The Hindu Business Line : Greater leeway for MFs in F&O market

Mutual funds have been given greater leeway to participate in the futures and options market. They will now be on par with the FIIs. So far they have been allowed to invest in such products for hedging and rebalancing of portfolios.

Mutual fund houses will now be considered as trading members and their funds treated as clients (similar to sub-accounts of FIIs). The position limits for index futures, stock futures, index options and stock options will be similar to those fixed for FIIs.

ING Vysya Mutual has launched ING Vysya Dividend Yield Fund. The new fund offer will close on October 6. The fund will invest in equities that offer a high dividend yield. The fund offers dividend, growth and bonus options. The minimum investment is Rs 5,000.

LIC Mutual's Fixed Maturity Plans opened for investment on September 16. The fund offers plans that cover six months and one year. This is a close-end fund without the promise of assured returns. The new fund offer period closes on September 20.

Kotak Mahindra Mutual has launched Kotak Cash Fund that will invest on the premise that inefficiencies between the spot and futures market provide opportunities. The investment style will enable the fund to earn better returns than a liquid fund.

The fund will invest in debt/money market instruments. The offer is open for investment till September 21. The minimum investment is Rs 5,000.

Deutsche Mutual plans to launch a close-end balanced fund with a maturity period of three years; there will be no assured returns. The fund, to be christened Deutsche Stable Growth Fund, will offer two classes of units.

Class A units will get 30 per cent of the return on equities and have priority over Class B units at the time of maturity. The fund house also plans to launch an equity fund that will invest in stocks in the infrastructure space.

Prudential ICICI Mutual plans to launch an equity fund that will invest in companies offering outsourcing services.

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