Mutual Funds

Your limit goes up

| Updated on May 25, 2014

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Don’t have a PAN card, yet want to invest more in mutual funds? You can now invest up to ₹50,000 annually in mutual fund schemes. SEBI last week hiked the cash transaction limit in mutual fund schemes to ₹50,000 from the erstwhile level of ₹20,000. This will help mutual funds tap small investors in rural areas who have neither PAN cards nor bank accounts.

Shuffle, shuffle

LIC Nomura Mutual Fund has appointed Killol Pandya to manage its debt funds, including LIC Nomura MF Bond Fund, Government Securities Fund and Fixed Maturity Plans, among others, with effect from May 20. The funds were earlier managed by YD Prasanna.

Tata Mutual Fund, too, announced changes in the fund manager of its debt schemes. Tata Floater Fund, Tata Floating Rate Long Term Fund and Tata Treasury Manager Fund will now be managed by Amit Somani. Raghupathi Acharya has been appointed as the fund manager of Tata Income Fund, Tata Income Plus Fund, Tata Treasury Manager Fund and Tata Short Term Bond Fund. Earlier, these schemes were managed by Marzban Irani. The changes are effective from May 21.

Merger and after

After acquiring Morgan Stanley’s mutual fund business, HDFC Mutual Fund has announced merger of the eight funds taken over from Morgan Stanley. Morgan Stanley Growth Fund will now be HDFC Large Cap Fund and Morgan Stanley ACE Fund will be HDFC Small and Mid Cap Fund. The Morgan Stanley Gilt Fund is renamed HDFC Inflation Indexed Bond Fund. The other short-term debt funds will be merged with the respective HDFC debt funds in the same category.

There are some changes within HDFC funds too. HDFC Short Term Fund will see some changes in its asset allocation and investment strategy, with the objective of maintaining an average maturity profile of one to three years, as against the existing 9-18 months. HDFC Focused Large-Cap Fund will now be merged with HDFC Equity Fund. The fund will invest in medium to large-sized growth companies.

FMPs on offer

If you are looking to lock into higher rates, here are a few FMPs and new fund offers to consider. This includes Birla Sun Life Fixed Term Plan Series, IDFC Fixed Term plan, LIC Nomura FMP and Tata FMP, all with tenures of a little over a year.

Published on May 25, 2014

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