UTI MF provides option to hold units in Demat mode

UTI Mutual Fund has announced that pursuant to Sebi circular dated 19 May 2011 on option to hold units in demat form, in addition to the existing schemes, the facility to receive allotment of mutual fund units in demat account while subscribing to the units issued under the following schemes is being provided, on a prospective basis, with immediate effect.

1. UTI Dynamic Bond Fund

2. UTI Master Index Fund

3. UTI Nifty Index Fund

All the other terms and conditions of the scheme/s will remain unchanged.

Source: http://www.adityabirlamoney.com/news/505213/10/22,24/Mutual-Funds-Reports/UTI-MF-provides-option-to-hold-units-in-Demat-mode

Total AUM of MF Industry Dips by 4.3% in August '11

Total Assets Under Management (AUM) of the mutual fund (MF) industry that climbed up 8.2% in July 2011, dipped by 4.3% (by Rs 31,449 crore) to Rs 6.96 lakh crore in August 2011. Liquid and Income Funds that faced huge inflow of funds during the month of July, witnessed net outflows to a tune of Rs 6925 crore and Rs 10066 crore respectively in August 2011. AUM of Other ETFs fell by 13.8%, Equity Linked Savings Scheme (ELSS) by 7.9% and Equity Funds by 6.9% among others.

There was a net inflow of Rs 1942 crore into Equity Funds, Rs 494 crore into Gold ETF and Rs 210 crore into Balanced Funds. The net outflow from the industry stood at Rs 14,597 crore in August 2011 as against Rs 51,010 crore net inflows during the month of July 2011.

Net inflows into the industry for the Year to Date (YTD) 2012 period stood at Rs 1.09 lakh crore which is higher than net inflows of Rs 71386 crore in the corresponding previous year.

Funds mobilized from 45 newly launched schemes in August 2011 stood at Rs 5,496 crore, out of which Rs 5,490 crore came from 44 close ended income funds. Edelweiss Select Midcap Fund (an open ended equity fund) mobilized Rs 6 crore.

Source: http://www.adityabirlamoney.com/news/505202/10/22,24/Mutual-Funds-Reports/Total-AUM-of-MF-Industry-Dips-by-4-3-in-August-11

Avoid India Realty, Metal Stocks Amid Rising Rates, Peerless Say

Kaushik Dani, a Mumbai-based fund manager at Peerless Mutual Fund, which has 49 billion rupees in assets, comments on the outlook for Indian stocks. Dani spoke in a phone interview.

On market outlook:

“Global concerns are still there, which continue to affect markets. A major concern is the high inflation rate, which is not softening. Credit options are also slowing down. Everyone is eyeing the U.S. jobs data to come out today, to see how markets will go.” 

On interest rates:

“There is a general consensus of a 25-basis point rise in interest rates on Sept. 16. The most important thing to watch out for is the monthly inflation data, which is out before the policy is announced. Inflation is not decreasing month-on-month and if comes on the higher side, it will show things in the economy are not improving.”

The central bank has raised its repurchase rate 11 times since the start of 2010 and last increased it by 50 basis points on July 26 to 8 percent to damp living costs that are rising the fastest among the so-called BRICS nations.

On investment strategy:

“For the past couple of quarters, we have been focusing on non-interest rate sensitive sectors, like consumer goods, health-care and select technology stocks. We also like a few automobile stocks. Investors should avoid high rate-sensitive sectors, where leverage is high, such as realty, metals and power-generation.”

Source: http://www.bloomberg.com/news/2011-09-08/avoid-india-realty-metal-stocks-amid-rising-rates-peerless-say.html