Mutual Funds Newsletter - September 08 to 12, 2014

India Infoline News Service | Mumbai | September 12, 2014 12:25 IST

SEBI chairman UK Sinha has said minimum net worth of Rs 50-crore for mutual funds is necessary to keep away non-serious players.

Top Stories
 
Assets of MFs stand at Rs. 10.12 trillion in August
The mutual fund industry's asset under its management stood at Rs. 10.12 trillion in August as against Rs. 10.06 trillion in July, according to the Association of Mutual Funds in India data. The equity-focused funds registered an inflow of Rs. 5,217 crore in August compared with Rs. 10,815 crore logged in July. However, the income and liquid funds registered a net outflow of Rs. 12,696 crore and Rs. 5,864 crore. Balanced funds and equity-linked saving schemes attracted inflows of Rs. 448 crore and Rs. 147 crore respectively, while exchange-traded funds (ETFs), excluding gold, registered an inflow of Rs. 51 crore, the data added.
 
Minimum Rs. 50-cr net worth for MFs is necessary: SEBI
SEBI chairman UK Sinha has said minimum net worth of Rs 50-crore for mutual funds is necessary to keep away non-serious players. The SEBI Chairman also cautioned that close down of even a small player could be as fatal as that of a large company for entire financial system. Earlier this year, SEBI has increased the minimum net worth requirement for mutual funds to Rs 50 crore from Rs 10 crore. 
 
New Appointments
 
Marsha Vande Berg joins Board of Quantum Advisors as Independent Member
Quantum Advisors announced that Marsha Vande Berg has joined the Board of Directors of Quantum Advisors Private Limited as an independent Member. Marsha J. Vande Berg has extensive experience in the public and private sectors. In January 2014, she completed 9-year tenure as Chief Executive Officer of a membership organization in the USA that delivers creative content via programming for public fiduciaries. During her tenure, she grew the organization into an influential and powerful thought leader in three of the most defining themes of the 21st century: the impact of investments in emerging markets, the role of financial institutions in the development of an economy, and the increased role of the Asia Pacific region in the global economy.
 
Domestic News
 
MFs buy equities worth Rs. 5,064 crore in July: SEBI
Mutual Funds made net investment of Rs. 23,851 crore in the secondary market in July 2014 compared to net investment of Rs. 71,208 crore in June 2014. Mutual funds invested Rs. 5,064 crore in equity in July 2014 compared to Rs. 3,340 crore invested in June 2014. Further, Mutual Funds invested Rs. 18,787 crore in debt market in July 2014 as against of Rs. 67,868 crore invested in June 2014.
As on July 31, 2014 there were a total of 1,823 schemes under mutual funds of which Income / Debt oriented schemes were 1,346 (73.8 percent), growth/equity oriented schemes were 378 (20.7 percent), Exchange Traded Funds were 42 schemes (2.3 percent), Balanced schemes were 27 (1.5 percent) and Fund of Funds investing Overseas schemes were 30 (1.6 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).
 
MFs report net inflow of Rs. 26,847 crore in July: SEBI
Mutual Funds saw a net inflow of Rs. 26,847 crore in July 2014 as compared to a net outflow of Rs. 59,726 crore  in June 2014, according to SEBI Bulletin. The private sector mutual funds witnessed inflow of Rs. 15,752 crore in July 2014, while public sector mutual funds saw inflow of Rs. 11,096 crore. In June 2014, the private sector mutual funds witnessed Rs. 39,317 crore outflow whereas public sector mutual funds saw outflow of Rs. 20,409 crore. S&P BSE Sensex closed at 25,894.9 on July 31, 2014, as against 25,413.8 on June 30, 2014, registering an increase of 481.2 points (1.9 percent). During July 2014, Sensex recorded an intraday high of 26,271.9 on July 24, 2014 and an intraday low of 25,006.9 on July 14, 2014.
 
Birla Sun Life MF starts merging process of ING MFs
Birla Sun Life Mutual Fund has begun the process of merging all the schemes of ING Investment Management India with its own portfolios, according to a public notice. Birla Sun Life MF will merge all the 26 schemes offered by ING MF with its own funds, the notice added... Read more
 
Birla Sun Life MF reiterates trust in Equities with 'JTTM' Phase-III
Jaanoge Tabhi Toh Maanoge (JTTM) the uniquely executed Investor Education Initiative from Birla Sun Life Asset Management Company Limited, a part of Aditya Birla Financial Services Group, and investment manager for Birla Sun Life Mutual Fund (BSLMF), entered Phase III with the launch of its third TV commercial which breaks across national television. Directed by Shimit Amin, the TVC is created by Taproot, Mumbai. The effort at this stage lies in showcasing the suitability of equity mutual funds as the asset class for wealth creation over the long term. Equity mutual funds have historically proven to be best in class asset category for wealth creation over long duration... Read more
 
JPMorgan Asset Management launches India Corporate Debt Opportunities Fund
JPMorgan Asset Management India Private Limited has announced the launch of JPMorgan India Corporate Debt Opportunities Fund, an open ended income scheme that seeks to generate regular income and capital appreciation by investing predominantly in corporate debt. The underlying investment philosophy of this fund is to generate regular income and opportunities for capital appreciation while maintaining liquidity through active management of a diversified portfolio comprising of corporate bonds and securities across the investment grade credit rating and maturity spectrum... Read more
 
Deutsche Asset Management launches Corporate Debt Opportunities Fund
Deutsche Asset Management India, announced the launch of DWS Corporate Debt Opportunities Fund, an open ended debt scheme. The New Fund Offer period is from September 9 to September 23, 2014. The fund seeks to generate income and capital appreciation by investing predominantly in corporate debt. Suresh Soni, MD & CEO, Deutsche Asset Management India said, Improving business confidence and demand conditions reflect an improving corporate credit environment. DWS Corporate Debt Opportunities Fund seeks to benefit from this trend by actively identifying investment opportunities across the credit spectrum. Our experienced fixed income team, backed by our strong investment process is well placed to deliver superior returns while ensuring strict risk control... Read more
 
Special Stories
 
Mumbai accounts for ~50% of equity turnover
Scrips of the top 20 cities in the total cash market turnover on BSE and the National Stock Exchange (NSE) continue to remain in the range of 80%-90%, according to the SEBI (Securities and Exchange Board of India) data for the month of July. The Mumbai city contributes more than 50% of the total cash turnover. The other cities which contribute to the total cash turnover include Ahmedabad, Bangalore, Delhi, Hyderabad, Rajkot and Kolkata. The share of towns beyond the Top 20 cities is pegged at 21.6% for BSE and only 9.5% on NSE, the SEBI data added.
 
6 IPOs launched in primary market in July
During July 2014, Rs. 2,471 crore were mobilised in the primary market (equity and debt issues) by way of six issues as compared to Rs. 916 crore mobilised through six issues in June 2014, showing an increase of 169.9 percent from the previous month, according to the SEBI Bulletin. Corporate sector mobilised Rs. 27 crore through three equity issues in July 2014 as compared to Rs. 24 crore mobilised by the way of three equity issues in June 2014. The cumulative amount mobilised for the financial year 2014-15, so far, stood at Rs. 4,785 crore through 24 issues as against Rs. 1,921 crore through nine issues during the corresponding period of 2013-14.
 
International News
 
ICI reports estimated long-term MFs' flow in US
Total estimated outflows from long-term mutual funds were $1.05 billion for the week ended Wednesday, September 3, the Investment Company Institute reported on Wednesday. Equity funds had estimated outflows of $4.02 billion for the week, compared to estimated outflows of $577 million in the previous week. Domestic equity funds had estimated outflows of $5.31 billion, and estimated inflows to world equity funds were $1.28 billion.

Hybrid funds, which can invest in stocks and fixed-income securities, had estimated inflows of $544 million for the week, compared to estimated inflows of $943 million in the previous week. Bond funds had estimated inflows of $2.43 billion, compared to estimated inflows of $3.66 billion during the previous week. Taxable bond funds saw estimated inflows of $1.77 billion, and municipal bond funds had estimated inflows of $661 million.
 

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