MF-ViewsOnNews

This investment strategy will help you sail through any crisis

PersonalFN — Mon, 11 Jun 2012 09:18:13 GMT

The global economy has been grappling with the slowdown in world’s major drivers of growth - the Europe and the United States of America. With the former being almost on the verge of a breakdown and the latter unable to sustain growth; the Emerging Nations like India too, are going ...

NFO Review: Baroda Pioneer Banking and Financial Services Fund

PersonalFN — Tue, 05 Jun 2012 11:37:24 GMT

Baroda Pioneer Banking and Financial Services Fund (BPBFSF)

An open ended Sectoral equity fund seeking to capitalise on opportunities in Banking and financial services sector

Summary

Type	Open-ended Sectoral Scheme	Benchmark Index	CNX Bank Index
Min. Investment: Additional Purchase:	For Lump sum - Rs 5,000 and in multiples of ...

You may get an ETF route for your investments in RGESS

PersonalFN Research — Mon, 04 Jun 2012 11:28:04 GMT

In the world of financial exuberance, there are galore of investment avenues for you to select from. However, it is imperative that you exercise caution and act responsibly while selecting the right investment avenue for investing your hard earned money. But when these very options are made complicated or there ...

NFO Review: Axis Banking Debt Fund

PersonalFN Research — Mon, 04 Jun 2012 10:53:30 GMT

Axis Banking Debt Fund (ABDF)

An open-ended debt scheme with an aim to explore investment opportunities in the debt and money market instruments issued by banks.

Summary

Type	Open-ended Debt scheme	Benchmark Index	CRISIL Short Term Bond Fund Index
Min. Investment: Additional Investment:	Rs 5,000 and in multiples of ...

You may now be charged lower fees on PMS

PersonalFN — Wed, 30 May 2012 07:59:43 GMT

Emotions play a major role in determining the stock market activity. When the investor sentiments are upbeat and there is a wave of optimism amongst the investor community, the stock markets or equity markets move northwards. On the contrary when the nervous investment sentiments prevail and clouds of pessimism hover ...

Can QFI flows bring stability to the Indian equity markets?

PersonalFN — Mon, 28 May 2012 08:56:17 GMT

While every country strives to have stable capital flows, it depends on the ‘type’ of capital flows it receives. Foreign Institutional Investors (FIIs) flows (often referred to as hot money), although they are tracked vigilantly, they could flinch a rollercoaster for the capital markets, as they often act as migratory ...

Beware where you undergo your medical treatment

PersonalFN — Mon, 21 May 2012 08:53:29 GMT

We all know how important it is to have a health insurance or mediclaim, in today’s times when healthcare costs are mounting. But merely holding a mediclaim policy is not enough. Apart from being chary about how much premium you need to pay, one should also check on:

Whether cashless ...

NFO Review: BNP Paribas Income & Gold Fund

PersonalFN — Sat, 19 May 2012 06:13:05 GMT

BNP Paribas Income & Gold Fund (BPIGF)

An Open-ended Debt Fund with an exposure to gold ETFs

Summary

Type	Open-ended Debt Fund	Additional purchase:	Rs 1000 and in multiples of Re 1 thereof
Min. Investment	For Lump sum - Rs 5,000 and in multiples of Re 1 thereof For Systematic ...

Your PAN card 'a must' to buy gold coins or bars

PersonalFN — Wed, 16 May 2012 09:40:55 GMT

The recent fall in gold prices to Rs 28,085 as on May 15, 2012 from Rs 29,243 as on May 03, 2012 may have induced you to buy the precious yellow metal - gold. But this time while you plan to buy gold do keep in a reminder to carry ...

You (policyholders) have a reason to cheer: IRDA's clean-up drive

PersonalFN — Mon, 14 May 2012 09:38:19 GMT

Protecting policyholders' interests has been one of the functions of the insurance regulator - Insurance Regulatory and Development Authority (IRDA) along with its role of developing the insurance industry. But at a time when policyholders are being lured to buy insurance products due to false promises or marketing gimmicks undertaken ...

Your Employees Provident Fund account will soon be portable

PersonalFN — Wed, 09 May 2012 08:51:15 GMT

Most of you change jobs for better prospects - be it pay packages, better work culture - the reasons could be many. But do you make it point to transfer your existing Employees Provident Account (EPF) to your new employer. Majority of you would say a ‘No’, as the efforts ...

Will SEBI succumb to AMFI's pressure & roll back the entry load?

PersonalFN — Mon, 07 May 2012 10:44:47 GMT

There is no doubt that the Indian mutual fund industry is reeling under pressures of redemption and loss of folios. According to the mutual fund industry body - the Association of Mutual Funds in India (AMFI) the mutual fund industry lost 7.8 lakh folios or 1.7% for the year ended ...

NFO Review :Taurus Banking & Financial Services Fund

PersonalFN — Thu, 03 May 2012 10:47:48 GMT

Taurus Banking & Financial Services Fund (TBFSF)

Taurus Banking & Financial Services Fund is a sectoral fund showing its conviction in the banking & financial services sector

Summary

Type	Open-ended Sectoral Equity	Benchmark Index	BSE Bankex Index
Min. Investment: Additional Purchase:	For Lump sum - Rs 5,000 and in ...

Whether you benefit or not, single premium policies are here to stay

PersonalFN — Wed, 02 May 2012 09:26:13 GMT

Most of you may be aware that the insurance regulator - Insurance Regulatory and Development Authority (IRDA) is busy undertaking policy changes which are meant to be in the interests’ of the policyholder. Right from rejigging the ULIPs, to bringing in measures to increase the life cover in life insurance ...

You may soon transact online in mutual funds without a distributor

PersonalFN — Mon, 30 Apr 2012 10:31:07 GMT

In a busy city life, many a times you are running short of time to manage multiple responsibilities, may it be at work or at home. And to add to it, many a times you have to run across various shops & stores to cater to your daily household needs ...

NFO Review: IDBI India Top 100 Equity Fund

PersonalFN — Fri, 27 Apr 2012 09:19:54 GMT

IDBI India Top 100 Equity Fund

An Open–ended Growth Scheme

Summary

Type	Open-ended diversified equity scheme	Additional purchase:	Rs 1,000 and in multiples of Re 1 thereafter
Min. Investment	For lump sum:Rs 5,000 and in multiples of Re 1 thereafter For Systematic Investment Plan (SIP) Monthly option: ...

The Entry Load Saga may spark-off again: AMFI vs SEBI

PersonalFN — Wed, 25 Apr 2012 09:52:30 GMT

Sudden and intense policy changes have sometimes adverse repercussions in the long run. The decision of 'entry load ban' taken by the SEBI (Securities and Exchange Board of India) in September 2009 did not go down well with the mutual fund industry. The decision of entry load ban ...

Will Rajiv Gandhi Equity Savings Scheme replace ELSS?

PersonalFN — Mon, 23 Apr 2012 08:58:30 GMT

The world of investments is so complex that many a times you are confused on selecting the right investment avenue matching your need and risk profile. Hence you approach experienced professionals to manage your investments or take some sort of help in planning your finances in order to fulfil ...

Why mutual fund houses refrained from launching real estate MFs?

PersonalFN — Wed, 18 Apr 2012 09:31:46 GMT

To start any new venture or business, you always seek clarity in many forms. First you need clarity in your thoughts as to what you want to achieve by undertaking such an activity. Then follows the calculation part which helps in assessing the capital required to start the venture or ...

Does your portfolio have that golden touch?

PersonalFN — Mon, 16 Apr 2012 11:26:34 GMT

In India a person buys gold mainly in the form of jewellery, gold bars or even coins. This attraction towards gold has been since time immemorial. It brings in a sense of pride and happiness to buy gold in the physical form. If one’s daughter is to get married, the ...

Your address should not be a hurdle for service from your insurer

PersonalFN — Wed, 11 Apr 2012 10:16:40 GMT

In an attempt to make insurance available to people of the lower income groups in the semi-urban and rural areas, the Finance Minister (FM) – Mr Pranab Mukherjee has urged the insurance regulator – Insurance Regulatory and Development Authority (IRDA) to adopt an appropriate model which can deepen the insurance ...

Cheer for investors as brokers to serve them well!

PersonalFN — Mon, 09 Apr 2012 08:47:10 GMT

Authority to an individual or an organisation is always complemented with adequate responsibility. The two cannot work in isolation. While at our office we may be enjoying an authoritative position, as a decision maker it also tags along equal amount of responsibility which makes us accountable for every decision we ...

You can now own shares of a Stock Exchange!

PersonalFN — Wed, 04 Apr 2012 06:30:20 GMT

The investors in the Indian equity markets will now embrace themselves for something special. They will now have a chance to own shares of Stocks Exchanges (place where stocks of different companies are traded). It will be a first of its kind in the Indian equity markets that the Stock ...

Make sure where you 'deposit' your hard earned money

PersonalFN — Mon, 02 Apr 2012 09:34:09 GMT

Banks, (though not all - but most of them) are considered to be most trusted entities for parking funds. Right since childhood we have been infused with the habit of saving regularly (in a piggy bank) and thereafter encouraged to open a bank account with the money so accumulated. ...

What Next for Investors of Fidelity Mutual Fund Schemes

PersonalFN — Fri, 30 Mar 2012 09:46:14 GMT

You being an investor holding your investments in mutual fund schemes of one of the respected fund house in India might be worried with the news of your fund manager exiting its India business. And what next, it has finalized the buyer of its India business, though subject to regulatory ...

Your demat account charges may reduce soon

PersonalFN — Wed, 28 Mar 2012 05:27:17 GMT

Incentives can do wonders when given in the right amount and in the right way. But more often than not investors pay a heavy price for taking investment decisions driven purely by incentives. When incentives are luring, greed overpowers rational thinking and leads investors to make the silliest mistakes they ...

You may experience a better service from mutual fund distributors

PersonalFN — Mon, 26 Mar 2012 08:53:33 GMT

The sight of your income being reduced by way of tax (usually Tax Deducted at Source (TDS)) is not a welcome sign for most of you. It brings in the feeling of anxiety, doesn’t it! After all the hard work one puts in a particular task or service, the final ...

Rajiv Gandhi Equity Scheme, is it a wise idea!

PersonalFN — Thu, 22 Mar 2012 09:57:28 GMT

More often than not investors tend to get lured over rebates, may it be on premium paid for life insurance policies or monetary benefit received upon investing money in a particular scheme. This sole factor of deriving some monetary benefits out of investments made or premiums paid leads to wrong ...

Be careful before investing in a complex financial product

PersonalFN — Wed, 21 Mar 2012 05:52:53 GMT

When investor sentiments are positive and the overall investment environment is vibrant, the manufacturers of financial products try to make hay when the sun shines. Well, they make most of such times; launch several news schemes, thus attempting to lure investors. Moreover, today financial innovation is occurring at such a ...

Your net take home gets a boost from the Budget 2012

PersonalFN — Mon, 19 Mar 2012 07:21:37 GMT

The Budget 2012 received varied response from various pockets of the society. Some say it’s a non-event and others believe it to be a good attempt in a situation of political pressures and rising fiscal deficit. On direct taxes front, more importantly, the Finance Minister this time removed the distinction ...

A Five Year Roadmap for Markets: - A Policy perspective

PersonalFN — Fri, 09 Mar 2012 12:28:58 GMT

First 2 months of 2012 have been extremely rewarding for investors as markets have rallied quite a bit. FIIs have been pumping in money into Indian equity markets like there’s no tomorrow. Against the net monthly average outflow of Rs 226.2 crore in 2011; FII’s have invested Rs 10,357 and ...

Your money in PMS may not be safe, warns SEBI

PersonalFN — Wed, 07 Mar 2012 07:26:35 GMT

Many a times we get carried away by tall claims made by a distributor / agent / relationship manager about the financial products they intend to sell. Very often we also fall prey to the tall claims, and inadvertently end up making investments, which don’t suit our investment objective and ...

SEBI relaxes advertising norms for Mutual Funds

PersonalFN — Mon, 05 Mar 2012 08:59:24 GMT

Watching your favourite television programme while relaxing on your favourite sofa, you may have come across several advertisements, which you might have found either annoying, fun or even dull and boring for that matter. While many of you getting irritable about them also opt to put their TV sets on ...

NFO Review: Birla Sun Life Gold Fund

PersonalFN — Sat, 03 Mar 2012 06:37:58 GMT

A Fund of Funds scheme from the stable of Birla Sun Life Mutual Fund investing in BSL Gold ETF.

Summary

Type	Open-ended gold fund of fund	Benchmark Index	Domestic Price of Gold
Min. Investment: Additional Investment: Min. Step-up SIP	Rs 5,000 (for lump sum) and in multiples of ...

Your insurance policies will now be 'Policyholder friendly'

PersonalFN — Wed, 29 Feb 2012 06:41:26 GMT

Very often insurance policies are being mis-sold to policyholders by giving false promises. In fact the insurance agents many a times put their personal interests on the forefront and push only particular insurance policies which fill in their own pockets. For instance, group insurance policies where the main benefit to ...

Malls selling insurance policies, soon to be thing of the past

PersonalFN — Wed, 22 Feb 2012 05:52:36 GMT

Malls have become a great destination for all age groups, from kids to senior citizens to go for shopping, hanging out, relaxing, etc. Various age groups have different reasons to visit a mall. Right from clothes to restaurants, a mall provides almost everything under one roof. But off late you ...

Investor education goes 3 dimensional!!

PersonalFN — Wed, 15 Feb 2012 07:14:39 GMT

Investor education goes 3 dimensional!!

Many a times we miss out on great opportunities due to our sheer ignorance. The lack of awareness is the main reason for our ignorance. Ignorance not only prevails in our day-to-day life but also is widespread when it comes to making investment decisions. This ...

NFO Review: FT India Feeder - Franklin U.S. Opportunities Fund

PersonalFN — Mon, 23 Jan 2012 05:44:16 GMT

FT India Feeder - Franklin U.S. Opportunities Fund

FT India Feeder – Franklin U.S. Opportunities Fund is an offshore feeder fund showing its conviction in the ailing U.S. economy.

Summary

Type	Open-ended equity scheme	Benchmark Index	Russell 3000 Growth Index
Min. Investment:	Rs 5,000	Face Value	Rs 10 per unit...

NFO Review: Morgan Stanley Multi Asset Fund

PersonalFN — Fri, 20 Jan 2012 08:21:36 GMT

Morgan Stanley Multi Asset Fund

The fund combines the benefits of income and diversification through asset allocation

Summary

Type	Open-ended Debt scheme	Benchmark Index	Plan A 80% CRISIL Composite Bond Fund Index and 20% S&P CNX Nifty Plan B 70% CRISIL Composite Bond Fund Index; 15% ...

Industrial output falls sharply

PersonalFN — Tue, 13 Dec 2011 05:32:53 GMT

The signs of an economy slowing down seem to be getting evident as the Index of Industrial Production (IIP) data for the month of October 2011 plunged sharply to -5.1% after showing a dismal growth of 2.0% (earlier figure of 1.9%) as reported in the previous month.

(Source: CSO, Personal...

NFO Note : Templeton India Corporate Bond Opportunities Fund

PersonalFN — Mon, 21 Nov 2011 04:49:42 GMT

The NFO - Templeton India Corporate Bond Opportunities Fund is an open ended income fund. The new fund offer (NFO) is priced at Rs 10 per unit and will be open for subscription from 15 November to 29 November 2011 and then reopen on 8 December 2011.

The investment objective ...

NFO Review: Union KBC Tax Saver Scheme (UKTS)

PersonalFN — Thu, 10 Nov 2011 09:19:25 GMT

Union KBC Tax Saver Scheme (UKTS)

An Open ended ELSS Scheme

Summary

Type	Open-ended Equity Linked Savings Scheme (ELSS) with a lock-in period of 3 years	Benchmark Index	BSE 100
Min. Investment: Add. Investment: SIP:	Rs 5,00 In the multiples of 500 Min Rs 500 ...

HDFC Gold Fund

PersonalFN — Wed, 12 Oct 2011 11:46:14 GMT

Summary

An Open ended Fund of Funds Scheme

Type	Open-ended gold fund of fund.	Benchmark Index	Domestic Price of Gold
Min. Investment	Rs 5,000 (for lump sum) and in multiples of Rs 1 thereafter. Rs 500 (for monthly SIP)	Face Value	Rs 10 per unit
Add . Investment:	Rs ...

Axis Gold Fund

pfnadmin — Wed, 12 Oct 2011 04:56:46 GMT

Summary

An Open ended Fund of Funds Scheme

Add . ...
Type	Open-ended gold fund of fund.	Benchmark Index	Domestic Price of Gold
Min. Investment	Rs 5,000 (for lump sum) and in multiples of Rs1 thereafter.Rs1000 (for monthly SIP) Add . Investment:	Face Value	Rs 10 per unit

Tata Retirement Savings Fund

pfnadmin — Wed, 12 Oct 2011 04:35:09 GMT

Summary

Type	An Open Ended Fund comprising of three plans i. Progressive Plan (an open ended equity scheme) ii. Moderate Plan (an open ended equity scheme) iii. Conservative Plan (an open ended debt scheme) Note: Only growth option is available under all three plans	Benchmark Index...

NFO Review: L&T MIP Wealth Builder Fund (LTMWB)

PersonalFN — Wed, 05 Oct 2011 05:44:32 GMT

L&T MIP Wealth Builder Fund (LTMWB)

An Open ended Debt Oriented Hybrid Fund

Summary

Type	Open-ended Hybrid – Debt Oriented (MIP)	Benchmark Index	CRISIL MIP Blended Fund Index
Min. Investment	Rs 5,000 (Growth), Rs 10,000 (Dividend)	Face Value	Rs 10 per unit
Entry Load	Nil	Exit Load *	1% *...

NFO Review: DSP BlackRock World Agriculture Fund

PersonalFN — Sat, 01 Oct 2011 05:39:13 GMT

DSP BlackRock World Agriculture Fund

Open-ended Fund of Funds scheme

Summary

Type	Open-ended gold fund of fund.	Benchmark Index	DAX Global Agribusiness Index
Min. Investment	5,000	Face Value	10 per unit
Entry Load	Nil	Exit Load	Upto 1 year at 1.00% After 1 year: Nil
Issue Opens	September 30, ...

What should be your approach in MFs as equity markets bleed?

PersonalFN — Sat, 24 Sep 2011 06:28:04 GMT

Being enveloped with downbeat global economic news, Indian equity markets have corrected by good -12.8% in the present quarter (i.e. from July 1, 2011 to September 22, 2011) and 22.1% since the last high 21,004.96 – made on the November 5, 2010 (the Muhurat Trading Day). The backdrop of following ...

NFO Review: ICICI Prudential Regular Gold Savings Fund

PersonalFN — Tue, 20 Sep 2011 05:04:49 GMT

ICICI Prudential Regular Gold Savings Fund

An Open ended Fund of Funds Scheme

Summary

Type	Open-ended gold fund of fund	Benchmark Index	Domestic price of gold
Min. Investment Add. Investment	Rs 5,000 (for lump sum) and in multiples of Rs 1 thereafter. Rs 1000 for SIPs / ...

NFO Review - Peerless Equity Fund

PersonalFN — Tue, 13 Sep 2011 07:10:08 GMT

Peerless Equity Fund (PEF)

An Open ended Multicap Diversified Equity Scheme

Summary

Type	Open-ended Equity: Diversified	Benchmark Index	S&P CNX Nifty
Min. Investment Add. Investment	1,000 In the multiples of 1 SIP: Min 500 for 12 month SIP	Face Value	10 per unit
Entry Load	Nil	Exit ...

One more NCD issue!! Is it worth investing in Religare Finvest NCD?

PersonalFN — Fri, 09 Sep 2011 05:05:49 GMT

Company Overview

Religare Finvest Limited (RFL) is a non-deposit taking Non-Banking Finance Corporation (NBFC) incorporated in April 2006. It is a wholly owned subsidiary of Religare Enterprises Limited headquartered at New Delhi.

As on June 30th 2011, the company has a presence in 15 states and 1 union territory and ...

NFO Review - SBI Gold Fund

PersonalFN — Tue, 23 Aug 2011 06:50:13 GMT

SBI Gold Fund

An Open ended Fund of Fund Scheme

Summary

Type	Open-ended gold fund of fund.	Benchmark Index	Domestic Price of Gold
Min. Investment Add. Investment	5,000 (for lump sum) and in multiples of 1 thereafter. 100 (for monthly SIP, minimum 60 instalments) / 1,000	Face Value	10 ...

NFO Review - Edelweiss Select Midcap Fund

PersonalFN — Mon, 08 Aug 2011 06:54:45 GMT

Edelweiss Select Midcap Fund

An open-ended Equity Scheme investing in midcap stocks.

Summary

Type	Open-ended Equity Scheme	Benchmark Index	BSE Midcap Index
Min. Investment	Rs 5,000(for lump sum) and in multiples of Rs 1 thereafter. Rs 500 (for monthly SIP, minimum 12 instalments)	Face Value	Rs 10 per ...

NFO Review - Union KBC Equity Fund

PersonalFN — Wed, 25 May 2011 12:03:09 GMT

Union KBC Equity Fund

An open-ended Equity Scheme having freedom to invest across sectors.

Summary

Type	Open-ended Equity Scheme	Benchmark Index	BSE 100
Min. Investment /Add. Investment	5,000 (for lump sum) and 1,000 (for monthly SIP) / 1,000	Face Value	10 per unit
Entry Load	Nil	Exit Load *	1% ...

Fuel prices signaling towards double digit Inflation

Personal FN — Mon, 16 May 2011 12:10:48 GMT

(Source: Office of Economic Advisor, PersonalFN Research)

The WPI inflation of 8.66% for the month of April 2011 didn’t come up much as a surprise, as fuel cost remained elevated. Moreover, now with the Government having increased the prices of petrol by ` 5 to compensate for the under-recoveries ...

NFO Review - Sundaram Equity Plus Fund

PersonalFN — Sat, 07 May 2011 07:52:51 GMT

Sundaram Equity Plus Fund

An Open – Ended Equity Scheme

Summary

Type	Open-ended Equity Scheme	Benchmark Index	CRISIL MIP Blended Index (85%) + Price of Gold (15%)
Min. Investment /Add. Investment	5,000(for lump sum) and 250 (for monthly SIP) / 10 per unit	Face Value	10 per unit...

NFO Review - ING Optimix Financial Planning Fund

PersonalFN — Wed, 27 Apr 2011 06:56:30 GMT

ING Optimix Financial Planning Fund

ING Optimix Financial Planning Fund is a Fund of Funds scheme designed to provide investors the benefit of financial planning by taking exposure in various asset class based on their risk appetite.

Summary

Type	Open-ended Fund of Funds Scheme	Min. Investment	5,000
Add. Investment	1000 ...

NFO Review - HSBC Brazil Fund

Personal FN — Thu, 21 Apr 2011 11:02:51 GMT

HSBC Brazil Fund

HSBC Brazil Fund (HBF) is a Fund of Funds Scheme designed to provide investors an opportunity to benefit from the investment opportunities in Brazil.

Summary

Entry Load...
Type	Open-ended Fund of Funds scheme	Benchmark Index	MSCI Brazil 10/40 Index
Min. Investment	10,000	Face Value	10 per unit

Would scheme mergers revive your investments?

PersonalFN — Mon, 04 Apr 2011 09:34:00 GMT

In the year 2006, 2007 and early 2008 (before equity markets around the world melted down to the news of the U.S. Subprime mortgage crisis and the Lehman Brothers bankruptcy) the Indian equity markets were buzzing, and numerous mutual fund houses in great gusto were launching several New ...

NFO Review - Peerless MF Child Plan

PersonalFN — Sat, 19 Mar 2011 04:54:20 GMT

Peerless Mutual Fund Child Plan

An open-ended Debt Oriented Hybrid Fund from Peerless Mutual Fund

Summary

Type	Open-ended Debt Oriented Hybrid Fund	Benchmark Index	CRISIL MIP Blended Index (85%) + Price of Gold (15%)
Min. Investment	1,000	Face Value	10 per unit
Entry Load	Nil	Exit Load *	1% before ...

Your Investment Strategy in Debt Mutual Funds

PersonalFN — Thu, 17 Mar 2011 04:58:34 GMT

The headline WPI Inflation has always been a fertile data point for the bond yields to pave their path. And for the Government and the central bank of our country (Reserve Bank of India), this data point has huge relevance when it comes to running a country or governing the ...

NFO Review: Mirae Asset India-China Consumption Fund

PersonalFN — Wed, 16 Mar 2011 11:01:24 GMT

Mirae Asset India-China Consumption Fund

Mirae Asset India-China Consumption Fund is an offshore thematic fund showing its confidence in the consumption-led growth in India and China.

Summary

Type	Open-ended equity scheme	Benchmark Index	MSCI India Consumption Index (65%) + MSCI China Consumption Index (35%) (with quarterly rebalancing) (Price in ...

SEBI's Load balancing Act

PersonalFN — Wed, 16 Mar 2011 06:57:53 GMT

The Issue

In order to have a level playing field for mutual fund houses, the Securities and Exchange Board of India (SEBI) asked the fund houses to maintain two separate load accounts for paying its marketing and distribution expenses.

The regulator said (vide circular dated March 9, 2011) fund houses ...

Investor Education enters a new dimension

PersonalFN — Tue, 15 Mar 2011 07:13:08 GMT

Do you know how our capital market functions?

How SEBI regulates the financial markets?

Are you completely aware of the positives and negatives while investing stocks, mutual funds or any financial instruments?

If your answer is a big “NO” then just relax, your school going kid will explain it to ...

3 years pass by, 25 companies await SEBI's nod

PersonalFN — Sat, 12 Mar 2011 07:51:52 GMT

Waiting for a license to start a mutual fund business? You might have wait for a good three years. And that’s not all; the waiting period seems all the more long and stretched when there are no reasons given for the delay nor is the application for a license rejected....

Take a Golden Sip: Kotak Gold Fund

PersonalFN — Mon, 07 Mar 2011 11:12:49 GMT

Gold – A classic asset class

Gold has been historically considered as an important asset class mainly for three reasons:

Hedge against inflation
Adds stability to the investment portfolio
Asset Allocation avenue

And as an asset class, gold over the year has shown a secular uptrend. In 1971, the price ...

Foreign Investors can now invest in Mutual Funds

PersonalFN — Thu, 03 Mar 2011 05:17:29 GMT

In a measure to provide an impetus to the mutual fund industry, the Government has now proposed to allow foreign investors to invest in Indian mutual funds after them having met the KYC norms.

This move while it may enable mutual fund houses to garner more Asset Under Management (AUM) ...

Sip into gold: Reliance Gold Savings Fund

PersonalFN — Wed, 23 Feb 2011 11:37:31 GMT

Reliance Gold Savings Fund

Gold – A classic asset class

Gold has been historically considered as an important asset class mainly for three reasons:

Hedge against inflation
Adds stability to the investment portfolio
Asset Allocation avenue

And as an asset class, gold over the year has shown a secular uptrend. ...

NFO Review - IDFC Infrastructure Fund

PersonalFN — Tue, 22 Feb 2011 06:51:04 GMT

IDFC Infrastructure Fund

IDFC Infrastructure Fund (IIF) is a “thematic” equity fund, showing its confidence towards infrastructure growth story in India.

Summary

Type	Open-ended equity scheme	Benchmark Index	BSE 200
Min. Investment	5,000	Face Value	10 per unit
Entry Load	Nil	Exit Load *	1.0% *
Issue Opens	February 14, ...

NFO Review - Axis Midcap Fund

PersonalFN — Tue, 08 Feb 2011 06:57:17 GMT

Axis Midcap Fund

Axis Midcap fund is an open-ended equity fund from Axis Mutual Fund following a growth style of investing.

Summary

Type	Open-ended equity scheme	Benchmark Index	BSE Mid-Cap Index
Min. Investment	5,000	Face Value	10 per unit
Entry Load	Nil	Exit Load *	1.0% *
Issue Opens	January ...

Would entry load be back in Sinha's regime?

PersonalFN — Mon, 31 Jan 2011 11:37:21 GMT

The good old days of Mr. Bhave’s (Mr. C.B. Bhave present Chairman of SEBI) regime (where he incorporated revolutionary changes in order to safeguard investors’ interest), would soon end as Mr. Bhave’s three year term as the Chairman of Securities and Exchange Board of India (SEBI) comes to an end ...

NFO Review - Fidelity India Children's Plan

PersonalFN — Wed, 19 Jan 2011 09:23:51 GMT

An Open – Ended Hybrid Plan Comprising 3 Funds

Summary

Type : Open-ended Hybrid Scheme

Min. Investment : 5,000

Add. Investment : 500

Face value : 10 per unit

Issue opens : January 17, 2011

Issue closes : January 31, 2011

Benchmark Index :

Education Fund : 70% BSE 200 ...

Is your money being used to promote mutual fund schemes?

PersonalFN — Thu, 13 Jan 2011 12:08:26 GMT

The streets of Mumbai (and probably even the other streets in various cities of India), are suddenly appearing very colourful. This time it’s not the graffiti painters doing that, but the mutual fund houses trying to build their “brand equity” by promoting their brand name on most of the billboards ...

SEBI weeds out "junk" FIIs

PersonalFN — Tue, 11 Jan 2011 10:03:44 GMT

Certain ambiguous, unscrupulous and bogus FIIs that participate in our stock markets and expose it to wild swings, are now departing from India after the capital market regulator - Securities and Exchange Board of India (SEBI) enforced a ban (in April 2010) on certain Foreign Institutional Investor (FII) investment structures.

Earlier ...

NFO Review - Kotak Multi Asset Allocation Fund

PersonalFN — Fri, 07 Jan 2011 07:26:31 GMT

Kotak Multi Asset Allocation Fund

The fund combines income and diversification through asset allocation

Summary

Type	Open-ended Debt scheme	Benchmark Index	80% CRISIL MIP Blended Index and 20% Price of Gold
Min. Investment	10,000 (Non-SIP Purchase) and 1,000 (SIP Purchase)	Face Value	10 per unit
Entry Load	Nil	Exit Load ...

SEBI intends to link fund management fee to returns

PersonalFN — Wed, 15 Dec 2010 12:34:38 GMT

The capital market regulator – SEBI (Securities and Exchange Board of India) is considering a proposal wherein the fund management fees charged by equity mutual funds, will be linked to the performance of the scheme.

The proposal for “returns-linked management fee” was discussed at a meeting with investor associations last ...

Principal Smart Equity Fund

PersonalFN — Sat, 04 Dec 2010 07:05:34 GMT

Principal Smart Equity Fund

Principal Smart Equity Fund is an open-ended equity from Principal Mutual Fund which follows strong investment processes and systems.

Summary

Type	Open-ended equity scheme	Benchmark Index	CRISIL Balanced Fund Index
Min. Investment	5,000	Face Value	10
Entry Load	Nil	Exit Load *	Upto 1 year: 2.00% ...

It's easier to SIP now!!!

PersonalFN — Mon, 15 Nov 2010 07:23:32 GMT

At a time where the mutual fund industry, is facing tough time in garnering AUMs (Average Assets Under Management), as distributor no more find it lucrative enough to sell mutual funds (since commissions provided by the mutual fund houses are miniscule); mutual fund houses are now making smart moves in ...

Twinkle twinkle little star, how I wonder what you are?

PersonalFN — Fri, 01 Oct 2010 15:48:51 GMT

Star rating of Mutual Funds

What comes to your mind when you hear this? Yes you are right - the good old days of kindergarten. But here we are not reiterating the good old nursery rhyme which we all learnt in school.

We would like to tell you that in ...

Baroda Pioneer PSU Equity Fund - Seeking opportunity in PSUs

PersonalFN — Wed, 15 Sep 2010 10:01:44 GMT

Baroda Pioneer PSU Equity Fund (BPPEF) is mandated as a thematic fund, betting on companies in the PSU segment.

Summary

Type	Open-ended equity scheme	Benchmark Index	BSE PSU Index
Min. Investment	Rs 5,000	Face Value	Rs 10
Entry Load	Nil	Exit Load *	1.0%
Issue Opens	September 13, 2010	Issue ...

Reliance Small Cap Fund – An aggressive bet

PersonalFN — Tue, 31 Aug 2010 04:42:28 GMT

Reliance Small Cap Fund - An aggressive bet

Reliance Small Cap Fund (RSCF) is mandated as a predominant small cap fund, depicting an aggressive investment style, by betting on companies in the small cap segment.

Summary

Type	Open-ended equity scheme	Benchmark Index...

RBI's Annual Monetary Policy for 2010-11 Combating inflation once again

PersonalFN — Tue, 20 Apr 2010 12:56:00 GMT

The Reserve Bank of India (RBI) today announced its annual monetary policy for 2010-11. The move taken by the central bank is aimed at controlling the spiralling inflation without choking growth.

Inflation, as measured by the Wholesale Price Index (WPI), which earlier moderated in the first half of 2009-10, firmed ...

RBI combats inflation - increases repo and reverse repo rate

pfnadmin — Sat, 20 Mar 2010 13:00:00 GMT

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The Reserve Bank of India (RBI) has increased its key short-term lending and borrowing rates by 25 basis points each with immediate effect.

The Repo rate has been increased from 4.75% to 5.00%

Similarly, the reverse repo rate has also been increased from 3.25% to 3.50%

The ...

HDFC LTD. ANNOUNCES SYSTEMATIC SAVINGS PLAN

PersonalFN — Wed, 03 Feb 2010 00:00:00 GMT

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HDFC Systematic Savings Plan’ (HDFC SSP) is a monthly savings plan launched by the Housing Development Finance Corporation (HDFC Ltd.) offering medium to long-term instalment options.

The plan offers medium to long-term instalment options where the depositor can choose any period between 24 and 60 months and ...

Want to Hedge Inflation?

pfnadmin — Wed, 03 Feb 2010 00:00:00 GMT

Want to Hedge Inflation?

Devendra Nevgi writes about the how inflation affects lives and offers solutions to deal with it.Read more...

The recent Monetary Policy released by RBI laid its thrust on controlling the spiraling inflation, especially the food price inflation. One of the reasons behind the CRR hike was ...

RBI's Third Quarter Review of Monetary Policy 2009-10: Squeezing Liquidity

pfnadmin — Sat, 30 Jan 2010 00:00:00 GMT

The Reserve Bank of India (RBI) today announced its third quarter review of monetary policy for 2009-10. The fact that the central bank is worried about thespiraling effect excess liquidity on inflation is clearly indicated in the third quarter review.

RBI has stated that though the inflationary pressures in the ...

Mutual Funds to trade on the exchange

pfnadmin — Thu, 26 Nov 2009 00:00:00 GMT

Coming Monday (i.e Nov 30, 2009) investors will be able to transact in mutual funds through an online trading platform. The National Stock Exchange (NSE) platform - Mutual Fund Services System (MFSS), has been set up by the exchange along with National Securities Depositories Ltd. (NSDL). This will provide the ...

Mutual Fund Investing made easier

pfnadmin — Tue, 17 Nov 2009 00:00:00 GMT

The Securities and Exchange Board of India (SEBI) vide its circular SEBI/IMD/Cir No. 11/183204/2009, dated Nov 13, 2009, has allowed the registered stock brokers of recognised stock exchanges to function as the official point of acceptance for mutual funds. This effectively utilises the existing infrastructure with a reach of over ...

Shriram NCD offers returns upto 11.5%

pfnadmin — Thu, 30 Jul 2009 00:00:00 GMT

Shriram Transport Finance Company Limited (STFC) is again in the news. While only few days back the company came out with attractive fixed deposit offering, this time, it came out with a public issue of Secured Non-Convertible Debentures (NCDs).

The NCD is available for subscription from July 27, 2009 ...

UNDERSTANDING SEBI-S NEW RULE

PersonalFN — Mon, 06 Jul 2009 00:00:00 GMT

The SEBI circular on abolishing of Entry Loads was released on 30th June, 2009.
Given below are the relevant parts of the circular and how it affects you.

1. SEBI has been taking various steps to empower the investors in mutual funds by way of more transparency in the ...

Union Budget 2009-10 and its impact

pfnadmin — Mon, 06 Jul 2009 00:00:00 GMT

By presenting the Union Budget 2009-10, the Finance Minister has laid down the roadmap for the economic growth for the next one year. The major challenge for the government is to put the economy back on track and achieve the GDP growth rate of 9% p a.

The major focus ...

Union Budget 2009-10: Expectations run high!

pfnadmin — Thu, 02 Jul 2009 00:00:00 GMT

Union Budget 2009-10: Expectations run high! Last one year has been a tumultuous one for all - the common man as well as the investor. So whether it is the stock market crash, job losses or fading job opportunities, it entangled one and all. Though the current scenario is better ...

SEBI MAKES AN ANNOUNCEMENT - SO DOES PersonalFN!

pfnadmin — Thu, 25 Jun 2009 00:00:00 GMT

SEBI made an announcement last week.

It said:

"Transparency in payment of commission to Mutual Fund distributors:

There shall be no Entry Load for the schemes, existing or new, of a Mutual Fund. The upfront commission to distributors shall be paid by the investor to the distributor directly. The distributors ...

Fund of Funds - A smart way of investing in mutual funds

pfnadmin — Tue, 23 Jun 2009 00:00:00 GMT

Fund of Funds offer investors a unique and excellent investment proposition. These are mutual fund schemes that invest in the schemes of other mutual funds. That means; it takes the concept of mutual fund investing to another level. While mutual funds invest in stocks of various companies, FoFs invests in ...

Monetary Policy 2009-10: A highlight

PersonalFN — Wed, 22 Apr 2009 00:00:00 GMT

In the midst of the global turmoil and huge expectation, Reserve Bank of India (RBI) announced the Monetary Policy for the year 2009-10. Here are some of the fine points from the Monetary Policy.

Fine Points:

RBI has cut Repo rate by 25bps from 5.0% to 4.75%.
Reverse Repo rate ...

Has HSBC Midcap delivered?

pfnadmin — Thu, 12 Mar 2009 00:00:00 GMT

Since 2008, when the equity markets started declining, the midcap indices have fallen more than the large cap indices. This decline typifies the relatively higher risk associated with midcap stocks. Midcap funds therefore are lagging behind the other equity funds that have more fluid style of investment.

HSBC Midcap’s investment ...

Monetary Policy 2009-10: A highlight

pfnadmin — Sun, 22 Feb 2009 00:00:00 GMT

In the midst of the global turmoil and huge expectation, Reserve Bank of India (RBI) announced the Monetary Policy for the year 2009-10. Here are some of the fine points from the Monetary Policy.

Fine Points:

RBI has cut Repo rate by 25bps from 5.0% to 4.75%.
Reverse Repo rate ...

Should I discontinue my SIP?

pfnadmin — Wed, 28 Jan 2009 00:00:00 GMT

Nowadays, a question that investors routinely pose to the Personalfn financial planning team should I discontinue my SIP. The downturn in equity markets has adversely affected the performance of equity funds. With portfolios languishing in negative territory, expectedly, investors are a worried lot. Some investors have concluded that now ...

All you need to know about Gilt Funds

pfnadmin — Thu, 22 Jan 2009 00:00:00 GMT

Over the last few years, when equity markets were on an ascent, equity funds were favourites with investors. On the other hand, debt funds were considered unnecessary as they dragged down the portfolioâ€™s performance. Even risk averse investors didnâ€™t want to miss the boat by being invested in debt instruments. ...

Don-t slam mutual funds!

pfnadmin — Tue, 16 Dec 2008 00:00:00 GMT

The FMP story

pfnadmin — Fri, 14 Nov 2008 00:00:00 GMT

Fixed maturity plans (FMPs) have been in the news for all the wrong reasons in recent times. Now media reports suggest that the exit option in FMPs (i.e. the option to prematurely liquidate an FMP with the fund house after bearing the exit load) will soon be discarded. In other ...

Mutual Fund Roundup: October 2008

pfnadmin — Sat, 08 Nov 2008 00:00:00 GMT

Though the year 2008 has been quite tough on investors, the month of October proved to be a particularly harsh one. The stock markets fell sharply, largely on account of the deepening global financial crisis and fears of a lower economic growth.

The BSE Sensex shed 23.89% during the month ...

Curtains for 'SIP plus insurance'

PersonalFN — Tue, 23 Sep 2008 00:00:00 GMT

Recent media reports suggest that the SIP (systematic investment plan) plus insurance phenomenon will shortly come to an end. Leading life insurance companies under the aegis of an industry association have taken a decision to that effect. An eminent personality from the insurance industry was quoted stating that insurers would ...

Do you feel let down by your mutual fund investments?

PersonalFN — Sat, 06 Sep 2008 00:00:00 GMT

Few would dispute that the year 2008 has been tough on investors. This holds especially true for first-time investors i.e. the ones whose tryst with equity markets only began in the last few years. After having seen the markets surge to record highs, the downturn has certainly caught several investors ...

Mutual Fund Roundup: July 2008

pfnadmin — Sat, 02 Aug 2008 00:00:00 GMT

If there was a month that was action-packed for both political and economic reasons, then July 2008 would be the one. Nonetheless, after all the turbulence, markets still closed in positive terrain.

The BSE Sensex posted a gain of 6.64% during the month to close at 14,356 points; the S&P ...

Has HDFC Top 200 delivered?

pfnadmin — Sat, 26 Jul 2008 00:00:00 GMT

Despite having been in existence for a while, index funds have never quite captured the domestic investor's imagination. And the reasons are not hard to see, given that index funds have been outscored by actively managed funds for a better part of their existence. However, a related investment style i.e. ...

FMPs: Beware of the credit risk

PersonalFN — Fri, 25 Jul 2008 06:21:00 GMT

For some time now, FMPs (fixed maturity plans) have become a regular feature in the investor’s portfolio. In particular, FMPs have found favour with the investor with a low risk appetite. While FMPs have always had an element of risk, until now it was largely restricted to the actual yield ...

Do you have a core portfolio in place?

pfnadmin — Sat, 12 Jul 2008 00:00:00 GMT

At Personalfn, we regularly interact with investors who need assistance with their financial planning. And often the latter entails (among others), conducting a review of their existing investment portfolios. An increasingly common and rather disturbing trend is the absence of a solid â€˜coreâ€™ portfolio. In recent times, we have met ...

Has Magnum Contra delivered?

pfnadmin — Thu, 10 Jul 2008 00:00:00 GMT

Contra investing draws from value investing and is regarded as a subset of the latter. It entails investing in fundamentally strong companies/sectors/themes that are presently out of favour. In other words, the fund manager takes a bet that is contrary to the popular trend in the markets and hence the ...

Value Funds: A performance review

pfnadmin — Fri, 04 Jul 2008 00:00:00 GMT

With the turbulence in equity markets only getting worse, most equity fund investors are wondering what they should be doing now should they redeem or stay invested? At Personalfn, we believe that equities are for the long-term (at least 3-5 years) and a dip in stock markets must be viewed ...

Is DSP ML Balanced Fund a prudent choice?

pfnadmin — Fri, 20 Jun 2008 00:00:00 GMT

Over the last few years, when equity markets were surging northwards, balanced funds were relegated to the sidelines. Instead, equity funds, especially new fund offers (NFOs) were the season's flavour. Fund houses were busy launching a slew of infrastructure and global funds, among others. And most advisors (taking a cue ...

Has Magnum Equity Fund delivered?

pfnadmin — Wed, 18 Jun 2008 00:00:00 GMT

While both large and mid cap funds have been at the receiving end of volatility in equity markets, by and large, the latter have been worse hit. In some ways, this performance typifies the relatively higher risk associated with mid cap investments.

Large cap companies tend to have predictable revenue ...

UTI Master Plus: Lags the competition

pfnadmin — Thu, 12 Jun 2008 00:00:00 GMT

For an asset management company (AMC) that launched its products years ahead of the competition, UTI (Unit Trust of India) has met with limited success. Most of its funds have achieved little of note except maybe garner a lot of assets because of the misconceived government backing. This time we ...

Have infrastructure funds delivered?

PersonalFN — Wed, 04 Jun 2008 00:00:00 GMT

These are interesting times for investors. The testing market conditions have finally offered them the opportunity to appropriately evaluate their investments. Over the past few years, when equity markets rose almost secularly, the investment scenario became rather skewed. Any fund that took on above-average risk was capable of delivering a ...

DSP ML Top 100: Towering performer

PersonalFN — Sat, 31 May 2008 00:00:00 GMT

In the context of Indian stock markets, there is lack of consensus with regards to the definition of large caps, mid caps and small caps. So most fund houses have their own definitions for various stock categories.

The situation is no different on the mutual fund side. There is no ...

Arbitrage Funds: Not good enough

PersonalFN — Tue, 27 May 2008 00:00:00 GMT

Among the innovations in the mutual fund industry the one that ranks high in the confused investor’s list is ‘Arbitrage Funds’. It is easy to understand why. Ask any investor in arbitrage funds how arbitrage works and his response is likely to be – I don’t understand arbitrage but so ...

About tax-saving funds and SIPs

pfnadmin — Sat, 24 May 2008 00:00:00 GMT

If the title of this article surprises you, we won't hold it against you. It's not common to find tax-planning being discussed this early in the financial year. Then again, good advice isn't commonly available either.

At Personalfn, we have consistently maintained that tax-planning is as much about contributing to ...

Tata Contra Fund: Yet to cheer investors

pfnadmin — Tue, 20 May 2008 00:00:00 GMT

At Personalfn, our view on new fund offers (NFOs) is well-documented. We have always maintained that investors should invest in NFOs only if they offer an investment proposition that is distinct from the one offered by existing funds. Given that NFOs are untested entities, investing in funds with proven track ...

How to tackle rising interest rates

PersonalFN — Sat, 10 May 2008 00:00:00 GMT

As if any proof was needed, the spate of Cash Reserve Ratio (CRR) hikes clearly underlines the Reserve Bank of India’s intention to clamp down on inflation before the situation deteriorates any further. For risk-averse investors that’s bad news. It is widely acknowledged that rising interest rates can knock the ...

Thematic funds: They are a changing!

PersonalFN — Thu, 08 May 2008 09:05:00 GMT

If you are an investor who fancies getting invested in sector/thematic funds, these are interesting times. A leading fund house has just launched 2 thematic funds, one exploring investment opportunities in the Banking and Financial Services sectors; the other fund targets the Entertainment Industry. But, that isn’t the reason why ...

Fund of Funds: Have they delivered?

pfnadmin — Sat, 26 Apr 2008 00:00:00 GMT

Like most investment fads, Fund of Funds (FoFs) were launched with much fanfare. Superior diversification was the main plank for launching FoFs, although the investor had to pay for this by way of higher expenses. Now that many of the earliest FoFs have completed three years in the industry, it's ...

Kotak Contra: Far from impressive

pfnadmin — Fri, 04 Apr 2008 00:00:00 GMT

The recent downturn in equity markets has provided investors the opportunity to evaluate their mutual fund investments in a new light. While riding rising markets by taking on higher risk is the easy route to deliver an impressive showing, the fund's showing during a prolonged bear phase is often the ...

Is the dividend option in an NFO a smarter choice?

pfnadmin — Thu, 20 Mar 2008 08:52:00 GMT

What’s better the dividend option or the growth option? That’s one question, which investors regularly pose to us. In the case of an equity fund, so long as both the options have the same portfolio, they are at par (on rare occasions, some funds have different portfolios for the growth ...

HSBC Midcap: Not good enough

pfnadmin — Tue, 18 Mar 2008 00:00:00 GMT

To make the most of investment opportunities in stock markets, mid cap funds have always ranked high among risk-taking investors. Investors have observed on more than one occasion that mid cap funds can offer above-average growth potential vis-à-vis large cap stocks. However, the fact that usually gets ignored is that ...

ICICI Prudential Discovery: Missing value

pfnadmin — Thu, 13 Mar 2008 00:00:00 GMT

Broadly speaking, growth and value are the two popular investment styles. Growth style investing entails making investments in fairly/fully valued stocks that are expected to do even better going forward. Conversely, value investing involves making investments in fundamentally strong companies that are trading at a discount to their fair value. ...

Birla Top 100: Far from the Top

pfnadmin — Tue, 04 Mar 2008 00:00:00 GMT

Birla Sun Life Mutual Fund recently launched a new fund offer (NFO) Birla Pure Value Fund. This is among several NFOs launched by the fund house over the last few years. To that end, now is a good time to review one of its earlier NFOs Birla Top 100 Fund ...

What’s the Kotak Opportunities story?

pfnadmin — Wed, 27 Feb 2008 07:09:00 GMT

Every once in a while, a fund appears out of nowhere to clock blistering growth and occupy the top position in the rankings. Expectedly, this leads to a surge in investor interest. It’s a different matter that in due course (read over the long-term and across market phases), not many ...

Morgan Stanley Growth: A bad precedent

pfnadmin — Thu, 21 Feb 2008 00:00:00 GMT

Morgan Stanley Mutual Fund launched an equity fund a long time ago (in January 1994). So in many ways Morgan Stanley A.C.E. Fund is its first launch for a lot of investors who either weren't investing in 1994 (since a majority investors have taken to mutual funds only over the ...

Positive turnaround...

pfnadmin — Sat, 16 Feb 2008 00:00:00 GMT

After a disappointing start, the markets made a positive turnaround during the later half of the week, with the Sensex ending in the positive in 3 consecutive sessions inspite of the Reliance IPO debacle. For the week ended February 15, 2008, the Sensex gained 3.7%, while the Nifty gained 3.6%. ...

SEBI bats for investors!

pfnadmin — Wed, 06 Feb 2008 00:00:00 GMT

It's not often that the market regulator finds itself receiving accolades and kudos from investors. Then again, it's not often that the regulator introduces a host of investor-friendly regulations in quick succession.

Not too long ago, the Securities and Exchange Board of India (SEBI) ruled that investors could avoid paying ...

Robbing Peter to pay Peter

pfnadmin — Wed, 30 Jan 2008 07:51:00 GMT

For a lot of investors, dividend income means a lot. This holds true for investors in mutual funds as well as stocks. Now, investing in stocks calls for a totally different skill set. With stocks, regular dividends (in combination with other key factors like revenue and profit growth, cash flows) ...

DSP ML Opp: Performing across market cycles

pfnadmin — Wed, 23 Jan 2008 00:00:00 GMT

Opportunities funds, powered by their fluid investment style, can target a wider range of investment opportunities to maximise growth. They have the mandate to invest across market capitalisations (large cap, small and mid cap stocks), asset classes (equities and debt instruments) and sectors. This provides the fund manager with the ...

Why FMPs turn negative?

pfnadmin — Thu, 10 Jan 2008 07:00:00 GMT

Fixed maturity plans (FMPs) were an innovation designed mainly to give investors a fairly certain rate of return in the backdrop of interest rate instability. FMPs are close-ended debt funds (investments can be made only during the new fund offer period) with a fixed maturity horizon (i.e. the investment maturity, ...

Magnum Multicap Fund: A disappointment

pfnadmin — Fri, 28 Dec 2007 00:00:00 GMT

At Personalfn, we have always been wary of new fund offers (NFOs); we prefer funds with proven track records across parameters and market phases. NFOs falter on two counts 1) they are untested and 2) most of them have nothing unique (vis-à-vis existing funds) to offer in terms of an ...

Should you invest in index funds?

pfnadmin — Wed, 19 Dec 2007 00:00:00 GMT

With equity markets surging sharply over the last 12 months, expectedly the performance of index funds has looked up as well. In fact the growth clocked by benchmark indices (and index funds alike) over this time frame has been so impressive, that quite a few diversified equity funds have failed ...

Diversified Equity Funds are DEAD

pfnadmin — Mon, 17 Dec 2007 00:00:00 GMT

So far in December 2007, various Asset Management Companies (AMCs) have filed offer documents for twelve new equity-oriented fund offerings. All of them are either thematic or sector funds. If one were to go by just this fact, then yes, diversified funds are dead.

So what are sector/thematic funds?
Well, ...

HDFC Prudence: Striking the right balance!

PersonalFN — Tue, 11 Dec 2007 00:00:00 GMT

Balanced funds are a forgotten breed today and that is not surprising at all. Who has the time for an investment with a debt component, when riding the equity markets by being fully invested in equities seems like the order of the day? However, being financial planners, we have a ...

Sundaram Select Midcap: Stands tall

PersonalFN — Tue, 27 Nov 2007 00:00:00 GMT

For obvious reasons, investing in mid cap funds has struck a chord with investors for quite some time now. It is widely acknowledged that mid cap funds offer above-average growth potential. However, the point that gets missed is that this growth potential comes at a price, i.e. higher risk.

Sundaram ...

Mutual Fund Roundup: October 2007

PersonalFN — Sat, 03 Nov 2007 00:00:00 GMT

It was another good month for investors as equity markets surged northwards and touched record highs. The BSE Sensex posted a gain of 14.73% during the month to close at 19,838 points; the S&P CNX Nifty appreciated by 17.53% to settle at 5,901 points. The CNX Midcap rose by 8.49%, ...

HDFC Top 200: Proving its mettle

pfnadmin — Fri, 19 Oct 2007 00:00:00 GMT

At Personalfn, we have always maintained that investors are better off investing in mutual funds with a proven track record across time frames and market phases. Also the fund should not simply generate a higher return (since a lot of funds can do this effortlessly during a market rally), but ...

Is PMS an opportunity for you?

PersonalFN — Wed, 17 Oct 2007 00:00:00 GMT

This article has been sourced from the September 2007 issue of Money Simplified NRI Investment Guide 2008.

Portfolio Management Schemes (PMS) are hugely popular with investors these days. Interestingly, a large number of investors we meet at Personalfn are already evaluating an equity PMS opportunity, but usually for the wrong ...

DSP ML Equity: Adding value to portfolios

pfnadmin — Mon, 08 Oct 2007 00:00:00 GMT

What does it take for a fund to qualify as a good fund? Does the fund have to score on the returns front? Or should the fund make the grade by exposing investors to lower risk? Given that the term good fund is a subjective one, every investor will have ...

How CAGR can be misleading

pfnadmin — Fri, 28 Sep 2007 10:23:00 GMT

For most investors, a fund’s performance on the net asset value (NAV) appreciation front is sacred i.e. returns is the only parameter to be considered while making an investment decision. Its showing on other parameters like volatility control and risk-adjusted return is almost never taken into account; also, the fund’s ...

Franklin Bluechip: Making a point

PersonalFN — Fri, 07 Sep 2007 00:00:00 GMT

Franklin India Bluechip Fund (FIBF) is one the oldest, largest and most popular equity funds in the country. So much so that every time it sneezes, investors catch a cold. This should give an idea of how much of investors monies are riding on the fund. Over the last few ...

Past performance is not everything

pfnadmin — Sat, 01 Sep 2007 10:33:00 GMT

If you are a type of investor who goes through the fact sheet or offer document, in order to study a particular scheme before investing in it, you would have come across a disclaimer (below the scheme’s historical returns) stating, past performance may or may not be sustained in future ...

Fidelity Equity Fund: So far so good

PersonalFN — Sat, 25 Aug 2007 00:00:00 GMT

Personalfn's aversion to recommending new fund offers (NFOs) is a well-known fact. Over the years, we have consistently championed the cause of established and proven funds vis-à-vis NFOs. Our rationale is fairly simple. An NFO is an untested entity; conversely, investors have the option of investing in proven funds with ...

Sundaram Rural India Fund: Yet to reap benefits

PersonalFN — Fri, 17 Aug 2007 00:00:00 GMT

At Personalfn, we have never been advocators of sector/thematic funds. In fact, we have always considered them to be bugbears for investors and maintained that investors should stay away from sector/thematic funds. Sector funds (which invest in stocks from a single sector like pharma or software) or thematic ...

Indian markets: From sublime to sub-prime

PersonalFN — Sat, 11 Aug 2007 00:00:00 GMT

Over the last couple of weeks, domestic markets have woken up to the sub-prime problem, an issue that finds its roots in the US housing market, but one that has quickly spread across other countries. The BSE Sensex posted a loss of 1.78% to close at 14,868 points; the S&P ...

Tech Funds: A mistake if you had invested

PersonalFN — Fri, 10 Aug 2007 00:00:00 GMT

In this article, the third in our series on sector funds, we discuss the performance of the infamous technology funds. With the benefit of hindsight, of course, they are infamous. But in the first quarter of 2000 they were a rage; and why not? The doubled your money in less ...

Pharma Funds: Bitter Returns

PersonalFN — Wed, 08 Aug 2007 00:00:00 GMT

If you have been visiting Personalfn over the years, you know that we have been very consistent in our view on sector funds. We have always recommended that investors avoid such funds, unless they are prepared to take on very high risk. Recently, we cautioned investors regarding going overboard on ...

Mutual Fund Roundup: July 2007

PersonalFN — Sat, 04 Aug 2007 00:00:00 GMT

Notwithstanding, the 542-point dip on July 27, 2007, it was a good month for investors as markets closed in positive terrain. The BSE Sensex posted a gain of 6.14% to close at 15,551 points, while the S&P CNX Nifty closed at 4,529 points (up by 4.89%). The CNX Midcap rose ...

When funds alter their positioning...

pfnadmin — Thu, 02 Aug 2007 11:04:00 GMT

Consistency is an important virtue while managing finances. This holds true not only for investors, but also fund houses that are responsible for managing investors’ monies. Any slip-up on the same could spell disaster for investors. Sadly, lack of consistency is a prevalent phenomenon in the mutual fund industry. And ...

Infrastructure Funds: Hot Property!

PersonalFN — Thu, 02 Aug 2007 00:00:00 GMT

Well, here is one opportunity that everyone is sure about the infrastructure sector. Investors are pouring money into infrastructure stocks and funds. The logic is very simple. India is a growing economy and there is huge demand for infrastructure. So, these companies are likely to see exemplar growth. Indeed, this ...

SBI Blue Chip Fund: A laggard so far

PersonalFN — Fri, 27 Jul 2007 00:00:00 GMT

The 2005-06 period saw an unprecedented number of new fund offers (NFOs) being launched. With equity markets soaring, virtually every fund house under the sun was busy capitalising on the euphoria by launching NFOs. It's a different matter that most of the NFOs were refurbished versions of existing funds and ...

Franklin Prima Plus vs. Franklin Flexi Cap

PersonalFN — Thu, 12 Jul 2007 00:00:00 GMT

An investor failing to see any perceptible difference between two offerings from the same fund house isn't entirely uncommon. In fact, it's a rather common phenomenon in the context of the Indian mutual fund industry, given fund houses penchant for new fund offers (NFOs). At one point in time, NFOs ...

A tale of 2 mid cap funds

pfnadmin — Mon, 02 Jul 2007 00:00:00 GMT

Increasingly, mid cap funds have turned out to be a popular avenue for investors. The sharp growth clocked by mid cap stocks/funds has no doubt played its role in endearing them to investors. However, since mid cap funds as an equity fund category, does not have enough funds with established ...

Certification? Begin with distributors first

PersonalFN — Wed, 20 Jun 2007 00:00:00 GMT

While the mutual fund industry is still grappling with having mutual fund distributors adequately certified, there is talk of getting fund managers certified. The move is targeted at having fund managers clear a certification test so that they are qualified with a standard qualification and can be expected to manage ...

Churning leads to losses

PersonalFN — Wed, 13 Jun 2007 00:00:00 GMT

Many a times, due to various reasons, investors are tempted to shift their investments from one fund to another. However, in the process what they fail to realise is that the shifting of investments comes at a cost. Redemption from an existing fund and subsequent reinvestment in the other, involves ...

HDFC TaxSaver Vs HDFC LT Advantage

PersonalFN — Thu, 05 Apr 2007 00:00:00 GMT

We have always advocated the idea of starting the tax-planning exercise earlier in the year. Now with financial year 2006-07 behind us, there is a danger of complacency setting in with regards to tax-planning for the next financial year. In our view, it is a good idea to commence your ...

Index funds Vs Actively managed funds

PersonalFN — Wed, 28 Mar 2007 00:00:00 GMT

This article was written by Personalfn for Business India and was a part of the feature Fund House of the Year. It was carried in the March 25, 2007 issue with the title, "Understanding funds". The original draft, in its entirety, has been retained here.

Mutual funds can be broadly ...

How do tax-saving funds fare?

pfnadmin — Sat, 17 Mar 2007 00:00:00 GMT

We are in the last leg of the tax-planning season and investing in tax-saving funds (ELSS) is high on most risk-taking investorsto-do lists. At Personalfn, we have always maintained that investing for the purpose of tax-saving is no different from regular investing. Hence the principle of investing in line with ...

Open letter to SEBI: Your Views

PersonalFN — Fri, 09 Mar 2007 00:00:00 GMT

At the risk of sounding immodest, our article Open letter to SEBI Factsheets elicited a lot of visitor feedback; most of the feedback agreed with our stand on the issue of transparent and consistent disclosure of all relevant information related to a mutual fund scheme. More than the quality of ...

More hurdles for mutual fund investors

pfnadmin — Mon, 26 Feb 2007 00:00:00 GMT

As the range of mutual fund offerings get more complex (what with dozens of new fund offerings being launched every month), the need for basic and relevant information increases manifold. However, not everyone sees it that way.

Some are of the view that if the mutual fund investor wants information ...

Tax-Saving Funds: Where to invest?

PersonalFN — Wed, 24 Jan 2007 00:00:00 GMT

Being in the last quarter of the financial year, tax-planning is a top priority for most investors. Investments in designated avenues are eligible for a deduction (of upto Rs 100,000) from gross total income under Section 80C of the Income Tax Act. Some of the popular investment avenues are National ...

Debt Funds: Where to invest in 2007

pfnadmin — Fri, 19 Jan 2007 00:00:00 GMT

This article was written by PersonalFN for Business India, and was carried in its January 14, 2007 issue with the title, "Gaining from debt". The original draft, in its entirety, has been retained here.

Few would dispute the fact that conditions in debt markets haven’t been conducive from a ...

The best equity funds for 2007

PersonalFN — Wed, 17 Jan 2007 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its January 14, 2007 issue with the title, "Steps to fortune". The original draft, in its entirety, has been retained here.

It's the start of a new year and maybe its time for investors to take a ...

Mutual Fund Roundup: December 2006

PersonalFN — Sat, 06 Jan 2007 00:00:00 GMT

Year 2006 came to an end in the month of December, but not before witnessing another bout of high volatility in the stock markets. Notwithstanding the turbulence, stock markets closed the month in positive terrain. The BSE Sensex appreciated by 0.66% to close at 13,787 points; the S&P CNX Nifty ...

Are infrastructure funds for you?

pfnadmin — Thu, 04 Jan 2007 00:00:00 GMT

Infrastructure funds have a mandate of investing predominantly in the infrastructure sector. In present times, as the India growth story unfolds, investors see this as a great opportunity for companies in the infrastructure sector. But are these the right funds to invest in? Or for that matter should one invest ...

Do the stars really foretell?

pfnadmin — Fri, 22 Dec 2006 00:00:00 GMT

Before you jump to any erroneous conclusions, a clarification is in order. Personalfn has not branched out into astrology, nor does reading horoscopes feature on our agenda. We continue to be financial planners and providing investors with best-in-class and personalised financial planning services, among others is still our calling. In ...

Got something new in your portfolio?

pfnadmin — Tue, 07 Nov 2006 00:00:00 GMT

The retail investor's fascination for something new in his portfolio is a phenomenon which has repeatedly confounded us. In fact, the most often-repeated request from investors tends to be for a new fund. So what makes the idea of investing in a new fund tick and does it make sense ...

Pharma funds: No relief!

pfnadmin — Fri, 20 Oct 2006 00:00:00 GMT

The most important benefit that mutual funds offer to investors is the opportunity to diversify across sectors and market segments. They work on the principle that the fund stands a better chance of delivering by investing in stocks belonging to various sectors and market segments. As a result, the fund ...

Money Simplified turns 25!

PersonalFN — Fri, 20 Oct 2006 00:00:00 GMT

Arguably India's most popular financial planning guide has launched yet another issue, its 25th, in its ongoing endeavour to guide the retail investor in making the best financial decisions. To be sure, we had no inkling when we embarked on this initiative in August 2002 that it would turn out ...

When will the mutual fund industry grow up?

pfnadmin — Mon, 09 Oct 2006 00:00:00 GMT

As on September 30, 2006, the domestic mutual fund industry held assets under management of over Rs 2,900 bn (i.e. Rs 290,000 crores); a growth of nearly 46% over the last 12 months. Other statistics reveal that a higher portion of investors savings is now invested in market-linked avenues like ...

How mutual funds use derivatives

PersonalFN — Mon, 11 Sep 2006 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its September 10, 2006 issue with the title, "Gains through derivatives". The original draft, in its entirety, has been retained here.

In the last few months a lot has been said and heard about the use of ...

Mutual Funds: A wake up call for all

pfnadmin — Thu, 31 Aug 2006 00:00:00 GMT

The recent developments pertaining to SBI Mutual Fund and its investment, on a preferential basis, in a technology company in early 2000 (just ahead of the tech meltdown) have been grabbing headlines. In this note, we do not offer our view on whether the investment decision was justified or not. ...

Capital Protection Schemes: Is it a good deal?

PersonalFN — Fri, 25 Aug 2006 00:00:00 GMT

The risk that market-linked investment avenues (like mutual funds) pose to investors is erosion of capital. Any movement in the stock market is clearly reflected in the performance of an equity fund; the extent to which the fund responds to the movement however depends on various factors like the investment ...

Principal Focussed Advantage: Seeking focus

PersonalFN — Thu, 24 Aug 2006 00:00:00 GMT

Diversification is a rather underrated criterion in the context of investing. That perhaps explains the popularity enjoyed by sector and thematic funds. These funds function on the proposition of capitalising on attractive investment opportunities in a single sector like technology or themes like infrastructure or the spending prowess of the ...

Exchange Traded Funds: Lower expenses is key

PersonalFN — Thu, 20 Jul 2006 00:00:00 GMT

Exchange Traded Funds (ETF) is another category of mutual funds trying to establish its roots in the industry. As the name suggests, ETFs are listed and traded on the stock exchange, thereby offering investors a convenient mode to buy and sell mutual fund units. While ETFs have established a track ...

Should you invest in software funds?

PersonalFN — Thu, 13 Jul 2006 00:00:00 GMT

Sector funds have always been a much-discussed mutual fund category. The reason for this has been the misconception that they can clock impressive growth in a short time frame. Sector funds mainly invest in companies from a single sector like pharma or technology, for instance. Although this helps the fund ...

Another rap on knuckles for fund houses

PersonalFN — Thu, 22 Jun 2006 00:00:00 GMT

There are no two ways about it. SEBI (Securities and Exchange Board of India) does not trust AMCs (Asset Management Companies) to settle anything on their own. Every time Mr. Damodaran (SEBI Chairman) identifies a problem with the mutual fund industry, he simply makes rules/regulations for the AMCs so that ...

Sundaram Select Midcap: Rider on the storm

PersonalFN — Wed, 21 Jun 2006 00:00:00 GMT

The high risk high return investment proposition which mid cap stocks and funds offer has by now been adequately documented. In the 2004-05 period, mid cap stocks hit a purple patch and mid cap funds were the season's flavour. However it wasn't until the recent downturn in equity markets that ...

Magnum COMMA comes to a full stop

pfnadmin — Wed, 14 Jun 2006 00:00:00 GMT

At Personalfn, we have never been advocators of sector/thematic funds; in fact we have always considered them to be bugbears for investors. Sector funds (which invest in stocks from a single sector like pharma or software) or thematic funds (which invest in stocks from multiple sectors related to ...

Time for the smart money to move in

PersonalFN — Thu, 08 Jun 2006 00:00:00 GMT

This note was sent out to Personalfn's clients on the 8th of June 2006. We have reproduced the same here for the benefit of all our visitors

Here is a quick question in addition to Personalfn, how many of you are clients of banks and other brokers, which are now ...

Why are the Indian stock markets falling?

PersonalFN — Fri, 19 May 2006 00:00:00 GMT

This note on the stock markets was sent out to Personalfn's clients on the 18th of May 2006. We have reproduced the same here for the benefit of all our visitors.

Among the key probable reasons the stock markets are falling are -

Recent inflation data and comments by the ...

Mutual Fund Roundup: April 2006

PersonalFN — Tue, 09 May 2006 00:00:00 GMT

Equity markets scaled all-time highs in April. The BSE Sensex crossed the 12,000-point mark to close at 12,209 points (up 5.57% over the month); the S&P CNX Nifty appreciated by 3.80% to settle at 3,606 points. The CNX Midcap posted a gain of 5.99% to close at 5,190 points.

Mutual ...

Now is the time to start your tax-planning...

pfnadmin — Mon, 08 May 2006 00:00:00 GMT

To begin with, let's discuss some by now 'familiar and reiterated' facts. Equity markets are at record highs and equity-oriented funds have clocked incredible returns over the last 3 years. Confidence levels among investors have never been higher and mutual fund schemes have emerged as the most favoured investment avenue. ...

3 balanced funds to invest in

PersonalFN — Tue, 02 May 2006 00:00:00 GMT

Balanced funds have been in the news recently on account of the Budget proposal which will force them to hold a higher equity component to be eligible for tax benefits associated with equity-oriented funds. While some fund houses are likely to change the investment mandates of their existing schemes to ...

Monthly Income Plans: Forgotten heroes!

PersonalFN — Mon, 24 Apr 2006 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its April 23, 2006 issue with the title, "Forgotten heroes!". The original draft, in its entirety, has been retained here.

It's been quite a journey for Monthly Income Plans (MIPs). From occupying centre stage in 2004, the ...

What makes Taurus Starshare tick?

PersonalFN — Fri, 21 Apr 2006 00:00:00 GMT

Taurus Starshare is a fund which has frequently featured in various weekly and monthly top performers lists. At Personalfn, we have also received queries from investors wanting to know more about the fund and its prospects.

For starters, the fund is called Taurus The Starshare, and is an ...

Ajit Dayal on stock markets and interest rates

pfnadmin — Mon, 10 Apr 2006 00:00:00 GMT

Stock markets have run up significantly over the last couple of weeks, catching even the most optimistic investor by surprise. On the other hand, the rise in interest rates shows no signs of letting up. In the midst of this, SEBI (the market watchdog) played its role to the hilt ...

SEBI steps in to clean the mess

PersonalFN — Sat, 08 Apr 2006 00:00:00 GMT

The Securities and Exchange Board of India (SEBI) finally stepped in with a long-pending twin move to clear the air on amortisation of NFO (new fund offer) expenses and set norms on dividend declaration. In our view, both these moves deserve the thumbs up from the investing community. They will ...

Morgan Stanley IIF Vs Indian equity funds

PersonalFN — Tue, 14 Mar 2006 00:00:00 GMT

Ask any Non-Resident Indian (NRI) about his mutual fund portfolio and there is very good chance that Morgan Stanley India Investment Fund (MSIIF), an exchange-traded fund (ETF), features in it. A lot of NRIs, several of them Personalfn clients, want to know if there is a better alternative to Morgan ...

NFOs: Are you game?

PersonalFN — Mon, 13 Mar 2006 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its March 12, 2006 issue with the title, "Are you game for the new offer?". The original draft, in its entirety, has been retained over here.

New Fund Offers or NFOs as they are popularly referred to, ...

Balanced Funds: Caught off-balance

PersonalFN — Tue, 07 Mar 2006 00:00:00 GMT

As far as mutual fund investors were concerned, Budget 2006-07 was on expected lines. There was a long-pending move to strike parity between open-ended and close-ended equity funds. There were a couple of proposals to allow greater flexibility to equity funds to invest abroad. A major negative came in the ...

Welcome to the jungle!

PersonalFN — Mon, 27 Feb 2006 00:00:00 GMT

Some of the recent events and product launches in the mutual fund industry have us stumped. They have evoked contradictory sentiments of concern and humour. While we have vented our concern in several articles over the months, we think its time to share our not-so-serious views on these developments.

Quite ...

Factsheets: A need for standardisation

PersonalFN — Thu, 16 Feb 2006 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its February 12, 2006 issue with the title, "Facts about factsheets".

Our grouse with the mutual fund industry continues. At a time when the industry is evolving into launching more innovative products (read high risk thematic funds), ...

Monetary Policy & YOU

PersonalFN — Wed, 25 Jan 2006 00:00:00 GMT

The Reserve Bank of India (RBI) caught most experts by surprise by raising short-term interest rates. It hiked the reverse repo rate to 5.50% (from 5.25%). The RBI borrows from the banks at the reverse repo rate. It also hiked the rate at which it lends to the banks, the ...

6 equity funds for 2006

PersonalFN — Mon, 16 Jan 2006 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its January 2, 2006 issue with the title, "The Fabulous Five". The original draft, in its entirety, has been retained over here.

Make that - 6 evergreen equity funds. In our view these funds have done enough ...

Mutual Funds: A year to remember!

PersonalFN — Fri, 30 Dec 2005 00:00:00 GMT

2005 is likely to be remembered as a year when the two major mutual fund segments i.e. equity funds and debt funds pitched in starkly divergent performances. While equity funds (much to the glee of investors), rode the bull run, investors in the debt funds segment had little reason to ...

Fidelity Equity Fund: Built to last?

PersonalFN — Wed, 30 Nov 2005 00:00:00 GMT

At Personalfn, we are advocators of investing in time tested funds from fund houses with a solid reputation. We believe that a fund needs to prove its mettle across parameters and market cycles (bull runs and bear phases) and do so consistently before it can be considered for ...

Index funds: Are you missing out?

PersonalFN — Tue, 29 Nov 2005 00:00:00 GMT

At Personalfn we have agonised over this question and have come up with some answers. One reason why index funds do not make it to the investo's must-invest list is because they are perceived as too dull and boring. When you have actively managed funds that are doing a very ...

When the fund manager calls it a day...

pfnadmin — Thu, 24 Nov 2005 00:00:00 GMT

Few would dispute the importance of a fund manager when it comes to a mutual fund scheme. He is responsible for managing investors’ monies and plays a vital role in aiding the fund accomplish its stated investment objectives. So what happens when this individual calls it a day? How does it impact the fund and ...

ELSS: Babus at their best!

PersonalFN — Wed, 09 Nov 2005 00:00:00 GMT

The new guidelines for investing in the Equity Linked Savings Schemes (ELSS), or what is otherwise known as tax-saving funds, have been notified by the Government. Although the Babus who framed the rules can't be faulted for what seem to be unnecessary changes to the structure of ELSS (notifications that ...

A return to large cap funds

pfnadmin — Wed, 05 Oct 2005 00:00:00 GMT

Who would have thought that an article on this subject would be written in the midst of a mid cap mania? Personalfn, for one, has been a votary of large cap funds and this is amply reflected in our advice to clients. Now we have had a couple of 'new ...

Debt funds: Dynamism pays!

PersonalFN — Thu, 22 Sep 2005 00:00:00 GMT

It has been a tough ride for debt fund investors over the last two years. The uncertain interest rate environment has taken the sheen off debt fund investments. It has been a fall from grace for debt funds which were investors favourites during the softer interest rate regime. Also the ...

5 reasons why mutual funds score over stocks

PersonalFN — Tue, 20 Sep 2005 00:00:00 GMT

The way investors are taking to mutual fund 'new fund offers' one would think mutual funds were going out of style. This probably leads a lot of risk-taking individuals into believing that mutual funds are a great way to invest else so many investors would not be putting their hard-earned ...

Balanced funds revisited...

PersonalFN — Tue, 06 Sep 2005 00:00:00 GMT

Recently we profiled the monthly income plan (MIP) segment and highlighted how it can add significant value to investors' portfolios. Our intention was to focus on segments (other than diversified equity funds) which seem to have escaped investors' attention despite pitching in good performances. In this article we deal with ...

Our view on DSP Merrill Lynch Super SIP

PersonalFN — Mon, 05 Sep 2005 00:00:00 GMT

DSP Merrill Lynch Super SIP is an innovative systematic investment plan (SIP) launched by DSP ML Mutual Fund. To begin with, it's not a new fund offer as a lot of investors believe. Rather, the fund house has added an innovative feature wherein investments in the fund's existing SIPs have ...

Is asking for rebates worth your while?

pfnadmin — Thu, 25 Aug 2005 00:00:00 GMT

Despite being explicitly prohibited, the practice of rebating or passing commission continues to be a rampant one in the mutual fund industry. Simply put, mutual fund distributors and investment advisors remit a part of their commission earnings back to the investors thereby rewarding the investors for making investments through them. ...

SEBI for the retail investor?

PersonalFN — Wed, 24 Aug 2005 00:00:00 GMT

The Securities and Exchange Board of India (SEBI) seems to be losing its patience with fund houses (Asset Management Companies). After raising concerns in the past about fund houses failing to attract fresh monies in new fund offer and only having existing monies churned, SEBI has now targeted the rising ...

Have you checked on MIPs lately?

PersonalFN — Tue, 23 Aug 2005 00:00:00 GMT

When was the last time you checked on or invested in the MIP (Monthly Income Plan) segment for that matter? With equity markets touching record highs, investors' attention seems to be focused solely on the diversified equity funds segment and especially the new fund offers (NFO). As a result, other ...

Tax-saving funds: Headed for eternity!

pfnadmin — Tue, 16 Aug 2005 00:00:00 GMT

Union Budget 2005-06 proved to be a watershed event for tax-savings funds. Hitherto, investments for the purpose of tax deduction (under the erstwhile Section 88) were subject to upper limits. For example the cap on tax-saving funds was placed at Rs 10,000; as a result conventional avenues like the Public ...

Index Funds: Too expensive

PersonalFN — Wed, 10 Aug 2005 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its July 18, 2005 issue with the title, "Too expensive?".

Index funds were launched with a lot of fanfare, like a lot of other products that are 'imported' from developed financial markets. They were considered as ...

Is your fund too concentrated?

pfnadmin — Tue, 05 Jul 2005 00:00:00 GMT

Theoretically speaking, investors in diversified equity funds should enjoy high diversification levels. Unlike a sector fund, wherein limited investment options are available; the fund manager handling a diversified equity fund has the liberty to invest in a variety of stocks across sectors. However the present investment scenario seems to suggest ...

Mutual Fund IPOs are dead

PersonalFN — Mon, 27 Jun 2005 00:00:00 GMT

The most oft-heard three-letter acronym in the mutual fund business and its biggest draw is all set to walk into the sunset. The market watchdog SEBI (Securities and Exchange Board of India) has objected in no uncertain terms to the practice adopted by mutual funds to term their new offering ...

A 5-point investment strategy for now!

pfnadmin — Tue, 21 Jun 2005 00:00:00 GMT

With equity markets touching record highs, optimism among investors seems unbounded. Markets appear like they can do no wrong and euphoria among the investor community is palpable. We present a 5-step investment strategy for the present scenario.

1. Invest in tax-saving funds

Tax-saving funds in their new (as a part ...

Time to invest in tax-saving funds!

PersonalFN — Wed, 08 Jun 2005 00:00:00 GMT

Its been quite a ride for mutual fund investors over the last few months. Equity markets looked poised to touch record highs, lost steam and subsequently came back strongly - all in a span of less than 3 months. On the other hand, options available to investors have burgeoned thanks ...

Mutual Funds: Gainers & Losers

pfnadmin — Tue, 03 May 2005 00:00:00 GMT

It has been a rather interesting run for the equity markets in calendar year 2005. The year began at a time when markets were in the midst of a bull run and investors excitement levels seemed unbounded. After touching record highs, the markets lost steam and how! The unbridled optimism ...

Franklin India Bluechip: Fading to red!

pfnadmin — Fri, 15 Apr 2005 00:00:00 GMT

Franklin India Bluechip Fund (FIBF) holds the distinction of being the largest diversified equity fund in the country and has been in existence for over 10 years now. The fund is positioned as a large cap offering and to its credit has held on to its mandate despite the run-up ...

Fund investors: Held hostage by banks?

PersonalFN — Tue, 12 Apr 2005 00:00:00 GMT

How often have you seen your bank use the strong arm to get something done in a particular manner that does not appear all that rational and even detrimental to some of the parties involved in the transaction? At Personalfn, we have investors citing instances of such a nature at ...

Do tax-saving funds really deliver?

pfnadmin — Sat, 09 Apr 2005 00:00:00 GMT

Consequent to the recent budget, tax-saving funds (also referred to as ELSS) are likely to emerge as favourites with a large number of investors. If you are an investor with a flair for market-linked investment avenues and utilised the Rs 10,000 investment limit under the erstwhile Section 88; the good ...

What goes up must come down!

PersonalFN — Mon, 28 Mar 2005 00:00:00 GMT

The stock markets, like they have done over the past couple of years, went for a downward slide as March-end approached. The BSE Sensex closed the week at 6,443 points, down by 257 points (3.83%). The S&P CNX Nifty ended the week down by 94 points (4.45%) to close at ...

Will the flexi cap bubble burst?

pfnadmin — Wed, 16 Mar 2005 00:00:00 GMT

At the outset we would like to state that, while the title of this article may seem like an intimidating prophecy, our intention is to simply caution investors. We are witnessing at present what can be termed as irrational exuberance in favour of flexi/multi cap fund IPOs. Simply put, these ...

The 10-year itch

PersonalFN — Mon, 14 Mar 2005 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its February 13, 2005 issue with the same title.

There aren't too many mutual fund schemes in the country that have come a long way, at least not 10 years long. That's understandable when you consider that ...

Million dollar gift for fund investors

pfnadmin — Mon, 28 Feb 2005 00:00:00 GMT

The Budget had some major positives for the mutual fund investor with gold-linked mutual fund schemes and tax-saving funds (ELSS) getting a fillip. Moreover, existing benefits like tax-free dividends and capital gains on equity-oriented schemes got a fresh lease.

There were no real negatives in the Budget for the mutual ...

Add some gusto to your tax-planning!

PersonalFN — Mon, 21 Feb 2005 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its January 31, 2005 issue with the title, Taxing times.

It's that time of the year when tax-planning is on investors minds. Investments in National Savings Certificates (NSC), Public Provident Fund (PPF) and infrastructure bonds offering rebates ...

Mutual Funds: What can go wrong?

PersonalFN — Fri, 18 Feb 2005 00:00:00 GMT

At this stage with equity markets poised within reach of 7,000 points, long-term capital gains on equity-oriented funds waived off and dividends tax-free, investors are wondering what can go wrong in this budget to spoil the mutual fund party?

Frankly, at this point it is difficult to imagine why the ...

Open letter to the SEBI Chairman

PersonalFN — Wed, 09 Feb 2005 00:00:00 GMT

The Chairman
Securities & Exchange Board of India (SEBI)
Mumbai

Sub: Central Database of Market Participants (MAPIN)

Dear Mr. Chairman:

We are a country with limited long term risk capital. This is borne out by the facts that even after 15 years of reform, we have just about 3 m ...

MF Roundup: January 2005

PersonalFN — Fri, 04 Feb 2005 00:00:00 GMT

Volatile! That word perhaps best sums up how the markets behaved in January 2005. During the month, the BSE Sensex shed 0.71% to close at 6,556 points; the S&P CNX Nifty was down by 1.11% and ended at 2,058 points. If December 2004 was a lucrative month for investors; January ...

How to evaluate fund manager?

PersonalFN — Wed, 02 Feb 2005 00:00:00 GMT

The stock market rally, which began its upward swing from mid-2004 and scaled a never-before-seen peak by December 2004, witnessed a steep rise in stock prices. Equity funds were not far behind. A lot of them did very well. Of course, while the general uptrend in stock prices was largely ...

Expenses & Loads: Killing you softly!

PersonalFN — Thu, 20 Jan 2005 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its January 3, 2005 issue with the title, Killing you softly.

For most investors, the only parameter on which their mutual fund investments are evaluated is returns. Infact investors are so pre-occupied with tracking returns that they ...

Debt Funds: Bad to Worse

PersonalFN — Sat, 01 Jan 2005 00:00:00 GMT

Mutual fund investors were a confused lot in 2004. While they saw equity funds grow from good to great, they watched haplessly while their debt funds slumped from bad to worse. Rising crude prices and inflation were the main culprits behind the depression in the debt market.

2003 marked the ...

Equity Funds: Good to Great

pfnadmin — Fri, 31 Dec 2004 00:00:00 GMT

If Year 2003 was Good. Year 2004 was Great. 2004 continued from where 2003 left. The year ended with the Sensex higher by 8.19%. Prima facie, a modest gain. But this gain disguises a significantly larger event that shook the stock markets - an unprecedented crash.

2004 was a year ...

MF IPOs: Are you in or out?

PersonalFN — Wed, 22 Dec 2004 00:00:00 GMT

With equity markets touching record highs, expectedly we are witnessing a deluge of mutual fund IPOs. The situation is fairly similar to the one experienced in 2003 (when monthly income plans were the season's flavour); however this time around fund houses are enticing investors with innovative offerings like multi-cap funds, ...

A shot in the arm for long-term investing

PersonalFN — Wed, 15 Dec 2004 00:00:00 GMT

Investing for the long term (3-5 Yrs) has been something of a problem for mutual fund investors. Even if investors buy the story that equities work best over the long-term, there aren't a whole of mutual funds that cater to them. In the recent past we have seen some mutual ...

India: Changing the mindset

PersonalFN — Tue, 14 Dec 2004 00:00:00 GMT

There is no option! To provide jobs to a population of 10 m educated youths every year 'necessarily' requires our GDP to grow by 8% per annum. There is no 'other' option! And the government seems to be outlining its policies in order to achieve its objective of growing the ...

Mid caps: Where art thoust?

PersonalFN — Fri, 10 Dec 2004 00:00:00 GMT

It was just a couple of months ago when mid caps stocks were a rage. Not wanting to miss the party, mutual fund investors made a scurry for mid cap funds. But as expected, the mid cap rally has fizzled out and large caps are back in the fray. Does ...

Magnum Global: Going places?

PersonalFN — Tue, 30 Nov 2004 00:00:00 GMT

The performance of Magnum Global Fund (MGF) over the past few months has been a revelation. At a time when markets have tested the performance of even established diversified equity funds, MGF (76.56% NAV appreciation over the 1-Yr period) has emerged leader and done so by a comfortable margin.

Top ...

Why are tax-saving funds expensive?

PersonalFN — Fri, 26 Nov 2004 00:00:00 GMT

Equity-linked Savings Schemes (ELSS) or tax-saving funds as they are commonly referred to, offer investors the unique opportunity to invest in a market-linked product and yet claim tax-benefits; unlike conventional tax-saving instruments which are generally of the assured returns variety. Also these investments are accompanied by a 3-Yr lock-in period ...

Liquid Funds: Still the preferred option

PersonalFN — Thu, 25 Nov 2004 00:00:00 GMT

Debt markets are in a tizzy and risk-averse investors are grappling with a limited set of investment options. Inflation and higher interest rates have knocked the wind out of bond prices and the 10-Yr GOI yield continues to hover in the 7.00%+ region.

Leading Liquid Funds

Liquid Funds

NAV (Rs)...

Formulating a debt fund strategy

PersonalFN — Tue, 23 Nov 2004 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its November 8, 2004 issue with the title, "Formulating a strategy".

Considering that over 60% of mutual fund assets are invested in debt funds, the distressing scenario in debt markets is a matter of concern for a ...

Tech Funds: Return of the prodigal

PersonalFN — Tue, 16 Nov 2004 00:00:00 GMT

Software stocks continue their tryst with the investor's fancy. Over the last 12 months, the BSE IT sector has appreciated by 44.6%. How much has the BSE Sensex appreciated over the same period?Only 31.5%! Little wonder then that technology funds continue to fire the investor's imagination.

To be sure, we ...

Index Funds: On a comeback trail?

PersonalFN — Wed, 10 Nov 2004 00:00:00 GMT

Not too long ago in August 2004, the markets were grappling with the 5,000 points mark; since then the equity markets have surged rapidly and the BSE Sensex is now precariously close to the 6,000 points mark. In such a scenario, it would be interesting to study the performance of ...

Does it pay to be opportunistic?

PersonalFN — Fri, 29 Oct 2004 00:00:00 GMT

Within the diversified equity funds segment, there exists a breed of funds whose most distinctive identity is that they lack one. These are funds which follow a fluid investment style and move with the markets. Generally referred to as opportunities funds, they invest in the season's flavour; e.g. in a ...

5 tips to deal with fund mergers

PersonalFN — Tue, 26 Oct 2004 00:00:00 GMT

With the mutual fund industry going through another round of mergers, investors are grappling with the inevitable question, Should I stay invested or opt out? The details of each merger are different, and there is noone size fits all approach. We present a few tips which will help investors decide ...

MIPs: Are the expenses justified?

PersonalFN — Fri, 15 Oct 2004 00:00:00 GMT

The expenses incurred by mutual funds under various heads including investment management, advisory fee and marketing expenses have an impact on the investors returns. This impact gets magnified in cases of investment avenues like monthly income plans (MIPs) where returns are on a relatively lower side. In this article, we ...

How well are they floating?

PersonalFN — Tue, 12 Oct 2004 00:00:00 GMT

The sorry state, in which debt fund investors find themselves, has been well documented over the past 12 months. Conventional debt funds, a category that was the investors favourite during the incessant rate cut regime, has completely fallen out of favour at present. Negative returns have virtually become the order ...

How to build a mutual fund portfolio

PersonalFN — Tue, 05 Oct 2004 00:00:00 GMT

There are no two opinions on the fact that mutual funds are increasingly gaining widespread acceptability among masses. Investors who have traditionally embraced fixed deposits, post-office schemes and even stocks have bought the idea of investing through a professional money manager. Now for some bad news. There are too many ...

Mutual fund investors clock modest gains

PersonalFN — Sat, 25 Sep 2004 00:00:00 GMT

The markets finally lost some steam after surging for 4 weeks in a row. The BSE Sensex posted a weekly loss of 0.59% to close at 5,528 points while the S&P CNX Nifty was down by 0.63% to close at 1,723 points.

Leading Diversified Equity Funds

Diversified Equity Funds

NAV ...

Sector funds: Are you risking too much?

PersonalFN — Wed, 22 Sep 2004 00:00:00 GMT

The tide has turned, and done so rather quickly. Equity markets which seemed to have lost favour with investors are back with a bang! We have witnessed the Sensex surge by nearly 600 points in a month. Times like these provide an interesting opportunity to study the performances of various ...

Is your mutual fund merging?

PersonalFN — Mon, 13 Sep 2004 00:00:00 GMT

This article was written by Personalfn for Business India, and was carried in its August 16, 2004 issue with the title, Cost of coming together.

Over the past couple of years, the mutual fund industry has had more than its share of mergers and consolidation. It began a couple of ...

Do fund objectives reveal enough?

PersonalFN — Thu, 09 Sep 2004 00:00:00 GMT

A cursory glance at the objectives of most mutual fund schemes is likely to leave investors truly confused. The schemes objective should be a coherent statement which tells investors what the scheme stands for. It should convey what the fund manager's area of operation will be i.e. what kind of ...

Mid Cap funds: Flavour of the season

PersonalFN — Tue, 07 Sep 2004 00:00:00 GMT

If you invested in mid cap funds a couple of months back, you have already made a neat packet. Those who did not are actively considering making an investment now. Your investment advisor/bank have probably been showing you a lot of numbers on why you should invest in these funds. ...

MIPs: What negative returns?

PersonalFN — Thu, 02 Sep 2004 00:00:00 GMT

Most monthly income plans (MIPs) have had a rough time over the past 6 months. Rough weather in equity markets (who can forget Bloody Monday on May 17) combined with volatility in bond markets from inflationary concerns took the wind out of MIP sails. However, one MIP that continues to ...

Have mutual fund IPOs delivered?

PersonalFN — Tue, 31 Aug 2004 00:00:00 GMT

Currently the mutual fund industry is seeing a steady stream of IPOs (initial public offerings). A lot of investors are confused and cannot decide whether or not they should be investing in the IPO. Many an investor, who had invested in IPOs over the last few months, is wondering whether ...

Fund investors have it both ways

PersonalFN — Sat, 28 Aug 2004 00:00:00 GMT

Equity fund investors had a rewarding week as stock markets looked up. The BSE Sensex surged by 1.03% to close at 5,117 points, while the S&P CNX Nifty gained 1.19% to close at 1,609 points. Long-term debt funds also witnessed some relief, as bond prices surged. This made it a ...

Morgan Stanley Fund: Go for it?

PersonalFN — Fri, 27 Aug 2004 00:00:00 GMT

A lot of investors find the discount (currently over 25%) on Morgan Stanley's NAV (net asset value) attractive enough to merit investment. Other investors, who bought Morgan Stanley way back in 1994 and have held on, are wondering what to do next? We have tried to outline a strategy.

(Values ...

Franklin Bluechip Vs Franklin Blue Chip

PersonalFN — Tue, 24 Aug 2004 00:00:00 GMT

Franklin India Bluechip Fund is among the leading diversified equity funds in the country today. It is among the premier equity funds launched in the private sector and over the last 10 years of its inception it has come to acquire a reputation rooted in a solid and consistent performance ...

PruICICI Dynamic Plan: Dynamism unfounded?

PersonalFN — Tue, 17 Aug 2004 00:00:00 GMT

While mutual fund rankings often pitch forth the best performers across categories, the laggards tend to be ignored. The last few months have been testing ones for the equity markets, and have taken their toll on funds from the diversified equity segment. At Personalfn we decided to identify schemes most ...

Mutual fund returns take a knock!

PersonalFN — Sat, 14 Aug 2004 00:00:00 GMT

Markets were in deja-vu mode with inflation returning to haunt them. Inflation figures touched the 7.61% mark and markets went on a southward journey. The BSE Sensex fell by 1.81% to close at 5,103 points while the S&P CNX Nifty posted a loss of 2.14% to close at 1,598 points. ...

Traces of optimism in the market

PersonalFN — Sat, 31 Jul 2004 00:00:00 GMT

It was another good week for equity markets, to follow up last week's impressive performance. The BSE Sensex posted a growth of 1.91% to close at 5,170 points, while the S&P CNX Nifty appreciated by 1.87% to end at 1,632 points. Good corporate results played their part in adding to ...

HDFC Capital Builder: Surprise package

PersonalFN — Fri, 30 Jul 2004 00:00:00 GMT

Equity fund investors have rarely had it so ironical. Last year at this time they were jubilant spectators to an astonishing surge in equity markets that saw them double their money in less than 12 months. A year later they have seen more than 25% of their gains shaved off. ...

A merger of convenience?

PersonalFN — Mon, 26 Jul 2004 00:00:00 GMT

Lately the mutual fund industry has been witness to a string of mergers between fund houses as well as consolidation of schemes within the same fund house. Is this a merger of convenience necessarily a good thing for the retail investor? How should investors react to this consolidation? These are ...

Impact of Budget on NRIs

PersonalFN — Tue, 20 Jul 2004 00:00:00 GMT

The Budget highlights for NRIs is contributed by nritaxservices.com.

1. INCOME TAX RATES

No change in existing Income Tax Rate and Surcharge otherwise stated below.
An Additional Surcharge @ 2% (on aggregate amount of Income tax and existing surcharge) is proposed as Education Cess.

2. INTEREST ON NRE, FCNR & ...

Mutual funds are still your best bet

PersonalFN — Tue, 20 Jul 2004 00:00:00 GMT

To many investors it would appear that the Union Budget 2004-05 has thrown a spanner in the works as far as mutual funds are concerned. The long-term capital gains waiver has been extended only to tradeable securities, a category in which mutual funds are yet to gain an entry. By ...

Fund of Funds = Cost of costs

PersonalFN — Tue, 13 Jul 2004 00:00:00 GMT

The domestic mutual fund industry continues to witness a buzz in the fund of fund (FoF) segment. Leading fund houses in the country have already launched their products and others have firmed up plans to follow suit.

From the investor's perspective the most important question on his mind is “ ...

Mutual Funds: The 6-month score card

PersonalFN — Mon, 05 Jul 2004 00:00:00 GMT

The bulls ruled year 2003. As a result equity funds, good and average, all turned in fantastic returns. But it takes a bad patch in the stock markets for the good funds to stand out. Year 2004 has provided a perfect opportunity to do just that!

During the period under ...

Will it pay to be pessimistic on the markets?

PersonalFN — Tue, 15 Jun 2004 00:00:00 GMT

Last year this time the stock markets were taxiing for take off. And take off they did. The BSE Sensex jumped from about 3,000 to 6,000 in a matter of months. Pessimism was replaced by irrational exuberance. Fund managers were making presentations that the Sensex would breach 7,000 by July ...

PersonalFN's 4th Investor Empowerment Programme

PersonalFN — Wed, 02 Jun 2004 00:00:00 GMT

Changing governments do not necessarily mark an end to reforms and equities are your best bet, but only over the long term. The message was clear at the 4th Investor Empowerment Programme (IEP) organised by Personalfn.

Mr. Mahesh Vyas (CEO and MD, CMIE) set the tone with his take on ...

Stock market crash: Expert opinion

PersonalFN — Sat, 15 May 2004 00:00:00 GMT

Personalfn approached three of India's leading experts on the stock markets to get their views on the crash and their expectations going forward. Our objective to help you block out the noise about the coming doom and to focus on fundamentals.

The experts we called in:

Rajat Jain, CIO, ...

Results are out. Now what?

PersonalFN — Thu, 13 May 2004 00:00:00 GMT

Okay, the results have surprised (or spooked?!) the markets. Investors have voted with their feet. Gloom and doom is almost palpable. Is this an opportunity to enter the market for the smart investor?

At the outset this is no prediction for the future course of the markets. This note is ...

Sector Funds: Return of the prodigal

PersonalFN — Mon, 03 May 2004 00:00:00 GMT

This article written by Personalfn was carried by Business India in the April 26, 2004 issue.

Make no mistake; sector funds are on a comeback trail. It appears as if all that it takes is a bull run to bring on an onslaught of sector funds launches. The last time ...

Go for equities?

PersonalFN — Thu, 25 Mar 2004 00:00:00 GMT

Between October and December 2003, the stock market posted a fantastic rise. In fact the 1,000 point rally on the BSE in December alone was unprecedented. Then, as in earlier bull rallies, investors were very optimistic. Even as the Sensex breached the 6,000 mark, there was a talk of Sensex ...

Debt Funds: Writing on the wall?

PersonalFN — Thu, 25 Mar 2004 00:00:00 GMT

Existing indicators do not bode well for debt funds over the short term. If one takes a look at the portfolios of leading long-term income funds, it would appear as if even the fund managers agree on that count. A look at leading long-term income fund portfolios (from latest factsheets) ...

Futility of timing the markets

PersonalFN — Fri, 19 Mar 2004 00:00:00 GMT

Most investors believe they can time the markets, they believe they can enter and exit the markets with a fair degree of accuracy and always know where the markets are headed. The key word here is believe. While instances of investments being made at low levels followed by a sharp ...

Are funds churning their way to losses?

PersonalFN — Mon, 15 Mar 2004 00:00:00 GMT

More churning means more expenses in terms of brokerages/commissions. More expenses means lower return. If the fund portfolio is being churned very aggressively, there is a fair chance that it is losing more money than it is making.

A lot of investors seem to believe active fund management implies hyperactive ...

Now we know where the stock markets are headed!

PersonalFN — Thu, 11 Mar 2004 00:00:00 GMT

In order to discuss the future of stock market in India, Personalfn conducted the third Investor Empowerment Programme on Where are the stock markets headed? on March 10, 2004.

The first speaker, Mr. Binay Chandgothia, Head - Fixed Income, Principal AMC (the event sponsor) shared his views on the topic, ...

Are you diversified enough?

PersonalFN — Fri, 05 Mar 2004 00:00:00 GMT

About a year ago we put up a note on Personalfn discussing the benefits of investing in line with a well defined asset allocation plan. Then, investors were loading up on debt funds, Relief Bonds and other such fixed income instruments. We made a case for equities and building a ...

Principal IPO: An opportunity to diversify

PersonalFN — Mon, 01 Mar 2004 00:00:00 GMT

Profile
Principal Global Opportunities Fund (PGOF) is the first global equity fund launched by any asset management company (AMC) in the country. The fund has identified stocks listed in international stock markets that will form a part of its portfolio (the overall universe is defined by the RBI). Principal Asset ...

Go Global in Stocks!

PersonalFN — Tue, 24 Feb 2004 00:00:00 GMT

The buzz is growing. Indians can now invest in global markets without much restriction. Asset Management Companies (AMC) and portfolio managers are rushing to launch schemes to tap into this potentially large market. Local arms of global asset managers are gearing up to make available schemes floated by their parents ...

Debt funds: Are you ready for the future?

PersonalFN — Mon, 16 Feb 2004 00:00:00 GMT

A lot has been said and written about debt funds in the recent times. If popular perception is to be believed debt funds are history! The last three months have been rather rough on debt markets and debt funds respectively. Declining returns have become a regular feature and there seems ...

Have you booked your profits yet?

PersonalFN — Thu, 08 Jan 2004 00:00:00 GMT

Equity markets have witnessed a meteoric rise in recent times. Investors have been adequately rewarded and exuberance levels are at all time highs. How long the bull run will continue is anyone's guess. In times like these investors should seriously consider booking a part of their profits.

Critics might argue ...

Debt Funds: Bad to Worse

PersonalFN — Thu, 01 Jan 2004 00:00:00 GMT

2003 marked the ...

Equity Funds: From whining to shining

PersonalFN — Fri, 26 Dec 2003 00:00:00 GMT

If Year 2002 was the year of the brave investor, Year 2003 was the year of the very prosperous investor. After a rather listless 2002 when nothing seemed to go right for equity markets, Year 2003 saw everything fall into place to effect one of the most stunning turnarounds in ...

Equity Funds: Where do we go now?

PersonalFN — Tue, 25 Nov 2003 00:00:00 GMT

The sharp run-up in equity markets brought a lot of cheer to the investing community. However, the recent volatility has given way to skepticism and circumspect, and talks of an overdue correction have made investors reassess their investment strategy.

At this stage, the question uppermost in the minds of the ...

Tackling TDS: The NRI way

PersonalFN — Tue, 25 Nov 2003 00:00:00 GMT

For Non Resident Indians (NRIs) who continue to dabble in stock markets back home, Tax Deduction at Source (TDS) on capital gains is a constant source of worry. Banks generally deduct tax at the maximum rate of 30% on short term capital gains. At times banks have been known to ...

Fund of funds: The New Funda

PersonalFN — Mon, 24 Nov 2003 00:00:00 GMT

Markets have been buzzing with activity ever since the launch of Fund of funds (FoF) was announced by some asset management companies. The fact that this launch coincides with a very exciting time in the equity markets only adds to the hype. Let's try to understand what a Fund of ...

Monetary Policy: Retail investor-s perspective

pfnadmin — Mon, 03 Nov 2003 00:00:00 GMT

How much cash do you need?

PersonalFN — Tue, 14 Oct 2003 00:00:00 GMT

Ask the question How much cash do you need? and the most likely answer you'll get isAs much as I can lay my hands on. On a more serious note, what we are looking at is the liquid funds deposited in savings bank accounts and stored in cupboards and bank ...

Pharma funds: Are you game?

PersonalFN — Fri, 03 Oct 2003 00:00:00 GMT

Mutual funds operate on the premise that by investing in several stocks belonging to various sectors the fund manager is in a position to offer better risk adjusted returns using diversification. The very fact that the fund manager can move across sectors gives him the freedom and the flexibility to ...

How to invest your RIB maturity proceeds?

PersonalFN — Wed, 24 Sep 2003 00:00:00 GMT

A lot of NRIs (non resident Indians) have been scanning through newspapers and investment reports or, if they have access one, contacting financial planners for advice on investing in India. The reason for this surge in interest is that about US$ 5.5 bn (Rs 25,000 crores) is said to flow ...

Risk-return trade-off works in the long term

PersonalFN — Thu, 11 Sep 2003 00:00:00 GMT

One of the most elementary hypotheses in the investing world is the risk-return trade-off. The trade-off works on the premise that any investor who bears a higher risk is rewarded with better returns i.e. he is compensated for bearing that additional degree of risk.

Most investors take into consideration this ...

Track your fund manager-s portfolio

pfnadmin — Wed, 03 Sep 2003 00:00:00 GMT

Are you married to your fund manager?

PersonalFN — Tue, 02 Sep 2003 00:00:00 GMT

Over the past 12 months or so, the domestic mutual fund industry has seen some consolidation. While this in itself is good for the industry, the spate of acquisitions has left the retail investor wondering whether a change of guard in fund management will make his mutual fund investment better ...

RBI surprises. Now gear up for the future.

PersonalFN — Mon, 25 Aug 2003 00:00:00 GMT

The Reserve Bank of India (RBI) surprised the market by cutting the repo rate (the rate at which RBI borrows money) by 50 basis points (0.5%) yesterday. This move will surely bring cheer to investors who have exposure to debt mutual funds.

A surprise cut in interest rates benefits debt ...

Mutual funds: Weekly roundup

PersonalFN — Mon, 25 Aug 2003 00:00:00 GMT

As equity fund investors rejoiced, income fund investors were in for a rude shock as returns entered the negative zone.

The highlight of the week was the BSE Sensex breaching the 4,000 mark at the bourses. The Sensex closed at 4,131 points recording a growth of 5.4%, while the S&P ...

Risk-return tradeoff gets thumbs down

PersonalFN — Wed, 20 Aug 2003 00:00:00 GMT

Surprisingly, a large section of the investing community (54%) consider themselves proficient enough to gauge a good mutual fund investment on the strength of its portfolio. That was the most significant finding of the latest poll conducted on our website.

Over half the visitors 54%, polled in the survey opined ...

Mutual funds: Weekly roundup

PersonalFN — Mon, 18 Aug 2003 00:00:00 GMT

It was yet another rewarding week for equity fund investors as they continue to see their investments grow. Over the week, the BSE Sensex rose marginally by 1.0% to end at 3,921 points, while the S&P CNX Nifty closed at 1,248 points up by 2.0%. Steel stocks (SAIL, Tata Steel, ...

Mutual Funds: Weekly roundup

PersonalFN — Mon, 11 Aug 2003 00:00:00 GMT

This was a rewarding week for equity fund investors. The markets were on a roller coaster ride this week; up on the first day, falling sharply in the next two and making a smart recovery in the final two days. The BSE Sensex rose by 1.9% to end at 3,884 ...

Is this the time to invest in equities?

PersonalFN — Tue, 05 Aug 2003 00:00:00 GMT

Most investors would answer this question with a resounding YES! And why not. Things have not looked so good for the stock markets in years. The monsoons have been good and results from corporates too seem to indicate that the overall environment is favourable for higher economic growth. Disinvestment of ...

Equities: The time has come

PersonalFN — Thu, 31 Jul 2003 00:00:00 GMT

How many times have we heard this before? Most fund managers and investment advisors have been saying this for some time now. However, the reason you need to accept equities as an integral part of your investment scheme of things is because you really don't have a choice. As income ...

Investor Empowerment Through Education

PersonalFN — Wed, 09 Jul 2003 00:00:00 GMT

That was the motto of the Investor Empowerment Programme organised by Personalfn and the Ghatkopar Investors' Welfare Association (GIWA) on July 7, 2003. The meet, the first one of a series, was organised to promote investor awareness and kindle an environment of education through discussion.

The investor meet did not ...

The dilemma facing smart investors

PersonalFN — Tue, 08 Jul 2003 00:00:00 GMT

Where to invest? That's the question that continues to be on top of the mind for smart investors in these uncertain times. Why uncertain times when everything looks to be all so investor friendly rising equity markets, stable debt markets? That's because those who timed the market well are now ...

Impact of tax on income from mutual funds

PersonalFN — Thu, 03 Jul 2003 00:00:00 GMT

Income earned from mutual funds falls under two heads dividend and capital gain. Given that the tax implications can have a significant impact on the return earned it is necessary to understand the tax implications for both these heads of income.

Let's take income earned under the head of dividends ...

Don-t let the bull run take you for a ride

pfnadmin — Thu, 19 Jun 2003 00:00:00 GMT

US64 Bonds: Robust start!

PersonalFN — Tue, 17 Jun 2003 00:00:00 GMT

As expected, trading in US64 Bonds kicked off on a positive note. The price of the bond surged to Rs 109 before settling down to Rs 106.

With the 6.75% US64 Bond price surging, the current yield has taken a hit, declining to Rs 6.37%. The yield to maturity is ...

Gilt Funds: Read the fine print

PersonalFN — Thu, 05 Jun 2003 00:00:00 GMT

Take a look at gilt fund returns over the past 12 months. No one can blame you if that's got you excited. Now you look at gilt fund returns over the past 6 months. No one can blame you if you are surprised. That's been the story with gilt funds ...

MIPs: A good fit in your portfolio

PersonalFN — Wed, 21 May 2003 00:00:00 GMT

With the kind of attention, monthly income plans (MIPs) have drawn over the past couple of years, this product looks set to establish itself as a must-have in investor portfolios.

First the facts
What are MIPs? MIPs are designed with the explicit objective of giving a regular return (in ...

Hindustan Lever turns fund favourite

PersonalFN — Mon, 19 May 2003 00:00:00 GMT

Hindustan Lever long ignored by diversified equity funds is finding its way back in fund portfolios. The fast moving consumer goods (FMCG) giant seems to have won over the confidence of fund managers given its growth potential.

A query run on personalfn's interactive mutual fund tools indicates that HLL which ...

Interest Rates and You

PersonalFN — Sat, 03 May 2003 00:00:00 GMT

Investors and loan seekers have been witnessing a dramatic change in the Indian interest rate environment over the last few years. Home buyers today can get a loan at about 9% pa as against probably 15% pa four years back. Investors now expect to earn average returns of 8% pa ...

Is your fund worth the risk?

PersonalFN — Wed, 30 Apr 2003 00:00:00 GMT

As many investors will testify, investing in mutual funds can be a risky affair. This is because unlike a bank fixed deposit (FD) or a bond, where you are assured the principal amount as well as the interest, in a mutual fund you are assured neither. Therefore, it's important that ...

Don-t let the war upset your plans

pfnadmin — Tue, 25 Mar 2003 00:00:00 GMT

HDFC MF eyes Zurich India MF

PersonalFN — Mon, 17 Mar 2003 00:00:00 GMT

News reports indicate that the spate of consolidation in the mutual fund industry continues as HDFC Mutual Fund, a leading fund house, is looking to acquire Zurich India Mutual Fund, another leading fund house.

Although the press releases have been terse, some noteworthy points have been highlighted. One very significant ...

US64: Finally something interestingâ€¦

pfnadmin — Mon, 10 Mar 2003 00:00:00 GMT

Equity Funds: All the triggers are thereâ€¦

pfnadmin — Fri, 28 Feb 2003 00:00:00 GMT

Debt Funds: Will dividends do the trick?

PersonalFN — Fri, 28 Feb 2003 00:00:00 GMT

The Finance Minister has accepted the Kelkar Committee's recommendations of exempting tax on dividends of debt funds in the hands of investors. The bad news is there is nothing else in the budget for debt fund investors.

Until now, dividends on debt funds were taxed in the hands of investors ...

Taxpayer-s rejoice!

pfnadmin — Fri, 28 Feb 2003 00:00:00 GMT

Right time to invest in Equity Funds?

PersonalFN — Mon, 24 Feb 2003 00:00:00 GMT

Questions in the minds of most investors today are related to their investments in debt funds. Is the correction in the debt markets over? Should one continue to remain invested in debt funds? And the like. One other important question investors should be asking themselves is Should one book profits ...

Debt Funds: Lessons to be learnt

PersonalFN — Mon, 17 Feb 2003 00:00:00 GMT

In our story last week, we had highlighted how debt fund net asset values (NAVs) were under pressure from rising bond yields. The major correction in bond prices had left investors with a big hole in their debt fund investments. The situation shows no signs of improving as bond prices ...

Higher the return better the fund?

pfnadmin — Thu, 06 Feb 2003 00:00:00 GMT

Debt Funds: Feeling the heat

PersonalFN — Fri, 31 Jan 2003 00:00:00 GMT

Bonds/government securities, which had been witnessing a sharp rise until last week, are now witnessing a fall in prices. This would have come as an unpleasant surprise to investors who had perceived that the bull run in bond prices was always going to go on.

As an investor do any ...

US-64: What to do with your units?

PersonalFN — Tue, 28 Jan 2003 00:00:00 GMT

According to a press release posted on UTI (Unit Trust of India), US-64 will become a tax-free tradable bond maturing on May 31, 2008.

Below we have mentioned the body of the press release verbatim from UTI's website: It has been decided that the units of Unit Scheme 64 issued ...

Where to invest in a volatile environment?

PersonalFN — Mon, 13 Jan 2003 00:00:00 GMT

The investing environment today is very volatile. The general view is that the debt markets are at a crest and the equity markets in a trough. Therefore investors should ideally unwind their debt holdings and increase their exposure to the equity markets.

Seems simple, doesn't it? Things get a little ...

Inflation: Will it dent your investments?

PersonalFN — Mon, 30 Dec 2002 00:00:00 GMT

Okay, so what has inflation got to do with investments? From an investments perspective inflation is particularly important for those who are invested in debt instruments (incl. debt funds). There are several reasons for the same.

We all know that the value of money erodes with time. This phenomenon is ...

Tech sizzle: Is there an opportunity?

PersonalFN — Wed, 18 Dec 2002 00:00:00 GMT

Every time technology stocks witness a surge, investors get all excited expecting another bull run that will help them make some money on their tech stocks/IT funds that were bought in 1999.

Over the last 2-3 years ever since we have seen the tech boom in 1999, investor expectations have ...

Templeton Growth Fund-s stock picks

pfnadmin — Tue, 26 Nov 2002 00:00:00 GMT

Shakeup in the MF industry

PersonalFN — Wed, 30 Oct 2002 00:00:00 GMT

Mutual fund investors who have been tracking newspaper reports are a confused lot. Quite a few asset management companies (AMCs) as well as individual schemes have seen a change of guard at the helm. What does this mean to investors?

As if bad news in equity markets isn't enough, mutual ...

Gilt/income funds perk up on rate cuts

PersonalFN — Wed, 30 Oct 2002 00:00:00 GMT

Debt markets welcomed the triple rate cut announced by the Reserve Bank of India. The announcement pushed bond yields lower. The direct result was a surge in income and gilt fund net asset values (NAVs).

The RBI's move to lower rates on three fronts by 25 basis points each cash ...

What steps to consider before investing?

PersonalFN — Thu, 24 Oct 2002 00:00:00 GMT

A lot of mutual fund investors only have bitter comments about how their investments have performed over the last few years. While the performance of the mutual fund investment is certainly to blame, the problem to a large extent lies in the fact that these investments were not made with ...

IT Funds: Don-t get carried away

pfnadmin — Tue, 08 Oct 2002 00:00:00 GMT

UTI Bailout: What must you do now?

PersonalFN — Thu, 12 Sep 2002 00:00:00 GMT

The government has announced a bailout package for UTI's investors in US64 as well as the monthly income plans (MIPs). If you are an investor in either of these schemes, what must be your next step?

First a review of what the government has announced. The government's package to introduce ...

Midcap Funds: Is the trend your friend?

PersonalFN — Mon, 09 Sep 2002 00:00:00 GMT

Not necessarily! Ask those thousands of investors who lost their money in the tech fund trend in 1999 and the Morgan Stanley trend before that.

Actually, the trend (or the herd mentality) is something that has plagued the investment community for a long time now. Its not just the mutual ...

What dominates fund portfolios?

PersonalFN — Tue, 30 Jul 2002 00:00:00 GMT

What are the leading equity funds in the country buying today? What are their favourite sectors? We have collated data from factsheets of four leading equity funds to answer these questions.

Going by latest fund factsheets (as on June 30, 2002), what comes out quite strikingly is the concentrated portfolio ...

Mutual Funds: Say No to incentives!

PersonalFN — Tue, 23 Jul 2002 00:00:00 GMT

That's the latest statutory warning for mutual fund distributors. Going by the Securities and Exchange Board of India (SEBI) guidelines released on June 26, 2002, mutual fund distributors can no longer pass on incentives to investors to do business with them. What impact will this have on mutual fund investors? ...

PruICICI Growth: Betting on pharma IT

pfnadmin — Tue, 16 Jul 2002 00:00:00 GMT

AMC Review: IDBI-PRINCIPAL

PersonalFN — Tue, 09 Jul 2002 00:00:00 GMT

Know your fund house (or the Asset Management Company) before you invest in its scheme. If you have a certain comfort factor with the fund house's performance as a whole, chances are you will be reasonably satisfied with the performance of the scheme that you have selected.

Tracking the net ...

US64: How does it measure up?

PersonalFN — Tue, 25 Jun 2002 00:00:00 GMT

Its not just the FIFA World Cup that has thrown up surprises for some and disappointments for many. US64 investors will not be receiving dividend this year for the first time. That's another disappointment in a history of disappointments with US64. The question is should they still remain invested in ...

Gilt Funds: Serial Plans worth a look

PersonalFN — Thu, 20 Jun 2002 00:00:00 GMT

Gilt Funds don't necessarily invest in government securities (Gsecs) of varying maturities. Some gilt plans invest in a government security of a maturity thereby locking the yield at a rate. These plans are more popularly known as serial plans.

Earlier we outlined the merits of short term and long term ...

Gilt Funds: Long and short of it

PersonalFN — Mon, 17 Jun 2002 00:00:00 GMT

At times opportunity comes disguised in adversity. And mutual funds have learnt fast to turn these adversities into opportunities. From offering plain vanilla gilt offerings earlier, fund houses have now extended this product to offer a more diversified range of options to investors. And how did this happen? Believe it ...

What is HDFC Growth Fund buying?

PersonalFN — Thu, 06 Jun 2002 00:00:00 GMT

HDFC Growth Fund may have been a relatively late entrant in the market. But the fund house's conservative fund management style and group integrity has seen the fund generate goodwill amongst investors. We have done a little study to determine the fund's favourite picks.

As on May 31, 2002, HDFC ...

Fund investors caught off-balance again

PersonalFN — Mon, 03 Jun 2002 00:00:00 GMT

The domestic mutual fund investing community seems to like it plain and simple. You either find investors who opt for a plain vanilla income (debt) fund or a plain vanilla growth (equity) fund. With their persistent disregard for balanced funds, investors have once again been caught off-balance in more ways ...

Weak markets present an opportunity

PersonalFN — Thu, 30 May 2002 00:00:00 GMT

The last couple of weeks have seen equity markets nosedive due to the prevailing Indo-Pak tension. Mutual funds, particularly, equity funds have witnessed the impact of this decline as net asset values (NAVs) slumped sharply. However, equity fund investors have an opportunity at these levels that needs to be exploited. ...

Fund portfolios: Pharma dominates

PersonalFN — Fri, 17 May 2002 00:00:00 GMT

Increasingly we are seeing pharma occupy a large chunk of fund portfolios. While pharma was always visible in portfolios even earlier, we are now seeing more funds latching on to it and in some cases even more than software. We did a small study to find out how pharma stacks ...

Birla Advantage Fund-s hot picks

pfnadmin — Mon, 29 Apr 2002 00:00:00 GMT

Equity Funds: Beating the index and expectations

PersonalFN — Mon, 22 Apr 2002 00:00:00 GMT

Over the last 6 months, equity funds have been on a roll so to speak. Some leading equity funds have outperformed the leading indices (Sensex, Nifty) by a reasonably good margin. More importantly, they have exceeded the expectations of investors, which is in many ways is more difficult than outperforming ...

Mutual Funds ooze confidence about prospects

PersonalFN — Mon, 15 Apr 2002 00:00:00 GMT

A lot of investors seem disillusioned with mutual funds post-budget. The move to tax dividends is seen as a big blow and investors are asking if mutual funds are still as attractive as they were with the tax sops. While investors may have their reservations, fund managers continue to believe ...

Mutual Funds- A primer

PersonalFN — Thu, 21 Mar 2002 00:00:00 GMT

For many investors mutual funds mean stock market investing, risk and loss of money. They are unaware of the various options available to mutual fund managers for investing. A planned allocation of funds can give you exposure to more than just stocks, which by nature are volatile.

There are 3 ...

Equity funds: Undeterred by the 9/11 effect

PersonalFN — Mon, 11 Mar 2002 00:00:00 GMT

Its 6 months since the horrific attacks on the World Trade Center on September 11. Post 9/11, global markets tanked and equities were the last thing on any investor's mind. The scenario was no different in India, as listless markets fell even further. However, within 6 months we have witnessed ...

What are Pioneer ITI-s bluechips?

pfnadmin — Wed, 20 Feb 2002 00:00:00 GMT

Mutual funds make dash for auto stocks

PersonalFN — Thu, 07 Feb 2002 00:00:00 GMT

If you want to know which sector is most likely to witness a recovery over the next few months, keep a close watch on fund portfolios and their sectoral allocations. Fund managers have their ears close to the ground and can see a recovery happening from a distance. If sectoral ...

Retail Investors: Here comes the budget

PersonalFN — Tue, 05 Feb 2002 00:00:00 GMT

What does the Union Budget 2003 have in store for retails investors? This is a question upper most in the minds of millions of investors.

We have put down some of the key provisions of the last budget pertaining to various investment products like fixed deposits, small savings schemes, mutual ...

Tax saving funds: Read our FAQs

PersonalFN — Mon, 04 Feb 2002 00:00:00 GMT

Financial Year 2002 is in its last quarter. Its time for investors to take some time out from their schedules and start planning for taxes. The Equity Linked Saving Scheme (ELSS) is one tax-saving investment avenue that investors may want to look at now.

Investors first need to understand a ...

What are Templeton India-s best picks?

pfnadmin — Wed, 23 Jan 2002 00:00:00 GMT

Floating Rate: Hedge against volatility

PersonalFN — Mon, 21 Jan 2002 00:00:00 GMT

With the volatility in government securities/bond prices over the last few weeks, investors have started realising the risk of investing in an income/gilt fund.

Investors had a misconception about the working of income and gilt funds. Many investors perceived these funds as "very safe" investments providing steady returns. ...

UTI: Can of worms

PersonalFN — Thu, 17 Jan 2002 00:00:00 GMT

Over the past few weeks, the joint parliamentary committee (JPC) has been reporting on violations perpetrated by the Unit Trust of India (UTI). Every day the business dailies report a new irregularity or violation of regulations, each more stunning than the previous one.

With the string of revelations being unfolded ...

What is Zurich India MF buying?

PersonalFN — Thu, 10 Jan 2002 00:00:00 GMT

Zurich India Mutual Fund is among the leading equity fund managers in the country today. Investors in their flagship equity fund Zurich India Equity Fund would be interested in knowing what stocks the fund is buying/selling. The Portfolio Analyser helps you do just that.

We have picked Zurich India Equity ...

US-64: Tale of woe continues

PersonalFN — Tue, 01 Jan 2002 00:00:00 GMT

US-64 finally announced its NAV for the first time on December 28, 2000 and at Rs 5.94 NAV, it cut a sorry figure with investors. For investors who have been with US-64 all this time, this is another disappointment in US-64's long history of disappointments.

Over the last few weeks, ...

Liquid funds: The right option!

PersonalFN — Thu, 27 Dec 2001 00:00:00 GMT

Investors who have money for short-term say 15-30 days generally invest in short-term fixed deposits with the banks. Banks give a fixed rate in the range 5%-5.5% p.a. for a term of 15-30 days. But how do these returns compare with those offered by liquid funds, a comparable investment products? ...

What is Birla Advantage Fund buying this month?

PersonalFN — Thu, 20 Dec 2001 00:00:00 GMT

Equity markets are witnessing acute volatility right now. As if terrorist attacks in the US weren't enough, we also had terrorists taking shots at the Parliament House of all places. This has added to the uncertainty. So how does this affect the fund strategy of your fund manager. Use the ...

What is your fund manager upto?

PersonalFN — Tue, 18 Dec 2001 00:00:00 GMT

As equity markets turn more and more volatile, this is a question that is gaining increasing relevance in today's complex financial world. With the Portfolio Analyser, a tool for the intelligent investor, we have provided investors the means to answer this question.

Equity markets are rebounding, post-US attacks. This time ...

Gilt funds: The dark side

PersonalFN — Thu, 13 Dec 2001 00:00:00 GMT

We have seen the good side of the gilt rally when gilt prices were incredibly robust. Some gilt funds had posted (year-on-year) growth in excess of 30%. However, this week we saw a reversal in fortunes, literally.

There was a correction waiting to happen in the gilt rally. We sounded ...

Tech funds: Don-t make the same mistakes

pfnadmin — Tue, 11 Dec 2001 00:00:00 GMT

Bond rally: Too good to last?

PersonalFN — Fri, 30 Nov 2001 00:00:00 GMT

The cheap money policy being pursued by the Reserve Bank of India (RBI) has seen bonds/gilt (government securities) yields falling dramatically (i.e. bond prices are moving upwards).

Over the last few weeks, government securities (gsecs/gilts) have been witnessing a very robust rally. Maybe a little too robust, for RBI's comfort. ...

Equity surge cheers fund investors

PersonalFN — Tue, 20 Nov 2001 00:00:00 GMT

With equity markets firming up, growth (equity) funds are witnessing a surge, one of the strongest in a long time. Investors who had entered equity funds when the chips were down (there weren't too many though) are reaping the richest rewards.

Post September 11, when domestic equity markets witnessed one ...

Track your fund manager

PersonalFN — Thu, 15 Nov 2001 00:00:00 GMT

Or better still be, your own fund manager. We have made both these options possible with our interactive query Portfolio Analyser.

A lot of equity fund investors don't rally have an idea about their fund manager's strategy. They don't know which stock he has been entering/exiting month on month. The ...

Index funds: Should you be investing in them?

PersonalFN — Wed, 07 Nov 2001 00:00:00 GMT

As equity markets witness a surge, the index is finally showing encouraging signs of growth. Investors who had invested in index funds post-September will have seen an equal rise. The question is, should investors be taking fresh exposure to index funds.

There are several advantages of staying invested with index ...

Rate cut: Impact on bonds and funds

PersonalFN — Tue, 30 Oct 2001 00:00:00 GMT

The Reserve Bank of India (RBI) has announced a reduction in bank rate by 50 basis points to 6.5% and 200 basis points cut in CRR to 5.5%. Lets assess the impact of these rate cuts on investments in deposits and mutual funds.

Impact on Fixed income instruments

Fixed deposits:...

Rate cuts: Short term impact on bond funds

PersonalFN — Mon, 22 Oct 2001 00:00:00 GMT

The RBI has announced a reduction in bank rate by 50 basis points to 6.5% and 200 basis points cut in CRR to 5.5%. This is expected to push bond yields lower, as bond prices perk up.

The rate cuts will benefit existing investors in income funds. With the rise ...

FMPs: Low risk high return?

pfnadmin — Wed, 17 Oct 2001 00:00:00 GMT

Tech funds: In dire straits

PersonalFN — Wed, 10 Oct 2001 00:00:00 GMT

To put it more aptly, its the technology sector that is in dire straits. This has a direct impact on the fortunes of tech funds as is more than evident from their net asset values.

Before we deliberate on the performance of tech funds, we must first understand the risk ...

Mutual Fund Rankings

PersonalFN — Thu, 04 Oct 2001 00:00:00 GMT

With the turmoil in domestic capital markets, now is a good time to assess mutual fund performance. We have ranked mutual funds across several categories (growth, income, balanced) over the last 12 months.

DIVERSIFIED GROWTH FUNDS	NAV (Rs)	1-MTH	6-MTH	1-YR	INCEP.
GIC D'MAT	7.0	-6.4%	-7.8%	-9.6%	-21.2%
UGS 10000...

UTI MIP: Rest In Peace

PersonalFN — Fri, 28 Sep 2001 00:00:00 GMT

That stands for Unit Trust of India Monthly Income Plan Rest in Peace.

Newspaper reports indicate that UTI has drawn the curtain on its once-popular assured return Monthly Income Plan (MIP). With this another assured return scheme bites the dust.

Earlier we had sounded out visitors on the pitfalls of ...

Income fund slump: This too shall pass

PersonalFN — Mon, 17 Sep 2001 00:00:00 GMT

In the aftermath of the terrorist attacks in the US, domestic bond prices have slumped a little too dramatically for investor comfort. Income fund investors are now asking questions like how can income fund net asset values (NAVs) fall? Aren't income funds meant to be a safe investment proposition?

To ...

USA attacks need not terrorise fund investors

PersonalFN — Thu, 13 Sep 2001 00:00:00 GMT

Terrorist attacks in the United States should not cause any panic to domestic mutual fund investors. This is what some of the leading Indian fund houses believe.

Fund managers reaction to the terrorist attacks indicates that if there is an impact, it will be short term and reactionary and the ...

Income funds: Proceed with caution

PersonalFN — Tue, 11 Sep 2001 00:00:00 GMT

Most income fund investors could not be happier with their investments. However, going forward, investors need to be a little cautious.

Nothing lasts forever, and there is no reason to believe that the current bull run in income funds (debt and gilt) is going to change that. The last few ...

Pharma fund prospects look up

PersonalFN — Wed, 05 Sep 2001 00:00:00 GMT

After the software boom biotechnology is touted to be the next sunrise segment that will lead growth over the next few years.

Before we say pharma funds look good now, investors need to understand a couple of points. The first is Indian pharma companies aren't really doing anything in biotechnology ...

FDs or mutual funds? A reality check

PersonalFN — Mon, 03 Sep 2001 00:00:00 GMT

Fixed deposits or mutual funds? That depends on whether you are looking at performance, safety or just returns. We undertook an exercise to make this task simpler for our investors.

Let us first look at various fixed deposits from manufacturing companies and non-banking finance companies (NBFCs) where an investor can ...

If you can-t beat the index invest in it

pfnadmin — Wed, 29 Aug 2001 00:00:00 GMT

Mutual funds â€“ Its all about asset allocation

pfnadmin — Fri, 24 Aug 2001 00:00:00 GMT

S&P downgrade could hit income funds

PersonalFN — Wed, 08 Aug 2001 00:00:00 GMT

Standard & Poor, (S&P) has downgraded India's rating to BBB (negative) from BBB (stable). This could have an adverse impact on income funds in the short term.

According to reports appearing in leading business dailies, S&P cited the financial scams as one of the factors that influenced the downgrading apart ...

US-64 â€“ To redeem or not to redeemâ€¦

pfnadmin — Fri, 03 Aug 2001 00:00:00 GMT

Private funds look up

PersonalFN — Wed, 25 Jul 2001 00:00:00 GMT

Even in this moment of crisis, private funds have reason to be relieved. The monthly data disclosed by AMFI (Association of Mutual funds in India) for June 2001 shows a rise in the net assets under management of private funds.

The assets under management of private funds rose to Rs ...

UTI â€“ Frequently Unanswered Questions

pfnadmin — Mon, 23 Jul 2001 00:00:00 GMT

UTI â€“ For those who missed the Titanic

pfnadmin — Fri, 20 Jul 2001 00:00:00 GMT

US-64 bailout â€“ A letdown for investors

pfnadmin — Mon, 16 Jul 2001 00:00:00 GMT

US-64: Another bailoutâ€¦

pfnadmin — Tue, 10 Jul 2001 00:00:00 GMT

UTI: Relief for small investors?

PersonalFN — Fri, 06 Jul 2001 00:00:00 GMT

The UTI has confirmed that it has got a Rs 15 bn line of credit from State Bank of India. In a press meet today the UTI has stated that they are actively considering a plan to give the small investors an exit route. The board is expected to meet ...

UTI â€“ Not today maybe tomorrow

pfnadmin — Thu, 05 Jul 2001 00:00:00 GMT

June witnesses offloading by the fund managers

PersonalFN — Thu, 28 Jun 2001 00:00:00 GMT

Fund managers did some big time selling in the month of June as the BSE Sensex continued its south-bound journey for most of the month.

There were only 5 days when fund managers made net purchases in June, and sold on the remaining days.

The chart shows the buying and ...

Private mutual funds steal the thunder

PersonalFN — Thu, 21 Jun 2001 00:00:00 GMT

With the slump in equity markets persisting, net assets under management of the mutual fund industry has improved only marginally. As per the latest data (31st May 2001) of the Association of Mutual Funds in India (AMFI), total assets under management rose by a mere 7% to Rs 968 bn ...

Mutual Fund Rankings June 2001

PersonalFN — Mon, 18 Jun 2001 00:00:00 GMT

Our rankings for the month of June 2001 have thrown up results similar to May 2001 rankings. Growth funds continue to be in the doldrums, with income funds showing the resilience and reliability which they have been associated with over the years.

Growth funds reflect the mood prevalent in equity ...

Alliance 1995 â€“ Feeling the heat

pfnadmin — Sat, 09 Jun 2001 00:00:00 GMT

Tax-saving funds â€“ Now is the time

pfnadmin — Thu, 07 Jun 2001 00:00:00 GMT

Zurich Liquidity Fund â€“ In the hot seat

pfnadmin — Fri, 01 Jun 2001 00:00:00 GMT

Equity funds â€“ Long on expectationsâ€¦

pfnadmin — Wed, 30 May 2001 00:00:00 GMT

Fund managers on selling spree

PersonalFN — Mon, 23 Apr 2001 00:00:00 GMT

The last few weeks have seen fund managers selling stocks big-time. The selling is in line with the bearish mood in the markets at present.

Most if not all funds have reduced exposure to technology, media and telecom (TMT) significantly. On the other hand, they have enhanced old economy holdings. ...

Income funds â€“ Only viable option

pfnadmin — Fri, 20 Apr 2001 00:00:00 GMT

Private funds feel the heat

PersonalFN — Thu, 19 Apr 2001 00:00:00 GMT

The payment crisis on the bourses and the steep decline in prices the K-10 stocks (which incidentally many mutual funds had bought) burnt a big hole in the net assets of mutual funds. The monthly data of mutual fund released by the Association of Mutual Fund in India (AMFI) reveals ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 14 Apr 2001 00:00:00 GMT

Index funds go out of favour

PersonalFN — Mon, 09 Apr 2001 00:00:00 GMT

The decline in equity markets has made the index fund investor anxious. They have realised that passively managed funds offer little relief (vis-à-vis actively managed funds) on a downturn.

Index funds advocate the philosophy of passive investing. This implies that the fund does not attempt to outperform the benchmark index, ...

Sectoral Funds - Weekly roundup

PersonalFN — Sat, 07 Apr 2001 00:00:00 GMT

This week saw very low volumes on the bourses. However, the Sensex gained marginally by 0.4% to close at 3,576 points whereas the S&P CNX Nifty was down by 0.2% to close at 1,135 points.

Open-ended, IT Schemes

NAV
(Rs)

Last
week

Last
month

Last
year

Inception...

March witnesses offloading by fund managers

PersonalFN — Wed, 04 Apr 2001 00:00:00 GMT

Depressed state of equity markets combined with redemption pressure has forced funds to offload in a falling market.

As is evident from the chart, March has seen more selling than buying by funds. Funds were forced to sell despite falling stock prices to meet redemption requests. And share volumes fell ...

MIPs - Going nowhere

PersonalFN — Mon, 02 Apr 2001 00:00:00 GMT

Monthly Income Plans (MIPs) have witnessed little movement (up or down) over the last month.

MIPs were launched with much fanfare a few months ago. MIPs are designed with the explicit objective of giving a regular return (in the form of an income) to investors. The periodicity of returns depends ...

Sectoral funds weekly roundup

PersonalFN — Sat, 31 Mar 2001 00:00:00 GMT

The last two days of the week took the sheen off the bourses, which they had gained during the first three days. The Sensex declined by 0.9% to close at 3,604 points whereas the S&P CNX Nifty fell by 1.04% to close at 1,149 points.

Open-ended, IT Schemes

NAV
(Rs)...

Balanced funds the only option

PersonalFN — Thu, 29 Mar 2001 00:00:00 GMT

In the midst of a crisis on the stock markets wherein most funds are striving to generate returns, balanced funds have surprisingly performed better than their peers.

The above graph is evident of the slump on the Sensex over the past 1 month. Balanced funds, having about 60% - 70% ...

Sectoral funds weekly roundup

PersonalFN — Mon, 26 Mar 2001 00:00:00 GMT

The Income Tax (IT) raid at the offices of stockbrokers and the payment crisis contributed to the confusion on the bourses. Last week, the Sensex fell 2.2% to close at 3,640 points and the S&P CNX Nifty was down by 2% to close at 1,163 points.

Open-ended, IT Schemes

NAV(Rs)

Last ...

Private funds maintain lead

pfnadmin — Wed, 21 Mar 2001 00:00:00 GMT

Monthly mutual fund data released by the Association of Mutual Funds in India (AMFI) shows a fall in net assets. Private funds continued their impressive run, while UTIâ€™s market share slid further.

Total mutual fund assets in February 2001 diminished 2% (month-on-month) to Rs 1,024 bn (Rs 1,045 bn in ...

Sectoral Funds Weekly Roundup

PersonalFN — Sat, 17 Mar 2001 00:00:00 GMT

Tehelka and low volumes on the bourses were the highlights of the week. The BSE Sensex fell 0.7% to close at 3,734 points whereas the S&P CNX Nifty was lower by 0.4% to close at 1,191 points.

Open-ended, IT Schemes	NAV(Rs)	Last week	Last month	Last year	Inception
Tata IT Sector ...

Fund managers in â€˜offloading- mode

pfnadmin — Tue, 13 Mar 2001 00:00:00 GMT

Market gloom hits growth funds

PersonalFN — Mon, 12 Mar 2001 00:00:00 GMT

Equity investors are not the only ones affected by the crisis in equity markets. Equity (growth) fund investors also have reason to frown.

Currently equity markets are witnessing some of the most harrowing times ever. Rarely has the market fallen so sharply over a period of 2-3 days. Ironically this ...

IT funds slide despite good budget

PersonalFN — Wed, 07 Mar 2001 00:00:00 GMT

The net asset values (NAVs) of IT (information technology) funds have witnessed a slide despite what is largely acknowledged as a good budget.

Open-ended, IT Schemes	NAV(Rs)	Last week	Last month	Last year	Inception
BSE - 30	-	-1.8%	-9.3%	-38.1%	-
S&P CNX Nifty	-	-1.9%	-8.7%	-32.8%	-
S&P ...

Disappointing year for tax saving funds

PersonalFN — Tue, 27 Feb 2001 00:00:00 GMT

Investors who had plumbed for tax-saving funds last year have learnt an important lesson. There is a risk associated with such investments and the returns are not necessarily rewarding.

Tax Saving Schemes	NAV (Rs)	1 week	1 month	1 year	Inception
Magnum Taxgain	20.68	-8.30%	-13.80%	-63.90%	12.20%
Tata Tax ...

Private funds enhance market share

PersonalFN — Fri, 23 Feb 2001 00:00:00 GMT

The latest monthly update (January 2001) from the Association of Mutual Funds in India (AMFI) once again confirms a trend that first emerged several months ago increasing share of private funds in the domestic mutual fund scene.

Private funds are confidently gaining market share largely due to improved customer service ...

What the budget has in store for mutual funds?

PersonalFN — Tue, 20 Feb 2001 00:00:00 GMT

The Union Budget 2001-02 is less than 10 days away. There is a lot of anticipation building up in areas of dividend distribution tax and pension funds.

The domestic mutual fund industry is currently witnessing a semblance of a slowdown and needs a strong tonic from the finance minister.

Leading ...

Sectoral Funds weekly roundup

PersonalFN — Sat, 17 Feb 2001 00:00:00 GMT

Subdued mood in the markets saw both the major market indices on a downslide over the week. While the BSE Sensex fell by 1.6% to close at 4,331 points, the S&P CNX Nifty was down by 1.5%, closing at 1,381 points.

Open-ended, IT Funds

NAV
(Rs)

Last
week

Last...

Equity fund collections dip with market slump

PersonalFN — Thu, 15 Feb 2001 00:00:00 GMT

Quarterly data released by the Association of Mutual Funds in India (AMFI) reveals that growth (equity) fund collections witnessed a fall in the last quarter (Oct-Dec) of Year 2000 largely due to uncertainty in equity markets.

BSE Sensex over the quarter Oct-Dec 2000

Equity markets have shown little character over ...

Balanced funds perk up

PersonalFN — Tue, 13 Feb 2001 00:00:00 GMT

Stability in stock markets and falling bond yields have had a favourable impact on balanced funds.

Equity markets have firmed up significantly over the past few weeks. This is largely due to commendable (quarterly) results from software and pharma majors. Fears of a US slowdown affecting Indian IT (infotech) have ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 10 Feb 2001 00:00:00 GMT

Funds hike old economy allocations

PersonalFN — Thu, 08 Feb 2001 00:00:00 GMT

From the look of it, mutual funds are extremely bullish on the prospects of old economy stocks and have hiked their allocations accordingly.

While a few months ago, cement did not even figure in fund portfolios, we are witnessing a steady pick-up in cement allocations over the past few months. ...

IT funds regain respectability

PersonalFN — Tue, 06 Feb 2001 00:00:00 GMT

Last month we witnessed something we haven't seen in a long time. A sustained rally in software stocks. This has pulled up net asset values (NAVs) of infotech (IT) funds.

Open-ended, IT Funds	NAV(Rs)	Last week	Last month	Last year	Inception
Tata IT Sector Fund	9.3	-0.3%	16.8%	-45.6%	14.8%...

Diversified growth funds beat the index

PersonalFN — Fri, 02 Feb 2001 00:00:00 GMT

This month saw diversified growth funds appreciating considerably with improved performance of equity markets (BSE Sensex up 8.6% over 1 month).

Open-ended, Growth Schemes	NAV(Rs)	Last week	Last month	Last year	Inception
BSE-30	-	0.0%	8.6%	-20.5%	-
S&P CNX Nifty	-	0.4%	8.6%	-13.0%	-
S&P CNX 500	-	-0.4%...

Will the US slowdown affect Indian IT?

PersonalFN — Tue, 30 Jan 2001 00:00:00 GMT

That's one question we posed to Mr Sunil Joseph, President and Director of Dundee Investment Management and Research, in our latest interview with him.

To our query Do you believe a US slowdown could have an adverse impact on the domestic IT (infotech) sector? Mr Joseph replied, Our IT expertise ...

Balanced funds in investors eye

PersonalFN — Wed, 24 Jan 2001 00:00:00 GMT

Over the last one week balanced funds have seen an appreciation in their Net asset values (NAV). The Sensex crossed the 4,300 mark (23rd December 2001) to close at 4,297 points and the S&P CNX Nifty closed at 1,356.

Open-ended, Balanced Schemes

NAV
(Rs)

Last
week

Last
month...

Diversified growth funds in limelight

PersonalFN — Mon, 22 Jan 2001 00:00:00 GMT

The markets have improved marginally over the last month and significantly during the last week. Both the Sensex and the S&P CNX Nifty have appreciated over 3% during the previous week, which in turn reflected in the growth of Net asset values (NAV) of the diversified growth funds.

Open-ended, Growth Schemes ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 20 Jan 2001 00:00:00 GMT

New Year begins on gloomy note for funds

PersonalFN — Fri, 19 Jan 2001 00:00:00 GMT

The start of the New Year has not been worth raving about as far as the mutual fund industry is concerned. The first 17 days of January 2001 saw only four days when funds made net purchases, with the balance 9 days witnessing net sales.

The Sensex has moved very ...

Private funds- market share on the up

pfnadmin — Thu, 18 Jan 2001 00:00:00 GMT

Fund inflows take a knock in December 2000

PersonalFN — Wed, 17 Jan 2001 00:00:00 GMT

The mandate is clear. Mutual fund investors do not like market volatility. They have shown their dislike by exiting from their funds in December 2000.

The December 2000 data published by the Association of Mutual Funds in India (AMFI) is not very pretty. Net inflows amounted to a mere Rs ...

Funds hike FMCG allocations

PersonalFN — Tue, 16 Jan 2001 00:00:00 GMT

Equity funds seem to be very bullish on the fast moving consumer goods (FMCG) sector. It does not take a genius to guess which sector is going to be closely monitored by fund managers in the coming months.

First it was the FMCG and software sectors in 1998-99. Then it ...

Gilt funds â€“ Low risk higher returns

pfnadmin — Thu, 11 Jan 2001 00:00:00 GMT

FMCG funds score over growth

PersonalFN — Tue, 09 Jan 2001 00:00:00 GMT

We have seen FMCG funds achieve something rather elusive this month, i.e. growth. And what is even more amazing is that FMCG funds have outperformed even some growth funds in the process.

Open-ended, FMCG Schemes

NAV
(Rs)

Last
week

Last
month

Last
year

*CAGR
Since inception...

IT funds rebound on US rate cut

PersonalFN — Mon, 08 Jan 2001 00:00:00 GMT

The gloom surrounding infotech (IT) stocks alleviated slightly after the US rate cut last week. But it remains to be seen how long this effect will last.

After witnessing sustained selling for most of last week, IT stocks finally got a reprieve in the form of a rate cut by ...

Balanced funds come out trumps

PersonalFN — Mon, 01 Jan 2001 00:00:00 GMT

Equity markets witnessed some harrowing times this year. This took a toll on growth funds. Investors would have been better off investing in balanced funds, which escaped the brunt of the market slide, thanks to a fixed income hedge.

It took just one bearish rally in March to kill the ...

Sectoral funds â€“ Weekly roundup.

pfnadmin — Sat, 30 Dec 2000 00:00:00 GMT

Market slump deals blow to growth funds

PersonalFN — Thu, 28 Dec 2000 00:00:00 GMT

The seasonal week (Christmas and Eid) saw both the major market indices on a downswing, showing no mirth that is indicative of these two major festivals. The BSE Sensex slumped by 8.5% and the S&P CNX Nifty plunged by 8.1% dealing the net asset values (NAVs) of diversified growth funds ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 23 Dec 2000 00:00:00 GMT

Bank MFs face the heat

PersonalFN — Fri, 22 Dec 2000 00:00:00 GMT

News reports in leading business dailies indicate that some bank-sponsored mutual funds are looking to exit from the mutual fund business.

The writings on the wall for bank sponsored mutual funds. A sharp slump in performance coupled with declining investor interest are the main reasons for these funds heading for ...

Lower yields prop up gilt fund NAVs

PersonalFN — Thu, 21 Dec 2000 00:00:00 GMT

News reports reveal that bond yield on 10-year government paper has fallen below 11%. This implies higher bond/gilt prices, which has propped up gilt funds net asset values (NAVs).

According to reports in leading business dailies, yield on 10-year government paper fell below the 11% mark for over 6 months. ...

UTI upstaged by private funds

PersonalFN — Tue, 19 Dec 2000 00:00:00 GMT

The past few months haven't been the best of times for the Unit Trust of India (UTI), India's largest mutual fund. UTI has witnessed an erosion in its market share, as investors have spurned it in favour of other fund houses.

As per the latest figures (November 2000) available from ...

Balanced funds on the mark

PersonalFN — Thu, 14 Dec 2000 00:00:00 GMT

Balanced funds have appreciated in a big way during the week. The week saw BSE 30 appreciating by 4% to close at 4,288 (as on 13th December) and the NSE-50 rose by 4.07% to close at 1,356 (as on 13th December).

Open-ended, Balanced Schemes

NAV
(Rs)

Last
week

Last...

Sectoral funds weekly roundup

PersonalFN — Sat, 09 Dec 2000 00:00:00 GMT

During the week BSE Sensex appreciated by 2.8% to close at 4,156 points, while the S&P CNX Nifty rose 3.0% to close at 1,313 points. There was buying interest in major index stocks.

Open-ended, IT Schemes

NAV
(Rs)

Last
week

Last
month

Last
year

*CAGR
Since ...

Growth fund NAVs inch upwards

PersonalFN — Thu, 07 Dec 2000 00:00:00 GMT

The markets have appreciated a fair bit over the last month. Net asset values (NAVs) of growth fund have reflected this growth.

Over the month, the markets have witnessed significant buying with old economy very much in the forefront. After a long time, we have seen stocks like L&T, ACC ...

Funds take to Sterlite Optical

PersonalFN — Tue, 05 Dec 2000 00:00:00 GMT

Sterlite Optical is the new stock on the block. That is the impression one gets after seeing some of the latest fund portfolios.

Sterlite Optical is a hived-off division of Sterlite. The company is into optical fibre cables and is one of 2-3 players in the country that operate in ...

Sectoral funds - Weekly round-up

PersonalFN — Sat, 02 Dec 2000 00:00:00 GMT

The week saw BSE Sensex appreciating by 1.5% to close at 4,032 points, while the S&P CNX rose 1.7% to close at 1,276 points.

Open-ended, IT Funds	NAV (Rs)	Last week	Last month	Last year	*CAGR Since inception
Chola Freedom Tech (Cum)	13.4	1.4%	3.3%...

Funds offload in November

PersonalFN — Fri, 01 Dec 2000 00:00:00 GMT

The markets were jittery for most of November 2000. The impact this hand on funds is for all to see.

There were only 7 instances (out of 21 trading days) in November 2000 when fund managers made net purchases. These amounted to Rs 11 m. Barring these instances, fund managers ...

Balanced funds remain subdued

PersonalFN — Thu, 30 Nov 2000 00:00:00 GMT

Buoyant markets haven't lifted balanced fund NAVs (net asset values) in a big way. Both the major market indices BSE-30 and S&P CNX Nifty have appreciated by 4% over the week to close at 4,024 and 1,270 (as on 28th November) respectively.

The BSE-30, which crossed the 4,000-point mark this ...

Old economy lifts growth fund NAVs

pfnadmin — Wed, 29 Nov 2000 00:00:00 GMT

The major market indices â€“ BSE Sensex and S&P CNX Nifty have appreciated over the week by 1.1% and 1.4% respectively. Diversified growth funds have thrived on the growth wave and have even managed to outperform the major market indices.

With the markets showing faint signs of a revival, albeit ...

Sectoral funds - Weekly round-up

PersonalFN — Sat, 25 Nov 2000 00:00:00 GMT

During the week, the BSE Sensex fell by 1.5% to close at 3,869 points. The S&P CNX Nifty fell by 0.9% to close at 1,226 points.

Open-ended, IT Schemes	NAV (Rs)	Last week	Last month	Last year	*CAGR Since inception
UTI Sector- Software	15.3...

Growth funds in recoveryâ€¦

pfnadmin — Thu, 23 Nov 2000 00:00:00 GMT

UTI's market share takes hit

PersonalFN — Wed, 22 Nov 2000 00:00:00 GMT

Unit Trust of India (UTI) has had a towering presence on the Indian mutual fund scene. However, younger upstarts (private sector funds) are changing that.

UTI's market share has been on the wane for quite some time now. While this may not be UTI's fault per se, investors seemed to ...

October witnesses net inflows

PersonalFN — Tue, 21 Nov 2000 00:00:00 GMT

A jittery stock market failed to dampen enthusiasm of growth fund investors. This category of mutual fund investors witnessed net inflows in October 2000.

However, monthly figures for the domestic mutual fund industry released by the Association of Mutual Funds in India reveals a decline in net assets under management. ...

Disinvestment talks may spur buying

PersonalFN — Mon, 20 Nov 2000 00:00:00 GMT

The government seems to have made up its mind about disinvesting from oil and telecom public sector units (PSUs). Funds that had ignored PSU stocks in the past may now want to take another look at them.

Open-ended Growth Funds	Date of holding	% Holding	NAV (Rs)
Alliance Basic Ind. ...

Sectoral funds - Weekly round-up

PersonalFN — Sat, 18 Nov 2000 00:00:00 GMT

This week saw the BSE Sensex on a roller coaster. On the first day itself, the market fell by 121points, however it recovered during the week to close at 3,906 points showing a growth of 2.2%. Similarly, S&P CNX Nifty also appreciated by 2.4% closing at 1,236 points.

Open-ended, ...

Gilt funds firm up

PersonalFN — Thu, 16 Nov 2000 00:00:00 GMT

Oblivious to the volatility in stock markets, gilt (government securities) funds have witnessed a steady appreciation over the past few weeks.

Gilt prices have remained firm for quite some time now and this has seen gilt fund NAVs (net asset values) inch upwards steadily.

Open-ended,
Gilt Funds

NAV
(Rs)...

Growth funds post indifferent performance

PersonalFN — Tue, 14 Nov 2000 00:00:00 GMT

The major market indices BSE-Sensex and S&P CNX Nifty remained listless over the last week. This was reflected in the indifferent performance of diversified growth funds.

Open-ended, Growth Schemes	NAV (Rs)	Last week	1 month	12 months	*CAGR Since inception
Magnum Equity Fund	13.1	0.8%	4.8%	-9.2%	14.2%...

Pharma stocks in the limelight

PersonalFN — Mon, 13 Nov 2000 00:00:00 GMT

Pharma stocks have surged over the past couple of weeks. Growth funds with significant exposure to pharma sector will benefit from this growth.

Scheme	Date of holding	% Holding	NAV (Rs)
K MNC	3 Nov,2000	20.9	9.28
Tata Tax Savings	30 Sep,2000	20.0	12.22
Birla MNC Fund (Gr)	29 ...

Sectoral funds weekly roundup

PersonalFN — Sat, 11 Nov 2000 00:00:00 GMT

The first three days of the week saw the Sensex breach the 4,000-point mark, albeit briefly. Subsequently, the markets reacted to selling pressure on account of the fall on the US bourses. The Sensex ended with a marginal gain over the previous week's closing.

Open-ended, IT Schemes

NAV
(Rs)...

Income Funds heading the right wayâ€¦

pfnadmin — Thu, 09 Nov 2000 00:00:00 GMT

Index Funds: Getting back their rhythm

PersonalFN — Tue, 07 Nov 2000 00:00:00 GMT

The S&P CNX Nifty appreciated by 5.8% in past week, to close at 1,240 points (6th Nov 2000). Major stocks like Infosys, Zee Telefilms, Satyam Computers and MTNL logged in substantial gains, which resulted in this upturn in market performance.

Index funds, which have an investment objective of investing in ...

Sectoral funds weekly roundup

PersonalFN — Sat, 04 Nov 2000 00:00:00 GMT

In the current week, the BSE Sensex rose 6.6% to close at 3,933 points. The S&P CNX Nifty appreciated by 6.3% to close at 1,241 points.

Open-ended, IT Schemes	NAV (Rs)	Last week	Last month	Last year	*CAGR Since inception
Alliance New Millenn (Gr)	7.9...

Balanced funds turn in good returns

PersonalFN — Fri, 03 Nov 2000 00:00:00 GMT

The buoyancy witnessed in the stock markets is already showing up in the NAVs of balanced funds.

The key market indices have logged in growth in excess of 3% over the last week. The rise was largely driven by buying interest in the FMCG and Indian pharma stocks. Also, IT ...

Growth funds get welcome push

PersonalFN — Mon, 30 Oct 2000 00:00:00 GMT

After a slump in the markets over the past few weeks both the major indices BSE Sensex and S&P CNX Nifty have appreciated by 3% each during the last week. This is reflected in the marginal improvement in the performance of diversified growth funds.

Open-ended, Growth Schemes

NAV
(Rs)

Last...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 28 Oct 2000 00:00:00 GMT

Funds latch on to old economy

PersonalFN — Fri, 27 Oct 2000 00:00:00 GMT

There is considerable talk of knowledge-driven industries hogging the limelight in the coming years. However, that doesn't mean that fund managers have given up on traditional industries like cement and engineering completely.

A look at the latest sectoral holdings of fund houses seems to indicate that funds haven't dumped old ...

Sectoral Funds â€“ Weekly roundup

pfnadmin — Sat, 21 Oct 2000 00:00:00 GMT

Income funds escape unscathed

PersonalFN — Thu, 19 Oct 2000 00:00:00 GMT

While equity markets are on a downhill journey, income funds have been relatively insulated from erosion.

Open-ended, Growth Schemes	NAV(Rs)	Last week	Last month	Last year	Since inception
Alliance Equity Fund (Gr)	32.4	-6.1%	-14.2%	13.4%	71.9%
DSP ML Opportunities (Gr)	7.7	-6.2%	-15.4%	0.0%	-12.8%
JM Equity Fund (Gr)	9.1...

Even balanced funds witness erosion

PersonalFN — Tue, 17 Oct 2000 00:00:00 GMT

The slide in equity markets is showing no signs of abating. That is not only bad news for growth funds, but also equity-heavy balanced funds.

The BSE Sensex has slumped nearly 10% in October 2000 despite excellent results posted by software majors Infosys, Satyam and NIIT. Currently the mood is ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 14 Oct 2000 00:00:00 GMT

Growth fund NAVs witness freefall

PersonalFN — Fri, 13 Oct 2000 00:00:00 GMT

The repercussions of the current market slump can be felt, rather seen, in the net asset values (NAVs) of diversified growth funds.

With equity markets heading southwards fast, fund managers aren't exactly having the time of their lives. As highlighted by us yesterday, they are being to forced to sell ...

Heavy selling by mutual funds

PersonalFN — Wed, 11 Oct 2000 00:00:00 GMT

The gloom pervading the markets has forced many a fund manager to push the Sell button in a hurry.

The markets have tanked significantly over the past few days. The BSE Sensex has fallen 5% from 4,159 points in October 4 to 3,947 points in October 10. What is even ...

SEBI-s attempts to discipline Mutual funds

pfnadmin — Tue, 10 Oct 2000 00:00:00 GMT

Funds still bank on software

PersonalFN — Tue, 10 Oct 2000 00:00:00 GMT

Despite the volatility in the sector, diversified growth funds continue to bank on software in a big way.

Most fund managers (Tata Mutual Fund, Sun F&C MF, JM MF, Kothari Pioneer MF) we have interviewed in the past still have unshakeable faith in software and see it as the main ...

Growth funds crawl

PersonalFN — Mon, 09 Oct 2000 00:00:00 GMT

When the markets crawl, so do diversified growth funds. Both the major indices BSE Sensex and S&P CNX Nifty, showed negligible growth during the week, which was reflected in the last week's performance of diversified growth funds.

Open-ended, Growth Funds

NAV
(Rs)

Last
week

Last
month

Last
...

Sectoral Funds â€“ Weekly roundup

pfnadmin — Sat, 07 Oct 2000 00:00:00 GMT

MIPs in vogue

PersonalFN — Thu, 05 Oct 2000 00:00:00 GMT

Fund houses seem to have taken a fancy to monthly income plans (MIPs) over the last few weeks. But is this a passing phase or are MIPs here to stay?

MIPs are best suited for investors who want to save for a rainy day. So ideally a MIP investor can ...

Market slide takes toll on growth funds

PersonalFN — Tue, 03 Oct 2000 00:00:00 GMT

The sharp fall in markets fuelled by fears of a petrol price hike, has taken its toll on diversified growth funds.

As always, the free-fall in the markets is evident most in the prices of software stocks. And for a change, even Hindustan Lever fell significantly during the week ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 30 Sep 2000 00:00:00 GMT

UTI hauled up for RUS-92

PersonalFN — Thu, 28 Sep 2000 00:00:00 GMT

Hapless investors under the Rajalakshmi Unit Scheme (RUS-93) who saw UTI prematurely terminating the scheme, have reason to smile, for a change, with the staying of the scheme termination.

News reports in leading dailies indicate that the termination of RUS-92 has been stayed by the Bombay High Court until further ...

Gilt funds look up

PersonalFN — Tue, 26 Sep 2000 00:00:00 GMT

Net asset values (NAVs) of gilt funds are looking up. This is largely due to some buying interest in government securities (gilts) subsequent to the fall in yields with the rise in crude prices.

Open-ended, Gilt Schemes

NAV
(Rs)

Last
week

Last
month

Last
year

Since
...

Growth funds reel from market shock

PersonalFN — Mon, 25 Sep 2000 00:00:00 GMT

With the slide in equity markets escalating, diversified growth funds are reeling from the shock and are witnessing their net asset values (NAVs) take a tumble.

Open-ended, Growth Schemes	NAV (Rs)	Last week	Last month	Last year	Since inception
BSE - 30		-9.7%	-4.8%	-10.1%...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 23 Sep 2000 00:00:00 GMT

Will SEBI take on UTI?

PersonalFN — Thu, 21 Sep 2000 00:00:00 GMT

That's the question foremost in the minds of thousands of investors who got a rude shock when UTI decided to prematurely redeem its Rajlakshmi Unit Scheme 1992 (RUS 1992).

According to reports appearing in leading dailies, the market watchdog the Securities and Exchange Board of India (SEBI) is looking into ...

Market gloom hits balanced funds

PersonalFN — Wed, 20 Sep 2000 00:00:00 GMT

Much like their growth counterparts, net asset values (NAVs) of balanced funds fell dramatically consequent to the market slump on news of rising crude prices.

Even with a 60% (maximum 70%) exposure to equities, balanced fund NAVs have been hit about as hard as growth funds. One reason for this ...

Growth funds get crude shock

PersonalFN — Tue, 19 Sep 2000 00:00:00 GMT

Crude concerns have hit equity markets in a big way, and this is more than evident in the 400+ point slide in the BSE Sensex over the past few days. The impact on (equity) growth funds has been depressing to say the least.

Rising crude oil prices in the global ...

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 16 Sep 2000 00:00:00 GMT

An award for incompetence?

PersonalFN — Thu, 14 Sep 2000 00:00:00 GMT

Another round of applause, another round of awards. Nothing wrong with that, except for the fact that the applause and the awards are not so much for competence as for incompetence.

A few days ago newspaper reports announced the IRIS-R.S.Bhatt Mutual Funds Awards 2000. The Award panel was chaired by ...

Can MFs get away with this?

PersonalFN — Tue, 12 Sep 2000 00:00:00 GMT

Yes, but only if is the Unit Trust of India (UTI). The discontinuance of Rajalakshmi Unit Plan II has come as an unpleasant surprise to many investors and they like to know how much more they can trust the country's largest money manager.

The Rajalakshmi Unit Plan II is a ...

Sectoral funds roundup

PersonalFN — Mon, 11 Sep 2000 00:00:00 GMT

IT funds surged with sustained buying in some software counters like Infosys, Satyam Computers, HCL Tech. and NIIT. Second rung software stocks like Onward Tech., Subex Sys, Mascot also witnessed significant buying. A note of caution for investors buying in IT stocks can easily turn to a sell in this ...

Gilt funds firm up despite concerns

PersonalFN — Fri, 08 Sep 2000 00:00:00 GMT

As gilts prices appreciate, gilt fund NAVs are firming up. But is this going to be sustainable?

The last few days have witnessed a rise in (government securities) gilt prices. The rise in gilt prices is a direct fallout of the low interest regime signaled by the lending and borrowing ...

FMCG gets thumbs down

PersonalFN — Wed, 06 Sep 2000 00:00:00 GMT

The fast moving consumer goods (FMCG) sector continues to remain out of favour with most funds. One reason for this is software.

Most fund managers have snubbed FMCG for the past several months. This is in stark contrast to last year, when FMCG was one of the pivotals of the ...

Growth funds show consistency

PersonalFN — Tue, 05 Sep 2000 00:00:00 GMT

Diversified growth funds are finally showing some semblance of consistency as returns have been climbing for some time now.

The surge witnessed in equity markets since mid-August has pushed up the net asset values (NAVs) of growth funds and this is reflected in the returns. The rise in equities is ...

Fund managers see more value in software

PersonalFN — Mon, 04 Sep 2000 00:00:00 GMT

A lot of people turned very pessimistic of software stocks after the huge correction in the markets in March-April. Investors dumped these stocks and exited from software in hordes. However, fund managers continue to see value in software even at current levels.

Most diversified growth funds continue to have over ...

Balanced funds look up

PersonalFN — Thu, 31 Aug 2000 00:00:00 GMT

As stock prices shore-up, even balanced funds are seeing some growth.

Just last fortnight, balanced funds were in the doldrums with both the equity and fixed income portions seeing some erosion in value. However as equity markets look up, that trend has been reversed for the time being.

Open-ended, Balanced Funds...

Growth funds live up to nameâ€¦at last

pfnadmin — Mon, 28 Aug 2000 00:00:00 GMT

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 26 Aug 2000 00:00:00 GMT

Hunger for growth

PersonalFN — Fri, 25 Aug 2000 00:00:00 GMT

Regardless of the volatility in the markets, the mutual fund investor continues to view growth (equity) funds favourably. This seems to underline a maturity in the industry.

The latest figures released by the Association of Mutual Funds in India (AMFI), as on 31st July 2000, indicate that (gross) inflows in ...

Funds book profits

PersonalFN — Thu, 24 Aug 2000 00:00:00 GMT

The short-lived rally on the markets saw funds offload stocks to book some profits. This marked a reversal of trend when most of August saw funds buying.

There is some positive sentiment in the markets these days, which accounts for the 170-point rally witnessed between Friday last and Tuesday. Funds ...

Markets prop up balanced funds

PersonalFN — Wed, 23 Aug 2000 00:00:00 GMT

The recent surge in equity markets has propped up the net asset values (NAVs) of balanced funds.

The rally (if you can call it) in equity markets has brought a sharp turnaround in the fortunes of balanced funds. Not so long ago, balanced funds were still recovering from the double ...

Mutual funds â€“ from hold to bold

pfnadmin — Tue, 22 Aug 2000 00:00:00 GMT

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 19 Aug 2000 00:00:00 GMT

Growth funds pick up steam

PersonalFN — Fri, 18 Aug 2000 00:00:00 GMT

The markets are moving aimlessly, as they have been for the past few weeks. Having spoken to a few fund managers, the only conclusion one can draw is that we are currently witnessing a trading market without any direction. Diversified growth funds are witnessing this in their net asset values ...

Growth funds get some relief

PersonalFN — Mon, 14 Aug 2000 00:00:00 GMT

But for how long? That would depend a lot on how the markets oscillate in the coming months. But for the time being, fund houses will not want to be bothered about such irrelevant details.

Diversified growth funds picked up some steam last week on the back of a surge ...

Sectoral Funds â€“ Weekly roundup

pfnadmin — Sat, 12 Aug 2000 00:00:00 GMT

Fund managers on vacation?

PersonalFN — Thu, 10 Aug 2000 00:00:00 GMT

That's one explanation for the rather listless trading by funds so far in August. The other explanation could be that funds are adopting a wait-and-watch attitude.

Figures released by the Securities and Exchange Board of India (SEBI) has thrown up some pretty interesting facts as far as buying/selling by mutual ...

Balanced Funds â€“ Worst of both worlds

pfnadmin — Tue, 08 Aug 2000 00:00:00 GMT

Sectoral funds â€“ Weekly roundup

pfnadmin — Sat, 05 Aug 2000 00:00:00 GMT