With December 31 SEBI deadline on large investors' concentration just a few weeks away, uncertainty looms large over the fate of 91 mutual fund schemes in which select investors have dominant share of the fund's assets.
Last year, the regulator had directed mutual funds to ensure that none of the investors had more than 25 per cent share of assets of AMCs. Also, it had capped the minimum number of investors per scheme at 20. While the new funds were required to fulfill the criteria immediately, existing ones were given December 31 deadline to comply with the orders. Any scheme not following the guideline by the set deadline would be wound up without appeal to the regulator.
However, as per data available till September 30, 2004, 91 funds are still to comply with the dictate. While four of them are 'one-man show', 47 had one or two investors in command of more than 50 per cent assets of the schemes.
The SEBI regulation is significant because dominance of large investors could hit the interests of smaller ones. If the large investors decide to redeem their investments at one go, the fund manager would be forced to sell a huge chunk of his portfolio, probably at a time when he would not have liked to.
Now, is this regulation enough to curb the menace? We feel it's not. This can be easily bypassed by breaking the investment into several parts and involving 20 others in the process.
For more on why large investors' concentration is not healthy for mutual funds, read May 15 2004 issue of Mutual Fund Insight.
| Investors’ Concentration
| |
Scheme Name | | Investor Count | | Holding (%)
| |
Grindlays SSI Medium-term Plan C | | 1 | | 100
| |
Grindlays SSI Short-term Plan C | | 1 | | 100
| |
HSBC Inst Income-Invest | | 2 | | 100
| |
Magnum Growth -99 | | 1 | | 100
| |
Principal Dep-EA/EB | | 1 | | 100
| |
BoB Short-term | | 1 | | 99.95
| |
Banking BeES | | 1 | | 99.4
| |
Reliance Liquid Super Cash | | 1 | | 98.83
| |
Can Short-term | | 1 | | 98.4
| |
Prudential ICICI SPIcE | | 1 | | 95.75
| |
FoF Nifty 100 Balance | | 1 | | 93.17
| |
Reliance Gilt Short-term | | 1 | | 91.88
| |
Prudential ICICI Fixed Maturity Plan Y1 II | | 2 | | 88.93
| |
BoB Growth | | 1 | | 80.33
| |
BoB Balance | | 1 | | 80.11
| |
CanIncome | | 1 | | 77.61
| |
FoF Nifty BeES | | 2 | | 77.5
| |
Kotak Gilt Serial 2007 | | 1 | | 76.45
| |
Escorts Gilt | | 1 | | 74.78
| |
Grindlays SSI Inv Inst | | 1 | | 73.46
| |
Birla Bond Index | | 1 | | 71.76
| |
Kotak Gilt Serial 2011 | | 2 | | 70.77
| |
Kotak Gilt Serial 2005 | | 1 | | 70.66
| |
Tata Index Nifty A | | 1 | | 70.52
| |
Sahara Growth | | 1 | | 69.26
| |
Principal GSF Inv | | 2 | | 68.78
| |
HDFC Cash Mgmt Inv-DM | | 1 | | 68.15
| |
Kotak Gilt Serial 2013 | | 1 | | 67.08
| |
BoB Liquid | | 1 | | 66.18
| |
LICMF Short-term | | 2 | | 65.44
| |
Prudential ICICI Income LT | | 1 | | 64.71
| |
UTI Liquid Short Term Plan | | 1 | | 64.16
| |
BoB MIP | | 1 | | 58.64
| |
Sahara Gilt | | 1 | | 58.3
| |
ING Vysya Select Stocks | | 1 | | 56.24
| |
Escorts Opportunities | | 1 | | 56.06
| |
Grindlays SSI Medium-term Inst | | 1 | | 55.63
| |
Magnum InstaCash (Cash) | | 1 | | 54.66
| |
Tata Index Sensex A | | 1 | | 54.07
| |
Pru ICICI Sweep Plan | | 1 | | 53.18
| |
Principal Cash Mgmt Call | | 2 | | 52.06
| |
Magnum Inst Income Inv | | 1 | | 51.9
| |
HDFC Cash Mgmt Call | | 1 | | 51.76
| |
FoF Nifty 100 | | 1 | | 51.73
| |
UTI Gilt Advantage Fund STP | | 1 | | 51.22
| |
BoB Gilt | | 1 | | 50.15
| |
Reliance Short-term | | 1 | | 49.8
| |
FoF Nifty Junior BeES | | 1 | | 49.25
| |
Canexpo | | 1 | | 48.64
| |
Nifty Benchmark ETS | | 1 | | 45.57
| |
Magnum InstaCash Short-term | | 1 | | 43.65
| |
Cancigo | | 1 | | 43
| |
Magnum Gilt Long-term-DQ | | 1 | | 42.98
| |
Reliance MIP | | 1 | | 41.07
| |
Cangilt (PGS) | | 1 | | 40.46
| |
Prudential ICICI Growth | | 1 | | 40.07
| |
Nifty Junior BeES | | 1 | | 38
| |
Principal Pnb Debt | | 1 | | 36.56
| |
Libra Taxshield '96 | | 1 | | 35.58
| |
HSBC Gilt Short-term | | 1 | | 35.55
| |
Canequity-Tax Saver | | 1 | | 34.67
| |
UTI MIS Advantage Plan | | 1 | | 34.66
| |
Grindlays SSI Short-term Inst | | 1 | | 34.07
| |
Magnum Gilt Short-term-DM | | 1 | | 33.57
| |
BoB Gilt PF | | 1 | | 33.39
| |
Reliance Banking | | 1 | | 32.47
| |
Grindlays GSF Short-term | | 1 | | 32.37
| |
Alliance GSF Short-term | | 1 | | 30.96
| |
ING Vysya Income Short-term | | 1 | | 30.3
| |
Franklin India Balanced | | 1 | | 29.77
| |
Templeton Income Bldr Inst | | 1 | | 29.77
| |
Franklin India Index Tax | | 1 | | 29.72
| |
ABN AMRO Cash Regular | | 1 | | 29.61
| |
Bonanza Exclusive Growth | | 1 | | 29.24
| |
Magnum FMCG | | 1 | | 29.01
| |
Magnum Index | | 1 | | 29.01
| |
Reliance Gilt Long-term | | 1 | | 28.77
| |
UTI Floating Rate Fund - STP | | 1 | | 28.13
| |
Tata GSF Short Maturity | | 1 | | 28.1
| |
Tata Growth | | 1 | | 28.04
| |
Liquid Benchmark ETS | | 1 | | 27.86
| |
Deutsche Dynamic Bond Regular | | 1 | | 27.79
| |
Canliquid Inst | | 1 | | 27.43
| |
Kotak Bond Short-term | | 1 | | 27.21
| |
HSBC Gilt Long-term | | 1 | | 27.06
| |
Sundaram Select Debt Dynamic | | 1 | | 26.37
| |
Tata Liquid | | 1 | | 26.31
| |
HDFC Short-term | | 1 | | 26.23
| |
Canliquid Retail | | 1 | | 25.78
| |
Birla Gilt Plus PF | | 1 | | 25.59
| |
Principal GSF Saving | | 1 | | 25.47
|  | |
As on September 30, 2004
|
| |
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