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Liquid Plus Funds Gain Despite MTM Norm

Barring three schemes, NAVs of most funds rose on the first day of new valuation norm

Last updated: 08-Oct-2024•Value Research Follow Value Research Online on Google

Barring three schemes, NAVs of most funds rose on the first day of new valuation norm

Most ultra short-term funds (earlier called liquid plus funds) posted a growth in their net asset values (NAVs) on the first day (August 2, 2010) of the new valuation norm for the securities held by them.

Earlier, the mutual fund industry was apprehensive of a possible drop in NAVs of liquid plus funds due to implementation of the new norm just a few days after the Reserve Bank of India (RBI) hiked repo and reverse repo rates. Some fund houses had even requested the Securities and Exchange Board of India (SEBI) to extend the deadline for implementation of the new norm.

Bond prices usually drops after the hike in bank rates. RBI on July 27 increased the repo rate (the rate at which it lends money to banks) by 0.25 per cent and the reverse repo (rate at which it borrows from other banks) by 0.50 per cent.

Under the new valuation norm, debt funds with maturity up to 182 days will be valued at the average weighted market price (mark-to-market, or MTM) of the securities held by them on a particular day. The new valuation norm is likely to increase volatility in the day-to-day change of NAVs of such funds.

"Hike in policy rate was expected and the market had already factored in the possible impacts, and hence the drop in prices of securities held by ultra short term funds was not much,"said a fund manager.

The average change in NAVs of the ultra short term funds on August 2, 2010 was 0.0371 per cent over the previous day on July 30. JM Money Manager's NAV appreciated the maximum by 0.664 per cent during the day.

NAV change in Liquid Plus Funds
       NAV    
Funds    30/07/2010    02/08/2010    % change
Birla Sun Life Short Term Opportunities Ret   14.5572   14.5517   -0.0378
Birla Sun Life Short Term Opportunities Inst   10.6582   10.6542   -0.0375
DWS Money Plus Reg   13.4297   13.4302   0.0037
DWS Money Plus Inst   10.5424   10.5428   0.0038
DWS Treasury Investment Reg   10.4939   10.4943   0.0038
Edelweiss Short Term Bond Inst   11.2605   11.2610   0.0044
Edelweiss Short Term Bond Ret   11.2177   11.2182   0.0045
DSPBR Floating Rate   15.0348   15.0359   0.0073
DWS Treasury Investment Inst   10.5179   10.5187   0.0076
Principal Ultra Short Term Reg   12.0262   12.0272   0.0083
DSPBR Floating Rate Inst   1347.9393   1348.0623   0.0091
Sundaram BNP Paribas Income Plus   14.6089   14.6118   0.0199
Baroda Pioneer Short Term Bond   10.0229   10.0250   0.0210
IDFC Savings Advantage Plan F   10.1439   10.1468   0.0286
IDFC Money Manager Investment A   14.2935   14.2976   0.0287
IDFC Savings Advantage Plan D   10.5752   10.5783   0.0293
IDFC Money Manager Investment F   10.2057   10.2088   0.0304
IDFC Savings Advantage Plan A   1317.9642   1318.3672   0.0306
IDFC Money Manager Treasury D   10.4465   10.4498   0.0316
IDFC Money Manager Investment B   14.5761   14.5809   0.0329
JM Floater LT Regular   14.7360   14.7409   0.0333
JM Floater LT Premium   14.1907   14.1955   0.0338
Mirae Asset Ultra Short Term Bond Regular   1049.1466   1049.5099   0.0346
AIG India Treasury Ret   12.0325   12.0367   0.0349
ICICI Prudential Flexible Income Regular   106.3988   106.4362   0.0352
DWS Ultra Short Term Reg   15.2134   15.2188   0.0355
DWS Cash Opportunities Reg   12.4971   12.5016   0.0360
JM Money Manager Super Plus   13.2017   13.2065   0.0364
AIG India Treasury Inst   12.1472   12.1517   0.0370
Bharti AXA Treasury Advantage Ret   1121.0494   1121.4656   0.0371
Sundaram BNP Paribas Ultra ST Ret   12.3731   12.3777   0.0372
IDFC Money Manager Treasury A   15.0522   15.0578   0.0372
IDFC Money Manager Treasury F   10.2039   10.2077   0.0372
Birla Sun Life Savings Ret   17.3796   17.3861   0.0374
DWS Treasury Cash Reg   10.3825   10.3864   0.0376
AIG India Treasury Super Inst   12.1825   12.1871   0.0378
Tata Treasury Manager Retail   1240.2987   1240.7687   0.0379
SBI Short Horizon Debt Ultra ST Ret   12.0301   12.0347   0.0382
Tata Treasury Manager HI   1242.0375   1242.5185   0.0387
UTI Treasury Advantage   2374.3942   2375.3181   0.0389
Reliance Money Manager Retail   1265.0312   1265.5263   0.0391
ICICI Prudential Ultra Short Term Regular   10.4759   10.4800   0.0391
HSBC Ultra Short Term Bond Regular   12.7515   12.7565   0.0392
ICICI Prudential Ultra Short Term Prem   10.4433   10.4474   0.0393
Fidelity Ultra Short Term Debt Ret   11.9345   11.9392   0.0394
L&T Freedom Income Short-term   14.8020   14.8079   0.0399
DWS Ultra Short Term Inst   11.0181   11.0225   0.0399
Sundaram BNP Paribas Ultra ST Inst   12.5038   12.5089   0.0408
Tata Treasury Manager Super HI   1064.9244   1065.3588   0.0408
ICICI Prudential Flexible Income Premium   174.2651   174.3364   0.0409
SBI Short Horizon Debt Ultra ST Inst   12.1997   12.2047   0.0410
Birla Sun Life Savings Inst   17.7830   17.7903   0.0411
Bharti AXA Treasury Advantage Inst   1132.1046   1132.5711   0.0412
HSBC Ultra Short Term Bond Inst   12.8478   12.8531   0.0413
DWS Treasury Cash Inst   10.4039   10.4082   0.0413
IDFC Money Manager Treasury B   14.9736   14.9798   0.0414
Canara Robeco Treasury Adv Ret   15.3364   15.3428   0.0417
Canara Robeco Floating Rate ST   14.4637   14.4698   0.0422
Canara Robeco Treasury Adv Inst   15.3654   15.3719   0.0423
IDFC Money Manager Treasury C   11.1029   11.1076   0.0423
HDFC Floating Rate Income ST Retail   15.8182   15.8249   0.0424
Reliance Money Manager Inst   1276.2990   1276.8403   0.0424
Axis Treasury Advantage Retail   1019.1421   1019.5747   0.0424
DWS Cash Opportunities Inst   12.0082   12.0133   0.0425
Fidelity Ultra Short Term Debt Inst   11.6878   11.6928   0.0428
ICICI Prudential Ultra Short Term Prem Plus   10.4728   10.4773   0.0430
Fortis Money Plus Reg   13.9566   13.9626   0.0430
Peerless Ultra Short Term Retail   10.2064   10.2108   0.0431
L&T Freedom Income Short-term Inst   15.0737   15.0802   0.0431
UTI Treasury Advantage Inst   1258.0456   1258.5902   0.0433
Fidelity Ultra Short Term Debt Super Inst   12.1162   12.1215   0.0437
HDFC Cash Mgmt Treasury Adv Ret   20.3149   20.3238   0.0438
JP Morgan India Treasury Retail   11.1775   11.1824   0.0438
Shinsei Treasury Advantage   1041.0059   1041.4674   0.0443
Sundaram BNP Paribas Ultra ST Super Inst   12.6244   12.6300   0.0444
Fortis Money Plus Inst   14.1316   14.1379   0.0446
ING Treasury Advantage Regular   12.5166   12.5222   0.0447
Axis Treasury Advantage Inst   1038.3039   1038.7688   0.0448
Religare Ultra Short Term Inst   12.8798   12.8856   0.0450
Religare Ultra Short Term Retail   12.6443   12.6500   0.0451
Templeton India Ultra Short Bond Ret   11.9337   11.9391   0.0453
Canara Robeco Treasury Adv Super Inst   14.1382   14.1446   0.0453
ING Treasury Advantage Inst   12.5223   12.5280   0.0455
ICICI Prudential Ultra Short Term Super Prem   10.5219   10.5267   0.0456
HDFC Floating Rate Income ST Wholesale   15.9548   15.9621   0.0458
HDFC Cash Mgmt Treasury Adv Wholesale   20.5334   20.5428   0.0458
JP Morgan India Treasury Super Inst   12.2119   12.2175   0.0459
HSBC Ultra Short Term Bond Inst Plus   12.9871   12.9931   0.0462
Peerless Ultra Short Term Super Inst   10.1644   10.1691   0.0462
Templeton India Ultra Short Bond Inst   11.9965   12.0021   0.0467
Peerless Ultra Short Term Inst   10.2252   10.2300   0.0469
Baroda Pioneer Treasury Advantage Inst   10.5578   10.5628   0.0474
Baroda Pioneer Treasury Advantage Reg   10.5448   10.5498   0.0474
Reliance Floating Rate ST   14.7547   14.7617   0.0474
LICMF Savings Plus   14.8892   14.8963   0.0477
Religare Credit Opportunities Retail   10.4819   10.4869   0.0477
LICMF Income Plus   12.5771   12.5831   0.0477
Taurus Ultra Short Term Bond Retail   1091.1453   1091.6688   0.0480
Templeton India Ultra Short Bond Super Inst   12.0593   12.0651   0.0481
Religare Credit Opportunities Inst   10.5038   10.5089   0.0486
Taurus Ultra Short Term Bond Inst   1093.6977   1094.2315   0.0488
Taurus Ultra Short Term Bond Super Inst   1097.2039   1097.7484   0.0496
DSPBR Money Manager Ret   1285.2274   1285.8841   0.0511
JM Money Manager Super   13.1798   13.1867   0.0524
DSPBR Money Manager Inst   1302.1480   1302.8344   0.0527
Sahara Short Term Bond   10.7898   10.7955   0.0528
IDFC Ultra Short Term   12.8381   12.8451   0.0545
JM Money Manager Reg   12.8106   12.8191   0.0664
NAV in Rs


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