Mutual Funds
Five MF houses to discontinue 190 schemes for investment through SIP

Reliance MF, ICICI Pru, HSBC, Morgan Stanley and IDFC Mutual Funds have decided to discontinue about 190 schemes for subscription through existing SIPs

 
New Delhi: Five mutual funds, including leading players like Reliance and ICICI Prudential MF, has listed out a total of 190 schemes that would be discontinued for fresh systematic investment plan (SIP) investments to comply with guidelines issued by Securities and Exchange Board of India (SEBI), reports PTI.
 
The move follows new regulations by SEBI, which require fund houses to launch only one plan per scheme with effect from this month.
 
Consequently, Reliance MF, ICICI Pru, HSBC, Morgan Stanley and IDFC Mutual Funds today communicated the required changes in their schemes to the BSE, where many of their schemes are listed for trading.
 
Together, a total of 190 schemes of these five fund houses would be discontinued for subscription or registration in existing SIPs.
 
SIP offers the mutual fund investors an option to invest as low as Rs100 per month and have gained popularity in the market in recent past.
 
However, many fund houses have launched multiple SIP plans under one scheme, prompting market regulator SEBI to ask the fund houses to move to 'single plan per scheme' model in a move to make the investment process simpler for investors.
 
The five fund houses have also communicated to the BSE a list of 22 schemes where the Minimum Purchase Amount and Additional Purchase Amount have been lowered as per SEBI guidelines.
 
All the proposed changes would be effective immediately and are part of wide-ranging reforms notified by SEBI recently.
 

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Federal Bank to offer home loans at 10.45% for few days

Federal Bank if offering home loans at its base rate between 3 to 18th October as part of 67th anniversary of its founder's day celebrations

 
Mumbai: Federal Bank has said it would offer home loans at its base rate, which is pegged at 10.45%, from 3rd to 18th October as part of the 67th anniversary of its founder's day celebrations, reports PTI.
 
The Kochi-based private sector bank will also offer discounts in some other segments during this period, a statement from the bank said.
 
The bank, which has 1,010 branches spread across the country, had total business of Rs86,693 crore by end of the last fiscal.
 

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RBI aiming to ensure gold lending risks are controlled: Gokarn

RBI had asked banks to reduce exposure to NBFCs giving loan against gold and think this would control the risks in lending towards the precious metal

 
Chennai: The Reserve Bank of India (RBI) is only trying to ensure that risks of lending towards gold are "controlled" by its regulatory steps like tightening prudential norms, reports PTI quoting the central bank's Deputy Governor Subir Gokarn.
 
In major steps, RBI had asked banks to reduce exposure to NBFCs giving loan against the precious metal and set up a working group to suggest ways to deal with the issue.
 
It had also tightened the prudential norms to check excessive lending by NBFCs.
 
"I think what we have been focused on is that the risks in lending towards gold are controlled. That is the basis for our actions with respect to gold loan companies from some months ago," Gokarn said to a particular query by reporters on the sidelines of a conference here.
 
"We are not here to discourage or encourage anything. But we are sure that it should not build up into a systemic risk," he added.
 
Rising gold imports was held as one of the factors responsible for pushing the current account deficit (CAD) to a record high of 4.2% in last fiscal.
 
Last month, Finance Minister P Chidambaram while announcing approval to Rajiv Gandhi Equity Scheme to attract more retail investments in stock market, said: "It (scheme) will act as alternative financial instrument and encourage more people to invest in this instrument rather than gold, which is a dead instrument."
 

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