Saturday, June 25, 2011

BNP Paribas MF Announces Change in Fund Manager

BNP Paribas Mutual Fund has announced that Mr. Deepak Shaw, the key personnel of the AMC has been designated as Fund Manager - Overseas Securities of BNP Paribas China India Fund with effect from 28 June 2011.

Further Mr. Chirag Mehta shall cease to be the Fund Manager - Overseas Securities of BNP Paribas China India Fund and the key personnel of the AMC with effect from close of business hours of 27 June 2011.

Source: http://www.adityabirlamoney.com/news/486996/10/22,24/Mutual-Funds-Reports/BNP-Paribas-MF-Announces-Change-in-Fund-Manager

Birla Sun Life seeks Sebi nod to merge MF schemes

Birla Sun Life Asset Management Company, investment manager of Birla Sun Life Mutual Fund, has sought approval from the Securities and Exchange Board of India (Sebi) to merge some of its MF schemes.

“We have identified some of our existing schemes for consolidation on the basis of their underlying investment philosophy and objective match,” said A Balasubramanian, chief executive of Birla Sun Life AMC, in an emailed response. “Any consolidation has to have the necessary permission from Sebi, for which we have applied.”

He did not offer details of the schemes identified for merger. Currently, the fund house, a joint venture between the Aditya Birla Group and Canada’s Sun Life Financial Services, manages 49 open-ended MF schemes including 26 equity ones 16 debt schemes, six hybrid and one exchange traded fund.

“Some of our schemes belong to the erstwhile Allianz Mutual Fund, which we took over in 2004. Consolidation of schemes not only reduces their number; it also helps the portfolio manager to stay a lot more focused on the scheme portfolio construction strategy and also eases the selection of schemes from the investors’ perspective,” said Balasubramanian.

He added the investors would not be negatively impacted because of the merger. Fund houses have began amalgamating MF schemes after the stock market regulator expressed displeasure over the large number in the market.

According to industry analysts, at least six fund houses have merged their schemes since January 2010. Earlier this year, ICICI Prudential AMC said it would merge ICICI Prudential Fusion-I, ICICI Prudential Equity Opportunities Fund and ICICI Prudential Fusion-III into ICICI Prudential Dynamic Fund.

“Sebi had said too many schemes that appear identical tend to confuse investors. Merger is a welcome move. It benefits investors, as they will have a lesser number to choose from. It also benefits the fund house, because managing a large number of schemes is not always viable,” said Dipali Ranu, mutual fund analyst with Sharekhan.

Source: http://www.business-standard.com/india/news/birla-sun-life-seeks-sebi-nod-to-merge-mf-schemes/440257/

MFs use spare cash to hunt for mid-caps.

Mutual funds are beginning to bargain-hunt, as smaller stocks are tumbling to new lows. A number of mid-cap and small-cap schemes of MFs, which were sitting on huge cash positions in November 2010, when the Sensex touched an all-time high of 21,000, have begun to deploy this cash in the market.

According to Value Research, a Delhi-based MF research agency, 19 of 21 schemes which took the right call at the peak of the market in November 2010, with 10 per cent or more cash in their portfolio, are now buying.

Reliance Small Cap Fund, which has a corpus of Rs 532 crore, had 55 per cent of this in cash at the end of November 2010. Being a new scheme, the fund remained cautious during the first two months this year. It has since reduced its cash position, to 18 per cent of its portfolio by the end of May. Some of its top positions are ABG Shipyard, FAG Bearings and Take Solutions.

Similarly, ICICI Prudential Dynamic Fund, which had cash of nearly 30 per cent in November, is down to 16 per cent. AIG Infrastructure saw its cash level drop from 25 to 15 per cent.

Other schemes which have seen a drop in cash positions in the past six months include Franklin India, DSP Blackrock Small and Midcap, Quantum Long Term Equity, Reliance Equity and JM Midcap. Axis Midcap Fund, which raised money in February, has also rapidly deployed funds, bringing down cash levels to 32 per cent at the end of May.

In the past six months, while the Sensex lost 15 per cent, the BSE Midcap and BSE Small Cap fell 24.5 per cent and 29.5 per cent, respectively. Some stocks have lost 50 per cent or more. This is creating a number of bargains for fund managers.

“It is very evident. Fund houses have increased exposure in quality mid-cap stocks which were beaten down, irrespective of their fundamentals,” said Gopal Agarwal, head of equities at Mirae Asset Global. “The valuations are good in the mid-cap space and during such a volatile market scenario, people will use the cash available with them to buy more.”

In June, the MF houses were net buyers for Rs 748 crore, adding to the Rs 434 crore they bought in May. This is in sharp contrast to foreign institutional investors, which have been big sellers in the market through the year. “This way, I believe the cash level will deplete completely in these (mid-cap) funds,” Agarwal said.

Source: http://www.business-standard.com/india/news/mfs-use-spare-cash-to-hunt-for-mid-caps/440255/

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)