Mutual Fund Newsletter - October 01 to October 05, 2012
JM Financial Mutual Fund has announced that, the surviving plan of JM High Liquidity Fund would be regular plan.
Mutual funds AUM up by 7.9% in Q3
Indian mutual funds’ average assets under management (AUM) rose by 7.9% or Rs. 545 billion to Rs. 7.47 trillion in the July-September 2012 quarter from Rs. 6.93 trillion in the previous quarter (excluding fund of funds) according to the latest numbers announced by the Association of Mutual Funds in India (AMFI).
The rise in average AUM in absolute as well as in percentage terms was the highest since September 2010 quarter, when the AMFI started declaring average AUM on quarterly basis. Rise in the average AUM was primarily due to inflows into income funds, ultra short term debt funds and money market mutual funds… Read more
16 lakh investor folios have closed in FY12: Reports
Out of 10 equity mutual funds (MFs) almost seven MFs in the country have shrunk in the past one year. Due to dull capital market and poor fund performance, many investors have either redeemed or stopped investing fresh money, according to media reports.
The mutual fund industry body Association of Mutual Funds in India (Amfi) data indicated that 16 lakh investor folios have closed in FY11-12. Despite of their size, equity funds have recorded outflows in the last one year period between July 2011 and June 2012, the reports added… Read more
Cabinet approves amendments to PFRDA Bill
The Union Cabinet approved the introduction of certain official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011. These official amendments have been necessitated in view of the recommendations of the Standing Committee on Finance which has examined the Bill. Based on the recommendations of the Standing Committee on Finance, the Government has decided to accept the following: That the subscriber seeking minimum assured returns shall be allowed to opt for investing his funds in such schemes providing minimum assured returns as may be notified by the Authority.
Withdrawals not exceeding 25% of the contribution made by subscriber will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by regulations by the Pension Fund Regulatory Authority and Development Authority (PFRDA)… Read more
Financial regulators to be merged in single agency: FSLRC
The Financial Sector Legislative Reforms Commission (FSLRC)—a government-appointed panel—on 1st October said that major regulators in the country such as SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), Pension Fund Regulatory and Development Authority (PFRDA) and Forward Markets Commission (FMC) should be merged into a unified financial agency (UFA), according to media reports.
The FSLRC was constituted by Ministry of Finance in March, 2011. The setting up of the FSLRC was the result of a felt need that the legal and institutional structures of the financial sector in India need to be reviewed and recast in tune with the contemporary requirements of the sector… Read more
SEBI attacks collective investment schemes: Reports
Market regulator SEBI (Securities and Exchange Board of India) attacks organizations involved in collective investment schemes (CIS) in West Bengal. According to SEBI, investments worth thousands of crores had been raised by some companies in West Bengal in violation of SEBI’s Collective Investment Scheme Regulations, the media reports said.
Some organisations against which SEBI has started legal action include MPS Greenery Developers, Rose Valley Real Estate & Constructions and Sun-Plant Agro. The regulator has launched prosecution in 59 cases, of which one case is pending before the Supreme Court regarding the issue of jurisdiction, the reports added… Read more
“The global economy is slipping into a synchronised slowdown. The latest business surveys in all major jurisdictions have turned more negative. There is greater uncertainty in the US economy compared to three months ago, especially with respect to the labour market”
Ravi Menon, Managing Director, Monetary Authority of Singapore
AMFI to set up committee to study direct plans: Reports
The mutual fund industry body AMFI (Association of Mutual Funds in India) in its recently held annual general meeting (AGM) decided that a sub-committee will be set up to study the implementation of the SEBI (Securities and Exchange Board of India) directive to launch direct plans, according to media reports.
This direct plan is intended for investors who deal with a mutual fund directly, without going through an intermediary distributor. The capital market regulator in its directive last month had directed to launch direct plans… Read more
190 MF schemes stop accepting new SIPs: Reports
Five asset management companies (AMCs) have listed out a total of 190 schemes that would be discontinued for new SIP investments to comply with SEBI guidelines, the media reports said.
According to SEBI guidelines, AMCs are required to launch only one plan for each scheme from October. The five AMCs include Reliance MF, ICICI Prudential MF, HSBC, Morgan Stanley and IDFC Mutual Funds. These AMCs mentioned the required changes in their schemes to the BSE, where many of their schemes are listed for trading, the reports added. A total of 190 schemes of these AMCs would be discontinued for subscription or registration in existing SIPs.
Cap on sectoral investment of funds to impact HFCs & NBFCs
In the circular dated September 13, 2012, SEBI mandated mutual funds/asset management companies (AMCs) to ensure that total exposure of debt schemes of mutual funds in a particular sector (excluding investments in bank certificate of deposits (CDs), collateralised borrowing and lending obligation (CBLO), government securities, treasury bills and AAA rated securities issued by public financial institutions) shall not exceed 30% of the net assets of the scheme. It is also required that existing schemes shall comply with the aforementioned requirement within a period of one year from the date of issue of this circular, during which period, total exposure of existing debt schemes of mutual funds in a particular sector should not increase from the levels existing (if above 30%)… Read more
Sahara asks SEBI for 6 months time to repay investors
Sahara Group has asked SEBI (Securities and Exchange Board of India) for six months timeframe to repay investors amount worth $3 billion, the media reports said.
In August 2012, the Supreme Court ordered Sahara to repay the money by the end of November as the issuance had violated capital markets norms. But, Sahara Group missed the deadline set by the Supreme Court aimed at giving the investors back their money, the reports added… Read more
IDF-NBFCs will provide benefits to stakeholders: CRISIL
The recent cabinet approval for model tripartite agreement (TA) by the Ministry of Finance (MoF) has set the stage for creation of the infrastructure debt fund (IDF). IDFs, structured as non-banking finance companies (IDF-NBFCs) and regulated by the Reserve Bank of India, will refinance existing loans of operational infrastructure projects. CRISIL estimates the immediate opportunity for IDF-NBFCs to be nearly Rs.20,000 Cr. In this process, they will bridge the gap between the low-risk appetite of India’s bond market investors and the relatively higher credit risk associated with infrastructure projects. IDF-NBFC will be able to achieve this by investing in good quality infrastructure assets with a support from credit enhancement mechanism… Read more
Average AUM of mutual fund industry grew by 7.86%
Good inflows into debt funds led to the rise in the average assets under management (AAUM) of the mutual fund (MF) industry by 7.86% (by Rs. 54,440.85 crore) to Rs. 7.47 lakh crore during the quarter ended September 2012 as against Rs. 6.92 lakh crore registered during the quarter ended June 2012. The increase in the AAUM during the quarter helped the industry to surpass the Rs. 7 lakh crore mark AAUM… Read more
MFs AUM rises 8% to Rs. 546.81 billion in Q2 FY13
Mutual funds assets under management (AUM) rose around 8% to Rs. 546.81 billion in the second quarter of the current financial year 12-13 due to improved stock market sentiment which helped AMCs to attract fresh investments.
According to the latest data released by AMFI (Association of Mutual Funds in India), the total average AUM of 44 AMCs increased to Rs. 7,537.03 billion in September 2012 quarter from Rs. 6,990.22 billion in the previous three-month period. This included the AUM of Fund of Funds managed by the AMCs in the domestic and overseas markets, the media reports added… Read more
MFs to discontinue SIPs, STPs under single plan by 31st Oct: Reports
Capital market regulator SEBI (Securities and Exchange Board of India) has allowed asset management companies (AMCs) to implement discontinuance of existing SIPs (systematic investment plans), STPs (systematic transfer plans) and dividend reinvestments under their mutual fund schemes which have separate plans for retail and institutional clients from November 01, 2012, the media reports said… Read more
Baroda Pioneer AMC to expand touch points by 123 cities
In a move, further re-affirming the commitment to servicing investors in the remotest corner of the country, Baroda Pioneer AMC (“BPAMC”) has announced a strategic expansion plan to strengthen its reach. BPAMC has tied up with Karvy Computershare Investor Service Centers to provide Investor Services facility at 203 locations. With effect from 1st October 2012, Baroda Pioneer Mutual Fund would start accepting transactions at following additional 126 cities, in addition to the 77 locations already active… Read more
ICICI Pru MF partners with Syndicate Bank for mutual fund distribution
ICICI Prudential Mutual Fund has entered into a strategic partnership with Syndicate Bank, one of India's most trusted and progressive PSU Banks for distribution of its mutual fund schemes to further strengthen its distribution reach. Syndicate Bank will now be distributing ICICI Prudential Mutual Fund products to its customers across India through its large network of 2,709 branches… Read more
Myths about financial planning
In India, ‘financial planning’ is a new and emerging concept in the field of financial services. Most of us want to improve our personal finances but we feel that going to a financial planner is a waste of time. Many people also misinterpret the term ‘financial planning’. According to them, financial planning means just savings money in FDs and other financial instruments… Read more
Simple strategies for investing success
Understanding your current financial situation (needs, time horizons… etc) and ascertaining your attitude towards risk is of paramount importance for making any investment decision. These two factors act as a guideline while establishing your financial goals and the type of investment you need to be making, to achieve those goal… Read more
ASSOCHAM submits Reviving Growth Momentum report
ASSOCHAM has submitted “Reviving Growth Momentum” in important sectors of the economy while submitted paramount agenda to Finance Minister, P. Chidambaram called on Wednesday.
The report consists of concerns of the investors and their possible remedies. The government, of late, has initiated policy reforms on some of the suggested measures that have brought about a perceptible change in the outlook of the economy as reflected in the positive impact on capital markets and rupee appreciation. Though issues of high Twin deficits and high inflation remains the challenge of the government… Read more
UTI Fixed Income Interval Fund-Monthly Interval Plan II announces dividend
UTI Mutual Fund has announced 10 October 2012 as the record date for declaration of dividend under the dividend option of UTI Fixed Income Interval Fund-Monthly Interval Plan II. The gross dividend will be 100% of distributable surplus as on record date on the face value of Rs 10 per unit.
IDFC Fixed Maturity Plan Series-4 floats on
IDFC Mutual Fund has launched IDFC Fixed Maturity Plan Series-4, a close ended income scheme. The scheme with the duration of 36 months shall mature on 14 October 2015. The new issue will close on 10 October 2012… Read more
UTI Fixed Income Interval Fund Annual Interval Plan III announces dividend
UTI Mutual Fund has announced 9 October 2012 as the record date for declaration of dividend under the dividend option of UTI Fixed Income Interval Fund Annual Interval Plan III. The gross dividend will be 100% of distributable surplus as on record date on the face value of Rs. 10 per unit.
SBI Short Horizon Debt Fund-Short Term Fund revises exit load structure
SBI Mutual Fund has announced revision in exit load structure of SBI Short Horizon Debt Fund-Short Term Fund from 5 October 2012. Accordingly, the revised exit load structure will be 0.25% for exit within 75 days from the date of allotment. The above change in load structure will be applicable on all prospective investments made on and after 5 October 2012.
Fidelity MF announces change
Fidelity Mutual Fund has announced that from 3 October 2012, in view of non-acceptance of fresh subscriptions under retail and institutional plans of Fidelity Cash Fund and Fidelity Ultra Short Term Debt Fund and retail plan of Fidelity Flexi Bond Fund from 1 October 2012 in accordance with requirements under Sebi circular dated 13 September 2012, the valid applications received under the aforesaid plans will be processed under the surviving plan of the respective schemes as… Read more
BNP Paribas Mutual Fund announces change
BNP Paribas Mutual Fund has announced that minimum amount/units of redemption/switch out from BNP Paribas Bond Fund, BNP Paribas Short Term Income Fund, BNP Paribas Flexi Debt Fund, BNP Paribas Money Plus Fund & BNP Paribas Overnight Fund (surviving plans/schemes) shall be Rs. 1,000 and in multiples of Rs. 1 thereafter or a minimum of 100 units (unless redemption request is for all units).
DSP BlackRock MF to offer an alternate transaction platform to investors
DSP BlackRock Mutual Fund has decided to offer an alternate transaction platform to investors to buy/sell units of DSP BlackRock Strategic Bond Fund-Institutional Plan-Growth, Dividend and Monthly Dividend, an open ended income scheme, through MFSS (Mutual Fund Service System) and BSE StAR MF (BSE Stock Exchange Platform for Allotment and Repurchase of Mutual Funds), trading platforms of National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) respectively … Read more
Reliance MF floats Fixed Horizon Fund-XXII-Series 29
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XXII-Series 29, a close ended income scheme with the duration of 746 days from the date of allotment. The new issue will be open for subscription from 12 October and will close on 17 October 2012… Read more
HDFC Mutual Fund announces dividend under two schemes
HDFC Mutual Fund has announced 8 October 2012 as the record date for declaration of dividend under normal and quarterly dividend option of HDFC FMP 13M September 2011 (1), a plan under HDFC Fixed Maturity Plans-Series XVIII, a close ended income scheme and retail plan dividend option of HDFC Quarterly Interval Fund Plan B, an interval income scheme. The amount of dividend will be distributable surplus, as reduced by applicable statutory levy on the face value of Rs. 10 per unit.
Reliance MF floats Fixed Horizon Fund-XXII-Series 28
Reliance Mutual Fund has launched Fixed Horizon Fund-XXII-Series 28, a close ended income scheme with the duration of 746 days from the date of allotment. The new issue will be open for subscription from 12 October and will close on 22 October 2012… Read more
ICICI Pru Interval Fund II-Qly Interval Plan F announces dividend
ICICI Prudential Mutual Fund has announced 10 October 2012 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II-Quarterly Interval Plan F. The recommended rate of dividend will be Rs. 0.1977 per unit under retail option, Rs. 0.2021 per unit under institutional option and Rs. 0.1988 per unit under retail quarterly dividend payout option.
ICICI Pru Fixed Maturity Plan Series 55-16 Months Plan B announces dividend
ICICI Prudential Mutual Fund has announced 9 October 2012 as the record date for declaration of dividend under the dividend option of ICICI Prudential Fixed Maturity Plan Series 55-16 Months Plan B. The recommended rate of dividend on the face value of Rs. 10 per unit will be Rs. 0.05 per unit… Read more
JM Financial MF announces changes
JM Financial Mutual Fund has announced that, the surviving plan of JM High Liquidity Fund would be regular plan. No fresh subscriptions will be accepted in JM High Liquidity Fund-Super Institutional Plan and Institutional Plan (the suspended plans)… Read more
BOI AXA Mutual Fund announces change
BOI AXA Mutual Fund has announced that pursuant to clarification from Sebi on 28 September 2012 regarding single plan structure across all the schemes… Read more
RCAM appoints Amit Tripathi as head of fixed income
Reliance Capital Asset Management (RCAM), part of Reliance Capital Ltd, has announced appointment of Amit Tripathi as the head of fixed income. Reliance Capital Ltd (RCL) has announced the appointment of Amitabh Mohanty, presently head of fixed income, RCAM, as the head of debt strategies, Reliance Capital, with increased responsibilities across RCL businesses… Read more
Birla Sun Life MF announces changes in management
Anil Shah has been designated as the key personnel of Birla Sun Life Asset Management Company Ltd (BSLAMC) in his capacity as Fund Manager for certain scheme of Birla Sun Life Mutual Fund… Read more
IDFC Mutual Fund announces changes in management team
Kenneth Andrade and Ankur Arora have been appointed the fund manager for IDFC Imperial Equity Fund from October 04, 2012… Read more
ICICI Pru US Bluechip Equity Fund announces change in fund manager
ICICI Prudential Mutual Fund has announced that India debt portion of ICICI Prudential US Bluechip Equity Fund shall be managed by Avnish Jain, in addition to the other schemes managed by him.
Principal MF announces change in key personnel
Principal Mutual Fund has announced that Ashok Vij, independent director, ceases to be the director from the Board of Principal Pnb Asset Management Company Limited, with effect from 21 September 2012.
Vanguard to change target benchmarks for 22 index funds
US leading mutual fund firm Vanguard plans to transition six international stock index funds to FTSE benchmarks and 16 U.S. stock and balanced index funds to new benchmarks developed by the University of Chicago's Center for Research in Security Prices (CRSP). The transition from the current MSCI benchmarks for the 22 funds is expected to result in considerable savings for the funds’ shareholders over time… Read more
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