Apr 3, 2008

Mutual Funds News - 3rd April 2008

Kotak Mahindra MF revises load structure

Kotak Mahindra mutual fund has announced the revision in the load structure for Kotak Flexi Debt scheme. According to the revised load structure, the fund will charge an exit load of 0.10% if the investment is redeemed within 7 days from the date of investment. Presently, the scheme does not ask for any exit load. The scheme will not charge any entry load to the investors. The aforesaid changes will be effective from 1 April 2008.

         

MFs purchasing lifts benchmarks

Despite higher inflation numbers, benchmark indices increased quite sharply on Friday. Market participants said that this was due to across-the-board purchasing by institutions, particularly domestic funds. Since the financial year 2007-08 is nearing, fund managers have used this money to push up the stock prices in order to shore up the net asset values (NAV) of their schemes. Domestic funds have been net buyers to the tune of Rs 729.50 crore on March 28 even as foreign institutional investors remained net sellers of Rs 401.95 crore.

         

Sundaram BNP Paribas MF joins hand with Central Bank

Mumbai: Sundaram BNP Paribas Mutual has joined hands with Central Bank of India to form a strategic distribution alliance. Under the MoU inked by them, Central Bank of India will distribute the entire bouquet of Sundaram BNP Paribas Mutual's schemes across its branches and extension counters. This is a strategic alliance as Central Bank of India with its strong branch network and vast customer base will enhance Sundaram BNP Paribas Mutual's products reach.

         

Franklin Templeton MF files an offer document

Franklin Templeton MF files an offer document Plans to launch Templeton Fixed Horizon Fund-Series VIII. It is a close-ended income scheme. The scheme offers six plans from A to Plan F. The investment objective of the scheme is to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities with a maturity profile generally in line with the fund's duration. Each plan under Templeton Fixed Horizon Fund-Series VIII offers growth option and dividend payout option.

         

Mutual funds continue selling

Mutual funds (MFs) sold shares worth a net Rs 52.10 crore on Thursday, 27 March 2008, compared to their selling of Rs 431 crore on Wednesday, 26 March 2008. MFs' net outflow of Rs 52.10 crore on 27 March 2008 was a result of gross purchases Rs 1238 crore and gross sales Rs 1290.10 crore. The 30-share BSE Sensex fell 71.27 points or 0.44% at 16,015.56 on that day. MFs were net sellers of shares worth Rs 2,225.10 crore in this month, till 27 March 2008.

         

Domestic funds go buying

Massive buying by large domestic mutual funds propelled prices of key benchmark stocks in the final hour of the trading session on 28 March. According to provisional figures on the Bombay Stock Exchange (BSE) website, domestic institutional investors were net buyers to the tune of Rs 729.50 crore.

The Sensex, the BSE's benchmark 30-share index, rose by 2.22%, or 355 points, to close at 16,371. The S&P CNX Nifty, the broader index of the National Stock Exchange (NSE), was up by 2.31%, or 112 points, to end the day at 4,942. Mutual funds were waiting for the markets to stabilise or show some upward movement as they could neither buy daily nor see their NAVs taking a serious hit as stocks plunged by over 5% on a daily basis.

Mutual funds as well as foreign institutions are freely buying into some of the fundamentally strong mid and small-cap stocks. Even though the rally may not be too robust but consolidation will remain strong.

Foreign institutional investors, however, were net sellers of Rs 401 crore in the cash market on 28 March.

         

Max New York Life plans to set up more offices

Max New York Life Insurance Co Ltd, a joint venture between New York Life and Max India Ltd, is planning to augment the number of its offices and agent advisors in the eastern region as part of its latest expansion plan, Mission Everest.

As per Mission Everest, the company plans to open 500 offices by 2011 to boost health and pension schemes. The mission also targets to increase the number of direct agents from the existing 30,000 to 2 lakh by 2011. At present, the eastern region has got 24 offices. Out Of that, three are in West Bengal.

         

Mutual funds on buying spree

Mutual funds (MFs) bought shares worth a net Rs 377.40 crore on Friday, 28 March 2008, compared to their selling of Rs 52.20 crore on Thursday, 27 March 2008. MFs' net inflow of Rs 377.40 crore on 28 March 2008 was a result of gross purchases Rs 982.30 crore and gross sales Rs 604.90 crore. The 30-share BSE Sensex gained 355.73 points or 2.22% at 16,371.29 on that day. MFs were net sellers of shares worth Rs 1847.70 crore in this month, till 28 March 2008.

           

Templeton Quarterly Interval Plan B discontinues growth option

Franklin Templeton Mutual Fund have decided to discontinue the growth option in institutional sub -plan of Templeton Quarterly Interval Plan B, as there are no unit holders under the said option. Templeton Quarterly Interval Plan B is an interval income fund that seeks to generate returns and reduce interest rate volatility, through a portfolio of fixed income securities.

           

Birla Sun Life MF revises load structure

Birla Sun Life Mutual Fund has announced the revision in the exit load structure for Birla Dynamic Bond Fund, an open-ended income scheme. According to the revised load structure, the fund will charge an exit load of 2.00% if the investment is redeemed within 180 days from the date of allotment. Before revision of the load structure, the fund was charging an exit load of 0.20% if the investment is redeemed within 30 days from the date of allotment. There is no change in entry load i.e. the Birla Dynamic Bond Fund will not charge an entry load. The aforesaid changes are to be done with effect from 2 April 2008.

         

Tata MF revises exit load structure for Equity P/E fund

Tata mutual fund has announced the revision in the exit load structure for Tata Equity P/E Fund. According to the revised load structure, the fund will charge an exit load for each investment amount less than Rs 2 crore at 1.00% if the investment is redeemed before 6 months from the date of allotment. It will not levy exit load for each investment amount greater than or equal to Rs 2 crore. Before revision of the load structure, the scheme did not ask for any exit load. There is no change in entry load structure. The aforesaid changes will be effective from 1 April 2008.

         

Kotak MF mops up Rs.285 cr via its FMP

Kotak Mutual Fund has mobilized Rs 285 crores via Kotak Fixed Maturity Plan -13 Months- Series 4 during their initial offer period from 24 March and closed 27 March 2008. It is a close-ended debt scheme. The scheme will mature 13 months after the date of allotment.

The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. For the purpose of achieving the investment objective, the scheme will invest in a portfolio of debt and money market securities normally maturing in line with the maturity profile of the scheme. The fund will invest up to 100% in money market instruments and debt instruments. The scheme provides two plans i.e. retail and institutional plan with a sub-option of growth and dividend payout and dividend reinvestment option. If redemption is done within 1 year from the date of allotment 1.5% an exit load will be charged. And no exit load will be charged for redemption after 1 year.

 

Birla Sun Life MF revises load structure

Birla Sun Life Mutual Fund has announced the revision in the entry load structure of Savings 5 Plan offered under Birla Monthly Income Plan-II, an open-ended income scheme. According to the revised load structure, the fund will charge an entry load of 2.25% for purchases/switch- in of units. Before revision of the load structure, the fund was not asking an entry load. There is no change in exit load i.e. Savings 5 Plan offered under the Birla Monthly Income Plan-II will not charge an entry load. The aforesaid changes are to be done with effect from 3 April 2008.

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