Investor friendly: Nilesh Shah - ICICI AMC

“If you want to understand the investor pulse, travel by Mumbai’s evening local trains.” That’s a statement that Nilesh Shah, the deputy managing director at ICICI Prudential Mutual Fund, often makes.

But Shah is the kind of man that walks the talk — or in this case rides it: Many recall him actually travelling by a local train when he headed fixed-income funds at Franklin Templeton to hear people’s take on the markets.

Shah is just as involved in issues that impact the MF industry as a whole. During the liquidity squeeze of October 2008, following the collapse of US financial services giant Lehman Brothers, the degree and pace at which investors withdrew money from financial instruments was so staggering, it shoved the domestic MF industry to verge of a collapse.

Shah then took the lead in convincing Reserve Bank of India to lend the industry a helping hand. For the first time on October 14 that year, RBI introduced a Rs 20,000-crore, 14-day credit window for fund houses. Shah's efforts at reasoning with the Securities & Exchange Board of India paid off, too.

Though not an effective stock picker, consistency and steady bets have been Shah’s mantra. This may not have resulted in high-yielding gains for his investors, but their losses too were contained. “I believe in protecting the downside for investors,” he says.

Usually soft-spoken, the 42-year-old fund manager is a much sought-after speaker. Though rarely annoyed at the volley of questions at these functions, on one occasion he asked a member of his audience to shut up. “People have come to hear me and not you,” he had said, snubbing the gentleman.

ICICI’s assets under management have risen to over Rs 70,000 crore in September, from around Rs 15,000 crore when Shah joined the fund house as a chief investment officer in June 2004. ICICI's Discovery, Dynamic and Infrastructure schemes under his watch have delivered higher-than-average returns in the past 3-5 years.

When Shah put in his papers last week, citing “personal reasons”, the industry was curious what he had planned next. His exit comes at a time when MFs are yet again grappling with the regulator on various issues.

Source: http://www.business-standard.com/taketwo/news/investor-friendly/419261/

Market expected to be stock driven in 2011: Lakshmi Iyer

Growth in the domestic equity market is expected to be more stock, rather than sector driven, said Lakshmi Iyer, Head- Fixed Income and Product, at Kotak Mahindra Mutual Fund talking about her expectations from markets in 2011.

The equity market may as such post a largely consistent growth trend, with reduced volatility-bouts, and lesser divergence in the sectoral growth. The returns may consequently reflect the nominal growth in the economy, she added.

The domestic debt market performance would remain a function of liquidity conditions and inflation outlook. The interest rates, which now are largely at pre-2008 crisis level, may remain unchanged initially and subsequently react to events globally as also domestic. Resultantly, Indian bond yields may move sideways for most of the year.

Citing about her favorite sectoral picks for 2011 she said, For various analytical reasons, we believe that Banks with high CASA, Pharma companies that have a wide FDA approval and diversified product portfolio, and Media with a deeper reach, may be the key sectors in the following year. Also, the FMCG and the IT sectors too could look positive in the following year.

Source:http://www.myiris.com/newsCentre/storyShow.php?fileR=20101223162527707&dir=2010/12/23&secID=livenews

L&T Mutual Fund ties up with Central Bank of India

L&T Investment Management Ltd. - Investment managers for L&T Mutual Fund one of the prestigious mutual funds in the country has formalized its tie-up with Central Bank of India, a leading public sector bank, to qualitatively enhance its reach in the category of mutual fund investors across the country.

On the Occasion, Mr. Sanjay Sinha, Chief Executive Officer, L&T Invest Management Ltd. said, “With this tie up, L&T Mutual Funds schemes will be available at all 3600 retail branch locations of Central Bank of India. This partnership will substantially strengthen our distribution network.”

About L&T Mutual Fund
L&T Mutual Fund is one of the premier asset management companies in the country that serves the investment needs of investors through a suite of mutual fund schemes. With proficient investment management practices and an equally competent fund management team, L&T Mutual Fund helps its investors reach their financial goals

L&T Mutual Fund is backed by one of the most trusted and valued brands L&T Finance Ltd., incorporated as Non Banking Finance Company in November 1994. L&T Finance Ltd. has earned the trust of thousands of investors by adapting well to the changing market dynamics and emerging as a profitable venture despite the turbulences in the financial market over the past few years.

L&T Mutual Fund is present in 55 cities through its network of dedicated 58 branches and is continuously increasing its footprints across the country.

About Central Bank of India
Central Bank of India can be truly described as an All India Bank, with its large network in 27 out of 28 States and presence in 4 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3600 branches and 195 extension counters at various centers throughout the length and breadth of the country.

Source: http://www.business-standard.com/india/news/lt-mutual-fund-ties-upcentral-bankindia/419320/

Bharti may exit Bharti-AXA Mutual Fund

Bharti-AXA Mutual Fund is most likely to sell its stake to Bank of India and the deal is to be finalised in the next one month. Earlier, public sector banks like Central Bank and Indian Overseas Bank were reported in the race to buy the stake in the mutual fund house.

According to the market participants, Bharti Enterprises which holds 25% stake in the venture is likely to exit from the mutual fund business. Sandeep Dasgupta, CEO of Bharti AXA investment manager said, “We are looking for a banking partner, but I can't comment whether it will completed within the next month, as there are several processes to go through.” He didn't comment on the share price at which Bharti will exit the business. “You will know it once the deal is done,” he said.

For the last two years, Bharti-AXA MF was looking for a partner to expand its asset management business, but talks were put on hold following financial meltdown of 2009. A senior official close to the development said, “valuations are still being worked-out as Bank of India is planning to buy more than 25% stake in the fund house.”

Source: http://www.indianexpress.com/news/bharti-may-exit-bhartiaxa-mutual-fund/728646/

Sundaram MF declares dividend for Select Thematic Funds Rural India Fund

Sundaram Mutual Fund has approved Dec.24, 2010 as the record date for declaration of dividend under dividend option of Sundaram Select Thematic Funds Rural India Fund.

The face value of per unit is Rs 10.

The quantum of dividend will be 30% (Rs 3 per unit) as on the record date.

The primary investment objective of the scheme is to generate consistent long term returns by investing predominantly in equity / equity related instruments of companies that are focusing on rural India.

Source: http://www.myiris.com/newsCentre/storyShow.php?fileR=20101222155045707&dir=2010/12/22&secID=livenews