SEBI to consider reintroduction of entry loads
The SEBI (Securities and Exchange Board of India), at its board meeting on August 16, will consider the reintroduction of a 2% entry load for mutual funds which are sold in more than top 15 cities. The regulator will also consider giving asset management companies (AMCs) greater flexibility in managing their total expense ratio. SEBI may also discuss with the government options like tax breaks to investors, according to media reports… Read more
SEBI to make expense ratio flexible for AMCs
To revive the mutual fund industry, market regulator SEBI (Securities and Exchange Board of India) is planning to consider a revival plan for the mutual fund business, which includes getting distributors to search for new investment again, media reports said.
At present, in case of expense ratio, asset management companies (AMCs) have a fixed annual maintenance charge fee and breakup of other costs. The regulator is considering to make the expense ratio flexible—that is a fund house can now decide what it wants to charge as fee and what portion it can keep aside for its marketing costs and distributor’s fees… Read more
EPFO approves RCap-Nippon Life deal
The Central Board of Trustees (CBT) of the EPFO (Employees' Provident Fund Organisation) on Tuesday has approved the proposal of Reliance Capital Asset Management (RCAML) to sell 26% stake to Japanese insurer Nippon Life. The deal is worth around Rs. 14.5 billion… Read more
Awareness about NPS needs to be created among investors
A few years back, pension fund regulator PFRDA (Pension Fund Regulatory and Development Authority) introduced National Pension System (NPS) to provide old age income. An online facility, NPS is portable. You can operate your account from anywhere in the country, even if you change your city or job. The product also provides tax benefit up to Rs. 1 lakh is available under Section 80 CCD. Any individual between 18 years to 60 years who is citizen of India can enroll in NPS. Even an NRI can enroll for NPS… Read more
Rajiv Gandhi Equity Savings Scheme is simple but risky
The finance ministry is expected to launch Rajiv Gandhi Equity Savings Scheme (RGESS) by 15th August. At present not much information is available on RGESS besides tax benefits and lock-in period among others.
To enhance savings and attract retail investment in capital markets, former finance minister, Pranab Mukherjee in 2012-13 Budget had announced RGESS. Under the Scheme, 50% tax deduction would be allowed to retail investors with annual income less than Rs. 10 lakh, for investment up to Rs. 50,000, with a lock-in period of three years… Read more
Fund Managers’ Speak
Customers want simple products: Edelweiss MF
Vikaas Sachdeva, CEO, Edelweiss Asset Management Ltd, says, “At Edelweiss, the core quant philosophy is to build adaptive strategies that beat the market consistently with diversified portfolios.”… Read more
GAAR: A collaborative approach required
Introduction of General Anti-Avoidance Rule or “GAAR”, as popularly called, has been one of the most controversial amendments in the Income-tax Act, 1961 which has come in the Union Budget of 2012.The substantive provisions of GAAR, applicable from 1st April, 2013 are contained in Chapter X-A of the Income-tax Act, 1961, which comprises Section 95 to 102… Read more
NPS creates huge opportunities for life insurers
Despite the New Pension System (NPS) throwing up a large opportunity to life insurers, there are not enough players in the system to take advantage of this, the Pension Fund Regulatory and Development Authority (PFRDA) said.
According to PFRDA Chairman Yogesh Agarwal, the minimum 40% contribution under NPS towards annuity is a great opportunity for life insurers, as they can get captive customers from this system. But we don't have enough players in this area… Read more
EPFO allowed to invest in CDs, CBLO
The Central Board of Trustees—EPFO’s (Employees’ Provident Fund Organisation) apex decision making body—on Tuesday has decided to increase investments in certificates of deposits (CDs) of public sector banks and in term deposits with maturities ranging from one and five years. The Trustees also allowed EPFO to borrow from the collateral borrowing and lending obligations (CBLO) market, approved by the Reserve Bank of India… Read more
SEBI opens local office in Bengaluru
The Securities and Exchange Board of India (SEBI) has established its local office in Bengaluru under the administrative control of its southern regional office in Chennai. The local office at Bengaluru was inaugurated by Rajeev Kumar Agarwal, whole-time member, SEBI.
The local office so established shall look after the regulatory aspects of investor protection, investor education and such other functions as may be delegated from time to time, and its role and responsibility shall extend to the areas falling under the territorial jurisdiction of Karnataka.
AMFI gets SEBI nod to launch trading platform
Market regulator SEBI (Securities and Exchange Board of India) has cleared the proposal for the launch of AMFI’s (Association of Mutual Funds in India) mutual fund transaction routing platform. The platform will provide investors with a common account number (CAN) so that investors can invest across schemes and fund houses using this number.
The MF utility platform will have a single cheque payment system and common account statement for all the schemes that investors have invested in across asset management companies (AMCs). Currently, investors need to submit separate cheques for making investments in each scheme… Read more
India-focused offshore funds & ETFs saw an outflow of $1.1 billion in June quarter
India focused offshore funds & ETFs registered an outflow of $1.1 billion during the quarter ended June, after a healthy inflow of $798 million during the quarter ended March, according to Morningstar. The sharp depreciation in the rupee, coupled with macroeconomic concerns of a slowdown and ballooning deficit, weighed on sentiments and resulted in outflows during the quarter.
Assets of all India focused offshore India funds & ETFs fell by about 12% to $33 billion during the quarter ended June. The cumulative assets of these funds & ETFs are now down by almost 40% from a peak of about $54 billion at the end of 2010.
Pharma and FMCG Funds gains in July
Domestic equity markets fell during July, due to various factors such as weak monsoon trends and domestic policy paralysis alongside weak global cues. The barometer indices—Sensex and Nifty fell 1.11% and 0.95%, respectively.
Of the sectoral funds, pharma and FMCG Funds gained by 4.36% and 0.52% respectively in July. While Infotech and Banking Funds fell by 5.82% and 0.02% respectively… Read more
Fundsupermart.com launches Android application
Online mutual fund distributor Fundsupermart.com has launched an android application called FSM Mobile for the Android Smartphone platform. It is free not only to all the clients of Fundsupermart.com, but also for anyone who wishes to download the app on his phone.
"Our objective is to make investing in mutual funds hassle free and simple by leveraging our online platform," says Rajesh Krishnamoorthy, Managing Director, fundsupermart.com… Read more
RCAM launches unique mobile based services
Reliance Capital Asset Management part of Reliance Capital Ltd, announced the launch of unique mobile based investment initiative that allows investments in mutual funds using mobile phones.
This was announced by Sundeep Sikka, CEO, RCAM. The initiative has been launched in partnership with HSBC… Read more
NPS: Building substantial corpus for your retirement
Retirement planning involves time and skill. Unfortunately, many of us hate finance and remain ignorant towards it. At the same time, we also remain ignorant towards our retirement planning. Some of us constantly delay our decision to make investments—saying there is a lot of time for our retirement. Most of us do make investment. However, we invest randomly in different investment options and prefer easy exit. Hardly anyone plans for retirement systematically. We need to understand that for retirement planning we have to focus on financial products where we can invest for long term and not touch our investment till we retire… Read more
Franklin Templeton MF to revise fundamental attributes under FT India Balanced Fund
Franklin Templeton Mutual Fund has announced the revision of fundamental attributes for FT India Balanced Fund. The changes will be effective from 10 September 2012… Read more
ICICI Pru MF launches three year fixed maturity plan
ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 64-3 Years Plan H, a close-ended debt scheme. The tenure of the scheme is 1,098 days. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 13 August and will close on 21 August 2012… Read more
DSP BlackRock MF declares dividend for DSP BlackRock FMP-Series 49-3M
DSP BlackRock Mutual Fund has announced 13 August 2012 as the record date for declaration of dividend in the dividend payout option of DSP BlackRock FMP - Series 49 - 3M, a close ended income scheme. The quantum of dividend will be up to 100% of distributable surplus as on record date on the face value of Rs. 10 per unit. The scheme will mature on 13 August 2012.
LIC Nomura MF Balanced Fund announces dividend
LIC Nomura Mutual Fund has announced 14 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of LIC Nomura MF Balanced Fund.
SBI MF declares dividend under Debt Fund Series-90 Days-63
SBI Mutual Fund has announced 14 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of SBI Debt Fund Series-90 Days-63. The scheme would mature on 14 August 2012 and accordingly, units shall be suspended from trading on the BSE.
HDFC MF declares dividend for HDFC FMP 90D May 2012 (1)
HDFC Mutual Fund has announced 13 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under normal dividend option of HDFC FMP 90D May 2012 (1), a fixed maturity plan under HDFC Fixed Maturity Plans-Series 22, a closed ended income scheme.
DWS Interval Fund-Annual Plan Series 1 to 3 files offer document with SEBI
Deutsche Mutual Fund has filed offer document with Sebi to launch DWS Interval Fund - Annual Plan Series 1 to 3, a debt interval scheme. The interval period will be 370 days. The new fund offer price is Rs. 10 per unit. The objective of the Scheme is to generate income by investing in debt and money market instruments maturing on or before the beginning of the immediately following Specified Transaction period of the scheme… Read more
HSBC Fixed Term Series 81 announces dividend
HSBC Mutual Fund has announced 13 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend payout option of HSBC Fixed Term Series 81.
SBI Debt Fund Series-90 Days-68 floats on
SBI Mutual Fund has launched SBI Debt Fund Series-90 Days-68, a close-ended debt scheme with the duration of 90 days. The new issue will be open for subscription from 10 August and closes subscription on 14 August 2012… Read more
DSP BlackRock MF launches 12 months fixed maturity plan
DSP BlackRock Mutual Fund has launched DSP BlackRock FMP-Series 63-12M, a close-ended income scheme with the duration of 12 months. The new issue will be open for subscription from 11 August and will close on 13 August 2012. The scheme will mature on 19 August 2013… Read more
Birla Sun Life MF declares dividend under Fixed Term Plan-Series DJ
Birla Sun Life Mutual Fund has announced 13 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of Birla Sun Life Fixed Term Plan-Series DJ.
Kotak MF declares dividend for Quarterly Interval Plan-Series 3
Kotak Mutual Fund has announced 13 August 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of Kotak Quarterly Interval Plan Series 3.
JPMorgan MF revises load structure of India Active Bond Fund
JPMorgan Mutual Fund has revised the exit load structure under Retail and Institutional Plan of JPMorgan India Active Bond Fund from 9 August 2012. Accordingly, if redeemed within 18 months from the date of allotment of units, the exit load charge will be 1%. If redeemed after 18 months from the date of allotment of units, the exit load charge will be nil.
JPMorgan India Income Fund-Series 502 files offer document with SEBI
JPMorgan Mutual Fund has filed offer document with SEBI to launch JPMorgan India Income Fund-Series 502, a 5 years close-ended income scheme. The New Fund Offer price is Rs. 10 per unit. The investment objective of the Scheme is to generate income through investments in Debt Securities/Money Market Instruments and Government of India Securities maturing on or before the maturity date of the Scheme… Read more
L&T FMP-VI (May 91D A) announces dividend
L&T Mutual Fund has announced 13 August 2012 as the record date for the purpose of determining the list of beneficial owners/unitholders and their eligibility to receive dividend under the dividend payout option of L&T FMP-VI (May 91D A)… Read more
ICICI Pru MF launches 367 days fixed maturity plan
ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 64-367 Days Plan J, a close ended debt scheme. The tenure of the scheme is 367 days. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 16 August and will close on 23 August 2012… Read more
L&T MF appoints Shriram Ramanathan as head-investment-fixed income
L&T Mutual Fund announced that it has appointed Shriram Ramanathan as head-investment-fixed income. This appointment is one of the key parts of L&T Mutual Fund's strategy of strengthening its investment management capability. Y.M. Deosthalee, Chairman and Managing Director, L&T Finance Holdings Ltd said, “I am pleased to welcome Shriram as the Head - Investment - Fixed Income at L&T Mutual Fund.”… Read more
Kotak MF announces appointment of key personnel
Kotak Mutual Fund has announced that Harsha Upadhaya has been appointed as the Head of Equities from 1 August 2012. He is aged 40 years and holds B.E. (Mechanical) from National Institute of Technology, Suratkal, Post Graduate Management (Finance) from Indian Institute of Management, Lucknow and Chartered Financial Analyst from the CFA Institute… Read more