Tata AIG General Insurance introduces claim approval service within 4 hours

Tata AIG General Insurance has introduced a service where it will settle health claims within four hours of filing for a claim. "Normally it takes over six hours for claims approvals due to processing. We thought to tighten the procedure further and bring down the time to only four hours. We introduced this feature to prevent a medical emergency from becoming a financial burden on our customers," Tata AIG General Senior Vice-President, Consumer Lines, Ramesh Ramani told PTI here. 

This fast-track approval feature is available for existing customers as well as the new ones, he added. The private insurer is relatively a new entrant into the health space and launched its first product in the segment around 10 months ago. "Being a new player in the health space we are planning to introduce innovative features and products that will not only establish our brand but also help us increase our customer base," Ramani said. The firm, a joint venture between the Tata Group and American International Group Inc (AIG), has eight health policies under its portfolio.

It has sold over 20,000 health polices between April-December 2012. Going ahead, the private insurer is looking to launch segment specific products under the health category. "We already have filed few segment specific health products with the regulator IRDA (Insurance Regulatory and Development Authority). We hope to launch our first such product in the next six months," Ramani said. 

source: PTI

Private non-life insurers see hike in filing of claims

Private non-life insurance companies witnessed higher number of claims being registered in the September quarter of FY13, compared with same period last year, as per the quarterly disclosure data released by them. They also settled higher number of claims in the September quarter of FY13 on a year-on-year basis, although, as a proportion of total outstanding claims, it was low. As per data, six large private insurers had received 1,303,706 new claims in September quarter of FY13 and had 1,261,619 pending claims from the June quarter of FY13.

Out of the total 2,565,325 health insurance claims, 46 per cent, or 1,183,897 claims were settled by insurers, 1.4 per cent, or 35,188 claims were rejected and 52.4 per cent, or 1,345,116 claims, were pending at the end of the September quarter. Insurers had received 1,285,686 claims in the September quarter of FY12, while they had 435,864 claims from the preceding quarter. Out of the total 1,721,550 claims, they settled 63 per cent, or 1,088,184 claims, rejected 2.4 per cent, or 40,876 claims, and 34.3 per cent, or 5,91,149 claims, were pending at the end of September 2011. The six private insurers that were considered for the analysis are Bajaj Allianz General Insurance, Reliance General Insurance, ICICI Lombard General Insurance, HDFC Ergo General Insurance, Royal Sundaram Alliance Insurance and Cholamandalam MS General Insurance.

In the September quarter of FY13, Bajaj Allianz General settled 77.8 per cent, (which is highest as a percentage of total claims) or 24,284 claims out of total claims that stood at 31,223. They had settled 83.8 per cent or 24,820 claims out of total claims of 29,608 in September 2011. HDFC Ergo General settled 71.1 per cent, or 20,046 claims, out of the total 28,189 claims till September 2012, against 61.8 per cent, or 13,611 claims, out of the total 22,042 claims till September 2011. ICICI Lombard settled 42.1 per cent (which is lowest as a percentage of total claims) or 814,897 claims out of the total 1,937,583 claims till September 2012, against 62.2 per cent, or 968,401 claims, out of the total 1,556,807 claims till September 2011.

“This year, we had received bulk of claims in some of the state-sponsored health insurance schemes, which takes some time to get settled. However, claim settlement in retail segment has been healthy,” said Sanjay Datta, chief of underwriting and claims at ICICI Lombard General Insurance. Royal Sundaram repudiated 17.1 per cent (which is highest as a percentage of total claims), or 4,018 claims, out of the total 23,524 claims till September 2012, against 8 per cent, or 3,397 claims, out of the total 42,657 claims till September 2011.

HDFC Ergo General repudiated 13.3 per cent, or 3,758 claims, out of the total 28,189 claims till September 2012, against 16 per cent, or 3,521 claims, out of the total 22,042 claims till September 2011. ICICI Lombard repudiated 0.6 per cent (which is lowest as a percentage of total claims), or 11,698 claims, out of the total 1,937,583 claims till September 2012, against 1.9 per cent, or 30,233 claims, out of the total 1,556,807 claims till September 2011.

HDFC Rajiv Gandhi Equity Savings Scheme files offer document with Sebi

A Close Ended Equity Scheme 

HDFC Mutual Fund has filed offer document with Sebi to launch HDFC Rajiv Gandhi Equity Savings Scheme, a close-ended equity scheme investing in eligible securities as per Rajiv Gandhi Equity Savings Scheme, 2012. The New Fund Offer price is Rs 10 per unit. The Scheme offers 4 series having a term/duration of 3 years from the date of allotment of Units. 

Investment objective: To generate long term capital appreciation from a portfolio of Eligible Securities as specified in Rajiv Gandhi Equity Savings Scheme. 

Tax Benefit under Section 80CCG: As per Section 80CCG of the Income-tax Act, 1961, investments made by 'New Retail Investor' in this Scheme will qualify for a 50% deduction of the actual amount invested from the taxable income of the financial year. The maximum investment permissible for claiming deduction in a financial year is Rs. 50,000. 

Options: The respective Series under the Scheme offers Regular Plan and Direct Plan. Both Regular Plan and Direct Plan offer Growth Option and Dividend Payout Option. 

Benchmark: BSE 100 Index 

Loads: Entry and exit load not applicable 

Minimum Application Amount: The minimum amount for application (Purchase / Switch-in) during the NFO period of the respective Series is Rs. 500 and in multiple of Rs. 10 thereafter .
Minimum Target Amount: Rs. 1 crore each Series of the Scheme 

Asset Allocation: The scheme shall invest 90-100% in Equity securities specified as Eligible Securities for RGESS and up to 10% in Cash & cash equivalents (Cash & Cash Equivalent would mean cash (bank balance) or overnight investment in CBLO, reverse repo) and Money Market Medium Instruments. 

Fund Manager: Mr. Srinivas Rao Ravuri

ICICI Prudential Capital Protection Oriented Fund III – Plan E – 60 months announces extension of NFO period

NFO extended till 31 January 2013 

ICICI Prudential Mutual Fund has announced the extension of the NFO period for the ICICI Prudential Capital Protection Oriented Fund III – Plan E – 60 months scheme. The NFO period has been extended to 31 January 2013.

IDFC MF Announces Dividend Under Various Schemes

Record date for dividend is 30 January 2013 

IDFC Mutual Fund has announced 30 January 2013 as the records date for declaration of dividend under the following schemes. The quantum of dividend on the face value of Rs 10 per unit will be: 

ICFC Arbitrage Plus Fund – Regular Plan and IDFC Arbitrage Plus Fund – Plan B: Rs 0.05 per unit, subject to availability of distributable surplus. 

ICFC Arbitrage Fund – Regular Plan and IDFC Arbitrage Fund – Plan B: Rs 0.05 per unit, subject to availability of distributable surplus. 

ICFC Arbitrage Fund – Direct Plan: Rs 0.02 per unit, subject to availability of distributable surplus. 

ICFC Asset Allocation Fund – Conservative – Regular Plan: Rs 0.05 per unit, subject to availability of distributable surplus. 

ICFC Tax Advantage Fund – Regular Plan: Rs 1.30 per unit, subject to availability of distributable surplus.

IRDA issues insurance fraud monitoring framework

IRDA came out with a framework for monitoring frauds in the insurance sector.

Financial Fraud poses a serious risk to all segments of the financial sector. Fraud in insurance reduces consumer and shareholder confidence; and can affect the reputation of individual insurers and the insurance sector as a whole. It also has the potential to impact economic stability. It is, therefore, required that insurers understand the nature of fraud and take steps to minimize the vulnerability of their operations to fraud. Due measures also have to be laid down to address possible frauds in each line of business viz., life, general and health as threats/vulnerabilities posed under each one of them vary significantly. 

Broadly, the potential areas of fraud include those committed by the officials of the insurance company, insurance agent/corporate agent/intermediary/TPAs and the policyholders/ their nominees. Some of the examples of fraudulent acts/omissions include, but are not limited to the following: 

1. Internal Fraud: 

a) misappropriating funds
b) fraudulent financial reporting
c) stealing cheques
d) overriding decline decisions so as to open accounts for family and friends
e) inflating expenses claims/over billing
f) paying false (or inflated) invoices, either self-prepared or obtained through collusion with suppliers
g) permitting special prices or privileges to customers, or granting business to favored suppliers, for kickbacks/favours
h) forging signatures
i) removing money from customer accounts
j) falsifying documents
k) selling insurer's assets at below their true value in return for payment. 

2. Policyholder Fraud and Claims Fraud: 

a) Exaggerating damages/loss
b) Staging the occurrence of incidents
c) Reporting and claiming of fictitious damage/loss
d) Medical claims fraud
e) Fraudulent Death Claims 

3. Intermediary fraud: 

a) Premium diversion-intermediary takes the premium from the purchaser and does not pass it to the insurer
b) Inflates the premium, passing on the correct amount to the insurer and keeping the difference
c) Non-disclosure or misrepresentation of the risk to reduce premiums
d) Commission fraud - insuring non-existent policyholders while paying a first premium to the insurer, collecting commission and annulling the insurance by ceasing further premium payments.

Under the Regulatory Framework put in place for insurance companies, the Authority has stipulated a number of measures to be taken by insurance companies to address the various risks faced by them. Some of these include: 

• The Corporate Governance guidelines mandate insurance companies to set up a Risk Management Committee (RMC). The RMC is required to lay down the company-wide Risk Management Strategy. 

• As part of the Responsibility Statement which forms part of the Management Report filed with the Authority under the IRDA (Preparation of Financial Statements and Auditors' Report of Insurance Companies) Regulations, 2002, the management of an insurance company is required to disclose the adequacy of systems in place to safeguard the assets for preventing and detecting fraud and other irregularities, on an annual basis. 

In order to provide regulatory supervision and guidance on the adequacy of measures taken by insurers to address and manage risks emanating from fraud, the Authority has laid down the guidelines requiring insurance companies to have in place the Fraud Monitoring Framework. 

Fraud Risk Management Systems for Reinsurer: 

Reinsurers can reduce their exposure to fraudulent claims from ceding insurers and reinsurance intermediaries by understanding the fraud risk management systems these counterparties have in place. Accordingly, these guidelines apply mutatis mutandis in case of Reinsurers. 

The Guidelines mandate insurance companies to put in place, as part of their corporate governance structure: 

(i) fraud detection and mitigation measures; and
(ii) submit periodic reports to the Authority in the formats prescribed herein. 

All insurers are required to ensure that the risk management function is organized in such a way that the insurer is able to monitor all the risks across all lines of business on a continuing basis and to initiate measures to address them suitably. 

Scope and Classification of Insurance Frauds: 

Fraud in insurance is an act or omission intended to gain dishonest or unlawful advantage for a party committing the fraud or for other related parties. This may, for example, be achieved by means of: 

• misappropriating assets;
• deliberately misrepresenting, concealing, suppressing or not disclosing one or more material facts relevant to the financial decision, transaction or perception of the insurer's status;
• abusing responsibility, a position of trust or a fiduciary relationship. 

In order to adequately protect itself from the financial and reputational risks posed by insurance frauds, every insurance company shall have in place appropriate framework to detect, monitor and mitigate occurrence of such insurance frauds within its company. The said framework shall, at the minimum, include measures to protect the insurer from the threats posted by the following broad categories of frauds: 

a) Policyholder Fraud and/or Claims Fraud - Fraud against the insurer in the purchase and/or execution of an insurance product, including fraud at the time of making a claim.
b) Intermediary Fraud - Fraud perpetuated by an insurance agent/Corporate Agent/intermediary/Third Party Administrators (TPAs) against the insurer and/or policyholders.
c) Internal Fraud – Fraud/ mis-appropriation against the insurer by its Director, Manager and/or any other officer or staff member (by whatever name called).

Anti-Fraud Policy: 

All insurance companies are required to have in place an Anti Fraud Policy duly approved by their respective Boards. The Policy shall duly recognize the principle of proportionality and reflect the nature, scale and complexity of the business of specific insurers and risks to which they are exposed. While framing the policy, the insurance company should give due consideration to all relevant factors including but not limited to the organizational structure, insurance products offered, technology used, market conditions, etc. As fraud can be perpetrated through collusion involving more than one party, insurers should adopt a holistic approach to adequately identify, measure, control and monitor fraud risk and accordingly, lay down appropriate risk management policies and procedures across the organization. 

The Board shall review the Anti Fraud Policy on atleast an annual basis and at such other intervals as it may be considered necessary. 

The anti-fraud policy shall broadly cover the following aspects: 

i. Procedures for Fraud Monitoring: 

Well-defined procedures to identify, detect, investigate and report insurance frauds shall be laid down. The function of fraud monitoring shall be either an independent function or can be merged with existing functions like risk, audit etc., The Head of this function should be placed at sufficiently senior management level and should be able to operate independently. 

ii. Identify Potential Areas of Fraud: 

Identify areas of business and the specific departments of the organization that are potentially prone to insurance fraud and lay down a detailed department-wise, anti-fraud procedures. These procedures should lay down the framework for prevention and identification of frauds and mitigation measures. 

iii. Co-ordination with Law Enforcement Agencies: 

Lay down procedures to coordinate with law enforcement agencies for reporting frauds on timely and expeditious basis and follow-up processes thereon. 

iv. Framework for Exchange of Information: 

Lay down procedures for exchange of necessary information on frauds, amongst all insurers through the Life and General respective councils. The insurance companies are well advised to establish coordination platforms through their respective Councils and/or Forum to establish such information sharing mechanisms. 

v. Due Diligence: 

Lay down procedures to carry out the due diligence on the personnel (management and staff)/ insurance agent/ Corporate Agent/ intermediary/ TPAs before appointment/ agreements with them. 

vi. Regular Communication Channels: 

Generate fraud mitigation communication within the organization at periodic intervals and/or adhoc basis, as may be required; and lay down appropriate framework for a strong whistle blower policy. The insurer shall also formalize the information flow amongst the various operating departments as regards insurance frauds. 

Fraud Monitoring Function (FMF): 

The FMF shall ensure effective implementation of the anti-fraud policy of the company and shall also be responsible for the following: 

i. Laying down procedures for Internal reporting from/and to various departments.
ii. Creating awareness among their employees/ intermediaries/ policyholders to counter insurance frauds.
iii. Furnishing various reports on frauds to the Authority as stipulated in this regard; and
iv. Furnish periodic reports to their respective Board for its review. 

Reports to the Authority: 

The statistics on various fraudulent cases which come to light and action taken thereon shall be filed with the Authority in forms FMR 1 and FMR 2 providing details of 

(i) outstanding fraud cases; and
(ii) closed fraud cases every year within 30 days of the close of the financial year. 

Preventive mechanism: 

The Insurer shall inform both potential clients and existing clients about their anti-fraud policies. The Insurer shall appropriately include necessary caution in the insurance contracts/ relevant documents, duly highlighting the consequences of submitting a false statement and/or incomplete statement, for the benefit of the policyholders, claimants and the beneficiaries. 

Insurer's to Ensure Compliance: 

The stipulations on fraud detection, classification, monitoring and reporting by the insurers shall be effective from the financial year 2013-14. A compliance certificate confirming laying down of appropriate procedures shall be submitted by 30th June 2013.

Up to 35 per cent cars on roads without insurance

Almost a third of cars and more than two-thirds of two-wheelers on Indian roads do not have even the mandatory third-party liability insurance, according to an analysis by insurance companies. Worse, many companies have found fake motor insurance policies in circulation. Insurance companies have drawn these estimates going by the number of vehicles registered and the total number of policies issued. The analysis, which was not possible in the past, has been facilitated with the help of technology. "Uninsured vehicles is a problem in motor insurance.

Nearly 70 per cent two-wheelers and 30-35 per cent of four wheelers are uninsured. It is clearly a challenge to society as victims of accidents caused by these vehicles do not get adequate compensation," said G Srinivasan, chairman, New India Assurance, the largest non-life insurer and also the largest issuer of motor policies. Insurers say that one reason why such a large number of vehicles remain uninsured is the proliferation of fake policies. Several non-life companies have come across fake policies issued in their name.

With advancement in printing technology, it is possible for fraudsters to replicate policies of existing companies, helping them get through police checks. However, it is at the time of accident and claims from third parties that insurers detect the existence of fake policies. Second, vehicle owners in small cities and villages do not face any scrutiny of their documents.

According to Srinivasan, uninsured vehicles is one of the structural issues faced by the non-life industry in writing motor-third party insurance, which is a drag on the balance sheet of non-life companies. The other issues were rigid prices and the tendency of court awards to go up in keeping with inflation. Some insurers say that it is possible that the number of uninsured vehicles on road could be lower than New India’s estimates because many vehicles do not ply after 15 years.

"In our estimates, around 20-25 per cent of cars are uninsured and in two-wheelers the uninsured vehicles are likely to be around 50 per cent. In two-wheelers, the renewals of first year policies are as low as 25 per cent," said Madhukar Sinha, head of underwriting at Tata AIG General Insurance. One solution that insurers have come up with is long-term policies.

"Issuing long-term policies is a challenge because it is difficult to predict the movement of income and inflation over a long period. In some markets in Europe and USA, insurers issue only six month policies. However, there are discussions on long-term insurance policies for some segments of vehicles, which may be filed with the regulator for approval shortly," said Sinha. "In many cases, third-party proposals come to us after a break in insurance. In such cases, the underwriting process needs to be a bit more stringent which is difficult to implement online," Sinha added. 

source: ET

Franklin Templeton Announces Tax-Free Dividend in Franklin Build India Fund

Record date for the dividend is 4 January 2013 

Franklin Templeton Investments (India) has announced a tax-free dividend of Rs.1.00 per unit (Face Value of Rs.10), in its open end equity fund – Franklin Build India Fund. All investors registered in the Dividend Plan as on 4 January 2013 will receive this tax-free dividend. Pursuant to payment of dividend, the NAV of the scheme would fall to the extent of payout and statutory levy (as applicable). 

The record date for the dividend is 4 January 2013 and any purchases on or before this date will be eligible for the dividend. Under the dividend reinvestment plan, the dividend declared will be reinvested in the Fund at the NAV of 7 January 2013 and unitholders will be allotted additional units for the dividend amount.

Franklin Templeton MF to Suspend Plan & Options under Few of its Schemes

With effect from 31 December 2012 

Franklin Templeton Mutual Fund has announced that the sale of units (including switch-in) under some of the plans / options of the following schemes will stand suspended effective 31 December 2012. 

Templeton India Income Builder Account (TIIBA): Under Plan B – All options (annual dividend option, half yearly dividend option, quarterly dividend option, monthly dividend option, growth option and bonus option, sale of units will be suspended. 

FT India Monthly Income Plan (FTMIP): Under Plan B – All options (quarterly dividend option, monthly dividend option, growth option and bonus option, sale of units will be suspended. 

Templeton India Short Term Income Plan (TISTIP): Retail Plan – Bonus Option, sale of units will be suspended. 

In case of TIIBA and FTMIP
Any subscription or switch-in application received on or after 31 December 2012 in Plan B being suspended will, by default, be deemed to have been received in the respective options of Plan A of the respective scheme and will be processed accordingly. 

Effective 31 December 2012, for the dividend / bonus declared (if any) in any of the suspended options of Plan B, the unit holders registered under dividend reinvestment option / bonus option will be allotted units of the respective option of Plan A of the respective scheme towards the amount of dividend / bonus. Further, systematic investment plans (SIP), systematic transfer plans – in (STP-in) and dividend transfer plans – in (DTP-in) registered in Plan B will continue under the Plan A of the respective scheme for the balance tenure. 

The existing units balance in the suspended Plan B will continue under the same plans and redemptions (including switch-out) would continue to be processed. Existing systematic transfer plans – out (STP – out) or systematic withdrawal plan (SWP) registered in Plan B will continue under the same plan until sufficient balance (free from any lock-in or encumbrances) is available in the account. Post that, the same will continue under the Plan A of the respective scheme for the balance tenure. 

The minimum amounts for fresh purchase in the retained Plan A of TIIBA and FTMIP will be Rs 10000. 

In case of TISTIP
 
SIP, STP-in and DTP-in registered in the suspended bonus options of retail plan will continue to be processed for the balance tenure. Further, allotment of units pursuant to issue of bonus declared in the said option would also continue. 

Redemptions (including switch-out) would continue to be processed under the suspended option. Existing STP-out or SWP registered in the suspended option will continue under the same option for the balance tenure provided sufficient balance (free from any lock-in or encumbrances) is available in the account.

HDFC Mutual Fund Unveils Two Fixed Maturity Plan

HDFC Mutual Fund has launched two new plans named as HDFC FMP 1919D January 2013 (1) and HDFC FMP 462D January 2013 (1), fixed maturity plan under HDFC Fixed Maturity Plans – Series 24 (close-ended income schemes). The face value of the new issue will be Rs 10 per unit. The new issue opening and closing dates are as follows:

Name of the Plan	NFO Opening Date	NFO Closing Date
HDFC FMP 1919D January 2013 (1)	3 January 2013	7 January 2013
HDFC FMP 462D January 2013 (1)	4 January 2013	8 January 2013

The investment objective of the plans 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.

The plans shall offer three options – growth, dividend and flexi option

Asset Allocation:

For Plans having tenure upto 36 months: The plans would invest 70% to 100% of assets in debt securities with medium risk profile. The plans may invest upto 30% of net assets in money market instruments and upto 30% in government securities with low risk profile.

For Plans having tenure above 36 months: The plans would invest 80% to 100% of assets in debt securities with medium risk profile. The plans may invest upto 20% of net assets in money market instruments and upto 20% in government securities with low risk profile.

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under each plan during the NFO period.

Entry and exit load charge will be nil for the plans. Units of the plans will be listed on the Stock Exchange(s) where investors can purchase / sell units on a continuous basis.

For plans having maturity upto 36 months, the benchmark index is Crisil Short Term Bond Fund Index and Crisil Composite Bond Fund Index for plans having maturity more than 36 months.

The plans will be managed by Shobhit Mehrotra. Rakesh Vyas will be dedicated fund manager for overseas investments.

DSP BlackRock India T.I.G.E.R Fund announces dividend

Record date for dividend is 4 January 2013 

DSP BlackRock Mutual Fund has announced 4 January 2013 as the record date for declaration of dividend under Regular Plan – Dividend Option in DSP BlackRock India T.I.G.E.R Fund (The Infrastructure Growth and Economic Reforms Fund), an open ended equity growth scheme. The quantum of dividend will be Re. 0.50 per unit on the face value of Rs 10 per unit.

ICICI Prudential Mutual Fund renames discontinued plans

ICICI Prudential Mutual Fund has announced that following plans, which are discontinued for further subscription, are renamed as: 

Existing name: New name 

ICICI Prudential Flexible Income Plan Regular Daily Dividend: ICICI Prudential Flexible Income Plan Retail Daily Dividend 

ICICI Prudential Flexible Income Plan Regular Daily Dividend payout: ICICI Prudential Flexible Income Plan Retail Daily Dividend payout 

ICICI Prudential Flexible Income Plan Regular Growth: ICICI Prudential Flexible Income Plan Retail Growth 

ICICI Prudential Flexible Income Plan Regular Weekly Dividend: ICICI Prudential Flexible Income Plan Retail Weekly Dividend 

ICICI Prudential Flexible Income Plan Regular Weekly Dividend Payout: ICICI Prudential Flexible Income Plan Retail Weekly Dividend payout 

ICICI Prudential Long Term Plan Regular-Annual Dividend: ICICI Prudential Long Term Plan Retail-Annual Dividend 

ICICI Prudential Long Term Plan Regular-Annual Dividend payout: ICICI Prudential Long Term Plan Retail-Annual Dividend payout 

ICICI Prudential Long Term Plan Regular-Cumulative: ICICI Prudential Long Term Plan Retail- Cumulative 

ICICI Prudential Long Term Plan Regular-Quarterly Dividend payout: ICICI Prudential Long Term Plan Retail- Quarterly Dividend payout 

ICICI Prudential Long Term Plan Regular-Quarterly Dividend: ICICI Prudential Long Term Plan Retail- Quarterly Dividend 

ICICI Prudential Ultra Short Term Plan Regular Daily Dividend: ICICI Prudential Ultra Short Term Plan Retail Daily Dividend 

ICICI Prudential Ultra Short Term Plan Regular Fortnightly Dividend: ICICI Prudential Ultra Short Term Plan Retail Fortnightly Dividend 

ICICI Prudential Ultra Short Term Plan Regular Fortnightly Dividend Payout: ICICI Prudential Ultra Short Term Plan Retail Fortnightly Dividend Payout 

ICICI Prudential Ultra Short Term Plan Regular Growth: ICICI Prudential Ultra Short Term Plan Retail Growth 

ICICI Prudential Ultra Short Term Plan Regular Monthly Dividend: ICICI Prudential Ultra Short Term Plan Retail Monthly Dividend 

ICICI Prudential Ultra Short Term Plan Regular Monthly Dividend Payout: ICICI Prudential Ultra Short Term Plan Retail Monthly Dividend Payout 

ICICI Prudential Ultra Short Term Plan Regular Quarterly Dividend: ICICI Prudential Ultra Short Term Plan Retail Quarterly Dividend 

ICICI Prudential Ultra Short Term Plan Regular Weekly Dividend: ICICI Prudential Ultra Short Term Plan Retail Weekly Dividend 

ICICI Prudential Ultra Short Term Plan Regular Weekly Dividend Payout: ICICI Prudential Ultra Short Term Plan Retail Weekly Dividend Payout 

ICICI Prudential Ultra Short Term Plan Regular Quarterly Dividend Payout: ICICI Prudential Ultra Short Term Plan Retail Quarterly Dividend Payout 

ICICI Prudential Liquid Plan Growth: ICICI Prudential Liquid Plan Retail Growth 

ICICI Prudential Money Market Fund Growth: ICICI Prudential Money Market Fund Retail Growth

Reliance MF Floats Reliance Fixed Horizon Fund – XXII – Series 38

NFO Period from 1 January to 8 January 2013 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXII – Series 38, a close ended income scheme with the duration of 460 days from the date of allotment. During the New Fund Offer (NFO) the scheme will offer units at Rs 10 per unit. The new issue which is open for subscription from 1 January will close on 8 January 2013. 

The primary 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. 

The scheme offers two options viz. growth and dividend payout option. 

Reliance Fixed Horizon Fund – XXII – Series 38 will allocate upto 40% of assets in Money Market Instruments with low risk profile. On the other side it would allocate 60% to 100% of assets in Government Securities & debt instruments with low to medium risk profile. 

40% to 45% of net assets would be invested in AAA/A1+ rated non convertible debentures (NCDs) / bonds and 55% to 60% in AA rated NCDs / bonds. 

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index. 

The fund manager of the scheme will be Amit Tripathi.

SBI MF announces change in benchmark of SBI EDGE Fund

SBI Mutual Fund has announced change in benchmark of SBI EDGE Fund.

 Accordingly, the new benchmark is: 

BSE Sensex: 33% allocation 

Crisil Composite Bond Fund Index: 33% allocation 

Price of Gold: 33% allocation

UTI Fixed Income Interval Fund - Series II Quarterly Interval Plan VII announces dividend

Record date for dividend is 8 January 2013 

UTI Mutual Fund has announced 8 January 2013 as the record date for declaration of dividend under the dividend option of UTI Fixed Income Interval Fund - Series II Quarterly Interval Plan VII. The gross dividend will be 100% of distributable surplus as on record on the face value of Rs 10 per unit.

Birla Sun Life Mutual Fund announces change in key personnel

With effect from 3 January 2013 

Birla Sun Life Mutual Fund has announced change in key personnel. Mr. Rohit Murarka has been designated as the Key Personnel of BSLAMC in his capacity as Fund Manager for certain scheme of Birla Sun Life Mutual Fund. Mr. Rohit Murarka, 29 years old, holds educational qualifications of B.Com (H), MBA. He has overall experience of around 7 years with around 5 years of experience in the Financial Markets. Prior to this assignment he was the part of Investment Team for Portfolio Management (PMS) division for BSLAMC and also associated as part of research team for Birla Sun Life Mutual Fund division. Earlier he was associated with CRISIL Ltd. in the credit ratings division. He has done his MBA (Finance), from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai. 

Consequent to the internal realignment of role and responsibilities of Mr. Vinayak, Sr. Analyst-Fixed Income, he ceases to be a member of the Research Team of BSLAMC for schemes of Birla Sun Life Mutual Fund w.e.f January 03, 2013. 

Change in Fund Management Responsibilities: The Fund Management responsibilities of the Birla Sun Life Medium Term Plan, an open ended Income Scheme of Birla Sun Life Mutual Fund, have been reassigned and accordingly, Mr. Rohit Murarka shall be the designated fund manger for Birla Sun Life Medium Term Plan with effect from January 03, 2013.

DSP BlackRock FMP – Series 27 – 12M announces dividend and maturity

Record date for dividend & maturity is 7 January 2013 

DSP BlackRock Mutual Fund has announced 7 January 2013 as the record date for declaration of dividend in the dividend payout option of DSP BlackRock FMP – Series 27 – 12M, a close ended income scheme. The quantum of dividend will be up to 100% of distributable surplus as on record date, on the face value of Rs 10 per unit. 

Also the scheme would mature on 7 January 2013. The trading of the Units of the Scheme, which are listed on the Capital Market Segment of the Bombay Stock Exchange (BSE) are suspended and also no off-market transactions shall be permitted by the Depositories (NSDL / CDSL).

JPMorgan India Active Bond Fund announces change in exit load structure

With effect from 3 January 2013 

JP Morgan Mutual Fund has decided to modify the Exit load structure for JPMorgan India Active Bond Fund, an open ended income scheme. Accordingly, the revised exit load will be 

3% within 18 Months from the date of allotment in respect of Lump sum & SIP purchases. 

2% within 18 Months from the date of allotment in respect of Lump sum & SIP purchases and nil after 30 months from the date of allotment in respect of Lump sum & SIP purchases. 

The above mentioned load structure shall be applicable from the date of allotment of each instalment of SIP purchase. A switch-out or a withdrawal under SWP shall also attract an Exit Load like any Redemption. The above provisions shall be effective from January 3, 2013 and applicable on prospective investments only.

Gold imports, a huge drain on the Current Account

Government considering steps to make gold imports more expensive 

The Current Account Deficit, for the first half of the current year (2012-13) stood at US$ 38.7 billion or 4.6% of GDP. 

The main contributors to the CAD were 

• Exports recorded a sharp decline of 7.4%, while imports recorded a smaller decline of 4.3% leading to widening of the trade deficit. Of the imports, gold imports amounted to US$ 20.25 billion. 

• This was partly made up by an increase in services exports of 4.2% and, consequently, surplus in services which amounted to US$ 29.6 billion. 

• Remittances of US$ 32.9 billion. 

Notwithstanding the widening of the CAD, the positive aspect is that the CAD was financed without drawing on reserves. This was mainly due to adequate inflow of FDI (US$ 12.8 billion) and FII (US$ 6.2 billion). In addition, external commercial borrowing amounted to US$ 1.7 billion. The net result is that we have not drawn on the foreign exchange reserves and, in fact, there is a marginal accretion of US$ 0.4 billion to the foreign exchange reserves, said the Union Finance Minister Shri P.Chidambaram's. 

As would be evident, gold imports constituted a substantial chunk of the imports and is a huge drain on the Current Account. Suppose gold imports had been one half of the actual level that would have meant that our foreign exchange reserves would have increased by US$ 10.5 billion. I would therefore appeal to the people to moderate the demand for gold which leads to large imports of gold. I may add that we may be left with no choice but to make it a little more expensive to import gold. This matter is under Government's consideration, the minister added. 

While the CAD is indeed worrying, I think it is within our capacity to finance the CAD, thanks to FDI, FII and ECB. He further added “I would like to once again underscore the crucial importance of FDI and FII. As I have said before, attracting foreign funds to India has become an economic imperative. 

I am confident that even if the year ends with a slightly larger CAD than last year, we would be able to finance the Current Account Deficit without drawing upon reserves.”

Join Us @ http://www.facebook.com/MasterMindFinancialAdvisory