Facility To Allow Switch-Over To Another Co With Same Terms

In a big relief to dissatisfied health insurance policyholders, sectoral regulator Irda on Thursday allowed them portability - shifting policies from one insurer to another on same terms - from July 1. "The regulator has examined various issues involved in the portability of health insurance plan and has issued necessary orders for effecting portability which will be implemented from July 1, 2011," Insurance Regulatory and Development Authority (Irda) said in a statement. 

The portability facility will allow policy holders to switch over to another insurance company with the same conditions. "The accepting insurer shall provide cover, at least up to the sum assured in the previous insurance policy," the regulator said. The new facility will also help those policyholders who stick to one insurer throughout life for fear of losing the cover for pre-existing diseases (PED). 

"It is essential to protect the policyholders against discontinuity and consequential loss of PED cover by making the health insurance plans portable across the insurance companies," Irda said. In general, health insurance policies have specific exclusions for PED for a specified period of cover during the initial year, and policyholders do not get this cover in the event of changing insurance firm. It was considered "detrimental to competition". Irda decision comes after it received several representations from consumer associations and policyholders for enabling portability of health insurance policies. Currently, the regulator allows portability of motor insurance polices.

Inflation at 8.23% in January 2011

Growth in leading index 

The official Wholesale Price Index for 'All Commodities' (Base: 2004-05=100) for the month of January, 2011 rose by 1.2 % to 145.9 (Provisional) from 144.1 (Provisional) for the previous month. 

The annual rate of inflation, based on monthly WPI, stood at 8.23% (Provisional) for the month of January 2011 (over January 2010) as compared to 8.43% (Provisional) for the previous month and 8.53% during the corresponding month of the previous year. Build up inflation in the financial year so far was 7.44% compared to a build up of 9.42% in the corresponding period of the previous year.

Religare Mid N Small Cap Fund to be converted into an Open Ended Equity Scheme

With effect from 17 March 2011 

Religare Mutual Fund has decided to convert Religare Mid N Small Cap Fund, a close ended equity scheme with a maturity of 3 years (maturing on 16 March 2011) into an open ended equity scheme with effect from 17 March 2011. Accordingly, the load structure has been proposed to be altered. It includes for transactions through Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP). 

In respect of each purchase / switch-in of units, an exit load of 1% is payable, if units are redeemed /switched-out on or before 1 year from the date of allotment. 

In respect of each purchase / switch-in of units, no exit load is payable, if units are redeemed /switched-out after 1 year from the date of allotment. 

In case an investor does not wish to continue to hold units in view of the said changes, they will have the option to exit the said scheme at the prevailing NAV, without any exit load. The said exit option can be availed from 15 February 2011 to 16 March 2011.

IDFC Mutual Fund Launches IDFC Infrastructure Fund

NFO Period from 14 February to 28 February 2011 

IDFC Mutual Fund has announced the launch of IDFC Infrastructure Fund, an open ended equity scheme. The New Fund Offer (NFO) will be open for subscription from 14 February 2011 till 28 February 2011. The face value of the new issue will be Rs 10 per unit. 

The investment objective of the scheme is to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities. 

The fund is designed to be 'true-to-label'. It defines infrastructure using benchmark definitions of RBI and World Bank. 

At the launch of IDFC Infrastructure Fund Mr. Kenneth Andrade, Head - Investments, IDFC Mutual Fund said, "IDFC infra fund has been launched at a time when we believe that valuations in this sector are very attractive and there may be huge investment appreciation ahead." 

IDFC Infrastructure Fund would allocate 80% to 100% of assets in equities & equity related securities in companies engaged in infrastructural and infrastructural related activities with high risk profile. On the flip side it would allocate upto 20% of assets in debt and money market instruments with low to medium risk profile. 

Under the scheme, investors may choose either the Growth Option or the Dividend Option

The minimum investment amount during the NFO is Rs. 5,000 and the fund manager of the scheme is Mr. Kenneth Andrade. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1 crore under the scheme during the NFO period. 

The exit load charge will be 1% if redeemed within 365 days from the date of allotment. No load shall be applicable for switches between equity schemes of IDFC Mutual Fund and for switches between options of the schemes. 

Benchmark index for the scheme is BSE 200.

HDFC MF Declares Dividend Under Its Three Schemes

Record date for dividend is 17 February 2011 

HDFC Mutual Fund has announced 17 February 2011 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend option of following schemes: 

HDFC Multiple Yield Fund: The quantum of dividend will be Rs 0.7500 per unit for Individual & HUF and Rs 0.6990 per unit for Others. The scheme recorded NAV of Rs 11.2407 per unit as on 10 February 2011. 

HDFC Multiple Yield Fund - Plan 2005: The quantum of dividend will be Rs 0.7500 per unit for Individual & HUF and Rs 0.6990 per unit for Others. The scheme recorded NAV of Rs 11.3530 per unit as on 10 February 2011. 

HDFC Core & Satellite Fund: The quantum of dividend will be Rs 2.00 per unit. The scheme recorded NAV of Rs 21.463 per unit as on 10 February 2011. 

HDFC Multiple Yield Fund & HDFC Multiple Yield Fund - Plan 2005 is an open ended income schemes. The investment objective of the schemes is to generate positive returns over the medium time frame with low risk of capital loss over medium time frame.

HDFC Core & Satellite Fund is an open end growth scheme has the objective to generate capital appreciation through equity investment in companies whose shares are quoting at prices below their true value.

Franklin Templeton MF Declares Dividend For Franklin India Prima Plus

Record date for dividend is 18 February 2011 

Franklin Templeton Mutual Fund has approved the declaration of tax-free dividend on the face value of Rs 10 per unit of Franklin India Prima Plus. The record date for dividend has been fixed as 18 February 2011. 

The quantum of dividend will be Rs 3 per unit as on the record date. The scheme record NAV of Rs 27.5746 per unit as on 11 February 2011. 

All investors registered in the Dividend Plan as on 18 February 2011 will receive this tax-free dividend. 

Franklin India Prima Plus is an open end growth scheme with an objective to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments.

Weekly Scenario: Debts Funds Inch Up

Indian equities declined for the third consecutive week in row resulting erosion in NAV of equity funds. Mid Cap Funds declined the most by 3.10%, Pharma Funds by 2.79%, Infotech Funds by 2.71% and Multi Cap Funds by 2.47% among others during the week ended 11 February 2011. On the flip side Banking Funds and FMCG Funds witnessed the least erosion of NAV among the equity funds by 0.17% and 1.02% respectively. Industrial production came in with a sluggish growth of 1.6% in December 2010, much weaker than previous month of 3.6% on the back of weaker growth in manufacturing activity. 

Arbitrage Funds had gained marginally by 0.01% while Gold ETF's advanced by 1.08%. Debts funds have been the safer haven during the weak equity market rally. Gilt - Medium & Long Term and Floating Rate Income Funds - Long Term surged the highest among the debt fund category delivering a category return of 0.20% and 0.17% respectively over one-week period ended 11 February 2011. Gilt - Short Term surged up 0.16%, Floating Rate Income Funds - Short Term & Ultra Short Term Funds by 0.15% each, Liquid Funds, Income Funds and Short Term Income Funds by 0.14% each. 

Arbitrage Funds

 

Among the schemes in the Arbitrage Fund category, ICICI Pru Blended - Plan B Option I was the top performer in this category with a return of 0.15% over one week period ended 11 February 2011. It was followed by JPMorgan India Alpha Fund and Benchmark Equity & Derivatives Opportunities Fund with 0.09% each. However nine funds in this category witnessed erosion in NAV, over one week period. Reliance Arbitrage Advantage Fund was the worst performer in this category declining by 0.13%. 

Floating Rate Income Funds

 

Floating Rate Income Funds - Short Term: Escorts Short Term Debt Fund was the top gainer in this category with a return of 0.18% over one week time period. Canara Robeco Floating - STP was the next highest gainer by 0.17%, SBI Magnum Income FRP - Savings Plus Bond, SBI Magnum Insta Cash - Liquid Floater Plan, L&T Floating Rate Fund and Principal Near-Term Fund - Moderate Plan gained 0.16% each. HSBC Floating Rate - ST posted a minimum weekly return in this category, gaining by 0.11%. 

Floating Rate Income Funds - Long Term: Sundaram Flexible - FIP and JM Floater Fund - LTP were the top performers in this category with a return of 0.29% and 0.21% respectively. ICICI Pru Long Term Floating Rate Plan C and HDFC Floating Rate Income - Long Term surged 0.17% each, ICICI Pru Long Term Floating Rate Plan B, Tata Floater Fund and ICICI Pru Long Term Floating Rate Plan A gained 0.16% each. Tata Floating Rate Fund - LTP ended at the bottom of this category gaining by 0.12% over one week time period. 

Gilt Funds

 

Gilt - Medium & Long Term: DWS Gilt Fund and L&T Gilt Investment Plan were the top performers in this category with a return of 0.44% each. It was followed by Edelweiss Gilt Fund which surged up 0.35% and Templeton India G-Sec Fund - LTP by 0.31%. Mirae Asset Gilt Fund - Invest and Mirae Asset Gilt Fund - Savings ended at the bottom of this category posting a weekly return of 0.05% each. 

Gilt - Short Term: Reliance HDFC Gilt Fund Short Term Plan and Tata Gilt Securities Short Maturity Fund - App were the top performers in this category with a return of 0.30% and 0.27% respectively. Reliance Gilt Sec Fund and ICICI Pru Gilt Fund - Treasury were the next top performers, gaining by 0.25% and 0.21% respectively. IDFC G-Sec Fund - STP posted minimum weekly return in this category, gaining by 0.07%. 

Ultra Short Term Funds

 

SBI Short Horizon Debt - UST, IDBI Ultra Short Term Fund, Pramerica Ultra Short Term Bond Fund, JM Money Manager Fund - Super Plan, Templeton India Ultra-Short Bond, Tata Treasury Manager Fund - RIP, Taurus Ultra Short Term Bond, Principal Ultra Short Term, Daiwa Treasury Advantage Fund, JM Money Manager Fund - Super Plus Plan and Baroda Pioneer Treasury Advantage were the top gainers in this category gaining by 0.16% each. Mirae Asset Ultra Short Term Bond ended at the bottom of the category table gaining by 0.10%. 

Liquid Funds

 

Escorts Liquid Plan was the top performer in this category with a return of 0.19%. ICICI Pru Sweep Plan ended at the bottom of this category posting a weekly return of 0.10%.

ICICI Prudential MF Declares Dividend for Tax Plan

Record date for dividend is 18 February 2011 

ICICI Prudential Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option of ICICI Prudential Tax Plan, an open ended equity linked savings scheme. The record date for dividend has been fixed as 18 February 2011. 

The quantum of dividend will be Rs 2 per unit. The scheme recorded NAV of Rs 19.47 per unit as on 10 February 2011. 

ICICI Prudential Tax Plan has the investment objective to generate long term capital appreciation through investments primarily in equity / equity related securities of the companies.

Reliance MF Launches Gold Savings Fund

NFO Period from 14 February to 28 February 2011 

Reliance Mutual Fund has launched a new fund named as Reliance Gold Savings Fund, an open ended fund of fund scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 14 February and close on 28 February 2011. 

Reliance Gold Savings Fund, is the first gold fund of fund in the industry which opens a new avenue for investing in gold as an asset class. The fund seeks to provide returns of gold through investments in Reliance Gold Exchange Traded Fund, which in turn invest in physical gold. It enables you to reap the returns of gold in a paper form without the need of a demat account. 

It is a passively managed fund which would enable an investor to save for gold in a convenient manner either through lump sum investment or through systematic investment. It aims to give investors the opportunity to participate in the bullion market in a relatively cost effective and convenient way as you can directly purchase and sell the units at the AMC. 

The scheme would allocate 95% to 100% of assets in Reliance Gold Exchange Traded Fund with medium to high risk profile. On the flip side it would allocate upto 5% of assets in reverse repo and /or CBLO and/or short-term fixed deposits and/or schemes which invest predominantly in the money market securities or liquid schemes with low to medium risk profile. 

Reliance Capital Asset Management CEO Sundeep Sikka said: "We expect this gold investment industry to surpass equity MFs in the next three years." 

Sikka said the gold investment opportunity in India was not optimally tapped and the new product will offer a simple, affordable and investor-friendly solution for investing in gold to the masses. 

"Indians are known for their love for gold. However, with low demat penetration in India, a lot of investors have not been able to participate in this safe mode of investment. 

"This product will create a new avenue for pure gold investments for the retail investor without the need of having a demat account or a locker," he added. 

This new fund will enable investors to avail long-term taxation benefits from the first year itself, unlike physical gold, wherein long-term taxation can only be availed after three years.

The scheme offer growth and dividend plan. The dividend plan offers dividend payout and reinvestment option. 

The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter.

The fund seeks to collect a minimum subscription amount of Rs 1 crore under the scheme during the NFO period. 

Entry load charge for the scheme will be nil. The exit load charge will be 2% if redeemed or switched out on or before completion of 1 year from the date of allotment of units, Nil - If redeemed or switched out after the completion of 1 year from the date of allotment of units. 

The scheme's performance will be benchmarked against the price of physical gold. 

The fund manager for the scheme will be Hiren Chandaria.

DSP BlackRock MF Announces Merger of Savings Manager Fund – Conservative & Moderate to Aggressive

With effect from 26 February 2011 

DSP BlackRock Mutual Fund has announced that with effect from 26 February 2011 DSP BlackRock Savings Manager Fund – Conservative and DSP BlackRock Savings Manager Fund – Moderate shall be merged into DSP BlackRock Savings Manager Fund- Aggressive. 

Post the said merger, the investment objective, asset allocation pattern and name of DSP BlackRock Savings Manager Fund- Aggressive shall change as follows: 

Investment Objective: An open ended income scheme, seeking to generate income, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. 

The DSP BlackRock Savings Manager Fund- Aggressive will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of issuers domiciled in India. 

Asset Allocation Pattern: The scheme would allocate 75% to 100% of assets in debt and money market securities with low to medium risk profile. It would further allocate upto 25% of assets in equity and equity related securities with medium to high risk profile. 

Name: DSP BlackRock Savings Manager Fund- Aggressive shall be renamed as DSP BlackRock Savings Manager Fund.

UTI MF Declares Dividend Under Banking Sector Fund

Record date for dividend is 3 February 2011 

UTI Mutual Fund has announced 3 February 2011 as the record date for declaration of dividend under dividend option of UTI Banking Sector Fund. 

The fund house has decided to distribute Rs 2.50 per unit (25%) as dividend on the face value of Rs 10 per unit. The scheme recorded NAV of Rs 24.2000 per unit as on 27 January 2011. 

UTI Banking Sector Fund is an open end equity oriented scheme. The investment objective is capital appreciation through investments in the stocks of the companies / institutions engaged in the banking and financial services activities.

Birla Sun Life MF Declares Dividend Under Three Schemes

Record date for dividend is 4 February 2011 

Birla Sun Life Mutual Fund has announced 4 February 2011 as the record date for the declaration of dividend on the face value of Rs 10 per unit under dividend options of following three schemes: 

Birla Sun Life Frontline Equity Fund – Plan A: The quantum of dividend will be Rs 1.25 per unit as on the record date. The scheme recorded NAV of Rs 22.28 per unit as on 27 January 2011. 

Birla Sun Life Advantage Fund: The quantum of dividend will be Rs 4.50 per unit as on the record date. The scheme recorded NAV of Rs 85.48 per unit as on 27 January 2011. 

Birla Sun Life Basis Industries Fund: The quantum of dividend will be Rs 1.15 per unit as on the record date. The scheme recorded NAV of Rs 27.21 per unit as on 27 January 2011.

DSP BlackRock MF Declares Dividend Under Equity Fund

Record date for dividend is 4 February 2011 

DSP BlackRock Mutual Fund has declared dividend on the face value of Rs 10 per unit under dividend option of DSP BlackRock Equity Fund – Regular Plan. The record date for dividend is set as 4 February 2011. 

The quantum of dividend will be Rs 3.50 per unit as on the record date. The scheme recorded NAV of Rs 51.5890 per unit as on 27 January 2011. 

DSP BlackRock Equity Fund is an open ended equity growth scheme. The investment objective of the scheme is to seek to generate long term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India.

IDFC MF Declares Dividend For Tax Advantage (ELSS) Fund

Record date for dividend is 4 February 2011 

IDFC Mutual Fund has announced the declaration of dividend under dividend option of IDFC Tax Advantage (ELSS) Fund. The record date for dividend is set as 4 February 2011. 

The quantum of dividend will be Rs 2.50 per unit, subject to availability of distributable surplus. The scheme recorded NAV of Rs 14.4631 per unit as on 27 January 2011. 

The investment objective of the scheme is to seek to generate long term capital growth from a diversified portfolio of predominantly equity and equity related securities.