SBI Mutual Fund gets SEBI approval to merge two schemes
Quotes

SBI Mutual Fund gets SEBI approval to merge two schemes

Last Updated: Sunday, June 24, 2012, 16:15
 
 Comment 0
 
SBI Mutual Fund gets SEBI approval to merge two schemes
Mumbai: In its drive to give better returns to investors, SBI Mutual Fund will soon be merging two of its schemes as it has received market regulator SEBI's approval, a top company official has said.

"We have received one merger approval for two schemes from the market regulator recently, for which, we have applied for quite some time," SBI MF Managing Director Deepak Chatterjee said.

He, however, declined to name the schemes saying the fund house has to follow some processes like informing the investors after the approval.

SEBI Chairman UK Sinha last week said it would allow merger of schemes to avoid overlapping and ensuring better returns to investors.

Concerned over non-performance of some schemes over a long period of time, Sinha had said fund houses need to look into the matter and consider the merger of some schemes.

"Management (of mutual funds) should look into the areas of non-performance," Sinha had said, adding he was in favour of merger of schemes on case to case basis.

According to industry insiders, a trend has started with one of the largest fund houses of the country getting approval for the merger of schemes.

Chatterjee also said usually a merger of schemes will be beneficial to investors.

"When a merger is done, it is usually between a non- performing fund with a performing one, which is beneficial to investors.

"Also, if an investor doesn't want to be part of the merged scheme, he or she can do so without paying any exit load to the fund house," he said, adding that AMC (asset management company) does all kind of due diligence before applying for approval.

Chatterjee also said the fund house is not mulling to come up with any new fund offer in the equity space in the current financial year.

"Where is the need for coming up with equity schemes? I think, we will not come up with any schemes in the equity space in the current financial year," he said.

He, however, said that the fund house would come up with debt schemes, especially fixed maturity plans (FMPs) this fiscal.

SBI Mutual Fund, which is one of the largest fund houses, has an asset under management of more than Rs 42,000 crore by March 2012.

PTI


First Published: Sunday, June 24, 2012, 16:15


Comments


comments powered by Disqus
Forbes Best Places for Biz 2014
Forbes Best Places for Biz 2014
Hyundai Elite i20
Hyundai Elite i20
John Kery with Indian Biz Honchos
John Kery with Indian Biz Honchos
Honda Mobilio MPV
Honda Mobilio MPV
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved