Mutual Funds

AIG launches “AIG World Gold Fund”

AIG Global Asset Management Company (India) has finally launched “AIG World Gold Fund” – an open ended Fund Scheme, which will invest in companies engaged in extracting, processing and marketing of gold.

The primary investment objective of the Scheme is to provide long term capital appreciation by investing predominantly in units of AIG PB Equity Fund Gold based in Zurich, which invests primarily in shares of gold mines worldwide with major investments in Canada.

The scheme will offer growth option and dividend option. The dividend option offers dividend payout and dividend reinvestment facilities.

RComm, Hindalco Most Traded By MFs During Feb 2008

Hindalco Industries and Reliance Communication saw much action during February 2008 mutual fund portfolios.

Reliance Vision Fund (7,999,620 Shares), Reliance Equity Advantage Fund - Retail (2,058,649 shares), JM Arbitrage Advantage Fund (413,758 shares), picked up Hindalco Industries, whereas Templeton India Equity Income Fund (200,000 shares), DSP Canara Robeco Multicap (80,000 shares), Standard Chartered Enterprise Equity Fund (55,933 shares) sold the same.

Reliance Communication was favored by Reliance Equity Advantage Fund - Retail (3,391,204 shares), UTI Long Term Advantage Fund - Series I (510,000 shares), UTI India Lifestyle Fund (223,100 shares).

SBI to launch “Real Estate Equity Mutual Fund”

SBI Mutual Funds Management has finally filed its initial papers with India's market regulator for launching a dedicated scheme for the real estate and related sector.

The objective of Magnum Sector Funds Umbrella (MSFU) Real Estate Equity Fund is to provide investors opportunities for long-term growth in capital through an active management of investments in equity and equity-related instruments (including derivatives) of companies in the realty and similar sectors and in debt and money market instruments.  

The open-ended scheme will be available in Retail and Institutional Plan with growth and dividend options.

The minimum investment under the retail plan is Rs 5,000 while under the institutional plan, it is Rs 5 crore.  

SEBI scraps loads on MF’s bonus units and reinvestment of dividend from April 1

The Securities and Exchange Board of India (SEBI) has finally scrapped loads (entry as well as exit) charged by mutual funds on bonus units and units allotted on reinvestment of dividend, with effect from April 1.  

The move is based on recommendations from AMFI’s Working Group on Standardization of Key Operational Areas.

An entry load is charged when an investor enters a mutual fund scheme. For redemptions made thereafter, investors are charged an exit load by the fund house.  However, the fund manager sometimes converts earnings from the scheme into units and distributes them as bonus units to the investors.  These bonus units are then charged entry load and exit load.

DSP Merrill unveils “Fixed Maturity Plan 12 ½ Month Series-1” mutual fund

One of India’s leading mutual funds, DSP Merrill Lynch Mutual Fund has launched a fund “DSP Merrill Lynch Fixed Maturity Plan” (12 ½ Months Series 1) in India market.

The newly launched fund will be a close-ended income schemes, with maturity profile of 12½ months.

The primary investment objective of the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities.

It is envisaged that the portfolio will display a maturity profile that is generally in line with the Term of the scheme. Both funds will invest can invest up to 100% in debt instruments and up to 100% in money market.

EDC to invest $ 50 million in IDFC Infrastructure Fund

Export Development Canada (EDC) is investing US$ 50 million in the proposed US$ 1 billion infrastructure fund in India to provide Canadian companies with new opportunities to participate in major projects in the booming Indian market.

The fund will be managed by IDFC Project Equity Company Limited, a wholly owned subsidiary of Infrastructure Development Finance Company Ltd (IDFC).

Mumbai-based, IDFC provides project finance and investment banking services for infrastructure initiatives in financial markets; asset management; project development; and advisory services.

UBI Join Hands With Kotak Mahindra; Aims To Double Up Business By 2011

United Bank of India (UBI) has decided to join hands with Kotak Mahindra Union Bank Of Indiafor selling mutual fund schemes.

The asset management companies including HDFC, UTI, Franklin Templeton, Reliance and ICICI Prudential are already selling UBI’s mutual fund schemes across the country.

Swapan Biswas, General Manager, (Marketing and New Initiatives) stated, “The tie up with Kotak Mahindra has been finalised and we will sign an MoU with them within two-three weeks. We will ink similar deals with four other companies shortly.”

IDFC To Buy StanChart India’s MF Biz For Rs 830 Cr

Finally, Infrastructure Development Finance Co Ltd (IDFC) has been IDFCannounced as the winner for adopting Standard Chartered’s mutual fund business in India.

The decision in favor of IDFC comes out after a long drawn-out bidding process.

In an all-cash deal, IDFC will pay Rs 830 crore ($205 million) to get hold of the asset management business of Standard Chartered. This amounts to 5.67% of the total assets under management of Rs 14,141 crore of StanChart’s AMC at the end of February 2008.

Kotak Mahindra AMC signs pact with Oriental Bank of Commerce

Kotak Mahindra Asset Management Company has entered into a distribution tie-up with banking major Oriental Bank of Commerce (OBC).

Under the agreement, OBC will offer the entire bouquet of Kotak Mutual Fund’s products across the bank’s branches.

Mr. Sandesh Kirkire, Chief Executive Officer, Kotak Mahindra AMC and Mr. Alok Kumar Misra, Chairman and Managing Director, OBC has signed the MOU.

Increase The Time Limit For Standard Warnings By MFs, Says SEBI

Capital market controller Securities and Exchange Board of India (SEBI) has directed all fund houses to raise the time limit they spend on risk warnings to investors in their radio as well as television ads.

SEBI has asked them that the time for display and voice over to the standard warning be increased to five seconds in place of the current rapid fire manner.

In a circular, regulator said funds that presently take just two seconds to direct customers that “Mutual fund investments are subject to market risks, read the offer document carefully before investing” must now be exhibited and read out for at least five seconds.

Reliance Natural Resources Fund collections cross Rs. 5600 crore

Reliance Capital AMC has managed to collect over Rs 5600 crore through Reliance Natural Resources Fund offer. The fund focused on natural resources got a better than expected response even after a low investor confidence due to recent stock market crash. Reliance Natural Resources fund can invest 70 -100 percent of total funds in domestic stocks. An investment of up-to 30% can be made in global securities as well.

The New Fund Offer received a good response from investors as Energy sector looks promising over a period of 2 – 4 years. Reliance Mutual fund CEO Mr. Vikrant Gugnani said that the allotment process will be finished by the end of February. Reliance Mutual fund has over Rs. 77,000 crore in Assets under management as per the figures of January this year.

UTI AMC files IPO papers for 4.85 crore equity shares

UTI Asset ManagementUnit Trust of India, India's second-largest mutual fund firm, has filed papers for its initial public offer for 4.85 crore equity shares with the Securities and Exchange Board of India.

The IPO is estimated to raise close to Rs 2,000 crore (about $500 million). Its four sponsors and the selling shareholders are State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda.

No need to pay entry load for MFs, says SEBI

SEBIIndia’s Market regulator, Securities and Exchange Board of India (SEBI) has decided to waive entry load for direct applications for mutual fund investments. The progress follows a proposal made by SEBI a few months back to waive entry loads on direct investors in mutual funds.

The mutual fund investors will be exempted from payment of entry fee on applications which are received through the Internet, directly submitted to AMCs’ or to the collection centre/investor services centers that are not routed through any distributor, agent or broker, SEBI stated in a release.

UBS cancels plans to acquire MF business, Standard Chartered plans to find new buyer

Standard Chartered Mutual Fund
Switzerland’s largest bank, UBS has announced that the bank has dropped plans to acquire mutual fund management business in India from the British group Standard Chartered.

UBS said in a statement, “Following the expiry of the sale and purchase agreement that it executed in January this year with Standard Chartered Bank, both the entities have decided not to continue negotiations regarding the acquisition of Standard Chartered’s mutual funds management business in India.”

Govt. Pension Funds Readies For Market

D SwarupThe new government workers, who joined service after January 1, 2004, have now been permitted to invest around 15% of their pension funds in equities and MFs.

The Pension Fund Regulatory and Development Authority (PFRDA) has granted the fund managers of new pension scheme (NPS) to invest around 5% straightly in equities and an extra 10% in mutual fund schemes.

The PFRDA has chosen three fund managers including Life Insurance Corporation of India (LIC), State Bank of India (SBI) and UTI Asset Management Company, n order to ease seamless fund relocation and in the selection of fund managers.

MF AUM Rise 17% In October

Mumbai: The rising nature of the stock market and availability of liquidity in the banking industry has helped the Assets Under Management (AUM) to achieve a new peak of Rs 5.6 lakh crore after climbing 16.7% in October.

This is, for the first time, when AUMs has crossed the Rs 5 lakh crore-mark.

Due to the fear of a sharp correction, capitalists have withdrawn funds from equity schemes when the benchmark indices were achieving new peaks to only reinvest that in liquid as well as liquid plus plans.

The Association of Mutual funds in India (Amfi) said that the asset under management (AUM) of the MF industry stood at Rs 5,56,729.69 crore, which showed an increase of about Rs 79,740.69 crore.

SBI MF To Launch International Equity Fund

SBI_MFMumbai: SBI Funds Management Pvt Ltd has registered initial documents with India’s market supervisory body in order to launch an equity fund, which would invest in domestic plus foreign stocks and mutual funds.

In its offer document, the fund house stated that SBI Emerging International Opportunities Fund will invest around 65 percent of the assets in equities and abroad mutual funds units, and the remaining in debt and money market instruments.

Indian regulations permit fund companies to invest around $300 million in markets out of the country.

Govt. Launches National Investment Fund To Back Up Sick PSUs

FMNew Delhi: The Finance minister P Chidambaram has launched the National Investment Fund (NIF) on Saturday, after two years since authorization of its establishment.

The NIF has got its initial funding of Rs 994.82 crore from earnings of sales of administration’s 5% stake in Power Grid Corporation of India Ltd (PGCIL) that got listed on Friday. Mr. Chidambaram handed over cheques to the CEOs of the three asset management companies (AMCs) including the UTI Asset Management Company Pvt. Ltd., the SBI Funds Management Pvt. Ltd. and the LIC Mutual Fund Asset Management Company Ltd.

Overseas Investment limit raised for Mutual Funds

Mukul Gupta of Birla Sun Life AMC
The Securities and Exchange Board of India has raised the limits for overseas investments by mutual funds. The limit has been increased from current US $200 million to US $ 300 million. The move will help mutual funds to invest more in many overseas markets offering better return compared to India. For the second time this year, the overseas investment rules have been liberalized by SEBI.

Franklin Templeton To Introduce 370-Day Debt Fund Today

Mumbai: FranklinFranklin Templeton Asset Management Templeton Asset Management (India) Pvt Ltd has stated that it will introduce Plan D under Templeton Fixed Horizon Fund-Series II today (September 12). The fund will have tenure of 370 days.

The fund house said the fund would invest in debt and money market tools. It would be open for initial subscription until September 17.
The fund will charge an exit load of up to 2.5% on redemptions before due date (maturity).

The information from Association of Mutual Funds in India showed that the fund house managed assets worth about Rs 30000 crore at the end of August.

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