Mumbai: Domestic mutual funds have continued sellers in the five months to May, quite unlike foreign institutional investors (FIIs), which have been big purchasers. While mutual funds liquidated stocks worth Rs 700 crore between January and May this year, FIIs have remained to shop for Indian equities, the tab at Rs 17,267 crore, a 73 per cent increase over the amount they invested in the same period last year. Mutual funds seemed to be quite optimistic on the market last year, putting in Rs 13,811 crore in the first five months.
DSP Merrill Lynch says that it appears that cash levels are up because funds have been apprehensive of a correction in the market for some time. Moreover, several funds now prefer to buy futures because that market is fairly liquid. Besides, the market has become increasingly stock specific and so rather than being fully infused, funds are trying to pick the right stocks. Interestingly, FII inflows into the Indian market which now has a market capitalisation of Rs 1 trillionare strong despite the fact that Asian funds have been pulling out money from India.
Around 26 per cent of the regional funds have a 10 per cent plus country weight for India, compared with 19 per cent a year back. The inflows into India can be sourced to a host of India dedicated funds and some global funds. Apart from some India funds unveiled in the US, money has come in from several funds in West Asia. Besides, a few global funds have increased their allocations to India.
Tuesday, June 5, 2007
AMFI Chief Seeks To Extend Tax Breaks To Investments Abroad
Kochi: One of the primary reasons why Indian mutual funds and retail investors are still not infusing heavily in capital markets abroad is because these investments do not enjoy the tax breaks that are available to investments in Indian companies. Despite the liberalisation and globalisation of the economy, it is still compulsory for Indian mutual funds and asset management companies to infuse up to 65 per cent of their assets in Indian companies to enjoy the benefits of dividend and capital gains tax-breaks. AMFI has now given a offer to SEBI and Government of India, which could enable 100 per cent foreign investments by mutual funds and retail investors to enjoy similar tax-breaks. This is the prime reason why the recent declaration by the Government enhancing the foreign investment limits from $3 billion to $4 billion and individual fund limit from $150 million to $200 million in foreign capital markets did not elicit much response.
In order to use this enhanced facility, AMFI was thinking of creating new schemes for mutual funds, which will offer custom-built investment solutions for high net worth resident Indians to invest abroad. The real estate Mutual Funds are hoped to infuse in real estate companies, the debentures/bonds of these companies, its mortgage backed securities and its securities paper. This will enable the common man to participate in country's real estate boom. The mutual fund industry has taken effective steps to reach out to the retail sector and has opened 80 lakh accounts in 2006-07 through 1,300 outlets.
In order to use this enhanced facility, AMFI was thinking of creating new schemes for mutual funds, which will offer custom-built investment solutions for high net worth resident Indians to invest abroad. The real estate Mutual Funds are hoped to infuse in real estate companies, the debentures/bonds of these companies, its mortgage backed securities and its securities paper. This will enable the common man to participate in country's real estate boom. The mutual fund industry has taken effective steps to reach out to the retail sector and has opened 80 lakh accounts in 2006-07 through 1,300 outlets.
AUM Of MF’s Rises By 18.2%
The mutual fund industry closed May 2007 with Rs 4.14 lakh crore of assets under management (AUM). This was higher than what fund houses managed in April 2007: Rs 3.50 lakh crore - a rise of 18.2% in May 2007 over April 2007. AUM of fund of funds (FoFs) was Rs 2147.64 crore.
Out of the 30 mutual funds, 28 registered a rise in the AUM in May 2007 over April 2007. The top three funds witnessing a rise in the AUM included Lotus India Mutual Fund (73.6%), ING Vysya Mutual Fund (64.1%) and Benchmark Mutual Fund (41.8%).
Reliance Mutual Fund continued its run as the largest fund house in May 2007, followed by ICICI Prudential Mutual Fund. Reliance Mutual Fund topped the charts with Rs 59143.47 crore of AUM in May 2007- a rise of 21.1% over April 2007. This is clearly more than what ICICI Prudential Mutual Fund managed: Rs 50703.00 crore in May 2007 (a rise of 20.0% over April 2007).
Reliance Mutual Fund registered net purchases of Rs 10315.44 crore in May 2007 over April 2007. The other toppers also registered a rise in its AUM in May 2007 compared with April 2007. AUM of ICICI Prudential Mutual Fund, UTI Mutual Fund and HDFC Mutual Fund increased 20.0%, 12.8% and 14.8%, respectively, in May 2007. Occupying the third and fourth slots were UTI Mutual Fund and HDFC Mutual Fund, which had AUM of Rs 40070.16 crore and Rs 36146.66 crore, respectively. UTI Mutual Fund maintained its third position of the previous month (April 2007). HDFC Mutual Fund also maintained its fourth position of the previous month (April 2007).
The other top mutual funds, besides the top four, in April 2007 were Franklin Templeton Mutual Fund AUM (Rs 26276.35 crore), Birla Sun Life (Rs 23719.46 crore), and SBI Mutual Fund (Rs 19660.82 crore). All this major funds showed a rise in AUM in May 2007 compared with April 2007.
Reliance Mutual Fund recorded the highest inflow of Rs 10315.44 crore in May 2007, while ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund and HDFC mutual Fund, registered an inflow of Rs 8435.15 crore, Rs 5103.67 crore and Rs 4661.50 crore, respectively. HSBC Mutual Fund (Rs.2718.59 cr.), Fidelity Mutual Fund's (Rs. 2279.58 crore), Standard Chartered Mutual Fund (Rs. 2193.85 cr.) and Sundaram Fund (Rs. 2170.16 cr.) also witnessed substantial inflow of more than Rs 2000 crore. SBI Mutual Funds AUM increased Rs 1322.20 crore to Rs 19660.82 crore in May 2007.
Among the smaller players were Quantum Mutual Fund (Rs 61.05 crore), Escorts Mutual Fund (Rs 132.47 crore), BoB Mutual Fund (Rs 97.59 crore), Taurus Mutual Fund (Rs 305.47 crore) and DBS Chola Mutual Fund (Rs. 2473.08 crore).
Some of the other fund houses, each with less than Rs 5000 crore AUM, were Canbank Mutual Fund, JM Financial Mutual Fund and Morgan Stanley Mutual Fund. PRINCIPAL Mutual Fund closed May 2007 with Rs 13148.51 crore -higher than Rs 9540.94 crore it had in end-April 2007.
Sahara Mutual Fund clocked a decrease of Rs.1.21 crore in its AUM in May 2007 compared with April 2007, followed by DSP Merrill Lynch Mutual Fund, registering a decrease of Rs. 0.50 crore in its AUM in this period.
Out of the 30 mutual funds, 28 registered a rise in the AUM in May 2007 over April 2007. The top three funds witnessing a rise in the AUM included Lotus India Mutual Fund (73.6%), ING Vysya Mutual Fund (64.1%) and Benchmark Mutual Fund (41.8%).
Reliance Mutual Fund continued its run as the largest fund house in May 2007, followed by ICICI Prudential Mutual Fund. Reliance Mutual Fund topped the charts with Rs 59143.47 crore of AUM in May 2007- a rise of 21.1% over April 2007. This is clearly more than what ICICI Prudential Mutual Fund managed: Rs 50703.00 crore in May 2007 (a rise of 20.0% over April 2007).
Reliance Mutual Fund registered net purchases of Rs 10315.44 crore in May 2007 over April 2007. The other toppers also registered a rise in its AUM in May 2007 compared with April 2007. AUM of ICICI Prudential Mutual Fund, UTI Mutual Fund and HDFC Mutual Fund increased 20.0%, 12.8% and 14.8%, respectively, in May 2007. Occupying the third and fourth slots were UTI Mutual Fund and HDFC Mutual Fund, which had AUM of Rs 40070.16 crore and Rs 36146.66 crore, respectively. UTI Mutual Fund maintained its third position of the previous month (April 2007). HDFC Mutual Fund also maintained its fourth position of the previous month (April 2007).
The other top mutual funds, besides the top four, in April 2007 were Franklin Templeton Mutual Fund AUM (Rs 26276.35 crore), Birla Sun Life (Rs 23719.46 crore), and SBI Mutual Fund (Rs 19660.82 crore). All this major funds showed a rise in AUM in May 2007 compared with April 2007.
Reliance Mutual Fund recorded the highest inflow of Rs 10315.44 crore in May 2007, while ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund and HDFC mutual Fund, registered an inflow of Rs 8435.15 crore, Rs 5103.67 crore and Rs 4661.50 crore, respectively. HSBC Mutual Fund (Rs.2718.59 cr.), Fidelity Mutual Fund's (Rs. 2279.58 crore), Standard Chartered Mutual Fund (Rs. 2193.85 cr.) and Sundaram Fund (Rs. 2170.16 cr.) also witnessed substantial inflow of more than Rs 2000 crore. SBI Mutual Funds AUM increased Rs 1322.20 crore to Rs 19660.82 crore in May 2007.
Among the smaller players were Quantum Mutual Fund (Rs 61.05 crore), Escorts Mutual Fund (Rs 132.47 crore), BoB Mutual Fund (Rs 97.59 crore), Taurus Mutual Fund (Rs 305.47 crore) and DBS Chola Mutual Fund (Rs. 2473.08 crore).
Some of the other fund houses, each with less than Rs 5000 crore AUM, were Canbank Mutual Fund, JM Financial Mutual Fund and Morgan Stanley Mutual Fund. PRINCIPAL Mutual Fund closed May 2007 with Rs 13148.51 crore -higher than Rs 9540.94 crore it had in end-April 2007.
Sahara Mutual Fund clocked a decrease of Rs.1.21 crore in its AUM in May 2007 compared with April 2007, followed by DSP Merrill Lynch Mutual Fund, registering a decrease of Rs. 0.50 crore in its AUM in this period.
Monday, June 4, 2007
Mutual Fund Assets Touches Rs 4-Trn Mark
Mumbai: Assets owned by India's mutual funds reached the Rs 4-trillion mark for the first time. Reliance Mutual Fund reported a 21 per cent growth in its assets during May to sustain its number one status for the third month running, leaving behind peers ICICI Prudential and UTI Mutual Fund, which also posted decent gains in the same period. The total assets under management (AUM) of the mutual fund industry fetched at Rs 4,02,035.88 crore (excluding four mutual funds which have not disclosed their data on the Association of Mutual Funds in India (AMFI) website), a growth of 14.7 per cent from the last month's AUM of Rs 3,50,279.39 crore.
The Anil Ambani-controlled asset management company leads the AUM table with a total of Rs 59,143.47 crore for the month of May. The company's assets grew by Rs 10,315.44 crore during the period, a growth of 21 per cent from Rs 48,828.03 crore in April. Reliance MF is followed by ICICI Prudential Mutual Fund, UTI MF, HDFC MF and Franklin Templeton, which continue to hold on to their positions as India's top five fund houses. At number two, Prudential ICICI's assets stood at Rs 50,703 crore, which grew by 19.9 per cent from the previous month's Rs 42,267.85 crore.
UTI Mutual Fund asserted the third slot by growing its assets by over 12 per cent, from Rs 35,517 crore in April to Rs 40,070.16 crore in May. DFC Mutual Fund's AUM saw a rise of 14.7 per cent in May to Rs 36,146.66 crore from Rs 31, 511 crore in April, growing faster than UTI Mutual Fund. Franklin Templeton performed modestly well growing by 7.2 per cent to clock an AUM of Rs 26, 276.35 crore in May. Quantum grew by 6.39 per cent from Rs 57.38 crore in April to Rs 61.05 crore in May, while the AUM of Lotus stood at Rs 3,623.14 crore in May.
The Anil Ambani-controlled asset management company leads the AUM table with a total of Rs 59,143.47 crore for the month of May. The company's assets grew by Rs 10,315.44 crore during the period, a growth of 21 per cent from Rs 48,828.03 crore in April. Reliance MF is followed by ICICI Prudential Mutual Fund, UTI MF, HDFC MF and Franklin Templeton, which continue to hold on to their positions as India's top five fund houses. At number two, Prudential ICICI's assets stood at Rs 50,703 crore, which grew by 19.9 per cent from the previous month's Rs 42,267.85 crore.
UTI Mutual Fund asserted the third slot by growing its assets by over 12 per cent, from Rs 35,517 crore in April to Rs 40,070.16 crore in May. DFC Mutual Fund's AUM saw a rise of 14.7 per cent in May to Rs 36,146.66 crore from Rs 31, 511 crore in April, growing faster than UTI Mutual Fund. Franklin Templeton performed modestly well growing by 7.2 per cent to clock an AUM of Rs 26, 276.35 crore in May. Quantum grew by 6.39 per cent from Rs 57.38 crore in April to Rs 61.05 crore in May, while the AUM of Lotus stood at Rs 3,623.14 crore in May.
Friday, June 1, 2007
Mutual Funds Increase Buying In Equities
Domestic mutual funds (MFs) beef up buying 30 May 2007. They bought shares worth a net Rs 354.70 crore compared to a net outflow of Rs 4.20 crore on 29 May 2007. MFs made gross purchases worth Rs 874.10 crore, while their gross sales aggregated Rs 519.50 crore on that day. Till now for the month (till 30 May), MFs were net buyers of Rs 1783.09 crore in the Indian equity market. Mutual funds had pumped Rs 9062.34 crore into the Indian equity market in the financial year ended March 2007.
Tata Life Sciences & Technology Fund Revises Load Structure
Tata Life Sciences & Technology Fund has revised its entry load structure. Now, the fund will charge an entry load of 2.25% for investment amount less than Rs 2 crores instead of Rs.50 lakhs. But, in exit load no change has been made. It continues to be 1% for investment amount less than Rs.2 crores if redemption is made within 6 months.
Lotus India Mutual Fund Establishes Strong Retail Growth
In a span of just six months, Lotus India Asset Management Company Private Ltd. (LIAMC) has established one of the largest retail footprints across India. Lotus India AMC, at present, has presence in 52 locations across the country and targets to be in 100 by end 2007. Lotus India Asset Management Company Pvt. Ltd. uses the CAMS network across 108 locations for accepting applications and servicing its clients. They also have tie-ups with select Online Channel Partners that allow sales of Lotus India Mutual Fund products online.
Lotus India New FMP Collects Around Rs. 107 Cr
Lotus India Asset Management Company, a joint venture between Fullerton Fund Management Group (wholly owned by Temasek Holdings Pte. Ltd., Singapore) and Sabre Capital Worldwide, has reported the collections of around Rs. 107 crore during the NFO of the Lotus India Fixed Maturity Plan - 3 Months - Series IX, which closed on 28 May 2007. This plan seeks to generate income by investing in a portfolio of debt and money market instruments normally maturing in line with the duration of the scheme.
Lotus India Fixed Maturity Plan - 3 Months - Series IX offers two options i.e. Growth and Dividend Reinvestment. It opened for subscription from 24 May, 2007 and closed on 28 May, 2007. The minimum application amount was Rs 5000 and in multiples of Re 1 thereafter. Units were available at Rs 10 each. The scheme does not charge any entry load but there is an exit load of 0.75% on investments if redeemed before the maturity date.
Lotus India Fixed Maturity Plan - 3 Months - Series IX offers two options i.e. Growth and Dividend Reinvestment. It opened for subscription from 24 May, 2007 and closed on 28 May, 2007. The minimum application amount was Rs 5000 and in multiples of Re 1 thereafter. Units were available at Rs 10 each. The scheme does not charge any entry load but there is an exit load of 0.75% on investments if redeemed before the maturity date.
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