INDUSTRY & FUND UPDATE
MFs AUM shrink further
Assets Under Management(AUM) by Indian mutual fund houses breached the Rs 6 lakh crore mark in March 2012 on the downside, plunging to Rs5,87,217 crore, while investor folios registered a decline of 7.2 lakh over the September 2011 - March 2012 period, according to data released by the Association of Mutual Funds in India.
According to Crisil Research, mutual funds have lost close to eight lakh folios in the last fiscal. Many retail investors stopped their Systematic Investment Plans (SIPs) and have redeemed their fund investments as the equity market declined over 11 percent last year. The Reserve Bank order restricting bank investments in mutual funds to 10 percent (of their respective net worth) resulted in a 77 percent drop in bank folios, said the report.
HDFC MF introduces FMP 370D May 2012 (3)
HDFC Mutual Fund has announced the New Fund Offer (NFO) HDFC FMP 370D May 2012 (3), a close ended income scheme. The NFO opens for subscription on May 23, 2012 and closes on May 29, 2012. Entry and exit load charge is not applicable for the scheme. The duration of the scheme will be 370 days from the date of allotment. The scheme offers dividend payout and growth option. The scheme will be benchmarked against CRISIL Short Term Bond Fund Index. The minimum application amount is Rs 5000 and in multiple of Rs 10 thereafter. The investment objective of the scheme is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plans.
Reliance MF introduces Reliance Fixed Horizon Fund
Reliance Mutual Fund has launched the New Fund Offer (NFO) of Reliance Fixed Horizon Fund - XXII -Series 8, a close ended income scheme. NFO opens for subscription on May 21, 2012 and closes on May 28, 2012. The investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of Central, State Government securities and other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility.