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Friday, March 29, 2013

PPF, savings schemes interest rates reduced by 0.1% from April 1

Millions of small savers and PPF account holders will earn less on their post office savings schemes, with the government deciding to reduce interest rates on them marginally by 0.10 per cent. The interest rate of Public Provident Fund (PPF) has been lowered from 8.8 per cent to 8.7 per cent with effect from April 1, 2013, said a Finance Ministry statement. However, the rates on savings deposit schemes and on fixed deposit of up to one year run by post offices has been kept unchanged at 4 per cent and 8.2 per cent, respectively. Further, Monthly Income Schemes (MIS) of 5 year maturity will earn an interest of 8.4 per cent. 

The National Savings Certificates (NSC) having maturity of five and 10 years will now attract 8.5 per cent and 8.8 per cent interest respectively, down 0.10 per cent each. The interest rates would be applicable for the entire 2013-14 fiscal. The rate for senior citizens savings scheme (SCSS) will now stand at 9.2 per cent, down from 9.3 per cent. The revision in interest rates follows a decision taken by government last year to link the small savings returns with the market rate. The new rates are required to be announced at the beginning of a financial year. The decision is in line with the recommendations of Shyamala Gopinath Committee, which had suggested that returns should be in sync with market rates determined by the returns offered by other securities.

The PPF corpus is tax-free at all three stages. The investment is eligible for tax deduction under Section 80C. The interest earned is also tax-free, and so are withdrawals. The original draft Direct Taxes Code, introduced in 2010, had proposed withdrawal of tax benefit. Though it would have been with prospective effect and existing investments would have been exempt, there was strong opposition to the move. The revised draft DTC nixed the proposal. However, with P Chidambaram back as finance minister, the original DTC proposals may come back in some form. PPF interest rate reduced to 8.7% from April 1.

Irda wants you to focus on health, worry less about claims

Arbitrary premium hikes and claim processing delays could soon be a thing of past, with the Insurance Regulatory and Development Authority (Irda) finalising norms on health Insurance to address these issues. These directives, which will come into effect from October 1, are expected to change many practices in the health insurance space. 

Some of the guidelines, like mandatory lifetime renewal and minimum entry age limit of 65 years, are already in place. However, a few new ones like prohibiting insurers from hiking renewal premiums simply because of a claim made in the previous year will definitely help many policyholders. Claim-based loading — an industry practice where renewal premiums are hiked when you make claims — is often a cause of heartburn for policyholders.

After October 1, insurers will not be allowed to load premiums arbitrarily — they will have to base it on preceding three years’ claims experience as also expected claims experience. The reasoning behind proposed pricing will have to be justified. "Loading will apply only when individual claims experience for three consecutive years is 500% of current year premium. So, the insurance company can apply loading only, if say, the current year premium is . 15,000 and claims for three consecutive years amount to over . 75,000," explains Mahavir Chopra, head of personal lines and e-business with health insurance consultancy firm medimanage.

Also, you will be informed about any change in premium or renewal terms three months in advance. "The ’Delayed claim settlement to attract interest’ clause will have to be added to policy document. Also, insurers cannot reject claims without a proper medical reason," says activist Gaurang Damani, who had filed a petition in the Bombay High Court that led to Irda to formulating health insurance guidelines. Policyholders exasperated with third party administrators’ functioning can also expect some relief.

The insurance company, and not the TPA, will now have to take on the responsibility of settling or rejecting the claim. "TPA cannot settle claims, but only process claim. This will have a great impact, as only insurance companies can settle claims now. In cases where third-party administrators (TPA) issued cheques for claims, often, payments used to get delayed. Also, it was difficult to ascertain whether the TPA had handed over the entire claim amount approved by the insurer to the policyholder," says Damani.

This apart, the regulator has also sought to standardise definitions of certain terms, critical illnesses and exclusion among other things. "Policyholders will surely benefit due to the reduction in ambiguity of the various terms used by the different insurers leading to fewer disputes between them and the insurers. It also educates customers and reduces chances of their being taken for a ride by unscrupulous health care providers ," says Amarnath Ananthanarayan , CEO & MD, Bharti-AXA General Insurance.

Standardisation of norms
Given the voluminous policy documents and complicated language that policyholders have to deal with, it is hardly surprising that very few go through them. Besides, due to the ambiguity , clauses are open to interpretation , resulting in disputes. Therefore , Irda has come up with standard definitions for certain terms. "The standard definition has been prescribed for the 45 most common terms used in health insurance — such as day care treatment, hospital, inpatient care, pre-existing disease etc — that will help in reducing different interpretation by various stakeholders ," says Antony Jacob, CEO, Apollo Munich.

Henceforth, all insurers will have to stick to these definitions in their policy documents. Irda has also defined 11 critical illnesses that are covered under various policies. "Defining critical illnesses will reduce disappointment at the claims stage on the coverage norms and exclusions under each critical illness. This should certainly avoid confusion among consumers and industry," says Ramesh Ramani, senior vice-president , consumer lines, Tata-AIG General.

Common list of exclusions
As one of the chief causes for disputes is exclusions, the insurance regulator has finalised a list of expenses the insurance companies need not pay for. "The standardisation will reduce the disputes between the customers and the industry companies with respect to what is covered under an insurance policy, and therefore, payable as a claim," says Ananthanarayan. Irda has put out a list of 199 items and has indicated whether they are admissible or not. "The interpretation of the excluded items has been different at every stage by every stakeholder . Standardising the interpretation will ensure clarity. Policy coverage hasn’t been defined and has been left to the insurers. If the insurers wish to include these as part of the hospitalisation expenses in their product design , they are free to do so," adds Ramani.

Uniform claim forms
Yet another step towards eliminating confusion, this measure could come to the aid of policyholders at the most critical stage — at the time of making claims. "Standard pre-authorisation (for cashless claims) and claim form will significantly streamline processes at every stage. By implementing it in an optical character recognition (OCR) format, the ability to transfer data from a handwritten paper-based form to IT systems has been enhanced , thus reducing data entry issues for TPAs and insurers. This will help in reducing the turnaround time and hence result in swifter claim settlements," says Jacob. 


source: ET

Franklin India Opportunities Fund announces change in fund manager

With effect from 1 April 2013 

Franklin Templeton Mutual Fund has announced that Mr Chakri Lokapriya, fund manager, will cease to be a part of Franklin Templeton AMC effective close of business hours of 28 March 2013. 

Consequently, the fund manager of the scheme Franklin India Opportunities Fund will change as follows effective 01 April 2013. 

New fund managers: Mr R. Janakiraman & Mr Anil Prabhudas

Canara Robeco Agribusiness Fund Files Offer Document With Sebi

An open ended Equity Scheme 

Canara Robeco Mutual Fund has filed offer document with Sebi to launch Canara Robeco Agribusiness, an open ended equity scheme. The New Fund Offer price is Rs 10 per unit. 

Investment objective: The investment objective of the fund would be to generate long term capital appreciation from a diversified portfolio of companies focusing on food & agricultural space. However, there can be no assurance that the investment objective of the scheme will be realized. 

Options: The Scheme offers Growth Option and Dividend Option (Dividend Re-investment and Dividend payout) 

Benchmark: The scheme's performance will be benchmarked against the S&P BSE 500.
Loads: Entry Load – Nil 

Exit Load: 1%- for all amounts if redeemed / switched-out within 1 year from the date of allotment. 

Minimum Application Amount: Rs. 5,000.00 and multiples of Re.1.00 thereafter 

Minimum Target Amount: Rs. 10 crores 

Asset Allocation: The scheme shall invest 65%-100% in units of Equity and Equity related instruments of Companies in Food & Agriculture space. Invest upto 35% will be invested in Equity & equity related instruments of Companies other than the above and shall invest upto 35% in domestic debt and money market instruments. 

Fund Manager: Mr Ravi Gopalakrishnan

Tata Balanced Fund announces dividend

Record date for dividend is 03 April 2013 

Tata Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under Plan A (Monthly dividend option) and Direct Plan (Monthly dividend option) of Tata Balanced Fund. The amount of dividend under each plan will be Rs 0.35 per unit on the face value of Rs 10 per unit.

Tata Fixed Maturity Schemes announces dividend

Record date for dividend is 03 April 2013 

Tata Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under periodic dividend of three fixed maturity schemes: Tata Fixed Maturity Plan Series 39 Scheme G, Tata Fixed Maturity Plan Series 39 Scheme H and Tata Fixed Maturity Plan Series 40 Scheme A. The amount of dividend under each scheme will be entire distributable surplus on the face value of Rs 10 per unit.

Religare Mutual Fund announces dividend under two schemes

Record date for dividend is 03 April 2013 

Religare Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under dividend option of Religare Fixed Maturity Plan-Series XIII-Plan D (386 Days) and Religare Fixed Maturity Plan-Series XIV-Plan A (373 Days), close ended debt schemes. The amount of dividend (upto) will be entire distributable surplus as on the record date on the face value of Rs 10 per unit. 

Further, 03 April 2013 as been fixed as the record date for the purpose of determining the eligible unit holders holding units of the schemes who would be entitled to the maturity/redemption proceeds on the maturity/final redemption date of schemes, which is 03 April 2013.

IDBI Mutual Fund announces dividend under various schemes

Record date for dividend is 03 April 2013 

IDBI Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

IDBI Dynamic Bond Fund-Quarterly Dividend (Regular Plan)-0.39 

IDBI Monthly Income Plan-Quarterly Dividend (Regular Plan) & IDBI Monthly Income Plan-Quarterly Dividend (Direct Plan)-0.21 each 

IDBI Gilt Fund- Quarterly Dividend (Regular Plan) & IDBI Gilt Fund -Quarterly Dividend (Direct Plan)-0.15 each

Reliance Interval Fund-Quarterly Interval Fund Series I announces dividend

Record date for dividend is 03 April 2013 

Reliance Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under the dividend option and Institutional Plan-dividend option of Reliance Interval Fund-Quarterly Interval Fund Series I. The amount of dividend will be Rs 0.1842 per unit under each option on the face value of Rs 10 per unit.

Birla Sun Life Fixed Term Plan - Series FC annoucnes dividend

Record date for dividend is 03 April 2013 

Birla Sun Life Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under the dividend option of Birla Sun Life Fixed Term Plan - Series FC. The amount of dividend will be Rs 0.1000 per unit on the face value of Rs 10 per unit. 

Further, unitholders under Birla Sun Life Fixed Term Plan - Series FC are requested to note that as per provisions of Scheme Information Document of the scheme, the maturity date of the scheme shall be April 03, 2013. Accordingly, trading of units of the scheme will automatically get suspended on the stock exchange(s), where units of the said scheme are listed, with effect from April 01, 2013.

Reliance Fixed Horizon Fund XXI Series 11, Series 17 and Series 18 announces dividend

Record date for dividend is 03 April 2013 

Record date for dividend is 03 April 2013 Reliance Mutual Fund has announced 03 April 2013 as the record date for declaration of dividend under the dividend payout options of Reliance Fixed Horizon Fund XXI Series 11, Series 17 and Series 18. The amount of dividend (Rs per unit) will be entire distributable surplus available in the scheme as on the record date on the face value of Rs 10 per unit.

ICICI Prudential Mutual Fund announces dividend under various schemes

Record date for dividend is 01 April 2013 

ICICI Prudential Mutual Fund has announced 01 April 2013 as the record date for declaration of dividend under the following schemes. The recommended rate of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

ICICI Prudential Fixed Maturity Plan Series 62-396 Days Plan F-Dividend Option, ICICI Prudential Fixed Maturity Plan Series 63-384 Days Plan A, ICICI Prudential Fixed Maturity Plan Series 63-378 Days Plan I, ICICI Prudential Fixed Maturity Plan Series 63-376 Days Plan J, ICICI Prudential Fixed Maturity Plan Series 63-1 Year Plan E and ICICI Prudential Fixed Maturity Plan Series 63-370 Days Plan D -Dividend Option -Dividend Option -Dividend Option: 0.05 each ICICI Prudential Fixed Maturity Plan Series 51-3 Years Plan F-Dividend Option: Entire distributable surplus

Deutsche Mutual Fund announces dividend two fixed maturity schemes

Record date for dividend is 02 April 2013 

Deutsche Mutual Fund has announced 02 April 2013 as the record date for declaration of dividend under the dividend options of DWS Fixed Maturity Plan Series 7 and DWS Fixed Maturity Plan Series 10. The gross dividend rate will be 100% of distributable surplus under each series on the face value of Rs 10 per unit. 

Further, 02 April 2013 has been fixed as the record date for the purpose of determining the eligible unit holders of the scheme who would be entitled to the maturity/redemption proceeds on the maturity date of the scheme. 

The trading of the units which are listed on the NSE will be automatically suspended with effect from 01 April 2013.

Monday, March 25, 2013

Irda fast-tracks product approval

Panel to review existing norms also on the anvil

 With T S Vijayan firmly in saddle, the Insurance Regulatory and Development Authority (Irda) is hard at work to expedite product approvals. The regulator has promised to give insurance companies product approvals within 10 days. The plan involves doing away with the practice of communicating through letters – a major reason for delays – and getting queries whatsoever answered over telephone. “The regulator has promised for quick approvals of products, given that we need to re-file the whole product basket to comply with new regulations. They have already started getting product feature related queries through telephonic conversations,” said a senior industry official privy to the developments.

 Some pure insurance and other traditional plans complying with the new set of guidelines are set to get approval in a week’s time, the official said. “All have started filing products soon after the guidelines got approved by Insurance Advisory Council. Now, it is expected to get the clearance soon,” said another industry official Irda rolled out the new norms for product design earlier this month. The guidelines have stipulated short deadlines of July and October 2013 for insurers to withdraw the existing products and float new sets of products. By and large, the new portfolios of insurers will have 50% traditional plans and 30% unit-linked plans, with others bringing up the rest.

Meanwhile, following a representation given by the industry through Life Insurance Council that convened last Thursday, the regulator is also considering setting up a four-member committee to review some provisions in the existing regulation that could hit the players. These include reviewing the commission structure for the sales through the bancassurance channel, including ‘credit life’ products, or policies which are bundled with loans given by banks. Currently, the commission payable to banks is capped at `50,000, which hurts companies having more than one promoter bank. 


source: DNA

BNP Paribas Mutual Fund announces change in names of benchmarks

BNP Paribas Mutual Fund has announced change in names of benchmarks. Accordingly, the revised benchmark names will be: 

BNP Paribas Equity Fund: CNX Nifty 

BNP Paribas Dividend Yield Fund: S&P BSE Sensex 

BNP Paribas Tax Advantage Plan (ELSS): S&P BSE 200

IDFC Mutual Fund announces dividend under two schemes

Record date dividend is 28 March 2013 

IDFC Mutual Fund has announced 28 March 2013 as the record date for declaration of dividend under two schemes. The quantum of dividend on face value of Rs 10 per unit will be: 

IDFC Fixed Maturity Plan Yearly Series 66-Quarterly Dividend Option: Entire distributable surplus as on record date i.e. 28 March 2013 

IDFC Equity Fund-Regular Plan-Dividend Option: Rs 0.50 per unit

BOI AXA Fixed Maturity Plan – Series 3 Floats On

NFO remains open only on 25 March 2013 

BOI AXA Mutual Fund has launched a new fund named as BOI Axa Fixed Maturity Plan – Series 3, a close-ended income scheme. The New Fund Offer price is Rs 10 per unit. The tenure of the scheme will be 367 days from the date of allotment. The new issue will open for subscription only on 25 March 2013. 

Investment objective: The investment objective of the Scheme(s) is to generate income by investing in a portfolio of fixed income and money market instruments maturing on or before the maturity date of the Scheme. 

Options: The scheme offers Regular Plan and Direct Plan. Both Regular Plan and Direct Plan offer Growth Option and Dividend Payout Option. 

Benchmark: CRISIL Short Term Bond Fund Index 

Loads: Entry and exit load are nil 

Minimum Application Amount: Minimum initial investment is Rs.5000/- per application and in multiples of 1/- thereafter. 

Minimum Target Amount: Rs 20 crore 

Asset Allocation: The scheme shall invest upto 50%-100% in Money Market Instruments with low risk profile and invest upto 50% in Debt with low to medium risk profile. 

Fund Manager: Alok Singh will manage the fund.

DSP BlackRock Mutual Fund announces change in nomenclature of the Benchmark of certain Schemes

DSP BlackRock Mutual Fund has announced change in nomenclature of the benchmark of certain schemes. Accordingly, the revised nomenclature of the benchmark will be: 

DSP BlackRock Focus 25 Fund: S&P BSE Sensex Index 

DSP BlackRock India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund): S&P BSE 100 Index 

DSP BlackRock Micro Cap Fund: S&P BSE Small Cap Index 

DSP BlackRock Natural Resources and New Energy Fund: 35% S&P BSE Oil & Gas Index, 30% S&P BSE Metal Index, 35% MSCI World Energy (net as expressed in INR) 

DSP BlackRock Top 100 Equity Fund: S&P BSE 100 Index 

DSP BlackRock Technology.com Fund: S&P BSE TECk Index 

DSP BlackRock RGESS* Fund – Series 1 (A close ended equity scheme which shall invest in eligible securities as per *Rajiv Gandhi Equity Savings Scheme, 2012): S&P BSE 100 Index 

DSP BlackRock Opportunities Fund: CNX 500 Index 

DSP BlackRock Equity Fund: CNX 500 Index 

DSP BlackRock Tax Saver Fund: CNX 500 Index

L&T MF Floats 367 Days Fund

NFO period is from 22 March to 25 March 2013 

L&T Mutual Fund has launched a new fund named as L&T FMP – VII (March 367D B), a close ended income scheme having a tenor of 367 Days. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue which is open for subscription from 22 March closes on 25 March 2013. 

The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of debt / fixed income securities maturing on or before the maturity of the scheme. 

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

The scheme would allocate its entire corpus in debt instruments and money market instruments with low to medium risk profile. Debt instruments may include exposure in derivatives, either exchange traded or OTC which can be upto 50% of net assets as permitted by SEBI regulations. 

95% to 100% of assets would be invested in AAA/A1+ or equivalent rated CDs and invest 0%-5% in AAA/A1+ or equivalent rated Government Securities/ Treasury Bills/ CBLO/ Reverse Repos having collateral as Government securities. 

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 the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on NSE on allotment. 

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

The scheme will be managed by Mahesh Chhabria and Shobheta.

Kotak Mutual Fund Launches Fixed Maturity Plan Series 101

NFO closes on 25 March 2013 

Kotak Mutual Fund has launched a new fund named as Kotak FMP Series 101 – 371 Days, a close ended debt scheme with the duration of 371 days from the date of allotment of units. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 21 March and closes on 25 March 2013. 

The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. 

The scheme will allocate its entire corpus in debt and money market instruments with low to medium risk profile. 

85% to 90% of net assets would be invested in AAA rated CPs and upto 5% in AAA rated CDs. 

The scheme offers growth and dividend payout option. 

Exit load charge will be nil for the scheme. The units of the scheme will be listed on BSE on allotment. 

The scheme's performance will be benchmarked against Crisil Short Term Bond Index. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 for purchase and switch-ins. 

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

The scheme will be managed by Abhishek Bisen and Mayank Prakash.

DSP BlackRock FMP – Series 94 – 12 M Floats On

NFO remains open only on 25 March 2013 

DSP BlackRock Mutual Fund has launched a new fixed maturity plan named as DSP BlackRock FMP – Series 94– 12 M, a close-ended income scheme with the duration of 12 months from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will open for subscription only on 25 March 2013. 

The primary investment objective of the scheme is to seek to generate returns and capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the scheme. 

The scheme offers a choice of two options, growth option and dividend payout option. 

The scheme would allocate upto 100% of assets in debt securities and money market securities with low to medium risk profile. 

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

Entry and exit load charge will be nil for the scheme. Units of the scheme are proposed to be listed on Bombay Stock Exchange. 

Benchmark Index for the scheme is Crisil Short Term Fund Index. 

The scheme will be managed by Dhawal Dalal.

SBI Mutual Fund announces dividend under two schemes

Record date dividend is 28 March 2013 

SBI Mutual Fund has announced 28 March 2013 as the record date for declaration of dividend under the divided options of two schemes. The quantum of dividend on face value of Rs 10 per unit will be: 

SBI Magnum Taxgain Scheme-1993-Regular Plan-Dividend Option: Rs 3.50 per unit 

SBI Debt Fund Series-367 Days-19: Entire distributable surplus as on record date
Further, SBI Debt Fund Series-367 Days-19 would mature on 28 March 2013 and accordingly, units shall be suspended from trading on BSE.

Reliance MF Floats Reliance Fixed Horizon Fund – XXIII – Series 6

NFO Period from 21 March to 25 March 2013 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXIII – Series 6, a close ended income scheme with the duration of 366 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 will be open for subscription from 21 March and will close on 25 March 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, dividend payout option, direct plan – growth option and direct plan – dividend payout option. 

The scheme 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. 

95% to 100% of net assets would be invested in AAA/A1+ rated CDs and 5% in AAA/A+ rated CPs. 

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.

Reliance MF Floats Reliance Fixed Horizon Fund – XXIII – Series 8

NFO Period from 19 March to 25 March 2013 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXIII – Series 8, a close ended income scheme with the duration of 1104 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 will be open for subscription from 19 March and will close on 25 March 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, dividend payout option, direct plan – growth option and direct plan – dividend payout option. 

The scheme 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. 

80% to 85% of net assets would be invested in AA rated non convertible debentures (NCDs) / bonds and 15% to 20% in A 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.

Reliance MF Floats Reliance Fixed Horizon Fund – XXIII – Series 9

NFO Period from 25 March to 26 March 2013 

Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund – XXIII – Series 9, a close ended income scheme with the duration of 371 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 will be open for subscription from 25 March and will close on 26 March 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, dividend payout option, direct plan – growth option and direct plan – dividend payout option. 

The scheme 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. 

95% to 100% of net assets would be invested in AAA/A1+ rated CDs and 5% in AAA/A+ rated CPs.

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.

Religare Fixed Maturity Plan – Series XVIII – Plan E Floats On

NFO period is from 22 March to 25 March 2013 

Religare Mutual Fund has launched a new fund named as Religare Fixed Maturity Plan – Series XVIII – Plan E (374 Days), a close ended debt scheme. The tenure of the scheme is 374 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription on 22 March and closes on 25 March 2013. 

The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments maturing on or before the date of maturity of the scheme. 

The scheme offers growth & dividend payout option. 

The scheme shall invest its entire corpus in debt instruments and money market instruments 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 the scheme during the NFO period. 

Entry and exit load charge for the scheme will be nil. The scheme will be listed on the NSE.

Benchmark Index for the scheme will be CRISIL Short Term Bond Fund Index. 

Nitish Sikand will be the Fund Manager for the scheme.

Tata Fixed Maturity Plan Series 42 E Floats On

NFO period is from 25 March to 03 April 2013 

Tata Mutual Fund has launched a new fund named as Tata Fixed Maturity Plan Series 42 Scheme E, a close-ended debt scheme with the duration of 368 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue which is open for subscription from 25 March will close on 03 April 2013 

The investment objective of each scheme is to generate income and / or capital appreciation by investing in wide range of Debt and Money Market instruments having maturity in line with the maturity of the respective schemes. 

The scheme offers growth option and periodic dividend option (payout). 

The schemes shall invest upto 100% of assets in debt and money market instruments with low to medium risk profile. 

The minimum application amount is Rs 10,000. 

The fund seeks to collect a minimum subscription amount of Rs 40 crore under the scheme during the NFO period. 

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

Benchmark Index for the scheme is Crisil Short Term Bond Fund Index 

The fund manager for the scheme will be Amit Somani.

Union KBC Fixed Maturity Plan – 374 Days - Series 5 Floats On

NFO period is from 22 March to 25 March 2013 

Union KBC Mutual Fund has launched a new fund named as Union KBC Fixed Maturity Plan – 374 Days - Series 5, a close ended income scheme. The duration of the scheme is 374 days from date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.

The new issue will be open for subscription from 22 February and will close on 25 March 2013 

Investment objective: The investment objective of the scheme is to seek to generate income / capital appreciation by investing in a portfolio of debt and money market instruments maturing on or before the maturity of the scheme. 

Options offered: The scheme offers growth and dividend payout option. 

Benchmark Index: CRISIL Short Term Bond Fund Index. 

Load: Entry and exit load will be nil for the scheme. The units of the scheme are proposed to be listed on the National Stock Exchange or any other recognized stock exchange as may be approved by the Trustee. 

Minimum Application Amount: Rs. 10,000 and in multiples of Rs. 1 thereafter. 

Minimum Targeted Amount: The Mutual Fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO Period. 

Asset Allocation: The scheme will invest upto 100% of assets in debt instruments and money market instruments with low to medium risk profile. Investment in securitized debt would be upto 25% of net assets of the scheme. 

Fund Manager: The scheme will be managed by Devesh Thacker.

BNP Paribas Mutual Fund announces dividend under various schemes

Record date for dividend is 28 March 2013 

BNP Paribas Mutual Fund has announced 28 March 2013 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) will be: 

BNP Paribas Short Term Income Fund: 

Regular quarterly dividend: 0.2436
Quarterly dividend: 0.2291 
 Direct plan-quarterly dividend: 0.2079 

BNP Paribas Flexi Debt Fund: 

Regular A plan-quarterly dividend: 0.5362
Quarterly dividend: 0.3545
Direct plan-quarterly dividend: 0.3227
Half yearly dividend: 0.5961
Direct plan-half yearly dividend: 0.6057 

BNP Paribas Bond Fund: 

Regular quarterly dividend: 0.2129
Quarterly dividend: 0.2253
Direct plan-quarterly dividend: 0.1924
Regular plan-annual dividend: 0.9373
Direct plan-annual dividend: 0.1325 

BNP Paribas Monthly Income Plan: 

Quarterly dividend: 0.2655
Direct plan-quarterly dividend: 0.2707 

BNP Paribas Dividend Yield Fund & BNP Paribas Dividend Yield Fund-Direct plan: 0.0800 under each plan

Edelweiss Mutual Fund announces change in name of benchmark index

Edelweiss Mutual Fund has announced change in the nomenclature of applicable benchmark indices of various schemes. The revised nomenclatures are as under: 

Edelweiss Diversified Growth Equity Top 100 (E.D.G.E. Top 100) Fund: CNX Nifty 

Edelweiss Equity Enhancer Fund: CNX Nifty 

Edelweiss ELSS Fund: CNX 500 

Edelweiss Select Midcap Fund: S&P BSE MidCap

Reliance Fixed Horizon Fund XXI Series 12 announces dividend

Record date for dividend is 28 March 2013 

Reliance Mutual Fund has announced 28 March 2013 as the record date for declaring dividend under the dividend payout option of Reliance Fixed Horizon Fund XXI Series 12. The dividend per unit will be the entire distributable surplus available in the scheme as on the record date on the face value of Rs. 10 per unit.

IRDA Permits Insurers to invest in Category I Alternative Investment Funds

The IRDA has permitted insurers to invest in Alternative Investment Funds subject to the following: 

A. The investments in Category I Alternative Investment Funds are permitted under the Head “Other Investments”. Further, such Investments should be restricted to Infrastructure Funds and SME Funds as defined in the Alternative Fund Regulations.
As per the Alternative Fund Regulations, Category I Alternative Investment Fund invests in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME funds, social venture funds, infrastructure funds and such other Alternative Investment Funds as may be specified under the Alternative Investment Fund Regulations. 

B. Insurers should ensure that such Category I Funds should not invest in securities of companies incorporated outside India as Insurers are prohibited for investment of funds outside India vide sec. 27C of the Insurance Act, 1938. 

C. The sponsor of such Alternative Investment Fund should not be in the promoter group of the Insurer. 

D. The Fund shall not be managed by an Investment Manager who is either directly or indirectly controlled or managed by the Insurer or its promoters. 

E. The Investments in Alternative Investment Funds should be clubbed with the investments in Venture Funds and reported to the Authority in the quarterly Investment returns under the category code ‘OVNF'. 

F. Investment in the Alternative Investment Fund along with the existing investments in Venture Funds shall be subject to the following exposure norms.

Saturday, March 23, 2013

Deutsche Mutual Fund announces dividend under various schemes

Record date for dividend is 28 March 2013 

Deutsche Mutual Fund has announced 28 March 2013 as the record date for the declaration of dividend under various fixed term schemes. The gross dividend (Rs per unit) on the face value of Rs. 10 per unit will be: 

DWS Fixed Term Fund Series 91 – dividend option, DWS Fixed Term Fund Series 93 – dividend option, DWS Fixed Term Fund Series 96 – dividend option, DWS Fixed Maturity Plan Series 4 – dividend option, DWS Fixed Maturity Plan Series 14 – dividend option, DWS Hybrid Fixed Term Fund – Series 1 – dividend option, DWS Hybrid Fixed Term Fund – Series 9 – Annual Dividend, DWS Hybrid Fixed Term Fund – Series 9 – Quarterly Dividend, DWS Hybrid Fixed Term Fund – Series 10 – Annual Dividend, DWS Hybrid Fixed Term Fund – Series 10 – Quarterly Dividend, DWS Hybrid Fixed Term Fund – Series 8 – Annual Dividend, DWS Hybrid Fixed Term Fund – Series 8 – Quarterly Dividend : 0.2000 under each plan 

DWS Hybrid Fixed Term Fund – Series 7 – Annual Dividend and DWS Hybrid Fixed Term Fund – Series 7 – Quarterly Dividend: 0.3000 under each plan 

Accordingly, the trading on the units of the above schemes which are listed on NSE will be automatically suspended with effect from 26 March 2013 and the suspension will be withdrawn with effect from 01 April 2013.

ICICI Prudential Fixed Maturity Plan – Series 67 – 366 Days extends NFO period

NFO extended to 25 March 2013 

ICICI Prudential Mutual Fund has announced the extension of NFO for the ICICI Prudential Fixed Maturity Plan – Series 67 – 366 Days scheme. The NFO period has been extended to 25 March 2013.

HDFC FMP 366D March 2012 (1) announces dividend

Record date for dividend is 28 March 2013 

HDFC Mutual Fund has announced 28 March 2013 as the record date for the declaration of dividend under the normal and quarterly dividend options of HDFC FMP 366D March 2012 (1). The amount of dividend per unit will be the distributable surplus as reduced by applicable statutory levy on the face value of Rs. 10 per unit.

ICICI Prudential mutual fund announces dividend under two schemes

Record date for dividend is 28 March 2013 

ICICI Prudential Mutual Fund has announced 28 March 2013 as the record date for the declaration of dividend under two schemes. 

The amount of dividend will be Rs. 0.05 per unit under the dividend option of ICICI Prudential Fixed Maturity Plan Series 63 – 1 Year Plan C. 

Rs. 0.1290 under the half yearly direct plan of ICICI Prudential Regular Savings Fund and Rs. 0.4068 under the half yearly regular plans of ICICI Prudential Regular Savings Fund. 

ICICI Prudential Fixed Maturity Plan Series 63 – 1 Year Plan C matures on 28 March 2013 and accordingly trading in the units which are listed on BSE will automatically be suspended from trading from the close of trading hours on 24 March 2013. The record date for determining eligible unit holders who would be entitled to redemption proceeds will be 28 March 2013

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