Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT Audit :: form 3cd :: VAT RATES :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARDS
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

MFs gear up for redemption as advance tax date nears
June, 07th 2007

With the date for the payment of advance tax (June 15) nearing, mutual fund (MF) managers are gearing up to tackle redemption pressure mostly from corporate and institutional investors. The fund managers, however, opine that it is a regular phenomena and they are ready to tackle the situation.

Last year, in June 06, MFs witnessed an erosion in their assets under management (AUM) to the tune of Rs 11,089.84 crore or 4.02% of the total AUM of Rs 2.64 lakh crore. The AUM of the MF industry stood at Rs 2.75 lakh crore in May 2006.

Similarly the year before that, in 2005, AUM of June 05 was at Rs 1.64 lakh crore. The AUM had come down by 2.05% or an erosion of Rs 3,443.66 crore from the AUM of May 05, which stood at Rs 1.67 lakh crore.

Optimistic that the similar trend will not be followed this year, Gordon Rodrigues, senior VP and head fixed income HSBC asset management company (AMC) feels that advance tax outflows will not result in much redemptions from the funds as most of the large corporates tend to plan their tax payments through the fixed deposit route, with deposits maturing in line with the tax dates. One does tend to see this more for the second rung corporates, but the amounts are not significant. However, we find that redemption pressure tends to build up substantially in the week prior to the quarter-end as most large banks and financial institutions tend to withdraw their investments for the quarter end date, being a financial disclosure date. They then tend to come back in the week following the quarter end, he said.

Dheeraj Singh, head, fixed income, Sundaram BNP Paribas said, There will definitely be some outflows. However, it will not be like the previous years where there were huge redemptions. Fund managers are now aware of it and are now much better prepared to tackle the first installment of advance tax. Last week, when call money rates fell to 0.1% levels, MFs saw large inflows into their liquid funds from the banking sector, as the return by investing in MFs is far superior than lending into call money market. This also means that once call money tightens and we near the end of the quarter redemption pressure will be even more exaggerated to that extent, said a fund manager.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions