Mutual Funds can start a new scheme after July 1, you will also get new investment opportunities


New Delhi. Mutual funds may soon be allowed to issue new fund offers. The new fund offers will start as soon as the Association of Mutual Funds in India guarantees to stop using pool accounts completely and the new process is implemented. In view of the increasing trend of pool accounts, market regulator SEBI had banned the launch of new fund offers by mutual fund houses till July 1. SEBI had directed that pool practice should be completely banned till July 1.

Sources say that now SEBI has got the assurance of a complete ban on this process. Therefore, new fund offers can be launched after July 1. According to a report, till now it has been happening that brokers and other intermediaries first keep the money of investors in their account, that is, pool it and then send it to clearing corporations or asset management companies. Market regulator SEBI had ordered the mutual fund industry in October 2021 regarding this that this practice should be stopped and money should go directly from investors’ account to mutual funds.

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SEBI changed its deadline several times to stop this process. But, last time setting the deadline of June 1, SEBI said that the mutual industry is prohibited from bringing in fresh fund offers until this practice is completely stopped and ordered the complete closure of the pool system by July 1. was.

Many schemes will be launched

Five fund houses have already applied to launch new fund offers even before the ban deadline is over. Last week itself Sundaram MF had Flexi Cap Fund, Baroda BNP Paribas MF a Floater Fund, LIC MF a Multi Cap Fund. Franklin Templeton MF has submitted documents to SEBI to start a Balanced Advantage Fund and Axis MF to launch a long duration fund. In early June, PGIM India Mutual Fund also applied for a focused equity fund.

Apart from these, many more fund houses are waiting for the ban on bringing new fund offers to be lifted to launch new funds. These include Flipkart co-founder Sachin Bansal backed Navi MF, White Oak MF, Samco MF and NJ MF. Industry executive says SEBI has started issuing observation on NFO documents.

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96,000 crore raised last year from NFO

Last year was very good for the mutual fund industry in terms of NFO collections. MFs got Rs 96,000 crore last year only from NFOs. Most of the funds that were launched were index funds or exchange traded funds which were themed or sector oriented. At the same time, the financial planner says that many funds will be launched in the future. But instead of investing in multiple funds, investors should stick with existing funds that have a good long term track record.

Tags: Mutual fund, Personal finance


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