ABN Amro MF launches ABN Amro FTP - Series 11 Plan B

10 Apr 2008 | 12:02

ABN Amro MF launches ABN Amro FTP - Series 11 Plan B

Name of Fund: ABN Amro Fixed Term Plan - Series 11 Plan B

Scheme: It is a close-ended fixed term income scheme. Maturity date of the scheme would be 18 months from the date of allotment of units.

Objective: The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of fixed income securities in line with the duration the scheme.

Fund Opens: 9 April 2008

Fund Closes: 24 April 2008

Face Value: Rs 10 per unit.

Investment Options: The scheme has two plans-regular and institutional plans. The scheme offers growth, dividend option (Calendar Monthly, Calendar Quarterly, Calendar Half Yearly, Calendar Yearly, and Dividend on Maturity Option).

The dividend option offers dividend payout and dividend re-investment facilities. Both the options will be managed with a common portfolio.

Entry Load: The scheme will not charge any entry load.

Exit load: It may charge an exit load of 2% if investor redeems before the date of maturity.

Asset Allocation: The scheme invest 0-100% in money market instruments. It may have investment of 0-100% in debt instruments. Debt instruments may include securitised debt up to 60% of the net assets and exposure in debt derivatives up to maximum permissible under SEBI regulations i.e. 100%. The scheme shall limit its exposure to investment in foreign debt securities up to a maximum of 10% of its net assets. The scheme will not invest in equity and equity related securities.

Minimum Investment Amount: The minimum investment amount under regular plan is Rs 25000 and in multiples of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 25,00,000 and in multiples of Re 1 thereafter. There is no upper limit.

Minimum subscription amount: Rs 1 crore

Benchmark Index: Crisil Short Term Bond Fund Index.

Fund Manager: Mr. Alok Singh for investment in Indian securities and Mr. R. Sivakumar for overseas investments.

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Mutual Funds News 10 April 2008

SBI MF declares dividend

SBI mutual fund has announced the declaration of dividend for SBI Arbitrage Opportunities Fund and Magnum Sector Funds Umbrella-Emerging Business Fund. The record date for dividend for both the schemes will be 28 March 2008. The details of the dividend are as follow:

Name of the Scheme Quantum Of dividend Face Value Per unit NAV as on 18 March 2008 (in Rs.) Per unit (Rs) (%)

SBI Arbitrage 0.60 6.00 10.00 11.3593 Opportunities Fund

Magnum Sector Funds 2.50 25.00 10.00 19.21 Umbrella-Emerging Business Fund

10 Apr 2008 | 10:10

Franklin Templeton MF declares dividend under its fixed horizon series

Franklin Templeton Mutual Fund has announced the declaration of dividend for Templeton Fixed Horizon Fund-Series I-13 Months Plan. The record date is set as 15 April 2008. The fund house has decided to distribute 100% of surplus as on record date on the face value of Rs 10.

Templeton Fixed Horizon Fund-Series I-13 Months Plan was launched in March 2007. It is a close-ended income fund that seeks 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.

10 Apr 2008 | 10:24

Kotak MF declares dividend

Kotak Mutual Fund has announced 15 April 2008 as the record date for declaration of dividend under dividend option of Kotak Fixed Maturity Plan 13 months Series 1. The AMC offers dividend under both retail and institutional plan.

The fund house has decided to distribute 100% of surplus available as on record date. The NAV for the scheme under retail plan was Rs. 10.0847 and that of under institutional plan was Rs 10.0428 as on 8 April 2008.

Kotak Fixed Maturity Plan 13 months Series 1 was launched in March 2007. The scheme is a close-ended debt fund with an investment objective of generating returns through investments in debt and money market instruments with a view to significantly reduces the interest rate risk.

10 Apr 2008 | 10:42

Standard Chartered Arbitrage Fund declares dividend

Standard Chartered Mutual Fund has announced a dividend of 0.8% i.e. Rs 0.08 per unit on the face value of Rs 10 in its open-ended equity scheme Standard Chartered Arbitrage Fund Plan A and Plan B.

The objective of the scheme is to generate capital appreciation and income by predominately investing in arbitrage opportunities in the cash and derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.

The record date for the same has been fixed as 15 April 2008. The NAV under Plan A of the scheme was Rs 11.1962 and that of under Plan B was Rs 11.2690 as on 8 April 2008.

10 Apr 2008 | 16:55

Mutual funds continue buying

Mutual funds (MFs) bought shares worth a net Rs 214.40 crore on Wednesday, 9 April 2008, compared to their buying of Rs 89.80 crore on Tuesday, 8 April 2008.

MFs net inflow of Rs 214.40 crore on 9 April 2008 was a result of gross purchases of Rs 644.30 crore and gross sales Rs 429.90 crore. The 30-share BSE Sensex jumped 202.89 points or 1.3% at 15,790.51 on that day.

MFs were net sellers of shares worth Rs 379.70 crore in this month, till 8 April 2008.

10 Apr 2008 | 17:15

UTI MF expands distribution network

UTI Mutual Fund (UTI MF) announces the opening of a new UTI Financial Centre (UFC) at Patiala. The new UFC will be located on the Ground Floor, at SCO No.43, New Leela Bhawan, Patiala (Phone no.0175-2300341).

The new UFC was inaugurated on 10 April 2008. On the occasion, Mr. D Mohanty, Country Head-Retail, UTI Asset Management Company Limited (UTI AMC) said, As the first mutual fund provider in India, UTI has played a pioneering role in the development and growth of Indias capital market. We continue our efforts to reach the benefits of investing in mutual funds to our investors by opening UFCs across the length and breadth of the country.

UFC at Pataila will provide easy access to investors in the areas of Patiala, Fatehgarh, Sangrur, Kaithal and Mansa.

UTI Mutual Fund reaches clients through a number of distribution channels, including retail distribution consisting of regional offices, UTI Financial Centres, satellite offices, district representatives and collection centres, and independent financial advisors. Other distribution channels consist of institutions, private and foreign banks, PSU banks and post offices and corporate distribution houses.

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DSP ML MF extends NFO period under FTS 48

10 Apr 2008 | 10:17

DSP ML MF extends NFO period under FTS 48

DSP Merrill Lynch mutual fund has extended the new fund-offering (NFO) period of DSP Merrill Lynch Fixed Term Fund Series 48 from 7 April to 15 April 2008. The issue was opened for subscription on 24 March 2008.

DSP Merrill Lynch Fixed Term Fund Series 48 is close-ended debt fund with the duration of 12 months. The NFO price for the fund is Rs 10 per unit. The minimum investment amount under regular plan is Rs. 5,000 and in multiple of Re 1 thereafter. The minimum investment amount under institutional plan is Rs. 1 crore and in multiple of Re 1 thereafter.

The objective of the fund is to generate regular income by investing in fixed income securities and money market instruments, usually maturing in line with the time profile of the fund. The fund will invest in domestic debt instruments including government securities and money market instruments and securitised debt.

The fund management team will endeavor to meet the investment objective while maintaining a balance between safety and return on investments. Under normal market conditions, the scheme will be managed so as to maintain a rupee weighted average portfolio maturity of the scheme approximately equal to its maturity.

The investors will have the choice of two plans viz. regular plan and institutional plan. Each plan offers sub-option of growth and dividend. The dividend option offers sub option of dividend payout.

There will no entry load charged for the scheme due to its close-ended structure. The scheme charges an exit load of 2.00% if the investment is redeemed any time from the date of allotment but before maturity date.

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Mutual funds go chasing debt funds

10 Apr 2008 | 16:15

Mutual funds go chasing debt funds

Mutual funds have begun chasing Government securities and holding off equity purchases anticipating further corrections.

As per the data from the Securities Exchange Board of India, funds have made net purchases of close to Rs 12660 crore since the beginning of April 2008 (till 9 April 2008). For the same period, funds have made net sales of Rs 379.7 crore of equities.

Most of the debt purchases were short-term Government securities. The preference was mostly for short-term securities, especially 91-day Treasury bills. Funds picked up shorter term securities, including T-bills both from the secondary and primary markets. Funds are treated as non-competitive bidders in the RBIs weekly T-bill auctions.

MF participation in the T-bill auctions, have resulted in pushing down yields or driving up prices. At last weeks auctions, the non-competitive bidders amounted to Rs 4,500 crore, the entire amount of which was accepted by the RBI at a yield to maturity of 6.94 per cent. But at Wednesdays auctions, the high notified amount of Rs 6,000 crore in the 91-day T-bill auction, pushed up yields slightly. The auction comprised Rs 3,000 crore of normal issue of T-bills and another Rs 3,000 crore market stabilisation scheme (MSS) securities component.

Non-competitive bid component though remained on the high side, as in the case of last week. Non-competitive bids amounted to Rs 2,422.12, which kept the weighted average yield at 7.06 per cent.

State Governments were also in the fray for picking up short term treasury bills. States have switched to T-bills instead of maintaining them as cash balances with the RBI. State Government deposits with the RBI were just Rs 41 crore, according to the weekly statistical supplement.

The preference for the 91-day T-bills was largely on account of the high liquidity. This was in addition to the yields. Funds preference for 91-day T-bills was also driven by banks reluctance to pick up bulk deposits from funds at high yields for short-terms. Banks are flush with deposits and credit growth has remained low. Consequently, few banks were interested in picking up bulk deposits at high costs, ahead of the RBIs lean season credit policy. Instead, bankers were insisting that funds lock in bulk deposits in instruments like certificates of deposits (CDs) for a minimum period of one year. CDs though are treated as less liquid instruments.

Besides, the preference for T-bills was also driven by anticipation that short- term yields were likely to soften further in view of the liquidity overhang and the lean season, when credit offtake is normally low.

Moreover, many of the funds anticipate that the equity markets were likely to see a further correction in the coming weeks as corporate results begin trickling in. Liquidating the T-bills at that point of time was expected to generate treasury profits for the funds.

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LIC MF launches a new FMP

10 Apr 2008 | 13:10

LIC MF launches a new FMP

Name of Fund: LIC Mutual Fund Fixed Maturity Plan Series 40

Scheme: It is a close-ended income scheme. It will mature after 3 months.

Objective: The scheme aims to minimize interest rate risk by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the scheme.

Asset Allocation: The fund would invest up to 100% in debt instruments having residual maturity of 3 months. It can also invest up to 100% in money market instruments. Investment in debt instruments includes securitised debt up to 100%.

Fund Opens: 7 April 2008

Fund Closes: 11 April 2008

Face Value: Rs. 10

Investment Options: The scheme provides dividend and growth option. Under dividend option investors can choose either dividend reinvestment or dividend payout.

Minimum Investment Amount: The minimum investment is of Rs.10, 000 and in multiple of Rs. 1000 thereafter.

Benchmark Index: C Fund ~ LX

Fund manager: Mr Ashish Kumar

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LIC MF launches another new FMP

LIC MF launches another new FMP

Name of Fund: LIC Mutual Fund Fixed Maturity Plan Series 36

Scheme: It is a close-ended income scheme.

Plans: It will mature after 14 months, which is called 14 months plan.

Objective: The scheme aims to minimize interest rate risk by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the scheme.

Asset Allocation: Under 14 months plan the fund would invest up to 100% in debt instruments having residual maturity of 14 months. It can also invest up to 100% in money market instruments. Investment in debt instruments includes securitised debt up to 100%. The total exposure in the derivative will not be more than 50% of the net asset of the scheme.

Fund Opens: 15 April 2008

Fund Closes: 21 April 2008

Face Value: Rs. 10

Investment Options: The scheme provides dividend and growth option. Under dividend option investors can choose either dividend reinvestment or dividend payout.

Minimum Investment Amount: The minimum investment is of Rs.10,000 and in multiple of Rs. 1000 thereafter.

Fund manager: Mr Ashish Kumar

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