Principal Pnb MF Files Another Offer Document

Principal Pnb Mutual Fund files another offer document to launch Fixed Maturity Plan- 91 days - Series 15. The scheme will have two-investment options viz. growth and dividend options. The dividend option under both plans will have the facility of payout and sweep. The primary investment objective of the scheme is to build an income-oriented portfolio and provide returns along with regular liquidity to investors. The minimum application amount will be Rs. 1000.

Sundaram BNP Paribas MF Files Another Offer Document

Sundaram BNP Paribas Mutual Fund files another offer document to launch Fixed Maturity Plan- 90 days - Series 4. The scheme will have two-investment options viz. growth and dividend options. The dividend option will have reinvestment facility under it. The objective of this scheme would be to achieve income with minimum volatility by investing in a portfolio of fixed-income securities. The minimum application amount under retail plan is Rs 5000 and in multiple of Re 1 thereafter. The amount of investment under institutional plan is Rs 1 crore and in multiple of Re 1 thereafter.

Religare Skips Race For Stanchart AMC

Religare Enterprises the financial services holding arm of the promoters of Ranbaxy has decided to drop out of the race for Standard Chartered's mutual fund business in India. It has decided instead to concentrate on building its presence organically with its Dutch joint venture partner Aegon. The financial services company has also decided not to pursue GE Money's consumer lending business, which is up for sale. StanChart's asset management business was put up for sale last year and Swiss banking major UBS had finalised a deal worth $120 million to acquire the business. However, this deal came unstuck as UBS didn't get the mandatory approvals from Indian authorities.

Max New York Sets Up Office In Kochi

Kochi: Max New York Life Insurance has expanded its footprint in South India and beefed up its operations in Kerala by opening its first general office in Kochi Feb 27. With this, the company has set up a countrywide network of 233 offices across 155 cities in India. Max New York Life Insurance wants people to see insurance as a financial protection and wealth creation instrument and not just a tax-saving tool. Since the launch of our operations, its focus has always been on giving risk protection and long-term wealth creation solutions to our customers.

The company said in a statement that Kerala is an important market and that it will be opening six other offices over the next few days at Kottayam, Thrissur, Kannur, Kozhikode, Thiruvananthapuram and Kollam. The company has till date sold over 2.1 million policies and recorded a sum assured of over Rs 62,000 crore. It has positioned itself on the quality platform. The company has developed a strong corporate governance model based on defined core values of caring, knowledge, excellence and honesty.

ICICI MF Declares Dividend Under Interval Plan

ICICI Mutual Fund has announced 5 March 2008 as the record date for declaration of dividend under dividend option of ICICI Prudential Interval Fund II – Quarterly Interval Plan D.

The fund house has decided to distribute 100% of surplus available as on record date. The NAV for the scheme was Rs. 10.20 as on 27 February 2008.

ICICI Prudential Interval Fund II – Quarterly Interval Plan D is a debt oriented interval scheme. The investment objective of the scheme is to seek to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

HDFC MF Launches 13M And 90D March Plans Under HDFC FMP -Series VII

Name of fund: HDFC Fixed Maturity Plan 13 Months March 2008 and HDFC Fixed Maturity Plan 90 Days March 2008

Scheme: Both the schemes are of close-ended income nature.

Objective: The investment objective of the fund is to generate regular income through investments in debt, money market instruments, and government securities.

Options: Both HDFC Fixed Maturity Plans- 13 Months March and 90 Days March 2008 offers wholesale plan and retail plan with growth and dividend option.

The Minimum Investment Amount:

Under retail Plan: Rs. 5,000 and in multiple of Re. 1 thereafter per application

Under wholesale Plan: Rs. 1 Crore and in multiples of Re. 1 thereafter per application

Asset allocation:

Debt securities and money market instruments: 60-100%

Government securities: 0- 40%

Securitised debt: Up to 75% of net assets of plan

Snapshot

Face value: Rs 10

Offer opens: 5 March 2008

Offer closes: 10 March 2008

Entry load: Nil

Exit load: HDFC Fixed Maturity Plan 13 Months March 2008 would charge an exit load of 2.00% if the units are redeemed or switched out before maturity.

HDFC Fixed Maturity Plan 90 Days March 2008 may charge an 0.75% an exit load if the units are redeemed or switched out before maturity.

Benchmark Index: Crisil Liquid Fund Index

Fund Manager: Mr. Shobhit Mehrotra.

Mirae Asset MF Launches New Liquid Fund

Name of Fund: Mirae Asset Liquid Fund

Scheme: It is an open ended liquid scheme.

Objective: The primary investment objective of the scheme is to seek to generate reasonable returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The scheme does not guarantee any returns.

Fund Opens: 27 February 2008

Fund Closes: 3 March 2008

Face Value: Rs 1000 per unit.

Investment Options: The scheme will have super institutional, institutional and regular plans. The scheme offers growth, bonus and dividend option under each plan.

Dividend frequency: The scheme offers dividend with facility of dividend reinvestment on daily, weekly and monthly dividend. It also offers dividend transfer and monthly dividend payout option.

Entry Load:The scheme will not charge any entry load and exit load during the initial offer.

Asset Allocation: The scheme invest 0-100% in money market instruments. It may have investment of 0-100% in debt instruments with residual maturity and re-pricing tenor not exceeding 1 year. The scheme may have exposure up to 50% of the net assets in securitised debt. Debt instruments include securitized debt up to 50% of net assets. The scheme may invest in derivatives up to 50% of the net assets of the scheme. In addition, the scheme may also invest in foreign securities up to 25% of net assets of the scheme.

Minimum Investment Amount: The minimum investment amount under regular plan is Rs 5000 and in multiple of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 1 crore and in multiple of Re 1 thereafter. The minimum investment amount under super instituinal plan is Rs 10 crore and in multiple of Re 1 thereafter.

Benchmark Index: CRISIL Liquid Fund Index

Fund Manager: Mr. Murthy Nagarajan

Kotak MF Declares Dividend Under Quarterly Interval Plan

Kotak Mutual Fund has announced 3 March 2008 as the record date for declaration of dividend under dividend option of Kotak Quarterly Interval Plan – Series 4.

The fund house has decided to distribute 100% of surplus available as on record date. The NAV for the scheme was Rs. 10.1474 as on 25 February 2008.

Kotak Quarterly Interval Plan – Series 4 is an interval debt fund. The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

Kotak MF Revises Minimum Purchase Amount

Kotak mutual fund has announced the change in the minimum purchase amount under regular plan of Kotak Mahindra Bond Unit scheme 99.

According to the announcement, the fund has raised its minimum purchase amount from Rs 5000 to Rs 5 lakh with effect from 3 March 2008.

Kotak Mahindra Bond Unit scheme 99 is an open-ended debt scheme. The investment objective of the scheme is to create a portfolio of debt instruments of different maturities so as to spread the risk across a wide maturity horizon and different kinds of issuers in the debt market.

Sebi To Simplify Mfs` New Fund Offer Documents

The Securities and Exchange Board of India (Sebi) is planning to simplify the offer document (OD) of mutual funds’ new fund offerings (NFOs) in a move to make it investment decisions easier.

Sebi has reportedly held two rounds of discussions with the Association of Mutual Funds in India (AMFI), which is the body for mutual funds in the country.

The proposal is likely to be referred to the Sebi board shortly.

The new rule will reduce the costs and time involved in preparing and filing offer documents with Sebi.

The move coincides with Sebi circular, asking mutual funds to spend at least five seconds to warn investors on the risks involved in mutual fund investments.

Sebi recently proposed fast-track clearances for fixed maturity plans (FMPs), investing only in short-term debt instruments.

About 70% of the mutual fund offer documents are filed for closed-ended schemes such as FMPs and interval schemes involving several series.

Although mutual fund houses make disclosures according to mandatory key information memorandum (KIM), the market players still think that a large portion of the offer documents is repetitive.

The Indian mutual fund industry has 33 players managing assets worth Rs 5,48,063.51 crore.

Several players are awaiting the Sebi’s approval to enter the mutual funds business in India.

The proposed rule may not be applicable for new funds as investors have limited knowledge about their businesses.

Sebi also intends to have a portal containing vital information about companies.

This will not only ease the filing process, but also do away with redundant information. It is an important move by the Sebi.

No Rapid Fire MF Risk Warnings: SEBI

Market regulator SEBI has ruled that the standard warning message while selling mutual funds should be made intelligible to investors. It has made it mandatory that the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements, or alternately should be read in an easily understandable manner.

Although most fund officials say that any move which makes an investor more aware of the risk factors is desirable, they point out insurance investments do not carry the same level of warnings.

According to them, insurance companies selling Unit Linked Insurance Plans, should also be asked to state that they are subject to similar market risks since Ulips essentially invest in the stock markets too.

Unless IRDA comes up with a similar set of rules for insurance houses, the problem of no level playing field still remains, they reckon. In recent years, MFs have been losing the battle to insurance companies selling Ulips, as the latter fetch more commissions for the people selling them.

In a release issued on 27 February 2008, SEBI has objected to the ‘rapid fire manner’ in which “Mutual Fund investments are subject to market risks, read the offer document carefully before investing” is recited in the audio visual and audio media.

It said that the recital should be made in a manner that makes the motive behind warning more cleared to the listener or the reader. AP Kurien, chairman of AMFI, a trade body of all mutual fund houses in the country, said that the regulator had come out with the move after consultation with the body.

Quantum MF Raises Rs 3.4 Crore Through Gold Fund

Quantum Mutual Fund has collected Rs 3.4 crore through its Quantum Gold Fund during its initial offer period from 24 January 2008 to 8 February 2008.

Quantum Gold Fund is an open-ended fund, which will be listed on the exchange in the form of an Exchange Traded Fund (ETF) tracking domestic prices of gold through investments in physical 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. However, the scheme may invest in gold related securities including derivatives.

ING MF Declares Dividend Under FMP Series

ING India Mutual Fund has announced 4 March 2008 as the record date for declaration of dividend under dividend option of ING Fixed Maturity Plan - Series XXXVII.

The AMC plans to distribute entire appreciation in the NAV of dividend option from the date of allotment to 4 March 2008 as dividend. The NAV under institutional plan is Rs 10.2066 and under retail plan is Rs 10.2055 as on 26 February 2008.

ING Fixed Maturity Plan - Series XXXVII is a close -ended scheme offering an investment objective to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in so as to minimise the impact of price fluctuation of such securities on the value of the at maturity.

AIG MF Launches Short Term Fund

AIG Mutual Fund launched AIG Short Term Fund. The primary objective of the scheme is to seek to generate income from a portfolio constituted of short to medium term debt and money market securities. The fund will invest up to 40%-100% in debt and money market securities with maturity less than equal to 370 days or have put options within a period not exceeding 370 days. It will have investment of 0-60% in debt instruments including government securities, corporate debt and other debt instruments with maturity greater than 370 days.

Franklin Templeton MF Declares Dividend

Franklin Templeton Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Templeton Quarterly Interval Plan- Plan B. The record date is set as 29 February 2008. The fund house has decided to distribute 100% of surplus available under option as on record date. Templeton Quarterly Interval Plan- Plan B is an interval income fund that seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities.

Reliance MF Launches New Fixed Horizon Fund

Name of Fund: Reliance Fixed Horizon Fund –VII-Series 3

Scheme: It is a close-ended income scheme.

Objective: 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.

Fund Opens: 26 February 2008

Fund Closes: 28 February 2008

Face Value: Rs 10 per unit.

Investment Options: The scheme will have growth and dividend option.

Entry Load: Being a close end scheme it will not charge any entry load during the initial offer.

Exit Load: The scheme charges an exit load of 2.00% if redeemed on or before completion of 6 months and 1.00% if redeemed between 6 months-1 day and maturity of the scheme.

Minimum Investment Amount: The minimum investment amount is Rs 5,000 and in multiple of Re 1 thereafter.

ING MF Files An Offer Document With SEBI

Name of Fund: ING Fixed Maturity Fund- Series 43 to 46

Scheme: The scheme is a close-ended bond scheme.

Objective: The investment objective of the scheme is to generate returns comparable with alternative fixed-income instruments of similar maturity and to minimize the impact of price fluctuation of debt securities on the value at maturity.

Investment options: This close-ended bond scheme has two plans i.e. retail & institutional plans. Investors under the Scheme may choose between a growth option and dividend option.

Asset Allocation: The scheme will invest 100% of its portfolio in debt securities and money market instruments including call money and reverse repo. The debt securities may include securitised debt up to 100% of the net assets. The investments in derivatives instruments shall be to a maximum of 50% of the net assets of the scheme.

Face Value: Rs 10.

Entry Load: There will be no entry load charged for the scheme as the scheme is a close ended.

Exit Load: The scheme charges an exit load of 1% if units are redeemed on or before the 30th day from the date of allotment to 90th day i.e. on the date of maturity.

Minimum Investment Amount: The minimum investment amount under retail plan is Rs.5000 and in multiples of Re.1 thereafter. For institutional plan the minimum investment amount is Rs 1 crore and in multiple of Re 1 thereafter.

Benchmark index: CRISIL Liquid Fund Index

Fund Manager: Mr. Prashant Singh

ING MF Launches ING FMF- Series XXXV

Name of Fund: ING FMP- Series XXXV

Scheme: ING Fixed Maturity Fund Series XXXV is a close-ended bond scheme offering an investment plan of 93 days maturity. The scheme shall mature on 30 May 2008.

Objective: The scheme will be investing in a portfolio of government securities or highly rated corporate bonds maturing close to the maturity of the scheme so as to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimise the impact of price fluctuation of such securities and the value at maturity.

Fund Opens: 25 February 2008

Fund closes: 27 February 2008

Face Value: Rs 10 per unit

Investment Options: The scheme provides two plans i.e. retail and institutional plan with a sub-option of growth, dividend and bonus.

Asset allocation: The scheme shall invest up to 100% in debt securities and money market instruments including call money and reverse repo. The debt securities may include securitised debt up to 100% of the net assets. The investments in derivatives instruments shall be to a maximum of 50% of the net assets of the scheme.

Entry load: The scheme does not charge an entry load as it is of close-ended nature.

To provide liquidity to investors, the fund proposes to provide repurchase facility in the scheme on 28 March 2008, 27 April 2008, and 29 May 2008. If repurchase request is submitted after 28 February 2008 and on or before 29 May 2008, the scheme may levy 1% as Contingent Deferred Sales Charge (CDSC).

Minimum Investment Amount: The minimum investment amount is Rs 5,000 and in multiple of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 1 crore in multiple of Re 1 thereafter.

Minimum subscription amount: Rs 1 lakh

Benchmark index: CRISIL Liquid Fund Index

Fund Manager: Mr. Prashant Singh

Ipca Laboratories Stocks Likely To Benefit MF Scheme

Share prices of Ipca Laboratories went up by 3.21% to Rs. 655.00 reported at BSE at 11.04 a.m. on 26 February 2008 against previous day close of Rs 634.60.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. JM Healthcare Sector fund - (G) 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. JM Healthcare Sector fund - (G) was holding 10.39% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 8619 units of the company in January 2008.

Other schemes, which likely to gain includes Franklin Pharma Fund - (G) with holding of 51669 units (7.88% of its portfolio), and Franklin India Prima Fund - (G) with 9.00 lakh units holding (4.17%) as on 31 January 2008.

JM Financial MF Changes Fund Manager

JM Financial MF approved the following change in the fund manager in the following the schemes:

Mr Sandeep Neema will be the fund mangers for JM Agri and Infra Fund; and Mr Sanjay Chhabaria for JM balanced Fund.

Mutual Funds Continue Selling

Mutual funds (MFs) sold shares worth a net Rs 163.60 crore on Friday, 22 February 2008, compared to their selling of Rs 226.80 crore on Thursday, 21 February 2008.

MFs’ net outflow of Rs 163.60 crore on 22 February 2008 was a result of gross purchases of Rs 327.30 crore and gross sales Rs 490.90 crore. The 30-share BSE Sensex was down 385.61 points or 2.17% to 17,349.07 on that day.

MFs were net sellers of shares worth Rs 1121.10 crore in this month, till 22 February 2008.

Reliance MF Declares Dividend

Reliance Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Reliance Interval Fund - Monthly Interval Fund - Series II under both retail and institutional plan. The record date is set as 28 February 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. 10.0614 as on 21 February 2008. The NAV for the scheme under institutional plan was Rs. 10.0613 as on 21 February 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.

Tata MF Declares Dividend

Tata Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Tata Fixed Income Portfolio Fund - Scheme B2 under quarterly dividend option. The record date is set as 27 February 2008. The fund house has decided to distribute 100% of surplus available under option as on record date. The NAV for the scheme under regular plan was Rs. 10.1744 as on 20 February 2008. The NAV for the scheme under institutional plan was Rs. 10.1744 as on 20 February 2008. Tata Fixed Income Portfolio - Scheme B2 Fund is an open-ended debt oriented scheme. The investment objective of the scheme is to generate returns and / or capital appreciation along with minimisation of interest rate risk. In order to achieve its investment objective, the scheme will invest predominantly in a portfolio of debt and money market instruments.

ING MF Collects Rs.200 Crore Through Its 91-Day Plan

ING Mutual Fund has collected Rs 200 crore through its ING Fixed Maturity Fund- Series 42 during its initial offer period from 14 February 2008 to 19 February 2008. The ING Fixed Maturity Fund- Series 42, which is a close-ended bond scheme offering an investment plan of 91 days maturity, investing in a portfolio of government securities, or highly rated corporate bonds maturing close to the maturity of the scheme so as to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimise the impact of price fluctuation of such securities and the value at maturity.

ING Fixed Maturity Fund- Series 42 will offer two plans i.e. retail and institutional plan with a sub-option of growth, dividend. The scheme shall invest up to 100% in debt securities and money market instruments including call money and reverse repo. The debt securities may include securitised debt up to 100% of the net assets. The investments in derivatives instruments shall be to a maximum of 50% of the net assets of the scheme.

HSBC MF Extends NFO Period For Emerging Markets Fund

HSBC mutual fund has extended the new fund-offering (NFO) period of HSBC Emerging Markets Fund from 25 February to 26 February 2008. HSBC Emerging Markets Fund is an open-ended scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment is Rs 10,000 and in multiple of Re 1 thereafter. The primary 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.

UTI MF Garners Rs.500 Crore Through Its Interval Fund

UTI Mutual Fund has collected Rs 500 crore through its UTI Fixed Maturity Plan -Quarterly Plan during its initial offer period from 1 February 2008 to 19 February 2008. UTI Fixed Maturity Plan -Quarterly Plan is a close-ended plan with an investment in fixed income securities maturing in line with the scheme.

ING MF Declares Dividend

ING India Mutual Fund has announced 29 February 2008 as the record date for declaration of dividend under dividend option of ING Domestic Opportunities Fund.

The quantum of dividend is 30% i.e. Rs. 3.00 per unit on the face value of Rs. 10. The NAV for the scheme was Rs. 16.29 as on 21 February 2008.

ING Domestic Opportunities Fund is a open-ended scheme offering an investment objective to provide long-term capital appreciation from a portfolio that is primarily invested in companies which derive a significant proportion of their revenues from the domestic Indian market place / economy.

Franklin Templeton MF Declares Dividend

Franklin Templeton Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Templeton Quarterly Interval Plan- Plan B. The record date is set as 29 February 2008. The fund house has decided to distribute 100% of surplus available under option as on record date.

Templeton Quarterly Interval Plan- Plan B is an interval income fund that seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities.

ABN Amro MF Declares Dividend

ABN Amro Mutual Fund has announced 29 February 2008 as the record date for declaration of dividend under dividend option of ABN Amro Tax Advantage Plan-ELSS.

The quantum of dividend is 20% i.e. Rs. 2.00 per unit on the face value of Rs. 10. The NAV for the scheme was Rs. 15.055 as on 22 February 2008.

ABN Amro Tax Advantage Plan-ELSS is a open-ended scheme offering an investment objective to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent from time to time.

ABN Amro Adds Dividend Option For Its Interval Plan

ABN Amro Mutual Fund has announced that investors of ABN Amro Interval Fund-Monthly Plan A may get an additional dividend option viz. calendar monthly dividend option with effect from forthcoming interval period.

ABN Amro Interval Fund-Monthly Plan A seeks an investment objective to generate steady returns through investments made in a basket of fixed income securities, with a provision to offer liquidity at periodic interval.

Birla Sun Life MF Declares Dividend

Birla Sun Life Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit for Birla Sun Life Quarterly Interval Fund-Series 2. The record date is set as 28 February 2008. The fund house has decided to distribute 100% of surplus available under option as on record date. The NAV for the scheme was Rs. 10.2077 as on 21 February 2008.

Birla Sun Life Quarterly Interval Fund-Series 2 is an interval income fund that seeks to generate regular income through investments in debt and money market instruments.

Kotak MF Declares Dividend

Kotak Mutual Fund has announced 28 February 2008 as the record date for declaration of dividend under dividend option of Kotak Mahindra 30 Unit Scheme.

The quantum of dividend is 30% i.e. Rs. 3.00 per unit on the face value of Rs. 10. The NAV for the scheme was Rs. 38.517 as on 20 February 2008.

Kotak Mahindra 30 Unit Scheme is an open-ended equity growth scheme. The investment objective of the scheme is to generate capital appreciation from a portfolio of predominantly equity and equity related securities with investment in 30 companies which may go up to 39 companies.

Seven Suitors Line Up For Stanchart's MF Business

The race for Standard Chartered Mutual Fund is in the last lap, with around seven suitors in the fray, including Credit Agricole, Shinsei and IDFC. The price tag is $200 million, up from $120 million that UBS was willing to pay last year. Initially there were 20 fund houses in the race including three from India. The base price for the deal was $137.5 million. In the final round, the lowest bid has been for $175 million while some were above $200 million.

Other players in the final leg are Fortis, Aviva, Mirae, a US fund major and a Middle East player. Incidentally Fortis is in the final stages of taking over ABN Amro's AMC business in the country as part of its global deal past year. ABN Amro has assets under management of Rs 8529 crore as on the end of January. StanChart has AUMs of Rs 13,118 crore. The AMC which focused on debt schemes forayed into equity two years ago; today it has around 30% of its AUMs in stocks -something that has pushed up the valuation. As a part of the erstwhile deal with UBS, employees were to be given a retention bonus. This time depending on the final deal, either StanChart or the new buyer will give the bonus to the employees. The core team is expected to remain in place. Sources maintain that any new buyer would not only takeover the AMC's assets but its team. The deal between StanChart and UBS was canceled as the latter failed to secure the Reserve Bank of India approval for the deal. When contacted, StanChart officials refused to comment on the process. Though StanChart would be more amenable to an overseas player taking over the fund, as it would mean a possible tie-up to distribute funds internationally, it is not against a domestic entity like IDFC.

Reliance MF Files An Offer Document With SEBI

Reliance MF plans to launch Reliance Fixed Horizon Fund - IX and it is a close-ended income scheme. The scheme offers 12 Series with different maturity. The offers under Series 1 to 4 having 15 to 18 months duration, Series 5 to 8 having 18 months 1 day to 21 months and Series 9 to 12 with maturity period 21 months 1 day to 25 months.

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 securitized debt, which may go up to 100% of the portfolio. The average maturity of the securities will be in line with the maturity profile of the scheme.

Mutual Funds On Selling Mode

Mutual funds (MFs) sold shares worth a net Rs 191.30 crore on 20 February 2008, compared to their selling of Rs 326.80 crore on 19 February 2008. MFs' net outflow of Rs 191.30 crore on 20 February 2008 was a result of gross purchases of Rs 523.70 crore and gross sales Rs 715 crore. The 30-share BSE Sensex was down 458.06 points or 2.53% at 17,617.60 on that day. MFs were net sellers of shares worth Rs 730.70 crore in this month, till 20 February 2008.

Mutual Fund Firms Seek Nod To Offer More Tax Plans

Indian mutual fund firms have asked the government to allow them to offer investors multiple tax planning equity funds, seeking relaxation of a rule that limits the options they can offer to customers. A regulation framed in 2005 restricts them to just one such fund or equity linked savings scheme (ELSS), limiting options for investors who have been increasingly using them to save tax.

ELSS is same as diversified equity funds except that they come with a three-year lock-in period. To cater to the rising interest in such funds, asset managers should be allowed to float as many ELSS as they wanted, to offer themes such as infrastructure, mid-cap, multi-cap or sectoral funds as available to them in other equity funds.

Two years ago, India allowed savers to claim tax benefit on investment of up to 100,000 rupees in ELSS, making them hugely popular among investors with assets of such funds rising nearly 25 times to 154 billion rupees in past three years.

Fund Houses Woo Aussies To Put Money In Indian Market

Global funds are tapping the large Australian retail investor base to invest in the Indian stock market, which has grown 40%-plus annually in the last three years.

Two funds — one from Kotak Mahindra Bank and another from Fidelity — have already tapped Australian retail investors. Now, according to Rashmi Hansi Mehrotra, the principal business leader for investment consulting at Mercer, adviser to the world’s largest funds, a third fund will soon tap the Australian retail market for investing in the booming Indian equity markets.

Kotak Mahindra collected $69 million last year through India Equity Fund, which rose by 45% in value $100 million as of December 2007.

The other fund that collected money from Australian retail investors is Fidelity’s Fiducian India Fund. “There is a big retail investor market waiting to be tapped.

Australia is the fourth largest retail market with 25 million people. The rule that 9% of salaries of Australian investors should be locked in superannuation schemes till 65 years forces them to invest in attractive markets like India.

Fidelity’s Fiducian India Fund is a blended portfolio of stocks selected by two Indian fund managers, State Bank of India Funds Management and Sundaram BNP Paribas Asset Management. SBIFM focuses on large-cap stocks, while Sundaram focuses on mid-cap stocks.

Indian stock markets have all kinds of investors, including offshore hedge funds, endowment funds and pension funds.

Wall Street banks such as Citigroup, Merrill Lynch, Fidelity, Goldman Sachs, Morgan Stanley, among others, raise funds for India from their overseas clients. They are also managing funds of their Indian clients through the private banking business.

Birla Sun Life MF Declares Dividend

The Birla Sun Life mutual fund has announced the declaration of dividend under dividend option of Birla Sun Life Interval Income Fund- Quarterly Plan-Series I for its both retail and institutional plan. The AMC plans to distribute 100% of distributable surplus as on record date on the face value of Rs. 10. The record date for dividend is set as 26 February 2008.

The NAV of the scheme was recorded at Rs 10.2060 under retail plan and Rs 10.2085 under institutional plan as on 20 February 2008.

Birla Sun Life Interval Income Fund- Quarterly Plan-Series I is an interval income scheme with an objective to generate regular income through investments in debt and money market instruments. It may not charge an entry. The scheme may charge 0.50% an exit load for redemption before date of maturity.

Principle Pnb MF Declares Dividend

The Principle Pnb mutual fund has announced the declaration of dividend under dividend option of Principle Personal Tax Saver Fund. The record date for dividend will be 26 February 2008.

The quantum of dividend is 200% i.e. Rs. 20 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 170.44 as on 20 February 2008.

Principle Personal Tax Saver Fund is an open-ended equity linked savings scheme, whose investment objective is to provide long-term growth of capital. It aims to achieve a return on assets in excess of the performance of BSE 100 Index.

ING India MF Declares Dividend

ING India Mutual Fund has announced 27 February 2008 as the record date for declaration of dividend under dividend option of ING Fixed Maturity Fund-Series XXX. The AMC plans to distribute entire appreciation in the NAV of dividend option from the date of allotment to 27 February 2008 as dividend. The NAV under retail plan is Rs 10.1549 as on 20 February 2008. ING Fixed Maturity Fund-Series XXX is a close-ended scheme offering an investment plan of 92 days maturity, investing in a portfolio of government securities, or highly rated corporate bonds maturing close to the maturity of the scheme so as to generate returns comparable with alternative fixed income instruments of similar maturity.

Principal Pnb MF Extends NFO Period For FMP

Principal Pnb mutual fund has extended the new fund-offering (NFO) period of Lotus India Fixed Maturity Plan 460 Days - Series IV from 21 February 2008 to 4 March 2008.

Principal Pnb Fixed Maturity Plan 460 Days - Series IV is a close-ended scheme. The NFO price for the fund is Rs 10 per unit. The minimum investment amount under regular plan is Rs 1000 and any amount thereafter. Under institutional plan, the minimum investment amount is Rs 50 lakh and any amount thereafter.

The primary objective of the scheme is to build an income-oriented portfolio and provide returns along with regular liquidity to investors.

No entry load will be charged during the new fund offer of the scheme. The scheme may levy 1% an exit load on redemption of investment from the date allotment to 400 days. The scheme may not charge an exit load for redemption from 401st day to maturity.

Seven Suitors’ Line Up For Stanchart’s MF Business

The race for Standard Chartered Mutual Fund is in the last lap, with around seven suitors in the fray, including Credit Agricole, Shinsei and IDFC. The price tag is $200 million, up from $120 million that UBS was willing to pay last year.

Initially there were 20 fund houses in the race including three from India. The base price for the deal was $137.5 million. In the final round, the lowest bid has been for $175 million while some were above $200 million.

Other players in the final leg are Fortis, Aviva, Mirae, a US fund major and a Middle East player. Incidentally Fortis is in the final stages of taking over ABN Amro’s AMC business in the country as part of its global deal past year. ABN Amro has assets under management of Rs 8529 crore as on the end of January. StanChart has AUMs of Rs 13,118 crore. The AMC which focused on debt schemes forayed into equity two years ago; today it has around 30% of its AUMs in stocks —something that has pushed up the valuation.

As a part of the erstwhile deal with UBS, employees were to be given a retention bonus. This time depending on the final deal, either StanChart or the new buyer will give the bonus to the employees. The core team is expected to remain in place. Sources maintain that any new buyer would not only takeover the AMC’s assets but its team.

The deal between StanChart and UBS was canceled as the latter failed to secure the Reserve Bank of India approval for the deal. When contacted, StanChart officials refused to comment on the process. Though StanChart would be more amenable to an overseas player taking over the fund, as it would mean a possible tie-up to distribute funds internationally, it is not against a domestic entity like IDFC.

It’s perceived that a local buyer may be quicker in getting regulatory approvals.

Last year when the British bank tied up with UBS to sell the AMC business, it had also said that Standard Chartered Wealth Management will form a strategic alliance with UBS Global Asset Management to distribute mutual funds in Asia, Africa and the Middle East. It would look at a similar model this time too.

DSP ML MF Declares Dividend

The DSP ML Financial mutual fund has announced the declaration of dividend under dividend, as under, in the dividend reinvestment option of the regular and institutional plan of DSP ML Fixed Maturity Plan –3 Months Series 1. The record date for dividend will be 25 February 2008.

The quantum of dividend is Rs. 0.217000 per unit on the face value of Rs. 10 under regular plan and Rs 0.219500 per unit for institutional plan . The NAV of the scheme was recorded at Rs 10.2066 under regular plan and Rs 10.2086 under institutional plan as on 20 February 2008.

DSP ML Fixed Maturity Plan –3 Months Series 1 is a close- ended income scheme, whose primary investment objective is to seek to generate capital appreciation by investing in a portfolio of debt and money market securities. The schemes may also use fixed income derivatives for hedging and portfolio balancing.

The scheme does not charge entry load as it is of close-ended nature. There will be 0.50% an exit load charged on redemption before maturity of the scheme.

JM Financial ML MF Declares Dividend

The JM Financial ML Financial mutual fund has announced the declaration of dividend under dividend option of the regular and institutional plan of JM ML Fixed Maturity Fund –Series VI- Quarterly Plan 5. The record date for dividend will be 25 February 2008.

The AMC plans to distribute realized appreciation in the NAV of the plan / option from 27 December 2007 till the record date as dividend. The NAV of the scheme was recorded at Rs 10.1238 under regular plan and Rs 10.1314 under institutional plan as on 19 February 2008.

JM ML Fixed Maturity Plan –Series VI- Quarterly Plan 5 is a close-ended income scheme, whose primary investment objective is to seek to generate regular returns through investment in fixed income securities normally maturing in line with the time profile of the respective plan.

Rolta India Stocks Likely To Benefit MF Scheme

Share prices of Rolta India went up by 3.26% to Rs. 313.55 reported at BSE at 10.43 a.m. on 21 February 2008 against previous day close of Rs 303.65.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. Tata Capital Builder Fund (G) 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 in January 2008. Tata Capital Builder Fund (G) was holding 2.60% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 27200 units of the company in January 2008.

Other schemes, which likely to gain includes DSP ML Technology.com (G) with holding of 1.04 lakh units (1.72% of its portfolio), and LICMF Growth Fund (G) with 40000 units holding (1.20%) as on 31 January 2008.

Canara Bank Loses By 3.41%

Share prices of Canara Bank went down by 3.41% to Rs. 278.00 reported at BSE at 10.52 a.m. on 21 February 2008 against previous day close of Rs 287.80.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the bank. Reliance Banking Fund - (Bonus) is likely to lose 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. Reliance Banking Fund - (Bonus) has 6.27% of its total portfolio size invested in the stocks of the bank as on 31 January 2008. The scheme holds 17.90 lakh units of the bank in January 2008 compared to its peer groups who have invested in the stocks of the bank.

Other schemes, which may affect includes ING Dividend Yield Fund (G) with 60155 units (6.03% of its portfolio), JM HI FI Fund (G) with holding of 75194 units (4.54%) as on 31 January 2008.

Mutual Fund Firms Seek Nod To Offer More Tax Plans

Indian mutual fund firms have asked the government to allow them to offer investors multiple tax planning equity funds, seeking relaxation of a rule that limits the options they can offer to customers.

A regulation framed in 2005 restricts them to just one such fund or equity linked savings scheme (ELSS), limiting options for investors who have been increasingly using them to save tax.

ELSS is same as diversified equity funds except that they come with a three-year lock-in period. To cater to the rising interest in such funds, asset managers should be allowed to float as many ELSS as they wanted, to offer themes such as infrastructure, mid-cap, multi-cap or sectoral funds as available to them in other equity funds.

Two years ago, India allowed savers to claim tax benefit on investment of up to 100,000 rupees in ELSS, making them hugely popular among investors with assets of such funds rising nearly 25 times to 154 billion rupees in past three years.

FoFs and International Funds

The industry also wants fund of funds (FoFs), which invest in equity schemes, and other funds investing in overseas equities to be treated as equity funds to enable them to pay less tax.

Indian regulations classify funds investing more than 35% of assets in foreign equities and FoFs as debt funds and subject to higher taxes, making them unattractive. Investments in them attract long-term capital gains tax of 10% after a year, which domestic equity funds do not pay. Short-term gains tax can go up to 30%, while it is only 10% for equity funds. Investors also pay surcharge and cess.

HSBC MF Launches HSBC FT Series 43

Name of Fund: HSBC Fixed Term Series 43

Scheme: It is a close-ended income scheme, which will be for fixed term of 14 months from the date of allotment.

Investment Objective: The investment objective of the scheme is to seek generation of returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the plan.

Asset allocation: The scheme may invest up to 100% in money market instruments (including CBLO and reverse repo) It may invest up to 100% in short term and medium term debt instruments and securitised debt. The investment in securitised debt will not exceed 50% of the net asset of the scheme. The net notional exposure to derivatives shall not be more than 50% of the net assets. Under normal circumstances, the scheme shall not have an exposure of more than 50% of its net assets in foreign securities.

Fund Opens: 19 February 2008

Fund Closes: 21 February 2008

Face Value: Rs 10

Investment Options: The scheme offers two plans i.e. regular and institutional plan. The scheme will have both growth and dividend option. Dividend reinvestment facility is available under dividend option.

Load structure: The scheme may not levy entry load as it is of close-ended nature. The scheme charges an exit load of 2.00% if the investment is redeemed before the maturity date.

Minimum Investment Amount: The minimum investment under regular plan is Rs 10,000 and in multiple of Re 1 thereafter. For institutional plan, the minimum investment amount is Rs 1 crore and in multiple of Re 1 thereafter.

Minimum subscription amount: Rs 5 crore

Benchmark Index: CRISIL Liquid Fund Index

Fund Manager: Mr Alok Sahoo and Mr Suyash Choudhary

Stanchart's AMC Sale Talks At Final Stage

Standard Chartered's plans to sell its asset management company (AMC) has now entered its final stage and Swiss Bank UBS is expected to make another attempt to buy the AMC. But this time whoever gets it might have to pay much more because the valuations have shot up. After the first sale agreement with UBS was scrapped due to regulatory concerns the possible re-entry of UBS into the bidding process has once again raised questions about the future of the sale process.

Standard Chartered is currently in the final stages of the new bidding process. Sources say seven bidders have been shortlisted from a list of 40 and invited to submit financial bids.The bidders include prominent global names like Goldman Sachs, Lehman Brothers & Emirates Bank. UBS is also likely to re-enter the race, now that the RBI has cleared a full banking licence for the Swiss bank.With UBS making a surprise comeback into the race to bag Standard Chartered's lucrative asset management business, many question whether the new bidding process could also now be in jeopardy.

DSP Merrill Lynch MF Launches New FMP Series

DSP Merrill Lynch MF has unveiled DSP Merrill Lynch Fixed Maturity Plan 3 Months Series 3. It is a close-ended income scheme. The scheme has tenure of 3 months. Objective: The primary investment objective of the schemes is to seek capital appreciation by investing in a portfolio of debt and money market securities. It is envisaged that the portfolio of each scheme will display a maturity profile that is generally in line with the term of the scheme. The schemes may also use fixed income derivatives for hedging and portfolio balancing. The fund will invest can invest up to 100% in debt instruments and up to 100% in money market. The scheme may invest up to a maximum of 100% of the scheme's net assets in domestic securitised debt.

Reliance MF Unleashes New Fixed Horizon Fund

Reliance MF launches Reliance Fixed Horizon Fund -VI-Series 2 and it is a close-ended income scheme with maturity period of 91 days 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 30%-100% in money market instruments. The scheme will invest 0%-70% 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 70% 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.

UTI MF Launches New FTI Series

Name of Fund: UTI Fixed Term Income Fund- Series IV Plan III -February 14 Months

Scheme: It is a close-ended income scheme with plan tenure between 12 to 24 months.

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

Asset Allocation: The fund will invest 30%-100% in debt including securitised debt. It will have an investment of 0-70% in money market instruments. The plan invests up to 100% of its debt portfolio in securitised debt.

Fund Opens: 20 February 2008

Fund Closes: 27 February 2008

Face Value: Rs 10

Investment Options: The scheme offers two options i.e. growth and dividend.

Entry Load: There will no entry load charged for the scheme due to its close-ended structure.

Exit Load: The scheme charges an exit load of 3.00%, if the investment is redeemed before the maturity period. Whereas there will be no exit load charged on the redemption made on or after the maturity period.

SBI MF Launches New Debt Fund Series

Name of Fund: SBI Debt Fund Series – 90 Days Fund

Scheme: Close ended debt scheme.

Objective: The objective of the scheme is to provide regular income, liquidity, and returns to the investors through investment in a portfolio comprising of debt instruments.

Asset Allocation: The fund will invest 0%-80% in Government of India dated securities and treasury bills and money market instruments. It will have an investment of 20-100% in AAA/AA+ bonds and debt instruments. The investment in securitised debt will be up to 20% of the exposure to AAA/AA+ bonds.

Fund Opens: 21 February 2008

Fund Closes: 25 February 2008

Face Value: Rs 10

Investment Options: SBI Debt Fund Series – 90 days offers two options i.e. growth and dividend. The dividend option further offers dividend payout facility.

Entry Load: There will no entry load charged for the scheme due to its close-ended structure.

Exit Load: The scheme charges an exit load of 1.00%, if the investment is redeemed before the maturity period. Whereas there will be no exit load charged on the redemption made on or after the maturity period.

Minimum Investment Amount: The minimum investment amount under the scheme would be Rs 50,000 and in multiples of Rs 1000 per application.

Benchmark Index: CRISIL Liquid Fund Index

Fund Manager: Mr. Killol Pandya and /or Mr. Parijat Agrawal

ICICI MF Declares Dividend

ICICI Mutual Fund has announced 25 February 2008 as the record date for declaration of dividend under dividend option of ICICI Prudential Interval Fund II – Quarterly Interval Plan C.

The fund house has decided to distribute 100% of surplus available as on record date. The NAV for the scheme was Rs. 10.1192 as on 18 February 2008.

ICICI Prudential Interval Fund II – Quarterly Interval Plan C is a debt oriented interval scheme. The investment objective of the scheme is to seek to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

HDFC MF Declares Dividend

HDFC Mutual Fund has announced 25 February 2008 as the record date for declaration of dividend under dividend option of HDFC Fixed Maturity Plan 90 Days November 2007 (2) under HDFC Fixed Maturity Plan –Series VI.

The fund house has decided to distribute 100% of surplus available under its both retail and wholesale plans as on record date. The NAV for the scheme was Rs. 10.2081 as on 18 February 2008.

HDFC Fixed Maturity Plan 90 Days November 2007 is a close-ended income scheme. The investment objective of the scheme is to seek to generate income by investments in debt, money market instruments, and government securities.

Mutual Funds Continue Buying

Mutual funds (MFs) bought shares worth a net Rs 161.90 crore on Friday15, compared to their buying of Rs 296.30 crore on Thursday, 14 February 2008. MFs' net inflow of Rs 161.90 crore on 15 February 2008 was a result of gross purchases Rs 803.90 crore and gross sales Rs 642 crore. The 30-share BSE Sensex rose 348.62 points or 1.96% at 18,115.25 on that day. MFs were net sellers of shares worth Rs 167.50 crore in this month, till 15 February 2008.

Tata Mutual Launches Growing Economy Fund

Tata Asset Management Ltd on Monday launched an equity fund to invest in infrastructure related sectors in growing economies overseas and in India.Tata Growing Economies Infrastructure Fund, open for initial subscription till March 19, would offer two plans, the firm said in a statement.

Under Plan A, the fund will invest 51-70 percent of the assets in geographies outside India and the rest in Indian equities, debt and money market instruments.The fund, under Plan B, will invest 65-85 percent of the assets in domestic equities and the rest in foreign stocks, debt and money market instruments.The fund house managed assets worth about 190 billion rupees at the end of January, data from the Association of Mutual Funds in India showed.

UBS Likely To Revive Its Bid For Stan Chart AMC

Mumbai: It seems no one is immune to the pressures of lobbying not even the staunchly independent Reserve Bank of India. Just months after the RBI rejected an application by Swiss bank UBS to acquire the asset management business of Standard Chartered Bank, UBS is now in a position to revive its bid for Stan Chart AMC after the RBI cleared its application for a full banking licence.

The RBI has allowed it to convert its representative office into a branch. For now UBS will be allowed to open one retail banking branch but henceforth, the Swiss bank will be allowed to apply to the RBI for more branches.While UBS declined to officially comment on the development sources indicate that UBS has received official communication from the RBI.

The RBI's volte-face on UBS has raised many questions about its failed bid for Standard Chartered AMC. The RBI had rejected that bid due to questions raised about certain transactions suspected of money laundering, which had led the RBI to say that UBS' proposal was not found to be fit and proper. However, sources say now that the RBI has cleared UBS's proposal for a full banking licence, the Swiss bank has sufficient grounds to re-open that bid. Following that exercise, UBS is likely to re-file its application for an Asset Management Business with SEBI and RBI.The change in UBS's fortunes in India comes a week after a high level delegation from the Swiss Bankers Association met with the RBI and finance ministry officials. The association has assured the RBI that Swiss Banks like UBS have stringent anti-money laundering systems in place and will comply with all rules and regulations set by the RBI. With those assurances in place UBS is now likely to be expand its presence in India substantially with a focus on retail operations.

National Aluminium Company Stocks Likely To Benefit MF Scheme

Share prices of National Aluminium Company went up by 4.14% to Rs. 405.20 reported at BSE at 10.39 a.m. on 19 February 2008 against previous day close of Rs 389.10.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. ABN AMRO China-India Fund (G) 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. ABN AMRO China-India Fund (G) was holding 2.34% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 99550 units of the company in January 2008.

Other schemes, which likely to gain includes Sundaram BNP Paribas Select Focus - (G) with holding of 2.28 lakh units (1.40% of its portfolio), and Sundaram BNP Paribas India Leadership Fund - (G) with 56756 units holding (1.20%) as on 31 January 2008.

Reliance MF Launches New Fixed Horizon Fund

Name of Fund: Reliance Fixed Horizon Fund –VI-Series 2

Scheme: It is a close-ended income scheme with maturity period of 91 days from the date of allotment.

Objective: 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.

Asset Allocation: The scheme will invest 30%-100% in money market instruments. The scheme will invest 0%-70% 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 70% 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.

Fund Opens: 19 February 2008

Fund Closes: 21 February 2008

Face Value: Rs 10 per unit.

Investment Options: The scheme will have retail and institutional plan and each plan will have a growth option and dividend payout option.

Entry Load: Being a close end scheme it will not charge any entry load during the initial offer.

Exit Load: The scheme charges an exit load of 0.30% if the investment is redeemed before maturity of the scheme.

Minimum Investment Amount: The minimum investment amount under retail plan is Rs 5,000 and in multiple of Re 1 thereafter. The minimum investment amount under institutional plan is Rs 1 crore and in multiple of Re 1 thereafter.

Benchmark Index: Crisil Liquid Fund Index

Fund Manager: Mr. Amit Tripathi

Lotus MF Offers Esops To Retain Talent

With high levels of attrition plaguing the mutual fund industry, AMCs are increasingly offering Esops to retain talent. Lotus Mutual Fund is the latest to join the race.

UTI Mutual Fund recently announced plans to go public and allotted stock options to its employees. Lotus Mutual Fund has become the second fund house to take the same route.

Esop culture is not new in the fund industry. Kothari Pioneer (the erstwhile Franklin Templeton), had diluted 4.5% stake in favour of its employees, in the 90s.

Lotus Mutual Fund has diluted a 19% stake in favour of 180 odd employees. The fund house does not have any immediate plans for an initial public offer, but has not ruled out an IPO after 3-5 years.

Fund houses have been luring talent with various promotional offers and perks, but to no avail. The employees of Standard Chartered Fund were promised hefty bonuses provided they remained with the company for at least two years.

While Indian AMCs may not give Esops, their parent companies have this policy, according to the market watchers.

In a constantly evolving industry where new foreign fund houses set up bases everyday, it is not hard to imagine why people are moving.

Recently, Morgan Stanley Mutual Fund attracted Jayesh Gandhi and Navneet Munot from Birla Sun Life Mutual Fund. Prateek Aggarwal from ABN Amro Mutual fund moved to the yet-to-be launched Bharti Axa Mutual Fund. Similarly, Suyash Chaudhary from Standard Chartered Mutual Fund migrated to a fund house.

CEOs are not far behind. Sandeep Dasgupta left Deutsche Mutual Fund to join Bharti Axa Investment Management. Arindam Ghosh, who was with Fidelity’s Asia Pacific business team recently took over as the CEO of South Korean mutual fund, Mirae Asset, which recently launched in India.

Even Pankaj Razdan, the star CEO at ICICI Prudential Mutual Fund joined Birla Group’s financial services arm as a deputy CEO. Some fund managers moved to private equity and hedge funds.

HSBC MF Plans To Unveil HSBC Infrastructure And Real Estate Fund

HSBC MF is planning to unveil a fund called HSBC Infrastructure and Real Estate Fund. HSBC Infrastructure and Real Estate Fund is an open-ended equity scheme. The investment objective of the scheme is to provide long term capital appreciation predominantly through actively managed investment in equity/equity related instruments of companies operating in the Infrastructure and Real Estate sectors. The scheme may also invest surplus funds in debt and money market instruments. The scheme offers growth and dividend options. The dividend option offers dividend payout and dividend reinvestment facility. The scheme will invest up to 65-100% of its portfolio in equity and equity related instruments of infrastructure and real estate companies. The scheme may invest 0-35% in other equity and equity related instruments and 0-35% investment in debt and money market instruments. Investment in securitised debt will not exceed 35% of the corpus. Investment in foreign securities should not exceed 50% of the assets of the scheme.

Tata MF Launches Growing Economies Infrastructure Fund

Tata Mutual Fund has unveiled a fund called Tata Growing Economies Infrastructure Fund and it is an equity-diversified scheme. The investment objective of the scheme is to generate capital appreciation / income by investing predominantly in equities of companies in infrastructure and other related sectors in India and other growing economies of the world. The investment focus would be guided by the growth potential and other economic factors of the countries.

Tata Growing Economies Infrastructure Fund offers two options i.e. growth and dividend. The minimum investment for the scheme is Rs 10,000 and in multiple of Re 1 thereafter.

DSP ML MF Declares Dividend

The DSP ML Financial mutual fund has announced the declaration of dividend under dividend option of DSP ML India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund). The record date for dividend will be 22 February 2008.

The quantum of dividend is 50% i.e. Rs. 5.00 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 27.945 as on 15 February 2008.

DSP ML India T.I.G.E.R. Fund is open ended growth scheme, whose primary investment objective is to seek to generate capital appreciation, from a portfolio that is substantially constituted of equity securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic policies by the Government and/or from continuing investment in infrastructure, both by the public and private sector.

Birla Sun Life MF Declares Dividend

The Birla Sun Life mutual fund has announced the declaration of dividend under dividend option of Birla Sun Life Interval Income Fund- Quarterly Plan-Series III for its both retail and institutional plan. The AMC plans to distribute 100% of distributable surplus as on record date on the face value of Rs. 10. The record date for dividend is set as 21 February 2008.

The NAV of the scheme was recorded at Rs 10.1254 under retail plan and Rs 10.1231 under institutional plan as on 14 February 2008.

Birla Sun Life Interval Income Fund- Quarterly Plan-Series III is an interval income scheme with an objective to generate regular income through investments in debt and money market instruments.

ICICI Prudential MF Declares Dividend

The ICICI Prudential mutual fund has announced the declaration of dividend under dividend option of ICICI Prudential Equity and Derivatives Fund -Income Optimiser Plan. The record date for dividend will be 22 February 2008.

The quantum of dividend is 6% i.e. Rs. 0.60 per unit on the face value of Rs. 10. The NAV of the scheme was recorded under institutional plan at Rs 10.93 and under retail plan was at Rs 10.89 as on 14 February 2008.

ICICI Prudential Equity and Derivatives Fund -Income Optimiser Plan is an open ended equity scheme, whose investment objective is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.

Suzlon Energy Losses By 2.09%

Share prices of Suzlon Energy went down by 2.09% to Rs. 325.20 reported at BSE at 11.19 a.m. on 18 February 2008 against previous day close of Rs 332.15.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the company. HDFC Growth Fund (G) is likely to lose as it has the highest percentage hold of the stocks of the company compared to its peer groups who have invested in the stocks of the company. HDFC Growth Fund (G) has 4.30% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 12.45 lakh units of the company in January 2008 compared to its peer groups who have invested in the stocks of the company.

Other schemes, which may affect includes HDFC Long Term Equity Fund (G) with 19.42 lakh units (4.21% of its portfolio), HDFC Equity Fund - (G) with holding of 63.25 lakh units (4.14%) as on 31 January 2008

Reliance MF Introduces Exit Load Structure

Reliance mutual fund has announced the introduction of/ change in exit load in the following schemes:

Reliance regular Savings Fund (Equity Option and Balanced Option), Reliance Banking Fund, Reliance Diversified Power Sector Fund-Retail Plan, Reliance Pharma Fund, Reliance Media and Entertainment Fund, Reliance Growth Fund-Retail plan, Reliance Vision Fund-Retail Plan, Reliance Equity Opportunities Fund-Retail Plan, Reliance Equity Fund- Retail Plan and Reliance Equity Advantage Fund-Retail Plan.

According to the revised load structure the fund will charge for subscription of less than Rs 5 crore an exit load of 1% if the investment is redeemed/ switched on or before completion of 1 year from the date of allotment. The schemes should not charge an exit load if investment units are redeemed/ switched after completion of 1 year from the date of allotment. However, the scheme may not charge an exit load for subscription of Rs 5 crore and above.

The aforesaid changes will be effective from 20 February 2008.

Gujarat Industries Power Company Stocks Likely To Benefit MF Scheme

Share prices of Gujarat Industries Power Company went up by 4.98% to Rs. 98.10 reported at BSE at 11.56 a.m. on 18 February 2008 against previous day close of Rs 93.45.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. DWS Tax Saving Fund (G) 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. DWS Tax Saving Fund (G) was holding 2.15% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 1.25 lakh units of the company in January 2008.

Other schemes, which likely to gain includes DWS Investment Opportunity Fund (G) with holding of 1.15 lakh units (1.82% of its portfolio), and UTI-Dividend Yield Fund (G) with 12.82 lakh units holding (1.77%) as on 31 January 2008.

Lotus India MF Launches Lotus India Fixed Maturity Plans- 375 Days -VII

Lotus India Mutual Fund launched Lotus India Fixed Maturity Plans- 375 Days -VII. 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 scheme offers retail and institutional plans with growth and dividend options.

ICICI MF Announces 20pc Dividend On Dynamic Fund

ICICI Prudential Mutual Fund announced dividend of 20%, or Rs 2.00 per unit (on a face value of Rs 10 per unit) on ICICI Prudential Dynamic Fund.The dividend record date is Feb. 15, 2008. Dividend distribution is subject to the availability and adequacy of distributable surplus. After the distribution of dividend, the NAV will fall to the extent of the dividend and distribution taxes, if any.

HSBC MF Declares Dividend

HSBC Mutual Fund has announced 21 February 2008 as the record date for declaration of dividend under dividend option of HDFC Interval Fund-Plan I. The fund house has decided to distribute 100% of surplus available under its both retail and wholesale plans as on record date. The NAV for the scheme was Rs. 10.1165 as on 14 February 2008.

HDFC Interval Fund-Plan I is a debt oriented interval scheme, seeks to generate returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the respective plan.

Principal Pnb MF Revises Load Structure

Principal Pnb mutual fund has announced the revision in the exit load structure for Principal Government Securities Fund-Investment Plan. According to the revised load structure the fund will charge for investment below Rs 25 crore an exit load of 1% if the investment is redeemed within 365 days from the date of allotment. However, the scheme may not charge an exit load for investment of Rs 25 crore and above.

The scheme did not charge any exit load under existing load structure. The aforesaid changes will be effective from 18 February 2008.

Principal Government Securities Fund-Investment Plan is an open ended dedicated gilt scheme. The investment objective of the scheme is to generate risk free returns through investment in sovereign securities and thus provide medium term capital gains and income distribution to its unit holders, while at all time emphasizing the importance of capital preservation.

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

Name of fund: HDFC Fixed Maturity Plan 90 Days February 2008

Scheme: Close end income fund.

Objective: The investment objective of the fund is to generate regular income through investments in debt, money market instruments, and government securities.

Options: HDFC Fixed Maturity Plan 90 Days February 2008 offers wholesale plan and retail plan with growth and dividend option.

The Minimum Investment Amount:

Under retail Plan: Rs. 5,000 and in multiple of Re. 1 thereafter per application

Under wholesale Plan: Rs. 1 Crore and in multiples of Re. 1 thereafter per application

Asset allocation:

Debt securities and money market instruments: 60-100%

Government securities: 0- 40%

Securitised debt: Up to 75% of net assets of plan

Snapshot

Face value: Rs 10

Offer opens: 18 February 2008

Offer closes: 20 February 2008

Entry load: Nil

Exit load: The fund would charge an exit load of 0.75% if the units are redeemed or switched out before maturity.

Benchmark Index: Crisil Liquid Fund Index

Fund Manager: Mr. Shobhit Mehrotra.

IRDA Advises Changes To Rural, Social Obligations

Hyderabad: The Insurance Regulatory and Development Authority (IRDA) has advised amendments to Obligations of Insurers to Rural or Social Sectors Regulations, 2002. The amendments also give for alignment of obligations with the IRDA (Micro Insurance) Regulations, 2005. As per the Gazette notification hosted on IRDA's Web site, the rural obligations after the sixth financial year for a life insurer should have 18 per cent of the total policies written direct in the seventh financial year, followed by 19 per cent in the eighth and ninth financial years and 20 per cent in the tenth financial year. All insurers should give cover for 25,000 lives, 35,000, 45,000 and 55,000 in the seventh, eighth, ninth and tenth financial years of operation. In the social sector, LIC should give cover to 25 lakh lives each from 2007-08 to 2009-10. The general insurers should have 6 per cent of the total gross premium written in the rural sector during 2007-08 followed by 7 per cent up to 2009-10.

Lotus India MF Garners Rs.60 Crore Through Its Gilt Fund

Lotus India Mutual Fund has collected Rs 60 crore through its Lotus India Gilt fund during its initial offer period from 30 January 2008 to 6 February 2008. Lotus India Gilt fund has collected amount around Rs 60 crore. The Lotus India Gilt fund, which is open-ended dedicated gilt fund, was opened for subscription between 30 January-6 February 2008. The objective of the fund is to generate optimal returns by investing in a portfolio of securities issued and guaranteed by Central and state government. Lotus India Gilt Fund offers two plans short duration plan and long duration plans. Both plans will have two sub plans i.e. retail and institutional plan. These two-sub plans will have growth and dividend option with reinvestment and payout sub-option under it.

HDFC MF Denies Call Off 90Days Plan

HDFC Mutual Fund has denied having cancellation of its 90 Days scheme launched under HDFC Fixed Maturity Plans Series-VI. The scheme was launched on 19 January and will close on 18 February 2008.

Hindustan Petroleum Corporation Stocks Likely To Benefit MF Scheme

Share prices of Hindustan Petroleum Corporation went up by 4.00% to Rs. 309.50 reported at BSE at 10.33 a.m. on 15 February 2008 against previous day close of Rs 297.60.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. Lotus India Equity Fund (G) 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. Lotus India Equity Fund (G) was holding 7.32% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 2.93 lakh units of the company in January 2008.

Other schemes, which likely to gain includes Lotus India Contra Fund (G) with 1.83 lakh units holding (7.00% of its portfolio), and ABN AMRO Dividend Yield Fund (G) with 27732 units holding (5.36%) as on 31 January 2008.

Power Finance Corporation Loses By 2.90%

Share prices of Power Finance Corporation went up by 2.90% to Rs. 179.40 reported at BSE at 10.22 a.m. on 15 February 2008 against previous day close of Rs 184.75.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the company. Junior BeES 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. Junior BeES has 4.17% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 1.91 lakh units of the company in January 2008 compared to its peer groups who have invested in the stocks of the company.

Other schemes, which may affect includes LICMF Growth Fund (G) with 1.23 lakh units (3.05% of its portfolio), ING L.I.O.N Fund (G) with holding of 61571 units (2.19%) as on 31 January 2008.

Kotak MF Declares Dividend

Kotak Mutual Fund has announced 20 February 2008 as the record date for declaration of dividend under dividend option of Kotak Quarterly Interval Plan Series 3.

The fund house has decided to distribute 100% of surplus available as on record date. The NAV for the scheme was Rs. 10.1188 as on 13 February 2008.

Kotak Quarterly Interval Plan Series 3 is an interval debt fund. The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

Record Date In Reliance Monthly Interval Series I

Reliance Mutual Fund has announced February 14, 2008 as the record date for the declaration of dividend under the Retail and Institutional Plans of Reliance Monthly Interval Fund Series I. The quantum of dividend will be 100 per cent of distributable surplus available on the record date.

UTI MF Declares Dividend For UTI Spread Fund

The UTI mutual fund has announced the declaration of dividend under dividend option of UTI-Spread between Price of Equity And Derivative Fund (UTI SPrEAD Fund). The record date for dividend will be 19 February 2008. The quantum of dividend is 8% i.e. Rs. 0.80 per unit on the face value of Rs. 10. The NAV of the scheme was recorded at Rs 11.4800 as on 12 February 2008.

UTI SPrEAD Fund is open-ended equity fund investing in a mix of equity, equity, debt, and money market instruments. The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price difference between the cash and derivative market by investing predominantly equity and equity-related securities, derivatives and the balance portion in debt securities.

HDFC MF Call Off 90Days Plan

HDFC Mutual Fund has shelved its 90-day income plan under HDFC Fixed Maturity Plans Series-VI. An official from the fund house said, “We have called off the scheme, as it did not bring out good response but we may launch it later.”

Principle Pnb MF Declares Dividend Under FMP Series

The Principle Pnb mutual fund has announced the declaration of dividend under dividend option of Principle Pnb Fixed Maturity Plan-91 Days-Series XII. The record date for dividend will be 18 February 2008. The AMC plans to distribute entire appreciation in the NAV of dividend option between 20 November 2007 to 18 February 2008 as dividend. The NAV of the scheme was recorded at Rs 10.1969 as on 12 February 2008.

Principle Pnb Fixed Maturity Plan-91 Days-Series XII is close-ended debt scheme with an investment objective of building an income-oriented portfolio and providing returns along with regular liquidity to investors.

Thermax Stocks Likely To Benefit MF Scheme

Share prices of Thermax went up by 5.24% to Rs. 667.00 reported at BSE at 11.04 a.m. on 14 February 2008 against previous day close of Rs 633.80.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. Canara Robeco Emerging Equities (G) 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. Canara Robeco Emerging Equities (G) was holding 7.60% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 20000 units of the company in January 2008.

Other schemes, which likely to gain includes Canara Robeco Equity Diversified (Bonus) with 95000 units holding (5.73% of its portfolio), and Magnum Multiplier Plus 93 (G) with 9.77 lakh units holding (5.44%) as on 31 January 2008.

Mutual Funds Continue Selling

Mutual funds (MFs) sold shares worth a net Rs 98.40 crore on Tuesday, 12 February 2008, compared to their selling of Rs 570.80 crore on Monday, 11 February 2008. MFs' net outflow of Rs 98.40 crore on 12 February 2008 was a result of gross purchases of Rs 720.80 crore and gross sales Rs 819.20 crore. The 30-share BSE Sensex fell 22.90 points or 0.14% at 16,608.01 on that day. MFs were net sellers of shares worth Rs 631.90 crore in this month, till 12 February 2008.

CRISIL Awards Aaafr To ICICI Pru FMP

MUMBAI: CRISIL has awarded AAAfr rating to ICICI Prudential Fixed Maturity Plan - Series 33 - Plan A, the first-ever rating on equity-linked fixed maturity plan. The rating shows that the fund's portfolio will give 'very strong' protection against losses due to credit defaults. The rated fund has a maturity of 33 months. The 'r' suffix on the rating shows that payments on the rated instrument have risks other than credit risk: some of the fund's investments will be in equity-linked debentures. The rating is not an opinion on IPAMCL's willingness or ability to make timely payments to investors.

ICICI-Pru MF To Launch First FMP For Retail Investors

Following the success of foreign banks led by Citicorp Finance, DSP-Merrill Lynch and Barclays Group in selling bonds linked to the Nifty to wealthy Indians, India’s second largest mutual fund house ICICI-Prudential is offering a similar product to the retail investors.

“ICICI Prudential’s equity-linked Fixed Maturity Plan (FMP) endeavours to couple the best features of equity and FMP. The most striking feature of equity is its growth potential and the most salient feature of ‘FMP’ is its structure of downside protection. We hope to achieve the twin objective through the product,” said Nilesh Shah, deputy managing director & CEO of ICICI-Prudential.

ICICI’s product was India’s first equity-linked FMP, according to Shah. Traditional equity mutual funds offer investment solutions that generally provide market-linked returns when the equity market goes up and negative returns when the market falls.

“Conventional investors fear a loss of money when the equity markets go down. This fear is further strengthened when they evaluate data on Nifty’s past performance. Over a three-year period, Nifty has given negative returns in one out of four days (since inception in July 1990 till November 2007). When the Nifty has ended positive, it has given an average CAGR of 17.43 per cent, which is much higher than the returns from any other regulated investment avenue,” Shah explained.

This product would have ideally protected investors from wealth erosion in the recent crash, he added. “The equity-linked FMP brings an investment solution that offers risk-managed returns. This kind of product is popular among HNI clients of foreign banks. The minimum ticket size for the product being offered by foreign banks is Rs 10 lakh and above.

“The investors profit when the Nifty goes up. If the Nifty goes down, the fund is designed such that investors do not lose their initial corpus. That is the beauty of the product,” said Shah.

Deutsche MF Raises Rs.232 Crore Through FTF

Deutsche Mutual Fund has collected Rs 232 crore through its DWS Fixed Term Fund- Series 44 during its initial offer period from 21 January 2008 to 6 February 2008.

DWS FTF Series 44 has collected amount of more than Rs 232 crore. The DWS FTF – Series 44, which is a 12 months close-ended debt fund, was open for subscription between 21 January-5 February 2008. The objective of the fund is to generate regular income by investing in fixed income securities and money market instruments, usually maturing in line with the time profile of the fund.

The investors will have the choice of two plans viz. regular plan and institutional plan. Each plans offers growth and dividend option.

The fund will invest up to 100% in domestic debt instruments including government securities and money market instruments and securitised debt.

Lotus India MF Garners Rs.60 Crore Through Its Gilt Fund

Lotus India Mutual Fund has collected Rs 60 crore through its Lotus India Gilt fund during its initial offer period from 30 January 2008 to 6 February 2008.

Lotus India Gilt fund has collected amount around Rs 60 crore. The Lotus India Gilt fund, which is open-ended dedicated gilt fund, was opened for subscription between 30 January-6 February 2008. The objective of the fund is to generate optimal returns by investing in a portfolio of securities issued and guaranteed by Central and state government.

Lotus India Gilt Fund offers two plans short duration plan and long duration plans. Both plans will have two sub plans i.e. retail and institutional plan. These two-sub plans will have growth and dividend option with reinvestment and payout sub-option under it.

Standard Chartered MF Declares Dividend

Standard Chartered Mutual Fund has announced 18 February 2008 as the record date for declaration of dividend under dividend option of Standard Chartered Fixed Maturity Plan-Quarterly Series 19. The AMC plans to distribute entire appreciation in the NAV of dividend option since inception until 18 February 2008 as dividend. The scheme will also mature on 18 February 2008.

Standard Chartered Fixed Maturity Plus -Quarterly Series 19 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.

HDFC MF Declares Dividend

HDFC Mutual Fund has announced 18 February 2008 as the record date for declaration of dividend under dividend option of HDFC Fixed Maturity Plan 91 Days November 2007 under HDFC Fixed Maturity Plan –Series VI .

The fund house has decided to distribute 100% of surplus available under its both retail and wholesale plans as on record date. The NAV for the scheme was Rs. 10.1996 as on 11 February 2008.

HDFC Fixed Maturity Plan 91 Days November 2007 is a close-ended income scheme. The investment objective of the scheme is to seek to generate income by investments in debt, money market instruments, and government securities.

ING MF Launches ING FMP- Series 41

ING Mutual Fund has launched a new scheme called ING FMP- Series 41 and it is a close- ended bond scheme. The scheme seeks to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in so as to minimise the impact of price fluctuation of such securities on the value at maturity. The new fund offer period will be opened only for one-day i.e. on11 February 2008

Minimum Investment Amount: The minimum investment amount is Rs 5,000 and in multiple of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 1 crore in multiple of Re 1 thereafter.

ABN Amro MF Changes Minimum Subscription Amount

ABN Amro Mutual Fund has annouced that reduction of the minimum subscription amount for the all series of ABN Amro Flexible Short Term Plan, all series of ABN Amro Interval Fund with effect from 8 February 2008. The minimum subscription amount of the above mentioned schemes are reduced from Rs 1,00,000 to Rs 10,000 during new fund offer and interval period.

Satyam Computer Services Stocks Likely To Benefit MF Scheme

Share prices of Satyam Computer Services went up by 3.80% to Rs. 425.60 reported at BSE at 11.19 a.m. on 11 February 2008 against previous day close of Rs 410.00.

The rising share prices may have positive impact on NAV of mutual fund schemes, which holds their stake in the company. Franklin India Taxshield 99 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. Franklin India Taxshield 99 was holding 14.17% of its total portfolio size invested in the stocks of the company as on 31 January 2008. The scheme holds 16280 units of the company in January 2008.

Other schemes, which likely to gain includes UTI-Software Fund (D) with 2.00 lakh units holding (10.27% of its portfolio), and Birla Sun Life New Millennium Fund (G) with 1.93 lakh units holding (7.95%) as on 31 January 2008.

Crisil Assigns Aaafr To ICICI Pru FMP

Crisil has assigned AAAfr rating to ICICI Prudential Fixed Maturity Plan – Series 33 – Plan A, the first-ever rating on equity-linked fixed maturity plan.

The rating indicates that the fund’s portfolio will provide ‘very strong’ protection against losses due to credit defaults. The rated fund has a maturity of 33 months. The 'r' suffix on the rating indicates that payments on the rated instrument have risks other than credit risk: some of the fund’s investments will be in equity-linked debentures.

The fund is managed by IPMF’s asset management company, ICICI Prudential Asset Management Company. The rating is not an opinion on IPAMCL’s willingness or ability to make timely payments to investors. It is also not an opinion on the stability of the fund’s net asset value, as the NAV could vary with developments in the market.

Crisil’s assessment of a bond fund’s credit quality is based on the creditworthiness of the fund’s portfolio.

Bank Of India Stocks Loses By 2.26%

Share prices of Bank of India stocks lost by 2.26% to Rs. 353.00 reported at BSE at 10.39 a.m. on 12 February 2008 against previous day close of Rs 361.15.

Declining share prices may have negative impact on NAV of mutual fund schemes, which holds their stake in the bank. Kotak PSU Bank ETF is likely to lose 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 has 5.37% of its total portfolio size invested in the stocks of the bank as on 31 January 2008. The scheme holds 1.05 lakh units of the bank in January 2008 compared to its peer groups who have invested in the stocks of the bank.

Other schemes, which may affect includes PSU Bank BeES with 4.99 lakh units (5.37% of its portfolio), Bank BeES with holding of 42.91 lakh units (3.58%) as on 31 January 2008.

Standard Chartered MF Files An Offer Document

Name of Fund: Standard Chartered Fifty Fifty Equity Fund

Scheme: It is open-ended equity scheme.

Objective: The investment objective of the scheme is to seek to generate long-termcapital appreciation by investing in Equity and Equity related instruments.

Investment Options: The scheme offers the dividend and growth option for the investment under the scheme. The dividend reinvestment and dividend payout facilities are available under dividend option

Asset Allocation: The fund will invest 65%-100% in equities & equity related instruments. Of which, 0-50% investment will be in equity and equity related instruments of companies in a chosen sector i.e. sector specific exposure and 50-100% in equity and equity related instruments of companies across capitalizations and across sectors i.e. diversified exposure.

The investment in debt and money market instruments will be 0%-35%. Investment in securitized debt can be made up to 35% of the portfolio. Investments in derivatives can be made 100% of the net assets of the scheme. Investments in securities lending can be made up to 35% of the net assets of the scheme. Investments in foreign debt instruments can be made up to 35% of the net assets of the scheme. Investments in ADRs and GDRs issued by Companies in India will be up to 50% of the net assets of the scheme.

Face Value: Rs 10

Entry Load: There will be 2.25% an entry load charged for the purchases of less than Rs 5 crore. The scheme will not charge any entry load for the purchases of Rs 5 crore or more.

Exit Load: In case of purchases of less than Rs. 5 crore, if redeemed within 1 year from the date of purchase applying first in first out basis, the scheme will charge an exit load of 1%. There will be no exit load for purchases of Rs. 5 crore or more.

Minimum Investment Amount: The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter.

Minimum target amount: Rs 1 crore

Benchmark index: Nifty

Fund Manager: Mr. Kenneth Andrade and Mr. Punam Sharma