--Principal Pnb MF files another offer document
--SEBI forms new norms for MF ad warnings
--No rapid fire MF risk warnings: SEBI
--Sebi to simplify MFs` new fund offer documents
--Quantum MF raises Rs 3.4 crore through Gold Fund
--ING MF declares dividend under FMP Series
--SBI MF files an offer document
--Birla AMC appoints new CEO
Sundaram BNP Paribas MF files another offer document
Sundaram BNP Paribas Mutual Fund files another offer document to launch Fixed Maturity Plan- 90 days - Series 4. The scheme will have two-investment options viz. growth and dividend options. The dividend option will have reinvestment facility under it. The objective of this scheme would be to achieve income with minimum volatility by investing in a portfolio of fixed-income securities. The minimum application amount under retail plan is Rs 5000 and in multiple of Re 1 thereafter. The amount of investment under institutional plan is Rs 1 crore and in multiple of Re 1 thereafter.
Principal Pnb MF files another offer document
Principal Pnb Mutual Fund files another offer document to launch Fixed Maturity Plan- 91 days - Series 15. The scheme will have two-investment options viz. growth and dividend options. The dividend option under both plans will have the facility of payout and sweep. The primary investment objective of the scheme is to build an income-oriented portfolio and provide returns along with regular liquidity to investors. The minimum application amount will be Rs. 1000.
SEBI forms new norms for MF ad warnings
Mumbai: The Securities and Exchange Board of India has put a speed breaker on the rapidity with which mutual fund advertisements deliver their standard warnings. Mutual fund investments are subject to market risks, read the offer document carefully before infusing must now be displayed and read out for at least five seconds in television and radio ads, said SEBI, in a circular. Currently, the warning could take up as little as 10 per cent of the time in a 20-second ad. The rapid-fire manner in which the standard warning is recited in the audio visual and audio media renders it unintelligible to the viewer/listener. The new norms have been decided in consultation with Associations of Mutual Funds in India.
No rapid fire MF risk warnings: SEBI
Market regulator SEBI has ruled that the standard warning message while selling mutual funds should be made intelligible to investors. It has made it mandatory that the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements, or alternately should be read in an easily understandable manner.
Although most fund officials say that any move which makes an investor more aware of the risk factors is desirable, they point out insurance investments do not carry the same level of warnings.
According to them, insurance companies selling Unit Linked Insurance Plans, should also be asked to state that they are subject to similar market risks since Ulips essentially invest in the stock markets too.
Unless IRDA comes up with a similar set of rules for insurance houses, the problem of no level playing field still remains, they reckon. In recent years, MFs have been losing the battle to insurance companies selling Ulips, as the latter fetch more commissions for the people selling them.
In a release issued on 27 February 2008, SEBI has objected to the rapid fire manner in which Mutual Fund investments are subject to market risks, read the offer document carefully before investing is recited in the audio visual and audio media.
It said that the recital should be made in a manner that makes the motive behind warning more cleared to the listener or the reader. AP Kurien, chairman of AMFI, a trade body of all mutual fund houses in the country, said that the regulator had come out with the move after consultation with the body.
Sebi to simplify MFs` new fund offer documents
The Securities and Exchange Board of India (Sebi) is planning to simplify the offer document (OD) of mutual funds new fund offerings (NFOs) in a move to make it investment decisions easier.
Sebi has reportedly held two rounds of discussions with the Association of Mutual Funds in India (AMFI), which is the body for mutual funds in the country.
The proposal is likely to be referred to the Sebi board shortly.
The new rule will reduce the costs and time involved in preparing and filing offer documents with Sebi.
The move coincides with Sebi circular, asking mutual funds to spend at least five seconds to warn investors on the risks involved in mutual fund investments.
Sebi recently proposed fast-track clearances for fixed maturity plans (FMPs), investing only in short-term debt instruments.
About 70% of the mutual fund offer documents are filed for closed-ended schemes such as FMPs and interval schemes involving several series.
Although mutual fund houses make disclosures according to mandatory key information memorandum (KIM), the market players still think that a large portion of the offer documents is repetitive.
The Indian mutual fund industry has 33 players managing assets worth Rs 5,48,063.51 crore.
Several players are awaiting the Sebis approval to enter the mutual funds business in India.
The proposed rule may not be applicable for new funds as investors have limited knowledge about their businesses.
Sebi also intends to have a portal containing vital information about companies.
This will not only ease the filing process, but also do away with redundant information. It is an important move by the Sebi.
Quantum MF raises Rs 3.4 crore through Gold Fund
Quantum Mutual Fund has collected Rs 3.4 crore through its Quantum Gold Fund during its initial offer period from 24 January 2008 to 8 February 2008.
Quantum Gold Fund is an open-ended fund, which will be listed on the exchange in the form of an Exchange Traded Fund (ETF) tracking domestic prices of gold through investments in physical Gold.
The investment objective of the scheme is to generate returns that are in line with the performance of gold and gold related instruments, subject to tracking errors. QGF is designed to provide returns that, before expenses, closely correspond to the returns provided by Gold.
The scheme will invest 90%-100% in physical gold. The scheme will invest 0-10% in money market instruments, short-term corporate debt securities, CBLO, and units of debt and liquid schemes of mutual funds. As the scheme invests 90% to 100% of the net assets into gold, the scheme will, by and large, be passively managed fund. However, the scheme may invest in gold related securities including derivatives.
ING MF declares dividend under FMP Series
ING India Mutual Fund has announced 4 March 2008 as the record date for declaration of dividend under dividend option of ING Fixed Maturity Plan - Series XXXVII.
The AMC plans to distribute entire appreciation in the NAV of dividend option from the date of allotment to 4 March 2008 as dividend. The NAV under institutional plan is Rs 10.2066 and under retail plan is Rs 10.2055 as on 26 February 2008.
ING Fixed Maturity Plan - Series XXXVII is a close -ended scheme offering an investment objective to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in so as to minimise the impact of price fluctuation of such securities on the value of the at maturity.
SBI MF files an offer document
Name of Fund: Magnum Sector Funds Umbrella Banking and Financial Services Fund
Scheme: It is an open-ended equity scheme.
Objective: The investment objective of the scheme is to provide investors with opportunities for long term growth in capital through an active management of investments in a diversified basket of equity and equity related instruments of banking and financial services companies in equity and equity related instruments including derivatives of banking and financial services companies and in debt and money market instruments.
Investment options: The scheme offers two plans: Retail Plan and Institutional Plan. Both plans have growth and dividend options. Under the dividend option, facility for reinvestment and payout of dividend is available.
Asset Allocation: The scheme will invest 65-100% of its portfolio in equity and equity related instruments including derivatives of the banking and financial services companies. It may invest 0-35% in debt and money market instruments. The investment in debt and money market instruments includes 20% investment in securitized debt.
Exposure to derivatives instruments in the scheme can be up to a maximum of 50% of the equity portfolio of the scheme. Exposure to derivative instruments will be for hedging and portfolio balancing purposes in addition to exploring opportunities for returns enhancement.
Face Value: Rs 10.
Entry Load: Under retail plan, the scheme may charge an entry load of 2.25% for the investment below Rs 5 crore. For the investment above Rs 5 crore it may not levy entry load. The scheme under institutional plan may not charge an entry load.
Exit Load: Under retail plan, the scheme may charge an exit load of 1% for exit within 6 months from the date of reopening of the scheme. For exit after 6 months, the scheme may not impose any exit load. There will be no exit load charged under institutional plan.
Minimum Investment Amount: The minimum investment amount under retail plan is Rs. 5000 and in multiples of Re.1 thereafter. Under institutional plan, the minimum investment amount is Rs 5 crore and in multiples of Re.1 thereafter.
Minimum target amount: Rs 25 crore
Benchmark index: BSE Bankex.
Fund Manager: Mr. Sudhanshu Asthana
Birla AMC appoints new CEO
Birla Sun Life Asset Management Company has appointed Mr Anil Kumar as the Chief Executive Officer. Prior to this; Mr. Kumar has worked with Citibank in London, where he was the Global Head-NRI.
Mr Kumar has taken over his new responsibilities effective from 25 February 2008.
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