Latest Indian Mutual Fund News | 10-Oct-2011


1.Fact sheets delayed due to new SEBI rules.

If you invest in mutual funds (MFs) but still haven't got September-end fund fact sheets, don't be surprised. There has been a slight delay from fund houses this time because of the new norms issued by the capital markets regulator, Securities and Exchange Board of India (SEBI), on how MFs should advertise their performance. Most of the fund houses are expected to issue their latest fact sheets by the second week of September. Says Surajit Misra, national head (mutual funds), Bajaj Capital Ltd, one of India's largest retail MF distributors: "We haven't heard anything from fund houses about September-end fact sheets which are not yet out. I think they are waiting for some clarifications from SEBI before they can finalize fact sheets."

In a circular issued on 22 August, SEBI asked MFs to report their scheme performances in a new manner. It asked schemes that are more than a year old to display one-year performances for as many unique one-year periods there are, going back from the calendar quarter preceding the date on which the performance is to be published.

News Source – LIVE MINT.

2.Niche marketing helps funds beat downturn.


When the going gets tough, the tough gets going. Post the ban on entry load, many mutual fund players have realigned their business strategy to focus on their 'niche' segments. It was in August 2009 that the market regulator imposed a ban on the entry load and ever since the sales of equity schemes-the bread and butter of mutual fund industry – have been falling. Not to mention the poor equity markets giving little headroom to launch new fund offering (NFO). However two years later, the 'niche' positioning that many fund houses had adopted to market their products is helping them survive the downturn. Some of the fund houses such as Goldman Sachs (formerly known as Benchmark MF), Motilal Oswal and more recently launched India Infoline MF are now focusing on 'passively' managed products. Passively managed funds could be exchange traded funds, index funds or quant funds which as the name suggests are passively managed as against 'active' funds which usually has a fund manager actively picking stocks for his funds.


3.Nippon may buy 26% in R-Cap MF arm.


Reliance Capital Asset Management Ltd, the mutual fund arm of the Anil Ambani-controlled Reliance Group, may sell a 26% stake to Japan's Nippon Life Insurance Co. Two Reliance Group officials said that the companies are in advanced talks and the transaction may be clinched at a valuation of up to Rs. 4,000 crore, which would be a record for a mutual fund stake sale.

News Source – LIVE MINT.

4.SEBI rule forces PMS to shift assets to mutual fund.


Parag Parikh Financial Advisory Services (PPFAS) has proposed to channel assets from its portfolio management services (PMS) business to set up a mutual fund. The structural change is perhaps the first of its kind since the market regulator proposed a five-fold increase in the minimum investment level for the PMS segment.

The Securities and Exchange Board of India's (Sebi) proposal to increase the minimum threshold from Rs5 lakh to Rs25 lakh added to a series of other existing operational issues, resulting in a decision to switch to a mutual fund structure to manage its clients' money, said a top executive of the firm.

News Source – DNA INDIA.


5.Tata Mutual unveils 3 'plan retirement' schemes.


Tata Mutual Fund announced the launch of a three plan retirement savings scheme – Tata Retirement Savings Fund. The new fund offer for the scheme opens on October 7 and will close on October 21. Investors can choose from three different plans offered by the fund, depending on their age and their risk preferences. The three plans are – Progressive Plan, an open ended equity scheme; Moderate Plan, an open ended equity scheme; and Conservative Plan, an open ended debt scheme.

News Source – BUSINESS LINE.


1.ICICI Prudential Capital Protection Oriented Fund II files offer document with Sebi.


ICICI Prudential Mutual Fund files offer document with Sebi to launch ICICI Prudential Capital Protection Oriented Fund, a close ended Capital Protection Oriented Fund. It would have eight plans VI to XIII with duration 12-36 months duration. The investment objective of the plans under the scheme is to seek to protect capital by investing a portion of the portfolio in good quality debt securities and money market instruments and also to provide capital appreciation by investing the balance in equity and equity related securities. The securities would mature on or before the maturity of the Plan under the scheme.

News Source – NAV INDIA.


2.Canara Robeco MF declares dividend under two schemes.


Canara Robeco Mutual Fund has declared dividend under dividend options of Canara Robeco Equity Diversified Fund and Canara Robeco Balance Fund. The quantum of dividends will be Rs 1.00 per unit under Canara Robeco Equity Diversified Fund and Rs 1.50 per unit Canara Robeco Balance Fund as on record date. The record date for the dividend pay out has been fixed as October 14, 2011.

News Source – LIVE MINT.
3.UTI Mutual Fund announces dividend under UTI Fixed Income Interval Fund – Monthly Interval Plan.


UTI Mutual Fund has announced dividend under UTI Fixed Income Interval Fund – Monthly Interval Plan II. The quantum of dividend will be 100% distributable surplus as on the record date. The investment objective of the scheme is to generate regular returns by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plan. The record date for dividend distribution is 11th October 2011.


4.Reliance FHF XVIII Series 8: Dividend Declaration.


Reliance Mutual Fund has announced dividend under the dividend payout option of Reliance FHF XVIII Series 8. The quantum of dividend will be the entire distributable surplus as on the record date. The record date has been fixed as October 13, 2011.



5.Reliance MF: Introduction of Reliance Salary Advantage Facility.


Reliance Mutual Fund has introduced Reliance Salary Advantage Facility which will be available in 11 schemes from all categories of mutual funds. This facility is for employers. They can enter into an agreement with Reliance MF to deduct desired amount from the salary of the employees and remit the same to Reliance MF through a consolidated Cheque/fund transfer/debt instruction. Subsequently monthly/quarterly deductions will happen each month/quarter on the specified date.


6.Reliance SIP Insure: Change in Exit Load.


Reliance Mutual Fund has revised the exit load structure under Reliance SIP Insure Facility with effect from October 10, 2011. The revised exit load will be 2% on redemption or switch out of units acquired under Reliance SIP Insure facility before the maturity of the committed SIP Insure tenure or before the completion of 55 yrs of age whichever is earlier.



7.Axis MF Introduces Micro SIP Under Axis Gold Fund.


Axis Mutual Fund has announced the introduction of Micro SIP under Axis Gold Fund which will be available during the New Fund Offer (NFO) period. The new fund offer period will close on October 14, 2011. Axis MF has also introduced Easy SMS Facility (Mobile Transaction Facility) for all open-ended schemes of Axis Mutual Fund (except for Axis Gold ETF), with effect from October 17, 2011.


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