. The overlap condition should be monitored at the time of New Fund Offer (NFO) deployment and subsequently on a semi-annual basis using month-end portfolios. In case of a higher-than-permitted overlap, the Asset Management Company (AMC) should rebalance the portfolios within 30 business days. An extension of up to an additional 30 business days may be obtained from the Investment Committee (IC) of the AMC, with the reasons for granting the additional days properly recorded and maintained. "If the deviation persists beyond this period, investors of both the schemes shall be given an exit option without any exit load," Sebi proposed. The regulator proposed that mutual funds should be permitted to invest the residual portions of their portfolios in equity, debt (including money market instruments), gold and silver, Real Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs) under the equity category schemes. Sebi also recommended changes in the nomenclature of debt schemes to enhance investor understanding. It proposed that the term 'Duration' be replaced with 'Term' for better clarity. Additionally, the 'Low Duration Fund' should be renamed as 'Ultra Short to Short Term Fund' to better reflect the investment objective, and the name of each debt scheme should indicate the fund's duration, such as Overnight Fund (1 Day) or Medium Term Fund (3 to 4 years). The regulator further proposed that mutual funds should be allowed to launch sectoral debt funds, provided that no more than 60 per cent of the portfolio in a sectoral debt scheme overlaps with any other sectoral debt or debt category scheme. This move should also ensure sufficient availability of investment-grade papers within the chosen sectors. Moreover, mutual funds should be permitted to invest the residual portion of their debt category schemes in REITs and InvITs, except for those with shorter durations, such as Overnight Fund, Liquid Fund, Ultra-Short Duration Fund, Low Duration Fund, and Money Market Fund, subject to regulatory limits applicable to this asset class. In terms of arbitrage funds, Sebi suggested that such schemes should be allowed to take exposure in debt instruments only through government securities with a maturity of less than one year and in repos backed by government bonds. For equity savings schemes, the regulator proposed that net equity exposure and arbitrage exposure should be mandated between 15 per cent and 40 per cent. With respect to hybrid category schemes, mutual funds should be allowed to invest the residual portion in REITs and InvITs, except in Dynamic Asset Allocation and Arbitrage Funds. Furthermore, mutual funds should be permitted to offer different types of schemes within the solution-oriented category, offering varying mixes of equity and debt components. Sebi also recommended that mutual funds be allowed to offer solution-oriented life cycle fund of funds with a target date. These schemes could include lock-in features tailored for specific financial goals such as housing, marriage, and other objectives. Additionally, the schemes may offer varying lock-in periods, such as 3 years, 5 years, or 10 years, to suit different investor needs. Also, Sebi proposed a change in terminology, suggesting that the word 'fund' in scheme names be replaced with 'scheme'. For example, instead of 'Large Cap Fund', it should be referred to as 'Large Cap Scheme'. Overall, mutual fund offerings would continue to be grouped under five broad categories -- Equity-oriented schemes, Debt-oriented schemes, Hybrid schemes, Solution-oriented schemes, and Others. The Securities and Exchange Board of India (Sebi) has sought public comments till August 8 on the proposals.
India.com
6 days ago
- Business
- India.com
After getting Rs 170000000, Mukesh Ambani's back to back launch, gets Sebi's approval for 5 new schemes of…
Mukesh Ambani (File) Jio BlackRock Asset Management, the 50:50 joint venture between Jio Financial Services and BlackRock, had already successfully raised over Rs 17,800 crore ($2.1 billion) through the initial offering of three debt mutual fund schemes. The company has also secured approval from market regulator SEBI to launch five mutual fund schemes. Jio BlackRock New Mutual Funds Scheme These funds are JioBackRock Nifty 50 index, JioBlackRock Nifty 8-13 yr G-Sec Index Fund, JioBlackRock Nifty Smallcap 250 Index Fund, JioBlackRock Nifty Next 50 Index Fund, and JioBlackRock Nifty Midcap 150 Index Fund, an update with Sebi showed on Wednesday. On July 7, JioBlackRock Asset Management announced the closure of its maiden New Fund Offer (NFO), recording a total investment of Rs 17,800 crore (USD 2.1 billion). The fund was mobilised from three cash/debt mutual fund schemes — JioBlackRock Overnight Fund, JioBlackRock Liquid Fund and JioBlackRock Money Market Fund. The three-day NFO received an overwhelming response from over 90 institutional investors and more than 67,000 retail investors. Jio BlackRock NFO The three-day New Fund Offer (NFO), held from June 30 to July 2, drew investments from more than 90 institutional investors. According to a press release, this strong response highlights investor confidence in Jio BlackRock Asset Management's data-driven investment strategy and digital-first approach. 'The overwhelming response to our first NFO from institutional and retail investors is a powerful endorsement of JioBlackRock Asset Management's innovative investment philosophy, risk management capabilities and digital-first approach. This is a strong start to our journey towards becoming a transformative force in India's evolving investment landscape, catering to all types of investors,' said Sid Swaminathan, Managing Director and CEO, JioBlackRock Asset Management. (With Inputs From PTI)
