1.Firm equity boosts MFs' asset base by 8% in Jan.
January saw a sharp increase in the equity AUM of the mutual fund industry due to the equity market appreciation, said analysts. The assets under management (AUM) of the mutual fund industry surged about eight per cent to Rs 6.6 lakh crore from Rs 6.1 lakh crore.
"(Equity) Market appreciation was the main factor which contributed to the rise in the AUM. There have not been too many redemptions as investors have been holding on to their investments through the SIP route. This is a positive sign, given the turmoil and uncertainty in the market," said Mr Gopal Agrawal, Chief Investment Officer and Head – Equity, Mirae Asset Global Investments (India). The AUM of the equity funds rose around 11 per cent to Rs 1.56 lakh crore in January 2012 from Rs 1.4 lakh crore in December 2011. Benchmark indices also rose by around 11 per cent raising the valuation of the equity funds.
News Source – BUSINESS LINE.
To help investors assess the quality of their investments and calibre of their fund managers, India's capital market regulator for the first time has asked the Rs. 6.8 trillion mutual fund industry to disclose every detail of the schemes it sells. In a recent letter, the Securities and Exchange Board of India (SEBI) has asked the country's 44 fund houses to provide details of all their schemes, the common benchmark and their returns, returns since inception of a particular scheme, and benchmark of the schemes and their returns.
Besides, they have been asked to disclose the scheme returns vis-a-vis the common benchmark and the scheme benchmarks; their returns in the past six months with respect to the benchmarks; their returns during the fiscal year 2009, 2010 and 2011, and their compounded returns in the past three and five years.
News Source – LIVE MINT.
As investors rush to put money in fixed maturity plans (FMPs) – one of the hottest mutual fund products – capital market regulator Sebi is trying to make sure that the bets don't backfire badly. In the last few weeks, fund houses coming out with new FMPs have been asked by senior SEBI officials to spell out the sectors they will refrain from investing in.
The regulator's concern stems from its experience in 2008-09, when many investors lost out as mutual funds, having invested in thinly-traded securities of real estate companies, were stuck when FMPs came up for redemption.
News Source – ECONOMIC TIMES.
UTI Mutual Fund has been awarded the "STAR FUND HOUSE OF THE YEAR-DEBT" by ICRA /ICRA online Ltd. The award indicates 'Best Performance' in the 'Debt Category' for one year period ending December 31, 2011. Out of 9 Mutual fund houses considered, UTI Mutual Fund has been awarded the "Star Fund House of the Year' in the debt category.
UTI Mutual Fund has also been awarded 7 ICRA Mutual Fund Awards 2012 for its various schemes viz. UTI Opportunities Fund, UTI MNC Fund (1 year and 3 years), UTI Wealth Builder Fund-Series II, UTI India Lifestyle Fund, UTI Gilt Advantage Fund-Long term and UTI Treasury Advantage Fund-Institutional Plan.
News Source – INDIA INFOLINE.
Axis Mutual Fund has announced that the New Fund Offer Period (NFO) of Axis Fixed Term Plan – Series 18 (15 Months) under Axis Fixed Term Plan – Series 17 – 19, a close ended debt scheme has been pre-poned from 27 February 2012 to 24 February 2012.
News Source – NAV INDIA.
6.Reliance MF bets big on fund-linked ATM card.
Reliance Mutual Fund is targeting a new business income of Rs 10,000 crore through the launch of its new mutual fund-linked ATM/debit card. The company, one of the largest in India in terms of assets under management (AUM), hopes to attract more retail investors into its fold through this product.
At a time when most mutual fund (MF) companies are getting a larger share of business from debt funds, short-term liquid funds and gold ETFs than equity funds, Reliance MF believes that the convenience the card offers in terms of easy redemption, will bring in more customers to its liquid funds.
News Source – FINANCIAL CHRONICLE.
7.Religare Fixed Maturity Plan – Series XIV – Plan A to F files offer document with SEBI.
Religare Mutual Fund has filed offer document with SEBI to launch Religare Fixed Maturity Plan – Series XIV – Plan A to F, a close ended debt scheme. The New Fund Offer price is Rs. 10 per unit. The scheme offers plans of tenure from 1 month to 60 months from the date of allotment of the respective plan(s) (including the date of allotment).
ICRA has ratings outstanding on 93 Liquid/Debt Mutual Fund (MF) schemes1 across 24 Asset Management Companies (AMCs) as on date. An analysis of the credit quality across the ICRA-rated schemes reveals that over 97% of the schemes continue to qualify comfortably for the highest rating levels within their respective maturity categories, while the balance qualify for the next rating level. During YTD FY12, the credit ratings of ICRA-rated schemes remained stable with no rating revisions with the schemes maintaining very high proportion of their investments in high credit quality debt instruments.
With volatility of returns across equity funds over the last few quarters, the debt category has emerged as a preferred investment option aided by higher returns amid a rising interest rate scenario. MF Industry debt AUM registered a 10% Y-o-Y increase for the 12M period ended Dec 31, 2011, driven by increase in assets under management (AUMs) of liquid funds and fixed maturity plans (FMPs). The overall industry AUM witnessed a moderate decline during the period, marked by a steep decline in equity AUM, driven by volatility of returns in the equity market. In line with the overall industry trend, the AUM of ICRA-rated debt schemes witnessed a 14% increase Y-o-Y as on Nov 30, 20112 and accounted for nearly 37% of the industry debt AUM as on that date.
News Source – MYIRIS.