1.Mergers of mutual fund schemes is in vogue.
Mutual funds are embracing the practice of merging one mutual fund scheme into another. Sundaram Mutual Fund has announced merger of Sundaram India Leadership Fund into Sundaram Growth Fund. Another such move has come from public sector player – SBI Mutual Fund. SBI One India Fund will be merged into SBI Magnum Equity Fund. Value Research, a mutual fund tracking entity has assigned four star rating to SBI Magnum Equity Fund and has not rated SBI One India Fund. Sundaram India Leadership Fund is a four star rated fund whereas Sundaram Growth Fund is a three star rated fund. Experts are expecting some more such instances in near future, as mutual funds consolidate their product portfolios. "Whatever be the reason, investors have to decide if they want to exit on case to case basis. Investors may choose to redeem through the exit window provided without any exit load within one month before the merger takes place," says Dhruva Raj Chatterji, senior research analyst, Morningstar India. If their investments are less than one year old, the sales proceeds are subject to short term capital gains tax, which is at 15%.
News Source – ECONOMIC TIMES.
HDFC Mutual Fund said it has revised the exit load structure under HDFC Index Fund – SENSEX Plan, Nifty Plan and SENSEX Plus Plan with effective from 13 July 2012. Under the new exit load structure, an exit load of 1 per cent will be charged if units are redeemed / switched out within 30 days from the date of allotment. However, no exit load will be applicable if units are redeemed / switched – out after 30 days from the date of allotment. Earlier, entry and exit load were not applicable under the schemes.
News Source – SHAREKHAN
Peerless Mutual Fund has declared dividend under the monthly dividend option of Peerless Short Term Fund (an open ended debt scheme). The record date for dividend was July 10, 2012. The gross dividend was Rs 0.0900 per unit for monthly dividend option as on the record date. Dividend is being declared on the face value of Rs 10 per unit. The ex – dividend NAV of Peerless Short Term Fund monthly dividend option as on July 10, 2012, is Rs 10.8056, after considering the dividend payout and statutory levies, if any.
News Source – MYIRIS.
Shares of Financial Technologies India and MCX today shot up about 9.5 per cent, after capital market regulator Sebi granted permission to their entity MCX-SX to operate as a full-fledged stock exchange. FTIL shares surged 9.49 per cent to touch a high of Rs 824.90 on the BSE. Similarly, shares of MCX soared 7.7 per cent to Rs 1,246.20. FTIL and MCX are the promoters of MCX Stock Exchange (MCX-SX). With the approval, MCX-SX would be able to offer additional asset classes such as equity and equity F&O (Futures and Options), interest rate futures and wholesale.
News Source – FINANCIAL EXPRESS.
In the last meeting chaired by Economic Affairs Secretary R Gopalan, MF stakeholders had suggested passing of service tax to investors, allowing Rajiv Gandhi Equity Savings Scheme (RGESS) to be routed through mutual funds, allowing continuation of tax benefits in ELSS, increase in total expense ratio, among other measures to the ministry. Dr Thomas Mathew, Joint Secretary (CM), Department of Economic Affairs is likely to be present at tomorrow's meeting. The meetings in quick succession of MF stakeholders with the finance ministry and the repeated announcements by the government have raised hopes of announcements of immediate measures.
News Source – CAFEMUTUAL.
Indiabulls Mutual Fund has announced to revise the exit load structure under Indiabulls Ultra Short Term Fund, an open ended debt scheme. Accordingly, no exit load will be charged under the scheme. The investment objective of the scheme is to provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities. The revised exit load structure will be effective from 11th July 2012.
News Source – MUTUALFUNDSINDIA.
JPMorgan Mutual Fund has announced the introduction of Bonus option and Annual Dividend option under the Retail Plan and Super Institutional Plan of JPMorgan India Liquid Fund, JPMorgan India Treasury Fund and Retail & Institutional Plan of JPMorgan India Active Bond Fund, with effect from 23rd July 2012.
News Source – MUTUALFUNDSINDIA.
MERGER OF SCHEMES
Principal Mutual Fund has approved the merger of Principal Services Industries Fund with Principal Growth Fund. The merger will be effective from 10 August 2012. The Notice period of this exit option shall commence from 12 July 2012 and conclude on 10 August 2012.
News Source – INDIAINFOLINE.