Latest Indian Mutual Fund News | 23-Jan-2013


1.Deutsche MF introduces Hybrid Fixed Term Fund – Series 11.

Deutsche Mutual Fund has launched the New Fund Offer (NFO) of DWS Hybrid Fixed Term Fund – Series 11, a close ended income scheme. The NFO opens for subscription on January 22, 2013 and closes on February 4, 2013. No entry load or exit load will be applicable for the scheme. The minimum subscription amount is Rs. 5000.





2.Sebi, Amfi incentives bring back mutual funds distributors.

The mutual fund industry is showing signs of revival. There has been a significant rise in the number of distributors queuing up for renewal of their AMFI registration numbers (ARN). The industry also witnessed more than 700 new registrations in the quarter ended December 2012. While the growth in the markets and thereby a revival in investor sentiment is said to have played a role, the Securities and Exchange Board of India's (SEBI) move in August to make the distribution business more attractive has also had an impact. In August 2012, Sebi allowed mutual funds to charge an additional expense ratio of up to 30 basis points if they bring at least 30 per cent of the total inflow from locations beyond top 15 cities. There is a trend emerging and people are slowly coming back. Over the last few months we have seen money coming through distributors who had registered long back but have done business for us for the first time,� said A Balasubramanian, CEO, Birla Sun Life AMC. AMFI deputy CEO, V Ramesh, said that it is a good trend and seems to be a result of better revenues, growing market and also reduced cost for them as AMFI has reduced the ARN fee for distributors. Beginning November 2012, AMFI had cut the registration fee for individual from Rs 5,000 to Rs 3,000 for three years and also reduced the renewal fee at 50 per cent of the registration fee. The Association of Independent Financial Advisors seem to be a happy lot with the trend of a rise in inflow of new individuals in the business. Ramesh Bhat, president, IFA Galaxy, said that the higher charge of up to 30 basis points as per the new Sebi guideline has resulted into and inflow of new IFA's and distributors to the industry as their income levels have gone up. �While more people are currently joining the business from larger cities, they are also coming in smaller towns as asset management companies have taken initiatives to attract them in smaller towns too,� said Bhat.



3.UTI Mutual Fund declares revision in computation of NAV.

UTI Mutual Fund has declared revision in computation of Net Asset Value (NAV). Accordingly, the second sentence of the sub-para (b) under the clause III.C titled Computation of NAV of the Scheme Information Document (SID) of all the Equity and Balanced Fund Schemes of UTI Mutual Fund stands revised with effect from January 22, 2013. The NAV shall be rounded off up to four decimal places for all the schemes. All other features of the above Schemes shall remain unchanged.



4.SEBI comes out with investment adviser regulations.

Qualification & Certification

� Advisers will be required to hold a professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science. 
� Alternatively, advisers having a graduate in any discipline with experience of at least five years in financial advisory or securities or fund or asset or portfolio management are also qualified. 
� Advisers, their partners and their representatives should have a certification on financial planning or fund or asset or portfolio management or investment advisory services from NISM or from any other organization or institution including Financial Planning Standards Board India (FPSB) or stock exchange provided that such certification is accredited by NISM. 
� Existing advisers and their representatives seeking registration under these regulations will have to obtain certification within two years from the date of commencement of adviser regulations. Advisers whose existing certificates which are due for expiry need to also obtain the above mentioned certification to continue their practice. 
Capital adequacy SEBI has also laid down capital adequacy requirements for corporate and individual distributors. Corporate distributors will require a minimum net worth of Rs 25 lakh while individuals and partnership firms will require to posses tangible assets worth at least Rs 1 lakh. 
After complying with the investment adviser regulations, advisers would need to register with SEBI by paying a non-refundable application fee of Rs. 5000. Individual advisers will have to shell out a registration fee of Rs 10,000 while corporate will have to cough up Rs 1 lakh in addition to the application fee. This certificate will be valid for a period of three years.

News Source – CAFEMUTUAL

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