Mutual funds refrained from purchasing fresh papers on expectation the rates would rise by the end of this month once the two-staged Cash Reserve Ratio (CRR) takes effect, dealers said. The Reserve Bank of India (RBI) had, in its third-quarter Annual Policy Statement for 2009-10 (April-March) Friday, increased banks' CRR by 75 basis points (bps). The first stage of 50 bps CRR hike will become effective February 13 and 25 bps on February 27, draining Rs 36,000 crore out of the system.

Fortis Mutual Fund has announced that the New Fund Offer (NFO) period of Fortis Fixed Term Fund - Series 16 C is extended from 2 February 2010 to 9 February 2010. Fortis Fixed Term Fund - Series 16 C, a 369 day close ended income scheme has the investment objective to achieve growth of capital through investments made in a basket of fixed income securities maturing on or before the maturity of the Scheme. All other terms and conditions of scheme remain unchanged.