MASTER MIND FINNASSET

Monday, February 14, 2011

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.

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