1.MFs net sell Rs 361 cr in October 2011.
On October 31, 2011, mutual funds (MFs) were net sellers to the tune of Rs -150.00 crore in equities. They made gross purchase of Rs 413.60 crore and gross sales of Rs 563.60 crore. In the month of October so far, MFs were net sellers of Rs 361.70 crore. So far this year, MFs have sold the most in the month of September at Rs 730.80 crore, while August saw the highest level of buying in equities at Rs 2,523.50 crore.
News Source – MONEY CONTROL.
2.Decoding savings rate deregulation and how it impacts liquid funds.
Impact on liquid funds
Liquid funds are mutual funds that primarily invest in debt securities and offer higher post-tax returns as compared to savings deposits. They normally invest in commercial papers, certificate of deposits and treasury bills of maturities less than 91 days. Their mandate is to optimize returns while preserving capital.
But with deregulation of interest rates in savings accounts, some investors might move their funds towards these as it offers higher liquidity and safety of the principal amount. The overall corpus might be impacted by reduced difference between yields of both options.
However, liquid funds yield better returns if we take tax rate into account. It also provides a dividend option where only dividend distribution taxis deducted by fund houses before distribution. With deregulation, this category of mutual fund will definitely offer more innovation. Thus, one must spread his savings across liquid funds and savings account to get the benefit of both while savings deposits are easier to access and offer some degree of protection, higher yield combined with liquidity and taxation benefits make liquid funds attractive.
News Source – DNA INDIA.
NEW FUND OFFER
3.Axis Focused 25 Fund files offer document with SEBI.
Axis Mutual Fund files offer document with SEBI to launch Axis Focused 25, an open ended equity fund. The New Fund Offer price is Rs. 10 per unit. Investment objective: To generate long term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies. Plans/Options offered: Growth and Dividend option. Dividend option further offers Payout Facility and Reinvestment Facility.
News Source – INDIA INFOLINE.
4.Indiabulls Liquid Fund: Change in the Dividend Frequency.
Indiabulls Mutual Fund has announced the change in Indiabulls Liquid Fund with effect from November 01, 2011. Now, the revised record date for weekly dividend payout facility will be every Monday and for monthly dividend payout facility and monthly dividend reinvestment facility will be 1st of every month.
News Source – VALUE RESEARCH.
NEW FUND LAUNCH
5.Tata MF launches Tata Fixed Maturity Plan Series-37 Scheme C.
Tata Mutual Fund has launched Tata Fixed Maturity Plan Series – 37 Scheme C, a close-ended debt scheme. The fund will have a maturity of 368 Days form the date of allotment. The investment objective of the scheme is to generate income and / or capital appreciation by investing in wide range of Debt & Money Market instruments having maturity in line with the maturity of the respective schemes. The New Fund Offer (NFO) opens for subscription on November 01, 2011 and closes on November 08, 2011.
6.Reliance Fixed Horizon Fund – XXI -Series 13 Floats On.
Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXI – Series 13, a close ended income scheme with the duration of 371 days from the date of allotment. During the New Fund Offer (NFO) the scheme will offer units at Rs 10 per unit. The new issue will be open for subscription from 05 November and close on 08 November 2011.
News Source – NAV INDIA.
7.Religare MF launches Religare FMP – Series X -Plan C(18M).
Religare Mutual fund has come with new Fixed Maturity Plan, Religare Fixed Maturity Plan – Series X – Plan C (18 Months), a closed ended debt scheme. The scheme objective is to generate income by investing in a portfolio of debt and money market instruments maturing on or before the date of maturity of the Scheme. The New Fund Offer (NFO) opens for subscription on November 04, 2011 and closes on November 08, 2011. The offer price for the NFO is priced at Rs. 10 each.