Mutual Fund Newsletter – February 17 to 21, 2014

India Infoline News Service | Mumbai |

MF industry has lost 29.41 lakh individual accounts or folios during April 2013 to January 2014 due to profit-booking and various merger schemes, according to SEBI data

Top Stories

MFs report 29.41 lakh drop in folios in Apr-Jan
Mutual fund industry has lost 29.41 lakh individual accounts or folios during April 2013 to January 2014 due to profit-booking and various merger schemes, according to SEBI data. Among 45 fund houses, the number of folios fell to around 3.99 crore at the end of January 2014 from 4.28 crore in FY13. Folios are numbers designated to individual investor accounts. However, one investor can have multiple folios. During April-January, the number of investor folios in equity schemes fell to 2.96 crore at the end of January 2014 from 3.32 crore at March 2013... Read more

Lack of financial sophistication hits MF industry: SEBI
The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector, according to a SEBI (Securities and Exchange Board of India) report released on Thursday. As of August 2013, the total AUM stood at Rs. 7.66 trillion. However, growth rates of AMCs have come down from the peak levels seen in the early 2000s. One of the biggest reasons behind this is the lack of healthy participation from a large part of the country, the report added. The report, part of the Development Research Group Study, under the title "Penetration of Mutual Funds in India: Opportunities and Challenges", is co-authored by Prof Rajesh Chakrabarti, Sarat Malik, Sudhakar Khairnar and Aadhaar Verma... Read more

Bank channels underutilised for MF distribution: SEBI
With below poverty households finally coming to own bank accounts, fund houses could use pre-existing bank channels to offer investment opportunities when these people finally start earning saving, according to a SEBI (Securities and Exchange Board of India) report released on 20 February 2014. “Bank channels are currently being underutilised for mutual fund distribution. With several districts having high banking penetration among households, such districts ought to be a prime target for further growth of the mutual fund industry,” the study said. The report, part of the Development Research Group Study, under the title "Penetration of Mutual Funds in India: Opportunities and Challenges", is co-authored by Prof Rajesh Chakrabarti, Sarat Malik, Sudhakar Khairnar and Aadhaar Verma... Read more

Domestic News

SEBI proposes to raise Sec 80 limit to Rs. 2 lakh
SEBI has proposed to raise the limit of Section 80C of the Income-tax Act to Rs. 2 lakh from Rs. 1 lakh for equity-linked savings schemes and an additional tax incentive of Rs. 50,000 be introduced for a long-term product called mutual fund-linked retirement plan. According to SEBI, Employees Provident Fund Organisation (EPFO) should be allowed to invest up to 15% of their corpus in equities and mutual funds and employees who earn more than Rs. 6,500 a month should be given option that a part of their contribution be invested in a mutual fund scheme of their choice... Read more

Axis MF to acquire ING Investment schemes: Reports
Report stated that Axis Mutual Fund is planning to acquire the assets of ING Investment Management. Axis had offered to buy ING Investment Management’s schemes for Rs 20-30 crore, says report. If the deal finalises, it will add about Rs 1,000 crore to Axis’s assets under management (AUM) of about Rs 14,700 crore, as on December 31... Read more

IRFC prices $500 million 5-year bond at 3.917%
Indian Railway Finance Corporation Ltd (IRFC) has successfully priced a US$500 million 5-year bond transaction. The Regulation S senior unsecured 5-year fixed rate notes ("Notes") were priced at 245 basis points (bps) over the benchmark 5-year US Treasury (5-year UST), which translated to a final coupon rate of 3.917% per annum, with an issue price at 100.00%. This bond transaction is the first index-eligible bond issue from IRFC, making it eligible for inclusion in the EMBI family of indices. IRFC had last accessed the US Dollar capital markets in 2012 with a US$300 million bond offering... Read more

Franklin Templeton declares dividend in India Prima Plus
Franklin Templeton Investments (India) has announced tax-free dividends in its fund - Franklin India Prima Plus (FIPP), which invests in a diversified portfolio of wealth creating companies that generate a return on capital higher than their cost of capital. All investors registered in the Dividend Plan/Option as on February 21, 2014 will receive this tax-free dividend. The record date for the dividend is February 21, 2014 and any purchases on or before this date will be eligible for the dividend. Under the dividend reinvestment plan, the dividend declared will be reinvested in the Fund at the NAV of February 24, 2014 and unitholders will be allotted additional units for the dividend amount.

Edelweiss MF announces dividend in ELSS Fund
Edelweiss Mutual Fund has approved declaration of dividend under Edelweiss ELSS Fund, an open ended equity linked savings scheme. The record date of dividend is 18 February and the dividend declared its 0.50 paise per unit. The face value per unit is Rs. 10. The NAV per unit is Rs. 12.44 on 11 February 2014. All Unit holders whose name appears in the Register of Unit holders of the aforementioned Dividend Options of the Scheme as at the close of business hours on the Record Date shall be eligible to receive the dividend so declared.

Learning

Common mistakes people make when filing income tax returns
All those who have taxable income are required to file their return. Also, those with income above Rs 5 lakh have to compulsorily e-file their return from assessment year 2013-14. It’s very important to file error free Income tax Return to avoid future problems. Let’s see the most commonly committed mistakes those could be avoided... Read more
 

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