Latest Indian Mutual Fund News | 19-Apr-2012


1.Short-term income funds to get attractive, FMPs to lose sheen.

The Reserve Bank of India’s move to cut interest rates is likely to make short-term income funds and dynamic bond funds more attractive. It will, however, take away a bit of sheen from fixed maturity plans (FMPs) – one of the most popular debt instruments preferred by rich investors when the interest rates are high. On Tuesday, yields of the 10-year government bonds slipped by about 10-12 basis points to 8.34% post the policy announcement. The yields for money market instruments, on the other hand, fell anywhere between 20 bps and 25 bps.

“With the rate reduction, liquidity conditions in the overnight market will improve. Hence, the yields of all near-maturity money market instruments will come off”, said Sujoy Das, head – fixed income, Religare MF.



2.Reliance Dual Advantage Fixed Tenure Fund II – Plan C.

 Reliance Mutual Fund launched Reliance Dual Advantage Fixed Tenure Fund II – Plan C, a close ended income scheme. The new issue is open for subscription from 16th April and closes on 30th April 2012.

News Source - AMFI.


3.UTI MF Withdraws Announcement on Change in Benchmark Index of UTI-Infrastructure Fund.

 UTI Mutual Fund (MF) on 9 March 2011 announced change in benchmark index of UTI-Infrastructure Fund from BSE 100 to UTI Infrastructure Index. However, it was not implemented after the announcement. Accordingly, the announcement stands withdrawn as on that date.


4.Franklin India Opportunities Fund – (G) outperforms BSE 200 over one year time period.

 Background: Franklin Templeton Assets Management (India) Pvt. Ltd. is a wholly owned subsidiary of Templeton International Inc. set up in February 1996. Franklin is one of the largest financial services groups in the world, based in California, USA. It has over 50 years experience in international investment management with offices in over 29 countries. The fund house was managing assets worth Rs. 34492.68 crore during the quarter ended March 2012.

Franklin India Opportunities Fund – (G) is an open ended equity diversified scheme, launched in February 2000. The scheme aims to achieve long term capital appreciation by capitalising on the long term growth opportunities in the Indian economy. The minimum investment amount is Rs. 5000. The unit NAV of the scheme was Rs. 29.45 as on 17 April 2012.


5.First case of conversion of Gold ETF units to physical Gold in 10 gms!

 Mr. Ashok Dhamnaskar, an investor from Mumbai has become India’s First Investor to convert ETF units to physical gold. On Thursday April 12, 2012, Mr. Dhamnaskar redeemed his Motilal Oswal MOSt Shares Gold ETF units to get physical gold.

With Mr. Nitin Rakesh, MD & CEO, Motilal Oswal AMC and his team were present to facilitate the redemption process. Overwhelmed Mr. Dhamnaskar said, “I was looking for the avenue to buy gold at a cheaper price yet with the best of quality for my son’s wedding. But I found it difficult to get both at the same time. I had to pay premium for pure gold or compromise on the gold quality for cheaper price. That’s when my broker invited me to a seminar organized by Motilal Oswal Mutual Fund, where I was introduced to MOSt Gold Shares, which offered quality gold at a better rate than Banks and Jewellers”. Talking about buying MOSt Gold Shares ETF’s units, Mr. Dhamnaskar said, “It was as easy as buying gold from any other available avenue, as I used a smarter way to buy gold!


6.Religare Short-term Plan A & B: Increase in Expense Ratio.

 Religare Mutual Fund has announced to increase the annual scheme recurring expenses of Religare Short-term Plan A & B with effect from May 25, 2012. Overall now, both plans will charge 2.25% annual recurring expenses while presently, Plan A is charging 2% and Plan B is charging 1.75% annual recurring expenses. The major increment will be the hike in investment management & advisory fee from the current 1% to 1.25% in both the plans. Investors have been given an option to exit without paying any exit load between April 25, 2012 to May 24, 2012.



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