Latest Indian Mutual Fund News | 20-July-2011


1.FMP assets zoom to 3-yr high.

Steep short-term rates attract firms with money to park; retail involvement low. Mutual fund assets under fixed maturity plans (FMPs) have touched levels not seen since the collapse of Wall Street investment bank Lehman Brothers in 2008. FMPs are closed-end debt schemes that come with a specific tenure, typically three months to a year. These schemes invest in debt securities that mature just before or on the date of the scheme's maturity. According to data from Value Research, a New Delhi-based tracker of mutual funds, these schemes accounted for Rs 1.2 trillion (lakh crore), or 16 per cent of the Rs 7.43 trillion mutual fund industry at the end of June.


2.Fund houses want freedom to spend.

Sebi willing to listen, but wants lower expense ratio. The Securities and Exchange Board of India (Sebi) and mutual fund houses are engaged in an intense discussion that could lower costs for retail investors further, by as much as 20 per cent. Fund houses have asked the market regulator to give them freedom on the way they should use the expense ratio while maintaining the existing cap. The reason: They feel this freedom will help them to allocate funds, as per their requirement.



3.JM Financial MF Launches 367 Days Fixed Maturity Plan.

JM Financial Mutual Fund has launched a new fund named as JM Fixed Maturity Fund – Series XX – Plan A, a close ended income fund offering fixed maturity plans. The duration of the scheme will be 367 days from the date of allotment of units. During the New Fund Offer (NFO) period, units of the scheme will be offered at Rs 10 per unit. The new issue will be open for subscription from 27 July and closes on 2 August 2011.

News Source – NAV INDIA.

Latest Indian Mutual Fund News | 20-July-2011
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