MFs approach Sebi with 30 NFO proposals in 2016
To tap the growing demand from retail investors, mutual fund houses have filed draft papers with markets regulator Sebi to launch as many as 30 New Fund Offers. Retirement, fixed maturity plan (FMP) and equity are some of the themes for which mutual fund houses have filed the applications. Interestingly, many mutual fund companies have approached Sebi for launching plans with Hindi names so that investors in rural areas understand the objectives of the schemes in a better manner. The move is seen as moving away from the old tradition of English names for investment schemes.
‘Bal Vikas Yojana’, a scheme aimed at saving for children’s future, Kar Bachat Yojana, a tax saving fund, ‘Bachat Yojana’ and ‘Nivesh Lakshya’ both fixed income schemes, are some of the launch schemes filed with Sebi by Mahindra MF and Reliance MF. “Our idea is to explain the investment opportunities to customers in our priority markets in their own language starting with the product names,” Mahindra AMC MD and Chief Executive Ashutosh Bishnoi said. Besides, Reliance MF filed papers for launching a Korea-focussed fund in Indian markets.