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This week in MFs: Quant Group to acquire Escorts Mutual Fund; DSP BlackRock MF to revise features

Quant Capital assets under advisory was Rs 520 crore as on March 2017.

February 17, 2018 / 01:29 PM IST

Delhi-based Escorts Mutual Fund that was struggling to garner assets under management since last few years is said to be acquired by  Quant Capital.

This was Moneycontrol exclusive story for the week.

Of 245 crore total AUM of Escorts Mutual Fund as on Dec 2017, the fund house manages Rs 43-44 crore in equity schemes, which is about 18 percent of its total assets under management, according to industry estimates. Typically, the fund house is valued based on the assets in its equity schemes.

In the last one year, the AUM of Escorts Mutual Fund had plunged 14 percent.

India’s mutual fund industry has already seen a slew of deals, including Prudential Financial Inc’s purchase of Deutsche Asset Management’s India unit and Edelweiss Asset Management acquiring JP Morgan Asset Management’s India unit in 2016.

The fortunes of India’s asset management sector have revived since 2014, when stock markets started a powerful rally, ending years of scant retail interest in mutual funds. Domestic mutual funds have seen net inflows of a record Rs 1.3 lakh crore in equity mutual funds in 2017 in the last calendar year.This the first time a mutual fund distribution and a brokerage firm will be venturing in to the asset management business.

Last year, in August, Essel Finance acquired stake in Peerless Mutual Fund.

HDFC Mutual Fund holds more than 4% stake in fraud clad Punjab National Bank

HDFC Mutual Fund held more than 4 percent in the much talked about scam-hit Punjab National Bank.

HDFC Prudence Fund, HDFC Equity Fund and HDFC Midcap Opportunities Fund all held a significant amount of shares of the public sector bank.

Among the top 10 fund houses, Aditya Birla Sun Life Mutual Fund held 0.78 percent stake in the state-owned lender, while DSP BlakcRock held 0.71 percent, as per the data on Value Research.

Among other notable developments this week, slew of mutual fund houses revised the benchmark for most equity schemes to total return variant of the respective index.

Fund houses that revised its benchmark index were IDBI Mutual Fund and L&T Mutual Fund.

On January 4, the Securities and Exchange Board of India (SEBI) had directed fund houses to compare the performance of their schemes with total return variant of the benchmark index instead of current price return variant.

The total return variant captures the value of dividends paid out by companies, while the price return variant captures capital gains of firms in an index.

DSP BlackRock MF to revise features of infrastructure fund from March 16

DSP BlackRock Mutual Fund will revise features of DSP BlackRock India T.I.G.E.R. Fund with effect from March 16, to comply with the new guidelines issued by the Securities and Exchange Board of India.

Post the effective date, the scheme will be categorised as an open-ended equity scheme following economic reforms and infrastructure development theme, as against an open-ended diversified equity scheme currently.

Quantum Mutual Fund extends facility to donate to NGOs to liquid fund

Quantum Mutual Fund extended the facility to donate to non-governmental organisations through its funds to one more scheme Quantum Liquid Fund.

Under the facility, investors can donate 5 percent or 10 percent of their holdings under the folio tagged for the facility to non-governmental organisations through automatic redemption of their units.

Earlier, the eligible schemes were Quantum Long Term Equity Fund, Quantum Equity Fund of Funds, Quantum Dynamic Bond Fund, Quantum Multi Asset Fund, and Quantum Gold Savings Fund.

Himadri Buch
Himadri Buch
first published: Feb 17, 2018 01:29 pm

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