Mutual Fund Newsletter: 18-22 November2013

Market regulator SEBI said that a single Self Regulatory Organisation would be put in place for management of all mutual fund distributors

November 26, 2013 9:27 IST | India Infoline News Service
News this week

SEBI announces SRO rules for MF distributors
Market regulator SEBI (Securities and Exchange Board of India) said that a single Self Regulatory Organisation (SRO) would be put in place for management of all mutual fund distributors.

"Provided further that the Board may, in case of distributors engaged by asset management companies of mutual funds, grant certificate of recognition to only one group or association making an application under this regulation," SEBI said in a notification on Monday.

The regulator may grant an in-principle approval to the applicant, which shall be valid for 180 days. It can further extend the validity of the in-principle approval for a further 90 days... Read more

AMFI restructures its website; adds new features

In order to make its website more user-friendly, AMFI (Association of Mutual Funds of India) has restructured its website by adding new features such as latest updates, research and information and market commentary among others.

The section ‘Expert speak’ on the website which has not yet started will carry views and market commentary of CEOs, fund managers and industry experts.

AMFI has also introduced a new section called Fundoo which explains the basic concept and significance of mutual funds to the new investors and financial jargon in a simple way.

NSE extends cross margin facilty to ETFs
The National Stock Exchange (NSE) has extended cross margining to exchange-traded funds (ETFs).

Till now, the facility was available to equity stocks, index futures and stock futures segments.

Cross margining reduces the margin requirement and trading costs and thereby helps traders and investors.

“The positions of clients in both the capital market and F&O (futures and options) segments to the extent that these offset each other shall be considered for the purpose of cross margining,” NSE said in a circular... Read more

Reliance MF to launch close-ended equity scheme
Reliance Mutual Fund on Friday said it will launch a new scheme -- Reliance close-ended equity fund- series A -- having a five year lock-in period.

The new fund offer will open for subscription from November 15 and close on November 29.

The scheme will provide capital appreciation to the investors for long-term goal of savings.

Reliance MF had an average assets under management of Rs 93,249 crore at the end of September quarter.

ICICI Pru AMC launches Value Fund–Series 2
ICICI Prudential Asset Management Company has announced the launch of ICICI Prudential Value Fund Series Fund 2, a close ended equity fund that focuses on investing in stocks that trade at a discount to their true value.

The launch comes after its earlier offering Value Fund Series 1 collected Rs 643.48 crore and hence is a second in the series of Value Funds launched this year.

The launch brings forward the opportunity for investors to benefit from potential value investing opportunities that are currently available in the market.

Axis MF launches Axis Small Cap Fund
Axis Asset Management Co. Ltd. (Axis AMC) announced the launch of Axis Small Cap Fund a 5 year close ended equity scheme (including the date of allotment) that seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity & equity related instruments of small cap companies. The scheme will become open-ended on completion of 5 years.

Axis Small Cap Fund closes for subscription on 25th November, 2013. The minimum amount that investors can invest in this fund is Rs 5000... Read more

ISB's Capital Markets Conclave 'Artha 2013' in Mumbai on Nov 23
SEBI’s Chairman UK Sinha and the State Bank of India’s Chairperson Arundhati Bhattacharya will be the keynote speakers at Artha 2013 - the Capital Markets Conclave, the annual flagship event of the Finance Club at the Indian School of Business (ISB).

The Conclave, which is being held for the first time in India’s financial capital, Mumbai, on Saturday, November 23, 2013, is designed to provide an interactive platform and serve as an interface between students, the alumni association and professionals in the industry... Read more

International News
OCIO business to comprise 18% of assets in 3 yrs: Investment consultants
New research from Cerulli Associates, a Boston-based global analytics firm, finds that consultants expect that their outsourced chief investment officer (OCIO) business will comprise 18.5% of total assets in 2016, on average up from 12% at the end of 2012.

"Investment consultants' assets managed under an OCIO arrangement are expected to continue to grow, and for many firms this is the fastest-growing segment of their overall business," states Michele Guiditta, associate director at Cerulli... Read more

Retirement rollover contributions reached $321bn in 2012
According to new research from Cerulli Associates, a Boston-based global analytics firm, retirement rollover contributions reached $321 billion as of year-end 2012.

"Financial services providers are focused on IRA rollovers to win and retain clients, and to increase assets under management or advisement," comments Kevin Chisholm, associate director at Cerulli. "Rollovers are not just an opportunity for IRA providers. They are a necessity to be successful."

In their latest report, Evolution of the Retirement Investor 2013: Influencing and Addressing Retirement Savings, Cerulli examines decisions made by individuals throughout their retirement planning lifecycle with particular emphasis on 401(k) plan participants, IRAs, rollovers, and retirement income. The report profiles these individuals and allows firms to develop strategies aimed at capturing assets earmarked for retirement... Read more

Asian institutions breach $10 trillion in assets in 2012
As assets grow, institutions' growing appetite for alternatives will help drive opportunities for external managers.

Investable assets of Asia ex-Japan institutions breached US$10 trillion for the first time in 2012, rising by 9.6% year-on-year.

Cerulli Associates forecasts assets to continue to grow between 2013 and 2017 and hit US$17 trillion by 2017, representing a compound annual growth rate of 10.1%. Stronger increases are expected from Southeast Asia, as institutions in those markets are relatively underdeveloped and are growing their assets from low bases... Read more

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