Shinsei MF to be renamed as Daiwa MF

Shinsei Investment, Rakesh Jhunjhunwala and Freedom Financial Services (P), the current shareholders of Shinsei Asset Management (India) (P) (the AMC), the investment manager of Shinsei Mutual Fund, have entered into an agreement with Daiwa Securities Group (DSGI) and Daiwa Asset Management Co. (DAM), the parent company of DAM.

Pursuant to the agreement, DAM, the asset management subsidiary of the Daiwa Securities Group, will acquire 91% of the equity share capital of the AMC and the balance 9% of the AMC will be acquired by DSGI. As a result thereof, there will be a change in the controlling interest of the AMC and DAM will become the sponsor of Shinsei Mutual Fund.

Pursuant to the proposed transaction the name the fund house will be changed from Shinsei Mutual Fund to Daiwa Mutual Fund. The name of the schemes will also be changed as Daiwa Liquid Fund, Daiwa Treasury Advantage Fund and Daiwa Industry Leaders Fund.

In case an investor does not wish to continue to hold units in view of the said changes, they will have the option to exit the said scheme at the prevailing NAV, without any exit load. The said exit option can be availed between 8 December 2010 to 7 January 2011.

Source: http://www.myiris.com/newsCentre/storyShow.php?fileR=20101203142952707&dir=2010%2F12%2F03&source=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Myiris+(myiris.com+-+India's+Leading+Financial+Portal)

Q&A: Sunil Singhania, Head-Equities, Reliance Mutual Fund

Don't get jittery about volatility

Sunil Singhania, head-equities, Reliance Mutual Fund, tells Neha Pandey that the markets will stabilise soon and continue to rise. Edited excerpts:

How long do you see the correction lasting? Where do you see the markets in the next six months to one year?
We continue to believe the economy and equity markets will maintain their long-term growth phase. Corrections of 10-15 per cent can happen in any market. Our advice to investors would be to have a long-term investment horizon, and not get shaken by near-term news-based market volatility. Short-term jitters can never impact the inevitable long-term growth in the markets. We feel the markets will stabilise soon and resume their measured uptick.

In the current market, which sectors are you betting on?
We continue to be bullish on a wide range of sectors. Among the domestic themes, we favour of banks, capital spending and infrastructure-related sectors, including cement. Among the growth-oriented sectors, our view continues to be bullish on pharmaceuticals. We are also positive on information technology and will use the metal pack as a trading play based on price movements.

If a retail investor has a lump sum, should he/she invest in the current market?
The best strategy for a retail investor is to invest in mutual funds via systematic investment plans. Wealth creation for those with regular incomes could be through regular, disciplined investing. For a big investor, who has under-invested in equities, the correction can be used to correct his position and park a lump sum.

Would you advise retail investors to opt for midcap and smallcap stocks? Are there any multi-baggers there?
A diverse economy and a strong entrepreneurial mindset make our markets the best place for bottoms-up stock-picking. Although midcap and smallcap stocks tend to be volatile in the near term, investors with a long-investment horizon can look at investing in good midcap-oriented equity funds. Mutual funds are the best, safe way to invest in equity for retail investors.

What is your outlook on precious metals? Should one accumulate gold, maybe via exchange-traded funds (ETFs)?
We continue to be positive on gold, as it lends good diversification in the overall portfolio of an investor. Gold ETFs make for a very liquid investment compared with physical gold.

Is investing in IPOs and FPOs advisable for retail investors? Any upcoming one that you are betting on?
Good quality IPOs and FPOs have proven to be good return generators. Thus, investors should definitely invest in public offerings, provided the quality of the company is good and the IPO price is attractive, and not overvalued.

Source: http://www.business-standard.com/india/news/qa-sunil-singhania-head-equities-reliance-mutual-fund/416985/

Foreign MFs outpace domestic players in building assets

Assets rise 13% in first half, as local funds show a fall in AAUMs.

At a time the assets of domestic mutual funds are falling, those of foreign fund houses with presence in India, directly or through joint ventures, are growing remarkably.

Industry experts and chief executive officers attribute this to better products and the increasing familiarity of foreign funds with investors.

Statistics from the Association of Mutual Funds in India (Amfi) say foreign players’ assets rose 13 per cent in the first half of the current financial year. Domestic fund houses either registered negative or poor growth.

For instance, in the private sector, Indian-owned fund houses saw a dip of 7.5 per cent in average assets under management (AAUMs) to Rs 2,17,899 crore as on September 30 as against Rs 2,35,585 crore at the beginning of the year. Foreign players in the private sector saw a jump of 14.5 per cent in AAUMs at Rs 57,577 crore. These include AIG Global Asset, Fortis Investment, Franklin Templeton and Mirae Assets, among others.

So, too, in joint ventures (JVs) predominantly owned by foreign players, whose assets have risen by close to 10 per cent. The assets of funds where an Indian partner is dominant have grown a mere 1.4 per cent.

“Foreign-owned fund houses are aggressively marketing their products and investors are getting familiar with them. Moreover, their products are equally good performers,” said Dhruva Chatterji, senior research analyst at Morningstar India, an independent investment research firm.

“If the products are structurally well-positioned and perform well, I see no problem why people should not invest with us,” said the chief executive officer (CEO) of a foreign-owned fund house. He said foreign players faced intense competition, as domestic counterparts and banks-sponsored asset management companies had the advantage of a strong distribution network.

Bank-sponsored fund houses SBI MF and Canara Robeco put together grew assets by 6.8 per cent.

In agreement with this, another CEO of a fund house in a JV with a foreign partner said, “In metros, the brand equity of foreign-owned houses has strengthened. The competition now is to penetrate Tier-I & II cities, which offer huge potential.”

In the first half, the average assets dipped 4.6 per cent to Rs 7,13,290 crore from Rs 7,47,525 crore. Of the 41 fund houses in the country, 14 are fully or majority owned by foreign players.

Source: http://www.business-standard.com/india/news/foreign-mfs-outpace-domestic-players-in-building-assets/416955/

Kotak Mutual Fund revises key features under its scheme

Kotak Mutual Fund has decided to revise key features under its scheme - Kotak 30. The scheme will be renamed as Kotak 50. The change will be effective from 01st January, 2011. The revised investment objective is to generate capital appreciation from a portfolio of predominantly equity and equity related securities. The portfolio will generally comprise of equity and equity related instruments of around 50 companies which may go upto 59 companies at any point of time. Investors, who do not agree to the revision, have an option to redeem or switch their units between 02nd December 2010 to 31st December 2010, without paying any exit load.

Source: http://www.mutualfundsindia.com/news_viwe.asp?news_headline=Kotak+Mutual+Fund+revises+key+features+under+its+scheme+@MF037