18 schemes are set to be renamed by 12 different fund houses so that the scheme’s name truly reflects the fund’s investment mandate.
Mumbai: After scheme mergers, AMCs are going all out to rename their schemes.
Fund houses say the new scheme names reflect the scheme objective and the underlying portfolio better. Around 18 funds are proposed to be renamed by 12 fund houses.
|
Earlier Name |
New Name |
|
Axis Tax Saver |
Axis Long Term Equity |
|
BNP Paribas Future Leaders Fund |
BNP Paribas Mid Cap Fund |
|
DSP BR Savings Manager Fund–Conservative Plan & Moderate Plan |
DSP BR Savings Manager Fund-Aggressive Plan |
|
DWS Ultra Short Term Fund -Auto Sweep Plan |
DWS Ultra Short Term Fund -Premium Plus Plan |
|
Edelweiss Income Advantage |
Edelweiss Monthly Income Plan |
|
Edelweiss Monthly Interval Fund – Series I |
Edelweiss Short Term Income Fund |
|
ICICI Prudential Equity and Derivatives Fund-Wealth Optimiser Plan |
ICICI Prudential Equity and Derivatives Fund-Volatility Advantage Plan |
|
ICICI Prudential Growth Plan |
ICICI Prudential Top 100 Fund |
|
ICICI Prudential Power Plan |
ICICI Prudential Top 200 Fund |
|
IDFC Saving Advantage Fund |
IDFC Liquid Fund |
|
ING Nifty Fund |
ING Large Cap Equity Fund |
|
Kotak Income Plus |
Kotak Monthly Income Plan |
|
Reliance Equity Advantage Fund |
Reliance Top 200 Fund |
|
Religare Active Income Fund – Institutional Plan |
Religare Active Income Fund – Plan B |
|
Religare Active Income Fund – Regular Plan |
Religare Active Income Fund – Plan A |
|
Religare Short Term Plan – Institutional Plan |
Religare Short Term Plan – Plan B |
|
Religare Short Term Plan– Regular Plan |
Religare Short Term Plan – Plan A |
|
Tata Floating Rate Fund – Short Term |
Tata Money Market Fund |
“The objective of changing the scheme name is to provide better clarity and linkage between the scheme’s nomenclature and its key investment strategy and portfolio construct. For instance, ICICI Prudential Focused Equity was renamed ICICI Prudential Focused Bluechip Equity to bring to fore the fact that it invests only in around 20 blue chip stocks selected from the NSE top 100 stocks by market cap,” says Aashish Somaiyaa, Head-Retail Business, ICICI Prudential Mutual Fund.
Himanshu Vyapak of Reliance Mutual Fund offers the same rationale for remaining one of its equity schemes. “The objective is to offer an enhanced investment universe to the existing investors of Reliance Equity Advantage Fund which is being renamed as Reliance Top 200 Fund. While maintaining the same positioning of a conservative large cap fund, it will be benchmarked to BSE 200" says Himanshu.
Another rationale behind renaming schemes is to provide a broader investment scope for the existing investors of a scheme which is being rebranded. Axis Mutual Fund wants to widen the appeal of its Axis Tax Saver by renaming it Axis Long term Equity. “The universe of investors looking for tax saving is smaller than the universe of people looking for diversified funds. By changing the scheme’s name, I think it will open up a bigger market. There are no changes in the scheme except the name,” says Rajiv Anand, Axis Mutual Fund.
In the past, AMCs had given imaginative names to their schemes which often confused the investors and advisors. The erstwhile Executive Director of SEBI, K N Vaidyanathan had complained that schemes with fancy names made it difficult for investors to understand their objectives.
Few AMCs are offering an exit option to investors if they disagree with the proposed change.
Do you think this move will help investors and advisors? Let us know.
