Latest Indian Mutual Fund News | 20-Oct-2011
Foreign fund houses seem to be gaining ground in the Indian mutual fund industry, which is dominated by local players. At a time when growth in the industry's asset under management is mostly stagnant, players abroad have put up a better show, managing a steady growth in gathering assets.
So far this year, foreign asset managers have registered a relatively high growth, owing to a low asset base, improvement in performance ratings and recognition of brands among investors. Not only have they seen a better growth rate than the overall industry, but the managers have also outpaced domestic fund houses by registering a more-than-three-times faster rate in building assets during the first half (April-September) of the current financial year. This has helped foreign houses increase their market share by 30 basis points to 10.86 per cent in the domestic fund market.
News Source – BUSINESS STANDARD.
India Inc's investments in mutual fund schemes have seen an increase as most banks have been refusing bulk deposits due to the high interest rates they have to offer. A senior official of a PSU bank said that rising interest rates have put pressure on net interest margins of banks, forcing them to reduce exposure to bulk deposits. As a result, corporations are turning to mutual funds to park their money. The banking sector's net interest margin is in the 3-3.5 per cent range, say banking analysts. Though most banks have been maintaining these levels, margins are slowly being eroded and is a cause for concern, they said.
News Source – BUSINESS LINE.
NEW FUND LAUNCH
IDBI Mutual Fund has announced the launch of IDBI Gold ETF, an open ended Gold Exchange Traded Fund. The new fund will open for subscription on 19 October, 2011 and close on 2 November, 2011.
News Source – INDIA INFOLINE.
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