Stock markets not overvalued: Survey
Mumbai: A survey by online stock broking outfit Indiainfoline has found that the majority of fund houses in the country feel the stock markets are not overvalued at current levels and they expect the frontline stock index Sensex to breach 12,000 levels over the next one year.

Some respondents to the survey felt that in the short-term (ie, three-month period), the Sensex will be range bound between 9,000 and 10,000 levels; whereas others expect the index to settle between 10,000 and 11,000. 45 per cent of the respondents expect large-cap stocks to outperform, 55 per cent said mid-cap stocks are likely to be frontrunners during the period. However, there were no takers for the small-cap stocks, said the survey.

Seventy three per cent of fund managers expect equity funds to generate a return of 10-20 per cent over the next one-year period while 27 per cent of the respondents are more bullish and expect these funds to give a return of 20-30 per cent over the same period. 92 per cent of fund managers expect income funds to generate a return of 5-7 per cent over the next one year.

Among the various sectors, IT and capital goods are the favourites fund managers and each of them received 30 per cent of the votes. Next in line is the banking sector with 20 per cent of the votes. This was followed by cement and auto sectors, with 10 per cent votes each.

Regarding interest rates, 64 per cent of the responding fund managers said the rate would continue to rise over the next one year, whereas the remaining 36 per cent do not expect a further increase in interest rates.
Back to News Review index page  

AMFI registers rise in MF distributors
Kolkata: More and more cos are taking to mutual fund distribution.

The tally of distributors registered with AMFI, the association formed by mutual funds, is hovering near the 45,000-mark and the 50,000 mark doesn't seem too far away. While even 50,000 will be far too small a figure when compared to the agency strength commanded by public sector insurer LIC, the asset management industry feels it will start attracting more followers than before.

A.P. Kurian, chairman, AMFI said the headcount is a reflection of the increased acceptance of mutual funds among investors. AMFI says mutual funds have seen about 2.8 crore accounts - of which roughly 1.8 crore accounts are in the context of equity funds. The total AUM (assets of all fund houses taken together at the end of June) grew to cross Rs2.65 lakh crore.
Back to News Review index page  

M&M Fin to sell insurance, MFs
Mumbai: Mahindra & Mahindra Finance Services (MMFSL) is diversifying into distribution of insurance products and mutual funds. The company is also foraying into the rural housing sector to become a one-stop shop for all finance solutions in the market.

The company recently announced a tie-up with Maruti Suzuki to provide finance to all Maruti vehicles. MMFSL will utilise the dealer network of MUL and its service mark Maruti Finance to market its auto loans. The finance company will have the non-exclusive licence to use Maruti Finance mark to sell its products.

The companies (MMFSL and Maruti) can participate in joint promotion schemes as mutually decided to promote and market auto loans for Maruti vehicles.
Back to News Review index page