Mutual fund collection doubles in 8 months

MUMBAI, DECEMBER 10: Indicating a strong shift in investor preference, Indian mutual funds raised Rs 29,858 crore in the April-November pe...

MUMBAI, DECEMBER 10: Indicating a strong shift in investor preference, Indian mutual funds raised Rs 29,858 crore in the April-November period against Rs 14,288 crore a year ago, the Securities and Exchange Board of India SEBI said on Friday.

Mutual funds collected Rs 22,711 crore in 1998/99 April-March, SEBI said in a statement. The market regulator said the net inflow to the funds was Rs 11,131 crore, after adjustment of repurchases and redemptions, in the April-November period. The industry witnessed a net outflow of Rs 950 crore in 1998/99, it said.

The market regulator said total net assets of all domestic schemes of mutual funds as on November 30, 1999 was Rs 90,685 crore of which the UTI accounted for 71 per cent, public sector funds 10 per cent and private sector funds 19 per cent.

SEBI chairman DR Mehta had recently estimated that mutual fund collection for the entire year 1999-2000 would cross the Rs 40,000 crore mark. The total fund mobilisation by the MF industry is expected to crossthe Rs one lakh crore mark.

8220;Many of the existing mutual funds are doing well. MFs have been announcing good dividends which are now tax-free at the hands of investors. Retail investors who used to put money in stocks and real estate are now diverting funds to mutual funds,8221; said a fund manager.

Sebi clears Infinity Venture Fund

MUMBAI: Sebi has approved the application of Infinity Venture India Fund on December. The initial corpus of the fund would be Rs 80 crore. The corpus is proposed to be contributed by Indian residents to the extent of Rs 40 crore and the SPG Infinity Technology Fund I, LLC, a Mauritius-based limited company with limited life will contribute 10 million.

The fund has been set up as a trust sponsored by successful entrepreneurs and CEOs, directors and business heads of large Indian and multinational corporations. The fund has also attracted some members of The IndUS Enterprises TiE, a Silicon Valley-based network of angel investors of primarily Indian origin, toparticipate in the venture fund as advisors and investor. Kanwal Rekhi, of Exodus Communications fame and Suhas Patil, the past president of TiE will invest in the fund.