Latest Indian Mutual Fund News | 13-July-2012


1.HDFC MF Introduces HDFC FMP 372D July 2012 (1).


HDFC Mutual Fund has launched the New Fund Offer (NFO) of HDFC FMP 372D July 2012 (1), a close ended income scheme. The NFO opens for subscription on July 11, 2012 and closes on July 16, 2012. No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs. 5000.





2.DFDA proposes tax incentives for revival of MF industry.


DFDA, the influential North based IFA group which is a pioneer in practice management support for its Group members, has circulated its 10 point wish-list of tax incentives which can help revive the MF industry. The ten points are: 
A) The proposed Rajiv Gandhi equity scheme should only be available through mutual funds to help the investor benefit from professional management and to avoid unpleasant experience. Further, the investment amount under Rajiv Gandhi equity scheme should be increased to Rs. One lakh. 
B) Mutual funds should be allowed to run retirement/pension funds .a new section should be introduced in the income tax act giving extra tax incentive for long term saving in retirement/pension fund which should be locked for 15/20 yrs or till the actual retirement which ever is earlier to promote investments in all sectors of the economy, product could be designed to make investments in government securities, corporate bonds and equities. 
C) The erstwhile sections 54ea and section 54eb (capital gains) should be re- introduced, where investment in mutual funds with mandatory lock-ins was available in all mutual fund schemes for saving long term capital gains tax. It will improve transparency and productivity as it will help channelize money into productive assets rather than getting directed into real estate.
D) Equity linked saving scheme should be extended under 'direct tax code' and the tax- saver should be given an option to invest in balanced option as well as debt option, depending on his risk profile. 
E) The indexation benefit should also be available under 'direct tax code' to all investments exceeding 365 days as currently available. 
F) A uniform direct tax code policy with consistent directions is need of the hour, arbitrary changes every financial year through budget and supplementary taxes makes investment climate unfriendly for investors .tax rates are government prerogative but a policy must define the direction so that investors and businesses can focus on their core areas rather than ancillary issues of uncertainties of tax modalities g. Sec 80 TTA of interest exemption of Rs. 10000 p.a should be extended to gains received in mutual funds. 
H) In the absence of adequate social security sip for long term 15/ 20 yrs should be given an additional rebate of atleast Rs. 50000 p.a. similar to deduction u/s 80 c. 
I) Pan or UID needs to be the only requirement for investing across any financial product, distributors must be empowered to undertake the KYC process, the way its for sebi registered brokers. 
J) The A.I.R. limit of investment of Rs 2 lakhs for information and scrutiny should be done away with or the limit should be increased to Rs. 30 lakhs.




3.FinMin, MFs meeting today to work out revitalizing strategy.


The Finance Ministry is set to finalize on Thursday an action plan for revitalizing the mutual fund industry. In this regard, there will be second meeting with industry players and SEBI officials.





1.SEBI, FMC to implement common KYC norms.


Commodity markets regulator FMC (Forward Markets Commission) has proposed to join SEBI (Securities and Exchange Board of India) for common know your customer (KYC) norms to simplify the customer identification process in commodity and equity markets, according to media reports. Once formalized, investors wanting to participate in equities, mutual funds and commodity futures will need to get only one KYC done, which will be acceptable to all intermediaries and both regulators.




2.MF industry pays commission of Rs. 18.6 bn to distributors in FY12.


Over 13 mutual funds out of the top 20 mutual fund distributors have seen an increase in their commission revenues in the financial year 2011-12, according to the AMFI (Association of Mutual Funds in India) data. The top 20 distributors saw an increase of Rs. 1.48 billion in commission revenues in FY12 to Rs. 11.74 billion compared to Rs. 10.26 billion in FY11. The data said, the mutual fund industry has paid a total of Rs. 18.6 billion in commissions to 269 large distributors in FY12. The share of these 20 large mutual fund distributors has increased from 57% in FY11 to 63% in FY12 in terms of revenues.





3.JPMorgan MF Launches Two Close-Ended Income Schemes.


JPMorgan Mutual Fund has launched two new funds named as JPMorgan India Income Fund – Series 301 and JPMorgan India Income Fund – Series 501, close-ended income schemes. The New Fund Offer (NFO) price for the schemes is Rs. 10 per unit. The new issue opening and closing dates 12 July 2012 and 24 July 2012 respectively.


Latest Indian Mutual Fund News | 13-July-2012
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