Wednesday, June 5, 2013
by
Indian Real Estate News
Invest In Tax Saving Mutual Funds Online
Call 0 94 8300 8300 (India)
Daiwa Mutual Fund, in less than three years of launching its operations in 2011, has decided to wind up its business and sell its assets to SBI Mutual Fund, India's sixth largest mutual fund house, for an undisclosed amount amid fierce competition and slowdown in the industry.
Daiwa Mutual Fund, which has an asset size of . 266 crore, is part of the Tokyo-based Daiwa Securities Group, a leading financial services company in Asia.
"This acquisition will help SBI Mutual Fund acquire a unique client base, which will increase its penetration in retail and HNI space. Daiwa AMC has built robust relationships with its distributors and SBI MF intends to leverage on those relationships to acquire new retail customers," said Deepak Chatterjee, MD & CEO at SBI Funds Management.
Experts say this is just the beginning of a consolidation phase in the mutual fund industry as smaller players are hit by higher marketing and distribution costs. Currently, there are around 50 players in the industry, and 40 of them are hardly making any money, with top ten players commanding nearly 75% of the market.
"The consolidation in the industry is likely to continue as industry faces tough times," said
Dhruva Chatterji, senior investment consultant at Morningstar. "We believe only those companies can survive which have strong distribution reach," Chatterji added.
Tough business conditions are forcing many asset management companies (AMCs) to either rope in strategic partners or exit asset management business completely. Among the recent deals in the mutual fund industry, Fidelity sold its entire asset management business to L&T Mutual, while Religare, Reliance Mutual, Axis MF, IDFC and LIC have tied up with stronger global players like Invesco, Nippon, Schroders, Natixis Global and Nomura, respectively. Interestingly, N Sethuram Iyer, chief executive officer of Daiwa Mutual Fund, is an ex-SBI Mutual Fund manager. The asset under management of Daiwa has dwindled sharply over the past few quarters to . 266 crore from . 789 crore in September 2012. SBI Mutual Fund manages around . 54,000 crore.
Industry experts, however, don't see much merit in SBI Mutual Fund going for such a smallsize acquisition. "We believe it does not make any sense for SBI Mutual Fund to acquire assets of Daiwa Mutual Fund," said Dhirendra Kumar, CEO at Value Research. "If you look at allocation of funds, around . 240 crore is invested in liquid funds, and . 25 crore in equity, which is not impressive from a business point of view," Kumar added.
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax Plan Invest Online
- HDFC TaxSaver Invest Online
- DSP BlackRock Tax Saver Fund Invest Online
- Reliance Tax Saver (ELSS) Fund Invest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) Fund Invest Online
- SBI Magnum Tax Gain Scheme 1993 Invest Online
- Sundaram Tax Saver Invest Online
- Edelweiss ELSS Invest Online
------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFunds Invest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
Posts
0 comments:
Post a Comment