Indian investors of Morgan MF are safe The decision of Morgan Stanley (MS) to convert itself from an investment bank to a retail bank is not likely to impact the performance of its subsidiary Morgan Stanley AMC which manages mutual funds in India.
However, the company declined to comment on the issue as it is yet to formally announce the impact on its various operations world over. But, the investors in India are feeling uncomfortable on MS' decision to change convert itself into a retail bank. Vinita Kumar, whose parents have invested in one of MS' fund said that changing stature to a commerical bank was an outcome of financial crisis in US. This shows that everything is not good at the organization. The fund is presently managing two funds. The major one is a close-ended equity diversified fund, which was launched in 1994 and has a size of Rs 2,880 crore. The other one is an open-ended diversified equity fund, with a size of only Rs 103.76 crore. In the case of close-ended fund, an investor cannot redeem his or her units from the fund manager. Instead of that, he or she will have to sell the unit in the stock exchange. But, in the case of MS, the unit is trading at Rs 40.25 on BSE - at a discount of over 11% to its current net asset value (NAV) at Rs 45.35. The fund will go for redemption in February, 2009. Industry sources, however , maintained that the conversion of Morgan Stanley into a retail bank will not affect its fortune. In fact, they said, it will give stability to the company. The Indian AMC is registered in India and regulated by Sebi. Therefore, they said, investors' money is safe. But that does not mean that NAV will not fall if the stock markets fall. The market risk will continue to be there and the investors will have to bear that. -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
