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Latest Indian Mutual Fund News | 23-Nov-2011


1.DWS Fixed Term Fund Series-66 Announces Dividend.
Deutsche Mutual Fund has announced 28 November 2011 as the record date for declaration of dividend under the dividend payout option of DWS Fixed Term Fund Series-66. The quantum of dividend will be 100% distributable surplus as on the record date on the face value of Rs. 10 per unit.
2.Fund of funds score over regular equity funds.
Domestic fund of funds (FOFs) investing predominantly in equity funds have managed to beat equity diversified funds and equity benchmark indices on returns performance for one- and two-year periods. An investor investing equally in 12 equity FOFs (FOFs invest in other equity funds and abstain from direct stock investing), two years ago or one year ago, would have got better returns, compared with an investor investing equally in 150 regular equity diversified funds that invest directly in shares.
As per an FCRB analysis using Capitaline NAV India database, the average one-year returns of 12 equity FOFs was a negative 10.98 per cent, performing much less worse when compared with the average one-year negative returns of 20.94 per cent from equity diversified funds and equity benchmark index S&P CNX Nifty's one-year negative returns of 20.49 per cent. Even on their respective absolute two-year returns, the FOFs gave a 4.22 per cent in returns, against a negative 1.52 per cent returns from regular equity funds and negative 6.37 per cent returns of Nifty.
3.Mutual funds step up buying – Inflow of Rs. 212.80 crore on 21 November 2011.
Mutual funds (MFs) bought shares worth Rs. 212.80 crore on Monday, 21 November 2011, higher than inflow of Rs. 6.80 crore on Friday, 18 November 2011. The net inflow of Rs. 212.80 crore on 21 November 2011 was a result of gross purchases Rs. 605.80 crore and gross sales Rs. 392.90 crore. The BSE Sensex had lost 425.41 points, or 2.6% to settle at 15,946.10 on that day, its lowest closing level since 5 October 2011. Mutual funds have sold shares worth a net Rs. 254.10 crore in November 2011 (till 21 November 2011). They had sold shares worth a net Rs. 361.70 crore in October 2011.
4.New MFs arm themselves with new tricks.
Some fund houses prefer to start operations by launching passively managed schemes such as index funds and ETFs, as opposed to actively managed schemes, because of a low cost structure and very little maintenance. Apart from IIFL that aims to focus only on ETFs for the next year or so, others such as Motilal Oswal and IDBI Asset Management Co. Ltd that entered the Indian MF space in July 2010 and June 2010, respectively, have focused only on passively managed schemes on the equity side so far.
During this time, not only did ETF investments go up by the highest margin among all other categories of MFs, they were also one of the few categories to have grown positively in terms of folios. "Mutual fund houses are increasingly warming up to ETFs and passive funds, whether it's a new fund house or an old one. Goldman Sachs Asset Management Co. Ltd acquiring the erstwhile Benchmark Asset Management Co. Ltd recently is a case in point. Going forward, the general expectation is that new fund houses will launch more ETFs and other passive funds,"says Vivek Prasad, partner, PricewaterhouseCoopers Ltd.
News Source – LIVE MINT.
5.ICICI Prudential MF introduces ICICI Prudential Multiple Yield Fund Series 2 – Plan A.
ICICI Prudential Fund has announced the New Fund Offer (NFO) ICICI Prudential Multiple Yield Fund Series 2 – Plan A, a close ended income fund. The NFO opens for subscription on November 23, 2011 and closes on December 2, 2011. No entry and exit load charges is applicable for the scheme. 
News Source – LIVE MINT.


6.Birla Sun Life MF Declares Dividend For Short Term FMP – Series 15.

Birla Sun Life Mutual Fund has announced the declaration of dividend on the face value of Rs. 10 per unit under dividend option of Birla Sun Life Short Term FMP – Series 15 (close ended income scheme). The record date for dividend has been fixed as 28 November 2011. The quantum of dividend will be Rs. 0.4529 per unit.



7.RBI issues ruling for setting up Infrastructure Debt Funds.

The Finance Minister announced in the Union budget FY 2011-2012 to set up Infrastructure Debt Funds (IDFs), to facilitate the flow of long-term debt into infrastructure projects. Accordingly, the Reserve Bank issued broad parameters for banks and NBFCs to set up IDFs. The IDF will be set up either as a trust or as a company. A trust based IDF would normally be a Mutual Fund (MF) and is designated as "Infrastructure Debt Fund – Mutual Funds" (IDF-MF) while a company based IDF would normally be a NBFC and be called "Infrastructure Debt Fund – Non-Banking Financial Company (IDF-NBFC)".

News Source – MONEY CONTROL.


8.Tata Fixed Maturity Plan Series 37 Scheme D (369 days).

Tata Mutual Fund launched Tata Fixed Maturity Plan Series 37 Scheme D (369 days), a close ended income scheme. The new issue is open for subscription from 23rd November and closes on 29th November 2011.

News Source – AMFI INDIA.


Latest Indian Mutual Fund News | 23-Nov-2011
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