SEBI announces Rajiv Gandhi Equity Savings Scheme norms
Capital market regulator SEBI (Securities and Exchange Board of India) on Thursday announced the framework for Rajiv Gandhi Equity Savings Scheme (RGESS), an Indian government initiative aimed at attracting small investors into the capital market.
The objective of RGESS is to encourage the savings of the small investors in domestic capital market. The deduction under the Scheme shall be available to a new retail investor.
As announced in the Union Budget 2012-13, the Finance Act 2012 has introduced a new section 80CCG on ‘Deduction in respect of investment made under an equity savings scheme’ to give tax benefits to new investors who invest up to Rs. 50,000 and whose gross total annual income is less than or equal to Rs. 10 lakh, the SEBI circular said… Read more
Mutual funds offload Rs. 25.20bn in equity in October
Investors invested around Rs. 470 billion in various mutual funds (MFs) during October, making it the highest net inflow in six months, after a net outflow in the previous month.
At gross level, mutual funds mobilised a total amount of Rs. 5.92 trillion, while there were redemption worth Rs. 5.46 trillion—resulting into a net inflow of Rs. 467.2 billion, according to the latest SEBI data.
This was the highest monthly net inflow since April, when investors invested in Rs. 927.46 billion in mutual fund schemes. There were net outflows of Rs. 519.07 billion in September. Mutual Funds made net investment of Rs. 144.78 billion in the secondary market in October 2012 compared to investment of Rs. 469.11 billion in September 2012… Read more
FM encourages banks, financial institutions to launch IDFs
In order to attract long-term funds to infrastructure projects, the finance ministry is ready to invest infrastructure debt funds (IDFs) to refinance bank loans to such projects the facility of first charge on escrow accounts of terminated projects.
The new model tripartite agreement (for road projects) formed among the National Highways Authority of India, the road builder (concessionaire) and IDFs also gives on these funds the title of “senior lender” and gives them all rights and privileges as enjoyed by the lead bank. This tripartite agreement is based on the model concession agreements for National Highways and State Highways respectively… Read more
Rising market… AMCs plan to launch new equity funds
With the markets showing optimistic move, asset management companies (AMCs) are apparently gaining confidence and are planning to launch new fund offers (NFOs) in the equities segment, according to media reports.
Around four AMCs have filed offer documents with capital market regulator SEBI (Securities and Exchange Board of India) for launching new equity schemes in the past one month, the reports added… Read more
Total AUM of PMS industry rises 0.9% to Rs. 5.62 trillion in Oct
Total assets under management (AUM) of portfolio management services (PMS) industry have increased by 0.9% from Rs. 5.57 trillion in September 2012 to Rs. 5.62 trillion in October 2012, according to SEBI November 2012 bulletin.
As on October 31, 2012, AUM of discretionary PMS constitute 82.5% of the total AUM of PMS industry followed by advisory PMS (13.3%) and non-discretionary PMS (4.2%), the SEBI data added… Read more
Most fund managers see 15%-20% upside after a year: ICICI Securities
The Fund Managers Survey, conducted by ICICI Securities, covers 12 domestic fund managers from the mutual fund industry. The Fund Manager Survey is conducted on a quarterly basis.
The overall outlook and investment sentiment towards equity market has improved significantly over the last three months. Total 58% of the fund managers surveyed expects the market to be up between 15% and 20% after one year. Opinion, however, seems divided over valuations of the market with 50% of the fund managers believe that equity markets are undervalued while remaining 50% believe it to be fairly valued… Read more
PFRDA to offer more freedom to fund managers: Reports
The PFRDA (Pension Fund Regulatory and Development Authority) is planning to provide pension fund managers (PFMs) some freedom in valuing their portfolios to help them show better returns, according to media reports.
The move is aimed at adding more subscribers to join the National Pension System (NPS), which has failed to attract substantial interest from the unorganised sector that includes workers, vegetable vendors, hawkers, domestic helpers, etc, the reports added… Read more
EPFO launches e-Passbook service
Around 50 million provident fund subscribers can check their account statements online as EPFO (Employees Provident Fund Organisation) on Friday launched its e-Passbook service… Read more
XIRR: How to calculate your returns
XIRR is a more powerful function in Excel for calculating annualized yield for a schedule of cash flows occurring at irregular periods… Read more
What is IRR & how to calculate it?
The internal rate of return is usually used to calculate the profitability of investments made in a financial product or projects… Read more
REC launches tax free secured redeemable non-convertible bonds
Rural Electrification Corporation Ltd is one of only 16 public sector undertakings to be granted “Navratna” status by the Department of Public Enterprise. REC is engaged in the financing and promotion of Power Generation, Transmission and Distribution including renewable energy projects throughout India. REC has been authorized by the CBDT notification dated November 6, 2012 and corrigendum thereof dated November 15, 2012 to raise funds upto Rs. 5,000 crore through issue of tax free bonds… Read more
CMD, Bank of India launch BOI AXA SIP SHIELD
BOI AXA Investment Managers Pvt. Limited, a joint venture between Bank of India and AXA Investment Managers launched another retail customer friendly facility - BOI AXA SIP SHIELD. Combining the inherent benefits of investing through the Systematic Investment Plan (SIP), now very popular with retail investors in equity mutual funds, SIP SHIELD offers life insurance cover with no extra cost to the investor… Read more
Quantum MF launches online payment facility
Quantum Mutual Fund has announced the introduction of Internet Mobile Payment Service (IMPS), with effect from 4 December 2012. Accordingly, investors of the fund house shall have an option to pay for the subscription (purchase) application made on the website i.e. www.QuantumMF.com / www.QuantumAMC.com through IMPS.
Raise personal income tax exemption to Rs. 3 lakh: Assocham
Raise personal income tax exemption limit to Rs. 3 lakh, reduce service tax and excise tax to 8% from 12% and increase deduction of interest on housing loan to Rs. 5 lakh to revive consumer demand and boost investment, ASSOCHAM said in its pre-Budget recommendations to the government. The effective rate of corporate tax should also be brought down to 25% from 32.45% at present.
“The base exemption limit of resident individual below the age of 60 years should be increased to Rs 3 lakh, to incentivize people to come into the tax net , ensure higher collection from greater compliance and encourage consumption and savings,” reveals the ASSOCHAM pre-Budget memorandum for 2013-14… Read more
Do investors make rational investment & portfolio decisions?
Retail equity investors in India systematically lose out to other categories of players because they sell the winning stocks too quickly and hold on to the losing stocks too long, according to a study by Indian School of Business (ISB).
Individual investors are more behaviorally biased than the other categories of investors. As a result, they systematically lose to the other categories of investors. Further, the losses they experience are economically large, the study pointed out… Read more
Aashish Somaiyaa to join Motilal Oswal AMC as CEO
Aashish Somaiyaa—head of retail business at ICICI Prudential Asset Management is set to join Motilal Oswal Asset Management Company as its chief executive officer.
Reports indicate he has already put in his papers at ICICI Prudential AMC where he has been employed since May 2000. He is expected to take charge later this month.
Sanjay Sachdev quits Tata Mutual Fund
Tata Mutual Fund has announced that Sanjay Sachdev has resigned from the services of Tata AMC and hence has ceased to be key personnel from 30 November 2012.
US SEC Chairman Mary Schapiro to step down on December 14
US Securities and Exchange Commission Chairman Schapiro, who became chairman in the wake of the financial crisis in January 2009, strengthened, reformed, and revitalized the agency. She oversaw a more rigorous enforcement and examination program, and shaped new rules by which Wall Street must play.
“It has been an incredibly rewarding experience to work with so many dedicated SEC staff who strive every day to protect investors and ensure our markets operate with integrity,” said Chairman Schapiro. “Over the past four years we have brought a record number of enforcement actions, engaged in one of the busiest rulemaking periods, and gained greater authority from Congress to better fulfill our mission.”… Read more
Sovereign default & expropriation risks worry investors: MIGA
Foreign investors, attracted by stronger economic growth in developing countries while mindful of risks, remain relatively optimistic about these destinations in the short term according to the results of a survey released in a report by the World Bank’s Multilateral Investment Guarantee Agency (MIGA). World Investment and Political Risk noted that half of the survey’s respondents plan to increase investment in developing countries in the next 12 months. This sentiment dovetails with foreign direct investment (FDI) trends that show developing-country flows continue to account for a substantial share of global FDI: in 2012 they are estimated to be 36 percent of inflows and 14 percent of outflows. FDI to developing countries is expected to rebound in 2013 to exceed pre-2008 highs… Read more
Preqin expands presence to Silicon Valley
Preqin, the leading provider of data and intelligence to the alternative assets industry, has opened its new office in Silicon Valley, California.
This additional West Coast presence complements existing offices in New York, London and Singapore, reinforcing Preqin’s position as a comprehensive global data provider on private equity, hedge funds, real estate and infrastructure… Read more
IDBI Mutual Fund launches Gilt Fund
IDBI Mutual Fund has launched IDBI Gilt Fund, an open ended dedicated gilt scheme. The New Fund Offer (NFO) will open for subscription on December 5, 2012 and close on December 17, 2012… Read more
Kotak Quarterly Interval Plan Series 1 announces dividend
Kotak Mutual Fund has announced 12 December 2012 as the record date for declaration n of dividend under the dividend option of Kotak Quarterly Interval Plan Series 1. The quantum of dividend per unit will be entire appreciation in Net Asset Value of dividend option until 12 December 2012 on the face value of Rs 10 per unit.
ICICI Pru Interval Fund II-Quarterly Interval Plan D announces dividend
ICICI Prudential Mutual Fund has announced 12 December 2012 as the record date for declaration of dividend under the dividend options of ICICI Prudential Interval Fund II-Quarterly Interval Plan D. The recommended rate of dividend on the face value of Rs 10 per unit will be Rs 0.1857 per unit under retail dividend and Rs 0.1913 per unit under dividend (formerly institutional dividend).
Peerless Income Plus Fund declares monthly dividend
Peerless Mutual Fund has declared dividend under the Monthly Dividend Option for Retail & Super Institutional Plan of Peerless Ultra Short Term Fund (an open ended debt scheme). The record date for dividend was November 30th, 2012… Read more
ICICI Pru MF announces change in exit load structure under two schemes
ICICI Prudential Mutual Fund has announced change in exit load structure under two schemes with effect from 3 December 2012… Read more
UTI Masterplus Unit Scheme announces dividend
UTI Mutual Fund has announced 12 December 2012 as the record date for declaration of dividend under the dividend option of UTI Masterplus Unit Scheme. The quantum of dividend will be 20% or Rs. 2 per unit on the face value of Rs. 10 per unit.
Peerless Liquid Fund declares dividend under monthly dividend options
Peerless Mutual Fund has declared dividend under the Monthly Dividend Option for Retail & Super Institutional Plan of Peerless Liquid Fund (an open ended Liquid scheme). The record date for dividend was November 30th, 2012… Read more
Reliance Fixed Horizon Fund XXI Series 16 announces dividend
Reliance Mutual Fund has announced 11 December 2012 as the record date for declaration of dividend under the dividend option of Reliance Fixed Horizon Fund XXI Series 16. The dividend amount per unit will be entire distributable surplus available in the scheme as on the record date on the face value of Rs 10 per unit.
Religare Fixed Maturity Plan-Series XI-Plan A (369 Days) announces dividend
Religare Mutual Fund has announced 11 December 2012 as the record date for declaration of dividend under the dividend option of Religare Fixed Maturity Plan-Series XI-Plan A (369 Days). The dividend amount per unit will be entire distributable surplus as on the record date on the face value of Rs 10 per unit… Read more