AMFI to waive registration fees from first time mutual fund distributors

Industry body Association of Mutual Funds in India (AMFI) today decided to waive registration fees, estimated at Rs 3,000, for first time distributors for a period of five months beginning February 1.

The initiative is aimed at enlarging distribution network and attracting new cadre of distributors or Independent Financial Advisors (IFAs) for selling mutual fund products, AMFI said in a release here.

AMFI has "decided to waive registration fees for all registrations of first time distributors for a period of five months from February 1, 2013 to June 30, 2013."

The objective is to create larger number of 'feet-on-street' to distribute mutual fund products, AMFI Chief Executive H N Sinor said.

In November last year, AMFI had slashed registration fees to Rs 3,000 for three years per distributor from Rs 5,000.

The distributors registering under the category of individuals, including senior citizens and new cadre of distributors, need not pay the registration fees during the five-month period, the release said today.

After two years of successive decline, the mutual fund industry managed to register rise in assets base nearing Rs 8 lakh crore with an increase of about Rs 2 lakh crore in 2012.

As per industry data, the total assets under management (AUM) of all the fund houses put together rose by 30 per cent on strong inflows in fixed income, gold schemes and liquid funds.

Market regulator SEBI last year introduced a new cadre of distributors, who have been allowed to sell units of simple and performing schemes to increase the strength of mutual fund distribution network.

Source: http://www.indianexpress.com/news/amfi-to-waive-registration-fees-from-first-time-mutual-fund-distributors/1060214/0

LIC Nomura Mutual Fund re-launches ULIS with more features

LIC Nomura Mutual Fund has re-launched its open ended Unit-Linked Insurance Scheme (ULIS) today with additional features aiming at Rs 500 crore assets under management (AUM) by the end of FY13, with one lakh new investors.

"ULIS has a good track record since 23 years. With additional features, we expect the fund to have Rs 500 crore AUM, with one lakh new investors," LIC Nomura Mutual Fund CEO Nilesh Sathe told reporters today.

The asset management company has tied up with 14 banks to sell this scheme, he said.

At present, ULIS has Rs 140 crore AUM, he said, adding that in three years, it plans to have Rs 1,000 crore AUM for the scheme.

The scheme's additional features include free accident cover up to Rs 1 lakh, guaranteed maturity bonus of 2.5 per cent to 10 per cent of target amount; no exit load as well as auto cover option, besides low-cost life insurance.

Fund allocation is balanced with 65 to 80 per cent invested in equity and 20 to 35 per cent in debt, he said.

The fund, which has three-year lock-in period, allows partial withdrawal subject to minimum balance requirement and top-up facility.

Investment in ULIS as well as its dividend is tax free.

Source: http://www.indianexpress.com/news/lic-nomura-mutual-fund-relaunches-ulis-with-more-features/1059685

Sebi cancels registration of Fidelity Mutual Fund

Capital market regulator Sebi has cancelled the registration of Fidelity Mutual Fund following its buyout by L&T Finance.

The decision was taken following the acquisition of Fidelity Mutual Fund by L&T Finance and at the request of FIL Fund Management, the Asset Management Company (AMC) of Fidelity Mutual Fund.

Securities and Exchange Board of India (Sebi), through its letter dated January 14, has "cancelled the certificate of registration of Fidelity Mutual Fund and has withdrawn the approval granted to FIL Fund Management to act as the Asset Management Company."

Consequently, Fidelity Mutual Fund, FIL Trustee Company and FIL Fund Management cannot carry out any activity as a Mutual Fund, Trustee Company and asset management company, respectively, with immediate effect.

In November, L&T Finance, a part of diversified group Larsen & Toubro, had completed the acquisition of Fidelity's mutual fund business in India for an undisclosed amount.

L&T Finance is a part of engineering conglomerate L&T Group and Fidelity Mutual Fund is part of the US-based

Fidelity Worldwide Investment.

Source: http://www.indianexpress.com/news/sebi-cancels-registration-of-fidelity-mutual-fund/1060190/