Such funds alternate between debt and equity depending on market conditions
Industry players say redemption, incremental buying or SIP transactions of investors of PSBs could be hit if account details are not updated by clients over the next few days
The fund maintained modified duration in the range of 1.7 years to 3.7 years during the past 3 years, averaging 3 years
At a fund house level, more than 10 per cent of assets can be invested in perpetual bonds of a single issuer
The funds are focused on the Nitfy midcap and smallcap indices
Franklin Templeton Mutual Fund has said its six shut schemes have received Rs 15,272 crore from maturities, coupons and pre-payments since closing down in April 2020
From Mutual funds becoming net sellers of Indian equities first time in 7 years to Ola Electric planning to set up Li-ion battery plant, here are the top headlines this morning
Sebi circular on perpetual bonds has sparked redemption concerns
Sebi's new rules around mutual fund (MF) investments in these bonds have kicked up a storm
FY21 net selling of Rs 1.27 trn is highest in a fiscal year
A sudden change in the metrics will be disruptive
On March 10, the market regulator said that no MF under all its schemes shall own more than 10% of AT-1 bonds and Tier-2 bonds issued by a single issuer
Most large MFs remained underweight on banking and overweight on capital goods
Revised norms to treat all perpetual bonds as 100-year tenor to be withdrawn
Besides redemption pressure in debt market, it will make fund raising difficult for PSBs
The fund house had shuttered its six debt schemes in April last year due to the severe market dislocation and illiquidity caused by the Covid-19 pandemic
Company clocked over 20 million annual direct mutual funds transactions with assets under management of over Rs 5,000 crore, says Varun Sridhar
In a circular, the market regulator said that no MF under all its schemes shall own more than 10 per cent of AT1 bonds issued by a single issuer
Mutual fund assets bounced back from the decline witnessed in January
Currently, nine requests for MF licence are being processed by Sebi