Reliance Mutual Fund lowest bidder for managing NPS
Reliance Mutual Fund lowest bidder for managing NPS
MUMBAI: Reliance Mutual Fund has emerged as the lowest bidder among the fund managers qualified to manage funds in National Pension Scheme (NPS) for private sector on behalf of the sector regulator PFRDA. Its bid of 1 paise for every Rs 100 worth of NPS funds was way below the other nine bidders, which included UTIMF, DSP Blackrock MF and HDFC Pension Fund Management, a wholly-owned subsidiary of HDFC Standard Life. Bids by all the other nine entities were between 15 paise and 25 paise per Rs 100 worth of funds, sources said.
In the next stage, according to PFRDA's request for proposal for bids that was published earlier, all the bidders who bid higher than Reliance MF, will be asked to match the lowest bid, that is Reliance MF's. The fund managers who finally qualify under this round of bidding will manage NPS funds of between Rs 500 crore and Rs 1,000 crore, sources said.
Industry players, however, said that Reliance MF's bid did not make any commercial sense since the cost has to take care of fund management fees, brokerage expenses, marketing etc, and all these costs cannot be covered within the 1 paise cost the company has bid. "This can actually distort the market," said a top official associated with the pension fund management at one of the fund houses which had bid higher than Reliance MF. A spokesperson for Reliance MF declined to comment.
Thanking you
Regards,
Rajesh Kumar Kathpalia ¤ SMC Global
17,Netaji Subhash Marg,Daryaganj,
New Delhi-110002 Mobile No 9891645052
Email Id: rajesh.ipo@smcindiaonline.com
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MUMBAI: Reliance Mutual Fund has emerged as the lowest bidder among the fund managers qualified to manage funds in National Pension Scheme (NPS) for private sector on behalf of the sector regulator PFRDA. Its bid of 1 paise for every Rs 100 worth of NPS funds was way below the other nine bidders, which included UTIMF, DSP Blackrock MF and HDFC Pension Fund Management, a wholly-owned subsidiary of HDFC Standard Life. Bids by all the other nine entities were between 15 paise and 25 paise per Rs 100 worth of funds, sources said.
In the next stage, according to PFRDA's request for proposal for bids that was published earlier, all the bidders who bid higher than Reliance MF, will be asked to match the lowest bid, that is Reliance MF's. The fund managers who finally qualify under this round of bidding will manage NPS funds of between Rs 500 crore and Rs 1,000 crore, sources said.
Industry players, however, said that Reliance MF's bid did not make any commercial sense since the cost has to take care of fund management fees, brokerage expenses, marketing etc, and all these costs cannot be covered within the 1 paise cost the company has bid. "This can actually distort the market," said a top official associated with the pension fund management at one of the fund houses which had bid higher than Reliance MF. A spokesperson for Reliance MF declined to comment.
Thanking you
Regards,
Rajesh Kumar Kathpalia ¤ SMC Global
17,Netaji Subhash Marg,Daryaganj,
New Delhi-110002 Mobile No 9891645052
Email Id: rajesh.ipo@smcindiaonline.com
--
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To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com.
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