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Bank of Maharashtra, State Bank of India to distribute Mutual funds
Source: PTI and DNA
Bank of Maharashtra and State Bank of India Funds Management have joined hands to distribute mutual funds of the latter through the bank's branches across the nation.
"Under the tie-up arrangement, Bank of Maharashtra will distribute the mutual funds," chairman and managing director, Bank of Maharashtra, Allen CA Pereira said in a release here.
Through this venture, 'Magnum Equity Fund', an open-ended equity diversified scheme, will offer investors growth-potential and capital appreciation to help plan for future needs in the medium to long term, it said.
"The tie up with Bank of Maharashtra is a part of our effort to expand our reach to the semi urban and rural investors. Our quality products would now be available to the customers of Bank of Maharashtra across the country. And with our superior fund performance and efficient customer service, we will be able to add value to the customers of the bank," SBI Funds Management, managing director, Achal Kumar Gupta said
SBI MF woos customers through new payment option
Source: NDTV Profit
The country's largest lender, State Bank of India, is wooing its over 4 crore customers to invest in its mutual fund entity via their debit card directly without the hassle of writing cheques or filling forms.
SBI Funds Management (P) (A joint venture between State Bank of India and SGAM) has become the first fund house to introduce new payment option (for investment), offering online investment in SBI Mutual Fund schemes through State Bank of India`s ATM cum Debit cards.
"Our aim is to increase our reach and with online now increasingly being the preferred route for transacting, it will help us get investor especially those who don’t have an online banking account especially those in tier 2 and 3 cities," said Achal Kumar Gupta, MD of SBI Mutual Fund.
The move, say experts, may definitely help bank-owned fund houses and may force private fund houses to follow suit and seek partnerships with banks.
While investing in a mutual fund is still not as easy as withdrawing money from your ATM but it has come a long way. Now, fund houses want to ensure that they tap as many investors as possible and the investor isn’t complaining either.
How successful will this initiative be is the key question. NSE and BSE's order routing platforms that allow investors to buy fund schemes through their stock brokers has not seen any success. But will the debit card facility do the trick, will depend on how fund houses push the idea.
SBI Debt Fund Series -13 Months 9
Source: Financial Chronicle
SBI Debt Fund Series -13 Months 9 has declared up to 100 per cent of distributable surplus as dividend
SBI MF launches PSU NFO
SBI Mutual Fund has announced the launch of its SBI PSU Fund. It is an open-ended equity fund.
The fund will mainly invest in a basket of stocks of Public Sector Undertakings (PSUs) and a small portion in debt instruments issued by PSUs. While it will invest up to 100 per cent in equities of PSU, it may also allocate up to 35 per cent in debt.
Through this fund, the fund house aims at capitalising on stored value through disinvestment. Disinvestment tends to improve price discovery, valuation and liquidity of such stocks.
The fund will cherry pick PSUs that are likely to emerge as more robust and vibrant players in different industries of the economy as the disinvestment process takes place.
The industries where PSUs have a strong presence are infrastructure, exploration and exploitation of oil and natural resources, technology development and capital goods.
Currently there are two other funds falling under the equity category which follow a similar investment strategy - Sundaram BNP Paribas PSU Opportunities Fund (launched in December 2009) and Religare PSU Equity (launched in October -2009). Others are ETFs -- Kotak PSU Bank ETF and PSU Bank BeES.
The reasons why one could look at an NFO based on PSUs are as follows: PSUs have strong fundamentals, are generally a leading players in their industries and in many cases are near monopolies. These companies also showed greater resilience than their private sector counterparts during the economic downturn. Hence the PSU investment theme looks promising.
However, the fund's true potential lies in eventual privatisation which leads to significant value unlocking. This looks unlikely in the foreseeable future. What the government is doing currently is merely dilution of its stakes. Also, nothing prevents a diversified equity fund from investing in PSUs when opportune, while a PSU Fund will be constrained to invest in PSUs only.
SBI PSU Fund will be managed by Rama Iyer Srinivasan, who holds 16 years of experience in the area of financial services, apart from holding an M.Com and MFM degree. Presently Srinivasan is also the fund manager of Magnum Equity Fund , Magnum Global Fund Magnum Sector Funds Umbrella - Emerging Business Fund and SBI Infrastructure Fund - Series I.
The fund will be benchmarked against BSE PSU Index. The fund offers both growth and dividend options. One per cent exit load is applicable if you redeem within three years and none thereafter. The minimum application amount will be Rs 5,000. The new fund offer (NFO) opens on May 17, 2010 and closes on June 14, 2010.