IDBI Mutual Fund garners over Rs 120 crore from 'Gilt Fund'

IDBI Asset Management, the mutual fund subsidiary of IDBI Bank, has garnered over Rs 120 crore through its 'IDBI Gilt Fund', the company said in a release.

"We have received an overwhelming response to our latest offering, IDBI Gilt Fund, from across the country," Managing Director and Chief Executive Officer of IDBI Asset Management Debasish Mallick said.

The Gilt Fund, which opened for subscription on December 5 and closed on December 17, has been designed to provide regular income to investors along with opportunities for capital appreciation through investments in Central and state

government securities, treasury bills and similar other instruments issued by Central and state governments.

The scheme reopens for continuous sale and repurchase from December 27.

IDBI Mutual Fund has an average assets under management of around Rs 5,412 crore by the end of September quarter.

Source: http://www.indianexpress.com/news/idbi-mutual-fund-garners-over-rs-120-crore-from-gilt-fund/1050493/

IDBI Mutual Fund launches gold fund

Asset management company (AMC) IDBI Mutual Fund today launched a gold fund targeted mainly at retail investors and people without demat accounts. 

The scheme opens for subscription from July 25 and closes on August 8. The investment objective is to generate returns that correspond closely to the returns generated by IDBI Gold Exchange Traded Fund (IDBI Gold ETF) that was launched last October.

Under the scheme, investors would not hold gold physically and the asset management company (AMC) would keep the equivalent amount of imported gold in its vault with Bank of Nova Scotia.

"Gold is a great investment asset. We see investment in gold as a component of prudent diversification to hedge against uncertainties, inflation and for long-term benefits," IDBI AMC Managing Director and Chief Executive Debasish Mallick told reporters here.

On the amount AMC expects to garner from the new scheme, Mallick said, "We are expecting at least Rs 100 crore during the NFO period."

The fund house further said investment in gold provides better inflation-adjusted returns.

"In the last 10 years, gold has beaten the headline inflation 8 out of 10 times. It has outperformed and given positive inflation adjusted returns," he said.

The product will be available across most of IDBI Bank's branches, Federal Bank, Indian Overseas Bank and Corporation Bank, he added.

Source: http://www.indianexpress.com/news/idbi-mutual-fund-launches-gold-fund/978825/

Reliance Retirement Fund files offer document with Seb

An open ended notified tax savings cum pension scheme

Reliance Mutual Fund has filed offer document with Sebi to launch Reliance Retirement Fund, an open end notified tax savings cum pension scheme. The scheme will get tax benefit (upto Rs. 1 Lakh) as a Notified Pension Fund U/S 80C of Income Tax Act 1961. The New Fund Offer price is Rs. 10 per unit.

Investment objective: The investment objective of the scheme is to provide capital appreciation and consistent income to the investors which will be in line with their retirement goals by investing in a mix of securities comprising of equity, equity related instruments and fixed income securities.

Options: The scheme will have 2 plans: (Both the plans will have separate portfolio)

1. Wealth Creation Plan

2. Income Generation Plan

The above plans will have Growth Plan & Dividend Plans respectively as specified below:

• Growth Plan: Growth Option & Bonus Option

• Dividend Plan: Dividend Payout Option & Dividend Reinvestment Option

Lock - in Period: 5 years in the scheme from the date of allotment of units. (Note: 5 years lock in period is in respect to the scheme and not in respect to Wealth Creation Plan or Income Generation Plan. Auto transfer from Wealth Creation Plan to Income Generation Plan is applicable during 5 year lock - in period).

Asset Allocation: Wealth Creation Plan shall invest 65% to 100% of assets in equities and equity related securities with medium to high risk profile. On the other side it would allocate upto 35% of assets in debt and money market securities with low to medium risk profile.

Income Generation Plan shall invest 5% to 30% of assets in equities and equity related securities with medium to high risk profile. On the other side it would allocate upto 70% to 95% of assets in debt and money market securities with low to medium risk profile.

Benchmark: Wealth Creation Plan : BSE 100

Income Generation Plan : Crisil MIP Blended Index

Loads:

Entry load: Not applicable

Exit load:

1% if redeemed/switched out (other than Auto Transfer) before attainment of 60 years of age.

Nil in case of Auto Transfer from Wealth Creation Plan to Income Generation Plan.

Nil in case of Auto SWP/Redemption/Switch out (other than Auto Transfer) on or after attainment of 60 years of age or after completion of 5 year lock in period, whichever is later.

Minimum Application Amount:

For Lumpsum: Rs.5, 000 & in multiples of Re.500 thereafter

For SIP:i. Monthly Frequency: Rs. 500 & in multiples of Re. 500 thereafter

ii. Quarterly Frequency: Rs. 1,500 & in multiples of Re. 500 thereafter

iii. Annual Frequency: Rs. 5,000 & in multiples of Re. 500 thereafter

Minimum Target Amount: Rs. Twenty crore

Fund Manager: The scheme will be managed by Sanjay Parekh, Anju Chajjer and Jahnvee Shah (fund Manager - Overseas Investments).

Source: http://www.indiainfoline.com/Markets/News/Reliance-Retirement-Fund-files-offer-document-with-Sebi/4389968737

Axis AMC floats fund focused on large caps

Axis Asset Management Company (AMC), the mutual fund arm of Axis Bank, has launched a new fund offer, Axis Focused 25 Fund, an open-ended equity fund. The fund will invest in large-cap companies selected from the top 200 companies.

“The fund will have a concentrated focus on select 25 best ideas at any point of time, with a majority of companies being drawn from the top 200 Indian companies (based on market capitalisation),” Axis AMC said in a release.

Portfolio will be biased to larger companies with up to 90 per cent in top 200 companies by market cap.

The fund is expected to outperform market in adverse situations based on the fact that quality companies tend to maintain their growth trajectory despite downturns.

Data from 2003 to 2011 performance analysis of the companies show the top 10 companies within the BSE 100 Index delivered an average return on equity of 37 per cent, compared with 26 per cent for the BSE 100 index, the fund house quoted a Bloomberg analysis.

The share prices too, for these companies have witnessed significant outperformance.

The share price of these top 10 companies appreciated by as much as 30 per cent, compared with a negative-15.8 per cent for the bottom 10 BSE 100 companies, Axis AMC added.

“Axis AMC will rely strongly on its internal research capabilities to identify these companies,” the fund house said adding, “Axis Asset Management will ensure that the portfolio though restricted to a maximum of 25 companies, is well-diversified across sectors and is not illiquid.”

Rajiv Anand, MD and CEO, Axis AMC said, “The key feature of the fund is the fact that we will attempt to nurture these companies over their business cycle without being unduly concerned by short-term market volatility. It is thus ideal for patient and long-term equity investors with an investment time horizon of more than five years.”

Chandresh Nigam, head investments, Axis AMC said, “We believe sustainable business performance drives stock returns. Picking business cycles therefore is important.”

The new fund offer closes for subscription on June 25.

Investors can either invest in the new fund offer through monthly instalments of Rs 1,000, or a one-time investment of Rs 5,000.

Source: http://wrd.mydigitalfc.com/mutual-funds/axis-amc-floats-fund-focused-large-caps-916

IIFL launches 'dividend' mutual fund

IIFL Mutual Fund, a subsidiary of the diversified financial services provider India Infoline, today launched an open-ended fund called IIFL Dividend Opportunities Index Fund.

The objective of the scheme is to provide returns to investors by investing in 50 high-dividend yielding stocks, IIFL AMC chief executive Gopinath Natarajan told reporters.

The minimum subscription amount for the scheme, which opens tomorrow and closes on June 19, is Rs 5,000. The fund will also offer monthly and quarterly investment plans.

The fund house will be investing in the stocks across 25 diversified sectors, comprising large and mid-cap stocks, he said.

"The scheme is good for those who aim to reap benefits from high-dividend yields, cash-flow generating companies, which share their profits by way of dividends. The scheme is not only suited for investors looking at tactical allocation but also to those looking at potential long-term gains," Natarajan said.

The fund offers two options -- growth and dividend – as well as a speciality facility of systematic investment plan.

"There is no entry load, while an exit load of one per cent will be charged for exit before one year from the date of allotment. The units of the scheme are available in the demat mode also," he added.

Source: http://www.indianexpress.com/news/iifl-launches-dividend-mutual-fund/958197/