Investors bank on brand image of MFs, parentage
Fund houses like Reliance, HDFC, UTI, ICICI-Prudential, SBI, Birla Sun Life and Tata are the favoured ones among investors. MF Investments | When do you jump a MF?
By Saikat Das, ET Online |
MUMBAI: The recession and shaky markets have driven mutual fund investors to asset management companies with greater credibility and brand image. Investors are now investing in schemes of select mutual fund houses typically through debt schemes.
Fund houses like Reliance, HDFC, UTI, ICICI-Prudential, SBI, Birla Sun Life and Tata are the favoured ones among retail investors with corpus of Rs 25,000-Rs 50,000. Foreign institutional investors and high net worth individuals are additionally looking at the fund's corpus and quality of portfolio.
Lately, fund distributors like Centrum, Motilal Oswal, Sharekhan are seeing increased interest in liquid, income, gilt, fixed maturity plan and other debt funds of these fund houses.
ICICI Prudential Income Fund, Birla Income Plus, Birla Dynamic Bond Fund, Reliance Short Term Fund, UTI Liquid Fund, UTI Treasury are getting higher investment inflows, according to these broker distributors.
"By investing in the debt schemes of select fund houses, investors have made 30-40 per cent returns in the last three months. In a recessionary situation, it is the trustworthiness of an AMC that matters to the retail investors," said Sriram Venkatsubramanian, head - wealth management, Centrum Wealth Managers.
Added Maju Nair, AVP - Sharekhan, "there is a crisis of confidence among investors who are now more concerned about the safety factor of their investments. The age-old brand image has helped them find trustworthiness in larger AMCs. FIIs are investing there with an average coupon size of Rs.10 lakh."
Although bulk investments in equity schemes have dried up, distributors keep getting inflows through systematic investment plans of larger AMCs. On this count, Reliance Growth Fund and HDFC Top 200 are getting more subscriptions.
"As far as liquidity is concerned, especially in liquid and income funds, larger AMCs are much better placed. Further, those fund houses go for aggressive product penetration among investor community. Both the factors turn the investor tide in their favour," feels Rupesh Nagda, head - mutual fund distribution, Motilal Oswal.
Fund managers also believe that some fund houses get support from their larger parentage, like SBI, ICICI, Birla.
This also helps them overcome any financial damages quicker, although none of them may come on record to concede it, said a fund distributor.
Fund houses like Reliance, HDFC, UTI, ICICI-Prudential, SBI, Birla Sun Life and Tata are the favoured ones among retail investors with corpus of Rs 25,000-Rs 50,000. Foreign institutional investors and high net worth individuals are additionally looking at the fund's corpus and quality of portfolio.
Lately, fund distributors like Centrum, Motilal Oswal, Sharekhan are seeing increased interest in liquid, income, gilt, fixed maturity plan and other debt funds of these fund houses.
ICICI Prudential Income Fund, Birla Income Plus, Birla Dynamic Bond Fund, Reliance Short Term Fund, UTI Liquid Fund, UTI Treasury are getting higher investment inflows, according to these broker distributors.
"By investing in the debt schemes of select fund houses, investors have made 30-40 per cent returns in the last three months. In a recessionary situation, it is the trustworthiness of an AMC that matters to the retail investors," said Sriram Venkatsubramanian, head - wealth management, Centrum Wealth Managers.
Added Maju Nair, AVP - Sharekhan, "there is a crisis of confidence among investors who are now more concerned about the safety factor of their investments. The age-old brand image has helped them find trustworthiness in larger AMCs. FIIs are investing there with an average coupon size of Rs.10 lakh."
ADVERTISEMENT
Although bulk investments in equity schemes have dried up, distributors keep getting inflows through systematic investment plans of larger AMCs. On this count, Reliance Growth Fund and HDFC Top 200 are getting more subscriptions.
"As far as liquidity is concerned, especially in liquid and income funds, larger AMCs are much better placed. Further, those fund houses go for aggressive product penetration among investor community. Both the factors turn the investor tide in their favour," feels Rupesh Nagda, head - mutual fund distribution, Motilal Oswal.
Fund managers also believe that some fund houses get support from their larger parentage, like SBI, ICICI, Birla.
ADVERTISEMENT
This also helps them overcome any financial damages quicker, although none of them may come on record to concede it, said a fund distributor.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
