The Hindu Business Line : `Banks' deposit mop-up unlikely to affect MFs'

Emerging macro-economic indicators would possibly necessitate a hawkish approach while setting the rates next, according to Mr B. Sukumaran, Managing Director, Canbank Invest Management Services.

But he was confident that the inflation rate would be managed at below 5.5 per cent. "Anything above 6 per cent will be worrisome; but this is unlikely since, by the Finance Minister,Mr P. Chidambaram's own admission, the inflation could be attributed to poor supply-side mechanics. This could, in turn, be set right by resorting to judicious imports, to be financed by the huge forex surplus at the Reserve Bank's disposal."

Mr Sukumaran also brushed aside concerns that the enthusiasm of banks to mobilise deposits might affect the mutual funds industry.

"Bank deposits have been growing at 20 per cent at best, while mutual funds over the last eight months have grown at around 70 per cent. We are confident the year-on-year growth rate will average at around 50 per cent."

Mr Sukumaran was here as part of the AMC's road show for CanMulticap, a close-funded equity fund that invests in equities in the large cap, mid cap and small cap segments. The new fund offer opened for subscription on December 6 and would close on January 4.

Survey findings

Internal surveys conducted by the AMC showed that 78 per cent of the day traders lost their investments in the market during May-November this year. Only 22 per cent made any gains at all.

"It is our intention that investors stay invested for a reasonable period of time. Five years, which is the redemption period for CanMulticap, is a reasonable period to stay invested," Mr Sukumaran said.

The AMC, which currently manages average assets of Rs 3,000 crore, hopes to collect Rs 1,000 crore through CanMulticap. The fund house proposes to launch two more schemes: the Can Fixed Maturity Plan, a debt scheme; and Can Arbitrage, which will be deployed to play in the cash and forward markets.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rain & sleet in North, alert on fog

Daewoo buy: Videocon seeks 13 pc discount on agreed price

GMR-Siemens to redefine airport experience in Hyderabad

`We cannot go back on Singur'

SAP bets big on small, medium size firms

Sensex gains 236 points; volumes remain low

SBI hikes lending rates by 50 basis points

`Banks' deposit mop-up unlikely to affect MFs'

`Virus threats, spam to remain areas of security concern in '07'

Govt may allow FDI in sector-specific retail trade

Retail sector sees big bucks, big players in 2006