Capital market regulator the Securities and Exchange Board of India (Sebi) has proposed to review its mutual fund (MF) regulation that allows asset management companies to carry out other businesses, such as portfolio management service (PMS). Some of the leading fund houses provide the portfolio management service under the same umbrella by sharing infrastructure facilities.

The reasoning within Sebi about this proposal is that investment decisions in the MF business should not be shared with its portfolio management segment. Sebi fears that the AMC might priortise the portfolio management business over the MF business as the fund house is allowed to fix remuneration to distributors according to the services provided.

The issue is expected to be discussed when the regulator’s advisory committee on mutual funds meets on Monday.

The meeting will also discuss whether the Real Estate Investment Trust proposal should be continued or withdrawn or merged with Real Estate MFs. Besides, the committee that has representatives from the industry, law firms and investor associations, is likely to discuss the fungibility of expenses.

Fund houses now charge about 2.5% of the assets under management of the schemes as fund management fees annually . This fee typically covers management fees, operating expenses and trail ommissions. The regulator may consider providing flexibility to fund houses to charge management fees which is currently capped at 1.3% within the fund management fees.

Besides the total expense ratio the regulator has also proposed an enhanced performance measurement disclosure. Although the industry body Amfi, has put in place a lot of methods of disclosures, the regulator may be looking at having uniform dates across all funds that would help retail investors better understand the performance about their MF investments, said a person faimiliar with the development.

At present, schemes end in different periods for all the fund houses. Sebi is also looking at having an institutionalised way of doing the distribution, wherein fund houses will have to supervise the distributors. Besides, the regulator may also ban fund houses from selling equity options.

Source: Economic Times

A wise wisdom says, “The art is not in making money, but in keeping it”. So when the equity markets are in a state of turmoil, traditional fixed income instruments are back in favour as they guarantee both the capital and returns. Apart from bank deposits, there are a whole gamut of other investment instruments having the similar features.

Term Deposit

Also called fixed deposits, it is one of the most favourite instruments among conservative investors and savers. Under this scheme, investors need to deposit a lump sum amount for a fixed period at a predetermined rate. Other than banks, post offices (PO) and corporates also offer term-deposit schemes. However, they differ in terms of interest rates, minimum investment, tenure and tax treatment of the interest income.

Bank FD: Bank deposits have an edge over others. The tenure for term deposit offered by banks varies from 15 days to 10 years. It is also liquid asset next to demand deposits. Though the announcement of tax exemption for bank FDs for a period of 5 years and above had attracted investors, this year they are switching to other schemes as the rates offered banks were very low — in the range of 6-7.75% p. a. for the deposit with the maturity period of 3-5 years and above.

Post Office Deposit: With moderation in bank deposit rates, PO term deposits are now very competitive. PO allow to open term deposit only for the period of 1, 2, 3 and 5 years offering interest rate in the range of 6.25-7.50%. An added advantage is the investment under this scheme for 1-3 years is also liable for tax exemption under Section 80C. However, though the interest income is taxable, there is no TDS deduction.

Corporate FDs: In recent times, a few domestic companies have opted to raise money through this route. These schemes look attractive as most companies offer higher interest rates than bank FDs for the same maturity period. However, the investor needs to be careful before choosing the company to park their money with. It is because while banks deposits of up to Rs 1 lakh are insured, no such protection is available in the case of company FD. Given this, its best to stick with corporates FDs with AAA/AA ratings or those that have a history of strong financials and belong to large and reputed business houses.

Monthly Income Scheme

Similarly to term deposits, Post Offices offer Monthly Income Scheme (MIS), which is designed to provide a monthly income for investors. Individuals can open the account; either single or in joint name with any post office in India at the simple rate of interest 8% p.a that will be paid out to the investor each month. If such monthly payout is not needed, one can invest the monthly interest receipts in Post Office’s Recurring Deposit (RD) scheme. This combination will fetch almost a yield of 10.5%. An added advantage to the investors of MIS is a bonus payout of 5% on the initial amount of investment. However, this scheme does not enjoy any tax benefit, which makes it unpopular amongst investors.

National Saving Certificate

Looking for a fixed income instrument for tax saving, then the best option is Post Office’s NSC. It combines adequate returns with high safety. They are issued in various denominations starting from Rs 100 for fixed maturity period of 6 years at the rate of 8% compounded half yearly. The amount parked under NSC enjoys tax benefit under Section 80C, and the premature withdrawal is not allowed.

Kisan Vikas Patra

It is the only fixed income instrument that guarantees to double the investment over a period of 8 years and 7 months. KVP’s are issued in various denominations for a maturity period, which is fixed. Encashment of KVP before maturity is possible after two-and-a-half years. However, one may forgo some interest income. Kisan Vikas Patra could be a better option when there is low interest rate as it offers high returns with liquidity. The only drawback of this instrument is that it does not qualify for tax exemption u/s 80C and the interest income is taxable.

Public Provident Fund

This is an investment-cum-tax saving instrument. It also serves as a retirement planning tool for many. The rate of interest offered is fixed at 8% compounded annually. One can open a PPF account with some of the major branches of State Bank of India and any of post office in the country. The amount parked under the scheme enjoys tax exemption under Sec 80C. Unlike other schemes, the interest earned under PPF is tax free. However, it is for longer tenure like 15 years and one needs to invest at least Rs 500 every year without a fail to continue with the same account.

These instruments have zero risk if one has lump sum amount to invest. There are other instruments like bonds offered by development finance institutions or infrastructure companies. Other instruments such as non-convertible debentures and debt-market mutual funds can also be broadly categorised as fixed income instruments but they are subject to interest rate risk. In short, amidst uncertainty prevailing in the equity market, one can use these instruments to de-risk their investment portfolio.

Source: Economic Times

NAV of SBI Mutual Fund

NAV of HDFC Fund

NAV of ICICI Prudential Mutual Fund

NAV of UTI Mutual Fund

NAV of Birla Sun Life Mutual Fund

Name of the Mutual Fund Bharti AXA Mutual Fund

Date of setup of Mutual Fund March 31, 2008
Name(s) of Sponsor AXA Investment Managers
Name of Trustee Company Bharti AXA Trustee Services Private Limited
Name of Trustees Mr Raghu Palat – Trustee

Mr Robin Clark – Trustee

Mr S Venkatachalam – Trustee

Mr Sumant Chadha – Trustee

Ms Vijaya Sampath – Trustee

Name of the Asset Management Co. Bharti AXA Investment Managers Private Limited
Date of Incorporation of AMC August 13, 2007
Name(s) of Director Mr Anil Harish

Mr Anthony Fasso

Mr Emmanuel Vercoustre

Mr Glenn Williams

Mr Prakash Nene

Mr S K Mitra

Mr Sanjay Gupta

Mr Sudhir Chand
Name of Chief Executive Officer Mr Sandeep Dasgupta
Name of Head of Operations Mr Shubro Sankha Das
Name of Head-Equity Mr Prateek Agrawal
Name of Head-Fixed Income Mr Sujoy Das
Name of Sales Head Mr Vikaas M Sachdeva
Name(s) of Chief Investment Officer – Debt Mr Sujoy Das
Name(s) of Chief Investment Officer – Equity Mr Prateek Agrawal
Name(s) of Chief Operating Officer Mr Mark Van Den Broek
Name(s) of Fund Manager Mr Sriraj Bhattacharjee
Name of Compliance Officer Mr Manish Ghiya
Name of Investor Service Officer Mr Staney Antoney
Address of AMC

51, 5th Floor, Kalpataru Synergy,

East Wing, Vakola,

Santacruz East

Mumbai 400055
Telephone Number 022-40479000
Fax Number 022-40479001
Website www.bhartiaxa-im.com
Email service@bhartiaxa-im.com

Information Updated As On 11-Aug-2008

Name of the Mutual Fund Baroda Pioneer Mutual Fund

Date of setup of Mutual Fund October 30, 1992

Name(s) of Sponsor Bank of Baroda

Name of Trustee Company N.A.

Name of Trustees Mr. D. Sarkar – Member of Board

Mr. R. L. Baxi – Chairman of Board

Mr. Shrinivas Suvarna – Member of Board

Mr.V.H.Bhatia – Member of Board

Name of the Asset Management Co. Baroda Pioneer Asset Management Company Limited

Date of Incorporation of AMC November 5, 1992

Name(s) of Director Dr. P. N. Khandewala

Mr. Angus Stening

Mr. B. A. Prabhakar

Mr. Dario Frigerio

Mr. G. P. Gupta

Mr. Rohit Arora

Mr. Shiv Dayal

Mr. Siddhartha Bhattacharya

Prof. B. B. Bhattacharya

Name of Chairman Dr. Anil K. Khandelwal

Name of Chief Executive Officer Mr. Rajan Krishnan

Name(s) of Chief Operating Officer Ms. Sweata Shah Ostrowska

Name(s) of Fund Manager Miss Hetal Shah (Debt)

Mr. Dipak Acharya (Equity)

Name of Compliance Officer Mr. Krishna Kumar Kushwaha

Address of AMC 105, Maker Chambers III, Nariman Point Mumbai 400 021

Telephone Number 22853323 – 3326

Fax Number 22880009

Website www.bobmf.com

Email bobamc@bobmf.com

Name(s) of Auditors M/s Borkar & Muzumdar Chartered Accountants

Name(s) of Custodian HDFC Bank

Name(s) of Registrar and Transfer Agent M/s Karvy Computershare Pvt. Ltd.

Name of the Mutual Fund AIG Global Investment Group Mutual Fund

Date of setup of Mutual Fund February 9, 2007

Name(s) of Sponsor AIG Capital Corporation

Name of Trustee Company AIG Trustee Company (India) Pvt. Ltd.

Name of Trustees Mr. Amal Ganguli – Trustee
Mr. N Rangachary – Trustee
Mr. Sunil Behari Mathur – Trustee
Mr. Sunil Mehta – Trustee

Name of the Asset Management Co. AIG Global Asset Management Company (India) Pvt. Ltd.

Date of Incorporation of AMC October 30, 2006

Name(s) of Director Dr. (Mrs.) Isher Judge Ahluwalia
Mr. Avinder Singh Bindra
Mr. Nanoo G Pamnani
Mr. Ravi Mehrotra
Mr. Santosh Senapati (Alternate to Ms. Tse Koon Hang Ada)
Mr. Saurabh Sonthalia (Alternate to Mr. Steven Guterman)
Mr. Steven Guterman
Ms. Tse Koon Hang Ada

Name of Chief Executive Officer Mr. Saurabh Sonthalia

Name of Head of Operations Mr. Rohit Gupte

Name of Sales Head – Mr. Manish Mehta.
National Head Intermediary Channel – Mr. Rajiv Maniar – National Head Institutional Sales

Name(s) of Chief Investment Officer – Debt Mr. Sandeep Bagla

Name(s) of Chief Investment Officer – Equity Mr. Tushar Pradhan

Name(s) of Fund Manager Mr. Huzaifa Hussain

Name of Compliance Officer & Company Secretary Ms. Sonal Barot

Name of Investor Service Officer Mrs. Usha Mallya

Address of AIG Asset Management Company.

FCH House, Ground Floor,
Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Lower Parel Mumbai 400013,
Telephone Number 022-40930000,
Fax Number 022-40930077.

Website www.aiginvestments.co.in

Email investorcare@aig.com

Name(s) of Auditors S R Batliboi & Co.

Name(s) of Custodian CITIBANK N.A.

Name(s) of Registrar and Transfer Agent Computer Age Management ServicesPvt. Ltd.