1.Mutual funds to disclose big distributors on websites from Nov 10.
In order to improve transparency, market regulator Sebi has asked all mutual funds to disclose names of distributors, who receive commission in excess of Rs 1 crore annually, on their websites. The fund houses, according to a Sebi circular, will have to disclose names of distributors having presence in more than 20 locations or those who have received over Rs 1 crore commission in a year. They would also have to disclose the amount of commission paid to distributors. The disclosure, which would also be uploaded on the MF industry body AMFI's website, would be mandatory from November 10, it added.
News Source – ECONOMIC TIMES.
2.ETFs turn the tide for MF industry.
The tide might be turning for the Rs.7 trillion Indian mutual fund (MF) industry, which had been was till recently complaining of vanishing investors since a ban on entry fees in August 2009.Investors are now buying exchange-traded funds (ETFs). Subscriptions in gold ETFs have more than doubled, and more than trebled in other ETFs between March 2010 and September 2011, when most other funds lost investors.
Gold ETFs and ETFs based on the Nifty, the 50-share broader market index of the National Stock Exchange, are most popular among investors. An ETF is a listed security that tracks an index, a commodity or a basket of assets such as an index fund, but trades like a stock on an exchange. ETF prices change on daily trading and are regarded as providing the diversification of an index fund with the flexibility of a stock. ETFs, which constituted 0.3% of the industry's overall folio in March last year, now, contribute 1.1% of total subscriptions.
News Source – LIVE MINT.
3.Institutional support, higher yields to give liquid funds an edge despite deregulated savings bank rate.
The recently deregulated savings bank rate is likely to challenge dominance of liquid funds, but higher yields and larger institutional investor participation will give these funds a competitive edge, said money managers. A section of banking analysts and experts believe investors will trace higher "risk-free" rates and move their investments from liquid funds to savings banks accounts. Liquid funds are products that invest in debt securities that include commercial papers (CPs), certificates of deposit (CDs) and treasury bills of maturities less than 91 days.
"With deregulation of interest rates in savings account, some investors might move their money to savings bank accounts as they offer higher liquidity and safety to the principal amount. The overall corpus might be impacted by the reduced difference between yields of savings account and liquid funds," ratings agency ICRA said in a report.
News Source – ECONOMIC TIMES.
NEW FUND LAUNCH
4.Religare MF Unveils Religare Fixed Maturity Plan – Series X – Plan D.
Religare Mutual Fund has unveiled a new fund named as Religare Fixed Maturity Plan – Series X – Plan D (18 Months), under Religare Fixed Maturity Plan – Series X – Plan A to F, close ended debt scheme. The tenure of the scheme is 18 Months from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 14 November and will close on 21 November 2011.
News Source – INDIA INFOLINE.