Reliance Growth Fund Tops The Midcap Category

The BSE-Midcap posted returns of 69.60% in the month of July 2007 (as on 20 July 2007). Out of 25 open-ended growth Midcap equity funds less than 50% funds outperformed the benchmark index. The average returns at 64.15%, posted by the funds were less the returns posted by BSE-Midcap.
Junior BeEs topped the Midcap category, posting 86.36% one-year returns as on 20 July 2007. The scheme was incepted in March 2003 and has a corpus of mere Rs 4.57 crore as on 30 June 2007. It was followed by Magnum Midcap Fund, which posted 79.87% one-year returns.

However Birla Midcap Fund and Reliance Growth Fund are gaining investor confidence as they have a low risk and high return profile. The schemes posted 79.70% and 78.11% one-year returns respectively. Reliance Growth Fund has the highest corpus of Rs 3923.90 crore as on 30 June 2007.

The chart give you a snapshot of how the mid cap mutual schemes have performed on the risk return parameters in the past. We have used the bubble analysis method to measure their performances on three parameters as risk, return and fund corpus.

The risk is measured by standard deviation, which measures the average deviation of the returns generated by a scheme from its mean returns. We have tried to explain the same with the help of a diagram, which is divided into four quadrants, with each quadrant containing schemes of a particular risk-return profile. The size of the bubble indicates the size of the fund. The schemes in the high-risk high returns quadrant follow a very aggressive approach and deliver high absolute returns compared to the peers albeit at a higher risk.

The schemes in the low-risk high returns quadrant outperform the peer group on the risk-adjusted returns basis as they deliver higher returns compared to the peers without exposing the portfolio to very high risk. The schemes in the low-risk low returns quadrant are not very aggressive and provide lower absolute returns, taking lower risks.

The schemes in the high-risk low returns quadrant underperform the peers on the risk adjusted returns basis as they adopt a high-risk strategy but the returns fail to compensate the risk taken by the fund.

Aditya Birla Nuvo Q1 Results To Boost Schemes Performance

Aditya Birla Nuvo has posted a net profit of Rs 26.46 crores for the quarter ended 30 June 2007 where as the same was at Rs 56.28 crores for the quarter ended 30 June 2006.
Scrip however declined by 11.20% to Rs 1374.60 reported at BSE closing on 30 July 2007.

Birla Taxplan 98 is likely to loose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Birla Taxplan 98 has 8.26% of its total portfolio size invested in the stocks of the company as on 30 June 2007. The scheme holds 4,515 units of the company in June 2007 compared to its peer groups who have invested in the stocks of the company.

It is followed by Franklin India Prima Fund (G) (6.32% of its portfolio size), Taurus Starshare (6.19%), Birla Equity Plan (D) (5.20%) as of June 2007.

Tata Equity P/E Funds (G) was holding 30913 units on 31 May 2007 has sold all its shares as on June 2007 and is thus less likely to benefit. Birla Sun Life Buy India Fund (G) was holding 50000 units on 31 May 2007 has sold 25001 units to 24999 units as on 30 June 2007 and is thus less likely to benefit.

MFs Do Not See Investments From PSUs

Bangalore: Mutual funds do not see navratna and mini-ratna public sector companies infusing in equity schemes immediately in a big way despite the government allowing them to infuse up to 30 per cent of their cash surplus in the equity schemes. The cabinet committee on economic affairs on July 30, said the public sector undertaking (PSU) companies can now infuse in equity schemes of the state-owned mutual funds. UTI Mutual, SBI Mutual, and BoB Mutual qualify as the state-owned mutual funds. Fund officials said normally PSU companies, being conservative in nature, would opt for short-term debt schemes such as liquid funds for their surplus cash management.
There will be more of inflows in short-term liquid funds, said State Bank of India-sponsored SBI Mutual. UTI Mutual said they will go for treasury management tools such as in liquid, fixed term plans. Liquid or cash plans are used mostly by corporate treasuries for short-term cash management as they on an average earn 7-7.5 per cent return. Companies find them attractive over zero-interest earning current accounts, also, because liquid plans do not levy an entry or exit fee. The surplus cash of PSUs is pegged at Rs 100,000-120,000 crore. PSUs were so far allowed to invest only in fixed deposits of state-owned banks and government securities. In January 2005, the finance ministry had permitted non-government provident funds and gratuity funds to deploy up to 10 per cent of the corpus in equity funds, while exposure in gilt funds was restricted to 5 per cent.

Fidelity MF Plans Five FoFs

Kolkata: Fidelity Mutual Fund has planned a feeder product, comprising of five separate FoFs (Fund of Funds), each of which will infuse in an underlying fund. Each of the underlying funds is a Fidelity sub-fund. The proposed Fidelity World Fund Range will offer the following plans: American, European, Pacific, emerging markets and international. Fidelity America Plan will invest in Fidelity Funds - America Fund, an offshore fund unveiled by Fidelity Funds.
The other underlying funds are Fidelity Funds - Emerging Markets Fund (which mainly invests in securities from Latin America, South-East Asia, Africa, Eastern Europe and West Asia), Fidelity Funds - European Growth Fund, Fidelity Funds - International Fund, Fidelity Funds; Pacific Fund (for investment in equities in countries with a Pacific sea coast, primarily Japan, South-East Asia and the US). The offer document registered with SEBI indicates that each plan will use a specific benchmark for comparing performance. For instance, Fidelity America Plan will use Standards & Poor's 500 Composite Index, Fidelity International Plan will use MSCI World Index and Fidelity Pacific Plan will use Pacific Fund Composite Index. The fund house has also planned an open-end debt fund. The proposed Fidelity Cash Plus Fund will offer retail, institutional and super-institutional plans.

ICICI Pru MF Raises Equity Exposure In Child Care Fund

ICICI Prudential Asset Management Co Ltd said on Friday ICICI Prudential Child Care Plan-Gift Plan could invest 100% of the assets in equities from August 25 as compared with 80% now. The fund will invest at least 65% of the assets in equities and the rest in debt and money market instruments. Those not willing to accept the change might exit the fund without paying any load up to August 24, the asset manager said. The fund house managed assets worth about Rs 436 billion at the end of June, data from Association of Mutual Funds in India showed.

Deutsche MF Launches New Fund Of Fund NFO Period From 31 July-28 August 2007 Name Of Fund: DWS Global Thematic Offsho

Deutsche MF launches new fund of fund called DWS Global Thematic Offshore Fund. NFO period from 31 July-28 August 2007 The primary investment objective of the scheme is to generate long-term capital growth from a diversified portfolio of units of overseas mutual funds. Asset Allocation: The fund will invest up to 80%-100%; in units / securities issued by overseas mutual funds or unit trusts and 0%-20% debt instruments including government securities, corporate debt, money market instruments (incl. cash equivalents), securitised debt and units of domestic money market mutual funds. The investment in securitised debt would be up to a maximum of 70% of the non-equity allocation of the scheme.
Fund Opens: 31 July 2007

Fund Closes: 28 August 2007

Face Value: Rs 10 with applicable entry load.

Investment Options: The scheme offers dividend and growth option. Under the dividend option the scheme offers reinvestment and payout option.

Entry Load: The scheme charge an entry load of 2.50% for investment less than Rs 5 crore. There will no entry load charged for the investment above Rs 5 crore.

Exit Load: The scheme charges an exit load of 0.50% for the investment less than Rs 5 crore, redeemed within one year of investment. The scheme charge an exit load of 0.50% for the investment above Rs 5 crore if that investment is redeemed before 6 months from investment.

Minimum Investment Amount: Rs 5, 000 and in multiple of Re 1 thereafter.

Dividend Declared In Tata Dynamic Bond Fund

Tata Mutual Fund has announced August 1, 2007 as the record date for the declaration of dividend under Option A & Option B of Tata Dynamic Bond Fund. The AMC plans to distribute entire appreciation in the NAV from July 4, 2007 to August 1, 2007 as dividend.

CanBank MF To Revise CanBalance II Scheme

CanBank Mutual Fund has proposed to amend the asset allocation pattern of CanBalance II Scheme. The proposed asset allocation pattern will be 40-75 per cent in equities and equity-related instruments with a high-risk profile and 25-60 per cent in debt and money market instruments, comprising securitised debt (with rating above AA or equivalent).

HSBC MF Launches New Dynamic Fund

HSBC Mutual Fund has launched new HSBC Dynamic Fund. NFO period from 3 August-30August 2007. The scheme objective is to provide long term capital appreciation by allocating funds in equity and equity related instruments. It also has the flexibility to move, entirely if required, into debt instruments in times that the view on equity markets seems negative.
The fund will invest up to 0%-100% in equity and equity related instruments and 0%-100% in debt and money market instruments. However investment in securitised debt will up to 30% of the corpus of the scheme.

Fund Opens: 3 August 2007

Fund Closes: 30 August 2007

Face Value: Rs 10 with applicable entry load.

Investment Options: The scheme offers dividend and growth option. Under the dividend option the scheme offers reinvestment and payout option.

Entry Load: The scheme charge an entry load of 2.50% for investment less than Rs 5 crore. There will no entry load charged for the investment above Rs 5 crore.

Exit Load: The scheme charges an exit load of 1.00% for the investment less than Rs 5 crore, redeemed within one year of investment.

Minimum Investment Amount: Rs 10,000.

ICICI Prudential Dynamic Targets To Minimize Downside Risk

Mumbai: ICICI Prudential Dynamic is a growth-oriented fund that infuses across market capitalisation and sectors with a bottom up approach of infusing. What differentiates this multi-faceted fund from other opportunity funds is that it targets to minimize downside risk by adopting a defensive strategy in a bull market. Consequently, the fund is saddled with a large corpus in cash as the market goes up. At the end of June 2007, when markets were trading at an all time high, the fund held 12.6 per cent of its assets in cash. Logically, the mandate of the fund is such that during a bull run, its gains would be capped, since a portion of its portfolio fails to participate in the market's upside. During the two recent corrections the fund lost much less than the average diversified equity fund - in the June 2006 quarter (April-June 2006), the fund lost (-) 11.21 per cent against the category's loss of (-) 13.6 per cent. For the quarter ending March 2007, the fund lost (-) 4.23 per cent compared to the category's slide of (-) 5.93 per cent. While there are other hybrid asset allocation funds functioning, none of them can hold a candle to ICICI Prudential Dynamic's truly dynamic performance.

Canbank MF Files An Offer Document

Canbank Mutual Fund has filed an offer document for CanInterval Fund. It is a debt oriented interval scheme. The new fund offering (NFO) for the scheme is Rs. 10. The fund house seeks to collect a minimum corpus of Rs. 2 crore under each scheme.
The minimum subscription amount under regular plan is Rs. 5000 and in multiple of Re 1thereafter. The minimum subscription amount under institutional plan is Rs. 50 lakh and in multiple of Re 1thereafter. CanInterval Fund offers 3 schemes to the investor's i.e. monthly interval scheme, quarterly interval scheme and annual interval scheme. The scheme further offers investors retail and institutional plan with growth option and a dividend option. The dividend option offers dividend payout and dividend reinvestment facilities. The investment objective of the scheme is to generate returns and growth of capital by investing in central and state govt. securities and other fixed income / debt securities normally maturing within the maturity of interval plan to insulate the portfolio from interest rate volatility. The scheme charges will not charge any entry load under any plan of the scheme. But there will be an exit load under different schemes of fund. Under monthly interval plan the scheme charges an exit load 0.10% if investment is redeemed at anytime other than specified transaction date / period. Under quarterly interval plan the scheme charges an exit load 0.30% if investment is redeemed at anytime other than specified transaction date / period. Under annual interval plan the scheme charges an exit load 1.00% if investment is redeemed at anytime other than specified transaction date / period. There will no exit load under any scheme if the investment is redeemed on / during specified transaction date / period.

Lotus India MF Files Offer Document

Lotus India Mutual Fund has filed an offer document for Lotus India Active Nifty-Fifty Fund. It is an open-ended equity scheme. The new fund offering (NFO) for the scheme is Rs. 10 plus applicable entry load during the NFO. The fund house seeks to collect a minimum corpus of Rs. 1 crore for the scheme. The minimum subscription amount under regular plan is Rs. 5000 and in multiple of Re 1thereafter. The scheme offers investors a growth option and a dividend option. The dividend option offers dividend payout and dividend reinvestment facilities.
The investment objective of the Scheme is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities of companies constituting S&P CNX Nifty Index. The scheme charges an entry load of 2.25% for investment less than Rs 5 crore. There will no entry load for the investment above Rs 5 crore. The scheme charges an exit load of 1.00% if the investment is redeemed on or before 6 months from the date of allotment. The exit load will come down to 0.60% if investment is redeemed on or before the expiry of 1 year from the date of allotment. There will not be any exit load for the investment redeemed after 1 year of allotment as well as for the investment above Rs 5 crore. The fund will invest 65%-100% in equity and equity related instruments of companies constituting S&P CNX Nifty with upto 50% of net asset of the scheme expose to the derivatives. The fund will invest 0%-35% in debt and money market instrument with upto 35% investment in securitised debt.

Lotus India AMC Launches Lotus India Active Income Fund

Lotus India AMC, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, announced the launch of its open-ended income scheme: Lotus India Active Income Fund. The objective is to generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instruments. Lotus India Active Income Fund - offers two plans i.e. Retail and Institutional and both plans offer two options i.e. Growth and Dividend Reinvestment. The scheme is open for subscription from 27 July 2007 and will close on 30 July 2007. The minimum application amount for Retail Plan is Rs 5000 and in multiples of Re 1 thereafter and for Institutional Plan is Rs. 50 lakhs and in multiples of Re 1 thereafter. Units will be available at Rs 10 each during the New Fund Offer (NFO). The scheme does not charge any entry load but there is an exit load of 1% on investments if redeemed on or before 180 days from the date of allotment under the Retail Plan. The scheme does not charge any exit load under the institutional plan.

Select PSUs Can Now Invest In Equity Mutual Funds

Up to 30% of surplus funds can be parked in public sector MFs . Decks have been cleared for sizeable flow of public sector surplus funds into the capital market. Public sector blue-chip companies enjoying navratna and miniratna status can now park up to 30% of their surplus funds in equity mutual funds. However, the investments would be allowed only in public sector mutual funds.
The Cabinet Committee on Economic Affairs (CCEA) on 26 July 2007 gave its nod for removing the prohibition on investment of surplus funds of navratnas and miniratnas in equity mutual funds. Currently, blue-chip PSU companies are parking their surplus funds in fixed deposits of nationalised banks, RBI bonds and treasury bills. Total surplus of central PSUs in 2005-06 was estimated at Rs 2,39,535 crore, according to public enterprises survey. Bulk of this surplus is accounted for by navratnas and miniratnas. There are currently 12 navratnas and 54 miniratnas. In May this year, the CCEA had referred the issue of allowing state-owned companies with surplus cash reserves to invest in mutual funds to a committee of secretaries.

Mutual Funds In Buying Mode In Equities

Mutual funds (MFs) bought shares worth Rs 15 crore on Thursday, 26 July 2007. They had bought shares worth a net Rs 51.60 crore on Wednesday, 25 July 2007. Mutual funds' net inflow of Rs 15 crore on 26 July 2007 was a result of gross purchases of Rs 1009.4 crore and gross sales of Rs 994.4 crore. The BSE 30-share Sensex rose 76.98 points to 15,776.31on that day. Mutual funds sold equities worth Rs 1,847.59 crore in the month of July, till 26 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

ICICI Prudential AMC Appoints Nimesh Shah As MD And CEO

The board of ICICI Prudential Asset Management Co. Ltd. announced the appointment of Nimesh Shah as Managing Director and CEO, effective 26 July 2007. Mr. Shah was Senior General Manager at ICICI Bank and has over 14 years experience in banking and financial services in the ICICI Group, including project finance, wholesale banking and international banking. He led ICICI Bank's foray into the Middle-Eastern region, where it has established itself in a range of areas including private banking, NRI services, remittances and wholesale banking. Since 2006, he has been responsible for overseeing of the Africa region in addition to the Middle-East.

Massive Campaign Planned By JM MF For Its Contra Fund

JM Financial Mutual Fund has planned an aggressive mass communication campaign for its new fund offer - the JM Contra Fund. The campaign will have a special thrust on television, which will be aired on mass national channels, regional, niche and news channels starting 25 July2007. Outdoor and print are the other media that JM mutual fund plans to use for the campaign. To that effect industry sources reveal that JM plans spends of around Rs 90 million towards the promotion of JM Contra Fund, almost three times the amount it spent during its Small and Midcap NFO a few months ago.

Weak Session For MF NAVs As Markets End In Red

It was a very weak trading session for equity diversified NAVs, which ended lower with negative advance:decline ratio of 7:173 as the markets ended in the red amid a highly volatile session. The Sensex was down 0.61% or 95.59 points at 15,699.33 and the Nifty down 0.69% at 4588.70.On the sectoral front, auto, banking, pharma and technology funds declined while FMCG funds advanced.
Long term debt funds also closed with negative returns while short term debt funds finished mixed with negative bias, advance:decline ratio stood at 14:64 and 28:31, respectively.Among the equity diversified funds, the top gainers were Escorts Growth Plan (G) up 0.14%, ICICI Pru Dynamic Plan (G) up 0.08%. The top losers were ABN AMRO Sustainable Development Fund (G) down 1.72%, Tata Equity Opportunities Fund - Plan B (G) down 1.57% and Baroda Global Fund (G) down 1.56%.Among the sector funds, the top gainers were ICICI Pru FMCG Fund (G) up 1.24%, Franklin FMCG Fund (G) up 0.80% and Birla MNC Fund (G) up 0.37%. The top losers were UTI Auto Sector Fund (G) down 1.91%, JM Auto Sector Fund (G) down 1.88% and JM Healthcare Sector Fund (G) down 1.83%.

Among the balanced funds, the top gainers were CanBalance (G) up 0.32%, Escorts Balanced Fund (G) up 0.01%. The top losers were JM Balanced Fund (G) down 1.11%, UTI Balanced Fund (G) down 1.06% and ICICI Pru Balanced Fund (G) down 0.92%.Among the tax saving funds, the only gainer was Escorts Tax Plan (G) up 0.16%. The top losers were Birla Tax Plan 98 down 1.55%, Birla Equity Plan (G) down 1.22% and ABN AMRO Tax Advantage Plan (ELSS) (G) down 1.21%.

Mutual Funds Turn Buyers In Equities

Mutual funds (MFs) bought shares worth Rs 51.60 crore on Wednesday, 25 July 2007. They had sold shares worth a net Rs 486.80 crore on Tuesday, 24 July 2007. Mutual funds' net inflow of Rs 51.60 crore on 25 July 2007 was a result of gross purchases of Rs 848.90 crore and gross sales of Rs 797.30 crore. The BSE 30-share Sensex lost 95.59 points to 15,699.33 on that day. Mutual funds sold equities worth Rs 1,862.59 crore in the month of July, till 25 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

ITC's To Benefit Various MF Schemes

Among the days top 10 gainers in the A group ITC gained 8.93% on 25 July 2007 as it closed at 165.85 compared to previous close of 152.25 on 24 July 2007. Gain in the stock prices of the company will benefit various mutual fund schemes, which have invested in the stocks of the company. Franklin FMCG Fund (G) is likely to benefit the most as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Franklin FMCG Fund (G) has 12.83% share of its portfolio invested in the stocks of the company with 2.30 lakh units in June 2007. Magnum SFU- FMCG Fund is also likely to benefit as scheme has invested 7.44% of its portfolio with 44053 units in the stocks of the company in June 2007. DWS Alpha Equity Fund (G) was holding 2.00 lakh units on 31 May 2007 has sold all shares as on June 2007 and thus less likely to benefit.

UTI Mutual Gets Approval For IPO

UTI Mutual Fund has received board approval for its initial public offer (IPO), which is expected by the end of the financial year. The AMC's IPO, the first by a mutual fund in India, would set the benchmark for the industry, sources said. the country's leading fund house held preliminary discussions with the government this week regarding the IPO and pension fund plans. Legal advisor Amarchand Mangaldas has suggested a number of options, including the formation of a holding company, which will buy the sponsors' stake, which would later be offered through the IPO. Life Insurance Corporation of India (LIC), State Bank of India, Punjab National Bank and Bank of Baroda together hold 25 per cent each in the AMC. They had bought the government's stake in the fund house in 2005 for Rs 1,236 crore. the current plan Is to dilute 50 per cent each of the sponsors' stake through the IPO, said the source. UTI MF has two subsidiaries UTI International, headquarted in London, which is into offshore funds, and UTI Ventures, headed by Raja Kumar, who manages the venture capital funds. The AMC will be setting up its third subsidiary soon to manage the pension fund. UTI AMC has close to 8.5 million customers and manages assets of over more Rs 39,000 crore. The size of the IPO is yet to be finalised, but sources said the valuation of the AMC would be close to Rs 4,000 crore. StanChart MF, which handles Rs 13,000 crore, has a valuation of Rs 516 crore. In the case of UTI AMC, the valuation will include the business of its subsidiaries and the UTI building, located in the central business area of Bandra Kurla Complex in Mumbai.

Mastek Loses 7.59% On 24 July 2007

Among the day's top 10 losers, Mastek lost 7.59% on 24 July 2007 as it closed at Rs 282.55 compared to previous close of Rs 305.75 on 23 July 2007. This loss in the stock prices of the company will detriment various mutual fund schemes, which have invested in the stocks of the company. HSBC Unique Opportunities Fund (G) is likely to lose as it has the highest percentage holding of the stock compared to other schemes which have invested in the stock. HSBC Unique Opportunities Fund (G) has 1.31% of its total portfolio size invested in Mastek end June 2007. The scheme holds 3.20 lakh shares of the company.
HSBC Equity Fund (G) is also likely to be hit as the scheme has invested 1.06% of its portfolio with 3.61 lakh shares of the company end June 2007. However, DSP ML Technology.com (G) is likely to gain as it completely exited from the stock in June 2007 compared to 0.84% holding in May 2007.

Canara Bank Dips Inspite Of Good Q1 Results

Canara Bank posted a net profit of Rs. 240.55 crore for the quarter ended 30 June 2007 as compared to Rs. 190.93 crore for the quarter ended 30 June 2006. Inspite of good Q1 results Canara Bank stocks were down 6.60% to Rs. 280.25 reported at BSE at 2.05 p.m. on 25 July 2007. The declining prices of stocks will have negative impact on the NAV s of the various mutual funds. Bank Be ES is likely to loose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Bank Be ES has 3.59% of its total portfolio size invested in the stocks of the company as on June 2007. The scheme holds 86.95 lakh units of the company in June 2007 compared to its peer groups who have invested in the stocks of the company.
It is followed by Reliance Regular Savings Fund -Equity (G)(3.37% of its portfolio size), ING Dividend Yield Fund (G) (2.10%), DBS Chola Opportunities Fund (Cumulative) (0.94%) as of June 2007. However the scheme like ING Dividend Yield Fund (G) is likely to gain to some extent as it sold 15009 units (0.63% of portfolio holding) of the company as on June 2007.

DSP Merrill Lynch MF Launches New Fund

DSP Merrill Lynch has rolled out DSP Merrill Lynch World Gold Fund and it is open-end, Fund of Funds Scheme. The fund would predominantly invest in units of Merrill Lynch International Investment Funds- World Global Fund (MLIIF- WGF). In addition to this, a significant part of its corpus would be invested in units of other similar overseas mutual fund schemes. This is the first fund to invest in gold mining companies through an international fund. The fund would invest 90 to 100% in units of MLIIF-WGF or other similar overseas mutual fund schemes and 0 to 10% in money market securities or in units of money market schemes of DSP Merrill Lynch Mutual Fund.

FMP Available In The Market

Fixed Maturity Plans are good options for investors wanting to block their money for a fixed time frame. Though the returns are not assured, investors can expect a return in tune with the current interest rate scenario. These close-ended schemes seek to generate regular returns and capital appreciation by investing in debt, government and money market securities normally maturing in line with the duration of the scheme.

Extension Of NFO Of ABN Amro Flexible Short Term Plan - Series F

ABN AMRO Mutual Fund has extended the offer period for ABN AMRO Flexible Short Term Plan-Series F by 6 days. Now; the offer would close on July 30, 2007.

Extension Of NFO Of UTI - India Lifestyle Fund

UTI Mutual Fund has extended the offer period for UTI - India Lifestyle Fund. Now; the offer would close on July 30, 2007.

Lotus India MF Announces Dividend

Lotus India Mutual Fund has announced the declaration of dividend under the dividend option of Lotus India Fixed Maturity Plan - 3 Months - Series VI. The fund house has notified 25 July 2007 as the record date for the purpose of declaring dividend.
The dividend is being declared on a face value of Rs. 10/- per unit. NAV of Dividend option as on 18 July 2007 for the Retail Plan was Rs. 10.2379 and for the Institutional Plan Rs. 10.2379.

Lotus India Fixed Maturity Plan 3 Months Series VI is a close-ended debt scheme that seeks to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.

ING Mutual Fund Launches Close-Ended Bond Scheme

ING Mutual Fund has rolled out a close-ended bond scheme, ING Fixed Maturity Fund Series XXVIII. The new fund offer opens on July 24 and closes on July 27. The minimum application amount is Rs 5,000. The fund provides dividend option, bonus option & growth option.ING Fixed Maturity Fund Series XXVIII is a close-ended scheme investing in a portfolio of government securities or highly rated corporate bonds maturing close to the maturity of the scheme - 367 days - so as to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimise the impact of price fluctuation of such securities and the value at maturity.

Mutual Funds In Selling Mode

Mutual funds (MFs) sold shares worth Rs 48.50 crore on Monday, 23 July 2007. They had sold shares worth a net Rs 316.80 crore on Friday, 20 July 2007. Mutual funds' net outflow of Rs 48.50 crore on 23 July 2007 was a result of gross purchases of Rs 562.10 crore and gross sales of Rs 610.60 crore. The BSE 30-share Sensex surged 166.65 points or 1.07% to 15,732.20, an all time closing high on that day.
Mutual funds sold equities worth Rs 1427.70 crore in the first few days of July, till 23 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

Canbank Rolls Out New FMP

Canbank announced the launch of its close-ended debt scheme: Can FMP Series 1 M -Series II. The primary objective is to generate returns by investing in fixed income debt securities, the maturity of which would be in tune with the maturity of the respective plans so as to insulate the portfolio from the interest rate volatility, if investors remain in the scheme till maturity. The NFO opened on 12 July 2007 and it will closing on 24 July 2007.
Can FMP Series 1 M- Series II offer two plans i.e. growth and dividend payout. The minimum application amount for Retail plan is Rs 5000 and in multiples of Re 1 thereafter. The issue price is set as Rs. 10.

Introduction Of More Options Under JM Basic Fund

Effective July 23, 2007, JM Mutual has introduced growth and dividend option for investors under JM Basic Fund. The dividend plan will also offer payout and reinvestment options.

LIC MF Launches Another New FMP

LIC Mutual Fund has launched another fixed maturity plan (FMP) with following details. Name of Fund: LIC Mutual Fund Fixed Maturity Plan Series 27

Scheme: Close ended Income Scheme

Plans: It will mature after 3 months, which is called 3 months plan.

Objective: The scheme aims to minimize interest rate risk by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the Scheme.

Asset Allocation: Under 3 months plan the fund would invest upto 100% in debt instruments having residual maturity of more than 3 months. It can also invest upto 100% in money market instruments. Investment in debt instruments includes securitised debt upto 40%.

Kotak FMP 3M Series 16 Declares Dividend

Kotak Mutual Fund has announced 26 July 2007 as the record date for the declaration of dividend under Kotak FMP 3M Series 16. The AMC plans to distribute entire appreciation in the NAV as dividend.

Canbank MF Declares Dividend

Canbank Mutual Fund has announced dividend in following schemes:

Date of dividend: 20/07/07

Date of dividend for 20/07/07

DIVIDEND DECLARATION

DAILY DIVIDEND RE- WEEKLY DIVIDEND INVEST PLAN PLAN CANLIQUID- INSTITUTIONAL PLAN 0.00101305 N.A CANLIQUID- RETAIL PLAN 0.00101305 N.A. CANFLOATING RATE 0.00116891 N.A

Bank Of India Ties Up With ING Investment For MF Distribution

ING Mutual Fund belonging to ING Investment, world’s largest financial services provider has entered into a strategic alliance with Bank of India to distribute its mutual fund (MF) products.

Bank of India is targeting a fee-based income of Rs 1 billion during the current fiscal. The bank has taken various initiatives towards this objective and the tie-up with ING investment is a step forward. The bank had previously tied up with three other mutual funds.

Principal Global Opportunities Fund Revises Load

Effective 23 July 2007, Principal Mutual Fund has modified the entry load under Principal Global Opportunities Fund. Now the fund would be charging an entry load of 2.50% for investment less than 5 crore. No change has been made in the exit load.

JP Morgan MF Files Offer Document

JP Morgan Mutual Fund has filed an offer document for JP Morgan India Liquid Plus Fund. It is an open-ended income fund. The new fund offering (NFO) for the scheme is Rs. 10. The fund house seeks to collect a minimum corpus of Rs. 1 crore for the scheme.
The minimum subscription amount under regular plan is Rs. 25,000 and in multiple of Rs. 100 thereafter. The scheme offers investors a growth option and a dividend option. The dividend option offers dividend payout and dividend reinvestment facilities.

The investment objective is to provide liquidity and optimal returns to the investors by investing primarily in a mix of short term debt and money market instruments which results in a portfolio having marginally higher maturity and moderately higher credit risk as compared to a liquid fund at the same time maintaining a balance between safety and liquidity.

The scheme does not charge any entry as well as exit load for the scheme.

The fund will invest 0-100% in money market and debt related instruments with maturity/ average maturity/interest rate reset not greater than 1 year and 0-30% in debt instruments with maturity greater than 1 year but less than 3 years. Debt instruments may include securitised debt (excluding foreign securitised debt) up to 50% of the net assets.

ICICI Prudential Services Industries Fund One Of The Top Diversified Funds

The BSE-Sensex posted returns of 43.4% in the month of July 2007 (as on 16 July 2007). Out of 135 growth Diversified equity funds only 83 schemes outperformed the benchmark index. The average returns at 48.2%, posted by the funds outperformed the BSE-Sensex.
JM Basic Fund topped the Diversified category, posting 89.5% one-year returns as on 16 July 2007. The scheme was incepted in June 1997 and has a corpus of Rs 150.63 crore as on 30 June 2007. It was followed by Stan Chart Premier Equity Fund, which posted 85.0% one-year returns.

However ICICI Prudential Services Industries Fund is gaining investor confidence as it has a low risk and high return profile. The scheme posted 82.1% one-year returns. HDFC Equity Fund with the highest corpus recorded 49.5% one year returns.

The chart give you a snapshot of how the mid cap mutual schemes have performed on the risk return parameters in the past. We have used the bubble analysis method to measure their performances on three parameters as risk, return and fund corpus.

The risk is measured by standard deviation, which measures the average deviation of the returns generated by a scheme from its mean returns. We have tried to explain the same with the help of a diagram, which is divided into four quadrants, with each quadrant containing schemes of a particular risk-return profile. The size of the bubble indicates the size of the fund. The schemes in the high-risk high returns quadrant follow a very aggressive approach and deliver high absolute returns compared to the peers albeit at a higher risk.

The schemes in the low-risk high returns quadrant outperform the peer group on the risk-adjusted returns basis as they deliver higher returns compared to the peers without exposing the portfolio to very high risk. The schemes in the low-risk low returns quadrant are not very aggressive and provide lower absolute returns, taking lower risks.

The schemes in the high-risk low returns quadrant underperform the peers on the risk adjusted returns basis as they adopt a high-risk strategy but the returns fail to compensate the risk taken by the fund.

Neyveli Takes A Lead

Among the days top 10 gainers in the A group Neyveli Lignite gained 17.09% on 19 July 2007 as it closed at 78.45 compared to previous close of 67.00 on 18 July 2007. The stock rose on the eve of its Q1 June 2007 results which are due today on 20 July 2007. This gain in the stock prices of the company will benefit various mutual fund schemes, which have invested in the stocks of the company.
Tata Dividend Yield Fund (G) is likely to benefit the most as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Tata Dividend Yield Fund (G) has 3.36% share of its portfolio invested in the stocks of the company with 8.30 lakh units in June 2007.

Kotak Equity Arbitrage Fund (G) is also likely to benefit as scheme has invested 1.68% of its portfolio with 88500 units in the stocks of the company in June 2007. However, scheme sold 0.59% of its portfolio as on June 2007.

Taurus Discovery stock is also likely to loose as scheme sold 0.28% of its portfolio as on June 2007 compared to 0.36% in May 2007 followed by J.M. Arbitrage Advantage Fund (G) (0.1%) as on June 2007.

Mastek Looses 7.71% On 19 July 2007

Among the day’s top 10 losers Mastek lost 7.71% on 19 July 2007 as it closed at 326.35 compared to previous close of 353.60 on 18 July 2007. This loss in the stock prices of the company will detriment various mutual fund schemes, which have invested in the stocks of the company.
HSBC Unique Opportunities Fund (G) is likely to lose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. HSBC Unique Opportunities Fund (G) has 1.31% of its total portfolio size invested in the stocks of the company as on June 2007. The scheme holds 3.20 lakh units of the company in June 2007 compared to its peer groups who have invested in the stocks of the company.

HSBC Equity Fund (G) is also likely to loose as scheme holds 1.06% of its portfolio with 3.61 lakh units of the company as on June 2007.

However the scheme like DSP ML Technology.com (G) is likely to gain as it completely exited from the stocks of the company in June 2007 compared to 0.84% in May 2007.

SBI MF Launches Short Horizon Fund

Mumbai: SBI Mutual Fund has unveiled SBI Short Horizon Fund, an open-ended income scheme with two options liquid plus fund and short-term fund. The fund has been rated 'AAAf' by Crisil. 0-35 per cent will be infused in debt securities with maturity more than one year, including derivatives, and up to 20 per cent of the investment in debt securities in securitised debt. The short-term fund will generate regular income where 65-100 per cent of the portfolio will be invested in debt securities including derivatives, of which, up to 50 per cent will be invested in securitised debt. The short-term fund will be benchmarked against the Crisil Short Term Bond Fund Index. The new fund offer opened on July 19 and closes on July 26.

Tata AMC With Mizuho Bank

Mizuho Bank - Japan's second largest commercial bank - has recently adopted the feeder fund to the offshore fund of Tata Asset Management for channeling investments of its customers into India. This is the only fund dedicated to India that will be sold by the second largest bank network in Japan.
This is an important recognition of the fund management capabilities of Tata Asset Management, who were chosen ahead of many competing global fund managers. This also signifies India's emergence as a preferred investment destination among retail investors in the developed world.

The offshore fund managed by Tata Asset Management has witnessed increasing investment interest among Japanese investors. Over 30,000 Japanese investors have invested roughly $700 million into the offshore fund.

Tata Asset Management is a leading player in the mutual fund arena and offers a wide array of products across the risk-reward spectrum for every financial need at various life-stages. Tata Mutual Fund currently manages over $4.4 billion as on June 30, 2007 with an investor base of over 1.2 million across the country.

60 Days Fund Under SBI Debt Fund Series

SBI Mutual Fund has announced the NFO under SBI Debt Fund Series which is a 60 days fund. This offer is open from 19 July 2007 to 23 July 2007.The minimum investment in the SDFS- 60 days fund is Rs 50, 000 and this fund has growth and dividend options. The fund would charge an exit load of 1% if investment is redeemed before the maturity date.

Sundaram BNP Paribas Launches New Fund

Sundaram BNP Paribas Mutual Fund has come out with a capital-protection fund with a slight difference, that it will offer only the growth option.
Name of Fund: Sundaram BNP Paribas Capital Protection Oriented Fund. Scheme: Closed-end, Hybrid Debt Oriented Scheme with capital protection feature. Plans: 3 Year and 5 Year.

DBS Chola Freedom Income Short Term Fund Is AAAF Rated

DBS Chola Freedom Income Short term Fund that come under the category of liquid plus fund has got rating of AAAF by Crisil. The asset under management (AUM) in the fund is Rs. 1200 crores as on 18 July 2007 and the fund is performing consistently. The NAV for DBS Chola Freedom Income Short term Fund institutional plan cumulative option is Rs. 12.26 as on 15 July 2007. The NAV for DBS Chola Freedom Income Short term Fund regular plan cumulative option is Rs. 12.12 as on 15 July 2007.

Lotus India MF Files Another Offer Document

Lotus India Asset Management Company (AMC), a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, has filed an offer document for Lotus India Mid and Small Cap Fund, a 3 years close-ended equity scheme. The NFO price for the fund will be Rs 10 per unit. The fund seeks to collect a minimum corpus of Rs 1 crore for the scheme. The scheme does not charge any entry load or exit load for the scheme.
The investment objective of the scheme is to provide long-term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of companies across the entire market capitalization. However there can be no assurance that the fund’s objective will be achieved.

The scheme offers two options i.e. growth and dividend. The dividend option offers dividend payout or dividend re-investment facility. The minimum application amount under is Rs.5,000 and in multiples of Re.1 thereafter. The fund manager for the scheme is Mr. Tridib Pathak

The fund will invest 65-100% in equity and equity related instruments and 0-35% in debt and money market instruments. Debt instruments may include securitised debt (excluding foreign securitised debt) up to 35% of the net assets.

Franklin Templeton MF Declares Dividend

Franklin Templeton Mutual Fund has announced 23 July 2007 as the record date for the declaration of dividend under Templeton Quarterly Interval Plan - Plan A. The AMC plans to distribute entire appreciation in the NAV as dividend.

Now, Fund Houses Also Selling PAN Cards

Fund houses are now selling PAN cards along with Mutual Funds to rope in investors turned off by mandatory PAN requirements. They go together now. The PAN card and the NFO application. And fund houses are selling them together. This month, SEBI made a PAN card or application proof mandatory for Mutual Fund investments. Since then, retail investments have fallen 40 to 50%. Fund houses like Reliance, SBI, JM Financial and others have begun to provide customers with PAN card application forms along with
Mutual Fund forms. They have also tied up with Karvy, UTI Securities and Bajaj Capital to speed up the process. Surajit Mishra, Senior Vice President, Bajaj Capital said, "The AMCs have taken the initiative to partner with us to facilitate many investors to come to our branches wherever they are facing a query of PAN card. We offer them the entire service of filling up the applications, providing the form 49a, the appropriate ticket which is to be filed with the form and depositing with the concerned authority for processing."Reliance Mutual Funds, India's largest fund house, had retail investments fall by half since July 2 when SEBI issued the ruling. It's now hiring photographers and PAN card agents. That's at no cost to the customer.

Mutual Funds In Selling Mode In Equities

Mutual funds (MFs) sold shares worth Rs 103 crore on Tuesday, 17 July 2007. They had sold shares worth a net Rs 371.90 crore on Monday, 16 July 2007.
Mutual funds' net outflow of Rs 103 crore on 17 July 2007 was a result of gross purchases of Rs 803.50 crore and gross sales Rs 906.50 crore. The BSE 30-share Sensex lost 21.40 points or 0.14% at 15,289.82 on that day.

Mutual funds sold equities worth Rs 1017.9 crore in the first few days of July, till 17 July 2007.

Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

142 Equity Schemes Outperforms The Sensex

Equity mutual funds as a class posted an average return of 47.80%, out performing the Sensex return of 43.39%, over the one-year period ended 16 July 2007. Of the 242 equity schemes, 105 exceeded the category average of 47.80% in the one-year period, while 142 outperformed the Sensex that posted 43.39%. The topper was Bank Be ES with 96.14% return.
In the equity category, the Midcap and diversified categories outperformed, giving a category average of 52.88% and 48.16%, respectively.

In the equity diversified category, out of the 135 schemes, 61 exceeded the category average of 48.16%, while 83 outperformed the Sensex. JM Basic Fund Fund clinched the first position, with 89.49% return, followed by Stan Chart Premier Equity Fund (G), with 85.04% return.

In the mid-cap segment, Junior Be ES remained the topper, with 75.21% return, exceeding the category average of 52.88%, followed by Birla Mid Cap Fund (G) with 68.62% return. 7 schemes out of 25 outperformed the CNX Midcap index, with 61.48% return.

Pru ICICI FMCG Fund (G) was the topper in the FMCG category, with 30.30% return, outperforming the category average of 12.72% and out performing the BSE FMCG index of 6.06% returns that posted negative returns.

In the tax-planning category, of the 29 schemes, 12 outperformed the category average of 46.65% Principal Personal Tax Saver Fund (G) Scheme, with 78.22% return, clinched the top position.

In the pharma segment, of the five schemes, one exceeded the category average of 38.02%. Reliance Pharma Fund (G) was the only scheme posted 74.79% return. It also, exceeded Sensex return of 43.39%.

Among the index funds, 11 of the 26 schemes exceeded the category average of 43.22%. Bank BeES topped the category with 96.14% return, followed by Nifty Be ES with 46.41% returns.

In the IT category, four of the seven schemes outperformed the category average of 52.34%, while six exceeded the CNX IT return of 24.82%. DSP ML Technology.com (G) was the topper, with 89.75% return, followed by ICICI Pru Technology Fund(G), with 69.55% return. Six schemes exceeded the BSE Infotech index, which gave 23.22% return.

Among the Fixed Maturity Plan, 6 of the 29 schemes exceeded the category average of 9.33%. FT FTF-Series1-60 Mth (G) topped the category with 18.56% return, followed by FT FTF – Series II – 60 Mth (G) with 18.42% return.

ICICI Prudential AMC CEO Resigns

Mumbai: The CEO and MD of ICICI Prudential AMC, Mr Pankaj Razdan and AMC's non-executive and non whole-time Director, Mr Ajay Srinivasan, have resigned form the company. The board of the AMC has named its Chief Investment Officer, Mr Nilesh Shah, as the Deputy Managing Director and CIO.

MFs Launch Slew Of Infra Funds Ahead Of Sebi's Norms

The Mutual Fund (MF) industry have lined up to offer infrastructure dedicated funds as Sebi appointed special committee on the infrastructure dedicated funds is expected to submit its final report by the end of this month.
After the successful debut of SBI infrastructure fund series - I, some more fund houses also have filed their prospectus with the regulator. Kotak Mutual Fund has filed its prospectus with Sebi to offer infrastructure fund.

Another fund house Tata Mutual already has an infrastructure fund. Now, it plans to offer a global infrastructure fund which will invest in infrastructure companies in India and abroad. MFs have already been launching such funds prior to the appointment of the Sebi panel.

SBI infrastructure fund series - I has made its debut this week at a net asset value (NAV) of Rs 10.11 per unit. The new fund offering (NFO), which closed on 11 June 2007, has mopped up Rs 2,536 crore from 6.7 lakh applicants.

The infrastructure funds would primarily focus on diversified basket of equity stocks of companies that are directly or indirectly involved in the infrastructure growth and in debt and money market instruments.

The infrasturucture funds proposes to harness the investment opportunity in the infrastructure sector from the proposed spending of over Rs 14 lakh crore in the 11th five-year plan by the Union government. The infrastructure sector mainly includes roads, power and railways.

Sebi has appointed a committee on infrastructure-dedicated funds in March following the announcement of Union finance minister in this year's budget that MFs can offer infrastructure dedicated funds for which the regulator will formulate a broad guidelines.

The three-member committee headed by UK Sinha, CMD, UTI Mutual Fund, has already met several times to finalise the guidelines. And, the committee is expected to submit its final report by the end of this month.

Mutual Funds Turn Sellers In Equities

Mutual funds (MFs) sold shares worth Rs 371.90 crore on Monday, 16 July 2007. They had bought shares worth a net Rs 295.40 crore on Friday, 13 July 2007. Mutual funds' net outflow of Rs 371.90 crore on 16 July 2007 was a result of gross purchases of Rs 558.20 crore and gross sales Rs 930.10 crore. The 30-share BSE Sensex gained 38.50 points, or 0.25%, to 15,311.22, an all time closing high on that day. Mutual funds sold equities worth Rs 915.20 crore in the first few days of July, till 16 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

Siemens Looses 7.67% On 16 July 2007

Among the day’s top 10 losers Siemens lost 7.67% on 16 July 2007 as it closed at 1345.55 compared to previous close of 1457.40 on 16 July 2007. This loss in the stock prices of the company will detriment various mutual fund schemes, which have invested in the stocks of the company.
BOB Balance (G) is likely to lose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. BOB Balance (G) has 31.56% of its total portfolio size invested in the stocks of the company as on June 2007. The scheme holds 2185 units of the company in June 2007 compared to its peer groups who have invested in the stocks of the company.

BOB LSS’ 97 is also likely to loose as scheme holds 22.13% of its portfolio with 5000 shares of the company as on June 2007.

However the scheme like Tata Tax Saving Fund (G) is likely to gain as it completely exited from the stocks of the company in June 2007 compared to 2.51% in May 2007.

Gujarat Narmada Valley Fertilisers Takes A Lead

Among the days top 10 gainers in the A group Guj Narmada gained 5.50% on 17 July 2007 as it closed at 137.15 compared to previous close of 130.00 on 16 July 2007. This gain in the stock prices of the company will benefit various mutual fund schemes, which have invested in the stocks of the company.
Magnum Comma Fund is likely to benefit the most as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. Magnum Comma Fund has 3.78% share of its portfolio invested in the stocks of the company with 14.68 lakh units in June 2007.

Tata Contra Fund (G) is also likely to benefit as scheme has invested 3.30% of its portfolio with 4.90 lakhunits in the stocks of the company in June 2007.

Lotus India Arbitrage Fund is likely to loose as scheme sold 0.65% of companies stock nearly 25 units of the company in June 2007. Followed by ING Dividend Yield Fund (G) (0.53%) and Sundaram BNP Paribus Rural India Fund (G) as on June 2007.

Kotak Mahindra MF Declares Dividend

Kotak Mahindra Mutual Fund has announced a dividend of 30% (i.e. Rs 3 per unit on the face value of Rs 10) under the dividend option of Kotak 30. The record date for the dividend has been fixed as 20 July 2007.This is the tenth dividend payout from the fund. Prior to this, the fund had declared a 55 % dividend in December 2006. The scheme launched with an objective to generate capital appreciation from a portfolio of predominantly equity and equity related securities with investment in generally not more than 30 stocks.

Mutual Funds In Buying Mode In Equities

Mutual funds (MFs) bought shares worth Rs 291.30 crore on Friday, 13 July 2007. They had bought shares worth a net Rs 116.80 crore on Thursday 12 July 2007.
Mutual funds' net inflow of Rs 291.30 crore on 13 July 2007 was a result of gross purchases of Rs 1218.80 crore and gross sales Rs 927.50 crore. The 30-share BSE Sensex surged 180.68 points to 15,272.72, an all-time closing high on that day.

Mutual funds sold equities worth Rs 548.30 crore in the first few days of July, till 13 July 2007.

Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

ICICI Prudential Derivatives Succeeds In Converting High Volatility In Equity Mkt

Mumbai: Buy low, sell high. With this strategy, ICICI-Prudential's Equity and Derivatives Fund Wealth Optimizer Plan has succeeded in converting the high volatility in the equity markets to its advantage. This strategy has assisted the fund to act like a parachute in a falling market. On the flipside, however, the fund will under perform the benchmark indices in a fast-rising market. When the benchmark indices fell 15 per cent in the February-March period this year, the fund's damage was limited to 5.8 per cent.
Currently, the Sensex is over 15,000-mark and the hedge ratio is 30 per cent, which is the maximum it has hedged since its launch. The fund has been altering the hedge ratio at different market levels. Hedge ratio is decreased in an attractive market to capture the upside and it is enhanced in an expensive market to protect the downside. The hedge ratio is based on a mix of quantitative and qualitative factors such as forward P/E ratio of the index, risk-free rate of return, equity risk premium and even market sentiments.

Equity & Derivatives Fund by ICICI Prudential was one of the first derivatives-based mutual funds which hit the market after the Sebi permitted fund houses to use derivatives for hedging against risk and portfolio rebalancing, last year. Under the rules, fund houses can hedge for potential losses from cash positions by derivatives products. The scheme, which collected Rs 1,140 crore via its new fund offer (NFO) last December, has grown to Rs 1,181 crore now. The ICICI-Pru scheme, which is benchmarked against Crisil Balanced FundIndex, also applies the golden rule of selecting stocks which have strong fundamentals.

ICICI Prudential FMCG Fund Recommends 20%

The trustees of ICICI Prudential FMCG Fund have approved July 20, 2007 as the record date for declaration of 20% (Rs.2.00) dividend under the dividend option of the scheme. Accordingly, dividend will be paid to all the Investors/unitholders whose names appear on the Register of unitholders of the schemes, at the close of business on July 20, 2007 subject to availability of distributable surplus under the scheme. Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of dividend payout and statutory levy if any. Past performance may or may not be sustained in the future and should not be used as a basis of comparison with other investments.The Net Asset Value (NAV) of the fund was Rs.34.62 as on 16-Jul-2007. Mutual Funds and securities investments are subject to market risks. Please read the Offer Documents/ Addendums of the Schemes carefully before investing.

ICICI Prudential Emerging STAR Fund Recommends 25%

The trustees of ICICI Prudential Emerging STAR (Stocks Targeted At Returns) Fund have approved July 20, 2007 as the record date for declaration of 25% (Rs.2.50) dividend under the dividend option of the scheme.
Accordingly, dividend will be paid to all the Investors/unitholders whose names appear on the Register of unitholders of the schemes, at the close of business on July 20, 2007 subject to availability of distributable surplus under the scheme.

Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of dividend payout and statutory levy if any. Past performance may or may not be sustained in the future and should not be used as a basis of comparison with other investments. The Net Asset Value (NAV) of the fund was Rs.24.66 as on 16-Jul-2007. Mutual Funds and securities investments are subject to market risks. Please read the Offer Documents/ Addendums of the Schemes carefully before investing.

JM Financial To Expand Its MF Business

Nimesh Kampani ended his partnership with Morgan Stanley and got a pile of cash in return. He is using that cash to build a finance powerhouse from scratch. He has already bought into ASK Securities and got a foothold in equity research and trading and now he is going to boost his mutual fund business. "We will invest more in mutual fund business. We are targeting (funds) have Rs 5,000 crore equity assets," said Nimesh Kampani, Chairman, JM Financial. Things are changing at JM Mutual Fund, Sandip Sabharwal the star fund manager who turned around SBI's mutual funds has joined Kampani as chief investment officer and JM's performance has improved in just six months.
JM Basic is now the best performing fund in the six-month period with 81 per cent returns. Other equity schemes are also doing well. Investors are taking note of this performance, the equity assets under management (AUM) has grown from Rs 150 crore in January this year to over Rs 800 crore. JM is also looking at launching new schemes and is looking at merging some of the old schemes. "We are restructuring our scheme portfolio, reduced the number of scrip and have started taking concentrated bet and that is yielding results," said Sandip Sabharwal CIO, JM Financial. JM Mutual Fund is trying to change its focus and wants to emerge as a fund powerhouse. The entry of Sarbharwal as head of fund management will fit into Kampani's strategy.

Mutuals See Dip In Net Inflow

Net inflows into equity-oriented mutual funds have slumped over the last seven months while the sensex surged over 1,000 points. The net inflows dipped around 73 per cent to Rs 8,000 crore from Rs 29,000 crore in the year-ago period.
According to industry estimates, Rs 45,000 crore have been invested in the January-June period against Rs 65,000 crore during the same period a year ago.

The market moved up from 9900 points to about 10600 points during the January-June period in 2006, touching 12000 points midway. This year, the market was at 14000 points in January and reached about 14600 in June, falling to about 12900 in February.

While there is no significant difference in the sensex's growth trend this year, the equity-oriented mutual funds could not register inflows similar to those of the year-ago period.

"There has been a recent slowdown in the industry. We will attribute this mainly to a lack of investor education and the introduction of mandatory PAN by the Securities and Exchange Board of India (Sebi). Small investors, especially in tier-II and tier-III cities, have been worst hit by the PAN norm. We have requested Sebi to implement the PAN norm in a phased manner," Amfi chairman A.P. Kurian told The Telegraph.

According to Value Research Online CEO Dhirendra Kumar, the dip in the inflows is mainly because of sporadic movements in the market this year.

"Although the market has rallied by almost 1000 points, the growth has not been steady. Fresh investments are generated from new fund offers (NFOs). Unlike this year, there were quite a few good NFOs, which contributed to the inflows last year," Kumar said.

"The year 2006 saw a large collection through NFOs such as Reliance Equity, Fidelity Special Situations, ICICI Pru Fusion, Kotak Lifestyle and Principal Infrastructure & Services Industries Fund. Investors were confident and bullish last year," said Vijay Kumar Goel at Motilal Oswal Financial Services.

JM Financial, Lok Capital To Infuse In Spandana

Hyderabad: JM Financial India Fund, a private equity fund sponsored by JM Financial Limited and Old Lane Partners LP, and Lok Capital, a Mauritius-based microfinance venture capital fund, have inked deals with Spandana microfinance institution to pump in Rs 40 crore and $ 2.25 million (about Rs 9.2 crore) respectively. Spandana, which operates in five states via 330 branches, proposes to use the investments to expand its branch network and pursue growth opportunities both organically and via acquisitions.

Trading, IPO & MF Transactions Major Biz For Stockbrokers

Kolkata: Stockbrokers are morphing. A whopping 67 per cent of offer IPOs and a compelling 53 per cent offer mutual fund transactions. Data such as these form part of a survey by Dun & Bradstreet (D&B), the organisation that has just rolled out its maiden study of India's equity broking houses. Trading, IPOs and MFs happen to be the top three products that they provide their clients. Nearly 36 per cent of the companies surveyed trade in cash and derivatives, while 27 per cent are solely in the cash market. About 20 per cent trade in cash, derivatives and commodities. Some of the other major products that brokers are offering are Internet-based trading, depository services, corporate research and arbitrage.
Company research is another lucrative proposition for brokers.. Further, value-added services, including fundamental and technical analysis as well as investment banking, are also provided by some. In the past few years, brokers have newer opportunities in the form of commodities futures, distribution of insurance products, wealth management etc. The western region, however, does clearly score over the others in terms of sheer geographical spread. A high 52 per cent of the nearly 400 firms sampled are there, the maximum representation. The north, south and east account for 24 per cent, 13 per cent and 10 per cent respectively.

The country's broking community seems to have took advantage on the growth of the asset management industry, D&B has commented while referring to the growth trends displayed by fund houses. More than 50 per cent of the brokers sampled deal in MF investment services. The average growth in assets under management in the last two years is roughly 48 per cent. In terms of providing MF services, the western region dominates the scene with 49 per cent of the total.

ING FMP Series XXIX And XXV Garner Rs 458 crore

ING Mutual Fund has garnered Rs 458 crore in its recently launched ING Fixed Maturity Fund - Series XXIX (FMP-29) & ING Fixed Maturity Fund -Series XXV (FMP-25). FMP - Series XXIX scheme was opened for subscription between 25 June -28 June 2007. ING Mutual Fund total assets under management (AUM) under various schemes have been consistently over the Rs. 5000 crore marks with Rs. 5346.13 crore in June 2007.

ING Fixed Maturity Fund - Series XXIX and series XXV are close-ended schemes offering an investment plan of 91 days maturity, investing in a portfolio of government securities or highly rated corporate bonds maturing close to the maturity of the scheme so as to generate returns comparable with alternative fixed-income instruments of similar maturity. The schemes will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimize the impact of price fluctuation of such securities and the value at maturity.

The schemes shall invest up to 100% in Debt securities and Money market instruments including call money (as and when permitted by RBI) and reverse repo. Debt securities may include securitised debt up to 90% of the net assets. Investments in Derivatives Instruments shall be to a maximum of 50% of the Net Assets of the Scheme.

Reliance MF Revises Its Offer Document

Reliance Mutual Fund announced that the fund has removed the criterion of minimum investment of Rs 5,000 for all inter-plan, inter-option switches within the retail plan of Reliance Liquid Fund - Treasury Plan - Retail Plan. Now the unit holders can switch any amount for all inter-plan, inter- option switches. The changes will came in to effect from 13 July 2007. Reliance Liquid Fund aims at generating returns by investing in debt and money market instruments.

Morgan Stanley Invests 15% in IHHR

Funds are pouring into India's hospitality space like never before and now its none other than Morgan Stanley. It has decided to invest in the company that owns Ananda Spa, which may just help the company tap the capital markets in a couple of years.

Morgan Stanley is now investing 15 per cent in IHHR, the parent company with an aim to take it to the markets in a couple of years from now. That's not all. For the company the success story will lie beyond wellness and that's why its targeting business hotels to expand its footprint in Delhi, Hyderabad, Pune and hopes to have nine properties under the Ista brand over the next three years.

However, Morgan Stanley is not alone. Warburg Pincus picked up 27 per cent stake in Delhi-based Lemon Tree Hotels for Rs 280 crore, Isthithmar is in a Rs 450-crore JV with Europe's EasyGroup, while ICICI Venture Funds got a stake in Viceroy Hotels for Rs 100 crore.

So for the group headed by Ashok Khanna, while the Ananda story will not dot city landscape, he will turn his Ista business hotel brands into the profit machine. With international PE funds including Blackstone, ChrysCapital and Trikona evaluating deals for investing in the hospitality sector, funding will not be a problem for now.

Franklin MF Declares Dividend

Franklin Templeton Investments (India) Mutual Fund has announced dividend under the dividend option of Franklin India Prima Fund. The dividend declared is 60% i.e. Rs. 6 per unit on the face value of Rs. 10. Franklin India Prima Fund is open-end diversified equity fund. The record date for dividend is 18 July 2007.

The scheme aims to provide long-term capital appreciation as primary objective and income as primary objective and income as secondary objective. The fund aims to achieve a high degree of capital appreciation through investments in smaller and faster growing companies. The NAV recorded at Rs. 230.83 on 11 July 2007.

Franklin India Prima Fund was launched in December 1993 and currently manages over Rs.1596 crores of assets for over 168,000 investors. The last dividend declared by the scheme was 60% in July 2006. Over the last one year, Franklin India Prima Fund has yielded 43% as compared to 41.5% given by its benchmark S&P CNX 500 as on 11 July 2007.

SBI Infrastructure Fund NFO Raised Rs. 2,536 Crore

SBI MF has collected Rs. 2,536 crore from SBI Infrastructure Fund Series- I whose subscription closed on 11 June 2007. The scheme received an overwhelming 6.7-lakh applications during the NFO period. The scheme launched would primarily focus on diversified basket of equity stocks of companies that are directly or indirectly involved in the infrastructure growth and in debt and money market instruments.

After the successful debut of SBI infrastructure fund series - I, some more fund houses like Kotak Mutual Fund have filed their prospectus with the SEBI. Tata mutual that already has an infrastructure fund plans to offer a global infrastructure fund that will invest in infrastructure companies in India and abroad.

Mutual Funds In Selling Mode In Equities

Mutual funds (MFs) sold shares worth Rs 332.20 crore on Wednesday 11 July 2007. They had sold shares worth a net Rs 167.80 crore on Tuesday 10 July 2007. Mutual funds' net outflow of Rs 332.20 crore on 11 July 2007 was a result of gross purchases of Rs 607.30 crore and gross sales Rs 939.50 crore. The BSE 30-share lost 99.26 points to 14,910.62 on that day.
Mutual funds sold equities worth Rs 957.20 crore in the first few days of July, till 11 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

SBI Mutual''s FMPs Get ''AAAf'' Ratings From Crisil

Kolkata: Crisil has earmarked its first-ever ratings in India for long-term fixed maturity plans (FMPs). Ratings of ''AAAf'' have been assigned to nine long-term FMPs proposed to be rolled out under the SBI Debt Fund Series. The rating agency has also assigned ''P1+f'' ratings to 18 short-term FMPs under the same series. The ratings indicate that SBI Debt Fund Series'' proposed portfolio holdings provide very strong protection against losses from credit default. The ratings are not an opinion on SBI MF''s willingness or ability to make timely payments to investors. These are also not an opinion on the stability of the net asset values (NAVs), since these could vary with developments in the market.

DSP Merrill Lynch MF Declares Dividend

DSP Merrill Lynch Mutual Fund has declared dividend under the dividend re-investment option of the regular and institutional plan of DSP Merrill Lynch Fixed Term Plan - Series 1K. The fund house has fixed 15 July 2007 as the record date for the payment of dividend of Rs 23.89 and Rs 24.12 per unit on regular and institutional plan respectively.

The NAV of the regular and institutional option stood at Rs 1,022.68 and Rs 1,022.89 per unit respectively as on 10 July 2007. The investment objective of the scheme is to achieve growth of capital by investing in a portfolio of fixed income securities maturing normally in line with the duration with the scheme.

Deutsche MF Introduces Three Dividend Options

Deutsche Mutual has introduced three dividend options with weekly, daily and monthly frequencies under DWS Credit Opportunity Cash fund. This introduction is effective from 25 June 2007. The NAV for the fund recorded at Rs. 10.06 as on 10 July 2007.

The objective of the DWS credit opportunity cash fund is to generate regular income by investing primarily in investment grade fixed income securities/ money market instruments.

Tata MF Rolls Out New Fund

Tata Mutual Fund has announced the launch of Tata Treasury Manager Fund that offers different investment plans and options. The scheme is an open-ended debt scheme. The issue will be open for subscription from 10 July and close on 12 July 2007. The NFO price will be Rs. 1000 per unit. The scheme offers following plan and options: Retail investment plan with growth option and dividend option with monthly frequency; High investment plan with growth option and dividend option with daily weekly and monthly frequency and Super high investment plan with growth option and dividend option with daily, weekly and monthly frequency. The minimum investment amount under retail investment plan is Rs. 25,000 and in multiple of Re. 1 thereafter. The minimum investment amount under high investment plan is Rs. 10 lakh and in multiple of Re. 1 thereafter. The minimum investment amount for super high investment plan is Rs.1 crore and in multiple of Re. 1 thereafter. There will be no entry load as well as exit load on the scheme.

Franklin Templeton MF Rolls Out New Fund

Franklin Templeton MF has rolled out Templeton Fixed Horizon Fund - Series III and Series IV. Templeton Fixed Horizon Fund - Series III and Series IV is a close-ended income fund. Both series offers six different plans i.e. plan A to pan F. The NFO period starts on 9 July 2007 and ends on 18 July 2007. The issue price is Rs. 10. The Schemes seeks to collect Rs.1 crore in each Plan as the minimum subscription. The schemes are available with growth and annual dividend options with payout facility.

The primary investment objective of the scheme is to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the fund''s duration.

For Templeton Fixed Horizon Fund - Series III maturity period will be 2 years from the date of allotment. Where as for Templeton Fixed Horizon Fund - Series IV maturity period will be 3 years from the date of allotment. As it''s a close ended schemes there would not be an entry load charged on the scheme.

Templeton Fixed Horizon Fund - Series IV carries an exit load of 3% if its redeemed before 6 months from the date of allotment, 2.5% if redeemed before 12 from the date of allotment, 2% if redeemed before 18 months from the date of allotment, 1.5% if redeemed before 24 months from the date of allotment and 1% if redeemed before 30 moths from the date of allotment.

Franklin Templeton MF Revises Exit Load

Franklin Templeton Mutual Fund (MF) has revised the load structure of its six schemes with effect from 16 July 2007: Franklin India Flexi Cap Fund (FIFCF), Franklin India Prima Plus (FIPP), Templeton India Growth Fund (TIGF), Templeton India Equity Income Fund (TIEIF), Franklin India Prima Fund (FIPF) and Franklin India Opportunities Fund (FIOF).

The fund house has revised the exit load on all purchases less then Rs 5 crore in all the above schemes.

At present there is no exit load for TIGF, FIPF and FIFCF schemes. According to revised load structure there will be a load structure of 1% under TIGF, FIPF and FIFCF schemes if units are redeemed or switched out within six months from the date of allotment and 0.50% if the units are redeemed after six months but within one year from the date of allotment.

Under FIPP, FIOF and TIEIF schemes currently there is an exit load of 0.50% if units of the schemes are redeemed or switched out within six months from the date of allotment. According to revised structure there will be a load structure of 1% under FIPP, FIOF and TIEIF schemes if the units are redeemed or switched out within six months from the date of allotment and 0.50% if units are redeemed after six months but within one year from the date of allotment.

Benchmark MF Files Offer Document

Benchmark Mutual Fund (MF) filed an offer document with SEBI for its Private Sector Bank Benchmark Exchange Traded Scheme (Pvt Bank BeES). The minimum target amount to be raised during the New Fund Offer is Rs 1 crore and the minimum investment is Rs 10,000 and in multiples of Re 1 thereafter.

Private Sector Bank Benchmark Exchange Traded Scheme is an open-ended index fund and will be listed on the exchange in the form of an Exchange Traded Fund (ETF) tracking the Benchmark Private Sector Bank Index (BPSBI). The scheme objective is to provide returns that closely correspond to the total returns of stocks as represented by the benchmark private sector bank index.

The units of the scheme can be bought and sold like any other stock on the National Stock Exchange of India. The unit will be available in dematerialized form. There will be no entry and exit load on the units of the scheme bought or sold through the secondary market on the NSE.

Weak Session For MF NAVs As Markets End In Red

It was a weak session for equity diversified NAVs yesterday with negative advance:decline ratio of 14:158 as the markets ended in red with moderate losses on the back of weak cues from Asia and Europe. The Sensex was down 35.85 points or 0.24% at 15009.88, and the Nifty down 13.35 points or 0.30% at 4406.05.
On the sectoral front, banking, FMCG and pharma funds declined while auto and technology funds advanced. The BSE Bankex and FMCG indices were down 0.92% and 0.29%, respectively. The BSE Auto and IT indices gained by 1.16% and 0.81%, respectively. Long term debt funds also finished with negative returns; advance:decline ratio stood at 27:43.

Among the equity diversified funds, the top gainers were JM Emerging Leaders Fund (G) up 0.62%, ING A.T.M. Fund (G) up 0.33% and ING Dividend Yield Fund (G) up 0.31%. The top losers were ABN AMRO Sustainable Development Fund (G) down 1.43%, ICICI Pru Emerging S.T.A.R. Fund (G) down 0.99% and Sundaram BNP Paribas Capex Opportunities Fund (G) down 0.92%.

Among the tax saving funds, the top gainers were JM Equity Tax Saver Fund - Series I (G) up 0.42%, ICICI Pru Tax Plan (G) up 0.38% and ING Tax Saving Fund (G) up 0.07%. The top losers were Lotus India Tax Plan (G) down 1.34%, Principal Personal Tax Saver Fund down 1.03% and Birla Tax Plan 98 down 0.80%.

Among the sector funds, the top gainers were UTI Auto Sector Fund (G) up 0.98%, Reliance Pharma Fund (G) up 0.75% and Franklin Infotech Fund (G) up 0.70%. The top losers were DSP-ML India T.I.G.E.R. Fund - Institutional Plan (G) down 0.91%, JM Financial Services Sector Fund (G) down 0.89% and UTI Infrastructure Fund (G) down 0.88%.

Among the balanced funds, the top gainers were JM Balanced Fund (G) up 0.57% and Kotak Balance up 0.03%. The top losers were BOB Balance Fund (G) down 0.80%, HDFC Childrens Gift Fund - Investment Plan down 0.67% and Principal Child Benefit Fund - Future Guard Plan down 0.51%.

More Dividend Options Under DWS Credit Opportunity Cash

Effective June 25, 2007 Deutsche Mutual has introduced three dividend options with weekly, daily and monthly frequencies under DWS Credit Opportunity Cash fund.

Mutual Funds In Selling Mode In Equities

Mutual funds (MFs) sold shares worth Rs 190.70 crore on Monday 9 July 2007. They had bought shares worth a net Rs 28.20 crore on Friday 6 July 2007.
Mutual funds' net outflow of Rs 190.70 crore on 9 July 2007 was a result of gross purchases of Rs 499.80 crore and gross sales Rs 690.40 crore. The Sensex gained 81.61 points, or 0.55%, to 15,045.73, an all-time closing high on that day. Mutual Funds sold equities worth Rs 457.70 crore in the first few days of month of July, till 9 July 2007. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

Tata Mutual Fund Declares Dividend Under Fixed Horizon Fund

Tata Mutual Fund has announced July13, 2007 as the record date of dividend under Tata Fixed Horizon Fund-Series 10 Scheme D. The AMC plans to distribute entire appreciation in the NAV as dividend.

Lotus India MF Unveils New FMP

Lotus India Mutual Fund has rolled out Lotus India Fixed Maturity Plan -3 Month - Series XIII. It is closed-ended debt scheme. The issue will open for subscription from 9 July and close on 26 July 2007. The tenure of the scheme is 90 days from the date of allotment. Issue price will be Rs 10 each unit. The scheme offers two options i.e. growth and dividend reinvestment.
The minimum application amount is Rs 5000 and in multiples of Re 1 thereafter. As it is a close-ended scheme there will not be any entry load. There is an exit load of 0.75% on investments if redeemed before the maturity date. The primary objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.

Tata MF To Pay 20% Dividend In Tata Balanced Fund

Tata Mutual Fund has decided to pay a dividend of 20 %( Rs 2 per unit on the face value of Rs 10) under Tata Balanced Fund. The record date of dividend is July 13, 2007.

Birla Sunlife MF Files Offer Document

Birla Sunlife Mutual Fund has filed an offer document for Birla Fixed Term Plan - Quarterly Series 22-25. It is a close-ended income scheme. Each scheme shall have a separate portfolio. The NFO price for the fund is Rs 10 per unit. The scheme will mature on 91st day from the date of allotment or the immediately following Business Day, if that date is not a Business Day.
The scheme will have dividend and growth plans. The dividend plan would have Payout facility. In case of valid applications received, without indicating any choice of plan, it will be considered as application for dividend payout and processed accordingly. The minimum application amount under is Rs.5, 000 and in multiples of Re.1 thereafter.

As it is a close-ended scheme, there will not be any entry load on the scheme. There will be an exit load of 0.50% if redeemed before the maturity period. The scheme objective is to generate income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

Dividend Declared In Reliance Monthly Interval Fund

Reliance Mutual Fund has declared a dividend of 0.730% & 0.739% under the Retail and Institutional Plan of Reliance Interval Fund- Monthly Interval Fund-Series I, respectively. The record date for both the dividends would be July13, 2007.

Lotus India MF Files Offer Document

Lotus India Asset Management Company (AMC), a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, has filed an offer document for Lotus India AGILE (Alpha Generated from Index Leaders) Fund. It is an open-ended diversified equity scheme. The NFO price for the fund is Rs 10 per unit with applicable entry loads during the NFO period.

The scheme offers two options i.e. growth and dividend. The dividend option offers dividend payout or dividend re-investment facility. The minimum application amount under is Rs.5, 000 and in multiples of Re.1 thereafter.

The scheme charges an entry load of 2.25 % on investments less than Rs. 5 crore, whereas there will no entry load for the amount above Rs. 5 crore. The scheme charges an exit load of 1.00% if redeemed before 6 months from the date of allotment. The exit load will reduce further to 0.60% if redeemed before 1 year from the date of allotment. There will be no exit load for the scheme if redeemed after the expiry of 1 year from the date of allotment.

Principal MF Revises Its Load Structure

Principal Mutual Fund has revised the load structure of its two scheme that are Principal Balanced Fund and Principal Child Benefit Fund - Career Builder Plan. From 9 July 2007 onwards, the fund will start charging the revised load structure.

At present, the Principal Balance Fund is charging entry load of 2.25% for investment less than 30 million. There is no exit load charged for the scheme. But as per the revision there will be an exit load of 0.50% if the units are redeemed before 180 days from the date of allotment. The entry load will remain unchanged.

Principal Child Benefit Fund - Career Builder Plan charges an entry load of 2.25%. It charges an exit load of 3% if the units are redeemed before the expiry of 3 years from the date of allotment. If the units are redeemed after the expiry of 3 years but before the expiry of 5 years, from the date of allotment, there will be an exit load of 2%. There will be no exit load if the units are redeemed after the expiry of 5 years from the date of allotment.

HDFC MF Declares Dividend For FMP

HDFC Mutual Fund has announced the declaration of dividend for HDFC Fixed Maturity Plan 13 Month June 2006 (1)-Retail plan- dividend option. The record date is set as 12 July 2007. The quantum of dividend will be 100 per cent of distributable surplus available on the record date. The NAV for the scheme was Rs. 10.82 as on 5 July 2007.

HDFC Fixed Maturity Plan 13 Month June 2006 (1)-Retail plan- dividend option is a close-ended scheme. The investment objective for plan is to generate regular income through investments in debt or money market instruments and government securities. The scheme carry no entry load whereas there will be an exit load of 1.00% if units are redeemed /switched out before maturity.

ICICI Prudential MF To Declare Dividend

ICICI prudential Mutual Fund will declare dividend on the face value of Rs 10 per unit on the ICICI Prudential fixed maturity plan series 37- 3 Months Plus Plan A. The fund house has fixed 12 July 2007 as the record date for the purpose of declaration of dividend, which will be 100% of the distributable surplus available as on the record date. The NAV of the scheme stood at Rs 10.32 per unit as on 4 July 2007.

ICICI Prudential fixed maturity plan series 37- 3 Months Plus Plan A is a close-ended debt fund. The objective of the scheme is to generate regular returns by investing in a portfolio of fixed income securities/ debt instruments normally maturing in line with the time profile of the plan. There will no entry as well as exit load for the scheme.

Birla MF Announces Dividend For FTP Scheme

Birla Sun Life Mutual Fund has come out with the dividend under dividend option of Birla Fixed Term Plan Quarterly Series-12. The record date for the declaration of dividend is 10 July 2007. The AMC plans to distribute entire distributable surplus available on the record date as dividend. The scheme was launched with the objective to generate current income by investing in a portfolio of fixed income securities maturing normally in line with the duration of the scheme.

New UTI MF To Mop Up Rs 2000Cr

KOCHI: UTI Mutual Fund on July 6, said it was planning to mop up about Rs 2,000 crore all over India from its new scheme, UTI-India Lifestyle Fund. The fund, which opened on July 2, is expecting to cover about five lakh customers in the country by July 25 when it closes. The three-year close ended Equity oriented scheme, with an investment objective to offer long-term capital appreciation and income distribution from a diversified portfolio of equity and equity related instruments of companies that are hoped to benefit from changing Indian demographics, Indian lifestyles and raising consumption pattern. Over the last few years, due to increasing income levels Indian consumers are showing a marked preference for new products and services which deliver higher levels of quality than conventional items. This has changed the scale of demand for household goods and services like autos, home goods, telecom, consumer finance, leisure, entertainment.

Lotus India Launches New FMP

Lotus India AMC, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, announced the launch of its Closed-Ended Debt Scheme: Lotus India Fixed Maturity Plan -375 Days - Series II.
The objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.

Lotus India Fixed Maturity Plan - 375 Days - Series II offers two plans i.e. Retail and Institutional and both plans offer two options i.e. Growth and Dividend Reinvestment. It is open for subscription from 6 July 2007 and will close on 25 July 2007.

The minimum application amount for Retail plan is Rs 5000/- and in multiples of Re 1 and Institutional Plan is Rs 5,000,000 and in multiples of Re 1 thereafter. Units will be available at Rs 10 each. The scheme does not charge any entry load but there is an exit load of 2.00 % on investments if redeemed before 361 day from the date of allotment.

The scheme will invest in money market instruments including reverse repo - 0-100%; government securities issued by the central government and/or state government(s) - 0-50%; debt instruments such as bonds and debentures - 0-100% and securitised debt - 0-50%.

Lotus India AMC Unveils India Growth Fund

Mumbai: Lotus India AMC, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, on July 5, declared the unveil of its open-ended diversified equity scheme Lotus India Growth Fund. The investment objective of the scheme is to raise long-term growth of capital by infusing in a diversified portfolio of predominantly equity and equity-related securities. The new fund offer is priced at Rs 10 per unit (plus applicable entry load) opens for initial purchase from July 9 and closes on July 19.
The fund will infuse 65-100 per cent in equity and equity related instruments and 0-35 per cent in debt and money market instruments. It can infuse across large cap, mid-cap or small cap stocks; across growth, value or blend stocks. Given that Indian companies are growing at a rapid pace and have the potential to grow at above-average rates in the years to come, the Lotus India Growth Fund will help investors capture the growth potential of corporate India in a comprehensive manner.

PAN Hitting Hard To MF Sector

SEBI’s move to make PAN mandatory hits hard to mutual fund investors. In two days since the rule came into effect from 2 July 2007, close to 10 lakh applications have been rejected by mutual funds. Several accounts of existing SIP investors without PAN proof have also been frozen. The investors in SIPs have been asked to produce PAN card or proof of application.

Birla Sun Life MF Extends The NFO

Birla SunLife Mutual Fund has announced the extension of its new fund offering (NFO) for Birla Sun Life Capital Protection Oriented Fund. The fund now will close on 13 July 2007 instead of 6 July 2007, an extension of 7 days. The earlier NFO period was from 20 June 2007 to 6 July 2007.

Mutual Funds In Selling Mode In Equities

Mutual funds (MFs) sold shares worth Rs 427.20 crore on Wednesday 4 July 2007. They had bought shares worth a net Rs 54.80 crore on Tuesday 3 July 2007. Mutual funds' net outflow of Rs 427.20 crore on 4 July 2007 was a result of gross purchases of Rs 529.70 crore and gross sales Rs 957 crore. The BSE 30-share Sensex rose 73.73 points or 0.50% at 14,880.24, an all time closing high on that day. Mutual Funds sold equities worth Rs 602 crore in the first few days of month of July, till 4 July 2007 Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

Dividend Under Two FMPs Of DBS Chola Mutual Fund

DBS Chola Mutual Fund has declared dividend under DBS Chola Fixed Maturity Plan -Series 7 (Quarterly Plan-I) and DBS Chola Fixed Maturity Plan-Series 7 (Quarterly Plan-II).The record date for DBS Chola Fixed Maturity Plan - Series 7(Quarterly Plan-I) is July9, 2007 and for DBS Chola Fixed Maturity Plan-Series 7 (Quarterly Plan-II) is July11, 2007.

Lotus India MF crosses $ 1 Billion Mark

Lotus India Asset Management Company Private Limited (LIAMC) announced that it has crossed $ 1 billion of assets under management (AUM) as on 30th June 2007. LIAMC has witnessed remarkable growth in AUM from Rs. 3623 crores as on 31 May, 2007 to Rs. 4165.36 crores as on June 30th 2007; a growth of around 15%, thus making it one of the fastest growing fund houses in this period.

UTI MF planning for the IPO

One of India’s leading fund manager UTI Mutual Fund is planning to enter the capital market with its public issue by the end of current fiscal year. The fund house has already got the approval from its board for the initial public offering (IPO). The Fund house have got approval from its sponsors comprises State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India holding 25 % stake each.

Revised asset allocation for UTI Monthly Income scheme

UTI Mutual Fund has revised the asset allocation pattern for UTI Monthly Income Scheme. The fund has increased the maximum equity allocation from 10% to 15%. This change in the stated asset allocation would come into effect from 3 August 2007.

Vineet Vohra is the new CEO at ING MF

Effective 1 July 2007, Mr. Vineet K. Vohra has been appointed as the Chief Executive Officer and Managing Director of ING Investment Management (I) Pvt Ltd. He has replaced Ms Kavita Hurry, who was the CEO since September 2002.

Dividend declared in Standard Chartered FMP Quarterly Series 8

Standard Chartered Mutual Fund has announced July 9, 2007 as the record date for the declaration of dividend under Standard Chartered Fixed Maturity Plan - Quarterly Series 8.

Rs 4.01 lakh crore AUM In June 2007

The mutual fund industry closed June 2007 with Rs 4.01 lakh crore of assets under management (AUM). This showed a decline of 3.22% in June 2007 compared with Rs 4.14 lakh crore managed in May 2007. AUM of fund of funds (FoFs) was Rs 2076.83 crore.

Of the 32 mutual funds, 14 registered a rise in AUM in June 2007 over May 2007 and rest showed a decline in their AUM (excluding AIG Global Investment Group Mutual Fund and JP Morgan Mutual Fund). There were 13 fund houses with AUM above Rs 10000 crore, Of these, eight registered net outflow in June 2007 compared with May 2007, when all fund houses witnessed net inflow.

The top three funds witnessing a rise in the AUM included DBS Chola Mutual Fund (22.04%), Lotus India Mutual Fund (14.97%) and Quantum Mutual Fund (12.56%). Reliance Mutual Fund continued its run as the largest fund house with Rs 59857.01 crore of AUM in June 2007 - a rise of 1.21% over May 2007. It registered net purchases of Rs 713.54 crore in June 2007 over May 2007. This is clearly more than what ICICI Prudential Mutual Fund managed: Rs 43613.75 crore in June 2007. It stood at the second position. However, ICICI Prudential Mutual Fund fell by Rs 7089.25 crore to 13.98% in June 2007 over May 2007.

AUM of UTI Mutual Fund and HDFC Mutual Fund decreased 2.59% and 1.43%, respectively, in June 2007. Occupying the third and fourth slots, AUM of UTI Mutual Fund and HDFC Mutual Fund were Rs 39031.87 crore and Rs 35629.81 crore, respectively. Both the fund houses were in the third and fourth positions of May 2007.

The other top mutual funds, in terms of AUM in June, 2007 were Franklin Templeton Mutual Fund AUM (Rs 26469.44 crore), SBI Mutual Fund (Rs 20272.97 crore) and Birla Sun Life (Rs 19525.33 crore). Among these, only Birla Mutual Fund recorded a decline in AUM.

DSP Merrill Lynch Mutual Fund recorded the highest net inflow of Rs 900 crore in June 2007, replacing Reliance Mutual Fund, which dropped down to fourth position with an inflow of Rs 713.54 crore, Benchmark Mutual Fund and Tata Mutual Fund with a net inflow of Rs 781.95 crore and Rs 755.20 crore, respectively, followed. However, ICICI Prudential Mutual Fund recorded the highest outflow of Rs. 7089.25 crore in June 2007. It was followed by Birla SunLife Mutual Fund, Standard Chartered Mutual Fund and Principal Mutual Fund with net outflow of Rs 4194.13 crore, Rs 3224.02 and Rs 1597.16 crore, respectively.

Sahara MF Registers Papers For Fixed Maturity Plan

MUMBAI: Sahara Mutual Fund has registered papers with Securities and Exchange Board of India for a fixed maturity plan. This close ended scheme, with no assured returns, will infuse in debt and money market securities, maturing in line with the scheme. The scheme will have plans of varying duration-3 months (Series 2 and 3) and 395 days (Series 2, 3 and 4). Each plans offers dividend and growth options. Investors can infuse minimum Rs 5,000 and in multiples of Re 1 thereafter in both dividend and growth options. The fund will not charge any entry load. Under Sahara FMP-3 months (Series 2, 3 & 4), redemption within one month from allotment will attract exit load of 2%. If redeemed after one month but before two months from allotment, 1.50% exit load will be imposed. Under Sahara FMP-395 days (Series 2 & 3), an exit load of 2% will be charged for redemption before six months from date of allotment. Redemption after nine months of allotment to 1 day before maturity will attract 1%. The three months plan (Series 2, 3 & 4) will track CRISIL Liquid Fund Index and FMP-395 days (Series 2 & 3) will track CRISIL Short Term Bond Index.

Mutual Funds In Selling Mode In Equities

Mutual funds (MFs) sold shares worth Rs 221 crore on Monday 2 July 2007. They had bought shares worth a net Rs 150.90 crore on Friday 29 June 2007. Mutual funds' net outflow of Rs 221 crore on 2 July 2007 was a result of gross purchases of Rs 414.70 crore and gross sales Rs 635.70 crore. The BSE 30-share Sensex rose 13.75 points to 14,664.25, an all time closing high, on that day. Mutual funds had pumped in Rs 9062.34 crore in Indian equity market in the financial year ended March 2007.

Kotak MF, T. Rowe Price To Roll Out Feeder Product Soon

Kolkata: Kotak Mahindra MF, which has recently joined hands with T. Rowe Price, hopes to launch its feeder product shortly. The two had declared the agreement in February. T. Rowe Price, set up in the 1930s, had over $330 billion under management at the end of last year. The proposed fund will infuse in the Luxembourg-domiciled T. Rowe Price Funds SICAV, Global Emerging Markets Equity Fund. The latter has a diversified portfolio, a made up of companies that are associated with economies in Asia, Latin America, West Asia and the like.

ICICI Pru MF Extends NFO Closing Of FMP-S36-18M-Plan B

ICICI Prudential Mutual Fund announced that the fund house has extended the closing date of the New Fund Offer of its Fixed Maturity Plan - Series 36 - 18 months - Plan B. As per the revision, the closing date has been extended to Jul. 10, 2007. Earlier the scheme was about to close on Jul. 2, 2007. Fixed Maturity Plan - Series 36 - 18 months - Plan B is a close ended debt scheme which aims at generating regular return by investing in fixed income securities.

MFs AUM Decline 3.17Pc In June

Mumbai: The assets under management (AUM) of the mutual fund industry saw a sharp decline in June, a drop of 3.17 per cent from May, as per the data released by the Association of Mutual Funds in India. In May, the industry had seen a record surge in the assets, with the industry crossing the Rs 50,000 crore-mark. The heavy inflows then were on account of surplus liquidity in the system, as call rates had declined below one per cent and Fixed Maturity Products of mutual funds had gathered sizeable amounts of assets. The industry asset base for June stands at Rs 4,00,842.12 crore from Rs 4,13,968.65 crore in May.
Of the total 32 asset management companies, 15 have seen a decline in asset base with ICICI Prudential Mutual Fund seeing the steepest fall in AUM by Rs 7,089.24 crore or 13.98 per cent. This is followed by Birla Sun Life Mutual Fund, which registered a 17.68 per cent drop in AUM by Rs 4,194.13 crore. Reliance Mutual Fund, which gained Rs 713.53 crore in June at Rs 59,857.01 crore, continued to be the fund house with highest AUM for the fourth consecutive month. Following Reliance MF is ICICI Prudential MF at Rs 43,613.76 crore, UTI MF at Rs 39,031.87 crore, HDFC MF at Rs 35,629.81 crore and Franklin Templeton MF at Rs 26,469.44 crore. DSP Merrill Lynch MF registered the highest growth in asset base by Rs 900 crore or 7.59 per cent at Rs 12,753.29 crore. Benchmark MF saw a growth of Rs 781.94 crore in asset base followed by Tata MF, which saw an increase of Rs 755.19 crore in AUM.

UTI MF Likely To Go Public This Fiscal

NEW DELHI: The country's leading fund manager UTI Mutual Fund is likely to foray the capital market with its public issue by the end of current fiscal and has already got the approval from its board for the IPO. In another 6-8 months we would be in better position to tell about the launch time. The ground work has began and various aspects were being examined. UTI Mutual Fund sponsors comprises State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India holding 25 per cent stake each. They will make one more presentation to Pension Fund Regulatory and Development Authority shortly and we are hopeful to be selected as one of the manager. Besides UTI AMC, the other shortlisted entities are SBI, LIC and IDBI Capital.

SBI Magnum Sector Umbrella IT Fund Declares 40% Dividend

SBI Mutual Fund has declared dividend of 40% (Rs 4.00 per unit) on the face value of Rs 10 each in SBI Magnum Sector Umbrella IT Fund. The fund house has set 4 July, 2007 as the record date for dividend distribution. The scheme aims to provide the investors maximum growth opportunity through equity investment in stocks of IT sector.

Reliance Tax Saver To Discontinue From Providing Insurance Cover

Reliance Mutual Fund amended the offer document of Reliance Tax Saver (ELSS) Fund. As per the amendment, the fund house will discontinue the personal accident death insurance cover, which was available under the scheme. The above revision is applicable from 2 July 2007 and thus no such cover will be available on subscription made on or after 2 July 2007. All the other features and scheme available under the scheme will remain same. Reliance Tax Saver (ELSS) Fund is an open-ended equity linked saving scheme, which aims at generating long term capital appreciation by investing in a portfolio of equity, and equity related instruments.

UTI MF Unveils Lifestyle Fund

New Delhi: UTI Mutual Fund on July 2, unveiled a three-year close-ended, equity-oriented scheme called UTI-India Lifestyle Fund. The new fund offer (NFO) opened on July 2 and closes on July 25. The buy of units will be available only during the NFO period. The fund is a three-year close-ended equity-oriented scheme with an investment objective to give long-term capital appreciation or income distribution from a diversified portfolio of equity and equity- related instruments. On maturity, the scheme will automatically be converted into an open-ended scheme. The minimum investment is Rs 5,000 and in multiples of Re 1 thereafter without any upper limit. The scheme offers redemption/switch-out of units on an ongoing basis at half yearly intervals at net asset value based prices.
Since it is a close-ended scheme it is not permitted to charge entry load. An early exit charge equivalent to the unamortised NFO expenses will be recovered from the investor in case of redemption before the expiry of three years from the date of allotment. UTI Mutual hopes five lakh retail investors and is targeting Rs 2,000 crore from the fund. The stocks would be mainly from automobile, home goods, retail, telecom, consumer finance, foods, housing, personal care, health care, fashion accessories, leisure, entertainment and tourism sectors.

PAN Rule To Affect Fund Houses

Mumbai: Investors investing their money in mutual funds, will have to mention their permanent account numbers (PAN) or submit a proof of applying for the same along with the MF application, as fund houses began complying with the know your customer (KYC) norms of the Securities and Exchange Board of India (Sebi). The regulator had urged the fund houses to follow the KYC norms from July 2. The norms want compulsory disclosure of the PAN number by the investor. However, last week, the Sebi permitted fund houses to accept investments from investors, who have applied for PAN, provided they attach evidence of their PAN application with their investment form.
The Sebi has also freed micro-pension schemes from this compliance. Earlier, investors infusing above Rs 50,000 had to disclose their PAN details. But, following the new KYC norms, every MF investment will require either PAN or its application proof. The decision will mainly affect fund houses, which are aiming low-income investors, especially based in rural and semi urban areas, as a significant number of these investors do not have PAN. The fund houses have joined hands with co-operative institutions, local trade bodies for attracting their members to the MF fold.Even though the contribution of these investors to the overall MF corpus is very minuscule, the fund industry is finding implementation of this decision a hard task.