Mutual Fund Newsletter: 11-15 November, 2013

India Infoline News Service | Mumbai |

SEBI's mutual fund advisory committee has suggested that fund houses with assets under management of over Rs. 10 billion should have a net worth of Rs. 250 million

News this week

MF AUM post highest percentage growth since Apr 2013: CRISIL

The Indian mutual fund industry’s month-end assets under management (AUM) posted its fastest month-on-month percentage growth since April 2013; it was up by nearly 12% (or Rs 880 bn) to Rs 8.34 trillion in October as per the monthly numbers released by the Association of Mutual Funds in India (AMFI). The rise in AUM was primarily due to total net inflows of Rs 663 bn with liquid / money market funds contributing the maximum to the net inflows.

Liquid funds’ AUM rose by 55% to Rs 1.89 trillion following inflows of Rs 675 bn – the highest inflows for the category in the past six months – due to cyclical inflows and the Reserve Bank of India’s (RBI) liquidity easing measures. Historical trend has shown that quarter-end outflows (September) in the category are reversed in the subsequent month (October) as banks and corporates re-invest the surplus funds they had withdrawn to pay their quarter-end financial and advance tax, respectively... Read more

AMCs should have assets worth Rs. 250mn: SEBI panel

SEBI's (Securities and Exchange Board of India) mutual fund advisory committee has suggested that asset management companies (AMCs) with assets under management (AUM) of over Rs. 10 billion should have a net worth of Rs. 250 million, according to a media report.

In a meeting in Mumbai on Tuesday, the committee recommended that fund houses with AUM of around Rs. 10 billion should have a net worth of Rs. 250 million as against the current net worth requirement of Rs 100 million, the report added.
The committee has also suggested Rs. 250 million as the minimum net worth for new players.

The committee has also recommended that fund houses need to put in seed capital of Rs. 5 million for each scheme. This would be counted as part of net worth and excludes fixed maturity plans.

The recommendations of the mutual fund advisory committee would be sent to SEBI for approval.

Major task is to implement PFRDA Act 2013: FM

Union Finance Minister P Chidambaram on Tuesday said that with the Pension Fund Regulatory and Development Authority (PFRDA) Bill having been passed by Parliament, the major task before us was to implement it in letter and spirit.

FM mentioned that most countries are moving from a ‘defined benefit’ pension system to a ‘defined contribution’ system to enable pension related commitments to be sustainably discharged. The National Pension System (NPS) was a step in this direction.

He mentioned that the PFRDA Act would give statutory status to the PFRDA, the pensions sector regulator, and in addition to other objectives, aims to address apprehensions regarding safety and yield under the NPS... Read more

Reliance Capital Q2 net profit at Rs. 1.81bn

Reliance Capital Ltd posted a net profit of Rs. 1.81 billion for the quarter ended September 30, 2013 as compared to Rs. 4.01 billion for the quarter ended September 30, 2012.

Total Income decreased from Rs. 24.37 billion for the quarter ended September 30, 2012 to Rs. 18.69 billion for the quarter ended September 30, 2013.

Franklin Templeton announces dividend in Asian Equity Fund

Franklin Templeton Investments (India) has announced its maiden dividend in Franklin Asian Equity Fund (FAEF).

The dividend declared would be Rs. 1.25 per unit on face value of Rs. 10 per unit. All investors registered in the Dividend Plan/Option as on November 15, 2013 will receive this dividend.

The record date for the dividend is November 15, 2013 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 November 18, 2013 and unitholders will be allotted additional units for the dividend amount.

Learning

How do SIPs help?


The concept of SIP (systematic investment plan) is similar to recurring bank deposits wherein investors contribute a fixed sum of money at regular intervals. All market-linked investments go through ups and downs. To create wealth over the long run, a disciplined, far-sighted approach is critical. In this context SIPs can be a preferred option. The concept of SIP is similar to recurring bank deposits wherein investors contribute a fixed sum of money at regular intervals...
Read more






 

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