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Business Standard
9 hours ago
- Business
- Business Standard
NFO alert! Mahindra Manulife launches BFSI focused fund; check details here
NFO Alert! Mahindra Manulife Mutual Fund, a joint venture between Mahindra & Mahindra Financial Services (Mahindra Finance) and Manulife Investment Management (Singapore), has announced the launch of the Mahindra Manulife Banking and Financial Services Fund. This open-ended equity scheme aims to provide long-term capital appreciation by investing predominantly in a portfolio of equity and equity-related securities of companies engaged in banking & financial services activities, according to the Scheme Information Document (SID). Mahindra Manulife Banking and Financial Services Fund's Krishna Sanghavi, CIO – equity, Mahindra Manulife Investment Management, said, "The fund aims to build a diversified portfolio that captures the full potential of the BFSI ecosystem from traditional leaders like banks and insurers to emerging players driving innovation in how India saves, borrows, invests, and transacts, with a disciplined focus on fundamentals and valuations.' Banking, he added, remains a strong pillar of India's financial landscape, but the opportunity extends much further. The fund will be managed by Vishal Jajoo and Chetan Sanjay Gindodia. The New Fund Offer (NFO), which opened today, will remain available till July 11, 2025. Mahindra Manulife Banking and Financial Services Fund will reopen for continuous sale and repurchase from July 21, 2025. Mahindra Manulife Banking and Financial Services Fund is offered at ₹10 per unit each during the NFO and continuous offer for units at NAV-based prices. During the NFO, the minimum application amount is ₹1,000 and in multiples of ₹1 thereafter. The minimum amount for switch-in is ₹1,000 and in multiples of ₹0.01 thereafter. The Mahindra Manulife Banking and Financial Services Fund is benchmarked against Nifty Financial Services TRI (First Tier Benchmark). The risk for the NFO as well as the benchmark remains very high, reads the SID. Who should invest in Mahindra Manulife Banking and Financial Services Fund NFO? According to the SID, Mahindra Manulife Banking and Financial Services Fund is suitable for long-term capital appreciation as well as for investment predominantly in a portfolio of equity and equity-related securities of companies engaged in banking & financial services activities. "Investors should consult their financial advisers if in doubt about whether the product is suitable for them," cautioned the SID.
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Business Standard
10 hours ago
- Business
- Business Standard
Sebi extends investor-protection rule to passive mutual fund breaches
Timelines for portfolio rebalancing in schemes will now be applicable to all types of passive breaches across actively managed schemes India's market regulator has extended its rule on mutual fund portfolio rebalancing to cover all 'passive breaches' in actively managed schemes, not just those related to asset allocation. The Securities and Exchange Board of India (Sebi) issued the directive in a circular dated June 26 to mutual funds, asset management companies (AMCs), trustee companies, and the Association of Mutual Funds in India. What are passive breaches? A passive breach occurs when a mutual fund portfolio unintentionally violates investment limits or asset allocations due to external factors, not due to any fault or action by the fund manager or AMC. -Significant price fluctuations in securities -Maturity of debt instruments -Large investor redemptions These can push a fund's composition outside the regulatory or scheme-defined limits without any wrongdoing by the AMC. What has changed? Earlier, Sebi's rules under Paragraph 2.9 of its Master Circular applied rebalancing timelines only to passive breaches of asset allocation. Now, based on the recommendation of the Mutual Funds Advisory Committee (MFAC), the regulator has clarified that this 30-business-day rebalancing rule applies to all types of passive breaches in actively managed mutual fund schemes. The new rule ensures consistent treatment of all passive breaches, be it in issuer limits, sector exposure, or group limits. This move is aimed at safeguarding investor interests and maintaining regulatory discipline. Why it matters for investors Even though passive breaches are unintentional, they can still change the risk profile of a mutual fund. By enforcing a rebalancing window of 30 business days for all such deviations, Sebi seeks to ensure fund portfolios remain aligned with what was originally promised in the Scheme Information Document (SID). Sebi said the circular has been issued under its powers to 'protect the interests of investors' and to promote and regulate the securities market. According to a PTI report, this clarification underscores the importance of uniformity and discipline in fund management practices and reinforces the accountability of AMCs to stay within prescribed investment boundaries.
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Business Standard
a day ago
- Business
- Business Standard
Union Mutual Fund launches 'low risk', short-term debt investment scheme
Union Mutual Fund has a new debt scheme for investors wanting to park surplus money for a short period: from three to 12 months. The New Fund Offer (NFO) opened on Thursday and will close on July 10, 2025. Union Low Duration Fund is a flexible and structured alternative to traditional savings instruments, especially at a time when short-term debt instruments are offering relatively attractive yields, said the company. The fund will invest in a mix of debt and money market instruments while maintaining a Macaulay Duration of six to 12 months. What is Macaulay Duration Macaulay Duration is a way to measure how long, on average, it takes for an investor to recover their money from a bond or debt investment, including both interest and principal. A shorter duration (like six to 12 months) means: The fund is less affected by changes in interest rates. It is better suited for short-term investors. It has lower risk compared to longer-duration debt funds. Key features of the fund NFO dates: June 26 – July 10, 2025 I deal investment period: 3 to 12 months Investment focus: High-quality debt and money market instruments Liquidity: Open-ended structure allows entry and exit after NFO Management's words 'This scheme is not about chasing high yields. It's about structure, timing, and giving purpose to your short-term money,' said Madhu Nair, chief executive officer, Union Asset Management Company. He added that in the current environment of evolving interest rates and surplus liquidity, the fund offers a pragmatic solution for idle cash. Parijat Agrawal, head of fixed income at Union AMC, said, 'We're tracking liquidity, interest rate curve movements, and broader macro trends. A low duration strategy gives us the flexibility to act swiftly.' Opportunities and Risks Opportunities -Potentially better returns than savings accounts or ultra-short FDs -Actively managed to respond to rate changes -Low duration reduces volatility and interest rate risk Risks -Returns are market-linked and not guaranteed -Some exposure to credit and reinvestment risk -Not ideal for long-term goals Who Should Consider This Fund? Individuals with idle funds for a few months Conservative investors looking for stable, low-risk returns Those looking to temporarily park money instead of keeping it in a bank Before investing, it's best to consult a financial advisor to understand whether this fund fits your needs. Detailed information is available in the Scheme Information Document on
