The Hindu Business Line : Fund update

Top-U plan: For the first time in India, systematic investment plan with a feature of a “Top-Up” in the mutual fund industry has been announced by ICICI Prudential Asset Management Company. This feature allows the investors to increase their periodic investment through an automated route in multiples of Rs 500, on a pre-determined and regular basis.

The key benefits of the scheme are that it offers the flexibility to top up investment at pre-determined intervals of six months or 12 months. The automatic features provide execution ease in the investment process and reduce the efforts required by market participation.

Assets under management of mutual fund registered a rise of 5.8 per cent to Rs 6 lakh crore in May 2008 compared with Rs 5.67 lakh crore in April 2008. The assets under management of the fund of funds was Rs 1,349.61 crore in May 2008.Out of the total of Rs 6 lakh crore, nearly 50 per cent is cornered by top five players. Of the 33 fund houses, 25 registered a rise in assets under management in May.

Reliance Mutual Fund continued to be at the top with assets under management of Rs 98,430.93 crore, followed by ICICI Prudential Mutual Fund (Rs 59,060 crore). HDFC Mutual Fund has moved up the slot to third position with assets of Rs 56,107.3 crore.

The top three funds witnessing a rise in the AUM included AIG Global Investment Group Mutual Fund (19.86 per cent), LIC Mutual Fund (15.57 per cent) and Canara Robeco Mutual Fund (12.97 per cent).

Franklin Templeton Mutual Fund witnessed an outflow of Rs 640.76 crore I May.

DSP Merrill Lynch Fund managers has launched a six-month FMP, DSPML FMP 6 Months Series 6. The NFO closes on June 10. The Minimum investment is Rs 25,000 in regular plan and Rs 1 crore in institutional plan.

There will be no entry load during the NFO but an exit load of 0.75 per cent for redemptions before maturity date.

Fidelity India AMC has planned to start distribution agency. Fidelity India is the first fund house to start a distribution agency that will distribute the products of all fund houses in the country.

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