Mutual Funds Newsletter – May 12 to 16, 2014

India Infoline News Service | Mumbai |

The number of equity folios stood at 2.95 crore in April 2014 as compared to 2.91 crore in March 2014, according to SEBI (Securities and Exchange Board of India) data

Top Stories

Equity folios at 2.95 crore in April: SEBI
Over 4 lakh new mutual fund folios were added in April 2014. The number of equity folios stood at 2.95 crore in April 2014 as compared to 2.91 crore in March 2014, according to SEBI (Securities and Exchange Board of India) data. The number of equity folios stood highest at 4.11 crore in March 2009, SEBI added. HN Sinor, chief executive officer, Association of Mutual Funds in India, said that there has been a surge in retail investing since November 2013.

Narendra Modi has caught imagination of people: Navneet Munot
This is the “tryst with destiny” for our generation. Young inhabitants of this old civilization have voted for a decisive change. In a journey from a ‘tea stall boy’ to India’s prime minister through sheer passion and perseverance, Narendra Modi has caught the imagination of people which is unparalleled in recent history. The world has just seen the glimpse of the biggest show on planet earth with 800 million people voting so peacefully. With a man determined to change the destiny of its people at the helm, everyone will see an economic miracle unfolding in years to come. In a world struggling with structural issues, anemic growth and lack of leadership, India is likely to emerge as an ‘oasis of hope’... Read more

Domestic News

SEBI invites step to commission studies on market issues
SEBI (Securities and Exchange Board of India) has initiated a fresh round of proposals to commission studies on various issues of stock market. SEBI has invited research proposals from individual / academicians/economists/researchers for DRG-II (Development Research Group) studies. The DRG aims to undertake extensive policy research to analyze the existing policies from an academic perspective as well as to suggest new policy alternatives, essentially on subjects contributing clarity and solutions to challenges faced by SEBI. The broad objectives of DRG are: To undertake effective policy oriented research backed by strong analytical and empirical formulations and to facilitate policy formation as well as review the existing policies from an academic perspective... Read more

Ready for all eventualities in markets on vote-counting day: UK Sinha
A day ahead of counting of votes for the Lok Sabha elections, SEBI Chairman UK Sinha said at the ASSOCHAM meeting that the stock market regulator along with the Reserve Bank and the government has prepared a strategy to deal with any unusual movement in the market. “SEBI along with RBI and the government of India has prepared a strategy and we are ready for any unusual movement in the market. We are ready with the guidelines as to what action to take in what situation,” Mr Sinha said after his interaction with the ASSOCHAM members on the primary market... Read more

BSE resolves 82 investor complaints in April
The types of the complaints included non-receipt of equity shares, debt securities and corporate benefits. BSE Ltd resolved 82 investors’ complaints against companies in April, 2014. The BSE Ltd received 82 complaints against 72 companies. In the same period, 82 complaints were resolved against 57 listed companies. These resolved complaints include complaints brought forward from the previous periods. The types of the complaints included non-receipt of equity shares, debt securities and corporate benefits. Among the other complaints included non-adherence to corporate governance norms.

P-Note investments decline to Rs. 1.9 trillion in April
P-Note investments drop to Rs 1.9 trillion in April. Investments into Indian shares through participatory notes (P-Notes) declined to Rs 1.87 trillion in April from Rs 2.07 trillion in the preceding month. The value of P-Notes issued with derivatives as underlying stood at Rs 1.27 trillion at the end of April 30. Participatory notes also called P-Notes are offshore derivative instruments with Indian shares as underlying assets. These instruments are used for making investments in the stock markets. However, they are not used within the country. They are used outside India for making investments in shares listed in the Indian stock market. That is why they are also called offshore derivative instruments... Read more

LIC Nomura MF to grow AUM to Rs. 15,000 crore in FY15
In order to expand its asset base, LIC Nomura Mutual is looking for acquisitions, according to a media report. the acquisition doesn't only aim to increase the assets under management (AUM), but will also look at adding sound investor base, the report added. LIC Nomura Mutual Fund aims to grow its average AUM to Rs 15,000 crore during this fiscal. The AMC had an average AUM of Rs 10,584 crore by the end of last fiscal. LIC Nomura Mutual Fund is a joint venture formed between LIC and Nomura, with LIC holding 65 per cent stake in the joint venture.

Election results are far ahead of all exit poll views: ICICI MF
The election results 2014 are far ahead of all the exit poll expectations. Post 1984, this is the first time a single party is getting almost absolute majority. This is extremely positive structural move for the potential returns in the equity markets. It is also positive for a potential drop in interest rates over the next 18 months, Sankaran Naren, CIO, ICICI Prudential AMC, said.

Hence, it is extremely important for investors to consider investing in equities. Currently, domestic investors are extremely under-invested in equities and we believe they should allocate to equities even today. We believe that banking, infrastructure and mid-caps are likely to outperform the large caps, which does not mean that large caps will not be in a position to give returns. With regard to fixed income, investors should consider moving out of all defensive fixed income products to much more aggressive ones.

International News

Deutsche MF launches DWS Hybrid Fixed Term Fund–Series 22
Deutsche Asset Management India launches: DWS Hybrid Fixed Term Fund – Series 22, 40 months close ended debt scheme. DWS Hybrid Fixed Term Fund - Series 22 is a debt fund that takes advantage of the trends in Fixed Income and Equity markets with a hybrid portfolio. A hybrid portfolio of debt and equity instruments would typically have low volatility as compared to equity; endeavors to preserve capital with potential for capital appreciation; and have a lower risk vis-a-vis a pure equity portfolio. The DWS Hybrid Fixed Term Fund – Series 22 is an alternative investment for conservative investors intending to invest in equity markets... Read more
 

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