Asian Fund Managers Views
Wednesday, February 25, 2009
Here is how Asian Fund Managers are looking at India and China for investments in the next 12 months.
Most long-only funds are underweight India and most hedge funds are running short positions on India, while almost 100% of the funds are overweight on China. The reason they are betting on China over India is the perception that China's far stronger fiscal position, continued large current account surplus and large Fx reserves give it the flexibility to provide large economic stimulus in the form of infrastructure spending. India faces a number of worries, among them, uncertainty on outcome of the imminent general elections, rising fiscal deficit, and premium valuations. YTD, China's A share index up ~30% , whereas BSE Sensex is down 8.3%.
67% of funds surveyed are underweight on tech or have short positions on techs, whereas ~ 40% funds are underweight on Real Estate and Cyclicals. Uncertainty on clients’ tech budgets in FY10 and expectations of rupee appreciation are key reasons for clients running an underweight position on techs.
While almost 40% of the funds we polled expect global cyclicals to retest their recent lows, more than 80% expect crude to behave differently from other commodities and rise from here on.
Its been over 3 months I have been telling myself to start an SIP in an Asian Fund. I will review one and post my analysis here.
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Published by Webmaster @ 12:08 PM IST.
Reliance Mutual SIP with 21 days Gap
Friday, February 13, 2009
Reliance Mutual Fund has introduced an additional new feature in Systematic Investment Plan (SIP) facility. This feature will be applicable for new investor wherein he can start SIP plan without any initial investment.
Under this option investor can submit the application for SIP on any working day and the SIP facility would be started with the minimum gap of 21 working days after submission of the application form. The following installment date for SIP shall be 2nd, 10th, 18th and 28th. If the date of installment falls on non working day then units will be allotted on the following working day.
This feature will come into effect from 11th February, 2009.
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Published by Webmaster @ 8:15 PM IST.
HDFC + HSBC SIP Investment Review
Friday, February 06, 2009
The Indian markets continued to slide / move sideways in a narrow range amidst global uncertainty and poor economic conditions.
For the first time you will see SIP Investments fairing poorer compared to Lumpsum investment in some funds. This doesn't mean you stop your SIPs, No way!!! Here is the performance of the funds we have recommended in the past in Q4-2008.
HDFC Equity Fund's Lumpsum Investment 10 years ago yielded 28.38% while SIP investment yielded 23.84%.
HDFC Top 200 Fund - Performance
HDFC Long Term Advantage Fund - Lumpsum investment since inception yielded 25.47% while SIP investment yielded 22.44%.
HDFC Tax Saver Fund - Performance
HSBC Equity Fund has give an return of 17.84% in the last 5 years as on Dec-2008.Kindly continue with your SIP as this is the time when you will accumulate lot of units / wealth at cheaper price.
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Published by Webmaster @ 1:27 PM IST.