Latest Indian Mutual Fund News | 01-Aug-2011


1.Sinha sings 'single' tune for retail investors.


One signature for trading account, KYC norm and transaction fee for MF. The Securities and Exchange Board of India (Sebi) took a big step on Thursday to make investment in capital markets easier. A revised format for opening a trading account will be introduced that will require the investor to make only a single signature. Earlier, almost 50 signatures were required.

Similarly, there will be only one Know Your Customer (KYC) requirement for transaction with all intermediaries, regulated by Sebi. For that, a KYC registration authority will be introduced. One of the important requirements of the authority will be inter-connectivity, where data can be shared across intermediaries. A customer will not be forced to go to a new agency every time he has to transact. Aadhar has been made one of the eligible parameters.


2.Fidelity may shift base from Hong Kong to India.


Fidelity Mutual Fund may be forced to shift its trading desk from Hong Kong to India with the capital market regulator, Sebi, deciding that operations of all local fund houses be based within the country. The Indian asset management subsidiary, as well as the FII arm of Fidelity, run their trading desks in Hong Kong, which also serve as the regional trading centre for the US financial services group.




1.With RBI rising rates, FMPs (fixed maturity plans) offer the best option among debt funds.


The RBI's sharp interest rate hike has raised some questions about the impact of its move on fixed income mutual funds. There has no doubt been an impact, but it's more in the nature of confirming and cementing an existing situation rather than resulting in any new change. Certainly, whenever interest rates rise, there is an impact on the price of debt securities and, thus, there should be a fall in the NAVs (net asset values) of funds that are holding these securities. Currently, rates have been on their way up steadily since February 2010, and no one can realistically say with any certainty when and where this trend will halt or reverse. The finance minister himself has said that this may not be the last hike.



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