Saturday, November 24, 2007

Mutual Fund Strategies - India -2007

Lotus India AMC launches Quant based ELSS Scheme

Lotus India AMC has launched India?s first Quant based ELSS Scheme: Lotus India AGILE Tax Fund (Alpha Generated from Industry Leaders Fund). The investment objective of this scheme is to generate capital appreciation by investing in a passive portfolio of stocks selected from the industry leaders on the basis of a mathematical model designed by the LIAMC Team.

The New Fund Offer priced at Rs 10 per unit opens for purchase on November 15, 2007 and closes February 15, 2008. The fund will invest 90-100% in equity and equity related instruments and 0-10% in debt and money market instruments. The fund offers two options i.e. Growth and Dividend. The Dividend option offers Dividend Payout and Dividend Re-investment facilities. Investments made under this scheme will have a lock-in for a period of 3 years.

Lotus India Agile Tax Fund is a Closed Ended Equity Linked Savings Scheme with a maturity of 10 years that will invest in 11 stocks (9% each) determined by a mathematical model. The portfolio will be reviewed and reset every month.

Speaking on the occasion of the launch, Ajay Bagga, Chief Executive Officer, Lotus India AMC said, ?We had pioneered the Quant fund segment in India with the launch of the Lotus India Agile Fund, a first of its kind product in the Indian asset management industry.

Nov 18 2007

Taurus to launch country’s first Islamic mutual fund

Launched in 1994, Taurus Asset Management Company was initially promoted by IFC Washington and Lazard India Ltd. In 1999, it was bought out by Delhi-based HB Group, which merged its HB Mutual Fund with Taurus later.

The country is likely to get its first Islamic mutual fund soon, as Taurus has approached capital market regulator Sebi to launch such a product based on Shariat laws.

we expect to mop up Rs500 crore from Taurus Parasoli Ethical Fund,” Taurus Mutual Fund managing director, R K Gupta, told.

Detailing the features of the five-year closed-end fund, Gupta said it would invest in shariat-compliant stocks, whose underlying companies aren’t engaged in businesses that are banned by the Islamic laws.

He claimed 71 stock in BSE-100 and 366 stocks in BSE-500 are Shariat-compliant.

Gupta said the product was likely to attract non-Muslims also, since the concept was quite business-like.

Since interest income is banned under Shariat laws, Taurus would furnish quarterly disclosure of income, breaking it up into interest income and capital appreciation.
Those who do not want the interest can donate it to Zakat, which is an obligation on Muslims to pay part of their income to specified charities to uplift poor, the destitute and so on.

This break-up would also enable subscribers to understand operating income of companies in the underlying stocks better, and they would be more comfortable making judgements about stocks, Gupta said.

Parsoli Corporation Ltd, a Mumbai-based firm, would advise Taurus AMC about the Shariat-compliant stocks and assist the fund house in marketing the product. But it would be entirely up to Taurus to decide on investment in these stocks.

Every three months, Taurus would send a report of investments in these stocks to a Shariat board, consisting of three eminent Islamic scholars, Gupta said. If any stock is found to be non-compliant with the Shariat, Taurus would have three months to withdraw those investments.

Gupta said the company also plans to introduce three more products, including one diversified equity scheme for NRIs. Taurus would come out with a new marketing strategy for these funds.

While Taurus expects to launch the Islamic Fund and one more fund this fiscal, two more funds may be introduced in the next fiscal, he said.

India's third largest mutual fund ? UTI, is looking to raise nearly USD 1.5 billion dollars through its forthcoming IPO.

UTI mutual funds is all set to be India's first listed asset management company. It has roped in seven investment bankers - Citi, JM Financial, Enam, UBS, Goldman Sachs, SBI Capital and ICICI Securities. It is a two-part process.

First, UTI will raise funds through a pre-IPO placement, which will expand its equity by 20%. But no single investor will hold more than 5%.

The pre-IPO placement will help UTI raise about Rs 2,000-3,000 crore, which will be used for expansion plans.

"We are now going to raise a third fund. For that, we need seed capital and for that, we need money. We are also going to float an infrastructure PE fund of USD 500 million, for which we are looking for partners. But we need money for that. We are also planning branch expansion,? said U K Sinha, CMD, UTI MF.

By March ?08, UTI plans to double its branches to 150 and raise this to 300 branches over the next year.
Tata Mutual Fund has made it to the top 50 service brands in India alongside service brands like SBI, LIC, Taj Hotels, IIT, and IIM in the prestigious "Economic Times Brand Equity Annual Survey 2007". This survey covered 13 cities and included all service categories (financial services, hotels, telecom, airlines, education, etc.). Tata Mutual Fund is ranked fourth amongst all mutual fund brands.


June 2007

With Sebi’s refusal for relaxation on PAN front, fund houses are now planning an aggressive strategy to bring about an awareness among retail investors to have PAN, alpha-numeric tax assessment number of issued by the Income Tax department, from next month.
In fact, as many as 30 mutual fund houses have also joined hands for a ‘KYC (know your client) project’ with CDSL Ventures (CVL) to collect and maintain a common data of mutual fund investors such as their name, address and PAN.

SIP for just Rs 50 thanks to ICICI Pru AMC

April 2007

The competition in the mutual fund industry is getting hotter with ICICI Prudential Asset Management Company offering Rs 50 per month as the minimum investment amount in its Systematic Investment Plan (SIP).

That will make it the lowest in the industry with Reliance Mutual Fund last week reducing the minimum investment in SIP to Rs 100 per month.

Both fund houses claim the measure will help an increased number of investors to benefit from investing in mutual funds.

The minimum redemption amount where SIP is available will be Rs 500 and an entry load of 2.25 per cent of the applicable Net Asset Value will be charged. The exit load will be variable as per the amount invested and the duration of the scheme. Units under the Micro-SIP will be issued only under the growth option.

Other mutual fund managers had dubbed the move as expensive for the fund houses as it would increase the cost of servicing the accounts. Also, fund managers said small investments in equity markets will expose the investors to higher risks.

Currently, other fund houses in the industry are offering minimum investments in SIP between Rs 500 and Rs 1,000.
Reliance MF crosses the 1 million investor mark
Feb 2006

Reliance MF crosses the 1 million investor mark

Over the last three years, the investor base of Reliance Mutual Fund has grown over 23 times - from 43,392 investors in January 2003 to 10,07,753 investors today.

If it is NFOs that help build assets then, UTI AMC has decided to take the plunge. UTI Mutual Fund has created a team of six young people nicknamed as 'Factory' to churn out ideas for new funds.UTI will use NFO as a strategy to mop up more money from the market. UTI's new head, UK Sinha told that the team is supposed to generate atleast 10 new ideas everyday.

UK Sinha, CMD, UTI Mutual Fund said "UTI's aim would be to reach retail investors. We will be bringing out largest number of products. Those products will have a niche for the different sectors of investing."

Last year UTI launched just one scheme,UTI Dividend Yield Fund which raised more than Rs 700 crore, while this year its UTI Leadership Equity Fund has mobilised Rs 2000 crore.

Currently UTI AMC's assets stand at Rs 25,400 crore, while that of Pru ICICI, which ranks second are Rs 22,600 crore. The fund house will take the most popular way of raising money through NFOs as it helps to create a buzz and mobilise more assets.

UTI MF wants to work on themes and fund types that would appeal to mass as well as class. UTI AMC plans to make most of the current NFO mania, especially when each NFO is receiving record sums and investor applications.

Feb 2006
Quantam AMC launches maiden scheme

Quantum Asset Management Company Pvt Ltd has announced its entry into the Indian mutual fund industry by launching its first scheme `Quantum Long Term Equity Fund', an open ended equity-scheme.

Quantum Asset Management Company is the 29th fund house in the country.

Addressing the media, Ajit Dayal, Director, Quantum Mutual Fund, said the AMC would have a bouquet of products including a debt scheme over a period of time in India. The `Quantum Long Term Equity Fund' will select from 235 companies, in which the average daily trading volume is Rs 4.5 crore. (Check out - Upcoming MF Offers)

The new fund offer will have a portfolio of 25-40 stocks, mainly from sectors such as domestic consumption, exports and infrastructure, said IV Subramaniam, Senior Fund Manager & Head (Research), Quantum Mutual Fund.

The offer, which commenced on February 8, 2006, will close on February 25.

Dayal said the Quantum Long Term Equity Fund will aim to give patient investors, with a long-term investment philosophy, a channel which performs when markets gain ground (the upside) and yet, aims to limit the downside of a declining market by a judicious mix of buying `value' stocks and staying in cash. "The fund is not embarrassed by maintaining a higher cash level - as and when required," he said.

Arjun Marphatia, its CEO, said the marketing strategy would be through its regular channels, but added that going forward the AMC would tie-up with banks to distribute the products.


Ron Robins said...

Regarding ethical funds. The most comprehensive and global ethical investing news can be found at my website --

One can also sign-up for a free e-newsletter.

Best wishes, Ron Robins

KVSSNRao said...

Dear Mr. Ron Robins

Thank you for making me aware of this very useful information

Anonymous said...

You need us if you have any of these tax problems: Back
, Unfiled Returns, Missing Records, Threat of Levy, or, if you need an Installment Agreement or an Offers in Compromise A tax levy or garnishment or attachment are all the same thing. The terms may be used interchangeably. A wage garnishment or levy may be against any asset. In the enforcement of tax collections. We prepare all Federal and State Unfiled tax Returns The Fair Tax Act (HR
25/S 1025) is a bill in the United States Congress for changing Tax Solutions laws to replace the Internal Revenue Service (IRS) and all federal income taxes (including Alternative Minimum Tax), Past due tax returns, Past due tax returns, Past due returns, Past due taxes, Unpaid tax, Tax negotiation, Wage levy, Robert M. Adams, Bob Adams