MFkiRani Profile picture
Aug 22, 2019 12 tweets 24 min read Read on X
(1/n) Ease of FPI Norms by SEBI on Aug 21
Key focus - to simplify and rationalize the existing regulatory framework for FPI - easing the operational constraints, expedite the registration process & compliance requirements, documentation for KYC simplified
(2/n) Broad based eligibility criteria for institutional foreign investors scrapped. What was broad based requirement? Abroad based fund meant a fund, established or incorporated outside India, which has min 20 investors, with no investor holding > 49% of shares or units of fund
(3/n) FPIs may be recategorized into 2 categories - I and II, instead of the present requirement of three categories
Current Categories are - Category I includes foreign investors related with the government such as central banks, government agencies, sovereign wealth funds
(4/n) (b) Cat II includes regulated entities like banks, AMCs, investment managers etc. & broad-based funds, which may be regulated like MFs, investment trusts etc. or non-regulated; and (c) Category III includes investors, which are not covered under I & II
(5/n) Central Banks shall also be eligible for FPI registration (those ot the members of BIS (Bank for International Settlement). Offshore funds floated by Indian MFs shall be permitted to invest in India after registration as FPI. Contd the current approach of allowing buybacks.
flexibility to MFs to invest in unlisted NCDs max of 10% of debt portfolio. T obe implemented in a phased manner by June 2020
(7/n) SEBI will have a provision whereby there can be agreement between Creedit Rating Agency & issuer, wherein CRA will have consent to to obtain details of the existing and/ or future borrowing of the issuer, its repayment and any delay or default in servicing of such borrowing
(8/n) Apart from above, there have been changes related to listing of debt securities by municipality, certain definitions of insider trading participants.

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More from @MFkiRani

Oct 26, 2020
(1/n) Today we will discuss the BAF model of @MotilalOswalAMC known as Motilal oswal Dynamic Fund. Fund Manager – Akash Singhania, Abhiroop Mukherjee
AUM – 1112 crores
(2/n) Molal Oswal Dynamic Fund uses their proprietary Molal Oswal Value Index (MOVI) to calibrate exposure to equity as per changing market valuations.
(3/n) While equity powers creaon of wealth, booking profits in a calibrated fashion aims to protect from downside during market correcons and short-term volality.
Read 8 tweets
Oct 23, 2020
(1/n) Today we will discuss BAF model of @lntmutualfund known as L&T Dynamic Equity Fund. Fund Manager – Mr. Vihang Naik, Mr. Venugopal Manghat, Mr. Praveen Ayathan
AUM – 591 crores
(2/n) The fund uses an active strategy to manage market volatility by balancing its equity exposure. L&T Balanced Advantage Fund is a unique offering from our product suite, that can change the equity component based on an internal model.
(3/n) Such a strategy could help participate in the long-term growth potential of equities but with significantly lower volatility.
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Oct 22, 2020
(1/n)Today we will discuss BAF model of @IDFCMF called IDFC Dynamic Equity Fund. Fund Manager – Arpit Kapoor, Sumit Agarwal and Arvind Subramanium
AUM – 866 crores
(2/n) It is a hybrid fund with active equity allocation changing based on the trailing P/E of Nifty 50 index.
A pre-defined model with 6 different equity bands - a minimum of 30% to maximum of 100% Equity*.
(3/n)
Higher the P/E band, lower will be the active equity allocation and vice versa
Change of bands happen once a month while changes within the band happen dynamically on a day to day basis
Read 8 tweets
Oct 12, 2020
(1/n) Today we will discuss BAF model of @ICICIPruMF called as ICICI Pru balanced advantage fund. Fund Manager – Sankaran Naren, Ihab Dalwai, Rajat Chandak and Manish Banthia
AUM – INR 22849 Cr
(2/n) The scheme has successfully completed 10-years of its in-house BAF model. Their in-house Balanced Advantage model was introduced a decade ago with the aim to help investors capitalize on the advantage of equity investing with controlled level of risk
(3/n) The fund follows a counter cyclical method of investing ie invest when market is low and sell when market is at high. It helps retail investors to invest in a counter cyclical manner ie buying low, selling high. Their model is designed to achieve this.
Read 13 tweets
Oct 5, 2020
(1/n) Today will discuss BAF model of @TataMutualFund called tata balanced advantage fund.
Fund Manager – Rahul Singh, Sailesh Jain, Sonam Udasi and Akhil Mittal
AUM – 1062 crores
(2/n) Strategy is a combination of PE and PB Model. It uses both ratios to gauge intrinsic value of stock. While PE Model is a mix of forward and trailing valuations while PE Plus model factors in other market dynamics other than intrinsic value
(3/n);In house P/E based model with 10% variation to the basic equity allocation.
Further, other parameters that can be considered are: Volatility Trend analysis, Macro factors , Market Outlook.
Read 14 tweets
Oct 2, 2020
(1/n) Today we will discuss the BAF model of @EdelweissAMC called Edelweiss Balanced Advantage Fund.
Fund Manager – Bhavesh Jain, Bharat Lahoti and Gautam Kaul
AUM – 1429 crores
(2/n) The scheme follows a pro cyclical investment approach where the fund managers allocate more to equity in a bull market and reduce equity in bear market cycle. The in-house propriety model takes into account quantitative factors along with fundamentals.
(3/n) The fund consists of a core equity portfolio and a high qualitive debt portfolio or special situation ideas. Currently the equity exposure is around 50-60% of the portfolio.
determine the unhedged equity allocation.
Read 11 tweets

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