Mutual Fund Newsletter - 10 May to 16 May, 2013

SBI Mutual Fund has introduced ‘Gold Accumulation Facility’ on SBI Gold Fund. The Facility would allow investors to invest in the scheme based on a specific quantity of SBI Gold Exchange Traded Schemes (SBI GETS) unit, wherein unit of SBI GETS represent approximately one gram of Gold.

May 16, 2013 8:42 IST | India Infoline News Service
Top Stories

Govt to launch inflation indexed bonds on June 4

The Government of India in consultation with Reserve Bank of India (RBI) has decided to launch inflation index bonds (IIBs), as instruments that will protect savings of poor and middle classes from inflation and incentivise household sector to save in financial instruments rather than buy gold.

For appropriate price discovery and market development, however, it is necessary to issue comparable instruments through auctions to the institutional investors such as pension funds, insurance and mutual funds. This will create demand for IIBs and help in making them tradable in the secondary market. Read more...  

Total AUM of MF Industry Improves by 17.7% in April'13

Total Assets Under Management (AUM) of the mutual fund (MF) industry improved by 17.7% (by Rs 1.24 lakh crore) to Rs. 8.25 lakh crore in April 2013, due to huge inflow into income and liquid funds and also due to mark-to-market gain in Equity and ELSS funds.

AUM of Liquid Funds increased sharply by 97.2% (by Rs. 90803 crore) to Rs. 1.84 lakh crore primarily due to net inflow of Rs. 85745 crore. AUM of Gilt Funds increased by 13.7% (by Rs. 1107 crore) to Rs. 9181 crore in April and reported net inflow of Rs. 986 crore.

AUM of Income Funds improved by 6.6% (by Rs. 26315 crore) to Rs. 4.22 lakh crore. Moreover, this category witnessed net inflow of Rs. 20159 crore. Read more...

India Ratings announces rating of 1st infrastructure debt fund

India Ratings & Research (Ind-Ra) has announced its rating on the mutual fund (MF) schemes of the infrastructure debt fund (IDF)–Series 1, launched by IL&FS Financial Services Ltd (IFIN, ‘IND AAA’/Stable), a 100% subsidiary of  Infrastructure Leasing & Financial Services (IL&FS, ‘IND AAA’/Stable), under the Securities and Exchange Board of India guidelines.

Dr Arvind Mayaram, Secretary, Department of Economic Affairs, released the ‘IND AAAidf-mf’ rating assigned by Ind-Ra to the initial three MF schemes of IL&FS IDF aggregating  Rs. 15bn. Dr Mayaram also released a special report: ‘Rating Mutual Fund Schemes of Infrastructure Debt Funds’, published by Ind-Ra, explaining its approach to rating MF schemes of IDFs. The event was attended, among others, by senior government officials, chairmen of banks and senior management of IL&FS, IFIN and Ind-Ra. Read more...

Special Stories

Govt may provide Rs. 1,000/month in pension to PF Dept staff

The labour ministry is working on a plan to provide a minimum monthly pension of Rs. 1,000 for employees covered by the provident fund (PF) office, according to a media report.

The labour ministry had suggested this proposal to the finance ministry two years ago.

However, the finance ministry has been uncomfortable with the proposed pension promise, the report added. Read more…

India Ratings outlines infra debt fund rating methodology

India Ratings & Research (Ind-Ra), in a new report, has outlined key considerations in rating the mutual fund (MF) schemes of infrastructure debt funds (IDFs), launched under the Securities and Exchange Board of India guidelines.

In assigning ratings to individual schemes, Ind-Ra will assess a number of factors including the underlying credit quality of the investment portfolio, experience and expertise of the sponsors and the asset management company, sponsor commitment to the scheme and robustness of the investment identification, evaluation and risk management processes and systems employed. Read more...

Domestic News

HDFC MF posts net profit of Rs. 3.19bn for FY13

Private player HDFC Asset Management Company on Tuesday announced its results for the financial year ended 31 March 2013.

The Mumbai-based AMC reported a profit after tax of Rs. 3.19bn for FY12-13 against Rs. 2.69bn in the previous year.

The average AUM (assets under management) during the month of March 2013 stood at Rs. 1.02 trillion (which is inclusive of average assets under discretionary portfolio management and advisory services).

The AMC’s revenues stood at Rs. 8.52bn in FY12-13 against Rs. 7.6bn in the previous year.

HDFC AMC managed 42 debt, equity, exchange traded and fund of fund schemes as on 31 March 2013.

Edelweiss Financial Q4 FY13 net profit zooms 32% to Rs. 510mn

Mumbai-based Edelweiss Financial Services on Wednesday said that its consolidated net profit zoomed 32% to Rs. 510mn for the fourth quarter ended 31 March 2013 against Rs. 387.6mn in the same quarter a year ago.

The total revenue for reported quarter grew by 25% at Rs. 5.95bn compared to Rs. 4.69bn in the year-ago period.

The consolidated net profit jumped 40% to Rs. 1.78bn for FY13 from Rs. 1.28bn in FY12. Total revenue went up 31% at Rs. 21.84bn in 2012-13 against Rs. 16.71bn in the previous financial year. Read more...

Over 0.9mn MF folios added in FY13

Debt funds added nearly 0.9mn folios in FY13 as robust returns in most debt categories and falling interest rates prompted investors to flock to debt schemes.

About 0.89mn debt folios were added in FY13 over the year-ago period, data from industry body AMFI show. Over 0.68mn folios were added in the retail category, signifying the rising interest of retail investors towards debt mutual funds. Read more…

IL&FS Infrastructure Debt Fund to purchase infra loans from 8 banks

IL&FS Infra Asset Management (IAML), an asset management company promoted by IL&FS Financial Services (IFIN) to manage the IL&FS Infrastructure Debt Fund (IIDF), signed a memorandum of understanding with eight public sector banks (Allahabad Bank, Bank of India, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce and UCO Bank) for acquisition of infrastructure loans. Read more...

Now, invest in SBI Gold Fund by quantity

SBI Mutual Fund has introduced ‘Gold Accumulation Facility’ on SBI Gold Fund. The Facility would allow investors to invest in the scheme based on a specific quantity of SBI Gold Exchange Traded Schemes (SBI GETS) unit, wherein unit of SBI GETS represent approximately one gram of Gold.

Earlier, SBI Gold Fund investors could invest only by value of SIP amount alone and not by quantity. With the introduction of Gold accumulation facility, it would now be additionally possible for investors to invest basis the quantity of gold (grammage) via the same SIP / STP route. Read more...

Tata MF introduces Just SMS facility

Tata Mutual Fund has announced introduction of Just SMS facility in all open ended schemes of Tata Mutual Fund except Tata Retirement Savings Fund, Tata Young Citizens' Fund, Tata Liquid Fund, Tata Money Market Fund and Tata Liquidity Management Fund. Read more...

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