A number of mutual funds are geared to launch new fund offers (NFOs) after a three-month pause that the Securities and Exchange Board of India imposed on them to comply with a new rule, reported Economic Times.
While a few asset managers have already lined up equity, hybrid, index and debt funds, many more are expected to join later in July and in August.
“The industry has complied with the regulator’s circular on discontinuing pooling client money for mutual fund transactions. The regulator will now permit new fund offers,” Association of Mutual Funds in India (AMFI) chairman A Balasubramanian said.
Since the industry could not meet the deadline by April 1 of discontinuing pool account usage for mutual funds due to operational hassles, Sebi extended the deadline to July 1.
However, it barred mutual funds from launching NFOs till the time the industry complied with the rule. It also sought tighter authentication requirements when redeeming mutual funds with the objective of reducing the likelihood of fund houses misusing investor money.
Whiteoak Capital will launch its maiden Whiteoak Capital Flexicap Fund, which will remain open for subscription July 12-26, while Edelweiss MF will be offering Edelweiss Focused Fund July 12-25.
SBI Mutual Fund has also lined up a debt index fund and fixed maturity plan, and Mirae Asset Managers is set to launch the Mirae Asset Balanced Advantage Fund in the second half of July.
“After the sharp drawdown in the market, we find many good businesses available at attractive valuations. Money coming in will give us a chance to construct a solid portfolio for our first equity mutual fund offering,” said Prateek Pant, chief business officer, Whiteoak Capital Mutual Fund.