Latest Indian Mutual Fund News | 24-Oct-2011


1.Mutual Funds give Systematic Investment Plans the flexible edge to retain clients.

Systematic investment plans (SIPs), the cash cow for mutual fund companies, are witnessing a slew of features being added that provide flexibility to investors to time the market that prevents them from stopping subscriptions during bearish phases. Edelweiss Mutual, ICICI Prudential MF, HDFC MF, Reliance Mutual and DSP Blackrock are others that have come out with flexible investment options in SIPs where they could choose various index levels at which their funds could be invested.


2.Mutual funds of less than a year duration deliver double digit returns.

In a bear market, taking shelter in bonds has been the ideal choice, going by the returns generated in the last one year by mutual funds investing in short-term bonds. Over a one-year period, even as equity benchmark indices BSE Sensex and CNX Nifty lost 14 per cent in value, a few short-term income funds clocked returns as high as 15 per cent.

Short-term income funds managed an average return of 8.1 per cent in the last one year. The top performing funds such as Sundaram Select Debt Fund and Peerless Short Term, Escorts Short Term generated returns of 13-15 per cent.

News Source – BUSINESS LINE.

3.UTI Money Market Fund revises load structure.


UTI Mutual Fund has announced change in load structure under UTI Money Market Fund on prospective basis, with effect from 24 October 2011. The revised load structure in comparison to nil existing load structure will be: 0.50% if investment made on or after 24 October 2011, is redeemed on or before 3 days from the date of acceptance.

News Source – NAV INDIA.


4.Indiabulls AMC launch maiden liquid fund.


Indiabulls Asset Management Company (AMC) on Saturday announced the launch of its maiden scheme, Indiabulls Liquid Fund. The new fund offer (NFO) opens for subscription on October 24 and closes on the same day, the private mutual fund house said in a statement here. The fund, an open-ended liquid scheme, where entry load is not applicable and exit load is nil, offers two options of growth and dividend, it said. The scheme is benchmarked against Crisil Liquid Fund Index.



5.Edelweiss Mutual Fund declares dividend under Edelweiss Absolute Return Fund.

Edelweiss Mutual Fund has declared dividend under Edelweiss Absolute Return Fund, on the face value of Rs.10 per unit. The quantum of dividend for distribution will be Rs 0.18 per unit. Edelweiss Absolute Return Fund is an open ended equity scheme with an investment objective to generate absolute returns with low volatility over a longer tenure of time. The record date for dividend distribution is 28th October 2011.



6.Fund file: half full or half empty on India?

Local fund managers in India are brushing off bad news and expecting to profit from the exit by many foreigners from the country's stock markets, according to a report in Monday's FTfm. Investors anxious to minimize risk have been selling Indian stocks, explains Ajit Dayal, chairman of Quantum Asset Management. "Therefore the markets are exposed to near-term downside risk [but] for long-term value investors, this sell-off is a buying opportunity."

Foreign investment outflows from Indian equities reached Rs23.5bn ($470m) this year as repeated interest rate rises threaten growth and global headwinds continue to blow from the euro zone crisis and a slowing US economy. And stock performance would seem to vindicate their departure. The benchmark India Sensex 30 index dropped 13 per cent in the three months to September 30.

But you can't keep a good Indian fund manager down. Axis Mutual Fund, a domestic fund manager, recently closed its Axis Hybrid fund after raising almost $100m. The fund is designed to protect against downside risk through fixed income portfolios, while also allowing investors to participate in any market upside through option structures. Rajiv Anand, chief executive officer of Axis Mutual Fund, says there has also been strong demand for its Axis Triple Fund, which focuses on equities, fixed income and, most importantly in times of global economic stress, gold.



7.IDFC MF Unveils IDFC Fixed Maturity Plan Eighteen Monthly Series 9.

IDFC Mutual Fund has unveiled a new fund named as IDFC Fixed Maturity Plan Eighteen Monthly Series 9, a close ended income scheme with the duration of eighteen months. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 24 October and close on 2 November 2011.

News Source – NAV INDIA.
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