MASTER MIND FINNASSET: April 2011

Monday, April 18, 2011

IRDA raises premium rates for third-party motor insurance

Insurance Regulatory and Development Authority (IRDA) has raised the premium rates for third-party motor insurance policies by 10% to 65% across different categories of vehicles and ownerships.

While third-party premiums for personal cars and two-wheelers were raised by 10%, new premiums for commercial vehicles would be higher by 65%. The new rates are effective from 01 April 2011.

Third party motor premiums in India are regulated by Tariff Advisory Committee, a constitutional body under IRDA. Third party motor premiums for commercial vehicles rose for the first time in four years.

IRDA also specified third party motor premiums would be revised annually, based on inflation and claim experience. Third-party premium rates for commercial vehicles were stagnant for the last four years, owing to opposition from transport unions.

The revised schedule of premium is available in the website of the Authority www.irda.gov.in

Birla Sun Life Gold ETF Floats on

NFO Period from 25 April to 09 May 2011

Birla Sun Life Mutual Fund has launched a new fund named Birla Sun Life Gold ETF, an open ended gold exchange traded fund. Each unit of Birla Sun Life Gold ETF shall be issued at a premium equivalent to the difference between the allotment price and the face value of Rs 10 each. The new issue will open for subscription from 25 April and close on 09 May 2011.

Investment Objective: To generate returns that is in line with the performance of gold, subject to tracking error.

Minimum Application Amount: Minimum of Rs 6000 and in multiples of Rs 2000 thereafter per application.

Benchmark: Domestic price of physical gold

Load: Nil

Asset Allocation: The scheme will invest 95%-100% in physical gold and may also invest upto 5% in debt and money market instruments (including cash and cash equivalent).

Fund Manager: Mr. Satyabrata Mohanty

Franklin Templeton MF Declares Dividend for FT India Dynamic PE Ratio Fund of Funds

Record date for dividend is 21 April 2011

Franklin Templeton Mutual Fund has approved the declaration of dividend on the face value of Rs 10 per unit of FT India Dynamic PE Ratio Fund of Funds. The record date for dividend has been fixed as 21 April 2011.

The quantum of dividend will be Rs 0.440 per unit for Individuals & HUF and Rs 0.411 per unit for Others. The scheme record NAV of Rs 34.4324 per unit as on 13 April 2011.

FT India Dynamic PE Ratio Fund of Funds is an open ended Fund of Funds scheme which has the investment objective to provide long-term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds.

Weekly Scenario: Mid Cap Funds Outperform Large Cap Funds

Indian market ended the short week on a bleak note amid high volatility. After starting the week on a depressing note, short covering was seen on Wednesday which pulled the market to mount upto 400 points.

High prices of vegetables and manufactured items drove the headline inflation in March to 8.98%. The overall inflation measured on the basis of Wholesale Price Index (WPI) was 8.31% in February.

Among the major categories in equity fund, Mid Cap Funds and Multi Cap Funds were the gainers by 0.57% and 0.04% respectively over the one week period ended 15 April 2011. On the other hand, Index Funds, Large Cap Funds and Tax Savings Funds were the losers by 0.25%, 0.07% and 0.04% respectively. When we look at the sectoral funds, FMCG Funds gained a maximum of 2.09%, followed by Pharma Funds by 1.34% and Banking Funds by 0.63%. Infotech Funds was the loser among the sector funds losing by 3.69%.

Among the debt fund categories, Ultra Short Term Funds and Floating Rate Income Funds – Short Term were gainer by 0.16% each, Floating Rate Income Funds – Long Term and Short Term Income Funds by 0.15% each, Liquid Funds by 0.14%, Income Funds by 0.10% and Gilt Funds – Short Term by 0.05%, while Gilt Funds – Medium & Long Term was loser by 0.15%.

Debt Oriented Balanced Funds surged the highest among the Hybrid Funds by 0.18%, followed by Equity Oriented Balanced Funds by 0.18%, Monthly Income Plans by 0.11% and Arbitrage Funds by 0.06%. On the Other hand Gold ETF's gained 1.19% and Other ETF's by 0.03%.

Mid Cap Funds: Out of 41 funds, 25 bettered the category average. UTI-Mid Cap Fund was the top performer, which gained by 1.29%, followed by Canara Robeco Emerging Equities which climbed 1.18% and DSP BR Small and Mid Cap Fund rose 1.17% among others. SBI Magnum Midcap Fund, BNP Paribas Mid Cap Fund and HSBC Midcap Equity Fund ended at the bottom of this category declining by 0.70%, 0.10% and 0.06% respectively.

Multi Cap Funds: Out of 71 funds considered, 28 outperformed the category average. Escorts Leading Sectors Fund was the top performer, which gained by 1.25%, followed by Sundaram Rural India Fund which climbed 0.94% and Birla Sun Life India Reforms Fund rose 0.89% among others. Tata Select Equity Fund and ICICI Pru Equity Opportunities Fund ended at the bottom of this category declining by 0.73% and 0.63% respectively.

Friday, April 08, 2011

FIIs continue buying

Inflow of Rs 716.30 crore on 6 April 2011

Foreign institutional investors (FIIs) bought shares worth a net Rs 716.30 crore on Wednesday, 6 April 2011 which was a result of gross purchases Rs 2983.70 crore and gross sales Rs 2267.50 crore. There was an inflow of Rs 607.90 crore into the secondary equity markets which was a result of gross purchases Rs 2875.10 crore and gross sales Rs 2267.20 crore. The BSE Sensex had fallen 74.62 points or 0.38% to settle at 19,612.20 on that day.

There was an inflow of Rs 108.30 crore into the category 'primary market & others' on Wednesday, 6 April 2011 which was a result of gross purchases Rs 108.60 crore and gross sales Rs 0.30 crore.

FII inflow in April 2011 totaled Rs 6366.30 crore (till 6 April 2011). FIIs had bought equities worth Rs 6897.80 crore in March 2011. FII inflow in the calendar year 2011 totaled Rs 3865.40 crore (till 6 April 2011).

FII had bought equities worth Rs 133266 crore in the calendar year 2010. In dollar terms the net equity inflow in 2010 totaled $29.36 billion, compared to an inflow of $17.45 billion in 2009. The annual inflow in 2010 was at record level.

There are a total of 1,723 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Mutual funds continue selling

Outflow of Rs 202.60 crore on 6 April 2011

Mutual funds (MFs) sold shares worth a net Rs 202.60 crore on Wednesday, 6 April 2011, lower than an outflow of Rs 345.80 crore on Tuesday, 5 April 2011.

The net outflow of Rs 202.60 crore on 6 April 2011 was a result of gross purchases Rs 537.60 crore and gross sales Rs 740.20 crore. The BSE Sensex had fallen 74.62 points or 0.38% to settle at 19,612.20 on that day.

MFs sold shares worth net Rs 683.30 crore in April 2011 (till 6 April 2011). Mutual funds had sold equities worth a net Rs 253.30 crore in March 2011.

Thursday, April 07, 2011

FIIs turn buyers in 2011

Inflow of Rs 1562.70 crore in 2 trading sessions on 4 & 5 April 2011

Foreign institutional investors (FIIs) bought shares worth a net Rs 1562.70 crore during two trading sessions on Monday, 4 April 2011 and Tuesday, 5 April 2011. The net inflow of Rs 1562.70 crore was a result of gross purchases Rs 4917.90 crore and gross sales Rs 3355.20 crore. There was an inflow of Rs 1471.30 crore into the secondary equity markets which was a result of gross purchases Rs 4823.70 crore and gross sales Rs 3352.30 crore.

There was an inflow of Rs 91.40 crore into the category 'primary market & others' during two trading sessions on Monday, 4 April 2011 and Tuesday, 5 April 2011, which was a result of gross purchases Rs 94.20 crore and gross sales Rs 2.80 crore.

FII inflow in April 2011 totaled Rs 5650 crore (till 5 April 2011). FIIs had bought equities worth Rs 6897.80 crore in March 2011. FII inflow in the calendar year 2011 totaled Rs 3149.10 crore (till 5 April 2011).

There are a total of 1,718 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Tata MF Announces Change in Key Personnel

With effect from 1 April 2011

Tata Mutual Fund has announced that Mr. Atul Bhole has been designated as Fund Manager for equity portfolio of Tata Young Citizens Fund, Tata Monthly Income Fund and Tata MIP Plus Fund (the schemes) with effect from 1 April 2011.

Mr. Venugopal M. ceases to be the Fund Manager for the equity portfolio of the above mentioned schemes with effect from 1 April 2011.

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