The mutual fund industry in India is increasing focusing on the Rajiv Gandhi Equity Saving Scheme after the government said that it would extend it for three successive years.
The finance minister also allowed investors with Rs. 12 lakh income to invest in the schemes to get tax benefit from the financial year 2013-2014. About seven new offers are now available for the investors to take advantage of the scheme. Experts have said that such schemes offer a good entry point for the persons looking for the first time.
The mutual fund (MF) industry enjoyed an increase of 5.3 per cent or around Rs 39,200 crore in the average assets under management (AUM) to Rs 7.87 lakh crore in the October to December quarter of 2012.
This is the highest level since the Association of Mutual Funds of India (AMFI) started declaring quarterly average numbers in September 2010. The figure for the past quarter also marked the third successive quarterly gain in assets.
In the full 2012, The AUM of MFs jumped 15 per cent, as compared with just 1 per cent in the previous year.
After PPFAS Mutual Fund of Parag Parikh Financial Advisory Services Group gained registration with SEBI last month, the number of registered mutual funds in India reached 50.
The latest list of SEBI-registered mutual funds shows that there were 50 such entities in the country as on 31st of October this year.
Mutual Funds (MFs) sold equity assets worth more than Rs 3,000 crore during September, as markets rallied on restoration of the long-awaited economic reforms by the union government.
According to figures released by the Securities & Exchange Board of India (SEBI), mutual funds sold equity assets worth Rs 3,008.10 crore as on 27th of September. It was the biggest sale by mutual funds in the past four months, as benchmark Sensex gained 7.42 per cent on the back of strong buying by foreign institutional investors.
Investment management firm Invesco has purchased a 49 per cent stake in Religare Mutual Fund for nearly Rs 460 crore, subject to regulatory approval.
Religare Mutual Fund was created as a joint venture between Indian asset management firm Religare and Dutch financial services giant Aegon. But the Dutch firm sold its entire stake to the Indian firm and quitted the joint venture in 2009.
More than half of actively managed large-cap equity mutual funds failed to beat their respective benchmark index in the past five years, according to a fresh report by S&P Dow Jones Indices and Crisil.
The standard against which the performance of mutual funds is gauged is called benchmark. The agency analyzed S&P Indices Versus Active Funds scorecard and found that 52.63 per cent of the actively managed large-cap equity mutual funds underperformed their benchmark over the last one year and 53.33 per cent underperformed their benchmark over the last five years.
Upendra Kumar Sinha, Chairman of the Securities and Exchange Board of India (SEBI) has said that the regulator is concerned over the weak health of the mutual funds' industry in the country.
The mutual funds' industry has been affected by leaving investors and difficult domestic as well as global economic environment. The Indian mutual fund industry sank by as much as 16.5 per cent as its assets under management (AUM) fell from Rs 703,669 crore in March 2011 to Rs 587,659 crore in March 2012.
Emerging Markets Private Equity Association (EMPEA) which manages a global proprietary database of private equity activity across emerging markets announced that India and China has got as much as 68% of the total private equity funds.
EMPEA quoted, "China and India together captured 68 per cent of the total invested, with USD 5.8 billion going into China and USD 3.8 billion into India”.
Association of Mutual Funds in India (AMFI) has got its new chairman. This position at AMFI was vacant since departure of U K Sinha from the association to become the chief at market regulatory body Security and Exchange Commission of India (SEBI).
The new chairman at the AMFI is Milind Barve. Milind Barve is serving as Managing Director of HDFC Asset Management Company. In the same announcement, AMFI declared its vice-chairman also.
The average Assets Under Management (AUM) of the mutual fund industry has seen a nearly 4% rise in the month of September because of the rally in the market. But the experts say the redemptions continue to plague the industry at the same time.
The monthly AUM data for the month of September posted on the website of the Association of Mutual Funds of India showed an increase because of a rise in the Net Asset Values and not necessarily because of the increase in the investor numbers.
The mutual fund sector for the first time since June2009 has been able to register growth in average assets under management (AAUM) by overcoming the quarter back effects, first time in last five quarters. The growth was achieved largely due to the fixed income category and beneficial liquidity condition in the earlier part of the month.
The statistics provided by the Association of Mutual Funds in India (AMFI) showed that the fund sector witnessed the growth by 3.7 percent to 7.12-lacs- crore in September as that to 6.87-lacs- crore in the previous month.
It has been found out from a recently done survey that close to 60% of the mutual funds have over-performed their benchmark index in the past 32 months.
In fact, as the sensex has recently kissed the 20,000 mark, a survey by FE has suggested that the mutual funds have beaten the benchmark index with a wide margin in a scenario where the markets are either flat or are going through a bull-run.
Moreover, the survey further pointed out the fact that close to 108, equity diversified funds since Jan2008 have outperformed their benchmark index while 97 of them have been under-performing in their category.
A new fund has been started by Reliance Mutual Fund and the name of the fund is Reliance Fixed Horizon Fund - XV - Series 9. It is going to be a closed ended income scheme which will have a period of 370 days from the date of allotment of the scheme.
The unit price of the NFO is going to be Rs 10 per unit and the scheme will be open from subscription from September 13 and close on September 14, 2010.
Viom Networks has seen 11 per cent of its stake being bought over by Macquarie SBI Infrastructure Fund (MSIF). The total amount that is being for this is Rs 1,400 crore.
Chairman of one of the main promoting companies of Viom gave this information on Wednesday. Talking to media, Sunil Kanoria, SREI Infrastructure vice-chairman said that 11 per cent sale and the subsequent money generated by it will be used for repaying loan that has been created by Viom.
In the latest available data about the mutual fund industry, it was seen that the assets under management of (AUM) the funds has steeply fallen for second consecutive month. The overall fall for the quarter has been 1.5 per cent.
Even the biggest mutual fund, Anil Ambani's Reliance MF was unable to hold on to its gains and fell down.
In all, the AUM of the whole sector went down by Rs 10,296.15 crore, or 1.52 per cent. The combined average AUM of the sector, which consisted 39 funds stood at Rs 6,65,567 crore in July.
After facing a continuous depletion in the asset base, the mutual fund industry is also facing a tough question. The number of consumer complaints faced by, the industry have increased dramatically.
Most of the complaints are with respect to the redemption proceeds and non-receipt of dividends. These are the areas which are turning out to be the biggest worry not only for the investors but also for the people.
HDFC Asset Management has been barred from trading in the stock market by Securities and Exchange Board of India (SEBI). This step was taken by the regulator because it found the equities dealer involved by leaking key information in advance.
The orders are that it should not be allowed to do any market transaction till further notice is served to them.
SEBI showed instances where investors Rajiv Ramniklal Sanghvi, Chandrakant P Mehta and Dipti Paras Mehta, placed their orders in the same stocks just before they were traded by Nilesh Kapadia on behalf of HDFC AMC.
Capital market regulators, Securities and Exchange Board of India (SEBI) has made a proposal whereby it wants to review the regulations governing the mutual fund (MF) industry. And a part if this is the one that covers the portfolio management done by the asset management companies (AMCs).
SEBI calls for the clear demarcation to be drawn between the two different businesses. This is happening as SEBI wants that there should be no conflict of interest between the two businesses.
On Wednesday, IDFC Mutual Fund declared a dividend of 20 per cent for its IDFC Indian GDP Growth Fund. This means that for every share of IDFC with a face value of Rs. 10, the company will pay a dividend of Rs. 0.20.
The record date for paying dividends is May 31, 2010. The company said that the Indian economy has bounced back from the slowdown in a major manner and that means that the economy is going back on the fast-track.
State Bank of India's mutual fund, SBI MF has decided to come up with an open-ended equity scheme.
The name of the fund will be SBI PSU Fund and it will be investing money in the public sector units of the country. The money will be invested through the stocks of these PSUs rather than going through any other means. But the bonds and other debt instruments that are issued by the PSUs will also considered as an investment tool.
The fund opened on Monday and will close on June 14.