Category: Mutual Funds Review

This July [2007], officials in the Finance Ministry have made it mandatory for investors taking the mutual fund route to furnish their PAN – Permanent Account Number for even a investment as low as Rs 50. Most of the investment these days is coming from smaller cities and towns where people are taking the SIP route to build their nest.

So what happens now ? After July-2007, deadline your fresh investments will be subject to providing PAN. Few months later, even investors with inactive folios where they hold Mutual Fund units will also have to furnish PAN or else their units will be frozen. Recall what happened to DEMAT accounts where PAN was not furnished.

India currently has 3% of it its investors in Mutual Funds, i.e 30 Million or 3 crore.

ICICI Securities Research Team is asking investors to subscribe to the New Fund Offering of SBI Infrastructure Fund.

• Close-ended growth Fund with 3 – year tenor
• NFO closes on 8th June 2007
• Scheme reopens for continuous repurchase from 6th July 2007
• Load Structure (during the NFO) 1)Entry load will not be charged. 2)Exit load – Nil. (To be equivalent to the unamortized initial issue expenses outstanding on a daily basis in the form of repurchase NAV)
• Minimum investment – Rs. 5000 and in multiples of Rs. 1
• NAV and repurchase NAV to be disclosed on a daily basis
• Dividend and Growth options available. Payout facility is available only during the close-ended tenor of the scheme
• Dividends will be completely tax-free. Long term capital gains to be completely tax-free. Short term capital gains to be taxed at 10% (plus applicable surcharge and cess)
• Automatic conversion into open-ended scheme on maturity.
• SIP/SWP/ STP facilities will be made available only after the scheme goes open-ended.

We personally don’t recommend long term investors to take exposure in one particular sector and prefer to take Diversified Fund route.

Reliance, ICICI and Lotus Mutual funds have reduced the minimum SIP investment to Rs 100 to enable more Indians to save and invest in the Indian Equities, one of the best asset class in the world. The number of investors investing through SIP route in India is mere 1.2 Million.

So you can now contribute Rs 100 as SIP amount to any of the Reliance / ICICI or Lotus AMC managed funds. I will be really happy if they let us invest Rs 100 on every trading day to take advantage of the volatile markets.

We had recommended SIP investment in Reliance Growth Fund. Though the past 12 months have seen severe volatility, we advise our readers to continue to invest by means of SIP in this fund. After our recommendation, this Fund won the prestigious Lipper Award.

Reliance Growth fund continues to maintain a mixed blend of Mid Caps and Large caps suitable for portfolio growth and is very aggressively managed fund by Sr. Fund Manager, Sunil Singhania.
See the SIP returns chart. Since inception, the fund has delivered 38.69% yield against the benchmark returns of mere 19.16%. Happy Investing!!!

Tags: Reliance, Mutual Fund, Lipper, Invest

Here is the latest Update of HDFC Mutual Fund SIP which we have been recommending to our investors. It is TRUE that in the past one year the returns have been less than 5%. However, serious long term investors who want to create wealth must stick to disciplined SIP investments. We recommend the following HDFC Funds and we are also investing in these funds by SIP route.

Our goal is to create long term wealth by means of equity investing, [We believe Equity is the best asset class for long term investors]. Even when we book profits in recently listed IPOs, we invest the Tax-free profits into these funds.

SIP has always outperformed Lump sum investment. SIP investments updated on March-30-2007.

• HDFC Equity Fund Growth
• HDFC Top 200 Fund Growth
• HDFC Long Term Advantage Fund Growth
• HDFC Tax Saver Fund Growth

Happy investing. Never ever stop your SIP in Panic. Just invest!!!

Tags: SIP, Mutual Funds, Invest, India

ADAG controlled, Reliance Mutual Funds received 6 awards from the prestigious Lippers Inc, a Fund rating agency. Franklin Templeton grabbed 5 awards while HDFC and UTI got 3 each.

Reliance MF said in a statement that it has bagged awards across six sectors for their consistent and outstanding performance across three and five year time periods.

Reliance Growth Fund was named as best equity funds in three-year as well as five-year return categories. You should be proud if you are investing in the same. DalalStreet.Biz Mutual Fund Analyst had recommended investment in Reliance Growth Fund SIP Plan.