GENERAL

1.MFs hail their knight in shining armour.

Distributors came to the CII Mutual Fund Summit with expectations, and they were given a lot to smile about. Mutual funds complained of "image" battering bad language, but they got some music to their ears. Even the usually insatiable media ran out of questions when met with patient, detailed answers. Welcome to Sebi and the art of keeping everyone happy, now playing in India's Rs 6-trillion fund industry.

"He is our man. Whatever he does will only be good for us," said V Kasinathan, a Salem-based financial advisor after Sebi chairman UK Sinha completed his key note address. Independent financial advisors (IFAs) like Kasinathan have lost seven per cent market share to banks and organised distributors since Sebi banned entry loads in 2009. But Sinha on Wednesday hinted that Sebi would provide incentives for the middlemen. "It is very encouraging," said Shirish Patel, CEO, Prudent Corporate Advisory Services Ltd.

News Source – BUSINESS STANDARD.

2.SEBI wants to regulate MF distributors.

 

The stock market regulator has plans to bring mutual fund distributors within its fold. "We are seriously looking into it. We plan to start out with a limited number of large distributors," said Mr U.K. Sinha, Chairman, SEBI, at CII's Mutual Fund summit here on Wednesday. "The attempt is to regulate them in a non-disruptive manner, and it will be disclosure based."

News Source – BUSINESS LINE.

3.Attract savings of low-income groups from rural areas: RBI to MFs.

The Reserve Bank of India (RBI) has asked the domestic mutual fund industry to come up with appropriate schemes to attract the savings of low-income groups especially in the rural areas of the country. The Central Bank said that despite having a long history, the fund industry has assets less than 10 per cent of the country's GDP.

Subir Vithal Gokarn, deputy governor of RBI, said, "Role of mutual funds in promoting saving at this point continues to be insignificant in India. Attracting low-income groups is the only way to ensure participation of all categories (of investors) in the financial market as mutual funds clearly have a role in financial development." He was speaking at the 7th Mutual Fund Summit of Confederation of Indian Industry (CII).



News Source – BUSINESS STANDARD.

 

DIVIDEND

1.HDFC Mutual Fund announces dividend under its Medium Term Opportunities Fund.

HDFC Mutual Fund has declared dividend under HDFC Medium Term Opportunities Fund, on the face value of Rs 10 per unit. The quantum of dividend under distribution is Rs 0.177 per unit for individuals and HUF and Rs 0.1517 per unit for others. It is an open ended income scheme with an investment objective to generate regular income through investments in debt or money market instruments and Government securities with maturities not exceeding 60 months. The record date for dividend distribution is 28th June 2011.

News Source – MUTUAL FUND INDIA.

GENERAL

2.AMFI wants direct line with independent financial advisors.

The Association of Mutual Funds in India (AMFI) has expressed its desire to open a proper communication channel with independent financial advisors. The AMFI has asked independent financial advisors (IFA) to form a body of their own that can regularly interact with AMFI to air their grievances to address distribution-related concerns of fund houses. "Distribution is a grey area for us," said Mr H.N. Sinor, Chief Executive, AMFI, at CII's annual mutual fund summit on Wednesday. "We do not have any kind of structured interaction with banks or the IFA community."

News Source – BUSINESS LINE.

Latest Indian Mutual Fund News | 23-June-2011
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