MFs rake in Rs 23.82 bn via new schemes

Mutual funds raised a whopping Rs 23.82 billion through initial public offerings of new schemes in July compared with Rs 7.32 billion in June, and Rs 5.75 billion in May. Fixed maturity plans were in the limelight, mopping up Rs 10.2 billion.

In July, fund houses launched 11 schemes as against seven in June, and four in May.

Of these 11 schemes, four were equity-oriented schemes while seven schemes were in the debt category.

Among debt products, HDFC Mutual Fund and Reliance Mutual launched fixed maturity plans, which saw a good response. SBI Mutual Fund and Standard Chartered Mutual received a huge response to their floating rate funds.

HDFC Mutual Fund's one-year Fixed Maturity Plan, launched on June 28, mobilised Rs 3 billion. The IPO closed on July 1. HDFC Mutual also collected Rs 2.60 billion from the IPO of its Fixed Investment Plan. The IPO was open from July 26 to July 29.

SBI Mutual Fund's floating rate plan (in its income fund) mopped up Rs 4.5 billion from 1,200 investors. The IPO was open from July 5 to July 14.

Standard Chartered Mutual Fund mobilised over Rs 5 billion in its long-term floating rate income plan. The IPO opened on July 19 and closed on July 30.

Chola Mutual Fund mobilised Rs 450 million in the IPOs of its mid-cap and income plus funds. The fund house collected Rs 200 million in the mid-cap fund and Rs 250 million in income plus fund. The IPO of the two schemes, launched on June 25, closed on July 23.

The first fund of funds scheme, which will invest in schemes of other funds, Kotak Equity FOF, managed to mobilise Rs 1.87 billion. The IPO of the scheme, which was launched on July 1, closed on July 19.

Prudential ICICI Mutual Fund was the second mutual fund to launch an equity scheme in July. Its Prudential ICICI Discovery Fund, a value fund launched on July 9, mobilised Rs 1.25 billion before closing on July 30.

Reliance Mutual Fund launched two Fixed Term Series in July. It mobilised Rs 2.90 billion from the IPO of its quarterly plan in Fixed Term Series in a single-day IPO on July 27. The fund also collected Rs 1.70 billion from the annual plan of fixed maturity scheme. The IPO, launched on July 28, closed on July 29.

Templeton Mutual Fund mopped up Rs 550 million in the IPO of its 50s plus Floating Rate Plan, introduced in its FT India Life State Fund of Funds scheme. The offer, which opened on June 16, closed on July 2.

Six more IPOs, which opened in July, will close in August. BOB Mutual Fund launched the IPO of BOB Children Fund, BOB NRI Fund, and BOB monthly Income Plan on July 28. The issues will close for subscription on August 26.

ING Vysya Mutual Fund launched ING Vysya Domestic Opportunities Fund and ING Vysya Select Debt Fund on July 30. The IPOs will close on August 23.

Kotak Mutual launched the IPO of Kotak Opportunities Fund on July 27. The issue will close on August 25.

Several other fund houses are also planning to launch new schemes in August. Prominent among them will be ABN Amro Mutual, which will launch its first offering of five schemes""cash, dynamic bond, floating rate income, monthly income, and diversified equity""on Monday. The IPOs close on Sep. 3.

SBI Mutual is likely to launch its emerging business fund in August. Prudential ICICI Mutual and Chola Mutual are likely to launch floaters during the month.