Principal MF Files An Offer Document

Name of Fund: Principal Mid & Small Cap Fund

Scheme: An open-ended equity scheme.

Objective: The primary objective of the scheme is to achieve long-term capital appreciation by investing in equity and equity related instruments of mid cap & small cap companies.

Investment options: The scheme offers investment under two options namely dividend and growth. Under dividend option, the unit holder will have dividend payout, reinvestment, and sweep facilities.

Asset Allocation: The scheme will invest 65-100% of its portfolio equity and equity related instruments of mid cap companies. The scheme will invest 5-15% in equity and equity related instruments of small cap companies. The scheme will have 0-30% equity and equity related instruments of companies other than mid & small cap companies. Overall the investment in equities will be 70%-100%. The scheme will invest up to 30% in cash and money market / fixed income securities including MIBOR linked short term papers.

Face Value: Rs 10.

Entry Load: There will be an entry load of 2.25% for investments less than Rs 3 crore. However there will not be any entry load charged for the investment above Rs 3 crore.

Exit Load: For applications below Rs. 3 crore: The scheme will charge an exit load of 1.50% if investment redeemed on or before 180 days from the date of allotment. There will be an exit load of 1.00% if redemptions made after 180 days but on or before 365 days from the date of allotment. There will not be any exit load charged on the redemptions made after 365 days from the date of allotment.

For applications of Rs. 3 crore and above: The scheme will charge an exit load of 0.50% if investment redeemed on or before 180 days from the date of allotment. There will not be any exit load charged on the redemptions made after 180 days from the date of allotment.

Minimum Investment Amount: The minimum investment amount is Rs. 5000 and any amount thereafter.

Minimum targeted amount: Rs 10 lakh

Benchmark index: CNX Midcap Index

Fund manager: Mr. Pankaj Tibrewal

Standard Chartered MF Declares Dividend

Standard Chartered Mutual Fund has announced 5 February 2008 as the record date for declaration of dividend under dividend option of Grindlays Fixed Maturity Plus Plan - III. The AMC plans to distribute entire appreciation in the NAV of dividend option since inception till 5 February 2008 as dividend. The scheme will also mature on 5 February 2008.

Grindlays Fixed Maturity Plus Plan is a close-ended income scheme. The investment objective of the scheme is to seek to generate income by investing in a portfolio of debt and money market instruments normally in line with the duration of the scheme.

Kotak Mahindra MF Revises Load Structure

Kotak Mahindra mutual fund has announced the revision in the load structure for Kotak Mahindra Bond Unit Scheme 99. According to the revised load structure the fund will charge an exit load of 0.50% if the investment is redeemed within 6 months from the date of investment. However there will not be any exit load charged for the redemption made after the 6 months. Also the scheme will not charge any entry load to the investors.

The aforesaid changes will be effective from 5 February 2008.

Mutual Fund Launched To Woo Canadians To Invest In India

Canada's Lawrence Asset Management has launched an open-ended mutual fund to encourage investors from the country to invest in India's equity market.

"Lawrence India Fund" is a long/short equity fund with a long bias that will invest most of its assets directly into Indian markets, providing investors with access to equity and debt securities of companies located and listed in India.

Lawrence Asset Management has partnered with Reliance Asset Management, Singapore, to provide the Fund with research, investment strategy advice and recommendations.

Reliance Asset Management is a wholly owned subsidiary of Reliance Capital Asset Management Limited, the largest asset management company in India managing over USD 20 billion in assets under management as of December 2007, according to release issued by Lawrence Asset Management.

"Given India's current economic trajectory and favourable demographics, it is projected to be one of the largest economies in the world within 25 years and will play a significantly larger role in global capital markets. We think now is the ideal time for Canadian investors to allocate a portion of their investment portfolio into the Indian equity markets," said Ravi Sood, President and COO of Lawrence Asset Management.

Stanchart Expects To Seal MF Business Sale Soon

Standard Chartered Bank said it expects to complete the sale of its Indian mutual fund business soon, though it declined to put a date to deal.

"We have seen a lot of interest from buyers and we are in discussions with them...we expect to complete the deal soon," bank's India Chief Executive Neeraj Swaroop told.

Last month, the foreign banking major had abandoned a deal worth over Rs 460 crore with UBS AG as the latter failed to receive regulatory approval from the Reserve Bank of India before the sale purchase agreement expired.

Standard Chartered had announced that as the contract with UBS had expired, it would look for new buyers for its asset management company.

Swaroop, however, dispelled rumours that Standard Chartered was in discussions with RBI to see the deal through.

"We will follow all RBI regulations for the deal," he said.

Sebi Reduces Costs For Mutual Fund Investors

The Securities and Exchange Board of India (Sebi) has decided to reduce the costs for mutual fund investors by doing away with the initial issue fee for close-ended schemes.

The Sebi board, which met on 30 January 2008, also cleared the draft proposal for listing debt securities, eased disclosure norms for existing debt market securities and paved the way for permanent registration of capital market intermediaries.

Speaking to reporters after the board meeting, Sebi Chairman M Damodaran said it is part of the regulator’s endeavour to make mutual funds cheaper.

The new rule is for prospective schemes.

Currently, initial issue expenses on closed-ended funds are amortised over the period of the fund. It allows funds to spend the amount collected as fees (currently, about 6 per cent for a three-year fund) in stages and not at one go.

Following the Sebi move in 2006 to scrap the amortisation benefit for open-ended schemes, there was a spurt in closed-ended schemes. Of the 34 new fund offers in 2007, 24 were closed-ended.

Sebi said all mutual fund schemes will henceforth meet sales, marketing and other such expenses from the entry load.

Sebi also inducted a new board member, Mohan Gopal, who is the director of the National Judicial Academy.

On debt securities, the regulator decided that entities issuing debt securities for the first time will have to make detailed disclosures. This was a part of the draft Sebi regulations that had been put out for public comment. The regulator also said an offer to 50 or more people will require a mandatory listing.

Draft regulations on securitised debt instruments, which have been languishing in the absence of regulations, were also cleared today.

Damodaran also said guidelines for Real Estate Investment Trusts (REITs) and real estate mutual funds would be considered in the next board meeting.

Sebi has invited public comment on the draft guidelines for REITs, which would allow people to invest in real estate in an organised manner.

Referring to the issue of reducing the cost and time of initial public offers, Damodaran said a sub-committee of the Primary Market Advisory Committee has gone through various issues and submitted its report, which will be considered sometime in February.

Replying to questions on the introduction of short-selling by institutional investors, Damodaran said, “It will be introduced in the first week of February if not on 1 February 2008.” Retail investors are already allowed to short-sell on the exchanges.

LIC MF Files An Offer Document

Name of Fund: LIC Banking and Financial Sector Fund

Scheme: A 36-months close-ended equity scheme with an automatic conversion into open-ended scheme after completion of 36 months from the date of allotment.

Objective: The investment objective of the scheme is to provide long term growth from a portfolio of equity and equity related instruments of companies engaged either directly or indirectly in the banking and financial sector.

Investment options: The scheme offers investment under two options namely dividend & growth. Under dividend option, the unit holder can choose either dividend payout or reinvestment.

Asset Allocation: The scheme will invest 80-100% of its portfolio in equity and equity related instruments of companies engaged either directly or indirectly in the banking and financial sector. The scheme will invest 0-20% in debt and money market instruments. The plan may invest up to 20% of debt portfolio includes securitised debt.

Face Value: Rs 10.

Entry Load: The scheme will not charge any entry load as it is of close-ended nature.

Exit Load: The units will be redeemed only after recovering the balance proportionate unamortized issue expenses.

Minimum Investment Amount: The minimum investment amount is Rs. 5000 and in multiples of Re.1 thereafter.

Minimum targeted amount: Rs 1 crore

Benchmark: BSE Bankex

IVR Prime Urban Developers Loses By 3.43%

Share prices of IVR Prime Urban Developers lost by 3.43% to Rs. 284.50 reported at BSE at 10.33 a.m. on 30 January 2008 against previous day close of Rs 294.60.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the company. Benchmark Equity & Derivatives Opportunities Fund 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. Benchmark Equity & Derivatives Opportunities Fund has 1.50% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 44870 units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company.

It is followed by Kotak Opportunities (G) with 1.00 lakh units (1.01% of its portfolio) and by Benchmark Derivative Fund (G) with holding of 9952 units (0.99%) as on 31 December 2007.

Canara Bank Stocks Likely To Benefit MF Scheme

Share prices of Canara Bank went up by 2.35% to Rs. 291.70 reported at BSE at 10.26 a.m. on 30 January 2008 against previous day close of Rs. 285.00.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the bank. Kotak PSU Bank ETF is likely to gain as it has the highest percentage hold of the stocks of the bank compared to its peer groups who have invested in the stocks of the bank. Kotak PSU Bank ETF was holding 3.65% of its total portfolio size invested in the stocks of the bank as on 31 December 2007. The scheme holds 83196 units of the bank in December 2007 compared to its peer groups who have invested in the stocks of the bank.

It is followed by PSU Bank BeES with 4.80 lakh units (3.64% of its portfolio), Stan Chart Fixed Maturity Arbitrage – Series I - A (G) with 70272 units holding (3.13%) as on December 2007.

Two mutual fund schemes have completely exited from Canara Bank in December 2007. Among them, DBS Chola Infrastructure Fund (G) was holding 40018 units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to gain. DBS Chola Contra Fund (G) was holding 10020 units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to benefit.

UTI AMC To Sell 10-12% For $200 Mn

UTI Asset Management Company is roping in an international strategic investor for expanding its operations abroad. The investor, to be chosen from a slew of interested parties, will buy 10-12% equity in the country’s second largest mutual fund house for around $200 million.

Half-a-dozen interested parties including Goldman Sachs, Lehman Brothers, Warburg Pincus, Singapore’s GIC and Japanese Shinsei Bank — are vying for the stake. Sources close to the development said the deal is expected to be finalised very soon.

The shortlisted parties will submit final financial bids by end of the week. Valuations may take a minor plunge, owing to the current volatility in the market, said the sources. The country's second largest fund house, after R-ADAG's Reliance Capital Asset Management, had asset under management (AUM) of about Rs 57,000 crore, as on 31 December 2007.

Last month, Eton Park Capital Management, the hedge fund firm founded by former Goldman Sachs Group partner Eric Mindich, acquired 4.76% in Reliance mutual fund house for Rs 501 crore. The deal valued Reliance’s mutual fund at Rs 10,521 crore. The company said in a statement that the equity proceeds would be utilised for its domestic and international expansion.

According to analysts, asset management companies are usually valued at 5-10% of their assets under management. In the case of Reliance AMC, the valuation was at 12-13% of the AMC’s AUM. UTI AMC has already filed draft red-herring prospectus for its proposed initial public offer for 4.85 crore equity shares with the market regulator Sebi.

The company will also make a fresh issue of 2.5 crore shares, out of which 1.6 crore will be privately placed with investors in the pre-IPO sale and 90 lakh shares issued to employees under its employee stock option plan (Esop).

The IPO is estimated to raise close to Rs 2,000 crore and would involve part-sale of shares held by its promoters SBI, LIC, PNB and Bank of Baroda.

Citigroup Global Markets India, Enam and JM Financial Consultants are arranging the share sale. CLSA, Goldman Sachs (India), ICICI Securities, SBI Capital Markets and UBS Securities India are also managing the sale.

UTI AMC was created by the government splitting the state-run Unit Trust of India into two in February 2003, following its failure to pay investors because of a shortfall between the returns it guaranteed and the market value of its assets. In 2005, the government asked the four sponsors including SBI, LIC, Punjab National Bank and Bank of Baroda to each hold a 25% stake in the asset manager.

UTI MF Declares Dividend

The UTI Mutual Fund has announced the declaration of dividend under the dividend option of UTI Short Term Income Fund. The record date for the declaration of dividend is 29 January 2008. The quantum of dividend is 0.55% i.e. Rs. 0.55 per unit on the face value of Rs.10. The NAV of the scheme was recorded at Rs 10.1809 as on 28 January 2008

UTI Short Term Income Fund is an open-ended income scheme with an objective to generate steady and reasonable income with low risk an high level of liquidity form a portfolio of money market instruments and high quality debt.

Fidelity MF Appoints New Director

Fidelity Mutual Fund has appointed Mr. Arun Mehra as an alternate director to Mr. Richard Wane with effect from 23 January 2008. Prior to this, Mr. Mehra is a portfolio manager at fidelity international limited. He was head of investment strategy India and portfolio manager for two of the equity schemes of the fund i.e. Fidelity Equity fund and Fidelity Tax Advantage Fund during 2005-06.

Mr. Mehra is an M.B.A from University of Chicago, M.Sc from the University of Arizona and Bachelor of Engineering from University of Delhi.

Reliance Fixed Horizon Fund Raised Rs.100 Crores

Reliance Mutual Fund has announced collections of around Rs. 100 crores during the NFO of the Reliance Fixed Horizon Fund –VII – Series 1, which closed on 24 January 2008.

Reliance Fixed Horizon Fund –VII – Series 1 was a close-ended income scheme with maturity period of 15 months from the date of allotment. The scheme does not charge any entry load. The scheme charges an exit load of 2.00% if the investment is redeemed on or before completion of 6 months from the date of allotment. The exit load will come down to 1.00% if investment is redeemed from 6 months -1 day till the maturity of the scheme.

Ingersoll Rand India Stocks Likely To Benefit MF Scheme

Share prices of Ingersoll Rand India gain by 2.33% to Rs. 336.00 reported at BSE at 10.32 a.m. on 29 January 2008 against previous day close of Rs 328.35.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. UTI-MNC Fund (D) is likely to gain most as it has the highest percentage holding of the stocks of the company compared to its peer groups who have invested in the stocks of the company. UTI-MNC Fund (D) was holding 4.34% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 2.18 lakh units of the company in December 2007.

ICICI Prudential Liquid Plan Open For Repurchase/Redemption

ICICI Prudential Mutual Fund has notified the following under the scheme ICICI Prudential Sweep Plan, a plan under ICICI Prudential Liquid Plan, in terms of enabling provisions of the offer document of the scheme:

During the period from 29 January 2008 to 1 February 2008 (both days inclusive), existing investors under the scheme can redeem units under the scheme by sending appropriate requests/ applications directly to the fund.

Also, during the aforesaid period, existing as well as new investors can make fresh applications for purchases of units under the scheme. The minimum amount of application shall be Rs 5000 and in multiples of Re 1 thereafter.

The investment objective of ICICI Prudential Sweep Plan, a plan under ICICI Prudential Liquid Plan, is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investment made primarily in money market and debt securities.

HDFC Plans To List MF Arm By This Year-End

HDFC is planning to get its mutual fund arm listed later this year. The housing finance company has been unlocking value from its various arms, the latest being a Rs 202-crore gain from the sale of its general insurance company’s shares this month.

HDFC said it has received clearance from the regulator to sell a 26% stake in its general insurance subsidiary to ERGO International, a part of the Munich Re group. The general insurance company, which was earlier known as HDFC Chubb, will now be renamed to reflect the new shareholding.

Following the announcement, HDFC’s share price rose Rs 68.4 to Rs 2,781.7 an increase of 2.52% on a day the Sensex fell 204 points. HDFC will receive Rs 235 crore from ERGO International for the 26% share in the HDFC General Insurance.

The transaction, which includes 3.25 crore shares with a face value of Rs 32.5 crore, is likely to be completed by this month. Deepak Parekh, chairman, HDFC said the non-life company would not require immediate capital from the promoters. “The capital requirements of a non-life company are far lower than that of a life company.”

Commenting on the plans for HDFC Mutual Fund, Mr Parekh said the company would look at listing its asset management arm later this year. The stockmarket’s interest in shares of asset management have gone up after the decision by UTI Asset Management to get itself listed. While mutual funds were earlier valued at 4-6% of their assets under management, this has gone up with Reliance Mutual Fund deal which saw the AMC being valued at 13% of its AUM.

Mr Parekh said the mutual fund arm was likely to go public before the life insurance arm. According to sources, an IPO by a life company would have to necessarily exclude foreign investors as foreign shareholding is capped at 26% for all insurance companies. While the life insurance and mutual fund subsidiaries have leading positions, the non-life arm has lagged behind.

“General Insurance has been one area where we have lagged behind. We need to gear up and focus our energies to become one of the prominent players of this fast-growing industry. ERGO is a leading player in Europe, and I am certain that their experience, technical expertise and operational know-how will make a big difference for this business,” said Mr Parekh

The shareholder’s agreement between the two companies was signed on 30 October 2007 between Deepak Parekh, chairman of the board of HDFC and Nikolaus von Bomhard, CEO of ERGO’s parent company Munich Re Group. HDFC General Insurance will be renamed as HDFC ERGO General Insurance Company and will be headquartered in Mumbai.

JM Agri & Infra Fund Debuts At Rs 8.98

JM Mutual Fund's JM Agri & Infra Fund, whose initial public offering closed on 28 December 2007, has debuted at Rs 8.9777 per unit as against a face value of Rs 10 per unit. JM Agri & Infra Fund is a 3-year close-ended equity oriented scheme with an automatic conversion into an open-ended equity oriented scheme on maturity. The scheme was launched on 19 November 2007. The investment objective of the scheme is to provide long-term growth by investing predominantly in equity / equity related instruments of companies that focus on agriculture and infrastructure development of India. The scheme benchmarked against BSE 500, would invest 65-100% in equity and equity related securities of industries in the Agri & Infra Sector and 0-35% in money market instruments / debt including securitized debt.

ING MF Revised Load Structure For Equity And Balance Schemes

The ING Mutual Fund has revised the load structure under the systematic transfer plan of equity and balanced schemes. Accordingly the entry load under the systematic transfer plan of equity and balanced schemes will be 2.25% for the application below Rs 1 crore and nil for the application above Rs 1 crore.

Deutsche MF Declares Dividend

Deutsche Mutual Fund has announced a dividend of 40% i.e. Rs 4 per unit on the face value of Rs 10 in its open-ended equity diversified fund - DWS Alpha Equity Fund. The objective of the scheme is to generate long term capital growth from investment in diversified portfolio of equity and equity related securities. The record date for the same has been fixed as 25 January 2008. All investors registered under the dividend option of the scheme as on 25 January 2008 will receive this dividend. The NAV under the dividend plan of the scheme as on 23 January 2008 was Rs 21.94. The last dividend announced by the scheme was of 35% in January 2006.

Lotus India AMC Announces Maiden Dividend

Lotus India Asset Management Company today announced a 15% maiden dividend in Lotus India Tax Plan - Dividend Option. The dividend proposed is Rs. 1.50 per unit on a face value of Rs. 10 per unit. The NAV of the Dividend option as on 22 January 2008 was Rs. 13.65. The fund house has notified 28 January 2008 as the record date for the purpose of declaring dividend. Lotus India Tax Plan, an Open Ended Equity-Linked Savings Scheme (ELSS) was the first equity scheme from Lotus India AMC and was launched last year. The Fund has performed admirably since launch by outperforming its benchmark BSE 100 since inception and on a 1 year basis. As of 23 January 2008, the Fund has generated a since inception returns of 38.08% as compared to the benchmark index at 32.85%. In the last one year, the Fund has generated returns of 40.68% as compared to the benchmark at 32.87%. (Returns are CAGR and calculated on an NAV of Rs. 14.42. For this purpose, date of allotment is considered to be the inception date, which is 29 December 2006) Past performance may or may not be sustained in future).

UTI Infrastructure Advantage Fund Series I Debuts At Rs 9.56

UTI Infrastructure Advantage Fund Series I has debuted at Rs 9.56 per unit as against a face value of Rs 10 per unit as on 23 January 2008. The scheme, whose initial public offering closed on 19 December 2007, has re-opened for fresh investments and sales. UTI Infrastructure Advantage Fund UTI - Infrastructure Advantage Fund - Series I, is a three year close-ended equity scheme with an investment objective to provide income distribution and /or medium to long term capital appreciation by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy.

Mutual Funds Continue Buying

Mutual funds (MFs) bought shares worth a net Rs 876.90 crore on Wednesday, 23 January 2008, compared to their buying of Rs 1175.80 crore on Tuesday, 22 January 2008. MFs' net inflow of Rs 876.90 crore on 23 January 2008 was a result of gross purchases of Rs 3034.10 crore and gross sales Rs 2157.20 crore. The 30-share BSE Sensex advanced 864.13 points or 5.17% to 17,594.07 on that day. MFs were net buyers of shares worth Rs 4309 crore in this month, till 23 January 2008.

Quantum MF Unleashes Quantum Gold Fund

Quantum MF has launched Quantum Gold Fund and it is an open-ended exchange traded fund tracking domestic market prices of gold through investments in physical gold. Each unit of Quantum Gold Fund (QFG) will be approximately equal to price of half gram of gold. The investment objective of the scheme is to generate returns that are in line with the performance of gold and gold related instruments, subject to tracking errors. QGF is designed to provide returns that, before expenses, closely correspond to the returns provided by gold. The scheme will invest 90%-100% in physical gold. The scheme will invest 0-10% in money market instruments, short-term corporate debt securities, CBLO, and units of debt and liquid schemes of mutual funds. As the scheme invests 90% to 100% of the net assets into gold, the scheme will, by and large, be passively managed fund.

Barjeel Geojit Unveils Online MF Service

Mumbai: Barjeel Geojit Securities, Dubai, the largest mobiliser of investments in Indian mutual funds and equity services from the UAE, has rolled out its "Mutual Fund Online." This is a service that will allow NRIs to make investments in Indian mutual funds online. This service will be launched in association with BillDesk, an electronic Payments Service Provider. In its first phase, Barjeel's offering under Mutual Funds Online will allow NRIs to invest online into HDFC mutual funds and SBI mutual funds. They can make their payments using their online banking accounts with banks that partner with BillDesk.

Canara Robeco MF Comes Out With New Interval Fund

Canara Robeco MF has come out with new Canbank Robeco Quarterly Interval Fund - Series I fund and it is a debt oriented interval scheme. The objective of the scheme is to generate returns and growth of capital by investing in central and state government securities and other fixed income / debt securities normally maturing within the maturity of interval plan to insulate the portfolio from interest rate volatility. The fund will invest up to 100% in debt securities including securitised debt having rating above AA or equivalent, Central and state government securities and money market instruments.

Quantum Rolls Out Gold Fund

Mumbai: Quantum Mutual Fund plans to roll out its first commodity-related offering - the Quantum Gold Fund Quantum Gold Fund is an open-ended Exchange Traded Fund, which is proposed to be listed on the National Stock Exchange of India (NSE), closely tracking the domestic prices of gold. The New Fund Offer (NFO) of the scheme would be open from Thursday, 24th January, 2008 to Friday, 8th February 2008. During this NFO period, investors can subscribe to the scheme with a minimum investment of Rs 5,000 and further multiples of Rs 1,000. The Quantum Gold Fund seeks to offer investors an innovative, cost-efficient and secure way to invest in gold. The Fund enables investors to buy gold without the hassles of holding and storing physical gold. The Fund will closely track, before expenses, the movement in the price of the underlying asset-physical gold of 0.995 fineness. The Quantum Gold Fund would also be the first Gold ETF in the country without any entry load during the NFO.

Reliance MF Rolls Out New Fixed Horizon Fund

Reliance MF has come out with a fund named as Reliance Fixed Horizon Fund -VII-Series 1. It is a close-ended income scheme with maturity period of 15 months from the date of allotment. The primary investment objective of the scheme is to seek to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the series with the objective of limiting interest rate volatility.

The scheme will invest 0%-70% in money market instruments. The scheme will invest 30%-100% in government securities issued by central and/or state government & other fixed income/ debt securities including but not limited to corporate bonds and securitised debt. Debt securities will also include securitised debt, which may go up to 100% of the portfolio. The total debt derivative exposure would be restricted to 50% of the net assets of the scheme. The fund shall not invest in equity derivatives.

HSBC MF Rolls Out HSBC Emerging Markets Fund

HSBC Mutual Fund has rolled out a fund called HSBC Emerging Markets Fund and it is an open-ended scheme. The objective of the scheme is to provide long-term capital appreciation by investing in India and in the emerging markets, in equity and equity related instruments, share classes and units/securities issued by overseas mutual funds or unit trusts. The fund will invest 80%-100% in units or securities issued by overseas mutual funds or unit trusts of emerging markets. The fund will invest 0%-20% in domestic debt, money market instruments including CBLO and reverse repo and units of domestic mutual funds.

Sahara MF Plans To Unveil Sahara Power Fund

Sahara Mutual Fund plans to launch Sahara Power Fund, a sectoral growth scheme soon, subject to Securities Exchange Board of India's approval. The open ended scheme's corpus will predominantly be deployed in equities and equity-related securities of companies engaged in the business of power generation, transmission, and distribution. It will also invest in shares of companies engaged directly or indirectly in any activity associated with the power sector. The scheme can also invest upto 25% of its corpus in debt and money market instruments.

Standard Chartered MF Unveils Small & Midcap Equity Fund

Standard Chartered Mutual Fund has launched a fund called Standard Chartered Small and Mid cap Equity Fund and it is a close-ended equity scheme. The tenor of the scheme is 36 months with automatic conversion into an open-ended equity on the completion of 36 months.

The investment objective of the Scheme is to generate capital appreciation from a diversified portfolio of equity and equity related instruments. The investors may choose either dividend or growth option. Reinvestment facility is available under dividend option. The scheme charges no entry load as it is of close-ended nature. However, after conversion of the scheme into open ended there will be 2.25% an entry load charged for purchases of less than Rs. 5 crores. During the scheme remains close ended it carries no exit load if the investment redeemed before the date of maturity. After the conversion of the scheme into open-ended, it may charge 1% an exit load for redemption of investment units within 1 year from the date of subscription.

The scheme will invest up to 65-100% in equities and equity related instruments included in the CNX Midcap Index or equity and equity related instruments of companies which have a market capitalization lower than the highest components of CNX Midcap Index, of which small cap stocks shall be 15-50% of net assets and mid cap stocks shall be 50-100% of net assets. The scheme will invest 0-35% in equity and equity related instruments of companies, which have a market capitalization higher than the highest component of CNX Midcap Index i.e. in equity and equity related instruments of companies with market capitalization above the defined small, mid cap stocks. Investments in derivatives may be up to 100% of the net asset of the scheme. Investments in securities lending shall be up to 100% of equity investments in the scheme.

Max New York To Unleash New Products By June

Kolkata: Max New York Life Insurance is looking at rolling out health and pension products by June this year. It also intends to have specialised products for the low income group. The company has embarked on an expansion programme called Mission Everest, under which it plans to add 13 new offices across the country by the end of 2008. Max currently has 17 offices in the country. The company plans to employ two lakh distribution agents by 2011 against the current 30,000. The company's paid-up capital was Rs 907 crore as on December 2007 and its total sum assured was Rs 62,150 crore.

40% Dividend Under DWS Alpha Equity Fund

Deutsche Mutual Fund has announced a dividend of 40% (i.e. Rs 4 per unit on the face value of Rs 10) under the dividend option of DWS Alpha Equity Fund. The record date for the same has been fixed as January 25, 2008. This dividend is being declared after a gap of one year. The last dividend of 35% was paid in January 2007.

Indian Bank Stocks Likely To Benefit MF Scheme

Share prices of Indian Bank went up by 7.37% to Rs. 211.85 reported at BSE at 10.12 a.m. on 23 January 2008 against previous day close of Rs. 197.30.

Birla Sun Life Long Term Advantage Fund - Sr.1 (G) is likely to gain as it has the highest percentage hold of the stocks of the bank compared to its peer groups who have invested in the stocks of the bank. Birla Sun Life Long Term Advantage Fund - Sr.1 (G) was holding 3.49% of its total portfolio size invested in the stocks of the bank as on 31 December 2007. The scheme holds 8.04 lakh units of the bank in December 2007 compared to its peer groups who have invested in the stocks of the bank.

The benefited schemes includes Tata Equity P/E Fund - (G) with 2.75 lakh units holding (3.13% of its portfolio), Lotus India Growth Fund (G) with 2.78 lakh units holding (2.67%) as on December 2007.

However, the scheme like, ING Dividend Yield Fund (G) was holding 80104 units on 30 November 2007, has sold all its 50135 shares to 29969 units as on 31 December 2007 and thus less likely to gain.

Reliance MF Declares Dividend For Interval Fund

Reliance Mutual Fund has announced the declaration of dividend for Reliance Interval Fund – Monthly Interval Fund – Series II under both retail and institutional plan. The record date is set as 28 January 2008. The fund house has decided to distribute 100% of surplus available under both plans as on record date. The NAV for the scheme under retail plan was Rs. 10.0533 as on 21 January 2008. The NAV for the scheme under institutional plan was Rs. 10.0544 as on 21 January 2008.

Reliance Interval Fund – Monthly Interval Fund – Series II is a debt oriented interval scheme. The investment objective of the scheme is to generate regular returns and growth capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility.

UTI MF Unleashes New Fixed Term Income Fund

UTI MF has launched UTI Fixed Term Income Fund-Series IV Plan II (January 2008-15 Months). This is a close ended income scheme with tenure between 12 to 24 months. The objective of the scheme is to generate income by investing in a portfolio of fixed income securities normally maturing in line with the duration of the scheme. The fund will invest 30-100% in debt including securitised debt. The scheme will invest 0-70% in money market instruments. The investment in securitised debt will be up to 100%.

Lotus India MF Unveils FMP

Lotus India Mutual Fund has rolled out Lotus India Fixed Maturity Plans- 3 Month-Series XXII. This scheme is a close ended debt fund with maturity of 90 days from the date of allotment. 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. The fund will invest 0%-100% in money market instruments including reverse repo. The investment in government securities issued by the central government and/or state government(s) will be 0%-50%. The fund will invest 0%-100% debt instruments such as bonds and debentures. The investment in securitised debt will be up to 50%.

Canara Robeco Eyes 3% Fund Market Share By 2010

Mumbai: Canara Robeco Mutual Fund sees the Indian fund industry tripling assets to Rs 15 trillion in the next five years and expects to corner a 3 per cent market share by 2010, up from 0.5 per cent now, a senior executive said on Monday.

Sanjay Santhanam, director, sales and marketing, said his firm was investing in its brand and workforce and planned to offer three new funds, including a global fund this year, to attract retail investors who might keep raising exposure to mutual funds.

The fund house, a joint venture between Canara Bank and Dutch fund giant Robeco, part of privately-held Rabobank Group, managed about Rs 2700 crore in the Rs 5.5 trillion domestic fund industry at end-December.

"We hope that in three years time it will grow to something like 25,000 crores," Santhanam, who joined recently from Sundaram BNP Paribas Asset Management, told Reuters in an interview.

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"In the past, we were not very visible to the distributors because we were smaller in terms of our sales team...we are making that change."

He said the sales team would expand to 75-80 people by end of this year from 23 when Robeco bought a 49 per cent stake in the fund arm of state-run Canara Bank in March last year.

The firm is hunting for a chief investment officer, whom it expects to hire by the start of next fiscal year, and triple headcount in the investment management team to 15 people.

He said the firm would be present at 30 centres by end-2008 up from 21 now, have better online presence and use public sector banks for distribution to attract retail investors whom it saw making only 40 per cent of the industry but key to future growth.

The industry, which attracted global asset managers such as American International Group Inc and JPMorgan last year, has seen its assets under management surge nearly four-and-a-half times to $140 billion in the last five years.

A 43 per cent annual rise in the key BSE index in the past five calendar years has lured droves of investors to funds, which gobbled up 4.8 per cent of household savings in 2006/07, from 0.4 per cent two years earlier, central bank data showed.

"Gross financial savings are going up at a frenetic pace, rising 21 per cent per year in the last five years. That itself is going to ensure that even if the percentage remains the same you have at least 20 per cent (industry) growth," he said.

Investors would keep shifting money away from small-savings and government securities to mutual funds, Santhanam said, adding new alternative offerings such as real estate, commodities and structured products would contribute to the industry's growth.

Kotak MF Declares 60% Dividend For Opportunities Fund

Kotak Mahindra Mutual Fund has announced the declaration of dividend at the recommended gross rate of 60% i.e. Rs 6.00 per unit on the face value of Rs 10 under for Kotak Opportunities scheme- an open ended equity growth fund. The record date is set as 25 January 2008.

The NAV for the scheme under retail plan was recorded at Rs. 29.953 on 17 January 2008.

DSP ML MF Declares 70% Dividend On Equity Fund

DSP Merrill Lynch Mutual Fund has announced the dividend under regular plan of DSP Merrill Lynch Equity Fund. The record date for the declaration of dividend is 25 January 2008. The quantum of dividend will be 70% i.e. Rs 7 per unit on the face value of Rs 10. The NAV for the scheme under institutional plan was recorded at Rs. 61.725 on 18 January 2008.

DSP Merrill Lynch Equity Fund is an open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India.

DBS Chola Small Cap Fund Debuts At Rs 9.41

DBS Chola Small Cap Fund has debuted at Rs 9.41 per unit as against a face value of Rs 10 per unit. The scheme, whose initial public offering closed on 20 December 2007, has re-opened for fresh investments and sales.

DBS Chola Small Cap Fund is a 3 years close-ended equity fund with an automatic conversion into an open ended scheme on expiry of 3 years from the date of allotment. The scheme was launched on 20 November 2007.

The objective of the scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies with small market capitalization. Small-cap companies for the purpose of the fund are companies whose market capitalization is in between the highest and lowest market capitalization of small-cap companies on BSE Small Cap Index at the time of investment.

Mutual Funds In Selling Mode

Mutual funds (MFs) sold shares worth a net Rs 271.90 crore on Friday, 18 January 2008, compared to their buying of Rs 460.90 crore on Thursday, 17 January 2008.

MFs net outflow of Rs 271.90 crore on 18 January 2008 was a result of gross purchases of Rs 1076.80 crore and gross sales Rs 1348.70 crore. The 30-share BSE Sensex fell 687.12 points or 3.49% to 19,013.70 on that day.

MFs were net buyers of shares worth Rs 257.40 crore in this month, till 18 January 2008.

LIC MF Set To Launch Infrastructure Fund Series 1

LIC Mutual Fund is launching LIC MF Infrastructure Fund Series I, a 3-year close ended equity scheme on 04th February 2008. The abstract from the offer document filed with Sebi. A 36-months close-ended equity scheme with an automatic conversion into open-ended scheme after completion of 36 months from the date of allotment. The investment objective of the scheme is to provide long term growth in capital by investing predominantly in equity / equity related instruments of companies directly or indirectly involved in the infrastructure sector and debt and money market instruments.

The scheme offers investment under two options namely dividend & growth. Under dividend option, the unit holder can choose either dividend payout or reinvestment. The scheme will invest 70-100% of its portfolio in equity and equity related instruments. The scheme will invest 0-30% in debt and money market instruments. The plan may invest up to 30% of debt portfolio in securitised debt.

Taurus MF Amends Minimum Application Amount For Seven Schemes

Taurus mutual fund has revised the offer document for its seven schemes namely Taurus the Starshare, Discovery Stock Fund, Bonanza Exclusive Growth Scheme, Taurus INFRA - Tip, Libran Bond Fund, Libra Gilt Fund and Taurus Liquid Fund. The fund has amended the minimum application amount under all this schemes. Currently the minimum application amount is Rs 1000 and in multiple of Rs 1000 thereafter. From 21 January the minimum application amount will be Rs 1000 and in multiple of Re 1 thereafter.

Standard Chartered MF Files Offer Document

Standard Chartered MF is looking at unveiling Fixed Maturity Plan Fifteen Months Series. It is a close-ended Income scheme. There are 2 Plans in the Scheme namely Standard Chartered Fixed Maturity Plan - Fifteen Months Series 1 and Series 2. Their will 2 sub plans in each of the plans viz Plan A and Plan B. The minimum application amount under plan A is Rs. 5000 and in multiple of Re 1 thereafter. The minimum application amount under plan B is Rs. 100000 and in multiple of Re 1 thereafter. The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments.

ICICI Prudential MF Declares Dividend For Interval Fund

ICICI Prudential Mutual Fund has announced 24 January 2008 as the record date for the declaration of dividend under ICICI Prudential Interval Fund II - Quarterly Interval Plan -A. The quantum of dividend will be 100 % of distributable surplus available on the record date. The NAV of ICICI Prudential Interval Fund II - Quarterly Interval Plan -A was recorded at Rs 10.1683 as on 17 January 2008.

Benchmark MF Files Offer Document

Benchmark MF is planning to launch Benchmark S & P CNX 500 Fund and it is an open ended Index scheme. It is designed to provide returns that closely correspond to the returns of stocks as represented by S&P CNX 500. The scheme has a growth option and dividend option. The dividend option has two facilities dividend payout and dividend reinvestment. The minimum application amount under the scheme is Rs. 10000 and in multiple of Re 1 thereafter. The investment objective of the scheme is to generate capital appreciation through equity investments by investing in securities, which are constituents of S&P CNX 500.

Change In Registrar For UTI Mutual Schemes

UTI Mutual Fund has announced a change in registrar from Computer Age Management Services to Karvy Computershare Private Limited for its two schemes. The change is effective from 22 January 2008 in the following two schemes: S & P CNX Nifty UTI Notional Depository Receipts Scheme (SUNDER) and UTI Gold Exchange Traded Fund (UTI Gold ETF).

UTI MF Comes Out With Dividend For Interval Fund

UTI Mutual Fund has announced the dividend under dividend option of UTI Fixed Income Interval Fund - Monthly Interval Plan - Series I. The record date for the declaration of dividend is 21 January 2008. The quantum of dividend will be 100 % of distributable surplus available on the record date. The NAV for the scheme under retail plan was recorded at Rs. 10.0736 on 17 January 2008. The NAV for the scheme under institutional plan was recorded at Rs. 10.0736 on 17 January 2008. UTI Fixed Income Interval Fund - Monthly Interval Plan - Series I is a debt oriented interval scheme with income-oriented portfolio consisting of government securities and other fixed income debt securities. The scheme launched with aims to generate regular returns by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the plan.

LIC MF Top 100 Fund Mops Up Rs 592 Crore

LIC Mutual Fund has collected Rs 592 crore through LIC Top 100 Fund. Subscriptions to the close-ended equity scheme, launched on 15 November, closed on 14 December 2007. The 36-month scheme will be rendered open-ended on maturity. At least 80% of its investments will be made in 100 stocks of companies that track CNX Nifty and Nifty Junior indices together. The remaining corpus will be deployed in debt market securities.

Taurus MF Revises Minimum Application Amount For Seven Schemes

Taurus mutual fund has revised the offer document for its seven schemes namely Taurus the Starshare, Discovery Stock Fund, Bonanza Exclusive Growth Scheme, Taurus INFRA – Tip, Libran Bond Fund, Libra Gilt Fund and Taurus Liquid Fund. The fund has amended the minimum application amount under all this schemes.

Currently the minimum application amount is Rs 1000 and in multiple of Rs 1000 thereafter. From 21 January the minimum application amount will be Rs 1000 and in multiple of Re 1 thereafter

LIC MF Top 100 Fund Mops Up Rs 592 Crore

LIC Mutual Fund has collected Rs 592 crore through LIC Top 100 Fund. Subscriptions to the close-ended equity scheme, launched on 15 November, closed on 14 December 2007. The 36-month scheme will be rendered open-ended on maturity. At least 80% of its investments will be made in 100 stocks of companies that track CNX Nifty and Nifty Junior indices together. The remaining corpus will be deployed in debt market securities.

LIC MF Set To Launch Infrastructure Fund Series 1

LIC Mutual Fund is launching LIC MF Infrastructure Fund Series I, a 3-year close ended equity scheme on 04th February 2008. The abstract from the offer document filed with Sebi.

Snapshot

Name of Fund: LIC Infrastructure Fund Series 1

Scheme: A 36-months close-ended equity scheme with an automatic conversion into open-ended scheme after completion of 36 months from the date of allotment.

Objective: The investment objective of the scheme is to provide long term growth in capital by investing predominantly in equity / equity related instruments of companies directly or indirectly involved in the infrastructure sector and debt and money market instruments.

Investment options: The scheme offers investment under two options namely dividend & growth. Under dividend option, the unit holder can choose either dividend payout or reinvestment.

Asset Allocation: The scheme will invest 70-100% of its portfolio in equity and equity related instruments. The scheme will invest 0-30% in debt and money market instruments. The plan may invest up to 30% of debt portfolio in securitised debt.

Face Value: Rs 10.

Entry Load: Nil. After conversion into an open-ended scheme, there will be 2.25% entry load charged for investment up to Rs 1 crore and no entry charge for investment above Rs 1 crore.

Exit Load: The units will be redeemed only after recovering the balance proportionate unamortized issue expenses. There will be no exit load charged after the conversion into open-ended.

Minimum Investment Amount: The minimum investment amount is Rs. 5000 and in multiples of Re.1 thereafter.

Sterlite Industries India Loses By 3.92%

Share prices of Sterlite Industries India lost by 3.92% to Rs. 889.90 reported at BSE at 10.09 a.m. on 17 January 2008 against previous day close of Rs 926.25. Sundaram BNP Paribas Select Focus - (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. Sundaram BNP Paribas Select Focus - (G) has 7.00% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 4.58 lakh units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company. It is followed by LICMF Equity Fund - (G) with 75000 units (6.11% of its portfolio), Franklin India Opportunities Fund - (G) with holding of 5.99 lakh units (5.88%) as on 31 December 2007.

HDFC MF Launches 90 Days Plan Under HDFC FMP -Series VI

HDFC Mutual Fund launched 90 Days plan under HDFC FMP -Series VI. The investment objective of the fund is to generate regular income through investments in debt, money market instruments, and government securities. HDFC Fixed Maturity Plan 90 Days January 2008 offers wholesale plan and retail plan with growth and dividend option.

Rashtriya Chemicals & Fertilizers Stocks Likely To Benefit MF Scheme

Share prices of Rashtriya Chemicals & Fertilizers went up by 3.44% to Rs. 127.95 reported at BSE at 10.01 a.m. on 17 January 2008 against previous day close of Rs. 123.70. Birla Sun Life '95 Fund (G) is likely to gain 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 Sun Life '95 Fund (G) was holding 3.46% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 6.00 lakh units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company. It is followed by Birla Dividend Yield Plus (G) with holing of 8.97 lakh units (2.86% of its portfolio), Tata Contra Fund (G) with 4.00 lakh units holding (2.86%) as on December 2007.

Introduction Of Institutional Plan In DSPML Technology.Com

With effect from January 15, 2008, DSPML Mutual Fund has introduced an institutional plan under DSPML Technology.com. After the introduction, the existing plan will be referred to as DSPML Technology.com-Regular Plan.

The following would be applicable for the institutional plan:

The eligible investors under the institutional plan would be banking companies, public financial institutions, insurance companies, FIIs, pension funds, portfolio managers NBFCs and provident funds.

The minimum application amount would be Rs 5 crore and subsequent purchase for a minimum amount of Rs 5 lakh.

There will no entry or exit load.

The estimated recurring expenses would be 1.45 per cent on an annual basis.

It will offer growth and dividend options. The dividend option will offer payout and reinvestment facility.

Benchmark MF Files Offer Document

Benchmark Mutual Fund files offer document to launch Benchmark Structured Fund Series I & II. Benchmark Structured Fund - Series I and II are close ended debt Schemes, with maturity period of 36 months and 48 months, respectively, which are listed on the Capital Market Segment (CM) of the National Stock Exchange of India Ltd (NSE).

Change In Registrar For UTI Mutual Schemes

UTI Mutual Fund has announced a change in registrar from Computer Age Management Services to Karvy Computershare Pvt Ltd for some of its schemes. The change is effective from January 16, 2008 in the following schemes: UTI Capital Protection Oriented Scheme - Series I, UTI India Lifestyle Fund, UTI Long Term Advantage Fund - Series I and UTI Wealth Builder Fund. In case of UTI Children's Career Balanced Plan, UTI Leadership Equity Fund and UTI Retirement Benefit Pension Fund, the change in registrar is effective from January 21, 2008. Their books will remain closed from January 16, 2008 to January 18, 2008.

UTI Mutual Announces Closure Of UTI SCUP

UTI Mutual Fund has announced the closure of UTI Senior Citizen Unit Scheme. The scheme will be terminated on February 18, 2008. UTI Mutual Fund has announced an alternate health insurance product of New India Assurance Company to the members upto the age of 58 years, in lieu of UTI SCUP. However, for the members above the age of 58 years, New India Assurance Company will continue to provide the hospitalisation cover as per the existing arrangement.

ICICI Prudential Launches FMP Series

Although Citi and Merrill Lynch were the first financial institutions to launch the concept of Equity Linked Debentures in India, ICICI Prudential is the first mutual fund house to bring this idea within the reach of retail investors. ICICI will infuse the largest part of this FMP in equity linked debentures, bonds whose periodic interest payments are linked to Nifty index. So if Nifty rises 50% in the year, the issuer of these bonds will pay 50% of the investments as interest, to the fund that year. The only caution being that the fund is closed ended and half yearly exits will call penalties as high as 5% of the corpus. Besides it will be taxed like a debt fund, so profits booked beyond a year will call capital gains tax of 10%, decreasing gains. The new fund offer closes on February 8.

ICICI Prudential Emerging STAR Fund Announces 20pc Dividend

The ICICI Prudential Asset Management Company has announced a dividend of 20% (Rs.2 per unit or 20% on face value of Rs 10 each) in ICICI Prudential Emerging STAR (Stock Targeted At Returns) Fund scheme. The record date has been fixed as Friday - January 18, 2008. The NAV of the scheme as on January 16, 2008 is Rs.28.64. 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. Mutual Fund investments are subject to market risks. Please read the offer documents carefully before investing.

ICICI Prudential MF Files Offer Document

ICICI Prudential Mutual Fund files offer document to launch ICICI Prudential Long Short Fund. It is open-ended equity fund. There are two options available under the scheme viz. retail option and institutional option. The retail option will have growth and dividend sub-options with dividend payout and dividend reinvestment facilities. The institutional option will have only growth sub-option. The retail option with dividend reinvestment facility shall be the default option. The minimum application amount under retail plan is Rs. 5000 and in multiple of Re 1 thereafter.

ICICI Prudential Long Short fund is an open-ended equity scheme that seeks to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities and the balance in debt securities and money market instruments. Under retail plan the scheme will charge an entry load of 2.25% for the investment less than Rs 5 crore where as there will not be any entry load for the investment above Rs 5 crore and more. The scheme does not charge any entry load for the investment made under institutional plan.

Extension Of NFO Of ABN Amro Quarterly Interval Fund Plan L

ABN Amro Mutual Fund extends NFO closing date of ABN Amro Quarterly Interval Fund Plan L to 1 January 2008. The primary objective of the scheme launched would be to seek to generate steady returns through investments made in a basket of fixed income securities, with a provision to offer liquidity at periodic interval. The fund will invest in 0-100% in debt instruments such as bonds and debentures with low to medium profile of risk and 0-60% in securitised debt with exposure in debt derivatives up to 100%. The fund can also invest 0-100% in money instruments.

ABN Amro MF Revised Load Structure For Opportunities Fund

ABN Amro mutual fund has announced the revision in the load structure for ABN Amro Opportunities Fund. According to the revised load structure the fund will charge an entry load of 2.25% for the investment amount of less than Rs 5 crore. There will not be any entry load for the investment above Rs 5 crore. The scheme will charge a CDSC (Contingent Deferred Sales Charge) of 1.00% for the investment less than Rs 5 crore and if the investment is redeemed within 6 months from the date of investment. However the scheme will not charge any CDSC for the investment above Rs 5 crore. There will not be any entry load for the direct applications received by Asset Management Company.

Mutual Funds Step Up Sales

In continuation of the recent trend, mutual funds pressed sales in equities on Monday, 14 January 2008. Mutual funds sold shares worth a net Rs 551.40 crore on Monday, 14 January 2008 which was much higher than their outflow of Rs 274.20 crore on Friday, 11 January 2008. Mutual funds' outflow of Rs 551.40 crore on 14 January 2008 was a result of gross purchases Rs 857.70 crore and gross sales Rs 1409.10 crore. Sensex lost 99.40 points or 0.48% to 20728.05 on that day, as index heavyweights ICICI Bank and Infosys Technologies drifted lower. Mutual funds were in buying mode in equities at the beginning of the year. They turned sellers recently. Mutual funds bought shares worth a net Rs 647.40 crore by the first few days of January 2008.

Apollo Tyres Stocks Likely To Benefit MF Scheme

Share prices of Apollo Tyres went up by 4.43% to Rs. 57.80 reported at BSE at 10.14 a.m. on 15 January 2008 against previous day close of Rs. 55.35. JM Auto Sector Fund - (G) is likely to gain 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. JM Auto Sector Fund - (G) was holding 7.87% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 1.98 lakh units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company.

Lotus India MF To Offer Four New Quant Funds In 2008

Lotus India Mutual Fund, the only Indian firm to offer quant funds, plans to launch at least four more such funds in 2008 and is exploring models designed around mid-cap and small-cap stocks. Two plans will be based on computer-based models developed by overseas firms, while testing is underway for some in-house versions. Lotus is talking to two foreign banks for quant models as well as a U.S.-based consultant who designs models for hedge funds. Quant funds use computer-based models to crunch vast amounts of historical data using mathematical techniques to evaluate risk and predict future security movements. This is unlike fundamental and technical analysis that are largely subjective.

Lotus India MF Launches New FMP

Lotus India Mutual Fund launched Lotus India Fixed Maturity Plans- 15 Months-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. The fund will invest 0%-100% in money market instruments including reverse repo. The investment in government securities issued by the central government and/or state government(s) will be 0%-50%. The fund will invest 0%-100% debt instruments such as bonds and debentures. The investment in securitised debt will be up to 50%. Investment in fixed income derivatives will be up to 50% of the net asset of the scheme.

ICICI Prudential MF Declares Dividend For Two Schemes

ICICI Prudential Mutual Fund has announced 18 January 2008 as the record date for the declaration of dividend under dividend options of ICICI Prudential Emerging S.T.A.R. (Stock Targeted At Returns) Fund and ICICI Prudential Tax Plan (the Scheme). The fund house has declared a dividend of 20% i.e. Rs 2 per unit on face value of Rs 10 - for ICICI Prudential Tax Plan. It has also declared a dividend of 20% i.e. Rs 2 per unit on face value of Rs 10 -for ICICI Prudential Emerging S.T.A.R. (Stock Targeted At Returns) Fund. The record date for both the scheme has been fixed as 18 January 2008. The NAV of ICICI Prudential Tax Plan was at Rs. 27.89 as on 10 January 2008 whereas the NAV of ICICI Prudential Emerging S.T.A.R. (Stock Targeted At Returns) Fund was at Rs. 29.32 as on 10 January 2008.

JM Financial MF Launches JM Core 11 Fund-Series I

JM Financial Mutual Fund launched JM Core 11 Fund-Series I. It is a three-year close-ended equity oriented growth scheme with multiple series launched thereafter at such periods as may be decided by the AMC. The investment objective of the fund is to provide long-term growth by investing predominantly in a concentrated portfolio of equity and equity related instruments of companies. The fund will invest 65%-100% in equity and equity related securities with medium to high-risk profile. The fund will invest 0%-35% in money market and debt instruments including securitised debt. Securitised debt will not include foreign securitized debt. Exposure to derivatives would be capped at 50% of equity portfolio of the scheme.

JM Financial MF Declares Dividend For Two Schemes

JM Financial Mutual Fund has announced 18 January 2008 as the record date for the declaration of dividend under dividend option of JM Arbitrage Advantage Fund and JM Equity and Derivative Fund. The fund house has declared a dividend of 2.00% i.e. Rs 0.20 per unit on face value of Rs 10 - for JM Arbitrage Advantage Fund. It has also declared a dividend of 2.00% inclusive of dividend distribution tax i.e. Rs 0.20 per unit on face value of Rs 10 -for JM Equity and Derivative Fund. The record date for both the scheme has been fixed as 18 January 2008.

SBI MF Declares Dividend

The SBI mutual fund has annouced the declaration of dividend under Magmum Multicap Fund. The record date for the declaration of dividend under Magnum Multicap Fund is 18 January 2008. The quantum of dividend is 25% i.e. Rs. 2.50 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 19.85 as on 10 January 2008. Magnum Multicap Fund is open ended growth fund with an objective to provide investors with opportunities for long term growth in capital along with the liquidity of open end scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum end in debt and money market instruments.

AIG MF Files Offer Document

AIG Mutual Fund Plans to launch AIG Short Term Fund. It is an open-ended income scheme. The scheme offers retail and institutional plan. The scheme offers investors growth option, bonus option and dividend option under both the plans. The dividend option offers dividend payout and dividend re-investment facilities. The minimum application amount under retail plan is Rs. 5000. Under institutional plan, the minimum investment is Rs 1 crore.

ABN Amro MF Revised Load Structure For Opportunities Fund

ABN Amro mutual fund has announced the revision in the load structure for ABN Amro Opportunities Fund. According to the revised load structure the fund will charge an entry load of 2.25% for the investment amount of less than Rs 5 crore. There will not be any entry load for the investment above Rs 5 crore.

The scheme will charge a CDSC (Contingent Deferred Sales Charge) of 1.00% for the investment less than Rs 5 crore and if the investment is redeemed within 6 months from the date of investment. However the scheme will not charge any CDSC for the investment above Rs 5 crore.

There will not be any entry load for the direct applications received by Asset Management Company.

ING MF Files An Offer Document

ING Mutual Fund Plans to launch ING Long Term Fixed Maturity Plan. It is a close-ended bond scheme. The scheme offers two series- ING Long Term FMP - I and ING Long Term FMP - II. The investment objective of the scheme is to generate returns comparable with alternative fixed-income instruments of similar maturity. This close-ended bond scheme has two plans i.e. retail and institutional plans. Investors under the scheme may choose between a growth option and dividend option.

Mfs Decrease Stake In Engineering Cos In Q3

Mumbai: Mutual funds have decreased their holdings in several engineering companies in the December 2007 quarter on a sequential basis, and that's despite the strong growth hoped from players in this sector in Q3 FY08. Larsen & Toubro had also appreciated 20 per cent during this period on the Street. In the case of foreign institutional investors (FII), there is no definitive trend they have decreased their stake in some engineering companies in Q3 FY08 on a sequential basis, while in others they have increased their stake. Meanwhile, in the case of Siemens, mutual fund holding in this engineering company was 8.05 per cent at the end of the December 2007 quarter, as compared to 8.4 per cent at the end of the September 2007 quarter. Mutual fund holding in Thermax had also fell 100 basis points on a sequential basis to 13.02 per cent at the end of December 2007 quarter.

ICICI Prudential AMC Unveils 2 New Funds

Mumbai: ICICI Prudential AMC on Dec 14 declared the roll out of two of their new funds, ICICI Prudential Fixed Maturity Plan Series 33- Plan A and ICICI Prudential Fusion Fund Series-III. The ICICI Prudential Fixed Maturity Plan is the country's first ever equity linked fixed maturity plan. ICICI Prudential Fusion Fund is a three-year close-ended diversified equity fund designed to infuse in companies across market capitalisations and having long-term growth prospects. The new fund offer of the fixed maturity plan opens on January 8 and closes on February 8. The balance will be infused in debt securities with fixed and floating interest rates. While there is no exit load for this fund, there is an exit load of five per cent. The other fund that the AMC will be unveiling, that is, the ICICI Prudential Fusion Fund Series-III, the new fund offer will open on January 8and will close on February 21. Approaches such as pre-IPO investment, companies taking part in secular growth opportunities due to the growth in demand, taking stakes in select small companies to facilitate their market re-rating and early identification of companies that are set to transition into a new growth orbit

Entry Load Waiver In MF To Bring Loaded Gains

Recently, the Securities and Exchange Board of India came out with the notification to waive entry load from the mutual fund schemes. The rule says if a mutual fund investment application is submitted directly to the asset management company at its office, then no entry load will be deducted from the investment amount.

This was much awaited in Indian investment scenario, as it will not only increase the resultant investment corpus of investors, but may also induce more investment. A boon to asset management companies too!

A loaded fund will always be two steps behind than an unloaded fund. A good way to think about load versus no-load mutual fund investing is to imagine a race track.

The no-load mutual fund gets to start on the regular start line (imagine a race track). The loaded mutual fund must start a number of strides back. Assuming both these funds travel at equal speeds, which fund will cross the finish line first?

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The answer is obvious-the no-load fund! When you pay a commission for the purchase of your fund, you automatically start off with a loss.

For example, if you start off by investing Rs 10,000, but you put it into a loaded fund with a 2 per cent front-end load, you are really only investing Rs 9,800.

What do you get for your Rs 200? Absolutely nothing. A salesperson might try to convince you otherwise, but actually there is no benefit compared to a no-load fund where all your hard earned Rs 10,000 would be put to work.

If these two funds are equally successful in the future, the load fund won’t ever catch up. In fact, because of compounding, it will fall farther and farther behind.

If the no-load earns a 10 per cent return in the first year, the load fund manager would have to earn at least 12.25 per cent on his portfolio just to get you even with that no-load fund, and with the increasing tenure this gap widens. The irony is that the load fund manager has no incentive to do that. He has no reason to care that you paid a commission. He simply sees you as a Rs 9,800 investor.

The load/commission is not going towards the management of the fund. The commission doesn’t buy you special privileges. Entry load on mutual fund scheme is a “money eater” at the inception and a burden on the investment to come at par with no load fund if not better.

There’s a big difference between these two types of funds. Sometimes it’s the difference between whether the investor makes money or whether a salesperson makes money.

Any investor investing his hard earned money in mutual fund schemes had to pay commission to the asset management companies upfront, which, in turn, is passed back to the distribution houses and agents for their services to the investors helping them to invest with them.

This initial cut would have been justifiable had the advice given by the agents was appropriate and on the basis of financial planning. But at most of the times this is merely an earning option of the investment advisors than heeding at the real need of the investors.

In advanced nations, like the US no-load funds are prevailing since long. This has enhanced the investment quantum and instigated the investment desire among the small-time investors as with no-load funds unscrupulous investment advisors makes an exit to pave a way for qualified financial planners, like certified financial planners (CFP), to advise the investors for a fee than for the pass back of the entry load from asset management companies in form of commission. With the fee charge, they tend to get unbiased and get responsible towards the investors for their right choice of investment. This usually would be on either specific investment plan or comprehensive financial planning.

The best advice:

Figure out what is really the right fund for you to own. Start with the asset allocation process to determine the best mix of investments for your situation.

Then ask yourself:

Does this fund fit within the plan I should have?

Does it have a good record?

Reputable management?

Reasonable fees?

In summary, the presence of a load is not a reason enough to sell or keep a fund. The decision depends on the details of the load, your own circumstances and needs, and the quality of the fund itself. A CFP can help you to do it. A CFP will construct an investment plan and will also weed out the chaff from your portfolio.

It’s too simple to say that all no-load funds are superior to all load funds. An investor is obviously better off in a top load fund than in a crummy no-load. But the right advice and direction to such top load fund is required. Globally, CFPs are most sought after for such well-informed and qualified advice.

Bombay Dyeing & Manufacturing Company Stocks Likely To Benefit MF Scheme

Share prices of Bombay Dyeing & Manufacturing Company went up by 2.10% to Rs. 958.05 reported at BSE at 10.11 a.m. on 14 January 2008 against previous day close of Rs. 938.35.

ABN Amro Sustainable Development Fund (G) is likely to gain 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. ABN AMRO Sustainable Development Fund (G) was holding 3.48% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 24,068 units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company.

It is followed by Birla Sun Life Long Term Advantage Fund - Sr.1 (G) with 1.67 lakh units (2.78% of its portfolio), Reliance Regular Savings Fund - Equity (G) with 1.50 lakh units holding (2.75%) as on December 2007.

Four mutual fund schemes have completely exited from Bombay Dyeing & Manufacturing Company in December 2007. Among them, the schemes like, HSBC Unique Opportunities Fund (G) was holding 1.61 lakh units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to gain. Birla Midcap Fund (G) was holding 62738 units on 30 November 2007, has sold all its shares as on 31 December 2007 and thus less likely to benefit.

Adani Enterprises Losses By 3.42%

Share prices of Adani Enterprises lost by 3.42% to Rs. 1037.95 reported at BSE at 10.34 a.m. on 14 January 2008 against previous day close of Rs 1074.70.

LICMF Children's Fund 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. LICMF Children's Fund has 4.80% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 6999 units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company.

It is followed by Reliance Growth Fund - (G) with 23.71 lakh units (4.25% of its portfolio), DBS Chola Midcap Fund (G) with holding of 13459 units (3.95%) as on 31 December 2007.

Two mutual fund schemes exited from Adani Enterprises in December 2007. However, the scheme Sundaram BNP Paribas Growth Fund - (G) was holding 28775 units in November 2007, has sold all its shares in December 2007 and thus likely to benefit most among others. Sundaram BNP Paribas India Leadership Fund - (G) was holding 28932 units in November 2007, has sold all its shares as on 31 December 2007 and thus likely to gain.

SBI MF Declares Dividend

The SBI mutual fund has annouced the declaration of dividend under Magmum Multicap Fund. The record date for the declaration of dividend under Magnum Multicap Fund is 18 January 2008. The quantum of dividend is 25% i.e. Rs. 2.50 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 19.85 as on 10 January 2008Magnum Multicap Fund is open ended growth fund with an objective to provide investors with opportunities for long term growth in capital along with the liquidity of open end scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum end in debt and money market instruments.

ICICI Pru Services Industries: Construction Trebled

ICICI Pru Services Industries is an open-ended equity scheme that seeks to infuse in companies belonging to the service industries across various market capitalisation segments. Over the six months ended December 2007, its assets expanded 50 per cent and the NAV moved up 40 per cent. Here is a look at the portfolio churn in the above period. In the past six months, the fund trebled its exposure to the construction sector. Holdings in Patel Engineering surged four-fold, the stock cornering 7 per cent of the portfolio.

ICICI Bank, HDFC Bank and Bank of Baroda were accumulated while PSU banks Andhra Bank, Punjab National Bank and Union Bank of India moved out. State Bank of India was added afresh. Asset allocation to the IT sector declined marginally. Holdings in mid-cap stock Nucleus Software were pruned by more than 50 per cent even as MphasiS BFL Software moved out completely. NIIT and Satyam Computer Services were new additions. The fund appeared to vary its strategy in the capital goods space. During the market correction in February 2007, exposure to the sector, which was 11 per cent of the portfolio, was brought down substantially.

UTI MF Rolls Out Fixed Term Income Fund - Sr. IV Plan 1

UTI Mutual Fund launched UTI Fixed Term Income Fund- Series IV-Plan 1, a close-ended income scheme. The scheme, which will have a maturity of 15 months, opens for subscription on 10 January 2008 and closes on 16 January 2008. Being a close-ended scheme, it will not have any entry load. However, an exit load of 3% or unamortized expenses, whichever is higher will be levied if redeemed before due date.

The investment objective of the scheme is to generate regular returns by investing in a portfolio of fixed income securities. The scheme will invest 30% - 100% in debt instruments including investment in securitised debt up to 100%. The investment in money market instrument will be up to 70%.

ABN Amro MF Launches New FMP

Name of fund: ABN Amro Fixed Term Plan- Series 10-Plan B

Scheme: This is a close-ended income scheme with maturity of 432 days.

Objective: The investment objective of the fund is to achieve growth of capital through investments made in a basket of fixed income securities in line with the duration the scheme.

Asset allocation: The fund would invest up to 100% of net assets in debt instruments. There will be investment of 0-100% in money market instruments. Debt instruments may include securitised debt up to 60% of the net assets and exposure in debt derivatives up to 100%. The scheme shall limit its exposure to investment in foreign debt securities up to a maximum of 10% of its net assets. The scheme will not invest in equity and equity related securities.

Offer opens: 11 January 2008

Offer closes: 25 January 2008

Face value: Rs 10 per unit.

Investment Options: The scheme offers regular and institutional plan. The scheme offers investors growth option and dividend option under both the plans. Dividend option includes calendar monthly, calendar quarterly, calendar half yearly, calendar yearly, and dividend on maturity option. The dividend option offers dividend payout and dividend re-investment facilities.

Entry load: Due to the scheme is of close-ended nature there will be no entry load charged.

Exit load: The fund would charge an exit load of 2.00% if the units get redeemed before maturity.

Minimum Investment Amount: The minimum investment amount under regular plan is Rs 25,000 and in multiples of Re 1 thereafter. The minimum investment amount under wholesale scheme is Rs 25 lakh and in multiples of Re 1 thereafter.

Target amount: Rs 1 crore.

Fund Manager: Mr. Alok Singh and Mr. R. Sivakumar

ICICI MF Unleashes New Fusion Fund Series

ICICI Mutual Fund has unveiled a new fund called ICICI Prudential Fusion Fund Series-III and it is a close-ended diversified equity scheme with a maturity period of 3 years. The investment objective of the Plan under the scheme is to seek to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of companies across large, mid and small market capitalization. Asset Allocation: The fund would invest 70-100% of corpus in equity and equity related securities. There will be 0-30% investment in debt and money market instruments including cash equivalent. The investment in securitised debt will be up to 50% of the debt portfolio and derivative instruments to the extent of 80% of the net assets. It is proposed to make investments in ADR/GDR to the extent of 20% of the net assets.

ICICI MF Launches New FMP Series

ICICI MF has rolled out ICICI Prudential Fixed Maturity Plan - Series 42 - Sixteen Months Plan, it is a close-ended debt fund. The investment objective of the scheme is to seek to generate returns by investing in a portfolio of fixed income securities/ debt instruments normally maturing in line with the time profile of the scheme.

The fund would invest up to 100% in money market instruments, short term and medium term debt securities/debt instruments and securitised debt. The investments in central and state government securities will be in normal circumstances limited to 50% of the net assets of the plan. The investment in securitised debt will be 50% of the net asset and derivative instruments to the extent of 50% of the net assets of the scheme. It is proposed to make investments in debt securities having tenure of 480 days.

ICICI MF Comes Out With New FMP - Series 33- Plan A

ICICI MF has launched a new scheme and it is a close-ended debt fund. The maturity profile of the plan would be 1106 days. The investment objective of the Plan under the scheme is to seek to invest in short term and medium term debt instruments with fixed and floating payouts linked to the equity indices normally maturing in line with the time profile of the plan. The fund would invest up to 100% in money market instruments, short term and medium term debt securities/debt instruments and securitised debt. The investments in central and state government securities will be in normal circumstances limited to 50% of the net assets of the scheme. The investment in securitised debt will be 50% of the net asset and derivative instruments to the extent of 50% of the net assets of the scheme. It is proposed to make investments in debt securities having tenure of 3 years. Investment in equity index linked debt instruments will be up to 80% of the net assets.

Alternate Product Offered In Lieu Of UTI Senior Citizen Unit Scheme

UTI Senior Citizen Unit Scheme will cease its business from February 18, 2008 UTI Mutual Fund announces the offer of an alternate health insurance product of New India Assurance Company (NIAC) to the members (upto the age of 58 years) in lieu of UTI Senior Citizen Unit Scheme/Plan (UTI-SCUP), which is being terminated from the close of business on February 18, 2008. However for members above the age of 58 years for whom insurance premia had been paid out of existing investment, there will be no change and NIAC will continue to honour its commitment on hospitalisation cover. UTI-SCUP was launched by erstwhile Unit Trust of India (UTI) in the year 1993 in association with NIAC to provide its members medical cover for hospitalisation on completion of 58 years of age.

Standard Chartered MF Files Another Offer Document

Standard Chartered Mutual Fund files another offer document to launch Standard Chartered Equity & Derivative Fund. The investment objective of the scheme is seek to generate capital appreciation and income by investing in equity and equity related instruments and taking advantage of opportunities in the cash and the derivative segments of the equity markets including arbitrage opportunities available within the derivative segment and by using other derivative based strategies.

Standard Chartered MF Files An Offer Document

Standard Chartered Mutual Fund files an offer document to launch Standard Chartered Arbitrage Plus Fund. It is open-ended equity scheme. There will be two plans, i.e. regular and institutional plan. The investment objective of the scheme is to generate income by taking advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments.

Reliance MF Declares Dividend For Interval Fund

Reliance Mutual Fund has announced the declaration of dividend for Reliance Interval Fund Monthly Interval Fund Series I under both retail and institutional plan. The record date is set as 14 January 2008. The fund house has decided to distribute 100% of surplus available under both plans as on record date. The NAV for the scheme under retail plan was Rs. 10.0597 as on 7 January 2008. The NAV for the scheme under institutional plan was Rs. 10.0593 as on 7 January 2008. Reliance Interval Fund Monthly Interval Fund - Series I is a debt oriented interval scheme. The investment objective of the scheme is to generate regular returns and growth capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility.

Polaris Software Lab Stocks Likely To Benefit MF Scheme

Share prices of Polaris Software Lab went up by 5.30% to Rs. 137.10 reported at BSE at 10.17 a.m. on 9 January 2008 against previous day close of Rs.130.20. Franklin Infotech Fund - (G) was likely to gain 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 Infotech Fund - (G) was holding 2.58% of its total portfolio size invested in the stocks of the company as on 31 December 2007. The scheme holds 3.17 lakh units of the company in December 2007 compared to its peer groups who have invested in the stocks of the company.

Lotus India MF Unleashes Mid N Small Cap Fund

Lotus India AMC, a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, announced the launch of its three year Close-Ended Equity Scheme: Lotus India Mid N Small Cap Fund. Lotus India Mid N Small Cap Fund is a three-year close-ended equity scheme providing Growth and Dividend Options. The Dividend option offers Dividend Payout and Dividend Re-investment facilities.

The New Fund Offer priced at Rs.10 per unit opened for initial purchase from January 7, 2008 and closes on February 19, 2008. 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 mid and small cap companies. The fund will invest in mid cap stocks in the range of 65-100% and in small-cap stocks in the range of 5% - 40%. A portion could also be invested in debt and money market instruments. An investor can start investing with as little as Rs. 5000 and in multiples of Re. 1 thereafter in this Fund.

HDFC MF Rolls Out Infrastructure Fund

HDFC Mutual Fund announced the launch of HDFC Infrastructure Fund that closes on 21 February 2008. Units can be purchased only during the NFO period i.e. 8 January 2008 to 21 February 2008. HDFC Infrastructure Fund is a 3-year close-ended equity scheme with automatic conversion into an open-ended scheme upon maturity. The primary investment objective of to seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.

Mutual Funds On Buying Spree

Mutual funds (MFs) purchaged shares worth a net Rs 30 crore on 7 January 2008, compared to their buying of Rs 616.60 crore on Friday, 4 January 2008. MFs' net inflow of Rs 30 crore on 7 January 2008 was a result of gross purchases of Rs 1187.10 crore and gross sales Rs 1157.10 crore. The 30-share BSE Sensex rose 125.76 points or 0.61% to 20,812.65, a record closing high, on that day. MFs were net buyers of shares worth Rs 1615.39 crore this month, till 7 January 2008.

UTI MF Launched Fixed Term Income Fund – Sr. IV Plan 1

UTI Mutual Fund launched UTI Fixed Term Income Fund- Series IV-Plan 1, a close-ended income scheme. The scheme, which will have a maturity of 15 months, opens for subscription on 10 January 2008 and closes on 16 January 2008.

Being a close-ended scheme, it will not have any entry load. However, an exit load of 3% or unamortized expenses, whichever is higher will be levied if redeemed before due date.

The investment objective of the scheme is to generate regular returns by investing in a portfolio of fixed income securities.

The scheme will invest 30% - 100% in debt instruments including investment in securitised debt up to 100%. The investment in money market instrument will be up to 70%

ICICI Prudential Declares Dividend For Interval Fund

ICICI Prudential Mutual Fund has announced 15 January 2008 as the record date for the declaration of dividend under ICICI Prudential Quarterly Interval Plan – III. The AMC plans to distribute entire appreciation in the NAV as dividend.

The NAV of ICICI Prudential Quarterly Interval Plan – III was recorded at Rs 10.1660 as on 8 January 2008.

UTI MF Declares 120% Dividend For Index Select Fund

UTI Mutual Fund has announced the declaration of dividend at the recommended gross rate of 120% i.e. Rs 12.00 per unit on the face value of Rs 10 under for UTI Index Select Fund - an open ended equity growth fund. The record date is set as 14 January 2008.

The NAV for the scheme under retail plan was recorded at Rs. 35.4100 on 7 January 2008.

Reliance MF Declares Dividend For Interval Fund

Reliance Mutual Fund has announced the declaration of dividend for Reliance Interval Fund – Monthly Interval Fund – Series I under both retail and institutional plan. The record date is set as 14 January 2008. The fund house has decided to distribute 100% of surplus available under both plans as on record date. The NAV for the scheme under retail plan was Rs. 10.0597 as on 7 January 2008. The NAV for the scheme under institutional plan was Rs. 10.0593 as on 7 January 2008. Reliance Interval Fund – Monthly Interval Fund – Series I is a debt oriented interval scheme. The investment objective of the scheme is to generate regular returns and growth capital by investing in a diversified portfolio of central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility.

Kotak MF Declares Dividend For FMP

Kotak Mutual Fund has announced 14 January 2008 as the record date for the declaration of dividend under Kotak Fixed Maturity Plan 15 month Series 1. The AMC plans to distribute entire appreciation in the NAV as dividend. The NAV for the scheme was recorded at Rs. 10.716 on 7 January 2008.

UTI MF Ties Up With REPCO Bank

UTI Mutual Fund (UTI MF) has today entered into a customised arrangement with The Repatriates Co-op. Finance & Development Bank Ltd. (REPCO Bank) for providing the members of Self Help Groups associated with REPCO Foundation for Micro Credit, an investment opportunity through a Micro-Pension initiative under UTI-Retirement Benefit Pension Fund.

The Micro-Pension initiative facilitated by UTI Mutual Fund and REPCO Bank aims to provide the much needed social security cover for the low income group during their old age. Under the initiative, members of the Self Help Groups associated with REPCO Foundation for micro credit, will contribute minimum amount of Rs.100 every month towards UTI-Retirement Benefit Pension Fund up to the age of 55 years so as to enable them to receive pension in the form of periodical income/cashflow after they reach the age of 58 years.

REPCO Bank was established in 1969 by the Government of India and is under the administrative control of the Ministry of Home Affairs, Government of India. REPCO Bank has promoted REPCO Foundation for Micro Credit, an NGO for extending supporting services to Self Help Groups financed by REPCO Bank solely with a view to increase the income level and standard of life of the group. The Bank has a large concentration of Self Help Groups in Southern States. Presently there are 3500 Self Help Groups consisting more than 70000 members of which majority are women beneficiaries. Initially around 10000 members will be joining the scheme.

Shri U K Sinha, Chairman and Managing Director, UTI AMC said, “The Micro-Pension initiative will help inculcating the habit of regular savings among the low income group, which will help them in planning for their future and will also enable them to share the benefits of growth of the Indian economy.”

“We hope that this pension movement will spread across workers of all categories and even those working in big establishments or professionals with higher income will also follow the example of pioneers like SEWA or REPCO Bank in understanding how it is important for them to build their own pension amounts during their working life. ” Shri Sinha added

UTI-Retirement Benefit Pension Fund is an open-end tax saving-cum-pension fund. The scheme has been notified by Central Government in the Gazette Notification dated November 3, 2005 as a Pension Fund eligible under sub-section (2), clause (xiv) of section 80C of Income- tax Act, 1961 for assessment year 2006-07 and subsequent assessment years.

The investment objective of the scheme is to primarily provide pension in the form of periodical income/cash flow to the members to the extent of redemption value of their holding after they attain the age of 58 years. The scheme invests minimum 60% and maximum 100% in debt and balance in equity.

ICICI Prudential MF Files Offer Document

ICICI Prudential MF plans to launch Equity Linked Fixed Maturity Plans and it is a close-ended debt fund. I ICICI Prudential Equity Linked Fixed Maturity Plans offers following series with different maturities: Series A and B with 15 months, Series C, D, E with 24 months, Series F, G & H with 36 months maturity.

The scheme will have three options- retail option, institutional option, and institutional option I with cumulative and dividend payout. Dividend payout is available under dividend sub-option. Retail option shall be the default option and cumulative sub option shall be the default sub- option. Institutional I option will be available only to those investors who use specified application form evidencing presence of underlying investors who are making direct investments in the scheme. The minimum application amount under retail plan is Rs. 5000 and in multiple of Re 1 thereafter. Under institutional option, the minimum application amount is Rs 1 crore and in multiples of Re 1 thereafter. Minimum investment amount for institutional option I is Rs 10 crore and in multiples of Re 1 thereafter. The objective of the fund is to invest in short term and medium term debt instruments with fixed and/or floating payouts linked to the equity indices normally maturing in line with the time profile of the scheme.

SBI MF Files Offer Document

SBI MF is planning to launch SBI Debt Fund Series and it is a close-ended debt scheme. The scheme has retail and institutional plans in all the funds having maturity of above one year. The scheme offers growth option and dividend option.

The minimum application amount for fund having maturity of less than 1 year is Rs. 50,000 and in multiples of Rs 1000 thereafter. For funds having maturity of more than one year is Rs 50000 and in multiples of Rs 1000 thereafter for retail plan and under institutional plan, the minimum investment amount is Rs 5 lakh and in multiples of Rs 1000 thereafter. The objective of the scheme is to provide regular income, liquidity, and returns to the investors through investments in a portfolio comprising of debt instruments such as government securities, AAA/AA+ bonds and money market instruments.

The scheme will charge 0.25% an exit load under 30 days fund series, if investment units are redeemed before maturity date from the date of allotment. 90-Days Funds Series, 180 Days Fund Series will charge 1% whereas 13-Months Funds Series, 18-Months Funds Series will charge 2% exit load for redemptions before maturity period. The scheme will invest up to 100% in Government of India dated securities and treasury bills. It will have balanced investment in AAA/AA+ Bonds, money market instruments. Investment in securitised debt will be up to 20% of the exposure to AAA/AA+ Bonds, money market instruments. Benchmark Index: CRISIL Liquid Fund Index and CRISIL Composite Bond Index.