Mutual Fund Newsletter – September 10 to 13, 2013

India Infoline News Service | Mumbai |

The Reserve Bank of India (RBI) also came out with measures later in the month to reduce the liquidity pressure in the banking system

Top Stories

MF AUM post subdued growth in August 2013
The Indian mutual fund industry’s month-end assets under management (AUM) posted subdued month-on-month growth of 0.7% or Rs 53 bn to Rs 7.66 trillion in August as per the monthly numbers released by the Association of Mutual Funds in India (AMFI). The rise in AUM was due to net inflows of Rs 237 bn with liquid / money market funds garnering the largest share of inflows. Liquid funds’ AUM rose by 16% to Rs 1.50 trillion primarily due to inflows of Rs 321 bn. The category reversed its outflows seen in the previous month as market participants got acclimatized to the tight liquidity conditions in the banking system. The Reserve Bank of India (RBI) also came out with measures later in the month to reduce the liquidity pressure in the banking system... Read more

Equity MFs record net inflow of Rs. 4.58bn in August: AMFI
India's equity mutual fund schemes registered a net inflow of Rs. 4.58 billion in August, according to the data released by the Association of Mutual Funds in India (AMFI) last week. Despite weak and volatile markets retail investors largely stayed invested and pumped in fresh money. However, investors interest in gold mutual funds seemed to be declining as gold ETFs (exchange traded funds) recorded redemption worth Rs. 5.94 billion in August. At the same time, just about Rs. 60 million flowed into these funds which is the lowest amount since March 2009... Read more

IIFL Public Issue of Secured Redeemable NCDs opens on Sept 17
India Infoline Finance, an NBFC subsidiary of India Infoline Ltd, will launch a Public Issue of Secured Redeemable Non-Convertible Debentures of face value of Rs 1,000 each aggregating up to Rs 5,250 million with an option to retain oversubscription up to Rs 5,250 million, aggregating to a total up to Rs 10,500 million, on September 17, 2013. The NCDs have an option of monthly and annual interest payment and the yield works out to 12.68% p.a. for the monthly interest option and 12%p.a. for the annual interest option. The face value of NCD is Rs. 1,000 and minimum application is Rs. 5,000 (5 NCDs). The NCDs have an investment horizon of 3 years and 5 years. The issue closes on October 4, 2013... Read more

Special Stories

SEBI to introduce steps to improve corporate bond market
Market regulator SEBI (Securities and Exchange Board of India) on Tuesday said it will announce some important measures to improve liquidity and trading mechanism for the corporate bond market in "a couple of days". "We are currently working on a couple of more options, which will be announced in a day or two, to improve the liquidity and trading mechanism in the debt market," SEBI Chairman UK Sinha said. He was speaking at an event where he launched a corporate bonds information database portal by NSE and Prime Database... Read more

SEBI directs MCX-SX to strengthen governance
Market regulator SEBI (Securities and Exchange Board of India) on Wednesday has issued directions to MCX-SX Ltd and MCX-SX Clearing Corporation Ltd (MCX-SXCCL) to strengthen their governance structure while granting the renewal of recognition to MCX-SX for one year commencing from September 16, 2013. A committee comprising of two public interest directors and three nominees from institutional investors in MCX-SX shall be constituted within two days of renewal of recognition to oversee the following functions of the exchange... Read more

SEBI issues norms to classify illegal CIS schemes as fraud
The Securities and Exchange Board of India (SEBI) has notified new norms to classify illegal collective investment schemes (CIS) as frauds and impose penalties of up to three times of their profits.
The new rules also expand the list of activities to be covered under fraudulent and unfair trade practices to hold individuals as well as companies equally guilty for manipulations.
The rules will now include ‘illegal mobilization of funds by sponsoring or causing to be sponsored or carrying on or causing to be carried on any collective investment scheme by any person,” SEBI said in a circular...
Read more

Domestic News

Investors shy away from gold funds: AMFI
Investors interest in gold mutual funds seems to be declining as gold ETFs (exchange traded funds) have registered redemption worth Rs. 5.94 billion in August, according to data released by the Association of Mutual Funds in India (AMFI) last week. At the same time, just about Rs. 60 million flowed into these funds which is the lowest amount since March 2009. On the other hand, there was a surge in fixed maturity plans (FMPs). Almost Rs. 200 billion were invested in these instruments in August, up from about Rs. 90 billion in July and about Rs. 30 billion in June, the AMFI data further indicated.

Tata Capital, Axis Bank seek PFRDA nod for pension AMC
Tata Capital and Axis Bank are seeking Pension Fund Regulatory Development Authority (PFRDA) approval to register as a pension fund asset management company (AMC), according to a media report. The two companies had several rounds of discussions with the PFRDA for registration as pension fund, the report added. However, PFRDA has not received any formal applications from the two companies for the same. Currently, there are eight pension fund managers for both the public and private sector National Pension Scheme (NPS).

LIC Nomura MF targets assets of Rs. 100 billion in FY14
LIC Nomura Mutual Fund aims to achieve Rs. 100 billion of assets under management (AUM) this financial year on the back of the good performance in its debt schemes, according to a media report. The fund house said that its outflows from the equity schemes of the company were not significant, the report added. For FY12-13, the AMC reported an AUM of Rs. 71 billion against the target of Rs. 100 billion set by it for this period. The fund house, which had reported losses in FY11 and FY12, hopes to record profit in 2012-13. In April, LIC Nomura Mutual Fund had said that it aims to increase its average AUM to Rs. 200 billion in the current fiscal by launching a host of new schemes in the debt and equity space.

Peerless Short Term Fund declares dividend
Peerless Mutual Fund has declared dividend under the monthly Dividend Option of Peerless Short Term Fund. The record date for dividend was September 10th, 2013. The investment objective of the scheme is to generate income and capital appreciation by investing in a diversified portfolio of debt and money market securities. The scheme is an open-ended debt scheme... Read more

Learning

What is an IPO green shoe option?
Most of us who invest in stocks of a company know what is an IPO (initial public offering). An IPO is the first sale of a stock or share by a company to the public. Companies offering an IPO are sometimes new, young companies, or companies which have been around for many years and have finally decided to go public... Read more


 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.