Personal finance Tuesday

A quick look at the latest developments in the world of personal finance

UTI is the first fund house to launch SIP investments via NSE-MFSS platform; Tata Housing ties up with MHFC to construct homes for urban lower income families in Vashind; MetLife launches new term insurance product online; DSP BlackRock MF floats DSP BlackRock FMP-3M-Series 22; Fortis MF introduces Fortis Fixed Term Fund-Series 17 D

UTI is the first fund house to launch SIP investments via NSE-MFSS platform

UTI Mutual Fund is the first fund house now to launch SIP investments (systematic investment plans) through the NSE-MFSS (Mutual Fund Service System) platform.
Terminals of NSE brokers will be the official point of acceptance and hence the date of acceptance of the transaction will be the date of entering the request on the terminal. Investors will also have the added advantage of obtaining the same day's net asset value (NAV) before 3pm at a number of outlets i.e. more than 1,500 towns and cities, including remote locations. The investors have an added advantage getting their units allotted in demat mode in addition to the existing physical mode as per their choice.

 Tata Housing ties up with MHFC to construct homes for urban lower income families in Vashind

Tata Housing has launched its latest project aimed at urban lower income families in Vashind, Maharashtra. The allotment for the homes (which are priced at Rs5.7 lakh for a 1 RK 360 sq flat and Rs7.8 lakh for a 1 BHK 489 sq flat) is on a public lottery basis.
To ensure that homes go to those who need housing, Tata Housing has kept aside a special quota of 208 flats (120-1 RK flats and 88-1 BHK flats) for Micro Housing Finance Corporation (MHFC) customers. As the Corporation provides housing loans only to urban lower income families who are buying homes to use them as residence.

MetLife launches new term insurance product online

MetLife India Insurance has launched a term insurance product Met Protect, the first such life cover plan by the company to be available online.
Met Protect would allow customers within the age group of 21-45 years to avail of life cover protection through the Internet.
Term Insurance is a product that provides protection only for a specified period of time.
Met Protect would offer customers single and semi-annual premium payment option, the first of its kind amongst all the term products available online.
MetLife India is a joint venture between the US-based MetLife International Holdings, The Jammu and Kashmir Bank, M Pallonji and other private investors.

DSP BlackRock MF floats DSP BlackRock FMP-3M-Series 22

DSP BlackRock Mutual Fund has introduced DSP BlackRock FMP-3M-Series 22, a close-ended income fund.
The primary objective of the Scheme is to seek capital appreciation by investing in debt and money market securities. It is envisaged that the Scheme will invest only in such securities which mature on or before the date of maturity of the Scheme. The Scheme may also use fixed income derivatives for hedging and portfolio balancing.
The Scheme opens on 19th October and closes on 20th October. The Scheme offers growth and dividend (payout) option. The exit load for the Scheme is nil. During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The minimum investment amount is Rs10,000. CRISIL Liquid Fund Index is the benchmark index. Dhawal Dalal is the fund manager. Mr Dalal says, "We expect to collect around Rs250 crore from DSP BlackRock FMP-3M-Series 22."

Fortis MF introduces Fortis Fixed Term Fund-Series 17 D

Fortis Mutual Fund has introduced Fortis Fixed Term Fund-Series 17 D, a close-ended income scheme.
The investment objective of the Scheme would be to achieve growth of capital by investing in fixed income securities maturing on or before the maturity of the Scheme. The Scheme opens on 19th October and closes on the same day. Maturity date of the Scheme would be three months from the date of allotment of units. The exit load for the Scheme is nil.
During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The Scheme offers growth and dividend (payout) option. The minimum investment amount is Rs5,000. CRISIL Liquid Fund Index is the benchmark index. The Scheme will be managed by Alok Singh.
 

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Sesa Goa's growth plans face delays due to hurdles

New Delhi: Iron ore major Sesa Goa today said it was awaiting regulatory clearances to go ahead with its domestic growth plans aimed at doubling its annual production capacity to 50 million tonnes by 2011-12, reports PTI.

"Primarily, we are awaiting various clearances to raise capacity of our mines," Sesa Goa managing director P K Mukherjee told PTI in a telephonic interview after announcing a 131% growth in its consolidated net profit for the second quarter of the current fiscal.

The London-listed Vedanta Group subsidiary has joined the chorus of global firms like ArcelorMittal and Posco that have decried delays in getting regulatory approvals for their mega- India projects.

The company had earlier announced to almost double its annual production capacity to 50 million tonnes by the end of 2011-12. Sesa Goa, the country's biggest iron ore exporter, has operations in Goa, Karnataka and Orissa.

The growth projections of 2012 envisage nearly doubling the production capacity of its Goa mines to 30 million tonnes and that of Karnataka to 10 million tonnes. It also includes augmenting the production capacity of Orissa mines to 10 million tonnes in next two years from the current 2 million tonnes.

"Any decision on Goa is on hold, pending the new Goa Mineral Policy. In Karnataka, our projects are in advanced stage of clearances. In Orissa, we have to renew contracts with local miners," Mr Mukherjee said.

Global steel giants ArcelorMittal and Posco have failed to launch combined Rs1.5 lakh crore worth steel projects in the states of Orissa and Jharkhand for the last five years, on account of regulatory hurdles and problems in land acquisition.

The company said it increased shipments from Goa to meet any shortfall in exports, arising due to Karnataka government's decision to ban movement of iron ore from some of its ports. Mr Mukherjee said he was hopeful of a favourable decision by Karnataka High Court in this regard.

The company had last evening announced that its profit for the second quarter more than doubled at Rs385 crore as compared to Rs166.46 crore in the same period of last fiscal.

"The biggest driver was iron ore prices. Then it was the 25% jump in volume. Also due to Karnataka ban, we did more from Goa, which has high margins," he added. The company on an average sold its iron ore at $72 a tonne as against $52 a tonne in the year-ago period.

Going forward, Mr Mukherjee said the company expected prices of high grade iron ore to hover in the range of Mr 140 a tonne.

"The demand as well as market sentiment is strong. In the last few days prices have gone up by $8-9 a tonne. There will be some blips here and there but by the end of the third quarter prices should range at $140 a tonne level for the 63.5 Fe content (high grade) iron ore," he added.
 

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SBI's debut bond sale oversubscribed over 17 times

New Delhi: The country's largest lender State Bank of India's (SBI) first retail bond issue of Rs1,000 crore was subscribed over 17 times on the opening day, showing enthused participation from investors, reports PTI.

The issue, which opened for subscription yesterday, will close on 25th October.

Market sources said that in the bond sale, the portion reserved for wealthy individuals (High Networth Individuals) was subscribed by over 16 times, while that reserved for retail investors was oversubscribed 6.4 times.

The offering comprises issue of bonds worth Rs500 crore, with an option to raise it further up to Rs500 crore by issuing additional bonds, with the total aggregating to Rs1,000 crore.

The bonds would offer an interest of 9.25% for 10 years and 9.5% for 15 years.

Citigroup, Kotak Mahindra Capital and SBI Capital Markets are the managers for the issue. The bonds are proposed to be listed on the National Stock Exchange of India (NSE).

The application size for retail investors in the issue is Rs5 lakh, for HNIs is Rs250 crore and for qualified institutional buyers (QIB) it is Rs250 crore.

Market sources said electronic subscriptions were not available for retail investors in the said issue.

They said that the market regulator Securities and Exchange Board of India (SEBI) has barred electronic subscription for retail investors to avoid confusion at the time of allotment. The bonds would be allotted to all categories on 'first-come-first-serve basis' based on the date of application.
 

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