MFs in December 2000 -- Inflows match the outflows

S. Vaidya Nathan

DECEMBER 2000 was not a particularly good month for mutual funds as far as net flows go. The following are the significant points for December 2000:

*Inflows into mutual funds (sales) totalled Rs 7,872 crore, an increase of 41 per cent over December 1999;

*Outflows were of the order of Rs 7,825 crore, a rise of 44.2 per cent over the previous month, and 50.6 per cent over December 1999;

*The net flows were Rs 47 crore, against Rs 634 crore in November and Rs 387 crore in December 1999;

*Close to 83 per cent of the fresh inflows came to private sector funds, while the UTI accounted for 10 per cent;

*But the UTI appears to have accounted for a larger share of around 24 per cent of total redemption;

*UTI has had net outflows of Rs 1,046 crore, while private sector funds had net inflows of Rs 1,099 crore.

*As far as inflows go, 35 per cent went into income funds and 41 per cent into liquid funds. The growth fund accounted for 22 per cent of inflows.

*In redemptions, income funds accounted for 30.7 per cent and liquid funds for 44 per cent. Growth funds accounted for 21 per cent of the outflows.

*The assets under management as of December 2000 were Rs 99,326 crore _up 2.3 per cent over December 1999 and less by 0.20 per cent over November 2000. The UTI had a share of 64.7 per cent _ down five percentage points year on year. The private sector funds have gained with a rise of 8 percentage points, and their share at the end of 2000 was 28.2 per cent.

Click here for Table

US'95 dividend: The Unit Trust of India has announced an interim dividend of 10 per cent for 2000-2001 for the open-end balanced fund, US-95. The book closure for the dividend would be between January 22 and January 25.

Zurich India Equity: Zurich India Mutual Fund has declared a dividend of 17 per cent (Rs 1.70 per unit) for Zurich India Equity Fund. The fund had announced a 30 per cent dividend in March 2000.

662HDFC Children's Gift Fund: HDFC Mutual Fund has launched a HDFC Children's Gift Fund. The fund which is a balanced fund would be open for subscription between January 25 and February 2. This is an open-end fund.

Magnum Gilt Fund: SBI Mutual Fund extended the initial offer period of its Magnum Gilt Fund scheme by a day. The scheme closed for subscription on December 22.

MIP from SBI Mutual: SBI Mutual Fund is planning to launch an open-ended monthly income plan by end of this fiscal. It has filed for SEBI approval.

US-64 prices: The Unit Trust of India has fixed the sale price and repurchase price for US-64 at Rs 14.20 per unit and Rs 13.90 per unit respectively for January. These prices represent a 20-paise rise over the December prices.

Approved securities: Seven open-end equity and debt schemes of SBI Mutual Fund were declared approved securities by the Government of Maharashtra. Charitable and other trusts, which usually invest only in government-approved securities, can now invest in MagnumInsta Cash Fund, Magnum LiquiBond, Magnum TaxGain, Magnum Multiplier, Magnum Equity Fund and funds under the Magnum Sector Funds Umbrella.

Click here for Table

HDFC Tax Fund: HDFC Mutual Fund is launching a tax savings scheme, HDFC Tax Plan 2000, structured as an equity-linked tax saving scheme. After an initial public offering of two days on December 26 and 27, the scheme is available on an ongoing basis from January 2 at NAV-based prices. There is no load till March 31. A minimum lock-in period of three years is applicable. The fund will invest 80 per cent of its assets in equities and the rest in debt instruments.

Jardine Fleming Dividend: Jardine Fleming India Fund has Declared income distribution of $1.4772 per share from long-term capital gains. The distribution is payable on January 12, 2001 to shareholders on record as of December 28, 2000. The Fund is a closed-end, non-diversified management investment company seeking long-term capital appreciation through investments primarily in listed equity securities of Indian companies. The Fund's investment manager is Jardine Fleming International Management.

India Growth Fund: The India Growth Fund, Inc. has declared income distribution of $0.4668 per share from long-term capital gains. The distribution is payable on January 12 to shareholders on record as of December 28, 2000. The Fund is a non-diversified, closed-end management investment company that seeks long-term capital appreciation through investments primarily in equity securities of Indian companies. The Fund's investment adviser is Unit Trust of India Investment Advisory Services Limited.