Archive for January 14th, 2007
Sundaram BNP Paribas MF has come up with two interesting New Fund Offers (NFO) – the Sundaram BNP Paribas Select Small-Cap Fund and the Sundaram BNP Paribas Multiplier Fund.
The Small-Cap Fund will be in NFO from January 10-24, 2007. This close-ended fund will have a corpus capped at Rs 300 crore plus 10-per-cent over
subscription to optimise performance. The fund house has put this fund for those who are ready to take up high-risk in anticipation of high return product and can hold the investment for five years.
The Multiplier Fund will be in NFO from January 10 – 31, 2007. This close-ended fund will have a corpus capped at Rs 500 crore plus 10-per-cent over subscription. The fund house says the fund is ideal for those who can wait for 3 -5 years with the investment for best returns.
January 14th, 2007
Well, here is a question that many financial advisers and tax planners get asked by novice investors: How much money should i have to invest in order to get Rs. 10,000 per month?
This sounds to be a reasonable question. Rs. 10,000 is a decent income for novice users who do not want to track stocks on a daily basis and yet get want to put in a lump sum money as an investment and forget about it for some time yet make Rs. 10,000 per month by way of income from the investment.
Many financial experts whom this question was asked says that an investment of Rs. 10 Lakh in a proper blend of mutual funds would give in the said amount. They say that novice users should not have a direct presence in the stock market because of the ups and downs that happen on a daily basis. Added researching sectors, picking stocks, taking positions and having a clear exit policy at the right time is almost very difficult for novice. Hence, the job be given to fund managers who take up the responsibility of making your money work harder in a professional way.
As said, even putting money into the mutual funds too needs to be carefully planned - particularly when you are expecting monthly returns consistently (by way of dividends). About 30% of the money could go to diversified equity funds, 60% to MIPs and the remaining 10% for debt funds (particularly those that do not have entry and exit loads and are highly liquid). The MIPs are the real money givers for you in a consistent basis. In case the MIPs are not able to give in the targeted money, you can tap the investment in debt fund to draw the money that fell less to the targeted Rs. 10,000 per month. Since equity funds are expected to give in good returns on a long term basis, you can opt to take dividends from the equity funds and increase your stake in the MIPs as and when dividends on Equity funds is announced.
As for funds, they say that fund houses that are well known for giving good dividends consistently are to be picked. HDFC, Birla, Reliance, DSP, FT top their charts.
January 14th, 2007
Thanks to the growing money needs of the growing Indian economy and the way banks are using this opportunity. As excepted by many watchers, UTI Bank has announced its Q3 results for 2006-07.
The Net Profit for the third quarter was Rs. 184.61 crores, up by 40.16% over the Net Profit of Rs. 131.71 crores for the third quarter of last year. The Net Profit of the Bank for the nine months ended December 2006 was Rs. 447.14 crores, up by 34.14% over the Net Profit of Rs. 333.35 crores during the first nine months of the previous year.
January 14th, 2007
The mega business show of Gujarat at Ahmedabad, India has put up 12 sectors in its focus:
Agro & Food Processing
Textiles & Apparels
Chemicals, Petrochemicals & Pharmaceuticals
Engineering, Auto & Ceramics
SEZ & Port Led Development
Power, Oil & Gas
Gems & Jewellery
Medical Tourism
Bio Technology
Information Technology
Urban Development
Tourism
The total investments signed up so far is put at a staggering Rs 4.49 lakh crore. Its Chief Minister Narendra Modi will be a happy man for these projects will bring in 12 lakh people into employment. Almost all leading business houses of the country have one or the other deal or at least an announcement plan with Gujarat Government.
However there was no investment announcement from Anil Ambani so far. Anil however congratulated Gujarat and termed it a ‘24-carat state’ and said it a mid-size economy in itself and top the list in India.
Mukesh Ambani of Reliance group announced Rs67, 550 crore investment in Gujarat. Birla Group would put in Rs. 2100 crore investment in manufacturing facilities in Cement and Textile sectors.
January 14th, 2007
Some business media have posted that Tata Mutual Fund is launching Tata SIP Fund. The fund will be a close ended fund and will be based on systematic investment plan. According to the information available, the fund would start with an allotment of 0-35% into equities and the bulk goes into debt and money market instruments. The second year will give more allotment to equities while the third year would see up to 75% into equities and the remaining in debt. The fund sounds to be a good one looking at the strategy.
Unfortunately it seems Tata MF website has not yet put the announcement/information of this new fund on its website yet. Will keep posting in as information rolls out..
January 14th, 2007