1.Tata Mutual Fund buys bank, engg, cement; drops IT.
Tata Mutual Fund has enhanced its exposure in banking & financial services, engineering & capital goods and cement & construction segment, while slashed its exposure in consumer non-durables, information technology and pharmaceuticals sector. Power Grid Corporation, Ambuja Cements and Coal India were the top buys, while KEC International, Rain Commodities and Consolidated Construction were the top sells.
News Source – MONEY CONTROL.
2.SIP an excellent tool to help achieve long-term goal.
The last few months have been a roller-coaster ride for the investors, with Sensex posting double-digit returns in the first five weeks of 2012, negating, to an extent, the negative returns of 24% for 2011. This takes us back to the saying investment is like watching the paint go dry or see the grass grow green. Disciplined systematic investment to reach your financial goals is the approach that is advocated and, today, increasingly gaining ground. Systematic Investment Plans (SIPs) are excellent tool in this regard.
News Source – FINANCIAL EXPRESS.
3.New FMPs to disclose sector exclusion list.
New FMP prospectuses will contain a sector exclusion list as per SEBI's new rule. Fund houses have to share the restricted sector list with investors so that they are aware where their money would be invested.
"SEBI has made it mandatory for new FMPs to mention the sectors that we would refrain from investing in. This is mainly because the regulator wants to control investment in risky assets. All AMCs are supposed to provide a sector exclusion list with its FMP prospectus," said an official of a large fund house.
News Source – CAFE MUTUAL.
Franklin Templeton Mutual Fund has announced change in exit load under FT India Feeder-Franklin U.S. Opportunities Fund, with effect from 14 February 2012 (after the scheme reopens for ongoing sales and repurchase). Accordingly, the revised exit load will be 1% if redeemed within 1 year of allotment, in respect of each purchase of units. All the prior investments continue to be subject to the load structure applicable at the time of the respective investment.
News Source – NAV INDIA.
5.Taking advantage of rate uncertainty.
Investors in debt funds are in a bind. While there are indications that Reserve Bank of India is likely to cut indicative rates, there is uncertainty on when it will happen and by how much. The existing rates of interest – eight per cent plus – is good. But if rates fall, it could be better for investors due to rise in prices. To take advantage of this uncertainty, a number of fund houses are lining up to launch open-ended dynamic bond funds.
Three fund houses – IDBI Mutual Fund, Pramerica MF and Union KBC – have already done so. Two more, Daiwa MF and Principal MF, have filed offer documents with the regulator, the Securities and Exchange Board of India (SEBI). Dynamic bond funds, as the name suggests, are able to take advantage of rate cuts or rises by altering their portfolio.
News Source – BUSINESS STANDARD.
6.UTI to spread financial literacy in Meghalaya.
The UTI 'Knowledge Caravan' will be passing through Megalaya next week with an aim to spread financial literacy across the country. This is the fourth caravan by UTI as part of its investor education initiative – 'Swatantra' – in partnership with the Union ministry of corporate affairs.
News Source – TIMES OF INDIA.
7.Liquid funds to give returns in line with money markets.
The Securities and Exchange Board of India (SEBI) has decided to change the valuation norms for debt and money-market instruments held by mutual funds. Instead of the earlier norm requiring these instruments to be marked to market, where the residual maturity exceeded 91 days, the new norms would see instruments with maturities of at least 60 days being marked to market (when these securities are not traded).
News Source – LIVE MINT.
NEW FUND LAUNCH
Reliance Mutual Fund launched Reliance Fixed Horizon Fund – XXI – Series 30, a close ended income scheme. The new issue is open for subscription from 14th February and closes on 22nd February 2012.
News Source – AMFI.