Mutual Funds.....

priyanka1987

New member
hey all ,

if anyone want more information on mutual funds.... thn here you can get info on mutual funds..... if u hv projects on same thn pls post here and if u hv information on da same thn post here......


Regards,

Priyanka
 

priyanka1987

New member
$4b isn’t enough, fund houses want more



Mutual fund managers have welcomed the RBI’s decision to increase industrywide limit for investment in overseas securities by mutual funds to $4 billion. However, most of them say the central bank should raise the individual limit of $150 million per fund house. Fund managers say the limit prevents the asset management companies from achieving a scale of economy.

“We look forward to Sebi providing increased limits at the fund house level,” says Rajan Krishnan, business head, Principal Pnb AMC. “Increased investment limit will make overseas investing a more attractive proposition for fund houses as the scale of operations improves,” he added.

As of now only two fund houses — Principal and Franklin Templeton — have schemes that invest in overseas securities. A similar scheme by Fidelity is open for subscription, while other fund houses like UTI Mutual, Kotak, ING, Sundaram said to be in the process of launching such schemes. “It is a welcome move and a step in the right direction,” says Paras Adenwalla, chief investment officer at ING Vysya Mutual Fund, on the RBI’s move to increase the industrywide limit. “Opening the space gradually, rather than opening it at one go seems to be a sensible option,” he adds. The Committee on Fuller Capital Account Convertibility, under S S Tarapore had suggested phased raising of the the ceiling of overseas investments by mutual funds from $2 billion to $5 billion.

Investment in overseas securities provides a valuable opportunity to investors to diversify their risk. By having assets invested across multitude of markets say in Latin America, South East Asia, Central Europe and Eastern Europe, an investor can have the benefit of diversification, which would cushion the risks arising from having a concentrated portfolio.

The funds managed by Principal and Franklin Templeton, and also the one by Fidelity, which invest in overseas securities are feeder funds. This means that they pour all their assets into another larger mutual fund abroad , which in turn will invest in stocks in those markets.
 

priyanka1987

New member
Dedicated MFs to help small investor join global takeover



The cap applicable on fund houses for investing in overseas instruments may soon go, provided the investments by retail investors is routed through a dedicated overseas fund.

Fund houses such as Fidelity, Franklin Templeton and Principal that currently allow retail investors to invest abroad are subject to individual ceilings of $150 million across all schemes.

However, mutual funds may now be able to offer investment options to retail investors through a fund dedicated to investing abroad. Such a fund may not be subject to the $150-million ceiling as long as it is strictly restricted to overseas instruments (both debt and equity) only.

While the overall cap of $4 billion for the mutual fund industry will continue, these dedicated funds may not be subject to this annual ceiling. Suppose a mutual fund offers a scheme to its investors wherein 65% of the total assets under management (AUM) under the scheme is invested in domestic equities while 35% of the scheme’s AUM is invested overseas.

Then under the current regulations such a fund will be allowed to invest upto 10% of its total AUM (across all schemes) in overseas equities as on March 31 of the relevant year subject to a maximum of $150 million and within the overall $4-billion ceiling.

However, if the fund house floats a separate dedicated fund, both the restrictions may not apply.
The government is working out guidelines for these dedicated funds as well as for individuals who will invest in these funds.

“The idea is to provide retail investors a platform to utilise their limits for making overseas investments. However, since no ceiling may be prescribed for these dedicated funds, there has to be a reporting mechanism to ensure that individuals are not breaching their limit of $1,00,000 while investing through these fund houses,” an official said
 

priyanka1987

New member

MoF nod for PPP rating today




The government has set the ball rolling for rating public-private partnership (PPP) projects. The rating would be for pre-bidding as well as post-bidding stages. Once the rating process is in place, accessing funds for infrastructure projects undertaken on a PPP basis will depend on many factors, the most important being the track record of the project sponsor in honouring operational and financial commitments.

The rating method developed by the four rating agencies Crisil, Care, Icra and Fitch will be applicable to both individual projects as well as special purpose vehicles (SPV) executing projects. The methodology will be discussed on Wednesday at a workshop organised by the finance ministry in Mumbai.

According to the grading method, a copy of which is with ET, risk assessment at the pre-bid stage will be done after evaluation of factors such as status of statutory clearances, availability of land and other inputs and market risk.

In addition, risks involved over the life of the project will also be analysed at the pre-bid stage by taking into account factors such as responsibilities of different project parties, the government and the regulator, political, regulatory and legal environment, examination of major documents and the track record of various entities involved in the project.

After rating individual projects, a grading mechanism for SPVs will be undertaken. The risk assessment will be done in five stages. First, the sponsoring authority of the SPV will be evaluated on the basis of past track record in honouring financial commitments, technical strengths and strategic importance of the project to the sponsor. Thereafter, an evaluation of risks associated at the implementation stage will be undertaken, followed by an assessment of risks at the operation stage.

Once all factors are taken into account, along with the grading of the project the SPV is executing, an overall grade on a five-point scale will be given to the SPV. While grade 1 will indicate the highest likelihood of a project being completed on time and meeting debt obligations, a grade of five will indicate the lowest likelihood of it being completed on time.
 

priyanka1987

New member
MFs on SIP drive to rope in more small investors




In a country where literacy about the stock market and mutual funds in particular, is miniscule at best, fund houses are going all out to bring in more investors into the MF fold.

Close on the heels of a recent announcement by Reliance of a product where an investor can invest as little as Rs 100 a month in a fund, ICICI Prudential is all set announce a systematic investment plan (SIP) of Rs 50 a month. While most fund officials welcome the move, they point out that it could be a while before fund houses make enough profits with such a product, so as to keep offering it.

A SIP is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund. For a long time, the minimum amount to be invested was Rs 500 where the frequency of investment could be monthly or quarterly.

But Reliance’s move caught most fund houses by surprise, with many calling it a micro SIP revolution. “This move will make investing in mutual funds much easier for everyone and is likely to help grow the category rapidly,” a Reliance Capital spokesperson said. The idea behind the micro SIP revolution is to attract a first-time investor to mutual funds and then gradually draw larger contributions from him.

Many other fund houses are believed to be examining the issues about viability of the product on the belief that the revolution is here to stay. “Although as an idea, the product is not bad, there are issues as to whether the product is viable in the short term,” said RS Srinivasan Jain, chief marketing officer at SBI Mutual.

“It takes money for banks to transfer funds, pay the distributor his commission and file disclosures with the regulator,” he adds. However, he does believe that micro SIPs will help bring in more investors across the country into the MF space, which could then be roped in for selling more products.
 

ruvi_143

Par 100 posts (V.I.P)
Thanks for all your effort.....but it wud be much better if u read d articles n summarize dem, makin it easier 4 d viewers........rather than ccp.......

@priyanka1987.......

good posts.....but lets replicate d information in a much easier format......
 

priyanka1987

New member
ya ur rite ruvi... it needs participation too.... lets we all try to get good info n in easy formate... well it was news on mutual fund... current news that y i didnt chang any but ur rite... let bring more info in the forum... thanx ones again...
 

balaji.g.k

New member
hi priyanka i am new to this forum can u send me some projects on insurance and mutual funds which ever u have to ..... plz.....
 
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