Details: New fund offer closes on January 15. The benchmark is BSE 200. Minimum investment is Rs 5,000
During any trading session, ETF index funds can be purchased and sold at the prevailing rates and so are similar to purchase and sale of shares. Demat account is compulsory for transacting in Exchange Traded Index funds ( ETFs). For non ETF index funds, demat account is not required and investment can be made with just a bank account as in case of normal MFs.
Tracking error is the differentiator when it comes choosing one index fund against the other. Tracking error is the extent to which the NAV of the index funds move in a manner that is inconsistent with the movements of their respective indices during a given period.
Average 1 year return from index funds as of 6th Dec 07 45.42%*
Returns proportionate to index
* returns data from valueresearchonline
our views-Lot of proven mid caps available in the market. Pure small cap oriented funds are very few ( DSPML Small companies fund and Sundaram BNP paribas select small cap). Investors who have a big time horizon and want to have smaller companies in their portfolio can look at this fund.
JM Agri & Infra Fund, is a close-ended equity oriented scheme. The investment objective of the Scheme is to provide long-term growth by investing predominantly in equity / equity related instruments of companies that focus on agriculture and infrastructure development of India.
Fund Class Equity Diversified
Fund Type Close-Ended
Fund Manager Sandip Sabharwal
Entry Load 0.00 %
Exit Load 0.00 %
Comment Exit Load - for ongoing redemptions/switch out after three months from the date of allotment, the exit load till maturity of the scheme will be Nil. However, at the time of redemption, the unitholders will be charged the balance proportionate unamortized initial issue expenses applicable to their investments.
This scheme will invest overseas via the SEBI guidelines which allow investments by the mutual fund industry to the extent of USD 5 billion.
ICICI Prudential Real Estate Securities Fund (The scheme will not be directly owning or holding real estate properties.) is a 3-year close-ended debt fund, designed to invest in Real Estate Sector and real estate oriented sectors like Cement, Construction, Metals, Hotels, Retail, Banks & Finance Companies etc.
The scheme will:
Predominantly invest (51% to 100%) in high yielding debt securities issued by companies that are associated with or benefitting (directly / indirectly) from the real estate sector.
Invest up to 49% in equity of companies, which are engaged in industries that benefit directly or indirectly from the Real Estate Sector or have substantial investments in property (incl. Land holdings).
The initial allocation of the fund will typically be 70% in debt instruments and 30% in equity
Mutual Fund Lotus India Mutual Fund
Scheme Name Lotus India AGILE Fund
Objective of Scheme To generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation by investing in a passive portfolio of stocks selected from the industry Leaders on the basis of a mathematical model.
Scheme Type Open Ended
Scheme Category Growth
New Fund Launch Date 25-Oct-07
New Fund Earliest Closure Date 23-Nov-07
New Fund Offer Closure Date 23-Nov-07
Indicate Load Separately
Entry Load : Where purchase amount is less than Rs. 5 Crores - 2.25% Where purchase amount is equal to or greater than Rs. 5 Crores - Nil Exit Load : if redeemed on or before the expiry of 6 months from the date of allotment - 1% if redeemed after six months and on or before the expiry of 1 year from the date of allotment - 0.6% if redeemed after the expiry of 1 year from the date of allotment - Nil
Offer Price (Rs.) 10
Minimum Subscription Amount Rs. 5,000/- per application
The new fund offer (NFO) opens on November 12, 2007 and closes on December 19, 2007. Units can be purchased only during the NFO period.
Scheme Name JPMorgan India Smaller Companies
Launch Date 09/11/2007 closing on November 30th 2007
Fund Manager Mr. Harshad Patwardhan
Investment Objective :The investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities focused on smaller companies. Generally, the universe will be the companies constituting the bottom fourth by way of market capitalization of stocks listed on the National Stock Exchange or The Bombay Stock Exchange. The fund manager may from time to time include other equity and equity related securities outside the universe to achieve optimal portfolio construction. However, there can be no assurance that the investment objective of the scheme will be realised.Minimum investment is 5000 rs Entry load of 2.5 percent Exit load of 1 percent
"Indian mutual funds (MFs) total assets under management (AUM) crossed the magical Rs 5 lakh crore mark at the end of October.
But with the Sensex at the 20,000 levels, market insiders say that very little fresh money has come in from that set of investors whom fund houses have been diligently trying to target: retail."
This news shows that although FIIs are pouring in money, Retail investors are booking profits and staying away from investing further.
Ultimately FIIs are benefiting more while most of retail investors stay out of the race. I think the concept of long -term investing and it's benefits needs to precipitate further.
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The data demonstrates that an investor who, through attempting to time the market, misses just the ten best days of market returns in the last ten years, will make considerably less than one who remains invested through volatile periods. This also demonstrates that volatile periods can account for a large part of upward changes in market levels. While it is uncertain whether the current upswing in market levels is sustainable in the short-term, for the medium-term, there have been no changes in economic fundamentals, which remain positive. India’s economy is still fore casted to grow on track, with FY08 forecasts ranging from between 8% to 8.5%. In this volatile market, the Systematic Investment Plan (SIP) method continues to be a viable way of investing in stocks through a professionally managed mutual fund, regardless of current levels. It is also important to distinguish between the run-up in the Sensex (to a great extent driven by just 5 out of the 30 stocks in the index), and the situation in the broader market, where there continues to be long-term stock picking opportunities that active fund managers can capitalise on.
The trading has been halted for an hour. The trading has been halted for the time since May 2004".
For those who are looking forward to understand the basics of derivatives, find below the following links.
Was going through these a couple of days back. They are really good in introducing the readers to derivatives and will help understand basics of Futures & Options.
The most searches that led viewers to this blog during last week is 'ICICI regular income bonds 2007'. This bond issue has seen a lot of interest. Some have asked whether the issue is safe. Any investment has risks associated with it. Risk - return analysis and an investor's need should be considered before you invest in any product.
Return Since Launch 28.33 * source - value research.
For beginners ULIP is Unit linked Insurance Plans which invest in units as desired by the investors. ULIPS are Insurance cum Investment Plans. SIP is not an investment instrument but an investment method to invest in Mutual Funds. You can regularly invest in equity mutual funds through SIPs. ( Read posts labelled SIP, Insurance and ULIP for more info).
SIP definitely scores over ULIP as an investment.
Unfortunately, the trend reflected through data is not that great. Data from preceding month shows that flows ( into equity market) from insurance companies (ULIPs) into equity were four times greater then flow from MFs. It's a good sign that people have realised the power of equity, but still we have to mature in terms of understanding and choosing the right instruments.
To answer the second question, Investment in equity mutual funds through SIP is the best way for retail investors. You need to spare time and need to have patience to achieve your long term goals in this route. Happy Investing!.
Readers can feel free to write to us or comment on the posts regarding any questions/ clarifications.
Upward or downward trend, We think that volatility is here to stay. So as retail investor we can SIP it all the way without making guesses.
source ET intelligence/ value research
nb :- A lot people come to this site by the search term 'SIP vs one time investment' and ' MF SIP vs ULIP'.
Source: NAV india/ Hindu Businessline
AMC = Asset Management Company ( Mutual fund company)
For 10 year analysis on some equity funds---http://ideasmoney.blogspot.com/2007/05/sip-returns-analysis.html
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100% Microwave cooking Point of View Best Crafts blog A Crore - online
There is considerable difference in returns from SIP and direct investment. This may not be the case always. But , it proves a point that the concept of cost averaging works out in favour of investor during volatility.
Lock-in period in ELSS is applicable for units based on the date of purchase of that relevant unit.
units purchased on 10th of may07 ,jun 07, jul 07, aug 07 ,sep07 ,oct 07.
redemption of units purchased on 10th may 07 can be dome on or after 10 may 10
same way ,units purchased on 10th jun 07 can be done on or after 10 jun 10. and so on
The lock-in for the units will be determined by the purchase date of that unit.
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