Tuesday, November 24, 2009

Trading in mutual funds in a fortnight

You may soon be able to buy and sell mutual fund units through your broker's terminal, according to the chairman of the Securities and Exchange Board of India. "Trading in mutual fund units is expected to start in 10 to 15 days," he said in an interview with CNBC Awaaz. Brokers have applied for the necessary certifications and expect to be battle-ready anytime soon.
"The buying of mutual funds would be like any other equity shares transaction on T+1 settlement (one day after the trade has taken place) through exchanges," said Mayank Shah, CEO of Anagram Capital. Brokerages are signing up withvarious asset management companies and exchanges for trading throughterminals.
"It would not be a problem for us. Not many changes would be required in our system and dealing in MFs would be like any other equity product. This would reduce paperwork and units would be in demat form," said Dinesh Thakkar, CMD of Angel Broking.
Sebi had issued a circular on November 13, which allowed the use of stock exchange infrastructure for sale of mutual funds. It is expected that this would increase the reach of themutual fund industry, which is dealing with increased difficulties in distribution following the ban on charging of entry loads.
As well as increasing penetration among retail investors who currently do not invest in mutual funds, investors who have exposure to mutual funds may take the demat route, feels Nitin Rakesh, CEO at Motilal Oswal AMC. "There could be a migration period lasting a few months. HNIs already have demat accounts and the number of retail investors with such accounts should also increase soon".
"Anything that spreads the availability of the product would be welcome, and the entire process should begin soon," said Suresh Soni, CEO of Deutsche Asset Management (India).

Religare Tax Plan To Pay Dividend Of INR1 Per Unit

Religare Mutual Fund Monday declared a dividend of 10%, or INR1 a unit, under the dividend option of its Religare Tax Plan.
The record date for the dividend is Nov. 25, the Indian fund house said in a statement.
Religare Tax Plan is an open-ended, equity-linked savings scheme that invests mainly in equity and equity-related securities.

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)