Despite a positive investment trend in equity investment through mutual funds since November last year, the industry could not see an overall net inflow in its equity segment for the financial year 2010-11. The fund market saw a huge net outflow of Rs 13,405 crore from its equity assets, compared with a net inflow of Rs 595 in the previous financial year. According to Dhirendra Kumar, chief executive officer of Value Research (which tracks the Indian fund industry), “This is the highest outflow so far in absolute terms.” The underperformance of the equity markets kept the investor sentiment subdued during the first half of the year, when the redemption from equities reached as high as Rs 7,000 crore on a monthly basis.
News Source – BUSINESS STANDARD.
The ban on entry load for mutual funds, which took effect in August 2009, has not been as disastrous for mutual fund sales or for agents selling mutual funds, as was feared. Not only have retail investors returned in good numbers to mutual funds through the systematic investing route in the year after the ban, the individual distributors who were selling funds did not suffer a big setback in their share of investors’ accounts. These are the findings from the data for the period from August 2007 to July 2010, from a mutual fund registrar.
News Source – BUSINESS LINE.
NEW FUND OFFER
Axis Mutual Fund files offer document with Sebi to launch Axis Gold Fund, an open ended fund of funds scheme. The New Fund Offer price is Rs 10 per unit. To generate returns that closely corresponds to returns generated by Axis Gold ETF.
News Source – NAV INDIA.
Capital market regulator SEBI today asked mutual fund companies to come out with simple and less riskier products to enhance retail participation, even as it considered increasing investor awareness about mutual fund investment as the biggest challenge for the industry. “We are trying that the Mutual Fund companies should launch easier, cheaper and less riskier products to transact … to involve more people in Mutual Fund segment,” SEBI Executive Director KN Vaidyanathan said while delivering a talk on ‘Mutual Funds: Opportunities and Challenges’.
News Source – ECONOMIC TIMES.
NEW FUND LAUNCH
Reliance Mutual Fund Reliance Mutual Fund Reliance Dual Advantage Fixed Tenure Fund – I – Plan J, a close ended income scheme. The new issue is open for subscription from 11th April and closes on 25th April 2011.
News Source – AMFI INDIA.