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Bank of India is returning to the asset management industry after a long interval, by buying a 51% stake in Bharti Axa Investment Managers. Bharti Axa is a joint venture between Bharti Ventures and the Axa group. Bharti had decided to exit its financial services joint ventures with Axa, in the insurance and asset management businesses.
Continue ReadingEntry load in the guise of transaction charge for subscription
Sebi has said that distributors will now be allowed to charge Rs 100 per subscription for investments below Rs 10,000. A first-time mutual fund investor will have to pay Rs 150.
Impact:
Continue ReadingSebi has issued a new circular to all mutual funds, barely a week after its rule banning entry loads came into effect. The capital market regulator has told mutual funds to charge exit loads uniformly to all investors. The move plugs any possibility of mutual funds compensating for the lack of entry loads by recovering expenses from retail investors, when they exit a scheme.
India’s economic actions today resembled that of the US today: concerted action to restore confidence in the monetary system. Strange, that the system should have been exposed to be so weak when we supposedly had none of the rot that had permeated the US banking system. Makes one really wonder what went wrong. Maybe we will get to know sometime; at present all one knows is that there is a liquidity crunch, which is being blamed on various factors, ranging from rising credit demand, drying overseas fund markets, FII outflows and whatever else.
Continue ReadingMutual fund investors in India recently got a reprieve from entry loads, on investments made directly and not through an intermediary. Now, Sebi has given them another piece of good news; a bright spot in an otherwise gloomy equity environment. MF investors will not have to suffer entry loads on bonus units and units given on dividend reinvested.