Mutual Fund Newsletter - October 22 to October 26, 2012
Capital market regulator SEBI (Securities and Exchange Board of India) said that the mutual fund industry may consolidate in future due to presence of some non-serious players.
Equity mutual funds nearing inflection point
The inflow into equity mutual funds may revive by early 2013 due to gains in average assets under management (AUM) in equity portfolios along with low bond yields, says Avendus Securities research report on Wednesday.
“Two conditions that supported the high growth of equity AUM during 2003-08 may be revived by early 2013-gains in investors' portfolios and low bond yields,” a report by Avendus Securities said on Wednesday… Read more
MF industry may consolidate: SEBI
Capital market regulator SEBI (Securities and Exchange Board of India) said that the mutual fund industry may consolidate in future due to presence of some non-serious players. However, the clarity on this course will emerge only after the national mutual fund policy is put in place, according to media reports.
In order to revamp the industry, SEBI recently announced a host of measures. At present, there are about 40 asset management companies (AMCs) and the numbers has increase sharply in the last two years, the reports added… Read more
Mutual funds mobilise Rs. 198.06 billion in August 2012
During August 2012, mutual funds mobilised Rs. 198.06 billion (of which Rs. 167.25 billion were mobilised by private sector mutual funds and Rs. 30.80 billion by public sector mutual funds) compared to Rs. 384.57 billion mobilised (of which Rs. 275 billion was mobilised by private sector mutual funds and Rs. 109.57 billion by public sector mutual funds) during July 2012, the SEBI (Securities and Exchange Board of India) said.
During the financial year 2012-13, so far, mutual funds mobilised Rs. 1.54 trillion compared to Rs. 1.09 trillion mobilised during the corresponding period in 2011-12… Read more
Liquid funds gain popularity among investors: AMFI data
Liquid schemes are gaining popularity among retail investors. Retail investor folios in liquid funds increased to 1.67 lakh in September 2012 from 1.61 lakh in September 2011, the AMFI data said.
Retail investor assets in these liquid funds increased to Rs. 1,003 crore in September 2012 from Rs. 827 crore in September 2011, the AMFI data added. Besides savings bank account, liquid funds are a good option available to investors looking to park their surplus cash in hand… Read more
“In today’s world—with final salary pensions becoming a rarity and state support shrinking—those of working age have a huge degree of uncertainty around their financial futures”
Martin Wheatley, Managing Director, FSA, UK
Ravi Menon, Managing Director, Monetary Authority of Singapore
Investors stay invested in equity funds despite volatile markets
According to the data released by the Association of Mutual Funds in India (AMFI), over 60% of retail investors stayed invested in equity mutual funds for more than two years. AMFI released an age-wise analysis of assets under management (AUM) across investor types and categories for the half year ended September 2012.
The analysis showed that out of the Rs. 1.4 lakh crore of retail investment in equity oriented mutual funds, Rs 0.85 lakh crore of investment continued for over 24 months. In contrast, high net-worth individuals (HNIs), who invested over Rs 5 lakh, redeemed 60% of their portfolio in less than two years… Read more
IFA Galaxy to request SEBI to relook direct investment
IFA Galaxy has circulated a draft letter among mutual fund distributors and IFA (independent financial advisors) to get their views on introduction of direct plans in MF schemes. The views will later on be forwarded to capital market regulator SEBI (Securities and Exchange Board of India) for consideration.
According to Ramesh Bhat, President, IFA Galaxy, the feedback from IFAs will be later on sent to SEBI. The process will take around 15 days but we hope that the regulator re-looks at the regulation before implementing it, Mr Bhat added… Read more
Assets of PMS rises 3% to Rs. 5.46 trillion in August 2012
Total assets under management (AUM) of portfolio management services (PMS) industry have increased by 3% from Rs. 5.3 trillion in July 2012 to Rs. 5.46 trillion in August 2012, according to the SEBI (Securities and Exchange Board of India) data.
As on August 31, 2012, AUM of non-discretionary PMS constitute 82.8% of the total AUM of PMS followed by advisory PMS (13.2%) and discretionary PMS (4%)… Read more
Yes Bank to enter MF business
On Tuesday Yes Bank said that its Board has approved to enter into the mutual fund business. The private sector bank is planning to enter the mutual fund business in the next 12 months.
After having received the Board approval, the bank will now apply for regulatory licence from the Securities Exchange Board of India (SEBI) and the Reserve Bank of India (RBI)… Read more
Reliance Capital set to enter banking: Reports
Financial services unit of Anil Ambani-led Reliance Capital said that is fully-prepared to enter banking business. The asset management company (AMC) has been working on this for about one and half years, according to media reports.
The government and the Reserve Bank of India (RBI) have been working to grant new bank licences. The government has also recently indicated that a framework could be put in place soon for allowing new companies in the banking business… 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
XIRR: How to calculate your returns
XIRR is a more powerful function in Excel for calculating internal rate of return or annualized yield for a schedule of cash flows occurring at irregular intervals… Read more
No case to be pending for more than year: SEBI
Capital market regulator SEBI (Securities and Exchange Board of India) has set a one-year deadline to complete investigations about market manipulators, according to media reports.
SEBI chairman UK Sinha said that the lengthy and time-consuming investigation processes are a thing of past and manipulators can’t escape law. The regulator said that going forward there won’t be any case left pending for more than a year, the reports added… Read more
Old-age pension to be given after verifying documents
The Punjab government has asked deputy commissioners to pay pension to beneficiaries identified under the old-age pension scheme only if their documents are authentic, according to media reports.
The move is aimed at preventing fraud as in the past many beneficiaries did not possess relevant documents. Hence, the disbursement of pension was discontinued, the reports further added… Read more
UTI Mutual Fund launches online payment service
UTI Mutual Fund launches Interbank Mobile Payment Service (IMPS) which is a new online payment facility for its investors towards purchasing Mutual Funds online.
IMPS offers an instant, 24X7 interbank electronic fund transfer service through mobile phones. IMPS facilitates customers to use mobile instruments as a channel for accessing their bank accounts and making interbank fund transfers in a secured manner with immediate confirmation features… Read more
Canara Robeco MF appoints Jai Diwanji as associated trustee on the board
Canara Robeco Mutual Fund has appointed Jai Diwanji as an associated trustee on the board of trustees from 22 October 2012. Mr Diwanji is presently a partner in Desai & Diwanji Advocates & Solicitors. He is a practising advocate of over 10 years' experience. .. Read more
IDFC MF appoints Vishwavir Saran Das on the board
IDFC Mutual Fund has announced appointment Vishwavir Saran Das on the board of IDFC Asset Management Company from 22 October 2012. He has more than 36 years of experience in the RBI, across various functional areas including financial regulation and supervision, foreign exchange regulation, payment settlement systems, communications, human resource management and developmental banking… Read more
Principal Government Securities Fund announces changes
Principal Mutual Fund has announced that from 22 October 2012, Bekxy Kuriakose will be designated as the fund manager for Principal Government Securities Fund, an open ended dedicated gilt scheme investing in government securities.
IIFL Fixed Maturity Plan-Series 6 & 7 files offer document with SEBI
IIFL Mutual Fund has filed offer document with Sebi to launch IIFL Fixed Maturity Plan - Series 6 & Series 7, a close ended income scheme… Read more
Birla Sun Life MF launches Capital Protection Oriented Fund
Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Capital Protection Oriented Fund - Series 13, a close ended capital protection oriented scheme with the duration of 1093 days from the date of allotment of units… Read more
ICICI Pru Interval Fund-Quarterly Interval Plan III announces dividend
ICICI Prudential Mutual Fund has announced 31 October 2012 as the record date for declaration of dividend under ICICI Prudential Interval Fund-Quarterly Interval Plan III. The recommended date of dividend on the face value of Rs 10 per unit will be Rs 0.1960 per unit under retail dividend option and Rs 0.2037 per unit under institutional dividend option.
ICICI Pru MF extends STP under 3 schemes
ICICI Prudential Mutual Fund has announced the extension in the Specified Transaction Period (STP) under the following schemes till 31 October 2012… Read more
Goldman Sachs MF launches India Equity Fund
Goldman Sachs Mutual Fund has launched Goldman Sachs India Equity Fund, an open ended equity scheme. The new issue will close on 31 October 2012. The scheme re-opens for continuous subscription and redemption on or before 16 November 2012… Read more
IDBI MF announces inclusion of corporate repo for debt schemes
IDBI Mutual Fund has announced that from 25 October 2012, all debt schemes (including IDBI Liquid Fund) launched by IDBI Mutual Fund may participate in repos (including reverse repo) in corporate debt securities as per the guidelines issued by RBI from time to time and in compliance with the conditions stipulated in Sebi circular dated 11 November 2011.
HSBC Mutual Fund announces changes
HSBC Mutual Fund has announced the following changes from 1 November 2012. For dividends declared or corporate actions, if any, in any of the discontinued plans, the units shall be allotted in the single plan available for subscription under the respective schemes towards the amount of dividend or corporate action due or payable… Read more
SBI Mutual Fund Files offer document with SEBI to launch close ended income scheme
SBI Mutual Fund has filed offer document with SEBI to launch SBI Debt Fund Series-36 Months Fund-2 & 3, 60 Months Fund-2 & 3, close ended income scheme. The new fund offer price is Rs 10 per unit… Read more
IDFC Mutual Fund announces dividend under 3 schemes
IDFC Mutual Fund has announced 29 October 2012 as the record date for declaration of dividend under the dividend options of the following schemes… Read more
Mirae Asset Emerging Bluechip Fund-Regular Plan announces dividend
Mirae Asset Mutual Fund has announced 29 October 2012 as the record date for declaration of dividend under the dividend option of Mirae Asset Emerging Bluechip Fund-Regular Plan. The quantum of dividend on the face value of Rs 10 per unit will be Rs 1.10 per unit… Read more
Reliance MF changes minimum application amount under Money Manager Fund
Reliance Mutual Fund has announced change in minimum application amount under Reliance Money Manager Fund, an open ended income scheme from 29 October 2012. Accordingly, the revised minimum application amount will be Rs 500 and in multiples of Re 1 thereafter.
Reliance Money Manager Fund-Retail Plan announces bonus
Reliance Mutual Fund has announced 29 October 2012 as the record date for declaration of bonus units under the bonus option of Reliance Money Manager Fund-Retail Plan. The bonus on the face value of Rs. 1,000 per unit will be 1 unit for every 3 units held.
DSP BlackRock MF files offer document with SEBI
DSP BlackRock Mutual Fund has filed offer document with Sebi to launch DSP BlackRock Constant Maturity 10Y Bond Fund, an open ended income scheme. The new fund offer price is Rs 10 per unit… Read more
Deutsche MF announces change in exit load
Deutsche Mutual Fund has announced changes in exit load of various open ended debt schemes from 29 October 2012… Read more
Edelweiss MF announces dividend under 2 schemes
Edelweiss Mutual Fund has announced 29 October 2012 as the record date for declaration of dividend under the dividend options of the following schemes… Read more
UTI Mutual Fund launches Credit Opportunities Fund
UTI Mutual Fund (UTI) has launched UTI Credit Opportunities Fund. The new fund offer opens on October 25, 2012 and closes on November 8, 2012. The scheme will re-open for purchase and redemption from November 26, 2012 onwards… Read more
ICICI Pru MF announces changes under Medium Term Plan
ICICI Prudential Mutual Fund has announced the following changes under ICICI Prudential Medium Term Plan from 29 October 2012… Read more
UTI Fixed Income Interval Fund-Series II Qly Interval Plan IV announces dividend
UTI Mutual Fund has announced 29 October 2012 as the record date for declaration of dividend under the dividend option of UTI Fixed Income Interval Fund - Series II Quarterly Interval Plan IV. The gross dividend will be 100% of distributable surplus as on the record date on the face value of Rs 10 per unit.
Kotak MF announces change in exit load under Bond Short Term
Kotak Mutual Fund has revised exit load structure under Kotak Bond Short term, an open ended debt scheme… Read more
LIC Nomura MF revises exit load under Bond Fund
LIC Nomura Mutual Fund has announced change in load structure under LIC Nomura MF Bond Fund. Accordingly, the revised load structure will be 0.50% if exit within 6 months. The above said change of load structure is applicable on a prospective basis from 23 October 2012.
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