MF Companies Keen Realty ETF

Mumbai/ Ahmedabad: The Indian mutual fund companies are not only dazzled by the glitter of gold but also by the shine of an estimated Rs 1,30,000-crore worth realty sector. So far, two mutualf fund companies have unveiled their Gold Exchange Traded Funds (ETFs) and many more companies, including Lotus India AMC are mulling to launch their gold ETFs within a few months. These companies are also awaiting the Securities and Exchange Board of India (Sebi) guidelines on real estate ETF. Country's second Gold ETF after Benchmark AMC's Gold ETF called 'Gold BeEs' was launched in Ahmedabad on February 27 and the company's next product will be a real estate ETF. On how the Gold ETF will grow in the Indian market, Mittal said, Initially five to six per cent of the total 35 per cent of gold investment will be converted into ETFs. After that there is only growth in the sector as Indian investor is traditionally a gold investor and the product has succeeded in countries like Australia, Turkey and many European countries. These countries are not traditionally into gold investment so in India gold ETF will surely be a major success. The market will respond to gold far better than other commodities like silver and oil as gold does not have many spot exchanges while other commodities have spot exchanges. However, discussions are on between the Forward Market Commission (FMC) and Association of Mutual Funds in India (AMFI) in this regard. Depending on the outcome of these discussions many more commodities like oil and silver may be added in the country.

Mutual Fund Take To Buying

Domestic mutual funds (MFs) continued their buying spree for the seventh consecutive day after selling continuously for seven trading days in February 2007. On Monday (26 February 2007), MFs bought shares worth Rs 270.59 crore compared with Friday's (23 February 2007) purchases of Rs 37.21 crore. Out of the 17 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on nine. MFs reported gross purchases worth Rs 821.03 crore, their gross sales aggregating Rs 550.44 crore. The 30-share BSE Sensex advanced 16.99 points (0.12%), to 13,649.52 on 26 February 2007. The cumulative investment by MFs, till 26 February 2007, is an outflow of Rs 866.11 crore. MF net inflow from April 2006-February 2007, to 26 February 2007, stands at Rs 10111.76 crore.

Goldman Sachs Plans To Foray Into the Mutual Fund Industry

Goldman Sachs the New York based and one of the world largest investment banking firms in the world mlls to foray into the India Mutual Fund industry. Goldman Sachs joins JP Morgan, and AIG who have already got the approval of the capital market regulator’s approval for starting their operations in India. As of 2006, the assets under management for Goldman Sachs were worth $676 billion.

MFs In Buying Mood

Domestic mutual funds (MFs) are in buying mood. MFs, for the sixth consecutive day after selling continuously on seven trading days in February 2007. On Friday (23 February 2007), MFs purchased shares worth Rs 37.21 crore compared with Thursday's (22 February 2007) purchases of Rs 0.75 crore. Out of the 16 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on eight. MFs made gross purchases worth Rs 780.45 crore, their gross sales aggregating Rs 743.24 crore. The 30-share BSE Sensex advanced 16.99 points (0.12%), to 13,649.52, on 22 February 2007. The cumulative investment by MFs, till 23 February 2007, is an outflow of Rs 1136.70 crore.

SBI MF Announces 110% Dividend In Magnum Taxgain Fund

SBI Mutual Fund will pay a 110 per cent dividend under Magnum Taxgain Fund. The record date for the same has been fixed as March 2, 2007.This is the tenth dividend payout from the fund. Last year, the fund had declared a 150 per cent in March 2006.

ABN Amro Likely To Unveil Realty Fund

Mumbai: ABN-Amro Mutual Fund has registered with Securities & Exchange Board of India (Sebi) for a scheme that will invest in real estate companies and leading property companies worldwide. The ABN-Amro Global Property (India) Equity Fund, which awaits the regulator's approval, proposes to invest in foreign equity and equity-related securities through ABNAmro's Luxembourg-based ABN-Amro Global Property Equity Fund. The latter is a diversified, actively managed fund mainly investing in realty companies and top property companies across the globe.The Reserve Bank of India (RBI) permits resident Indians to invest $50,000 per annum overseas. Analysts said, the ABN-Amro scheme was aimed at this segment.

UTI Mutual's Record Date Feb 28

UTI Mutual Fund has announced February 28, 2007 as the record date for the purpose of declaring dividend in UTI Fixed Maturity Plan Q Nov 06 Series-II.

MFs Continue To Buy

Domestic mutual funds (MFs) continued their buying spree for the fifth consecutive day after selling continuously for seven trading days in February 2007. On 22 February 2007, MFs purchased shares worth Rs 0.75 crore compared with Wednesday's (21 February 2007) purchases of Rs 17.81 crore. Out of the 15 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on seven. MFs made gross purchases worth Rs 1063.85 crore, their gross sales aggregating Rs 1063.10 crore. The 30-shares BSE Sensex plunged 388.78 points (2.77%), to settle at 13,659.53 on 22 February 2007. The cumulative investment by MFs, till 22 February 2007, is an outflow of Rs 1173.91 crore. MF net inflow from April 2006 - February 2007, to 21 February 2007, stands at Rs 9803.96 crore.

PAN Card Holders To Get MIN Exemption

The prevailing confusion over the mutual fund identification number (MIN) is expected to end shortly. It is expected that all cardholders of PAN, the alpha-numerical number issued by the Income Tax Department, would be exempted from having another identification number in the form of MIN. On the other hand, a MIN would be required for all those investors who do not have a PAN but want to invest more than Rs 50,000 in a mutual fund scheme.
Finance minister P Chidambaram had said that PAN would be the core number and MIN will act as a prefix or a suffix to the PAN.CVL, the subsidiary of Central Depository Services, which was issuing the MIN, would upgrade its systems to match the criteria mandated by the ministry. PAN displays the name, date of birth and photograph of the cardholder, while the Income Tax Department has stored all relevant information of the holder. Upgradation of systems by CVL would involve matching these relevant information and creating a combined data base for meeting know your client norms.

Mutual Fund On Buying Spree

Domestic mutual funds (MFs) on buying spree for the fourth consecutive day after selling continuously for seven trading days in February 2007. On 21 February 2007, MFs purchased shares worth Rs 17.81 crore compared with Tuesday's (20 February 2007) purchases of Rs 2.95 crore. Out of the 14 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on six. MFs made gross buying worth Rs 557.78 crore, their gross sales aggregating Rs 539.97 crore. The 30-shares BSE Sensex lost 64.89 points, at 14,188.497 on 21 February 2007. The cumulative investment by MFs, till 21 February 2007, is an outflow of Rs 1174.66 crore. MF net inflow from April 2006-February 2007, to 21 February 2007, stands at Rs 9803.21 crore.

Dividend Declared Under Principal Resurgent India Equity

Principal Mutual Fund has decided to pay a dividend of 60%, Rs.6/- per unit on the face value of Rs 10, under the Principal Resurgent India Equity Fund. The record date for the same has been fixed as February 26, 2007.This is the sixth dividend payout from the fund since its launch. Last Year, the fund paid two dividends of 65 per cent and 50 per cent in March and August 2006, respectively.

Mutual Fund Buying Reduces

Domestic mutual funds (MFs) continued buying for the third consecutive day after selling continuously for seven trading days in February 2007. On 20 February 2007, MFs purchased shares worth Rs 2.95 crore compared with Monday's (19 February 2007) purchases of Rs 130.77 crore. Out of the 13 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on five. MFs made gross purchases worth Rs 544.59 crore, their gross sales aggregating Rs 541.64 crore. The 30-shares BSE Sensex lost 149.52 points (1%), to 14,253.38, on 20 February 2007. The cumulative investment by MFs, till 20 February 2007, is an outflow of Rs 1192.47 crore. MF net inflow from April 2006-February 2007, to 20 February 2007, stands at Rs 9785.40 crore.

Principal Long Term Equity Propones NFO Period

Principal Mutual Fund has proponed the New Fund Offer of Principal Pnb Long Term Equity Fund - 3 Year Plan - Series I, a 3-year close-ended equity scheme with automatic conversion into an open-ended scheme upon maturity, is extended by two days upto February 23, 2007. Accordingly, the New Fund Offer of PPLTEF is open for initial subscription from January 24, 2007 to February 23, 2007.

Kotak Tax Saver To Pay 30-pc Maiden Dividend

Kotak Mahindra Mutual Fund has decided to pay a maiden dividend of 30 per cent, Rs 3/- per unit on the face value of Rs 10, in its open-ended ELSS Scheme - Kotak Tax Saver. The scheme aims to generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time. The record date for dividend is February 20, 2007. All Investors, whose names appear under dividend option of the scheme as on February 20, 2007 would be eligible for the dividend. The NAV as on February 15, 2007 under dividend option was Rs 14.82. Over the last one year, Kotak Tax Saver has yielded 26.4% as compared to 29.4% given by its benchmark S&P CNX 500 as on February 15, 2007.

Escorts MF To Pay Monthly Dividends In Escorts Income Plan

Escort Mutual Fund has delared a monthly dividend of 0.35% under the dividend plan of Escorts Income Plan and a 1.5% dividend has been announced under the dividend plan of Escorts Opportunities Fund. The record date for the both the dividends is 22 February 2007.

Taurus MF Rolls Out Taurus INFRA-TIPS

Taurus Mutual Fund has rolled out a new scheme called Taurus INFRA-TIPS, an open-end equity thematic scheme on 5 February 2007. The basic theme of the scheme is Infrastructure. The words TIPS depict some of the sectors which form important ingredients in the Infrastructure sector i.e. ‘T’ - Transport, Telecom, ‘I’-Industrial Manufacturing - Engineering, ‘P’- Power, Petroleum, ‘S’-Shipping, steel etc..As per Planning Commission estimates, investment of more than $350 billion is required in the next 4-5 years. As such investors who invest in infrastructure theme scheme can take advantage of this investment surge and reap the fruits. Taurus Mutual Fund is therefore, offering an opportunity to the investors to participate in Infrastructure growth by introducing Taurus INFRA-TIPS, an open-end equity thematic fund. Taurus INFRA-TIPS opened on 5 February 2007 and will close on 5 March 2007. Being an open-end scheme, most of the initial issue expenses will be borne by the AMC. Minimum investment in the Scheme has been kept as Rs.1000/- so that small investor can also take the benefit of growth in the Infrastructure. As such, investing in Taurus INFRA-TIPS can provide better investment opportunity to the investors. The investment objective of the Taurus INFRA-TIPS is to provide capital appreciation and income distribution to the unitholders by investing pre-dominantly in equity and equity related securities of the companies belonging to the infrastructure sector viz. Construction, Housing, Cement, Coal, Earth Moving Equipments, Energy, Engineering, Petroleum, Ports and Power Equipments, Telecommunication, Transportation, Metals, Capital Goods etc. Fund would be adopting bottom up approach in the stock selection with strict investment strategy. The maximum exposure in a sector related to Infrastructure theme would not be more than 7-8%. Similarly, maximum exposure in a particular stock would not exceed 5-6% of the total assets. With such investment strategy, Fund is looking forward to provide a feel of Infrastructure growth to its investors.

Mutual Funds In Buying Mood

Domestic mutual funds (MFs) is said to have bought for the second consecutive day after selling continuously for seven trading days in February 2007. On Monday (19 February 2007), MFs bought shares worth Rs 130.77 crore compared with Friday's (15 February 2007) purchases of Rs 104.88 crore. Out of the 12 trading sessions in February, MFs were net sellers of equities for 8 days, and net buyers on four. MFs made gross purchases worth Rs 704.22 crore, their gross sales aggregating Rs 573.45 crore. The 30-shares BSE Sensex settled 47.35 points, at 14,402.90, on 19 February 2007. The cumulative investment by MFs, till 19 February 2007, is an outflow of Rs 1195.42 crore. MF net inflow from April 2006-February 2007, to 19 February 2007, stands at Rs 9782.45 crore.

Prudential ICICI Fusion Series II

This close-ended fund is targeted at investors who have a minimum three year time horizon for investing. It will convert into an open-ended scheme at the end of its three year maturity period.In its initial days the fund intends keeping the portfolio flexible across stocks of different capitalisation. Hence there will be no capitalisation bias in investing. However, gradually the fund intends to build its position in the mid and small cap stocks. This mid and small cap oriented portfolio will be concentrated on a core portfolio of 25 - 30 stocks.
The fund will offer a liquidity window on a quarterly basis and redemptions will be made on the 15th day at the end of each quarter.The NFO also offers free group insurance coverage for resident individual participants and the Karta of a Hindu Undivided Family in the 18-50 year age bracket. The cover is for the three year period and is restricted to those who respond to a health questionnaire. The earlier close-ended offering, launched under the similar Fusion series in February 2006, has returned 25.10 per cent (as on February 15, 2007) since inception. Pru ICICI Fusion is also a mid and small cap oriented fund with 87.8 per cent of its net assets (based on January 31, 2007 portfolio) deployed among mid and small cap stocks.

UTI MF Rolls Out UTI Gold ETF

UTI Mutual Fund has rolled out UTI Gold Exchange Traded Fund (ETF) from 1 March 2007. The New Fund Offer (NFO) closes on 12 March 2007. UTI Gold Exchange Traded Fund is an open-ended exchange traded fund designed to track the performance and yield of the underlying asset viz. gold. The scheme will be invested in gold bullion and will reflect the international price of gold in the market. The objective of UTI Gold ETF is to endeavours to provide returns that, before expenses, closely track the performance and yield of Gold. Every unit of UTI Gold Exchange Traded Fund will approximately represent one gram of pure gold. Units allotted under the scheme will be credited to investors’ demat accounts.

MF NAVs Surge Higher As Markets End On Strong Note

Equity diversified NAVs surged higher as markets ended the day on strong note. The Sensex was up 345.65 points or 2.47% at 14355.55, and the Nifty up 99.10 points or 2.45% at 4146.2. All equity diversified and balanced funds finished with positive returns. All sectoral funds advanced sharply. The BSE Auto, Bankex, FMCG, Healthcare and IT indices gained 2.86%, 2.95%, 1.28%, 1.86% and 3.79%, respectively.
On the debt front, long term and short term debt funds ended higher; advance:decline ratio stood at 69:10 and 48:12. Among the equity diversified funds, the top gainers were JM Equity Fund (G) up 4.39%, UTI India Advantage Equity Fund (G) up 4.39% and Standard Chartered Premier Equity Fund (G) up 4.12%. Among the tax saving funds, the top gainers were Taurus Libra Tax Shield up 4.17%, Escorts Tax Plan (G) up 3.46% and the top loser was HDFC Tax Saver (G) up 3.15%.

Among the sector funds, the top gainers were JM Financial Services Sector Fund (G) up 3.85%, Birla Sun Life New Millennium (G) up 3.65% and Reliance Media & Entertainment Fund (G) up 3.65%. Among the balanced funds, the top gainers were Kotak Dynamic Asset Allocation (G) up 3.28%, Escorts Balanced Fund (G) up 2.91%, LIC MF Balanced Fund - C (G) up 2.23%.

Irda Likely To See Risk-Based Capital Norms In 4 yrs

Mumbai: The insurance industry likely to see moves to shift to risk-based capital norms in the next three to four years from the current solvency margin regime. Insurance companies, at present, are required to maintain a solvency margin where the excess of capital of an insurance company plus the value of assets should be 150 per cent of insured liabilities.
According to the source, solvency is a serious prudential issue. As risks in markets increase, the solvency level goes up. It is likely that when risk-based capital norms are introduced, the solvency margin requirements may actually increase to 200 per cent as seen in many jurisdictions abroad. The matter of adopting global practices in bringing adequate solvency ratio practices to the insurance industry in India, is being studied and suitable decisions in this regard will be taken in due course.The insurance industry (life and non-life combined) will have total capital of Rs 10,000 crore by 2008. As on March 31 2006, the life insurance industry's capital base was Rs 6422 crore. During April-December 2006, over Rs 1,500 crore of capital was infused by the 14 life insurance players, taking the life insurance industry's total capital base to over Rs 8,000 crore.

Load Revision In Principal Income

Effective February 9, 2007, Principal Income has revised the exit load. Now, the fund has introduced an exit load for redemptions above Rs 10 lakhs also. It would charge an exit load of 1 per cent for investments redeemed within 3 months from the date of subscription. Meanwhile, the exit load for investment of Rs 10 lakhs or less continues to be the same. An exit load of 0.50 per cent would be charged for redemptions made within 180 days.

Mutual Funds On Selling Spree

Mutual funds (MF) continued to sell for the fourth consecutive day after they sold shares worth a net Rs 37.84 crore on 7 February 2007 compared to Tuesday’s (6 January) sales of Rs 28.28 crore. MFs reported gross sales worth Rs 800.69 crore and their gross purchases aggregated Rs 762.85 crore on Wednesday (7 February 2007). The 30-share BSE Sensex jumped 164.94 points (1.1%), to a lifetime closing high of 14,643.13 on 7 February 2007. MFs net outflow from April 2006 - February 2007, till 7 February 2007, stand at Rs 1342.23 crore.

SBI Mutual Fund Rolls Out SDFS-15M

SBI Mutual Fund has introduced its close-ended debt scheme, SBI debt fund series-15 months fund. The new fund offering (NFO) would open on 9 February 2007 and close 19 February 2007.
The investment objective of the scheme would be to provide regular income, liquidity and return to investors through investment in a portfolio comprising debt instruments. The fund would invest in a portfolio of high quality instruments like government securities, treasury bills, AAA/AA+ securities and money market instruments. The SDFS 15 months fund would have growth and dividend options. The scheme will have a minimum application amount of Rs 50,000 and in multiples of Rs 1,000 an application. There is no entry load during the NFO period. However, an exit load of 0.75% will be applicable for exit before the maturity date.

Sundaram Select Midcap To Pay 25% Dividend

Sundaram BNP Paribas Mutual Fund has come out with a dividend of 25% (Rs 2.5 per unit on the face value of Rs 10) in its open-ended equity diversified scheme - Sundaram BNP Paribas Select Midcap Fund. The investment objective of the scheme seeks to achieve capital appreciation by investing in a diversified basket of midcap stocks.
The record date for the dividend is February 9, 2007. All investors registered in the Dividend Plan of the scheme as on February 9, 2007will receive this dividend. The NAV as on February 6, 2007, under dividend option was Rs 19.19. This is the 10th dividend declared by the scheme, the last dividend declared by the scheme was 40% in October 2006. Over the last one year, Sundaram BNP Paribas Select Midcap Fund has yielded 52.1% as compared to 30.06% given by its benchmark BSE 100 as on February 6, 2007.

Reliance MF To Roll Out New Equity Fund

Reliance MF is all set to roll out a fund that will invest in the S&P CNX Nifty stocks in line with the sectoral composition of the index. The proposed Reliance Equity Advantage Fund, with retail and institutional plans, will aim at long-term capital appreciation by investing at least 70 per cent in equity and equity related securities. The fund's secondary objective is to generate consistent returns by investing in debt and money market securities. Up to 30 per cent may be allocated to debt and money market instruments. An overall limit of 100 per cent of the portfolio value - net assets, including cash - has been introduced for the purpose of equity derivatives in the fund, the offer document filed with SEBI has mentioned.
The fund, which will try to generate additional return by using various hedging techniques, has referred to India's growth model, which promises more "stable, sustainable expansion and bigger returns" for investors. It has also alluded to the possibility of investing in foreign securities. The Nifty, managed by India Index Services and Products Ltd, is made up of 50 stocks taken from 22 sectors. These stocks, according to NSE, represented over 57 per cent of the total market capitalisation as on December 29, 2006.

HDFC MF Declares Dividend In HDFC Top 200

HDFC Mutual Fund has come out with a dividend of 50% (Rs 5 per unit on the face value of Rs 10) in its HDFC Top 200 Fund, an open ended growth scheme, the objective of the scheme is to generate long term capital appreciation from a portfolio of equity and equity linked instruments primarily drawn from the companies in BSE 200 Index. The AMC has also declared a dividend of 30% (Rs 3 per unit on the face value of Rs 10) in its HDFC Capital Builder Fund an open ended growth scheme, which aims to achieve capital appreciation in the long term.
The record date for the dividends is February 7, 2007. All investors registered under the dividend option of the scheme as on February 7, 2007 will receive this dividend. Pursuant to payment of dividend, the NAV of the respective Schemes / Plans would fall to the extent of payout and statutory levy, if any. The NAV as on February 5, 2007 under dividend option of HDFC Top 200 Fund was Rs 42.90 and under the dividend option HDFC Capital Builder Fund was Rs 26.16.

Escorts Files Application With Sebi For Gold Fund

Escorts Mutual Fund has files application with the Securities and Exchange Board of India for approval to launch gold fund. Escorts Gold Exchange Traded Fund will offer returns in line with domestic price of gold by investing in physical gold as well as gold as an underlying security. The scheme also has a provision to invest up to 10 per cent of the corpus in money market securities. The open-ended scheme will list on the National Stock Exchange. Minimum application in the scheme is Rs 5,000 and in multiples of Rs 1,000 thereafter. The scheme would not levy entry load during new fund offer. On closure of the new fund offer, the scheme would charge 1% entry load. The exit fee would not exceed 0.5%.

DBS Chola MF launches a 410 Days FMP

DBS Chola MF has unveiled a 410 days FMP. The scheme has come with double indexation benefits. The details of DBS Chola FMP Series 6 (410 Days Plan) are as follows:
FMP Opens on: 5th Feb 2007 FMP Closes on: 15th Feb 2007 Indicative yield: 9.00-9.20% ** Duration of FMP: 410 Days

HDFC MF To Pay Dividends Under Two Schemes

HDFC Mutual Fund has announced dividends under the dividend plans of HDFC Capital Builder Fund and HDFC Top 200. The dividend will be 30% (Rs 3 per unit) and 50% (Rs 5 per unit) for respective schemes. The record date for the both is 7 February 2007.

Mutual Funds On Selling Spree

Mutual funds (MFs) have taken selling route on 2 February, offloading shares worth a net Rs 77.63 crore on 2 February 2007. MFs reported gross purchases worth Rs 637.20 crore, compared to gross sales aggregating to Rs 714.83 crore. The BSE Sensex finished 136.59 points higher, at 14,403.77, an all-time closing high. It had also surged to an all-time high of 14,462.77 in intra-day trade. MFs sold net shares worth Rs 1342.23 crore in January 2007. MFs net inflow from April 2006 to February 2007, as on 5 February 2007, stands at Rs 11,008.01 crore.

Despite Mutual Fund Gains, Outflows Drag On Pioneer

If running a mutual fund were merely a matter of racking up good returns, Pioneer Investments would be flying high; most of its U.S. mutual funds have significantly out-performed peers in recent years. But things aren't always so clear-cut, and when the Boston company is measured by the yardstick that matters most -- net inflows or outflows of investor dollars -- its high standing looks a bit wobbly.

Investors Need PAN To Invest In MFs

Those who are planning to invest in a mutual fund may soon require a permanent account number (PAN). The government is examining a proposal to make it mandatory to quote the PAN for mutual fund investments. Proposed on the lines of the practice for demat accounts where the investor has to quote her PAN to invest in shares, the finance ministry is now planning to introduce the eligibility condition for mutual funds as well.
Quoting the PAN would enable revenue officials track down investment details of individuals in mutual funds and the earnings in cases of tax evasion.This is being done to facilitate the Association of Mutual Funds of India (Amfi) to incorporate PAN in the mutual fund identification number (MIN). Amfi has responded positively to a finance ministry proposal stipulating all financial sector regulators and associations to use PAN as prefix or suffix in various identification numbers. Amfi launched on January 1 a programme to issue MIN to investors putting in more than Rs 50,000 in a mutual fund. The initiative has been launched under the Know Your Customer (KYC) norms. It is mandatory for a financial intermediary to keep a record of a customer for a minimum of 10 years under Prevention of Money Laundering Act. Since maintaining a record would be tedious and cumbersome for mutual funds, Amfi has proposed to set up a centralised data centre. For this, Amfi will issue MIN to an investor who will not need to submit any record to the mutual fund. At present, though MIN is applicable only for investors putting in more than Rs 50,000, the concept will be expanded to cover other investors as well.

Load Revision Under JM Money Manager Fund

With effect from 1st February 2007, the exit load structure under the Super Plus Plan of JM Money Manager Fund stands revised. Now, the fund will charge an exit load of 0.10 per cent if investment is redeemed within 7 days instead of 15 days.No change is being made in the entry load, it continues to be nil.