Mr. Venugopal M. ceases to be the Fund Manager for the equity portfolio of the above mentioned schemes with effect from 1 April 2011.
Source: http://www.adityabirlamoney.com/news/467629/10/22,24/Mutual-Funds-Reports/Tata-MF-Announces-Change-in-Key-Personnel
Mirae Asset Global Investments (India) Pvt. Ltd. today announced that its flagship fund, Mirae Asset India Opportunities Fund, has completed 3 years of track record. This open ended equity oriented scheme seeks to invest in stocks across market caps (large mid and small cap) and sectors without any bias.
Commenting on the occasion, Mr. Arindam Ghosh, Chief Executive Officer of Mirae Asset Global Investments (India) Pvt. Ltd, said “We are truly encouraged that our flagship fund has attained a significant milestone with the completion of 3 years track record. The fund has been a consistent outperformer in the diversified equity category backed by our distinct investment philosophy and rigorous research oriented approach. We are confident that investors will see deep value in our fund proposition and make this scheme a part of their core portfolio.”
Fund Performance
Since its inception the fund has managed to consistently outperform its benchmark (BSE 200) across time periods.
Since inception returns based on NAV of Rs.10/- Inception date (deemed to be date of allotment):04.04.2008. Data based on NAV of Rs. 16.87 (Regular plan – Growth option) as on 4th April 2011 # Returns are computed as “Compounded Annualized Growth Returns” (CAGR). The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Last two year returns are higher largely due to sharp market recovery. The past performance may not necessarily be an indication of future results and may not necessarily provide basis for comparison with other investments.
About Mirae Asset
Mirae Asset Global Investments (India) Pvt. Ltd. is a wholly-owned subsidiary of Mirae Asset Global Investments Group.
In less than a decade, Mirae Asset Global Investments Group has become one of the world’s largest investors in emerging market equities managing total assets of over USD 49 billion## (approx Rs. 2,25,400 crores) as on March 2011.
Headquartered in South Korea, Mirae Asset Global Investments also has investment management operations in Hong Kong, United Kingdom, India, Vietnam, USA, and Brazil. Apart from Asset management, Mirae Asset Financial Group has business interest in Life Insurance, Securities and Investment & Venture Capital.
## Source: Mirae Asset Global Investments Group
Source: http://www.business-standard.com/india/news/mirae-asset-india-opportunities-fundconsistent-performer-in-its-3-yrstrack-record/431022/
Diversified Indian equity (stock) mutual funds lagged the benchmark Sensex in March due to higher allocation to cash and exposure to mid- and small-sized companies.
Such funds posted an average return of 7.67 percent in the month, lower than the 9.1 percent gains the Sensex registered, data from global fund tracker Lipper showed.
* Diversified stx funds' cash levels at highest since July 2009
* Higher cash, mid- & small-cap exposure acts as deterrent
* Banking funds shine, post 10.5 percent average return
Funds with higher cash exposure in the end of February probably missed out partially on the rally in markets in March and thus underperformed during the month, said Dhruva Raj Chatterji, senior research analyst at Morningstar India.
Diversified equity funds had 7.82 percent of their assets allocated to cash as of end-February, their highest level since July 2009, according to Morningstar India data.
Our data shows that the bottom ten performing diversified equity funds in March had an average cash allocation of close to 15 percent, Chatterji added.
Exposure to mid- and small-cap stocks, which accounted for more than a third of such funds' assets as of end-February, also acted as a deterrent as such companies underperformed their larger peers in March.
The BSE Mid-cap index gained 7.8 percent, while the index rose 4.6 percent during the month.
Exposure to the capital goods sector, one of managers' top bets in India which accounts for nearly a quarter of such funds assets, was unable to boost unit values as the sectoral index gained 6.7 percent and lagged the broader market.
However, banking funds remained star performers of the month, recording an average return of 10.5 percent, Lipper data showed.
The BSE Banking index rose 12.3 percent in March, on hopes that the Indian economy would continue to grow at a fast pace, and in turn boost demand for loans. It's (the banking sector) the backbone of everything, said T P Raman, Managing Director at Sundaram Mutual Fund. With the infrastructure story gaining pace, the banks will have an increasing role to play.
Indian fixed income funds that invest in government debt returned an average 0.62 percent, as the yield on benchmark 10-year bond fell three basis points in March.
Source: http://www.financialexpress.com/news/sensex-beats-equity-mutual-funds/771861/0
Dividend yield mutual funds, which invest in high dividend paying stocks and companies with better cash flows, have managed to tide over the market volatility and have delivered good returns in the last fiscal.
All dividend yield funds have come out on top and even the worst performer in the category has beaten the average equity mutual fund (MF) by 4% in the past year (till March 31), data showed. In all, five funds from the category have made it to the top-30 list during the period generating 12.1% to 16.8% returns. The sensex and Nifty gained 9.6% and 10% in fiscal 2011.
"Dividend yield funds tend to generally restrict losses in the event of a market downturn or when markets are volatile," said Dhruva Raj Chatterji, senior research analyst, Morningstar India. These funds usually invest in companies and stocks with higher dividend yields or better cash flows making them a defensive bet in volatile markets, he said. For instance, dividend yield MFs declined 49% during the bear market of 2008 while diversified equity funds and sensex fell 56% and 53% respectively. "These funds tackle market volatility well. Their risk adjusted returns are also much superior," said Mahesh Patil of Birla Sun Life MF.
Even in the recent correction (between November 5 and February 10) dividend yield MFs dropped by an average 17.3% while diversified equity funds fell by 19.5%, data compiled by Morningstar showed. Dividend yield funds have higher allocation to energy, banks, especially PSU banks, consumer goods including FMCG and auto, which turned out to be defensive plays, observers said. "Risk-averse investors can consider this option as they act as a cushion when markets fall." owever, these funds would not outperform other equity MF categories in a rapidly rising market, experts said. The average returns from dividend yield MFs just about match sensex and is much lower than mid-cap funds. "They tend to underperform when markets are in a momentum phase. Markets look at only growth stocks as (chances of) capital appreciation is much more," Patil said.
Many dividend yield funds now have higher exposure to mid and small-cap stocks and have also topped the charts within the mid & small cap category in the past year, Chatterji said. But some observers said that this could prove risky at least in the short-term as small and mid-cap funds have been among the worst performers in the past few months.
Officials insisted that mid-cap stocks offer better dividend yielding opportunities. "Larger companies don't give high dividend yields," said an official. Though the assets under management of these funds have risen over the years, they constitute less than 3% of the overall assets managed by equity funds
Source: http://timesofindia.indiatimes.com/business/india-business/Dividend-yield-funds-shine-in-volatile-market/articleshow/7870764.cms
Managing debt funds is not as glamorous a job as working with equity mutual funds, but it is an important job nevertheless, especially when it comes to protecting the principal investment of investors. Moreover, most debt funds are rated for credit quality by an external rating agency.
Debt funds ensure tax-free returns and lower the tax outgo when compared to other fixed income instruments like fixed deposits etc. They are low-risk when compared to equity as most of them invest only in the highest credit-rated debt paper. Debt funds can be broadly classified in two types, long-term and short-term funds.
In debt markets and debt funds, the risk increases with a corresponding increase in maturity. The longer the maturity of either the security or fund, the greater the risk of valuation loss, as longer maturity securities lose more in value when interest rates rise. In such a situation how does an investor make a distinction between long-term and short-term funds and how does one invest?
In debt funds, investors can make good returns if they can time the movement of interest rates properly. Investors then can make sizeable capital appreciation along with current income. In case investors are looking for current income and principal protection, then short term funds offer the least risk. But then how does one make a choice between short- and long term funds? Investors need to ask three questions before making a decision to invest: What is the time horizon; what is my risk appetite; and what is my investment objective?
The time horizon:
If the investor has a short-term time horizon, then a short-term bond fund or a money market fund (liquid fund) would be ideal, as the capital would be protected and the investor can enjoy current income without being bothered with the vagaries of the daily fluctuations of the bond market. If an investor has a longer time horizon of a year and more, with a higher risk appetite to ride out the vagaries of the bond market over a longer time period , then a long-term fund like an income fund or a gilt fund would be ideal.
Risk appetite:
If you have a conservative risk appetite and abjure excessive risks, seek capital protection and steady income, then a short-term fund would be suitable. Funds under this category would be money market funds, ultra short-term and short-term bond funds which invest in short maturity corporate bonds. On the other hand, an investor who seeks long term capital growth through the strategic movement in interest rates and bond yields should aggressively invest in long-term bond and gilt funds.
Investment objective:
What is the core purpose for which an investor seeks to invest in either long-term or short-term funds. What is the investment objective? Is the investor seeking principal protection before taking a view on markets? Or the investor wants aggressive growth? Answering these questions will determine the path the investor will take while choosing long- or short-term debt funds. So, in conclusion, the decision to invest either in short-term or longterm depends on the various factors listed above. Investors would do themselves a great service if they list out their preferences and objectives and then make an informed decision before investing their hard-earned money.
Source: http://economictimes.indiatimes.com/personal-finance/mutual-funds/analysis/how-to-choose-between-a-long-and-short-term-debt-fund/articleshow/7871026.cms
Systematic investment plans (SIPs) have become the white knight for the battered mutual fund industry, reports CNBC-TV18's Vidhi Godiawala and Mitra Joshi.
2011 has begun on a strong note for the mutual fund industry. Experts say January saw inflows of Rs 8,000 crore against last year's monthly average of Rs 4,000 crore. And February added a cool Rs 7,000 crore to the kitty. And SIPs, they say, have played a significant role in this increase in inflows.
A Balasubramaniam, CEO, Birla Sun Life Mutual Fund said, “We add about 25,000 to 30,000 new SIPs. There is an upward trend, even the 17% of our assets come from SIPs but a true indication that how sustainable is the retail assets come in equity mutual funds.”
There are over 35 lakh folios in SIPs alone. and nearly 40 lakh revolving transactions take place in SIPs every month. This means SIPs make up almost 20 percent of the total equity assets of a fund house.
Ajit Menon, Executive VP and Head – Sales, DSP BlackRock AMC says, “Last year at this time we were doing 7,000-8,000 new rSIP registrations a month. Now, this is 20,000 a month. The story is the same for the rest of the industry.”
Here's some more trivia: 90% of the SIP money is directed at pure equity, 6% at hybrid plans, and 4 percent into pure debt.
Industry watchers say there are three reasons for this surge in SIPs. SIPs have been offering strong returns even during volatile times.Two. SIPs cater to even those investors who do not have a large pile of cash lying around with ULIPs taking a beating, distributors are pushing SIPs as the next big investment opportunity.
Source: http://www.moneycontrol.com/news/mutual-funds/sipswhite-knight-for-battered-mf-industry-_533577.html
The fall has been attributed due the decline in the equity market during the month of January and February 2011. On the other hand there had been some redemption from the debt schemes by the corporate and banks to meet their financial year end commitments during the month of March. However, the weak equity markets resulted investors to buy equity funds at cheap NAV, leading inflows into equity funds. The tight liquidity condition pushed the short term terms, which was utilized by the mutual fund industry to come out with more fixed maturity plans and high inflows were witnessed from this segment in the last couple of months.
Among the top five fund houses based on AAUM, Reliance and HDFC Mutual Fund faced marginal decline, while ICICI Prudential, UTI and Birla Sun Life Mutual Fund witnessed rise.
Reliance Mutual Fund, the largest fund house in India, saw a decline of Rs 489.60 crore or by 0.48% to Rs 1.01 lakh crore. HDFC Mutual Fund - the second largest fund saw a fall of Rs 1600.85 crore or by 1.82% to Rs 86282.24 crore.
Average assets of ICICI Prudential Mutual Fund surged by Rs 7625.23 crore (by 11.58%) to Rs 73466.11 crore, Birla Sun Life Mutual Fund surged by Rs 6006.73 crore (10.41%) to Rs 63696.20 crore and UTI Mutual Fund climbed by Rs 1801.59 crore (2.76%) to Rs 67188.83 crore.
Fund houses such as Peerless, IDBI and Axis Mutual Fund witnessed highest surge in AAUM by 82.26%, 71.80% and 65.60% respectively.
Source: http://www.adityabirlamoney.com/news/467045/10/22,24/Mutual-Funds-Reports/AAUM-OF-MF-Declines-by-2-86-in-March-2011-
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