Monday, October 15, 2012


October 2012

Capital market regulator, SEBI, has issued a general order with rejection criteria for draft offer documents for the protection of interest of investors. In case of rejection of draft offer document, the communication in writing will contain the reasons. With SEBI being stringent about rejection criteria for draft offer documents and vocal about the under-performance of existing equity funds, fund houses have been careful about launching new offers. In addition, the filings of equity fund offer documents had dried up in recent months in the wake of weak stock market trends. However, the stock market rallied by about 8% in September 2012 on the back of a slew of economic reform measures initiated by the Government. With stock markets getting into a buoyant mode, mutual funds are stepping up their draft filings with the regulator SEBI for new equity schemes. As per data available with SEBI, draft offer documents were filed for at least three equity mutual fund schemes in September 2012. In contrast, not a single draft offer was filed for equity mutual fund scheme in August 2012, while papers were filed for just one stock-focused scheme in the month of July 2012.

There is a sole hybrid capital protection-oriented NFO amidst the deluge of FMPs in the October 2012 NFO NEST, similar to the September 2012 NFO NEST.

Axis Capital Protection-oriented Fund – Series V

Opens: October 15, 2012
Closes: October 29, 2012
Axis Capital Protection-oriented Fund – Series V aims to protect the capital by investing in a portfolio of debt and money market instruments that mature on or before the maturity of the scheme. The scheme aims to provide capital appreciation through exposure in equity and equity related instruments. The fund will be managed by Mr. R. Siva Kumar.

R* Shares Consumption Fund, R* Dividend Opportunities Fund, India Bulls Balanced Fund, and Union KBC Capital Protection Oriented Fund Series 2 and 3 are expected to be launched in the coming months.

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