The top five mutual fund houses in the country saw their folio share increase by 6 per cent from 52 to 58 per cent in FY ’11 despite the industry witnessing a decline in the number of folio accounts. Only HDFC and ICICI Prudential saw an increase in folios. However, despite a drop in folio accounts, fund houses such as UTI, Reliance MF and Birla Sunlife saw their share increase in the MF industry. UTI, with its strong retail presence, saw its folio share increase from 19.7 to 21 per cent. Reliance holds the second largest share at 15.8 per cent. It was 14.7 per cent at the end of FY ’10. HDFC saw its share go from 7.7 to 9.9 per cent, ICICI Prudential from 5.4 to 5.9 per cent and Birla Sun Life from 4.8 to 5.1 per cent.
News Source – BUSINESS LINE.
Indian fund houses are trying to cash in on the opportunity for international funds amid waning returns from local markets. Encouraged by the robust returns, many fund houses are increasingly investing beyond the boundaries to tide over the local downtrend. Leading fund houses, including DSP Blackrock, JP Morgan Mutual Fund, Deutsche Mutual Fund, and Franklin Templeton, have sought approval from the capital market regulator Sebi to launch international feeder funds. JP Morgan Asean equity offshore fund is currently raising money from the market.
News Source – ECONOMIC TIMES.
NEW FUND LAUNCH
Axis Mutual Fund has launched Axis Fixed Term Plan – Series 14 (368 days), a close ended income scheme. The new issue is open for subscription from 22nd June and closes on 28th June 2011.
News Source – AMFI INDIA.
Taurus Mutual Fund has launched a new fund named as Taurus Fixed Maturity Plan -Series H (91 Days), a close ended debt scheme with the duration of 91 days from the date of allotment of units. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 20 June and close on 23 June 2011.
News Source – NAV INDIA.
The Securities and Exchange Board of India has decided to have uniform know your customer (KYC) norms for all SEBI regulated entities.
“I found out that different market intermediaries regulated by SEBI have different KYC requirements, only after I joined SEBI,” said the SEBI Chairman, Mr U.K. Sinha, at the CII mutual fund summit in Mumbai on Wednesday. With this an investor has to satisfy the KYC requirement only once for all capital market transactions and that would be applicable across all intermediaries providing economy of effort.
He asked the fund houses to disclose the components of their business based on their origin whether they belong to institutional or retail investors.
He also advised them to reveal the track record of fund managers, a step that could increase inflows into schemes handled by performers and also increase the need to retain performing fund managers.
The stock market regulator also has plans to regulate the mutual fund distributors. “We are seriously looking into it. We plan to start out with a limited number of large distributors,” Mr Sinha said. “The attempt is regulate them in a non-disruptive manner and will be disclosure based.” This would make distributors accountable and promote good selling practices.
News Source – BUSINESS LINE.