Exotic structured products, which adorned the portfolios of rich investors till about a year ago, are slowly being replaced by high-yielding debt funds and fixed maturity plans (FMPs). Higher fixed income yields, range-bound equities market and aversion to complex investment products are prompting HNIs to avoid structured products and invest in simple debt funds, wealth managers and product manufacturers said.
Apart from simple 'yield-plus-Nifty participation' type of products, none of the complex structures are being sold by wealth managers in significant numbers. These are structures designed to provide capital protection; nearly 75-80% of the corpus is held till maturity in bonds while the remaining portion is actively invested in a Nifty stock basket. The final payout is based on the return of the underlying equity.
News Source – ECONOMIC TIMES.
The next time the board of the Securities and Exchange Board of India (Sebi) meets, there could be fresh faces occupying the chairs meant for whole-time members. At least one new member is expected to come on board when it meets on July 28 to discuss key issues, including the proposed Takeover Code. Sebi whole-time members M S Sahoo and K M Abraham retired in July in a span of one week. While Sahoo's three-year tenure ended on July 13, Abraham will bid adieu tomorrow. Reports, meanwhile, suggest the ministry of finance has already zeroed on the successors to the two outgoing members.
News Source – BUSINESS STANDARD.
NEW FUND LAUNCH
UTI Mutual Fund has launched the New Fund Offer (NFO) UTI – Fixed Term Income Fund – Series X – III (370 Days), close ended income scheme. The NFO opens for subscription on July 20, 2011 and closes on July 26, 2011. The duration of the scheme will be 370 days from the date of allotment of units. No entry and exit load is applicable. The scheme offers dividend payout and growth option.
News Source – LIVE MINT.