SBI floats Gold Exchange Traded Scheme
Tuesday, March 31, 2009
SBI Mutual Fund has announced the launch of SBI Gold Exchange Traded Scheme.
The new fund offer (NFO) has opened on March 30, 2009 and is scheduled to close on April 28, 2009.
The scheme offers only growth option. As a result, no dividend would be declared under the scheme. Minimum Amount for Application in the NFO is Rs 5000 and in multiples of Re 1 thereafter for Authorized Participants and Investors.
The price of the gold is the benchmark for the scheme. The price here refers to, the morning fixing (AM) of Gold by London Bullion Market association (LBMA).
The investment objective of the fund is to seek to provide returns that closely correspond to returns provided by price of gold through investment in physical gold. However, the performance of the scheme may differ from that of the underlying asset due to tracking error.
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Published by Webmaster @ 5:54 PM IST.
Equity Outlook by HDFC AMC
Tuesday, March 24, 2009
Here is the outlook for Equity by HDFC's CIO and Sr. Fund Manager Mr. Jain.
Current valuations are cheap even assuming NIL earnings growth in FY10. Sensex FY09e EPS-Rs.876, FY10e EPS-885. Equities on current yield are cheaper than bonds - Equities yield: 10.0%, Bond Yield: 6.5%. This points to extreme pessimism and significant under valuation.
Fall in oil price has reduced risks for India and has improved longer term economic outlook. Over next 3 years, potentially, HDFC AMC expects approximately 30% earnings growth (assuming nil growth in FY10 and 15% CAGR thereafter) which will lead to approximately 50-80% P/E expansion.
How Small Investors Lose Money ?
According to AMFI data, Equity Investments in Mutual Funds FY 2008 at the Peak was INR +49,360 cr. Between October - January 2009 Bottoming INR -1,072 cr. So they have invested at the Peak and Exited at the Bottom :-)
Isn't it easy to say BUY Cheap and SELL HIGH ? Then why aren't you guys BUYING cheap now ? At least small amounts of SIP.
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Published by Webmaster @ 11:45 AM IST.