IDFC MF Introduces New Plans

IDFC Mutual Fund has announced the introduction of new plans, ‘Plan C' under IDFC Super Saver Income Fund - Medium Term (MT) and ‘Plan D' under IDFC Super Saver Income Fund – Investment Plan (IP). The plans are to be introduced with effect from 10 February 2010. The features of the plans are as follows:

Plan C & Plan D under the respective schemes offers growth, dividend & dividend sweep options. The plans introduction price is Rs 10 per unit and at applicable NAV thereafter. Minimum application amount is Rs 5000 & in multiples of Re 1 thereafter. Entry load charge will be nil.

Exit load charge for IDFC Super Saver Income Fund-MT – ‘Plan C' will be 0.50% of NAV on investors who purchase / switch and seek to redeem / switch out such investment within 182 days from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option /SWP or switch between options within the plan will not be levied an exit load.

Exit load charge for IDFC Super Saver Income Fund-IP – ‘Plan D' will be 1% of NAV on investors who purchase / switch and seek to redeem / switch out such investment within 365 days from the date of effecting such purchase / switch in. Investors opting for PEP / Dividend reinvestment option /SWP or switch between options within the plan will not be levied an exit load.

Source:http://www.adityabirlamoney.com/Default.htm

Total assets of MF increased by 14.07% in January 2010

The mutual fund (MF) industry registered 14.07% increase in total asset under management (AUM) to Rs 7.59 lakh crore as on 31 January 2010 from Rs 6.65 lakh crore as on 31 December 2009. The huge inflow on account of income funds aided the increase in total asset during the month of January 2010.

Average Assets under management (AAUM) of MF fell by 4.14% for the second consecutive month to Rs 7.62 lakh crore in January 2010 compared with Rs 7.94 lakh crore in December 2009, according to the data released by the Association of Mutual Funds in India (AMFI). Banks staying away from investing into mutual funds has been the primary reason for erosion of the AAUM.

Association of Mutual Funds in India (AMFI) has released monthly data of the industry for January 2010. The industry has launched 7 new schemes, out of which, four schemes belong to income fund and three under equity funds category in month of January 2010. The new funds launched have mobilized around Rs 1947 crore during the month under review.

It was only income funds that witnessed a huge rise in total assets in January 2010 compared to fall in December 2009. The total assets of income funds registered the highest increase of 30.58% in January 2010. Apart from the income funds, gold ETF and other ETF'S also registered increase in their asset base by 5.40% and 22.41% respectively. While all the other funds such as - liquid funds, equity funds, balanced funds, gilt and ELSS funds registered dip in their asset base during the month under review.

The MF industry recorded the net inflow of Rs 97242 crore in January 2010 against the outflow of Rs 157204 crore in December 2009.

Equity Funds

The total asset of equity funds has declined by 3.76% to 1.68 lakh crore as on 31 January 2010 from 1.75 lakh crore as on 31 December 2009, as equity benchmark indices witnessed fall during the month under review. The Bombay Stock Exchange's Sensex and National Stock Exchange's Nifty fell by 6.34% and 6.13%, respectively, in January 2010.

The fall in asset base took the weightage of equity funds down to 22% in the total assets of the industry as against 26% in December 2009. However equity funds witnessed a net inflow of Rs 980 crore and total redemption of Rs 6857 crore in the month of January 2010.

Income Funds

The Income funds stood in limelight with highest inflow of Rs 1.06 lakh crore in January 2010 compared to outflow of Rs 1.05 crore in December 2009. At the same time the redemption also remained quite heavy at Rs 2.22 lakh crore in January 2010 compared to just Rs 6232 crore in December 2009.

However the total asset of income funds zoomed by 30.58% to 4.71 lakh crore in January 2010 compared to fall of 28.16% to 3.60 lakh crore December 2009. This translated into increase in income funds AUM weightage to 62% compared to 54% in December 2009.

Liquid Funds

Liquid funds also recorded highest outflow for the second consecutive month at Rs 10218 crore in January 2010 as against outflow of Rs 14267 crore in December 2009. Liquid funds also witnessed highest redemption of Rs 5.57 lakh crore as against outflow of Rs 5.53 lakh crore in December 2009. The total asset declined by 10.74% to Rs 71502 crore in January 2010 compared to 20.64% fall in December 2009.

Gilt Funds

AUM of gilt funds fell by 6.87% to Rs 3361 crore in January 2010 from Rs 3609 crore in December 2009. Gilt funds had net outflow of Rs 257 crore and redemption of Rs 454 crore for the month under review.

Other Funds

ELSS-Equity Funds witnessed net inflow of Rs 268 crore but declined by 3.33% in its total assets. Gold ETFs registered net inflow of Rs 112 crore and its total AUM increased by 5.40% to Rs 1425 crore in January 2010. The total AUM of other ETFs also increased by 22.41% in January 2010 while, the Fund of Funds and balanced funds recorded fall of 9.76% and 2.67% respectively in their assets.

Mutual Funds were net sellers of Rs 1311.30 crore in the equity market and net buyer of Rs 31333.50 crore in debt market in the month of January 2010.

Source: http://www.adityabirlamoney.com/Default.htm

Peerless MF biz launched

Peerless General Finance & Investment Company Ltd (PGFI) on Tuesday announced the commencement of its mutual fund business, Peerless Funds Management Company Ltd.(PFMCL), as a wholly-owned subsidiary of PGFI.

The products intended for launch in coming months include liquid and ultra short term funds catering to institutional needs and savings fund for retail customers.

PFMCL, according to Mr S.K. Roy, Managing Director of PGFI, is the first financial services company in eastern India to have received the SEBI approval for setting up its asset management company.

“With a growth rate of over 30 per cent CAGR in the past six years, the mutual fund business in India presents an interesting opportunity and this venture is consistent with our plan to capitalise on the opportunities and emerge as the country's leading financial supermarket,” Mr Roy observed while addressing a news conference here on Tuesday.

Mr A.C. Chakraborti, Chairman of PFMCL, felt that organised mutual fund business being still concentrated in metros, there were considerable opportunities for expanding business in tier-II and III cities and semi-urban markets.

“We're hopeful of meeting the needs of investors in these locations through the company's extensive network of branches, product bouquets and customised services,” he said.


Source: http://www.thehindubusinessline.com/2010/02/10/stories/2010021051481700.htm