Alert: Brokerage Payment on Hold, Urgent Action Required

Sirs, The Self declaration Form ( New Format) for the year 2009-10 has been already sent in person on 30/04/2010 to CAMS collection centre, Salem branch, Salem and Karvy Distributor Service Centre, Shevapet branch, Salem and also received the acknowledgments. Almost all AMC Companies has sent a letter to me individualy stating that They not yet received the Self Declaration form for the year 2009-10 in middle of May 2010.  Again, I have contacted the same to M/s. Karvy and Cams in person before end of May, 2010 and both of them have told me that they intimated the same to all AMCs in time and requested me for need not worry in this regard. In addition that I have given one additional Self Declaration Form to CAMS only including a xerox copy of acknowledgment receipt. Again, I have received mails from some AMCs in this month that they have stopped my commission because of non receipt of Self Declartion for the year 2009-10 on or before 31st July, 2010.  I have given reply that I have been already submitted the Self Declaration Form in time to those AMCs but not accepted the same. Further, I given request to M/s.CAMS and KARVY to take immediate action in this regard and do the needful immediately. This is for your information only. Kasinathan VSalem

Equity schemes lose 8.33 lakh folios since November 2009

August 11, 2010 05:32 PM
Ravi Samalad
Source: http://www.moneylife.in/article/8/8129.html

After witnessing Rs3,400 crore redemptions in July, equity schemes shed 2.93 lakh investor accounts. Instead of expanding the investor base, SEBI is presiding over a shrinking investor population.

Despite a 9% GDP growth and a booming stock market, mutual fund investors are still shying away from equity schemes and trying their luck in debt funds. Since November 2009, three months after the ban on entry load on mutual funds, the industry has lost a whopping 8.33 lakh equity folios till July 2010. The benchmark BSE Sensex has risen 8% since November 2009. According to the latest data available on the Association of Mutual Funds in India (AMFI) website, the 40 fund houses have together lost 1.66 lakh investor accounts in the month of July.

Equity funds witnessed Rs3,400 crore redemption in July despite the launch of two new schemes.

Debt funds added 1.18 lakh investor accounts in July while Exchange Traded Funds (ETFs) saw their investor base rising by 27,467. Fund of Funds, which invest in other funds, lost 7,955 folios.

Balanced funds, which invest a part of the corpus in equity, lost 10,459 folios in July. The total investor base or number of folios as on July 2010 stands at 4.77 crore. The five heavyweights of the industry together lost 93% (1.55 lakh investor accounts) of the total 1.66 lakh slump in folios. However, HDFC Mutual Fund bucked the trend by adding 23,544 investor accounts.

"There is a fear of the direct tax code (DTC) being applicable on capital gains. Some distributors are suggesting that investors pull out the money and re-enter afterwards. There is no clarity on the DTC yet. Some people are taking their own decisions. There is also some profit-booking," said a marketing head of a fund house.

Equity scheme folios declined by 1,47,745 last month despite a slew of launches like Baroda Pioneer Infrastructure Fund, Birla Sun Life India Reforms Fund, DSP BlackRock Focus 25 Fund, ICICI Prudential Nifty Junior Index Fund, IDBI Nifty Index Fund and Taurus Nifty Index Fund.

"Most of it is being redeemed because of the frequent and confusing changes in mutual fund regulations," said an industry source. Since last August, market regulator Securities and Exchange Board of India (SEBI) has made frequent changes such as removal of entry load, changes in cost structure and also who gets the trail commissions when investors switch from one scheme to another. "SEBI's mandate is market development and investor protection and what we are witnessing is a shrinking investor base. Some serious rethinking is needed is needed about SEBI's recent actions," says a mutual fund head.

IFA Galaxy Thanks Mr. Shankar S, Credo Capital for this update

Indian funds dominate top ten Asian small-cap funds

By   SINS

Thursday, 12 August 2010, 12:38 IST

Bangalore: Out of top ten small-cap funds across Asia, seven have been snapped up by Indian funds. According to an analysis of nearly 300 Asian small-cap schemes, DSP BlackRock Micro Cap Fund is leading the chart, with an 82 percent return over the past year, reports Shailendra Bhatnagar of ET Now.

The fund, managed by Vinit Sambre, has also beaten the 58 percent rise of the Small-Cap Index in BSE since 2009. During this period, Sensex has gained 20 percent, while the wider BSE 500 Index is up 27 percent.

The other six funds that have given investors returns between 44 percent and 57 percent on a trailing 12-month basis include Sundaram BNP Paribas Select Small Cap, HSBC Small Cap, JPMorgan Smaller Companies, Franklin India Prima, Franklin India Smaller Companies and ING Vysya CUB.

According to Value Research, a mutual fund tracking firm, the DSP fund as an impressive product in the entire 'small-cap universe'. The firm said that the fund holds credible and known stocks, with a high return on equity.

The close-ended nature of some of these funds enable them defy the market turbulence. As they did not face redemption pressures through the declining phase, they can invest for the longer term, said Dhirendra Kumar, CEO of Value Research.

In June this year, the DSP fund became open-ended. There are 10 small-cap funds in India, which manage roughly Rs. 3,450 crore in stocks.

According to Market experts, the rally shifted to small caps because many large-cap stocks became fully priced and relatively unattractive over the past year. Stocks like cooler maker Symphony and luggage maker VIP Industries have led the small-cap charge in the market.

Experts recommend investors to be cautious and have just 10-15 percent of their equity exposure in small-cap funds, even though they have delivered solid returns in the past one year.

Regards

Valady V.Barathwaaj

Chennai: +91  98418-25188

Please Check your Trail Commission - Lot of Mistakes by AMCs

Dear Friends,

                  I have been repetedly telling you to check the trial they r not being paid correctly by A.M.C. Now for the 2nd time in a row DSP BR A.M.C. has accepted that they hv paid me trial brokerage less this time almost Rs.3550 for this quarter. Last time it took almost 1 month time for the A.M.C. to find they have paid less brokerage, this quarter they hv taken only 10 days to find the same. 

                      Hence I request u all to check ur statements as and when u hv time.

                      More over I have strong doubts the A.M.C's are paying the per App Incentive promised by them for S.I.P's I am asking the A.M.C's to provide me the details which they r reluctant to do so.

                    Example : I am chasing HDFC AMC on the same SIP Additional upfront which they not responding properly. 

                                      I am also in Chase of Birla A.M.C to provide me SIP Incentive details (Full List for which SIP how much they paid) last 2 months, I think this wud give us a clear picture on their SIP Drive.

                       Let us all ask the respective R.M.'s about the additional brokerage & Trial brokerage.

Regards,

Alagappan

9841055577

Sundaram AMC appoints New Fund Manager

Sundaram BNP Paribas Mutual Fund has appointed Mr. Dwijendra Srivastava as Head-Fixed Income in the position of Senior Vice President. He is a Chartered Financial Analyst from CFA Institute, USA. He is also a Textile Engineer with Post Graduate Diploma in Finance.

He was associated with Deutsche Asset Management (India) Ltd. as Vice President and Fund Manager since 2007, spearheading debt schemes. He was also involved in new product development.

He will manage schemes such as Sundaram BNP Paribas Money Fund, Sundaram BNP Paribas Ultra Short-Term Fund, Sundaram BNP Paribas Flexible Fund Short-Term Plan, Sundaram BNP Paribas Flexible Fund Flexible Income Plan, Sundaram BNP Paribas Gilt Fund, Sundaram BNP Paribas Select Debt Short-Term Asset Plan, Sundaram BNP Paribas Income Plus, Sundaram BNP Paribas Capital Protection Series 1-3 Years, Sundaram BNP Paribas Capital Protection Series 1-5 Years, Sundaram BNP Paribas Fixed Term Plan P - 367 days, Sundaram BNP Paribas Fixed Term Plan R - 367 days, Sundaram BNP Paribas Fixed Term Plan S - 367 days, Sundaram BNP Paribas Fixed Term Plan U - 367 days, Sundaram BNP Paribas Fixed Term Plan AA - 14 Months, Sundaram BNP Paribas Fixed Term Plan Z - 15 Months, Sundaram BNP Paribas Fixed Term Plan Y - 18 months, Sundaram BNP Paribas Fixed Income Interval Fund - Quarterly Series - Plan A, Sundaram BNP Paribas Fixed Income Interval Fund - Quarterly Series - Plan B, Sundaram BNP Paribas Fixed Income Interval Fund - Quarterly Series - Plan C, Sundaram BNP Paribas Fixed Income Interval Fund - Quarterly Series - Plan D and Sundaram BNP Paribas Fixed Income Interval Fund - Quarterly Series - Plan E.

Do you Want MFRT 2010 Magazine - Register Here to get by post

MFs oppose monthly AUM declaration

Chandan Kishore Kant / Mumbai August 5, 2010, 0:38 IST Source:

http://www.business-standard.com/india/news/mfs-oppose-monthly-aum-declaration/403575/

Amfi board to discuss demand that only retail numbers be released every month.

The continuing fall in their assets under management (AUM), especially on the equities side, has forced fund houses to approach the industry body, the Association of Mutual Funds in India (Amfi), to stop publishing this data on a monthly basis.

“Most of us feel that monthly data do not give the correct picture. In some months, there are huge withdrawals by companies and high net worth individuals due to advance tax payments. This amount is reinvested soon. But there is too much hype over these periodic outflows,” said the CEO of one of the largest fund houses.
  

FAST FIGURES
Month	AAUM	Chg (%)	Net inflow/(outflow)
January	7,61,440.37	-4.14	97,242
February	7,81,525.72	2.64	6,365
March	7,47,338.62	-4.37	(1,62,165)
April	7,69,129.61	2.92	1,85,956
May	8,03,559.06	4.48	-62,960
June	6,75,863.57	-15.89	(1,19,449)
July	6,65,567.42	-1.52	NA
All figures in Rs crore; Change (%) is month-on-month Source: Amfi

He explained that institutional money was a direct reflection of liquidity in the system, which fluctuates. Instead, the industry has said that monthly data of only the retail segment should be declared. “Retail money is mostly long term. It will provide a better picture,” added the CEO.

Every month, MF houses have to declare their average AUM at the beginning of the month, on Amfi’s website. Industry players feel the overemphasis on AUM leads to unhealthy competition among the players. “There is a huge rush to garner assets, even if they are short term, to shore up the numbers,” said another industry source.

It is learnt that Amfi will discuss the issue in its board meeting soon.

Amid several regulatory changes in the past year, the 40-player domestic fund market is still finding it tough to adjust.

The industry is continuously losing folios and equity assets.

Banning entry load on equity schemes last year was the biggest game changer, followed by more regulatory measures. 

“The industry is still settling down to these changes. There are new guidelines on debt instruments whereby they will be marked-to-market. This may lead to some uncertainty in the debt market as well,” said an insider.

In June, the industry’s assets dipped around 16 per cent, the sharpest fall since the October crisis of 2008.

They further slipped in July, though marginally, by 1.5 per cent. In contrast, the first month of a new quarter normally sees inflows, as was witnessed last July when assets rose by Rs 20,000 crore.

Update on MFRT Meet In Kolkata

Kanak Kr Jain,CFP,LUTCF(IN),FSS

Secretary ASK Circle

Nilhat House,6th Floor, 11 R.N.Mukherjee Rd, Kolkata 700001

Ph 40053573

HDFC Fund Manager Prashant Jain

Published on Mon, Aug 02, 2010 at 09:13   |  Updated at Mon, Aug 02, 2010 at 16:06  |  Source : Forbes India

Prashant Jain is the biggest and the best fund manager in the country. 

For the ninth year running, the fund he manages is top of the charts

Prashant Jain reminds you of the Energizer bunny. Sure, he looks nothing like the lovablecharacter straight out of the long-running television commercial. But his nine-year winning streak at HDFC Mutual Fund is the talk of the mutual fund industry. And why not? With a corpus of Rs. 86,600 crore, it is the 800-pound gorilla of the business. Which is why, every move its 42-year old executive director and chief investment manager makes is followed actively by investors, analysts, the media and even those in his peer group. 

Two of his funds, HDFC Equity and HDFC Top 200 have delivered returns of 28 percent over the last decade and are, without doubt, the best-run funds in the India. He has followed his convictions even if it meant underperforming in the short-term — like he did in 2007. Be that as it may, he has consistently emerged tops. Little wonder then, he is often voted as the one of the best CIOs by research houses like Morning Star, Mercer and several media publications. And if all that isn’t enough, the gold standard in the business, Lipper — a mutual fund research and rating firm — reckons HDFC Equity, has for each of the last five years , been the star performer in the 10-year category.

Now, Jain is the kind of man who doesn’t dwell on these facts. But fact is the sizes of these funds are increasing geometrically to its returns. HDFC Equity fund has a total corpus of Rs. 6,734 crore; the Top 200 fund is now over Rs. 8,020 crore. The latter, just moved ahead of Reliance Growth Fund, until then the biggest scheme in the country with total assets under management at Rs. 7,681 crore.

 

The problem as everybody sees it is this: Beyond a certain size, it becomes harder to beat the market because mutual fund managers typically bet on mid-cap stocks to boost returns. At the same time, they have to ensure that they don’t bet the house on it. Normally, when the corpus is small, there is no problem. However, as a fund grows, the asset manager faces a dilemma.

If he maintains investments in mid-caps, he ends up locking in very large sums of money there. So, assuming the market falls for whatever reason, there’s a good chance he won’t liquidate the stock on time. And if investors insist on redeeming their units, it becomes tough to rustle up the cash, resulting in a liquidity crisis.

Until now, Jain has performed an incredible balancing act. “Prashant Jain is one of the most balanced fund managers you can come across in the country,” says Hansi Mehrotra, investment consultant, Mercer. “He has delivered high returns with low risks. If you look at all the risk and return parameters, he comes off as a winner. He is truly consistent in his performance,” she continues.

Regards

Barathwaaj

Chennai: +91  98418 - 25188

    

Mutual Funds see increase in consumer complaints

Mutual Funds see increase in consumer complaints

Submitted by Sameer Kapoor

After facing a continuous depletion in the asset base, the mutual fund industry is also facing a tough question. The number of consumer complaints faced by, the industry have increased dramatically.

Most of the complaints are with respect to the redemption proceeds and non-receipt of dividends. These are the areas which are turning out to be the biggest worry not only for the investors but also for the people.

To be able to solve such troubles, market watchdog, SEBI had asked the fund houses to display investor complaints on their websites as well as that on the site of Association of Mutual Funds in India (AMFI).

Latest data shows coming up on AMFI, 37 fund houses have received 61,604 'non-receipt of dividend' complaints in the financial year 2009-10. Out of these, 51,509 complaints pertaining to non-receipt of redemption proceeds; the remaining are related to non-updation of PAN, bank details, nomination, et al . These got 42,515 complaints from investors.

While the industry said that such cases appear because of negligence on part of the investor, for the customers the culprit is within the companies. They say that they are not given proper information and so the whole trouble happens.


Regards

Barathwaaj
Chennai: +91 98418 - 25188