The mutual fund industry has seen consolidated AUM dropping by Rs. 39,405 crore over the last fiscal from Rs. 7 lakh crore to Rs. 6.64 lakh crore as on March 2012. A total of 22 AMCs shed Rs. 62,889 crore in assets. But a few major players have managed to report a good performance.
IDFC, Deutsche and HDFC were the biggest gainers. IDFC gained the most (Rs. 4,158 crore added to its kitty, AUM up from Rs. 21,292 crore to Rs. 25,450 crore as on March 2012). Deutsche was the second biggest gainer (Rs. 3,958 crore) and HDFC MF was the third largest gainer, it added Rs. 3,597 crore.
In the same period, the BSE Sensex shed 9% from 19,136 points to 17,404.
Baroda Pioneer and Taurus also saw their assets bulge by Rs. 1,606 crore and Rs. 1,184 crore respectively. IDBI Mutual Fund, which launched its AMC business in March 2010, recorded the fifth largest growth in assets. Its AUM went up from Rs. 3,528 crore in March 2011 to Rs. 5,482 crore in March 2012.
But it was also worried because as per my view it is also churning it's a change to one scheme to to other scheme and one company to other company if it is not happened total industry AUM go up very sharply. According to me without IFA MF industry never grow because those are one player who goes door to door.
Saturday, April 14, 2012
Thursday, April 12, 2012
Mutual Fund AUM goes below 6 lakh crore
Industry’s AUM falls 13% in March to Rs. 5.87 lakh crore from Rs. 6.75 lakh crore in February due to heavy redemptions in liquid funds.
Equity funds saw net outflow for the third consecutive month to the tune of Rs. 196 crore in March. The redemption was lower in March compared to February,during which a whopping Rs. 2,680 crore went out of the industry. The gross redemption in equity schemes stood at Rs. 4,533 crore in March while sales from existing schemes stood at Rs. 4,337 crore, resulting in net outflow of Rs. 196 crore.
The highest redemption was seen in liquid funds at Rs. 76,537 crore followed by Rs. 7,654 crore from income funds.
The industry’s AUM slipped 13% in March to Rs. 5.87 lakh crore from Rs. 6.75 lakh crore in February due to heavy redemptions in liquid and income funds.Sales from new schemes stood at Rs. 36,361 crore. The total net outflow in March stood at Rs. 83,765 crore compared to Rs. 1,271 crore net inflow in February.
Schemes Net Inflow (Outflow) in March Net Inflow (Outflow) in February
Income (7,654) (2,527)
Equity (196) (2,680)
Balanced 105 (243)
Liquid/Money Market (76,537) 6,860
Gilt 53 (88)
ELSS 267 (129)
Gold ETFs 231 85
Other ETFs (31) (40)
FOF(investing overseas) (3) 33
Total (83,765) 1,271
Equity funds saw net outflow for the third consecutive month to the tune of Rs. 196 crore in March. The redemption was lower in March compared to February,during which a whopping Rs. 2,680 crore went out of the industry. The gross redemption in equity schemes stood at Rs. 4,533 crore in March while sales from existing schemes stood at Rs. 4,337 crore, resulting in net outflow of Rs. 196 crore.
The highest redemption was seen in liquid funds at Rs. 76,537 crore followed by Rs. 7,654 crore from income funds.
The industry’s AUM slipped 13% in March to Rs. 5.87 lakh crore from Rs. 6.75 lakh crore in February due to heavy redemptions in liquid and income funds.Sales from new schemes stood at Rs. 36,361 crore. The total net outflow in March stood at Rs. 83,765 crore compared to Rs. 1,271 crore net inflow in February.
Schemes Net Inflow (Outflow) in March Net Inflow (Outflow) in February
Income (7,654) (2,527)
Equity (196) (2,680)
Balanced 105 (243)
Liquid/Money Market (76,537) 6,860
Gilt 53 (88)
ELSS 267 (129)
Gold ETFs 231 85
Other ETFs (31) (40)
FOF(investing overseas) (3) 33
Total (83,765) 1,271
Wednesday, April 11, 2012
WEEKLY MARKET UPDATE
• Worries about the Euro area debt crisis have not been quelled as Spanish and Italian
bond yields are rising once again. The long-term problem is infl exible labor markets,
particularly sky-high youth unemployment.
• Equity markets sold off mid-week as the minutes from the last Federal Reserve (Fed)
meeting seemed to indicate there was a higher bar to more monetary easing than
expected. Chairman Ben Bernanke clearly thinks there is enough slack in the labor
force to warrant keeping interest rates ultra-low for the foreseeable future.
• The U.S. payroll report was disappointing with only 120,000 new jobs in March.
Much of the drop is likely payback from spurious statistical seasonal adjustment that
overstated activity during the winter. U.S. growth should pick up in the second half.
• In total, 17 of the 25 countries that report manufacturing Purchasing Managers’
Index (PMIs) had a reading above 50, indicating expansion (using the logistics
federation Chinese PMI). Of the eight with readings below 50 that show
contraction, six were in Europe.
• The U.S. manufacturing PMI was up a point to 53.4; the services PMI cooled to 56.0
from 57.3, bringing the composite PMI (a sector weighted average) down to 55.6
in March, from 56.5 in February. This is consistent with our view of softer growth in
the fi rst quarter.
• China’s economic data show no signs of further deterioration: manufacturing PMIs
hover around 50; the March service PMI ticked up to 58; and the Soufun 100-city
survey of house prices show a modest 0.3% decline in March with prices about the
same as the year before.
• The China Securities Regulatory Commission (CSRC) raised the quota for foreign
institutional investors to invest in Chinese fi nancial securities from $30 billion to $80
billion. This is another small step to opening financial markets.
bond yields are rising once again. The long-term problem is infl exible labor markets,
particularly sky-high youth unemployment.
• Equity markets sold off mid-week as the minutes from the last Federal Reserve (Fed)
meeting seemed to indicate there was a higher bar to more monetary easing than
expected. Chairman Ben Bernanke clearly thinks there is enough slack in the labor
force to warrant keeping interest rates ultra-low for the foreseeable future.
• The U.S. payroll report was disappointing with only 120,000 new jobs in March.
Much of the drop is likely payback from spurious statistical seasonal adjustment that
overstated activity during the winter. U.S. growth should pick up in the second half.
• In total, 17 of the 25 countries that report manufacturing Purchasing Managers’
Index (PMIs) had a reading above 50, indicating expansion (using the logistics
federation Chinese PMI). Of the eight with readings below 50 that show
contraction, six were in Europe.
• The U.S. manufacturing PMI was up a point to 53.4; the services PMI cooled to 56.0
from 57.3, bringing the composite PMI (a sector weighted average) down to 55.6
in March, from 56.5 in February. This is consistent with our view of softer growth in
the fi rst quarter.
• China’s economic data show no signs of further deterioration: manufacturing PMIs
hover around 50; the March service PMI ticked up to 58; and the Soufun 100-city
survey of house prices show a modest 0.3% decline in March with prices about the
same as the year before.
• The China Securities Regulatory Commission (CSRC) raised the quota for foreign
institutional investors to invest in Chinese fi nancial securities from $30 billion to $80
billion. This is another small step to opening financial markets.
WEEKLY MARKET UPDATE
• Worries about the Euro area debt crisis have not been quelled as Spanish and Italian
bond yields are rising once again. The long-term problem is infl exible labor markets,
particularly sky-high youth unemployment.
• Equity markets sold off mid-week as the minutes from the last Federal Reserve (Fed)
meeting seemed to indicate there was a higher bar to more monetary easing than
expected. Chairman Ben Bernanke clearly thinks there is enough slack in the labor
force to warrant keeping interest rates ultra-low for the foreseeable future.
• The U.S. payroll report was disappointing with only 120,000 new jobs in March.
Much of the drop is likely payback from spurious statistical seasonal adjustment that
overstated activity during the winter. U.S. growth should pick up in the second half.
• In total, 17 of the 25 countries that report manufacturing Purchasing Managers’
Index (PMIs) had a reading above 50, indicating expansion (using the logistics
federation Chinese PMI). Of the eight with readings below 50 that show
contraction, six were in Europe.
• The U.S. manufacturing PMI was up a point to 53.4; the services PMI cooled to 56.0
from 57.3, bringing the composite PMI (a sector weighted average) down to 55.6
in March, from 56.5 in February. This is consistent with our view of softer growth in
the fi rst quarter.
• China’s economic data show no signs of further deterioration: manufacturing PMIs
hover around 50; the March service PMI ticked up to 58; and the Soufun 100-city
survey of house prices show a modest 0.3% decline in March with prices about the
same as the year before.
• The China Securities Regulatory Commission (CSRC) raised the quota for foreign
institutional investors to invest in Chinese fi nancial securities from $30 billion to $80
billion. This is another small step to opening fi nancial markets.
bond yields are rising once again. The long-term problem is infl exible labor markets,
particularly sky-high youth unemployment.
• Equity markets sold off mid-week as the minutes from the last Federal Reserve (Fed)
meeting seemed to indicate there was a higher bar to more monetary easing than
expected. Chairman Ben Bernanke clearly thinks there is enough slack in the labor
force to warrant keeping interest rates ultra-low for the foreseeable future.
• The U.S. payroll report was disappointing with only 120,000 new jobs in March.
Much of the drop is likely payback from spurious statistical seasonal adjustment that
overstated activity during the winter. U.S. growth should pick up in the second half.
• In total, 17 of the 25 countries that report manufacturing Purchasing Managers’
Index (PMIs) had a reading above 50, indicating expansion (using the logistics
federation Chinese PMI). Of the eight with readings below 50 that show
contraction, six were in Europe.
• The U.S. manufacturing PMI was up a point to 53.4; the services PMI cooled to 56.0
from 57.3, bringing the composite PMI (a sector weighted average) down to 55.6
in March, from 56.5 in February. This is consistent with our view of softer growth in
the fi rst quarter.
• China’s economic data show no signs of further deterioration: manufacturing PMIs
hover around 50; the March service PMI ticked up to 58; and the Soufun 100-city
survey of house prices show a modest 0.3% decline in March with prices about the
same as the year before.
• The China Securities Regulatory Commission (CSRC) raised the quota for foreign
institutional investors to invest in Chinese fi nancial securities from $30 billion to $80
billion. This is another small step to opening fi nancial markets.
Tuesday, April 10, 2012
NFO : KOTAK FMP SERIES 86
The New Fund Offer of the scheme Kotak FMP Series 86 (370 Days FMP). FMP opens on April 12, 2012 (Thursday) and closes on April 18, 2012.
MINIMUM INVESTMENT during NFO:
Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.
OPTIONS:
Growth and Dividend Payout.
INVESTMENT OBJECTIVE:
The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.
LISTING:
The units of the scheme(s) will be listed on BSE on allotment. The units of the scheme(s) may also be listed on the other stock exchanges.
BENCHMARK:
CRISIL Short Term Bond Index.
LIQUIDITY:
Units of this scheme will be listed on Bombay Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.
MATURITY:
370 Days after the date of allotment of units.
MINIMUM INVESTMENT during NFO:
Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.
OPTIONS:
Growth and Dividend Payout.
INVESTMENT OBJECTIVE:
The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme.
LISTING:
The units of the scheme(s) will be listed on BSE on allotment. The units of the scheme(s) may also be listed on the other stock exchanges.
BENCHMARK:
CRISIL Short Term Bond Index.
LIQUIDITY:
Units of this scheme will be listed on Bombay Stock Exchange. Investors may sell their units in the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. The units cannot be redeemed with KMMF until the maturity of the scheme.
MATURITY:
370 Days after the date of allotment of units.
Monday, April 9, 2012
Debt Market Update
. The G-sec market opened the truncated week on a weak note, being apprehensive about the huge supply lined up for the first half of FY13. The first weekly auction of the FY13 for Rs.180 Bn saw a devolvement of 1195 Cr indicating poor appetite for the bonds. However, value buying emerged post auction and the yields covered some of the lost ground towards the close of the trading week. Nevertheless, the 10 year benchmark yield hardened by 15 bps compared to the previous week, to close at 8.69%.
• RBI auctioned off G-sec worth Rs.180 Bn on 3rd April. The cut offs were as follows: 8.19%GS 2020 at Rs 96.80 (8.76%), 9.15% GS 2024 at Rs 102.31 (8.84%), 8.97% GS 2030 at Rs 99.70 (9.00%), 8.83% GS 2041 at Rs 97.65 (9.06%). RBI chose to devolve Rs 319.20 Cr of 8.19% GS 2020 and Rs 875.96 Cr of 8.97% on primary dealers.
• The cut off for 91 day T-Bill was set at 8.81% and for 364 day T-Bill at 8.34% respectively. The previous cut offs for 91 day T-Bill was 9.02% and 364 day T-Bill was 8.40%. The T-Bill auctions were fully subscribed.
• The activity in the corporate bond market was lack luster, with range bound activity. Tracking the weak sentiments in the sovereigns, the 5 year AAA and 10 year AAA bond ended the week in red at 9.63% and 9.59% respectively, up 8 bps. However, the credit spreads compressed by 5-8 bps, as the intensity of supply pressure is much higher in the G-sec compared to corporate bonds.
• Liquidity deficit improved supported by bond redemption to the tune of Rs.260 Bn and government spending. The average net LAF borrowing was lower at 1.23 Tn compared to Rs.1.76 Tn in the previous week. Some banks tapped the high cost marginal standing facility, due to shortage of SLR securities. While the call rates averaged around 9.15%-9.25%, the CBLO rates ranged between 7.7-8.25%.
• The money market yields softened quite a bit during the week as the liquidity situation started improving. While the 3 month CD rates moved down by 75 bps to close at 9.95%, the 1 year CD rates eased by 25 bps to close 9.95% for the week.
The Week Ahead :
• The yields have moved up quite sharply since the announcement of the borrowing calendar. The yields are likely to remain under pressure due to heavy supply going ahead. We expect the 10 year bond to trade in a broad range of 8.55%-8.75% range. However, the fear of any surprise OMO by RBI, as announced in the last week of March, and the expectation of rate cut in the April Policy to be announced on 17th April, may lend support to bond yields at the higher end of the trading range.
• The liquidity deficit is likely to be in the region of Rs.125-1.35 Tn. The corporate bond yields are likely to remain range bound and track the sovereigns, with little scope for further credit spread compression. The money market yields having come off from lofty levels prevailing in the month of March, is likely to remain range-bound, with possibility of mild upward bias on profit booking and fresh issuances. However, any major move on the money market yield could depend on further easing of liquidity situation as well as RBI's move in the coming monetary policy.
• RBI auctioned off G-sec worth Rs.180 Bn on 3rd April. The cut offs were as follows: 8.19%GS 2020 at Rs 96.80 (8.76%), 9.15% GS 2024 at Rs 102.31 (8.84%), 8.97% GS 2030 at Rs 99.70 (9.00%), 8.83% GS 2041 at Rs 97.65 (9.06%). RBI chose to devolve Rs 319.20 Cr of 8.19% GS 2020 and Rs 875.96 Cr of 8.97% on primary dealers.
• The cut off for 91 day T-Bill was set at 8.81% and for 364 day T-Bill at 8.34% respectively. The previous cut offs for 91 day T-Bill was 9.02% and 364 day T-Bill was 8.40%. The T-Bill auctions were fully subscribed.
• The activity in the corporate bond market was lack luster, with range bound activity. Tracking the weak sentiments in the sovereigns, the 5 year AAA and 10 year AAA bond ended the week in red at 9.63% and 9.59% respectively, up 8 bps. However, the credit spreads compressed by 5-8 bps, as the intensity of supply pressure is much higher in the G-sec compared to corporate bonds.
• Liquidity deficit improved supported by bond redemption to the tune of Rs.260 Bn and government spending. The average net LAF borrowing was lower at 1.23 Tn compared to Rs.1.76 Tn in the previous week. Some banks tapped the high cost marginal standing facility, due to shortage of SLR securities. While the call rates averaged around 9.15%-9.25%, the CBLO rates ranged between 7.7-8.25%.
• The money market yields softened quite a bit during the week as the liquidity situation started improving. While the 3 month CD rates moved down by 75 bps to close at 9.95%, the 1 year CD rates eased by 25 bps to close 9.95% for the week.
The Week Ahead :
• The yields have moved up quite sharply since the announcement of the borrowing calendar. The yields are likely to remain under pressure due to heavy supply going ahead. We expect the 10 year bond to trade in a broad range of 8.55%-8.75% range. However, the fear of any surprise OMO by RBI, as announced in the last week of March, and the expectation of rate cut in the April Policy to be announced on 17th April, may lend support to bond yields at the higher end of the trading range.
• The liquidity deficit is likely to be in the region of Rs.125-1.35 Tn. The corporate bond yields are likely to remain range bound and track the sovereigns, with little scope for further credit spread compression. The money market yields having come off from lofty levels prevailing in the month of March, is likely to remain range-bound, with possibility of mild upward bias on profit booking and fresh issuances. However, any major move on the money market yield could depend on further easing of liquidity situation as well as RBI's move in the coming monetary policy.
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