With mutual funds gaining traction among retail investors, asset management companies have filed draft documents with markets regulator Sebi seeking approval to launch as many as 18 new schemes in this year, reported PTI. Fixed maturity plan, exchange traded fund (ETF), equity and debt are some of the themes for which the mutual fund houses have filed the applications.
Fund houses -- Mahindra, Axis, Aditya Birla Sunlife, HSBC, UTI, Reliance, Kotak, Edelweiss, Tata, Franklin, SBI, Invesco, Sundaram, Shriram and PPFAS -- have filed the offer documents for new fund offers (NFOs) with the Sebi so far in 2018 (till yesterday), as per the latest update with the regulator.
SBI Mutual Fund has sought the markets regulator's go ahead to introduce three schemes, while other fund houses have applied with Securities and Exchange Board of India (Sebi) to launch one scheme each. Interestingly, Mahindra Mutual Fund once again approached Sebi for launching plan with Hindi name 'Rural Bharat Yojana' so that investors in rural areas understand the objectives of the schemes in a better manner.
The move is seen as moving away from the old tradition of English names for investment schemes. According to market participants, AMCs are focusing more on retail investors who are already showing a lot of commitment and maturity.
There has been a growing demand from retail investors for mutual fund products as the investors' base touched a record high of 6.65 crore. Over the last few years, mutual funds have proved to be a low-cost, compliant and transparent way to channelise savings towards financial investments. A mutual fund pools the assets of its investors and invests the money on behalf of them. It provides diverse investment instruments like stocks and bonds without requiring investors to make separate purchases and trades.