Drop in sales, higher redemptions and a poor show by NFOs resulted in an outflow of Rs286 crore from equity-oriented mutual funds in June 2012
After a marginal pick up in equity inflows in May, sales of equity mutual funds failed to keep up the pace. This, along with increased redemptions, takes the total outflows from equity mutual funds for the first half of 2012 up to Rs3,599 crore, according to data released by Association of Mutual Funds in India (AMFI). Sales for June 2012 dropped by 8.56% to Rs3,057 crore from Rs3,343 crore reported in May 2012 whereas redemptions increased to Rs3,343 crore last month from Rs2,923 crore in May.
Two new fund offers launched in the month failed to rake in any cash, as well. Both the NFOs-Baroda Pioneer Banking & Financial Services Fund and IIFL Dividend Opportunities Index Fund-put together brought in only Rs73 crore. Sundaram Equity Plus and Union KBC Equity Fund which were launched around the same time last year brought in Rs134 crore and Rs167 crore each. Axis MF was expected to raise Rs200 crore to Rs250 crore from its NFO Axis Focused 25 Fund which was open for subscription in June. Though the numbers have not been declared in the AMFI report, media reports suggest that the new scheme has garnered close to Rs 250 crore with around 16,000 retail folios. If we go by these reports, equity inflows for July 2012 would receive a significant boost.
Fund houses have been reluctant to launch their NFOs despite filing their offer documents with the Securities and Exchange Board of India (SEBI). From April 2011 to April 2012, there were 17 offer documents filed for launch of equity mutual funds, however, in the same period just seven NFOs were launched. Excluding the NFOs of Sundaram Equity Plus and the Union KBC Equity Fund, the remaining NFOs could bring in just Rs53 crore. Dropping retail participation and volatile market conditions have made fund houses hold back the launch of the NFOs. Fund companies usually wait to launch NFOs in rising market conditions as an asset gathering strategy.
In terms of assets under management, the average AUM of equity mutual funds went up by 5.40% to Rs1.80 lakh crore from Rs1.70 lakh crore in the previous month. The equity market represented by the Sensex went up by 7.47%.
Greaves Cotton would continue to supply diesel engines for Atul Auto for seven more years
Mumbai: Greaves Automotive Engines Business, part of Greaves Cotton Ltd on Thursday said it signed a long term agreement with Atul Auto Ltd for supplying diesel engines for the automaker's three wheeled vehicles, reports PTI.
The agreement comes into force with immediate effect and is for a period of seven years. Currently, Greaves engines power Atul Smart, Atul Shakti and Atul Gem vehicles plying across the country, a statement from the company said.
"Greaves engines have been driving vehicles from the Atul Auto stable for almost three decades. With a customer focused approach, we believe that our technologically superior engines backed by a strong after market network will compliment Atul Auto's business plans and will together help grow the business," Greaves Auto CEO Sanjiv Kumar said.
"With emerging categories in the auto segment we believe that new vehicle platforms can be developed faster and more time efficiently with a partner we can trust," Atul Auto CMD JJ Chandra said.
Greaves Automotive Division produces a wide portfolio in automotive engines and in single cylinder engines they are among the largest independent manufacturers with a production of over 4.5 lakh engines annually. The eco-friendly light diesel engines are supplied to major automotive players like Piaggio, M&M, Tata Motors, Scooters India among others.
The company has manufacturing units located at Ranipet in Tamil Nadu and Aurangabad in Maharashtra.
While rejecting the Mysore Sandal Soap manufacturer's claim, the arbitrator also dismissed Dhoni's counter-claim of Rs6 crore as damages from the state-run company
Bangalore: An arbitrator has rejected state-owned Karnataka Soaps and Detergents Ltd demand of Rs6.5 crore as damages from cricketer Mahendra Singh Dhoni for alleged breach of a contract with it, reports PTI.
While rejecting the Mysore Sandal Soap manufacturer KS&DL's claim, arbitrator R Gururjan also dismissed Dhoni's counter-claim of Rs6 crore as damages from the state-run company for alleged violation by some of the terms of the contract with him.
The claim and counter-claim was rejected by the arbitrator at Bengaluru on 10th July.
Dhoni had entered into a two-year contract with KS&DL for years 2007 and 2008, as per which he was to be paid Rs70 lakh for a 10-day shooting of an endorsement for its product.
KS&DL, however, accused Dhoni of not fulfilling the requirements of the contract due to his busy schedule and claimed Rs6.5 crore as loss of income.
In his rejoinder, Dhoni had alleged that KS&DL had violated clauses in the contract and he was paid only Rs21 lakh and sought Rs6 crore as compensation.