A few large fund houses – ICICI Prudential, HDFC and Birla Sun Life – have recently collectively collected inflows of Rs1,500 crore on their respective close-end equity funds focussing on GST.
While HDFC MF collected close to Rs700 crore during the NFO of HDFC Equity Opportunities Fund (Series), ICICI Prudential MP mopped up close to Rs540 crore from ICICI Prudential Value Fund (Series 15). Similarly, Birla Sun Life MF garnered Rs266 crore from its Birla Sun Life Resurgent India Fund (Series 4).
All schemes have tenure of up to three-and-a-half years and will focus on stocks that are likely to benefit from the recovery in the Indian economy and the shift from unorganised to the organised sector due to implementation of GST.
A senior official from HDFC Mutual Fund told Cafemutual that the fund house has received inflows largely from retail investors.
Srinivas Rao Ravuri, fund manager of the scheme, had earlier said that after implementation of GST and growth in digitalisation, there will be level playing field between the organised and unorganised companies. With organised players likely to gain market share at the cost of unorganised players, we may see higher earnings growth in the organised space, he added.
On the other hand, Amar Shah, Head Retail Business, ICICI Prudential Mutual Fund says, “ICICI Prudential Value Fund (Series 15) saw participation from both retail as well as banking channel. The number of applications from IFA channel was much higher.” Sankaran Naren, Ihab Dalwa, and Priyanka Khandelwal will co-manage the fund.
Birla Sun Life Resurgent Fund (Series 4) received 17,515 applications. The fund will focus on consumer goods and building materials companies which are likely to benefit from GST. Jayesh Gandhi will manage this fund.