Mutual Funds Newsletter - July 28 to August 01, 2014

India Infoline News Service | Mumbai |

Equity mutual funds reported an addition of around 84,000 investor folios during the April-June quarter of this fiscal.

News this week

MFs' equity folio stands at 84,000 in Q1 FY15
Equity mutual funds reported an addition of around 84,000 investor folios during the April-June quarter of this fiscal. The number of equity folios rose to 2.92 crore at the end of June 2014 from 2.91 crore at the end of March 2014. The number of equity folios stood at 2.92 crore in May, as against 2.96 crore at the end of April 2014. The mutual funds industry reported a record of Rs 7,309 crore net inflows in equity funds in June, which helped the industry grow its folio count. The BSE's benchmark Sensex breached 25,000 mark in June, NSE's Nifty closed at its the then all-time high of 7,600 points during the month.

Investors redeem Rs. 597bn from MFs in June
Investors offloaded over Rs. 597.26 billion from various mutual fund schemes in June, while they invested Rs. 1.46 trillion in the preceding two months, according to the latest SEBI (Securities and Exchange Board of India) data. Investors had invested Rs. 336.61 billion in various MF schemes in May, while they had pumped in Rs. 1.12 trillion in April. At gross level, fund houses received investments worth Rs 8.92 trillion in June, whereas they redeemed investments worth Rs 9.51 trillion. This resulted in a net outflow of Rs 597.26 billion... Read more

MFs invest Rs. 3,340 cr in equity in June
Mutual funds made net investment of Rs. 71,208 crore in the secondary market in June 2014 compared to net investment of Rs. 50,786 crore in May 2014. Mutual funds invested Rs. 3,340 crore in equity in June 2014 compared to Rs. 106 crore invested in May 2014. Further, Mutual Funds invested Rs. 67,868 crore in debt market in June 2014 as against Rs. 50,680 crore invested in May 2014. As on June 30, 2014 there were a total of 1,819 schemes under mutual funds of which Income / Debt oriented schemes were 1,343 (73.8 percent), Growth/equity oriented schemes were 378 (20.8 percent), Exchange Traded Funds were 42 schemes (2.3 percent), Balanced schemes were 26 (1.5 percent) and Fund of Funds investing Overseas schemes were 29 (1.6 percent)... Read more

Need for consolidated results statement is for investor: SEBI
SEBI chairman UK Sinha on Friday said that the tax relief for mutual fund linked retirement plans would be included in Section 80C limit of Rs. 1.5 lakh. Sinha further said that no additional tax relief window will be available for such an investment. Speaking about the issue of publication of consolidated or standalone results by listed companies, Sinha said the ‘requirement for consolidated statement is in the interest of the investor’. Therefore, it has been prescribed.
SEBI has also sought views of RBI and Institute of Chartered Accountants of India in case of the issue of publication of consolidated or standalone results by listed companies. Sinha was in Coimbatore for a meeting on the role of capital markets in SME funding.


SEBI hikes investment cap for FPIs in G-secs
The SEBI has decided to enhance the investment limit in government securities available to all FPIs by USD 5 billion by correspondingly reducing the amount available to long term FPIs from USD 10 billion to USD 5 billion within the overall limit of USD 30 billion. The incremental investment limit of USD 5 billion (INR 24,886 cr) shall be required to be invested in government bonds with a minimum residual maturity of three years, SEBI said in a circular on 24 July... Read more

Insurance, SEBI Bills to be tabled in Monsoon Session
The Insurance Amendment Bill and SEBI Ordinance Bill are likely to be moved in the current Parliament session, which will go on around mid-August, according to a media report.
The Business Advisory Committee has also allotted time for both these critical bills. Normally, it is the finance ministry which is to complete the procedures for the introduction of these bills, the report added.


Bar 'wilful' defaulters from capital mkts: RBI to SEBI
The RBI (Reserve Bank of India) has suggested to SEBI (Securities and Exchange Board of India) that “willful” defaulters of bank loans should be prevented from raising funds through capital markets, according to a media report. At present, the information about willful defaulters of bank loans are shared with SEBI and others, including credit information agencies on a quarterly basis. The central bank is exploring ways to share details of these defaulters with SEBI on real-time basis, the report added. The matter is yet to be discussed by Sebi internally and a final decision can be taken only after taking into account the provisions in various sets of existing regulations and the views of all stakeholders.

DSP BlackRock launches Global Asset Allocation Fund
DSP BlackRock Investment Managers Pvt. Ltd., one of the premier asset management companies in India, announced the launch of the DSP BlackRock Global Allocation Fund, an open ended fund of funds scheme investing in an international fund, BlackRock Global Funds - Global Allocation Fund. The underlying scheme, BlackRock Global Funds - Global Allocation Fund, has a performance track record of more than 17 years. BlackRock Global Funds - Global Allocation Fund typically invests in more than 700 stocks across sectors in 40 countries, including India, and in almost 30 currencies globally... Read more

L&T Mutual Fund launches Business Cycles Fund
L&T Mutual Fund announced the launch of L&T Business Cycles Fund, an open ended equity scheme. The aim of the fund is to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian market with focus on riding business cycles through strategically changing allocation between various sectors and stocks at different stages of business cycles in the economy. The new fund offer (NFO) will remain open from July 30 – August 13, 2014... Read more
 

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