SBI MF nets record Rs 12,000 crore in new fund – Times of India
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MUMBAI: The euphoria of the stock market is spreading to the mutual fund industry as well. In its latest new fund offer (NFO), SBI Mutual Fund, the largest fund house in India in terms of money under management, mobilised over Rs 12,000 crore in its Balanced Advantage Fund.
This is the largest ever NFO mobilisation by an equity fund in the mutual fund industry’s history. The previous biggest collection was Rs 9,800 crore by ICICI Prudential MF through its Flexi Cap Fund last month.
According to SBI MF executives, Wednesday was the last day of the NFO and it will take a few more days to reconcile and arrive at the final mobilisation figure. Industry sources expect that number to cross Rs 12,500-crore mark.
SBI MF executives said that with the stock market at a record high level, a large number of investors who are not very comfortable investing in stocks have put in their money in the fund. Also there are investors who want a return that is higher than fixed deposit rates, which are at a historical low level.
Industry figures show in July equity NFOs had mobilised Rs 13,709-crore, while the current month’s figure is expected to cross that figure. Large NFO collection was one of the reasons for the record Rs 22,584-crore net inflows into equity funds, AMFI officials had said earlier this month.
Currently another five equity NFOs and one fixed income offer are live, data from fund industry analytics firm Value Research’s website showed.
This is the largest ever NFO mobilisation by an equity fund in the mutual fund industry’s history. The previous biggest collection was Rs 9,800 crore by ICICI Prudential MF through its Flexi Cap Fund last month.
According to SBI MF executives, Wednesday was the last day of the NFO and it will take a few more days to reconcile and arrive at the final mobilisation figure. Industry sources expect that number to cross Rs 12,500-crore mark.
SBI MF executives said that with the stock market at a record high level, a large number of investors who are not very comfortable investing in stocks have put in their money in the fund. Also there are investors who want a return that is higher than fixed deposit rates, which are at a historical low level.
Industry figures show in July equity NFOs had mobilised Rs 13,709-crore, while the current month’s figure is expected to cross that figure. Large NFO collection was one of the reasons for the record Rs 22,584-crore net inflows into equity funds, AMFI officials had said earlier this month.
Currently another five equity NFOs and one fixed income offer are live, data from fund industry analytics firm Value Research’s website showed.
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