Dhanvarsha 4 and 5 transferred to LICLIC Mutual fund's Dhanavarsha 4 and Dhanavarsha 5 will now be one investor funds like Canbank's Canstar. LIC Mutual Fund is transferring the ownership of the units to Life Insurance Corporation for the two schemes. On redemption (Dhanavarsha 4 on March 31, 1998 and Dhanavarsha 5 on July 31, 1998), LIC will pay around Rs 630 crore to the unit holders for the ownership of the two funds with assets of around Rs 440 crore.
Life Insurance Corporation will now be the sole investor in units of Dhanvrasha 4 and 5. The scheme will thus be a personal portfolio scheme of LIC. However, LICMF will continue to manage the assets of the two funds. In the case of Canstar, Canara Bank had to step in and buy the units from investors at a price of Rs 23 while the NAV was hovering at Rs 11.
Despite the shortfall in Dhanvarsha 4 and 5, LIC MF is launching another assured income fund, Dhanavarsha 12. The new scheme is to open for subscription from April 1.
LIC MF will assure amonthly income of 12.5 per cent per annum under the monthly income plan and an annual income of 13.24 per cent per annum during the first year.
LIC MF mopped up around Rs 50 crore in Dhanavarsha 11 which closed for subscription in February.
Short-term debt funds from DSP, Reliance
Reliance Capital Mutual fund launched its quasi money market fund on March 17. The other short-term debt fund is from DSP. Both the funds will primarily invest in money market instruments.
The fund, aimed at short term corporate investments will be available on a no load basis. Reliance Mutual fund had earlier launched its bond fund in December.
Meanwhile, DSP Liquidity fund is open for continuous sale and repurchase from March 16. The fund is available on a no load basis for investments over four days. DSP Merrill Lynch Asset Management has raised Rs 26 crore through the initial offer of the quasi money market fund which was open for subscription between March 6-9.
The fund has been extended to Delhi, Calcutta,Chennai and Bangalore on reopening for subscription and redemption on an ongoing basis from March 16.These short-term debt funds target the short-term surplus with corporates and high networth individuals.
MMIS '98 mobilises Rs 100 cr
SBI Mutual Fund has mobilised around Rs 100 crore in its Magnum monthly Income Scheme 1998 (MMIS '98). The scheme, which closed on March 18, managed to raise another Rs 40 crore after it was extended till March 19 while the initial closing date was March 4.
However, the amount mopped up by the scheme falls short of the initial expectation of around Rs 300 crore. MMIS '98 (I) is a close-ended scheme with a tenure of five years and offers assured returns of 13.24 per cent annually and 12.5 per cent on a monthly basis.
The scheme was extended since the AMC had received an approval from the Maharashtra Government, which recognised MMIS '98 as a public security. This makes the scheme eligible for investments from charitable institutions in Maharashtra. The interestincome of these institutions is tax-free. A bulk of the Rs 40 crore received during extension has come from charitable institutions.
UTI offers 13.5 % in IISFUS
The Unit Trust of India (UTI) has pegged the interest rate for this year's first Institutional Investors Special Fund Unit Scheme (IISFUS) at 13.50 per cent per annum for its entire tenure. While the fund has set a target of Rs 1,000 crore for the scheme, it hopes to mobilise at least Rs 800 crore owing to ICICI's bond issue which has pegged its coupon at 14 per cent.
Interestingly, besides the 1993 institutional fund which mobilised Rs 1277 crore on a 16 per cent per annum promise, none of its IIFUS have mobilised Rs 800 crore.
UTI had mobilised Rs 996 crore in its two IISFUS launched in 1997.
While IIFUS '97 had promised a 15 percent per annum return for its entire tenure, IIFUS '97 (II) had mobilised Rs 321 crore on a promise of 12.75 per cent.
AMFI for relaxation in disclosure norms
The Association of Mutual Funds inIndia has decided to approach the Securities and Exchange Board of India for relaxation of some guidelines for disclosures in the standard offer document.
AMFI wants only the relevant issues from investigation reports to be disclosed in the offer document.
AMFI also wants the clause on providing information for all schemes to go as it is cumbersome.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
