Top Stories
MFAC suggests reduction in ARN registration fee for distributors
The Mutual Fund Advisory Committee (MFAC) has suggested to SEBI (Securities and Exchange Board of India) to reduce the ARN registration fee for distributors. According to the MFAC, current registration fee is restricting the advisors to join the industry, particularly from tier-II and tier-III cities.
The ARN renewal fee was increased from Rs. 250 to Rs. 2,500 for individuals and corporate employees from 1 June 2010. Individuals seeking new ARN license have to spend more. The fee was hiked across the board for all categories of distributors like banks, post offices, partnership firms, etc. AMFI had also reduced the validity period of ARN license from five years to three years… Read more
Fidelity MF puts on hold its plans to launch new schemes
Market regulator SEBI (Securities and Exchange Board of India) rule is preventing Fidelity Mutual Fund from launching new schemes, according to media reports.
The rule says that asset management companies (AMCs) undergoing a change in ownership are not allowed by SEBI to launch new schemes. At present, Fidelity Mutual Fund is being acquired by L&T Mutual Fund… Read more
EPFO subscribers to get statements online
Around 50 million subscribers of the Employees’ Provident Fund Organisation (EPFO) can obtain e-passbook with details of their updated accounts online from 25th July, Central Provident Fund Commissioner RC Mishra said.
Mr Mishra was speaking at a seminar on ‘Employees’ Provident Funds and MP Act–Implementation & difficulties’ in New Delhi. The seminar was also addressed by senior government officials from the ministry, officials from central provident funds organisation, regional provident funds commissioners and senior industrialists… Read more
Provident Funds and MP Act-Implementation & difficulties
“To achieve the objectives of the Provident Fund Scheme, it is must to ensure a high degree operational and administration efficiency of the PF Organization instead of time consuming formalities. The present EPF and MP Act have lot of burning issues and confusions,” Chairman, Industrial Relations Committee, PHDCCI, Ravi Wig said… Read more
Fund Managers’ Speak
An attractive destination for holidays, and IPOs
According to Mark Mobius, many Western investors would likely have little trouble naming this year’s biggest initial public offering (IPO) in the US. But they probably don’t know that two of the top three global IPOs so far this year have been in a nation probably better known as a holiday destination than an investment one. That country is Malaysia, where an interesting story has been unfolding in the IPO market… Read more
Domestic News
IDBI Mutual Fund to raise Rs. 1 billion from Gold Fund
IDBI Mutual Fund has launched IDBI Gold Fund—an open-ended fund of funds (FoF) scheme. The Fund offers facility to invest in gold by way of lump sum investment or accumulation through regular SIP (systematic investment plan). IDBI Gold Fund is the simple way of holding gold. It has 24-carat convenience. There is assured purity of 99.5% and no storage charges.
IDBI Asset Management Ltd—a wholly owned subsidiary of IDBI Bank Ltd—has assets of over Rs. 50 billion plus. “At IDBI AMC, our aim is to provide good investment options to investors,” added Debasish Mallick, MD & Chief Executive Officer, IDBI Asset Management Ltd. Mutual funds allow investors to invest judiciously in various asset classes—equity, debt and gold—for long-term wealth creation. In terms of asset allocation, debt and equity should comprise 35% each of your portfolio, while 10%-15% should be allocated to gold and the remaining should be cash for emergency needs, said Mr Mallick… Read more
Peerless MF to increase customer base to 2 lakh in 3 yrs
To increase its penetration in rural areas, Peerless Mutual Fund is planning to widen its vernacular reach, Akshay Gupta, MD & CEO, Peerless Mutual Fund, said.
The fund house is planning to design banners and application forms in languages such as Telugu, Tamil and Gujarati. Investors can also reach out to call centres and communicate in these languages for buying the products of the fund house, Mr Gupta said… Read more
Bancassurance is low-cost distribution channel for MF industry: IDBI MF
IDBI Mutual Fund, which launched its Gold Fund on 25th July, is focusing on bancassurance channel to market its product. IDBI MF has tied up with two public sector banks—Indian Overseas Bank & Corporation Bank—to sell their products. The products will also be available with two private banks—Federal Bank and Lakshmi Vilas Bank.
"Bancassurance is a low-cost distribution channel that is essential for the mutual fund industry. We are already selling products through IDBI Bank. We have now tied-up with other banks," IDBI MF managing director and CEO Debasish Mallick said. He was in Kolkata to launch IDBI Gold Fund, an open-ended fund of funds (FoF) scheme. IDBI MF is looking beyond tier-I cities for expanding its business. We are planning to expand our reach in tier-II and tier-III, added Mr Mallick… Read more
Fund houses need to finance investor education
A mutual fund advisory committee appointed by SEBI (Securities and Exchange Board of India) has recommended raising the fees—expense ratio—that fund houses charge investors to manage and operate schemes.
In August 2009, SEBI banned entry load on mutual funds to protect the interest of investors. However, the ban on entry load also hampered fresh investments in mutual funds as distributors were not interested in selling the product. Unless distributors have a decent compensation for their efforts, they would not sell mutual funds… Read more
UTI MF merges G-Sec Fund with Gilt Advantage Fund
UTI Mutual Fund has approved the merger of UTI G-Sec Fund-Investment Plan with UTI Gilt Advantage Fund-LTP (Long Term Plan) from 30 August 2012. The notice period of this exit option shall commence from 1 August 2012 and conclude on 30 August 2012.
Birla Sun Life Asset Management launches “Click-In”
Birla Sun Life Asset Management Company Limited (BSLAMC), a part of Aditya Birla Financial Services Group (ABFSG), is taking forward its belief in technological innovation by launching a one of its kind mobile platform –“Click-In”. Click-In offers a unique ability to distributors to submit completed applications via a mobile phone through GPRS. As the name suggests, images of the completed application are uploaded on to a central server where the transaction receipt time is recorded and used for allotment of NAV… Read more
Investment strategy: Living for the present
Focusing on auditors' qualifications and comments is must for informed decision making. Auditors act as trustees of the shareholders and certify the books of accounts prepared by Auditors' comments and qualifications raise flags for investors. Thus, investors should carefully analyse these comments… Read more
SBI MF to revise benchmark index under Infrastructure Fund-Series I
SBI Mutual Fund has revised the benchmark index under SBI Infrastructure Fund-Series I from 25 July 2012. Accordingly, the new benchmark index will be CNX Infrastructure Index. The investment objective of the scheme is to provide investors with opportunities for long term growth in Capital through an active management of investments in a diversified basket of equity stocks of companies directly or indirectly involved in the infrastructure growth in the Indian economy and in debt & money market instruments.
NFOs
Kotak MF launches 370 days fixed maturity plan
Kotak Mutual Fund has launched Kotak FMP Series 91-370 Days, a close-ended debt scheme with the duration of 370 days from the date of allotment of units. The new issue will close on 30 July 2012.
The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme… Read more
DSP BlackRock MF launches 12 months fixed maturity plan
DSP BlackRock Mutual Fund has launched DSP BlackRock FMP-Series 62-12M, a close-ended income scheme with the duration of 12 months. The new issue will be open for subscription from 30 July and will close on 1 August 2012. The scheme will mature on 8 August 2013… Read more
Peerless MF declares tax free dividend
Peerless Mutual Fund has declared tax free dividend under the Quarterly Dividend Option of Peerless Income Plus Fund (an open-ended debt scheme). The record date for dividend was July 23, 2012. This is the sixth quarterly dividend since inception.
Reliance Yearly Interval Fund files offer document with SEBI
Reliance Mutual Fund has filed offer document with SEBI to launch Reliance Yearly Interval Fund-Series 11, a debt oriented interval scheme.
The investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of central, state government securities and other fixed income/debt securities maturing on or before the next specified transaction date of the scheme with the objective of limiting interest rate volatility… Read more
UTI MF declares dividend for Fixed Term Income Fund-Series X-III
UTI Mutual Fund has announced 30 July 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of UTI Fixed Term Income Fund-Series X - III (370 days). The quantum of dividend will be 100% of distributable surplus as on record date.
UTI Fixed Term Income Fund-Series X-IV announces dividend
UTI Mutual Fund has announced 31 July 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of UTI Fixed Term Income Fund-Series X-IV (369 days).
The quantum of dividend will be 100% of distributable surplus as on record date. The NAV under retail option of the scheme stood Rs. 10.0725 per unit as on 24 July 2012… Read more
IDFC MF declares dividend for Super Saver Income Fund
IDFC Mutual Fund has announced 31 July 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the bimonthly dividend option of IDFC Super Saver Income Fund-Medium Term Plan. The quantum of dividend will be Rs. 0.1886 per unit, subject to availability of distributable surplus as on the record date. The scheme recorded NAV of Rs. 10.9116 per unit as on 24 July 2012… Read more
Kotak Contra Fund announces dividend
Kotak Mutual Fund has announced 31 July 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend option of Kotak Contra Fund, an open-ended equity growth scheme. The quantum of dividend will be Rs. 1 per unit as on the record date. The scheme recorded NAV of Rs. 16.271 per unit as on 24 July 2012. The investment objective of the scheme is to generate capital appreciation with a diversified portfolio of equity and equity related securities.
Pramerica MF to revise exit load of Dynamic Bond Fund
Pramerica Mutual Fund will revise the exit load structure of Pramerica Dynamic Bond Fund from 1 August 2012. The exit load charge will be 1.25% if redeemed/switched out on or before 365 days from the date of allotment… Read more
SBI MF announces changes under Short Horizon Debt Fund
SBI Mutual Fund has approved the following changes under the dividend payout facility of SBI Short Horizon Debt Fund-Ultra Short Term Fund-Monthly Dividend Option and SBI Short Horizon Debt Fund-Short Term Fund-Fortnightly & Monthly Dividend Option from 25 July 2012. Accordingly, dividend payout facility will be available irrespective of amount of investment… Read more
LIC Nomura MF announces dividend for Fixed Maturity Plan-Series 48
LIC Nomura Mutual Fund has announced 31 July 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 Fixed Maturity Plan-Series 48. The quantum of dividend will be entire distributable surplus as on the record date. The scheme recorded NAV of Rs. 10.9433 per unit as on 20 July 2012… Read more
Birla Sun Life Fixed Term Plan-Series FT floats on
Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series FT, a close-ended income scheme with the duration of 367 days from the date of allotment. The new issue will be open for subscription from 30 July and will close on 2 August 2012… Read more
UTI-Regular Income Scheme files offer document with SEBI
UTI Mutual Fund has filed offer document with SEBI to launch UTI-Regular Income Scheme, an open-ended income scheme.
The investment objective of the scheme is to generate regular income through investments in fixed income securities and capital appreciation/dividend income through investment of a portion of net assets of the scheme in equity & equity related instruments and/or gold ETFs so as to endeavor to make periodic income distribution to unitholders… Read more
SBI MF declares dividend under Debt Fund Series-367 Days-4 & 90 Days-62
SBI Mutual Fund has announced 30 July 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-367 Days-4 and SBI Debt Fund Series-90 Days-62.
The quantum of dividend will be entire distributable surplus as on record date. The scheme would mature on 30 July 2012 and accordingly, units shall be suspended from trading on the BSE.
LIC Nomura MF Fixed Maturity Plan-Series 48 announces maturity date
LIC Nomura Mutual Fund has fixed 31 July 2012 as the record date for determining the eligible unit holders units (in demat form) of LIC Nomura MF Fixed Maturity Plan-Series 48, a close-ended income scheme, who would be entitled to the maturity proceeds. The maturity date of LIC Nomura MF Fixed Maturity Plan-Series 48 is on 31 July 2012.
Birla Sun Life MF declares dividend for 2 schemes
Birla Sun Life Mutual Fund has announced 30 July 2012 as the record date for declaration of dividend on the face value of Rs. 10 per unit under the dividend options of two schemes… Read more
DSP BlackRock MF announces maturity proceedings of FMP-12M-Series 26
DSP BlackRock Mutual Fund has fixed 30 July 2012 as the record date for the purpose of determining the eligible unitholders of DSP BlackRock FMP-12M-Series 26, a closed-ended income scheme, who would be entitled to the maturity. The maturity of DSP BlackRock FMP-12M-Series 26 is on 1 August 2012… Read more
L&T FMP-IV (April 90D A) announces dividend
L&T Mutual Fund has announced 31 July 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-IV (April 90D A). The quantum of dividend will be 100% of distributable surplus as on record date on the face value of Rs. 10 per unit. The scheme would mature on 31 July 2012 and accordingly, units shall be suspended from trading on the NSE, where the scheme is listed.
New appointments
ING MF announces change in fund management responsibilities
ING Mutual Fund has announced that Himanshu Shethia has resigned from the services of ING Investment Management (I) Pvt Ltd and will cease to be the fund manager of ING Treasury Advantage Fund, ING Income Fund, ING Liquid Fund and ING Short Term Income Fund from the close of business hours of 26 July 2012.
Further, Nidhi Sharma will be designated as the fund manager for above mentioned schemes from 27 July 2012. She holds B.A. (Hons) Economics, MBA-Finance.
HDFC MF announces changes in fund management responsibilities
HDFC Mutual Fund has announced change in fund management responsibilities under its schemes from 25 July 2012.
Accordingly, HDFC Cash Management Plan-Savings Plan & Call Plan, HDFC Quarterly Interval Fund, HDFC Fixed Maturity Plans-Series XXI & XXII will be managed by Anil Bamboli and HDFC Fixed Maturity Plans-Series XVIII, XIX & XX will be managed by Shobhit Mehrotra.
Bharat Pareek, fund manager-fixed income, has resigned from the services of HDFC Asset Management and shall cease to be the fund manager of the above mentioned schemes from 24 July 2012.