HDFC Mutual Fund recently announced the acquisition of the schemes of Morgan Stanley Mutual Fund
HDFC Mutual Fund today announced the signing of a definitive agreement for it to acquire all the eight schemes of Morgan Stanley Mutual Fund in India. Morgan Stanley has been into the business for nearly a decade and has at present eight schemes with the average assets under management equalling Rs3290 crores. HDFC Mutual Fund has been among the top asset managers and has the largest assets under management.
According to a press release by the company, “The agreement is subject to regulatory approvals as required.” Mr. Milind Barve, Managing Director of HDFC Asset Management Company Limited said, “HDFC Mutual Fund has acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family.”
Morgan Stanley has done reasonably well as a fund house, and out of the 47 fund houses in existence, it has been among the better half of fund houses in terms of performance of its equity schemes. However, with the heavy outflow of assets over the recent few years, many fund houses have found the business unviable. Last year, we saw Fidelity Mutual Fund exiting the business selling its assets to L&T Mutual Fund. The regulator has tried hard to induce new fund inflows but has failed in its efforts. Over the past 12 months equity mutual funds have registered a net outflow of Rs12,949 crore.
Moneylife has been constantly highlighting declining sales of mutual funds which has a lot do with the attitude of both fund companies and the regulator. The actions of the Securities and Exchange Board of India (SEBI) have been consistently ill-informed and capricious. After the regulator abruptly banned upfront commissions in August 2009, SEBI has been trying to tinker around with the rules without any clue about how the buyers (investors) and the sellers (distributors) perceive equity funds.
The Special Court termed the purchase of the flat by Citi Limousine chief Masood as 'proceeds of crime', who was involved in money laundering by defrauding the hard earned money of gullible investors
A Special money laundering Court in New Delhi has ordered attachment of a flat worth over Rs22 lakh belonging to Sayed Mohammed Masood, chairman of Mumbai-based ‘City Limousine' that has duped thousands of investors through its money-circulation scheme.
The case had shot to prominence last year after the Enforcement Directorate (ED) got a first-time access to freeze Swiss bank accounts of Masood, whom the agency is probing for floating illegal ponzi (fraud investment plans) schemes by promising extraordinary returns which were not honoured.
The agency is probing the case under the Prevention of Money laundering Act (PMLA) alongside the Economic Offences Wing (EOW) of Mumbai Police.
Subsequent to pressing these laundering charges, the ED provisionally attached a flat in Pune’s Wakad area in the name of Ryewood Retreat Motels, which has Masood as its Additional Director.
The Adjudicating Authority, under Chairman K Ramamoorthy, for PMLA offences termed the purchase of the flat “as proceeds of crime” and that it is involved in money laundering by defrauding the hard earned money of gullible investors.
The probe agencies had filed a charge sheet in this case last year stating that close to 28,000 complaints from the investors were received by them in this regard and Masood’s companies had cheated investors to the tune of more than Rs500 crore.
Nifty has to stay above 6,280 and make higher highs, to keep the short-term rally going.
The markets opened up and moved mostly tentatively sideways throughout Monday, before a late sell-off sent it careening downwards. However, it finished in the green. Even though Nifty closed above 6,280, it would need to do so in the coming days to show some strength and keep the short-term rally going. This is more pertinent even after International Monetary Fund (IMF) sounded upbeat over the strength of US economy. However, IT sector was seen trending down despite this news. It shows that markets are nervous still. But a major directional move may only come in January next year, as elections get closer.
The 30-share BSE Sensex opened at 21,080 while the 50-share NSE Nifty opened at 6,267. The Sensex moved from the level of 21,207 to the level of 21,059 and closed at 21,101 (up 21 points or 0.10%) while the Nifty hit a high of 6,317 and closed at 6,284.50 (up 10.25 points or 0.16%) after hitting a low of 6,266.
CNX IT and CNX Media were hit the most, falling down 1.08% and 0.52% respectively. Most indices finished in the green. CNX Realty and CNX Metals finished strong, moving up 3.35% and 1.57% respectively.
Of the 50 stocks on the Nifty, 32 ended in the green. The top five gainers were Jindal Steel (5.41%); PNB (4.46%); DLF (4.17%); Hindalco (3.47%) and Grasim (2.71%). The bottom four losers were Infosys (-2.38%); Tata Power (-1.87%); HDFC (-1.48%); Lupin (-1.03%) and Asian Paints (-0.94%).
The Reserve Bank of India (RBI) governor, Raghuram Rajan, stated that despite a fall in the current account deficit India is not out of the woods yet, so to speak, and hopes to make rupee a worthy currency to invest in. He has also stated that as much as $26 billion dollars were brought in through the swap facility opened by RBI. He also said that the government response to food inflation needs to be improved by debottlenecking the supply-side. On a related note, the government has stated that it may permit oil marketing companies to hike transport fees for LPG cylinders.
Today, the global markets were upbeat overall on IMF renewed optimism over the US economy. Both European and Asian markets were trending up, when Christian Lagarde, IMF chief, said in a TV show on Sunday that she sees more growth and certainty in the world’s largest economy in 2014. She gave a rosier view after the US Federal Reserve decided to taper its bond buying program.
With the exception of Spain, most European markets were trending up. FTSE and DAX were nearly half a percent up. Similarly, Asian markets were up led by Hang Seng and Shanghai, moving up 0.48% and 0.25% respectively. Nikkei finished flat with an upwards bias.
At the same time, gold seems to be taking the fall amidst its worst year in years, signaling that years of upwards movement maybe finally coming to an end (in dollar terms). After the US announced tapering, it fell 2.5%. Currently, gold futures are quoting $1,201 an ounce, and are trading downwards in the futures market. Gold has lost 29% so far this year, in dollar terms.