News this week
MFs pump in funds worth Rs. 7,037 crore in equities in Dec: SEBI
Mutual Funds made net investment of Rs. 60,969 crore in the secondary market in December 2014 compared to net investment of Rs. 46,263 crore in November 2014. Mutual funds invested Rs. 7,037 crore in equity in December 2014 compared to Rs. 1,677 crore in November 2014. Further, Mutual Funds invested Rs. 53,932 crore in debt market in December 2014 as against of Rs. 44,586 crore invested in November 2014.
As on December 31, 2014 there were a total of 1,861 schemes under mutual funds of which Income / Debt oriented schemes were 1,353 (72.7 percent), Growth/equity oriented schemes were 408 (21.9 percent), Exchange Traded Funds were 45 schemes (2.4 percent), Balanced schemes were 25 (1.3 percent) and Fund of Funds investing Overseas schemes were 30 (1.7 percent).
The number of schemes at the end of 2013-14 were 1,638 of which Income/Debt oriented schemes were 1,178 (71.9 percent), Growth/equity oriented schemes were 363(22.2 percent), Exchange Traded Funds were 40 schemes (2.4 percent), Balanced schemes were 30 (1.8 percent) and Fund of Funds investing Overseas schemes were 27(1.6 percent).
Equity issues mobilise funds worth Rs. 421 cr: SEBI
During December 2014, Rs. 858 crore were mobilised in the primary market (equity and debt issues) by way of five issues as compared to Rs. 1,248 crore mobilised through five issues in November 2014, showing a decrease of 31.3 percent from the previous month. In December 2014, Rs. 421 crore were mobilised through by the way of four equity issues in November 2014. The cumulative amount mobilised for the financial year 2014-15, so far, stood at Rs. 11,642 crore through 64 issues as against Rs 25,466 crore through 48 issues during the corresponding period of 2013-14.
MFs report net outflow of Rs. 413.88bn in Dec: SEBI
During December 2014, Mutual Funds saw a net outflow of Rs. 41,388 crore (private sector mutual funds witnessed outflow of Rs. 38,936 crore while public sector mutual funds saw outflow of Rs. 2,452 crore) as compared to a net outflow of Rs 25,628 crore (private sector mutual funds witnessed outflow of Rs 18,410.
crore while public sector mutual funds saw outflow of Rs. 7,218 crore) in November 2014. S&P BSE Sensex closed at 27,499.4 on December 31, 2014, as against 28,693.9 on November 28, 2014, registering a decrease of 1,194.5 points (4.2 percent). During December 2014, Sensex recorded an intraday high of 28,809.6 on December 1, 2014 and an intraday low of 26,469.4 on December 17, 2014.
Mutual funds report decline in investor complaints
Investor complaints in mutual funds have declined in 2013-14 as compared to the year 2012-13, according to AMFI (Association of Mutual Funds of India) data.
The number of complaints in case of HDFC Mutual Fund declined to 6,023 in 2013-14 from 7,606 in 2012-13. In case of ICICI Prudential Mutual Fund, the number of complaints declined to 4,353 in 2013-14 from 13,000 in 2012-13. Reliance Mutual Fund saw the number of complaints declined to 3,453 in 2013-14 from 13,679 in 2012-13.
ICICI Prudential AMC launches 'Transaction facility' in IPRU Touch
IPRU Touch, an initiative by ICICI Prudential Asset Management Company for financial advisors, just got better with the launch of its newest feature, first time in India- Transaction Facility that will enable the financial advisor to facilitate investors’ transactions through IPRU Touch.
Investors have to sign the Registration form with One Time Mandate (OTM) form to enable this facility. After every transaction by the financial advisor through the Transaction facility, there will be a phone call verification process with investor to ensure that investor knows their investment transaction details and agrees with the same... Read more
L&T MF launches GoInvest Facebook application for Investors
Keen to engage with their young and technology savvy consumer base, L&T Mutual Fund, a subsidiary of L&T Finance Holdings Ltd., became one of India’s primary brands to launch a Facebook application for its investors. The app, which is named GoInvest, is designed to ease the exchange of information between investors and the brand, while managing to sustain their interest and educate them on the mutual funds industry.
Ashu Suyash, CEO – L&T Mutual Fund said, “India has the largest base of Facebook users outside the US with over 112 million accounts, making Facebook the go-to platform for us to connect with our investors, and particularly with the younger investors. The app will allow them to access all vital details of their investments, and at the same time they can learn more about investing in mutual funds through it. Most interestingly, an investor can do all of it while staying online on Facebook.”... Read more
Cash deposits emerge as top sources of retirement income in India
India’s working population relies heavily on cash deposits and second domestic property to generate post-retirement income, according to HSBC’s latest report - The Future of Retirement A balancing act.
The report also shows, working people in India believe that buying a house and paying for children’s education were the top two factors, which have significantly impacted their ability to save for retirement. The report represents the views of more than 16,000 people in 15 countries and territories worldwide with 1,000 respondents from India. The findings are based on an online poll conducted by Ipsos MORI in August and September 2014.
In all 88% of respondents in India, also the highest proportion amongst the polled countries, said they were confident that cash deposits in the banks or trusts were a good option to generate income for retirement. In Indonesia, 82% preferred cash deposits while the figure is 64% in the USA and 56% for UK, according to the report. The proportion of Indians who are confident of second domestic property working as source of retirement income is 85%, behind that of Indonesia (90%) but ahead of USA (54%) and UK (60%)... Read more
News In Focus
Delisting norms: Valuations of cos rise sharply
The SEBI's recent decision to relax delisting norms has led to an increase in valuations of shares of many MNCs, says a media report. The valuations of a lot of companies have gone up sharply, reflecting a de-listing possibility. Sebi's decision on delisting is expected to improve the success of the buyback process and, hence, enhance the chances of successful delisting, according to a portfolio management firm.
Last week, SEBI said companies will be exempt from earlier requirement of minimum 25% public participation for a successful delisting if they can show all shareholders had been contacted.
SEBI has relaxed delisting rules by diluting the provision that mandated companies to get a minimum number of public shareholders to participate for an offer to be successful.
SEBI said a minimum 25% of the issue price shall necessarily be received upfront. The balance will be received within 12 months if the issue size is less than ₹500 crore and for larger issues.
Delisting enables companies to save on administrative and other costs associated with maintaining listing of the company's shares.
SEBI's approach to regulation of delisting of shares aims to protect the interests of small shareholders. SEBI has also amended regulations to issue debt instruments by incorporating express provisions for enabling consolidation and re-issuance of debt securities and call and put options.
Retail investors, its time to review your financial portfolio
The recent rate cut by the Reserve Bank of India (RBI) has definitely come as a surprise to many. The industry is now looking forward to a fall in interest rates from here on. As an investor, you can now review your financial plans to make the most of it in this falling interest rate scenario. Let us look at some of the following benefits that one could look forward to in the coming months.
When interest rates fall, borrowers benefit. The central bank has cut the repo rate, the rate at which it lends to commercial banks, by good 25 basis points to 7.75%. Experts note that if banks pass on the benefit of rate cut to borrowers, Equated Monthly Installments or EMIs on floating rate loans will come down... Read more