Invest In India » Chief Marketing Officer http://investmoneyinindia.com Indian Financial News Resource Wed, 23 May 2012 07:20:15 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 FMPs a reason of cheer for mutual funds http://investmoneyinindia.com/2593/fmps-a-reason-of-cheer-for-mutual-funds http://investmoneyinindia.com/2593/fmps-a-reason-of-cheer-for-mutual-funds#comments Mon, 20 Dec 2010 16:51:37 +0000 Malvika http://investmoneyinindia.com/?p=2593 ©2009 Copyright by Invest In India

]]> As per the report in the Livemint; Mutual fund companies are seeing significant investments in fixed-income schemes, offering them a reason to cheer after months of more redemptions than sales and a continuous decline in the number of investor folios.

Mutual funds buy short-term certificates of deposit, or CDs, from banks for their fixed maturity plans (FMPs) and other fixed-income schemes, and with banks offering at least 9% on these instruments, investors are scrambling to invest in the debt schemes. Interest in monthly income plans (MIPs), too, has increased.

The chief marketing officer of one of the country’s top five fund houses admits that investments by funds in CDs have increased. The fund’s own fixed-income funds used to invest Rs. 700-800 crore in CDs every month, and this has gone up to Rs. 2,000 crore in the past two weeks, added the manager, on the condition of anonymity.

FMPs are close-ended debt-oriented fixed income schemes. Fund managers invest the money under such schemes in fixed-return instruments, including CDs, commercial papers, gilts and debentures, which mature at the end of the term of the FMP. FMPs come in maturities ranging from 90 days to three years.

“There is a renewed interest among retail investors in new fixed-income funds, including FMPs,” said Srinivas Jain, chief marketing officer at SBI Mutual Fund.

Sundeep Sikka, chief executive officer, Reliance Capital Asset Management Ltd, which is India’s largest fund house with assets worth Rs. 1.07 trillion at the end of September, said,  “Retail FMPs are one of the best categories of debt products for retail investors. We have added nearly 2.5 lakh retail investors in our MIPs and pure retail debt schemes in the past one year. Higher rates on CDs have certainly acted as a trigger for more retail participation in debt schemes.”

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]]> http://investmoneyinindia.com/2593/fmps-a-reason-of-cheer-for-mutual-funds/feed 0 UTI Mutual Fund launches UTI-Wealth Builder Fund-Series II http://investmoneyinindia.com/373/uti-mutual-fund-launches-uti-wealth-builder-fund-series-ii http://investmoneyinindia.com/373/uti-mutual-fund-launches-uti-wealth-builder-fund-series-ii#comments Thu, 23 Oct 2008 07:37:00 +0000 Tushar Mathur UTI Mutual Fund announces the launch of a unique scheme “UTI Wealth Builder Fund-Series II” which combines the benefits of both equity and gold. The New Fund Offer opens on October 21, 2008 and closes on November 19, 2008.

The scheme will re-open for purchase and redemption not later than 30 days from the closure of the NFO period. (View - New Fund Offers open NOW)

UTI Wealth Builder Fund-Series II is an open ended equity oriented scheme. The investment objective of the Fund is to achieve long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments alongwith investments in Gold ETFs and Debt and Money Market instruments.

Jaideep Bhattacharya, Chief Marketing Officer, UTI AMC said, “UTI Wealth Builder Fund-Series II is the First of its Kind in the mutual fund industry to offer an asset allocation which combines traditional as well as non traditional asset class i.e. Equity and Gold. It is important to have an alternative asset in one’s portfolio and to build a portfolio around assets that have low correlation. Gold has proved to be “counter cyclical” or low correlated asset class as compared to equity investments and has generally been considered as a safe haven during times of economic upheavals and volatile equity markets."

“Also first time Investors will have the convenience of investing through SIP that will have exposure to Gold ETF” he added.

Harsha Upadhyaya, Fund Manager of the scheme said, “The scheme aims to build and maintain a diversified portfolio of equity stocks that has potential to appreciate in the long run. The scheme will take exposure across capitalisations with a tilt towards large caps and will also use derivatives to hedge and manage volatility. The investment in Gold ETFs will diversify portfolio risk and reduce overall volatility of returns.”

Salient Features of UTI- Wealth Builder Fund-Series II

* Eligible Investors: The plan is open to resident individuals, institutions as well as to NRIs and FIIs.
* New Fund Offer Price: During the NFO, the units will be sold at face value of Rs.10/- plus applicable load.
* Redemption: The scheme will offer redemption of units at NAV based prices on every business day on an on-going basis not later than 30 days from the date of closure of the NFO period.
* Plans: Retail and Institutional Plan
* Options: Growth and Dividend option with payout and reinvestment facilities
* Minimum Application Amount: Retail Plan: Rs.5000/- and in multiples of Rs.1/- thereafter, Institutional Plan: Rs.1 crore and in multiples of Rs.1/- thereafter
* Benchmark Index: BSE 100 for Equity part of the portfolio, CRISIL Bond Fund Index for that part of the portfolio relating to investments in debt and money market instruments and the price of Gold as per SEBI regulations for Gold ETFs
* Waiver of Load for Direct Application: No entry load shall be charged for direct applications received by the AMC
* Load Structure during the NFO period.


©2009 Copyright by Invest In India

]]> UTI Mutual Fund announces the launch of a unique scheme “UTI Wealth Builder Fund-Series II” which combines the benefits of both equity and gold. The New Fund Offer opens on October 21, 2008 and closes on November 19, 2008.

The scheme will re-open for purchase and redemption not later than 30 days from the closure of the NFO period. (View – New Fund Offers open NOW)

UTI Wealth Builder Fund-Series II is an open ended equity oriented scheme. The investment objective of the Fund is to achieve long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments alongwith investments in Gold ETFs and Debt and Money Market instruments.

Jaideep Bhattacharya, Chief Marketing Officer, UTI AMC said, “UTI Wealth Builder Fund-Series II is the First of its Kind in the mutual fund industry to offer an asset allocation which combines traditional as well as non traditional asset class i.e. Equity and Gold. It is important to have an alternative asset in one’s portfolio and to build a portfolio around assets that have low correlation. Gold has proved to be “counter cyclical” or low correlated asset class as compared to equity investments and has generally been considered as a safe haven during times of economic upheavals and volatile equity markets.”

“Also first time Investors will have the convenience of investing through SIP that will have exposure to Gold ETF” he added.

Harsha Upadhyaya, Fund Manager of the scheme said, “The scheme aims to build and maintain a diversified portfolio of equity stocks that has potential to appreciate in the long run. The scheme will take exposure across capitalisations with a tilt towards large caps and will also use derivatives to hedge and manage volatility. The investment in Gold ETFs will diversify portfolio risk and reduce overall volatility of returns.”

Salient Features of UTI- Wealth Builder Fund-Series II

* Eligible Investors: The plan is open to resident individuals, institutions as well as to NRIs and FIIs.
* New Fund Offer Price: During the NFO, the units will be sold at face value of Rs.10/- plus applicable load.
* Redemption: The scheme will offer redemption of units at NAV based prices on every business day on an on-going basis not later than 30 days from the date of closure of the NFO period.
* Plans: Retail and Institutional Plan
* Options: Growth and Dividend option with payout and reinvestment facilities
* Minimum Application Amount: Retail Plan: Rs.5000/- and in multiples of Rs.1/- thereafter, Institutional Plan: Rs.1 crore and in multiples of Rs.1/- thereafter
* Benchmark Index: BSE 100 for Equity part of the portfolio, CRISIL Bond Fund Index for that part of the portfolio relating to investments in debt and money market instruments and the price of Gold as per SEBI regulations for Gold ETFs
* Waiver of Load for Direct Application: No entry load shall be charged for direct applications received by the AMC
* Load Structure during the NFO period.





©2009 Copyright by Invest In India

]]> http://investmoneyinindia.com/373/uti-mutual-fund-launches-uti-wealth-builder-fund-series-ii/feed 0 UTI Mutual Fund to continue selling ULIP http://investmoneyinindia.com/392/uti-mutual-fund-to-continue-selling-ulip http://investmoneyinindia.com/392/uti-mutual-fund-to-continue-selling-ulip#comments Mon, 22 Sep 2008 08:10:00 +0000 Tushar Mathur UTI Mutual Fund today said it will continue selling Unit Linked Insurance Product (ULIP) to its customers even though there is no clarity on the issue of fund houses selling such products. "We have been selling the ULIP plan to the customers of the Balance Fund since 1971 and would continue to do so," said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.

UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.

The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.

It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market. In under-insured market like India, Bhattacharya said, there is need for collaboration with insurers to incease the penetration.

However, the Life Insurance Council, which is association of life insurance companies, recently decided against offering insurance covers to fresh unit-linked products sold by mutual funds from October 1. It was decided that insurer will not sell group covers to mutual funds that bundle life insurance with units and thereby create competition for ULIPs.

Regulators including SEBI and IRDA have not come out with the guideline on the issue. Until it is clarified, the confusion would prevail, an industry observer said.

©2009 Copyright by Invest In India

]]> UTI Mutual Fund today said it will continue selling Unit Linked Insurance Product (ULIP) to its customers even though there is no clarity on the issue of fund houses selling such products. “We have been selling the ULIP plan to the customers of the Balance Fund since 1971 and would continue to do so,” said UTI Mutual Fund Chief Marketing Officer Jaideep Bhattacharya.

UTI sells ULIP plan of Life Insurance Corporation which happens to be one of the sponsors of the fund house.

The product has been sold to about 5 lakh customers and has asset size of about Rs 3,100 crore, he said.

It is one of the low cost product available in the market, he said, adding the cost is as low as 3 per cent as compared to up to 62 per cent in the market. In under-insured market like India, Bhattacharya said, there is need for collaboration with insurers to incease the penetration.

However, the Life Insurance Council, which is association of life insurance companies, recently decided against offering insurance covers to fresh unit-linked products sold by mutual funds from October 1. It was decided that insurer will not sell group covers to mutual funds that bundle life insurance with units and thereby create competition for ULIPs.

Regulators including SEBI and IRDA have not come out with the guideline on the issue. Until it is clarified, the confusion would prevail, an industry observer said.

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