Mutual Fund News
It's Hobson's choice for UTI
'The pricing policy for US-64, as it approaches deadline for going NAV-based, will be crucial for its survival.'
Single investor funds can destabilise unitholders
'Some funds have very large single ticket investors who can destabilise the fund if they exit. We bring you a list of funds thriving on single ticket investors.'
Buybacks come to funds' rescue
'The spree of open offers and buybacks unleashed by India Inc has brought a glimmer of hope for harried fund managers.'
Rolling settlement and worried funds
'With rolling settlement likely to hamper liquidity - at least in the short-term - fund managers are hiking investments in more liquid stocks.'
Back to basics for equity funds
'The growing realisation that diversification is the best, if not the only, way to reduce risk is visible today with leading equity funds now diversifying their portfolios.'
It's a sick family of MIPs at UTI
'Only a year away from redemption, UTI Monthly Income Plans are now below par. While UTI is confident that it will honour its promised returns, only efforts on a war footing can resurrect the beleaguered schemes.'
Bond funds in orbit
'With successive interest rate cuts in a short period, bond funds have posted gala returns since the beginning of the current calendar.'
Technology funds breathe easy again
'Just when it seemed that ICE stocks have been written off, they have made a strong comeback. You just never know when the tide will turn here.'
'The current slump in markets should be viewed as a buying opportunity'
'Our strategy would be to buy into quality stocks and stay invested. Once the fog rises, markets are sure to recognise the long-term growth story of the tech sector,' says R Sukumar, fund manager, Kothari Pioneer Infotech.'
Have mutual funds passed the test?
'The true test of a diversified equity mutual fund is its ability to outperform the benchmark index. How many funds have beaten the Sensex?'
Children benefit funds to hit market
'After bombarding the market with technology funds, monthly income plans and fixed maturity plans, mutual funds are now gearing up to offer investors a slew of children benefit funds.'
Sleepless nights for fund managers as Infosys falls
'Infosys is the mainstay of as many as 130 funds, including monthly income plans and balanced funds, with a cumulative investment of Rs 29 billion on February 28, 2001.'
Some funds take shelter in cash
'Courtesy the high cash exposures, investors in Tata IT, Birla IT and Chola Freedom Technology are smiling amidst a widespread gloom.'
Tech funds' NAVs decline as stocks plummet
'The tech rout is complete as the strongest bastion of the Indian IT sector Infosys succumbed to a slowing global economy and marauding bears.'
Bond funds face redemption
'Bond funds have seen assets under management shrink by nearly Rs 17 billion in March with total corpus dropping 12 per cent to Rs 123 billion.'
Tech funds face marginal redemption
'The signs of trouble are evident for the family of technology funds, which have come under redemption pressure last month. Though outflows were not sizeable, it is an ominous indicator of things to come.'
Fund managers unfazed by RBI move
'Asset management companies are undeterred by RBI's proposed move for a time-bound phasing out of non-banking entities from the call market.'
UTI's favourite stocks
'Nine stocks account for 51 per cent of the Rs 72 billion total assets under the 29 equity funds as on February 28, 2001.'
UTI equity funds over-diversified
'While most mutual funds have lost heavily in the meltdown due to concentrated portfolios, Unit Trust of India's equity funds are a picture of stark contrast with rampant and unhealthy diversification.'
UTI funds lose Rs 7.92 bn in ICE carnage
'UTI's 29 open and close-ended funds have seen an erosion of Rs 7.92 billion since the Budget.'
US-64 prunes tech exposure; RIL, RPL top holdings
'Unit Trust of India's flagship, US-64 has pruned its technology exposure under 10 per cent and increased its stake in the two Reliance companies by 6.32 per cent.'
Equity funds in the red
'The over 700-point carnage in the Sensex has dragged equity funds to their nadir.'
Tech funds collapse as tech stocks seek new bottoms
'A falling Nasdaq has triggered a melee in domestic technology counters and routed the net asset values of technology funds.'
Gilt funds decline despite rate cut
'Most gilt funds ended last week on a negative note despite a 50 basis point cut in bank rate and cash reserve ratio.'
UTI mistimes equity investments
'First, US-64 went tech-savvy at a time when technology stocks had already run up sharply, and now UTI has messed up investments in its "PSU" fund, Mastergrowth '93.'
Equity funds on a selling spree
'With a 400-point rise in the Sensex since the beginning of 2001, equity funds have been booking profits and churning portfolios.'
Bonanza time for petro fund investors
'Buoyed by talks of divestment in public sector oil companies and sooner-than-expected dismantling of administered price mechanism, the two petro funds of JM Basic and UTI Petro have posted an average gain of 20 per cent last month.'
Will MF dividends continue to be tax-free?
'The fund industry hopes that tax breaks on dividends will continue as they are good incentives for equity investments.'
Great returns from bond funds
'Riding high on the stability induced by India Millennium Deposits and the unexpected fat rate cut by the US Fed, returns are flowing from the barrel of debt funds.'
Equity funds pruning exposure to Infosys
'Fund managers are reducing their weightage in the tech blue chip in their portfolios.'
A dual benefit tax-saving fund
'Templeton Mutual's forthcoming tax-saving scheme is the first such fund that combines the benefit of a passive index fund with tax deductions.'
Unit Trust of India does well in year 2000
'Apart from the sterling performance by some of the new generation sectoral funds, the mutual fund giant has seen investors flock to its flagship, US-64.'
MIPs learn the hard way
'Having burnt their fingers even with a marginal allocation to equities, monthly income plans are consciously staying away from the stock markets.'
The rise and fall of tech funds
'With a slew of negative news for the sector in the last fortnight, technology funds end year 2000 at new lows despite sitting on cash.'
Bank mutual funds go down the drain
'The six public sector bank-sponsored mutual funds have seen their assets under management dwindle to less than Rs 37 billion from Rs 80.39 billion in January.'
Domestic MFs going global: A double-edged weapon
'While there are advantages in investing globally, these are not without pitfalls like country risk and currency risk which the funds will have to tackle.'
Craze for serial plans
'If cash funds were launched to veer around the lock-in in money market mutual funds, serial plans have propped up to guard against interest rate gyrations.'
Fall of the mighty
'It has been a year of stark contrast where yesterday's winners are today's vanquished. From triple-digit returns in 1999 to notable
losses in 2000, last year's best diversified equity funds have become this year's mediocre performers.'
New norms for debt fund NAV from Dec 1
'Don't be surprised if the net asset value of your bond fund shows a sharp variation tomorrow.'
Herd mentality in fund IPOs
'The last one-year has seen asset management companies bombard investors with fund IPOs of the same hue on three different occasions.'
Ethical funds: The new kid on the block
'Ethical funds cater to the need of a population segment with personal ethical codes, which are not in line with normal investment practices.'
Y2K mutual fund IPOs fare badly
'The current year kicked off with a bang for mutual fund IPOs with investments pouring but is likely to end with a whimper.'
Fund companies eye dot-com kitty
'In a bid to spruce up assets under management, fund houses have been chasing dot-coms that receive oodles of cash from venture capitalists.'
Absence of sops reduce mutual fund inflows
'The withdrawal of sections 54EA and EB in the last Union Budget, which came into effect from September 30, 2000, is beginning to pinch the fund industry.'
Mobilisation back in the black but can it match 1999?
'The fund industry has only accumulated a net of Rs 61.67 billion till October, which gives a year-end figure of Rs 105.70 billion on a rough estimate and thus, could be lower by as much as 44 per cent on a Y-o-Y basis.'
Cyclical funds back in action
'After lying in morass for months together, cyclical funds and funds with a significant exposure to old economy stocks have sprung back to life.'
UTI's cost of dividend to rise
'The 22 per cent dividend distribution tax on assured return schemes is proving to be an albatross for Unit Trust of India.'
UTI continues to be a conservative investor
'Despite a sharp spurt in assets under management in its aggressive and non-assured sectoral series, Unit Trust of India continues to be a haven for the conservative investor.'
Morgan Stanley Growth Fund reduces tech exposure
'Morgan Stanley Growth Fund has diluted its ICE holdings from 53 per cent of its corpus in March 2000 to 33 per cent in September.'
Time to enter debt funds?
'SBI's India Millennium Deposit issue is expected to bring stability to the debt market.'
UTI to launch exchange-traded fund
'An exchange-traded fund is a basket of securities that is traded, like individual stocks, on an exchange.'
Pharma funds attract investors
'Despite a discouraging performance by three pharma funds since their launch in 1999, fresh investments have continued to pour in, largely driven by the long-term potential for the sector.'
Unit Trust of India: Working harder
'UTI is no longer a patient buy-and-hold investor, but is at its aggressive best, actively churning the portfolios of schemes just short of being a day trader.'
The new order at UTI
'The bad news is that UTI's old equity funds continue to bleed. The good news is that its new generation funds with their high returns are attracting fresh investors in droves.'
Technology funds suffer
'The seven technology funds, launched earlier this year, are now down an average 42.4 per cent, with a couple of funds shedding more than 50 per cent in a matter of 7-8 months!'
Mutual funds assets take a beating
'Thanks to the meltdown in the equity markets, the mutual fund industry's assets under management have fallen below the Rs 1000-billion mark for the first time in this calendar year.'
More trouble for UTI in Rajlakshmi schemes?
'Given that interest rates have been heading southwards in the long-term, it will not come as a surprise if another girl child is disappointed in the future.'
Tata Mutual to launch index fund
'Tata Index Based and Derivatives Fund will invest in the 30 Sensex stocks and will be actively managed.'
Two UTI funds declare dividend
'Despite a choppy market and massively eroded net asset values, Unit Trust of India is showering dividend on investors.'
New investors buy US-64
'Two years after US-64 was rocked by poor performance and negative reserves, investors are beginning to repose faith in India's largest mutual fund scheme.'
JM Basic Fund to go open-ended
'JM Mutual Fund's decision to convert JM Basic into an open-end fund could drastically reduce the AMC's asset base.'
Kothari Pioneer Monthly Income Plan receives lukewarm response
'Blame it on the chaotic market as Kothari Pioneer's Monthly Income Plan has failed to garner an impressive mobilisation in its initial offer, which closed for subscription on September 28, 2000.'
Close-end funds: The Indian investor suffers
'Even as UTI's harried officials brace for support against an investor in offshore fund India Growth Fund, millions of investors in UTI's domestic equity funds may well raise the same question.'
Balanced funds still unbalanced!
'Despite falling flat in lure of the ICE candy earlier this year, balanced funds continue to be technology heavy.'
'If funds with a higher allocation to papers rated AA or below survived the sudden hike in interest rates in July, debt schemes with high exposure to gilts have emerged on top in August.'
Low turnover ratios in Kothari Pioneer funds
'Believers of the theory that lofty returns are achieved with active buy and sell strategy could be in for a surprise with the revelation of turnover ratios in Kothari Pioneer's equity funds.'
Exodus from debt funds
'Investors have pulled out Rs 7.75 billion from debt funds in August 2000.'
Dividends dry from equity funds in a bearish market
'Blame it on the bearish markets as dividend payouts from equity funds witness a dry spell this monsoon season.'
Cash funds beat long-term debt funds
'For the six months ended August 31, 2000, cash funds have posted a return of 3.62 per cent while medium-term debt funds are a poor second with an average gain of 2.82 per cent.'
Kotak AMC to launch media, old economy funds
'Kotak Mahindra Asset Management Company plans to unveil media and old economy schemes shortly to expand its range of sectoral funds.'
ANZ Grindlays Super Saver Income Fund guards assets
'ANZ Grindlays Super Saver Income Fund has been able to keep its net asset value above par in a turbulent debt market with the fund going open-ended on August 22.'
Investors sitting on sidelines hop on to the tech train
'Despite being badly mauled in a sustained bearish phase, technology funds have witnessed net inflows in the last few months.'
Monthly income plans' NAVs near par levels
'Investors in three open-end monthly income plans could be in for a disappointment this month as net asset values cling on to just above par levels.'
Cash is King!
'Amidst a turbulent sail in the debt markets, a large cash component has emerged as a reliable anchor for debt and gilt funds.'
Tech funds' decline accelerates
'The net asset values of all the tech funds have hit a new low as technology stocks continue to fall on the bourses.'
Canstar units to be repurchased at Rs 40
'Canbank Mutual Fund's decision is likely to cause heartburn among those investors who had opted for repurchase at Rs 23 per unit in 1997.'
Where do we go?
'The last fortnight has seen simultaneous erosion in both equity and debt markets. Mutual funds are trying to figure out how to sell funds to investors.'
NAVs of long-term gilt and medium-term debt funds crash
'After the gradual inching up of interest rates that was chiseling away returns from debt and gilt funds, RBI's interest rate hike has seen NAVs fall further.'
When the going gets tough, UTI gets going!
'It is time for the rest of the fund industry to sit up and take notice as the new generation equity from Unit Trust of India deliver impressive returns amidst turbulent market conditions.'
After tech funds, AMCs woo investors with MIPs
'After technology funds, fund houses are now showering monthly income plans on investors.'
Kothari Pioneer goes to Nasdaq
'Kothari Pioneer's Internet Opportunities Fund has become the first Indian fund to invest in the American Depository shares of an Indian company.'
Mutuals lose out to company FDs in June
'Sharp erosion in equity funds' NAVs and volatility in debt funds have led to a slowdown in investments in mutual funds from investors, who have moved to company fixed deposits.'
Pharma funds leave a bitter taste
'Pharma funds have left a bitter taste for their investors in the first half of the current calendar year with an average loss of 32 per cent as on June 30, 2000.'
Sour experience for US-64 dividend strippers
'US-64 had seen short-term investors pour an estimated Rs 6 billion during the first fortnight of June 2000 at an entry price of Rs 14.95 per unit. These investors were expecting a higher dividend payout in Unit Trust of India's flagship on the back of a buoyant equity market last year.'
US-64 declares 13.75% dividend
'For an investor who entered the fund in July last year at Rs 13.50, the dividend yield turns out to be an unimpressive 10.18 per cent. The investor would have been better off by investing in any of the medium-term debt funds.'
UTI MIP (II) mobilises Rs 5 billion
'The collections in Monthly Income Plan (II) mark a sharp fall from collections under the first MIP for this year, which was around Rs 10 billion.'
The one-fund asset management companies
'They are one-fund asset management companies or simply put, fund houses whose fortunes are linked to the performance and duration of a single fund.'
UTI to unveil Early Retirement Income Fund
'The scheme is targeted at those investors, who plan to invest their terminal benefits after opting for voluntary retirement or plan to invest their savings for post-retirement financial support.'
Debt funds deliver
'While diversified equity funds have lost an average 20 per cent in the last five months, medium-term debt funds have gained an average 5.8 per cent.'
Himachal Futuristic in UTI Pharma Fund!
'How does a telecom company fit in a dedicated pharmaceutical fund's portfolio?'
Mutual funds as contrarians
'Mutual funds were active sellers when the markets peaked in February but emerged as selective buyers when the valuations started to crumble.'
Debt funds going heavy on gilts
'Easy liquidity, lesser risk, dazzling returns, and lack of liquid corporate paper see fund managers taking higher exposure to government securities.'
SBI Mutual Fund running out of steam
'With ICE sector scrips suffering the most at the bourses and the SBIMF's portfolios heavily skewed in favour of ICE stocks, the fund lost 39% in April - shrinking from Rs 7.95 billion to Rs 4.86 billion.'
BoI Double Square Plus's problem
'The widening gap between BoI Double Square Plus's net asset value (NAV) and the assured return of Rs 400 is staring Bank of India Asset Management Company in the face again.'
UTI can't penalise other schemes just to revive US-64
'If the Trust is feeling the pinch of tax on dividends it must use its Development Reserve Fund to pay the assured return in its MIP and Institutional Fund Series.'
Leading funds grow 195% in 1999-2000
'The brouhaha for equity funds notwithstanding, debt funds have emerged as the silent winners for fiscal 2000 as far as the collection figures go.'
Debt funds turn attractive
'With the sharp fall in net asset values of equity funds in the last couple of months, investors are beginning to find merit in debt funds as safety takes precedence over returns.'
Kotak schemes' NAVs begin to creep up
'After the public issue of Kotak Mahindra's tech and MNC funds in the bull market, the net asset values rise marginally as the funds go open-ended.'
Relying on Reliance
'UTI's Petro Fund is the only gainer in the category of open-ended diversified and sectoral funds in the two-month period ending April 2000.'
Balanced' funds, ill-balanced funda!
'If you thought your balanced fund was an ideal mix of steady returns and adequate safety, you couldn't have been more wrong. In one of the most volatile periods on the Indian bourses, the last two months have shown that even balanced funds are not suited to safeguard your investments in a falling market.'
UTI Mastershare declares 16% dividend
'In a smart move, the Unit Trust of India has declared a 16 per cent dividend in Mastershare to avoid the 22 per cent dividend tax on close-ended funds, which comes into effect from June 1, 2000.'
Tech fund investors' cup of woes runneth over
'With sharp erosion in the value of ICE sector scrips, net asset values of the new technology funds have plummeted and are now quoting below par.'
Dividend and bonus buoys KP Bluechip assets
'Kothari Pioneer Bluechip has witnessed strong inflows with assets vaulting by 200 per cent from Rs 77.58 crore on February 29, 2000 to Rs 232.58 crore as on March 31, 2000.'
Diversified equity funds must broadbase portfolios
'With AMCs taking high exposure to infotech, communications, and entertainment scrips, their diversified equity funds saw a sharp drop in NAVs during the hammering at ICE counters.'
Four technology funds go below par
'The relentless butchering of the convergence stocks, culminating in the 364-point fall in the Sensex on Tuesday, has led to an average decline of 21.44 per cent from the NAVs at which the five technology funds had gone open-ended.'
Debt funds face redemption pressure
'Even as equity funds continue to wilt under bear assault, debt funds have come under severe redemption pressure from corporate investors in the month of March with an estimated outflow of Rs 2,600 crore. This translates into a little over one-fourth of the total assets of Rs 10,000 crore managed by open-ended, medium-term debt funds.'
Gilt, debt funds record sharp gains
'Thanks to the cut in CRR and bank rate on Saturday, gilt and debt funds invested towards the long-end of the market have delivered stupendous returns. Debt securities recorded sharp gains on Saturday and Monday after the rate cut announcement by the apex bank with long-dated gilts gaining an average Rs 2 to 2.5.'
RBI move signals a lower interest-rate regime
'The cut in CRR and bank rate will not only infuse more liquidity in the system, it will also give a boost to the net asset value of debt and gilt funds.'
'If you think mutual funds have pulled 500 points off the BSE Sensex since March 1, then you are mistaken. The numbers speak otherwise. A quick analysis of the daily purchase and selling reveals that domestic funds have been net buyers to a tune of Rs 2.68 billion between March 1 and March 24, 2000.'
Burger and beans to M&A Funds
'The deluge of mergers and acquisitions in India has led asset management companies to consider the introduction of M&A funds. Two AMCs -- Cholamandalam Cazenove and JM -- will shortly unveil their version of M&A funds.'
Franklin India Growth Fund another non-performer?
'After a disastrous performance by the value-oriented Templeton India Growth Fund since inception in 1996, the NAV of the recently launched Franklin India Growth Fund (FIGF) has gone below par and touched a low of Rs 9.55 on March 16, 2000.'
ANZ Grindlays AMC set to unveil debt fund
'ANZ Grindlays Asset Management is about to launch its first open-ended, medium-term debt fund. Christened ANZ Super Saver Income Fund, it will be the maiden fund from ANZ Grindlays Asset Management.'
UTI MIP 2000 is losing its sheen
'The MIP will invest up to 30 per cent in equities, while it has to invest a minimum of 70 per cent in debt instruments. It is going to be a tightrope walk for the fund manager with the drop in interest rates and higher dividend tax, for the fund will have to maximise returns from its equity portfolio to meet the assured returns.'
Kothari Pioneer's bet on cash
'It pays to be in cash when the markets are down. It pays to be in cash when the markets are down. The equity funds of Kothari Pioneer Mutual Fund are holding Rs 600 crore in cash (as on March 16, 2000), which is about 20 per cent of its total equity portfolio.'
Dividends from Prudential ICICI
'The Rs 4600-crore Prudential ICICI Mutual Fund has declared a 100 per cent dividend in Prudential ICICI Growth Fund.'
Source: Value Research