Mutual Funds News 7th March 2008

Mirae Asset MF extends NFO period for India Opportunity Fund

Mirae Asset mutual fund has extended the new fund-offering (NFO) period of Mirea Asset India Opportunity Fund from 10 March to 11 March 2008. Mirae Asset India Opportunities Fund is an open-ended equity oriented fund. The NFO price for the fund is Rs 10 per unit. The scheme provides regular and institutional plans with growth and dividend payout option.

The minimum investment under regular plan is Rs.5000 and in multiples of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 5 crore and in multiples of Re 1 thereafter. The objective of the scheme would be to generate long-term capital appreciation by capitalizing on potential opportunities through predominantly investing in equities and equity related securities. The entry load is 2.25% for each purchase of less than Rs. 5 crore. For purchase amounts greater than or equal to Rs. 5 crore the entry load is nil. There will be no entry and exit load charged under institutional plan. The purchase amount of less than Rs 5 crore attracts exit load under regular plan: The scheme may charge an exit load of 1% if redemption is done within 6 months from the date of allotment. There will be 0.50% an exit load for redemption between 6 months and 12 months from the date of allotment.

For purchase amount greater than Rs 5 crore, the scheme may not charge any exit load under regular plan. The scheme will invest 65%-100% Indian equities and equity related securities and 0-30% in money market instruments and debt securities investments. It includes investment up to 25% of in securitised debt. Equity and equity related instruments include convertible debentures, equity warrants, convertible preference shares, equity derivatives etc.

 

UTI Asset Management to sell 20-pc stake

New Delhi: UTI Asset Management Company is all set to offload around 20 per cent stake to a clutch of strategic investors through a pre-initial public offering (IPO) placement. Altogether, the company would look at selling up to 49 per cent stake to public and a clutch of strategic investors. In January this year, UTI Asset Management Company Ltd had filed the draft red herring prospectus with the market regulator to enter the capital market with an IPO of 4.85 crore equity shares of Rs 10 each through an offer for sale by the selling shareholders. Its four sponsors and the selling shareholders are the State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda. The offer also comprises a reservation of equity shares for subscription by employees and the offer to the public.

 

Mirae Asset MF collects Rs.1435 cr via two income plans

Mirae Asset Mutual Fund has collected Rs 1435 crore through its both Mirae Asset Liquid Fund and Mirae Asset Liquid Plus Fund during their initial offer period which closed to 3 March 2008. Mirae Asset Liquid Fund, which is an open-ended liquid fund, which was opened 27 February and closed 3 March 2008. The primary investment objective of the scheme is to seek to seek to generate reasonable returns with low volatility and higher liquidity through a portfolio of debt and money market instruments.

Mirae Asset Liquid Plus Fund is an open-ended debt fund had its new fund offer period from 29 February and closed on 3 March 2008. The primary investment objective of the scheme is to seek to generate returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. Both the scheme will have regular, institutional and super institutional plans. The schemes offer growth, bonus and dividend option under each plan. Dividend option shall have the choice of dividend payout; dividend reinvestment and dividend transfer options.

 

Tata MF revises load structure

Tata mutual fund has announced the revision in the load structure for Tata Floating Rate Fund-Long Term option. According to the revised load structure, the fund will charge an exit load 0.50% if the investment is redeemed before 3 months from the date of allotment. Before revision of the load structure, the scheme did not ask for any exit load. The aforesaid changes will be effective from 7 March 2008.

 

JM Financial MF launches FMP Series

Name of fund: JM Fixed Maturity Fund Series IX 15 Month Plan

Scheme: The scheme is a close-ended income fund with maturity of 455 days from the date of allotment.

Objective: The investment objective of the fund is to generate regular returns through investments in fixed income securities normally maturing in line with the time profile of the respective plan.

Asset allocation:

Short term debt securities and money market instruments: 65-100%

Government securities: 0- 35%

Securitised debt: Up to 80% net assets of plan

Offer opens: 7 March 2008

Offer closes: 12 March 2008

Face value: Rs 10

Investment Options: Each series will have regular and institutional plan. The scheme offers investors growth option and dividend option under both the plans.

Entry load: Nil

Exit load: The fund would charge an exit load of 2.00% if the units are redeemed or switched out before maturity.

Minimum Investment Amount: The minimum investment amount under regular scheme is Rs 5, 000 and in multiple of Re 1 thereafter. The minimum investment amount under institutional scheme is Rs 5 lakh and in multiple of Re 1 thereafter.

Minimum subscription amount: Rs 1 crore

Benchmark Index: I-Sec Bond Index

Fund Manager: Ms Shalini Tibrewala