Mutual Fund news 1 June 2009

Sundaram BNP Paribas Select Thematic Fund declares dividend

Sundaram BNP Paribas has declared dividend under the dividend option of Sundaram BNP Paribas Select Thematic Fund. The record date for the dividend is set as 05 June 2009.

The quantum of the dividend will be Rs 1.00 per unit i.e. 10% on face value of Rs 10 per unit on the record date. The scheme recorded a NAV of Rs 13.1324 unit as on 29 May 2009.

Sundaram BNP Paribas Select Thematic Fund is an open ended equity scheme with an objective to achieve long term capital appreciation by investing primarily the equity and equity related instruments of companies in the entertainment business.

Reliance MF declares dividend for Quarterly Interval Fund

Reliance Mutual Fund has declared dividend under dividend option of Reliance Interval Fund - Quarterly Interval Fund -Series III. The record date for the dividend is 05 June 2009.

The fund house has decided to offer dividend on the face value of Rs 10 per unit for both plans viz. retail and institutional plans. The quantum of dividend will be 100% of distributable surplus as on the record date.

The NAV for the scheme under retail plan was Rs 10.1382 per unit and under institutional plan was Rs 10.1449 per unit as on 28 May 2009.

Reliance Interval Fund - Quarterly Interval Fund, is a debt oriented interval scheme with an investment objective to seek to generate regular returns and growth of capital by investing in a diversified portfolio of Central and state government securities and other fixed income/ debt securities normally maturing in line with the time profile of the plan with the objective of limiting interest rate volatility

ICICI Pru Income Opportunities Fund announce changes

ICICI Prudential mutual fund has approved changes in minimum application amount and exit load structure of ICICI Pru Income Opportunities Fund. The proposed changes will be in operation from 1 June 2009.

Accordingly, the minimum application amount for all fresh purchases/switches for institutional option under the scheme will be Rs 10 lakh and in multiples of Re 1 thereafter.

Hereafter, the scheme will charge an exit load of 1.00% for an investment upto Rs 1 crore, if the amount sought to be redeemed or switched out is invested for a period of upto one year from the date of allotment and it will not charge any exit load if the amount sought to be redeemed or switched out is invested for a period of more than one year from the date of allotment. The scheme will not charge any exit load for an investment of Rs 1 crore and above.

The scheme is an open ended income fund that intends to generate income through investments in a range of debt and money market instrument of various credit ratings and maturities with a view of maximizing income while maintaining an optimum balance of yield, safety and liquidity.

Religare Gold Exchange Traded Fund seeks Sebi`s approval

Religare Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch new fund named as Religare Gold Exchange Traded Fund, an open-ended gold exchange traded fund. Each unit will have a face value of Rs.100 each and each unit is approximately equal to price of 1 gram of gold.

Details of the Religare Gold Exchange Traded Fund:

The scheme seeks to generate returns that closely correspond to the returns provided by investment in physical gold in the domestic market, subject to tracking error.

Minimum application amount: For retail investors, the minimum application amount will be Rs 5000 and in multiple of Re 1 thereafter. For authorized participants and large investors, the minimum application amount will be Rs 15 lakh and in multiple of Re 1 thereafter or 1 kilogram gold per application and in multiples of 1 kilogram gold thereafter. The gold should be of finesses of 995 parts per 1000, i.e. 99.5%.

The scheme seeks to collect a minimum corpus of Rs 1 crore during NFO period.

Asset allocation: The scheme will invest 90-100% in physical gold with medium risk profile. The fund will be having investment exposure up to 10% in debt and money market instruments with low to medium risk profile. Investments in securitized debts can be made by the scheme up to 10% of the net assets. The scheme may invest in warehouse receipts and other instrument having gold as underlying and units of international gold linked ETF, as and when permitted by Sebi.

Load structure during NFO period: The scheme will charge an entry load of 1.50% in respect of each purchase/ switch in of units less than Rs 15 lakh in value. In respect of each of each purchase/ switch in of units greater than Rs 15 lakh and less than Rs 50 lakh in value, 1.00% entry load is payable. In respect of each purchase/switch-in of units equal to or greater than Rs. 50 lakh and less than Rs. 1 crore in value, an entry load of 0.50% is payable while in respect of each purchase/switch-in of units equal to or greater than Rs. 1 crore in value, no entry load is levied.

However, the fund will not levy exit load.

Load structure during on going period: The Fund will not ask both entry and exit load.

Benchmark index: The performance of the scheme is being benchmarked to price of gold.

Fund manager: Gautam Kaul is the fund manager for the scheme.

Reliance MF rejoice Rs 1 lakh crore mark

Association of Mutual Fund of India (AMFI) has started to release the data of Average Asset Under management (AUM) of the mutual fund for the month of May 2009. Till now the data is available for only 3 fund houses.

AUM of Reliance MF jumped 16.23% in May 2009 over April 2009, as per AUM data released today. Reliance MF has crossed AUM of Rs 1 lakh crore that reached to Rs 1,02,730.16 crore in May 2009 from Rs 88,387.99 crore in April 2009.

AUM of Baroda Pioneer Mutual Fund soared by 85.09% to Rs 3483.36 crore in May from Rs 1882.01 crore in April 2009. Edelweiss Mutual Fund showed a rise of 41.61% in its average assets to Rs 20.63 crore in May from Rs 14.27 crore in April 2009.