Investing in Mutual Funds – Know your charges.

When investing in mutual funds – know your charges, so you will not be caught off guard while calculating the total returns on your investments. Investors in Mutual Funds do always consider various fund related factors like Manager, performance, ratings, returns etc prior to making a decision. However, one aspect that few look into are the charges paid to make these investments.

All investors investing in mutual funds conduct some background checks on schemes and fund houses they invest their hard earned money into. Is the Fund manager experienced, are the returns consistent etc, are few aspects which are considered. As this factors do have a major bearing on the overall performance of the money that you have invested. The lesser known fact is that recently many banks and other Mutual Fund agents have started charging their customers through what are called are Transaction Charges or Transaction Fees.

Recent mandate by SEBI, a government body which regulates the Indian Mutual Fund Industry allowed agents/brokers to charge the every new customers Rs.150 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes new Systematic Investment Plan investors as well.
Existing investors of Mutual Fund schemes are charged. They also need to pay Rs.100 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes existing Systematic Investment Plan investors as well provided the total commitment towards SIP is for Rs.10000/- or above.
In respect of systematic investment plan (SIP only), a transaction charge of Rs.100/- is payable in 4 equal instalments, starting from the 2nd to the 5th instalment. So read your statements to know your charges of Rs.25 from your 2nd to 5th SIP instalment. These charges would be deducted from your total amount invested by the Fund in which you are investing then the balance would be your net investment in the scheme. So look out for those innocuous charges ranging from Rs.25 to Rs.150 in your next Mutual Fund Account Statement. If you do notice those charges on your Mutual Fund Account Statement, you know you read it first here at OnlineMF.

MF CHARGES

MUTUAL FUND TRANSACTION CHARGES

I hate these charges, we all do. So is there a solution?

Not all investors would be charged these fees. If your total investments do not go beyond Rs.10000, you would be not charged. SEBI has also granted an option for agents/brokers to not charge their customers for these fees. Many have opted not to charge these fees to their customers. Brokers can decide category of schemes they intend to charge depending on the same, investors can opt for such brokers. So next time you can ask your broker about these fees and can decide knowing if it’s worth opting for it.

Final Word

The Mutual Fund industry has some of the lowest charges paid by investors compared to other products available in the market. The Mutual Fund government regulator is very proactive towards the interest of the investors. The Indian Mutual Fund Industry strives to portray transparency to its investors to the extent possible. It’s always good to be an informed investor, however, not making an investment would be a bigger mistake. So next time you invest in mutual fund, keep in mind the these charges, do not be much concerned and go ahead with your planned investments in the Funds to suit your goals.

Wishing you all Happy Investing In Mutual Funds.
© OnlineMF
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How to file a mutual fund complaint with SEBI?

Often many investors ask how to file a mutual fund complaint with SEBI after their numerous attempts to resolve their mutual fund related queries. OnlineMF tries to explain to the entire process of filing a online mutual fund complaint form with the mutual fund regulator SEBI.

USE THIS AS THE LAST MEANS OF PROBLEM SOLUTION

All investors should knock on the doors of the regular SEBI only after all the other means of finding a resolution for investor complains are not met. Mutual Fund Complaints should be addressed with the respective Mutual fund companies before you adopt this route.

SEBI INVESTOR COMPLAINT WEBSITE http://scores.gov.in/default.aspx

SEBI SCORES (SEBI Complaints Redress System)

 
ONLINE MODE

1] Log on to SEBI SCORES (SEBI Complaints Redress System)

http://scores.gov.in/default.aspx

2] Select Complaint Registration under Investor Corner

Update all the below information like

  • Name of Investor  :  
  • Complaint Lodged by  :  
  • Address of Correspondence of  Investor  :    
  • City/Location  :  
  • Pin Code  :  
  • State/UT :
  • PAN of Investor  :  
  • Phone Number  :  
  • Mobile Number (For receiving SMS)
  • E-mail Address of Investor 

Ensure the highlighted information are accurately filled up in your mutual fund complain to SEBI.

 3] Select Appropriate Category

  • Listed Companies/ Registrars & Transfer Agents
  • Brokers/Stock Exchanges
  • Depository Participants/Depository
  • Mutual Funds
  • Other Entities
  • Information to SEBI

Click on Mutual Fund Category to register investor complaint

4] Complete the Online Complaint form

Selected Category :   Mutual Funds 

*Complaint Against  : 

*Nature of Complaint Related to  :  MutualFunds 

 Select the appropriate nature of your complaint for any of the below options:

  •  Delay/Non-receipt of dividend on Units 
  •  Delay/Non-receipt of Interest on delayed payment of Dividend
  •  Delay/Non-receipt of Redemption Proceeds 
  •  Delay/Non-receipt of Interest on delayed payment of Redemption
  •  Non-receipt of Statement of Account/Unit Certificate 
  •  Discrepancy in Statement of Account 
  •  Non receipt of Annual Report/ Abridged Summary
  •  Wrong Switch between Schemes
  •  Unauthorised Switch between schemes
  •  Deviation from scheme attributes
  •  Wrong or excess charges/load
  •  Non updation of changes viz.address, PAN, bank details, nomination, etc
  •  Non receipt of Annual Account
  •  Others 

5] Select the mode of your Mutual Fund holdings

  •  Physical Mode
  •  Demat Mode

6] Complete the image verification

Verify and complete the image verification by tying in the numbers/alphabets provided in the image into the comments box in the same format.

7] Click on Submit Button

Once you complete the online mutual fund complaint you would be provided with a registration number. Do remember to store carefully this complaint registration number for future reference.

An email is generated instantaneously acknowledging the receipt of the complaint and allotting a unique complaint registration number for future reference and tracking.

PHYSICAL /OFFLINE MUTUAL FUND COMPLAINT

If you are facing issues registering your online mutual fund complaint form OR you do not have access to Computer or Internet Connection you can register your complain by calling on the phone number of SEBI at 022-26449188/26449199. Investors can also send the complaint physically by post to any of the Offices of SEBI.

 USEFUL MUTUAL FUND RELATED INFORMATION

SEBI TOLL-FREE PHONE NUMBER

SEBI helpline Number: Use the SEBI Mutual Fund helpline number 1800-22-7575 and 1800-266-7575 for your investor related questions.

SEBI INVESTOR’S WEBSITE

Before you register mutual fund complaints to SEBI check the investor website for more details. SEBI INVESTOR’S WEBSITE http://investor.sebi.gov.in

Back to Basics Series II : This article is in response to SEBI’s Public Appeal for following the right approach to Mutual Fund Industry.

SEBI Investor Education
©OnlineMF

Invest in China with just Rs 10,000 with Hang Seng BeEs ETF

After the mad rush for Gold ETF Asset Management companies were actively scouting go the next big idea to launch to seek cover for their dwindling Assets Under Management(AUM). Accordingly, Benchmark Mutual Fund will be launching an ETF based on the Hang Seng Index. Hang Seng BeEs as it is called would be listed on the NSE on Monday , 15th February. The Purpose of this EFT is to enable investors track Hang Seng Live and reveal hang seng index chart on real-time basis.

[picapp align=”left” wrap=”true” link=”term=hong+kong+stock+exchange&iid=3768841″ src=”3/0/c/a/Life_In_Hong_803f.jpg?adImageId=10248664&imageId=3768841″ width=”234″ height=”350″ /]

[picapp align=”left” wrap=”true” link=”term=hong+kong+stock+exchange&iid=5586509″ src=”3/3/9/4/Industrial_and_Commercial_d75b.jpg?adImageId=10248698&imageId=5586509″ width=”234″ height=”351″ /]

[picapp align=”left” wrap=”true” link=”term=hong+kong+stock+exchange&iid=5586507″ src=”4/3/d/a/Industrial_and_Commercial_1022.jpg?adImageId=10248712&imageId=5586507″ width=”234″ height=”351″ /]

Benchmark AMC and its Niche:

Benchmark has carved a niche for itself in the Indian Mutual Fund Industry by successfully launching first ETF in Asia(not only India) Nifty BeEs. It is also credited with launching the Gold ETF first time in India. Shariah based ETF products were first introduced to the Indian Mutual Fund Investors by Benchmark Asset Management Company.

Trade on Hang Seng Stock Exchange:

Hang Seng BeEs would be the first ETF to introduce Indian Stock Market Investors to a closed market like China. India and China are two of the fastest growing economies in the world. Indian investors would largely benefit by the diversification offered with the launch of hang seng index based ETF. Hang Seng Stock Exchange is one of the largest exchanges in the world. Hang Seng Index Charts, Hang Seng Futures, Hang Seng Historical Data can also be now be determined and tracked on a real-time basis.

Hang Seng Timings:

Hang Seng BEnchmark Exchange traded Scheme(BeEs) will trade during the Hong Stock Exchange Timings. The Heng Seng Stock Exchange closes two and half hours prior to the NSE Closing timings. The corresponding time would be between 7.30 am to 1.30 pm Indian Standard Time. The timings are better suited to Indian Stock Market traders and investors alike, compared to US Markets and European market timings. The NAV for the Scheme would also include the currency fluctuation.

Taxation Rules for Trading in Foreign ETF:

The ETF are treated as Debt funds for tax treatment and would therefore attract tax rules which are currently applicable to the non-equity funds in India. The Hang Seng Index currently comprises of 42 Stocks and is the benchmark for the China ETF in India. Rs 10,000 is all you need for your ticket to China: The units are available for a minimum amount of just Rs 10,000. To cater to large masses and enable wider market participation the entry amount is kept at Rs 10000 only. All Major Global Corporations have invested billions of dollars in the Chinese Economy. So why Indian Investor should not join the race and participate to diversify their existing portfolios?

Charges for trading on China ETF:

There are no charges levied by the AMC in form of NIL entry load and NIL exit load for buying and selling on the NSE. A minor bid/ask spread, brokerage for trading and needs to be borne by the investor. Hitherto, only High Net worth Individuals was active in using these innovative financial products. In future retail investors should add such products to their overall portfolio diversification strategy.

SBI Magnum Taxgain Scheme 1993 dividend for 2009 has been announced by SBI MF

SBI Magnum Taxgain Scheme 1993 dividend for 2009 has been announced by SBI MF. With over 17 lakh investors and a stable track-record of over 15-years SBI Magnum TaxGain ELSS Scheme 1993 has proved to be one of the most consistent performer amongst the tax saving schemes category in the Indian Mutual Fund Industry. See previous dividends declared

Dividend for 2009

[picapp src=”0217/017df38f-734f-4135-ae72-c40a105310d0.jpg?adImageId=4661987&imageId=220756″ width=”380″ height=”253″ /]

Magnum TaxGain ELSS Scheme : 28%

Magnum Tax Gain ELSS has generated excellent returns over past 15 years and continues to provide retail investors a profitable avenue with constant stream of fat dividends. The SBI TaxGain Equity Linked Savings Scheme is also one of the largest equity scheme in India with corpus of over 3,262 Crores (Download Magnum TaxGain April 2009 Fact Sheet).  SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

After an long delay(and nil dividend in the previous financial year) it had become almost imperative for the fund manager/investment managers at SBI MF to declared a dividend no matter how small the dividend amount be.  The scheme’s rivals like HDFC TaxSaver and HDFC Long Term Advantage Fund had already declared decent and timely dividend income in the past. Irony of dividends in falling markets is that, it lowers already low NAV.

Dividend Income Bigger than Annual Bonus/Increment:

[picapp align="left" wrap="true" link="term=bank+of+india&iid=7279835" src="3/2/b/5/Closeup_of_rolled_49fe.jpg?adImageId=10249067&imageId=7279835" width="234" height="234" /]

In fact, for many Salaried Investors of this scheme, due to economic downturn the Dividend Income received from SBI Magnum Taxgain has ironically outstripped their annual bonus/incentive and annual increment incomes in their current profession.

The record date for dividend is 29-May-2009. Post declaration of the dividend the NAV of the scheme will fall to the extent of the dividend payout. Check NAV of the scheme.

Related Posts Only (manually created not automatically generated)

Do not go chasing ads, listen to the your needs (Part-1)

Often we come across well drafted advertisements and commercials at the most innocuous of all places. Many of us end up falling prey to some smart ad-men’s near perfect product or advertisement placement.I came across one such advertisement as well. The Ad read ” Save Tax of Rs 42,990 on investments of Rs 1 lacs** “.  The Mutual fund advertisement further explained the benefits of investing in that fund which read as below:

Tax savings: Tax benefits up to Rs 33,990/-* on investment of Rs 1 lac u/s 80c of the Income tax Act, 1961.

Free Life Insurance Cover: 5 times your investment, subject to a minimum cover of Rs 10,000 and a maximum of Rs 5,00,000. Premium on Rs 1 lac cover for 3 yrs would be approximately Rs 9,000 which investors might save.

Capital Growth: ELSS as a medium to long term investment vehicle provides scope for capital growth.

Potential savings on Rs 1 lac investment in ELSS scheme is Rs 42,990.

**Tax saving of Rs 33,990 + Rs 9,000 Life Insurance Premium

*Assuming the investor falls into highest tax bracket and surcharge is applicable.

The advertisement is right in its claims and makes no false promises, mis-selling or overt statements.

Investors would definitely benefit from investments made in such ELSS Tax Saving schemes, however, an investor needs to understand that one of the major highlights of this scheme which is displayed in bold letters above is the charm of saving Rs 42,990.

Do all investors end up saving Rs 42,990?

Simple answer is NO.

Not all investors fall in the highest tax bracket, so savings, for investors in different tax brackets would differ. So it becomes imperative for investors not to chase smart ads and inquire about tax or savings benefits to which accrue to him.

Investors who invest in ELSS schemes are traditionally retail investors who park their money in such scheme as they offer reasonable returns with the shortest possible lock-in period.The government has made a host of individual savings ‘tax-deductible’ under one umbrella called Section 80C and a simple new rule has emerged – if you invest up to Rs. 1 lac in a tax saving instrument or even a combination of them, you effectively reduce your taxable income by up to Rs. 1 lac to save up to Rs. 33,990 in taxes (including applicable surcharge and education cess).

But, you don’t have to invest an entire lac. For example, if your taxable income is Rs. 1,70,000, you would need to invest just Rs. 20,000 in a tax saver to reduce your taxable income to Rs. 1,50,000 and drop your tax to zero!

Below is an indicative table provided for better understanding of tax brackets and applicable effective saving on ELSS schemes for individuals within respective income slabs.

Your annual taxable income (Rs) Your applicable tax before investment (Rs) Optimal amount to invest (Rs) Your ‘new’ taxable income (Rs) Your applicable tax after investment (Rs) Your savings (Rs)
1,70,000 2,000 20,000 1,50,000 0 2,000
1,90,000 4,000 40,000 1,50,000 0 4,000
2,50,000 10,000 1,00,000 1,50,000 0 10,000
3,00,000 15,000 1,00,000 2,00,000 5,000 10,000
4,00,000 35,000 1,00,000 3,00,000 15,000 20,000
5,00,000 55,000 1,00,000 4,00,000 35,000 20,000
7,00,000 1,15,000 1,00,000 6,00,000 85,000 30,000
9,00,000 1,75,000 1,00,000 8,00,000 1,45,000 30,000

SEBI ACTS FINALLY, in interest of Retail Investor.

BUT IS IT TOO LITTLE TOO LATE?

SEBI is now mulling the idea for separating the corporate investor from retail investors in every scheme of mutual funds, so that latter does not suffer at the expense for former. Even, if it suffers it will now come at a cost.

Retail investors until now always had to pay a higher entry load compared to Corporate Investors. The exit loads were also biased to favor the Corporate Investor more than retail investor. It was easier for a Corporate investor to enter and exit a Mutual Fund scheme at minimal transaction costs. However, that lack of barriers came at the expense of retail investors.

Many companies park their Working Capital and short term funds in various mutual fund schemes to seek higher returns for otherwise idle money.

Corporate Investors

Corporate Investors until now had it easy while investing in Mutual Funds of major fund houses. They were offered parking of their idle funds at huge concessional rates compared to retail investor.

Corporates could invest and withdraw funds with ease providing them the ample liquidity, which they relished upon.

Corporate Investors were also provided extra benefits in terms of ease of withdrawal with negligible or zero penalty for early withdrawal of funds.

With the advent for ECS, RTGS and various quick settlement facilities the turnaround time required to process the withdrawals of Corporate funds also reduced considerably. It only made Corporate Investor pour in more money to their existing investments.

RTGS provided ample opportunity to them to receive redemption funds within shortest possible time.

So what was initially an investment vehicle for idle funds could have also evolved into an easy mechanism for producing higher returns with minimal transaction costs.

Retail Investors

It was easier for a Corporate investor to enter and exit a Mutual Fund scheme at minimal transaction costs. However, that lack of barriers came at the expense of retail investors.

They were charged huge sums for early withdrawals compared to corporate Investor. When a Corporate investor exits a scheme (redemption), then the securities held by the fund have to be sold to pay the Corporate Investor in Cash. This results in erosion of NAV. It also results in selling costs which are bourne by the remaining customers (existing unit holders).

Since the barriers (costs as well as time required to encash) to exit a scheme are so less that Corporate find it simple route to make quick buck and exit.

All through this downturn in assets of all major fund houses, retail investor has shown his faith in the abilities of money managers. They have not panicked and not followed a herd mentality unlike Corporates. A Major portion of 47,000 Crs of outflows in October’s AUM has been in Fixed Maturity Plans which are favorites of the Corporate Investors.

Very few retail investors might have redeemed their portfolios in such harsh conditions.

In fact they might have stopped believing in the advices and tips of their favorite Grocery Shop guy who sells less Grocery than stock tips.

In fact during such times retail investors turn to proven records of top Money Managers and trust their instincts more than Grocery Shop advisor with stock TIPS.

Fund Houses (Asset Management Companies)

Even for fund houses it was easy money at cheap rates and in huge amounts. It was a win-win situation for both Corporates and Fund houses. The lone suffer in this party was the gullible and naive retail investor.

It is easy for Fund houses to collect Rs 100 from Single Corporate Investor than to collect Rs 5 from 20 retail investor located at different locations.

The Corporate Investor fulfilled the insatiable desire of marketing and money managers to pump up their AUM. So long the party lasted everybody was cheering. Now the same corporate investor has exited various schemes which were designed for making their life easier and returns higher. The money managers could not keep pace with double whammy of erosion of NAV along with outflows of same easy money.

Many fund houses struggled to keep pace with redemptions. Some had to knock on the doors for the regulators.

Last thing you would wish to do as a fund house.

SEBI

SEBI had all the key records, data with it all along.

This practice was on since many years. Just that the regulator has now chosen to act upon it now, is not surprising.

SEBI at times acts much like the cops in movies which arrive on the scene after the crime has been committed.

SEBI on its part needs to be more proactive and have a firm grip on the nerve of industry. It may also be the case that it does not have the necessary manpower and required expertise to cater to the huge surge in the Indian Mutual Fund Industry.

The regulator woke up after close to 47,000 Crs (See October AUM figures) of erosion and withdraws of funds from the Industry.

However, to be fair to the regulator many people do not like regulatory interference during uptrend in the markets. It’s only during downtrends that regulators are respected and existing regulations are adhered to.

If regulators intervene during uptrend in the markets they are viewed as unnecessary interference and supervision.

SEBI has decided to implement either

Option 1:

Same entry fee for both Corporate and Retail Investor OR

Option 2:

Create separate investor classes and manage both separately within main fund so that both the parties are firewalled.

Onlinemutualfund (OMF) recommends the Option 2 and hopes SEBI and adopts it.

Second option, is to be more reasonable and sound, as it keeps all the players happy.

Hope right decisions are made and retail investors are again a happy lot.

Tell us about your opinion, views, and comments, remember it counts.

Gold ETF beats it all …Again(October Review)

A Review of performance of GOLD ETF based on earlier post Gold ETF beats it all

Gold Exchange Traded funds have performed exceptionally well since their inception in India. One of the primary reasons attributed to it could be inherent bias of Indians towards gold as a precious metal. However, recently Gold is receiving a fair share for investment purposes as well. In times of economic and financial turmoil it is a safe heaven for many.

[picapp align="left" wrap="true" link="term=golden&iid=308593" src="0305/0000305315.jpg?adImageId=10249298&imageId=308593" width="337" height="506" /]

Gold EFT’s which are primarily traded on NSE (see codes) have outperformed many local and International equity indices(BSE, NIFTY, Dow Jones, Nikkei, Hang Seng).
At a time when equities valuations around the world were getting beaten down Gold ETF has provided investors promising returns of more than 15%. Comparing this returns to double digit negative returns of equity indices, surely makes a case for many investors to diversify their existing portfolios and include any of the available Gold ETF’s (BeEs, Kotak, Quantum, Reliance, and UTI)

Listed below is a comparison of returns of Gold ETF with various indices around the world. The NAV for 29-Oct-2008 is considered for comparison. Some data is proportionately adjusted for comparative study.

Scheme Name 1 mth % 3 mths % 6 mths % 1 yr % 3 yrs % NAV Category Structure
UTI Gold ETF (10.52) (8.45) 1.19 16.39 NA 1164.88 ETF Open Ended
Gold BeES (10.51) (8.46) 1.18 16.32 NA 1162.31 ETF Open Ended
Kotak Gold ETF (10.52) (8.44) 1.15 16.29 NA 1165.41 ETF Open Ended
Quantum Gold Fund – Growth (10.51) (8.35) 1.31 NA NA 580.25 ETF Open Ended
Reliance Gold ETF – Dividend (11.07) (9.48) (0.01) NA NA 1136.79 ETF Open Ended
Average performance of similar category funds (10.63) (8.64) 0.96 16.33 NA 1041.93
S&P Nifty (32.64) (38.03) (47.25) (52.63) 5.04
BSE Sensex (31.25) (37.22) (47.06) (52.90) 5.43
Nasdaq (7.32) (5.95) 0.78 (12.73) 1.18
FTSE (2.13) (6.46) (6.23) (14.07) 0.26
Dow Jones (1.89) (5.93) (5.68) (14.03) 2.25
Strait Times (8.74) (14.88) (11.90) (26.62) 3.40
KLSE (6.68) (14.81) (15.30) (18.77) 4.34
HangSeng (8.80) (12.73) (11.21) (8.07) 12.00
Kospi (8.36) (17.24) (12.81) (16.68) 11.10
MSCI World Index 7.41 2.33 8.16 18.73 16.22
Nikkei (6.06) (6.66) (7.57) (21.20) 0.90
*Note:- Returns calculated for less than 1 year are Absolute returns and returns calculated for more than 1 year are compounded annualized.

Golden Quotes:

James Grant : “Nothing beats a little cash in a bear market and the oldest form of cash is gold.”

Karl Marx : “Although gold and silver are not by nature money, money is by nature gold and silver.”

At the end of the day, bullion is more important than the billion.

Related Posts Only (manually created not automatically generated, thankfully)

AAuM as on 30 September 2008

 

 

Sr No.

Mutual Fund Name

Average AUM For The Month

September

August

July

1

Reliance Mutual Fund

8649446

8861646

8456391

2

HDFC Mutual Fund

5199829

5385863

5075203

3

ICICI Prudential Mutual Fund

4980352

5312445

5516066

4

UTI Mutual Fund

4462319

4694732

4611991

5

Birla Sun Life Mutual Fund

3759536

3820196

3749730

6

SBI Mutual Fund

2924777

2957678

2915112

7

Franklin Templeton Mutual Fund

2856877

2793603

2444095

8

Tata Mutual Fund

2077775

2119726

2044342

9

Kotak Mahindra Mutual Fund

1906501

1867594

1878210

10

DSP Merrill Lynch Mutual Fund

1851211

1941856

1948293

11

LIC Mutual Fund

1616841

1715323

1749913

12

HSBC Mutual Fund

1553282

1690057

1638527

13

Sundaram BNP Paribas Mutual Fund

1261461

1216215

1189826

14

IDFC Mutual Fund

1187192

1227245

1174181

15

Deutsche Mutual Fund

1169367

1146505

1079246

16

JM Financial Mutual Fund

1044691

1198759

1104989

17

PRINCIPAL Mutual Fund

994428

1105854

1135923

18

ABN AMRO Mutual Fund

912347

853216

780266

19

Lotus India Mutual Fund

793707

823475

783075

20

Fidelity Mutual Fund

770613

767706

746382

21

ING Mutual Fund

663614

711353

709057

22

Canara Robeco Mutual Fund

600626

490239

457617

23

Benchmark Mutual Fund

390466

382564

297457

24

AIG Global Investment MF

302569

343938

351317

25

Morgan Stanley Mutual Fund

284485

299756

281399

26

JPMorgan Mutual Fund

240029

272281

305355

27

Mirae Asset Mutual Fund

230983

256327

254600

28

DBS Chola Mutual Fund

160341

161162

185311

29

Bharti AXA Mutual Fund

47049

40844

22911

30

Taurus Mutual Fund

40815

37399

0

31

Edelweiss Mutual Fund

30195

0

0

32

Escorts Mutual Fund

21127

17323

17673

33

Sahara Mutual Fund

18154

17900

17482

34

Quantum Mutual Fund

6943

7140

6568

35

Baroda Pioneer Mutual Fund

5564

6105

5562

36

Goldman Sachs Mutual Fund

0

0

0

37

Religare AEGON Mutual Fund

0

0

0

Grand Total

53015512

54544025

52934068

NAV SBI MAGNUM TAXGAIN SCHEME

HISTORICAL NAV SBI MAGNUM TAXGAIN SCHEME

PERIOD 1-JAN-2008 TO 10-SEP-2008.

SBI MAGNUM TAXGAIN SCHEME NAV Jan – Sep 2008

Related Posts Only (manually created not automatically generated)

Principal MF

How to buy Gold ETF?

How to buy Gold ETF?

Listed below is a simple way to own a Gold ETF.

Gold EFT are fast becoming a rage in India. One reason attributed to its popularity could be its stellar performance in a relatively subdued market conditions.

When first introduced in India, many were skeptical about its relevance and suitability in Indian markets, however increasing volumes and new scheme launches(Quantum, SBI) indicate its growing acceptance in a naive market like India. It is a complex financial instrument. (read EFT F.A.Q).It involves many different entities apart from usual fund managers who manage the scheme. However, its has its own limitations since it is listed on exchanges.

Many people are unaware of ways to buy a GOLD ETF.

You need a Demat account along with broker who is a member of NSE to buy a Gold ETF.

 

Some of the popular brokerage firms like ICICI Direct, HDFC Securities, KOTAK Securities.

Along with traditional brokerage firms like India Infoline, Geojit, IndiaBulls, Sharekhan also offer a demat account with brokerage facilities.

 

Once you have a brokerage account you can buy Gold ETF by placing an order like a normal stock order to buy listed Gold ETF. Most of the ETF are listed only on NSE. Unfortunately, BSE does not have any Gold ETF listed on it.

Additionally codes like be required to be inputted to buy it online or through telephone, as many brokerage firm’s customer care executives are unaware of the codes.

[picapp src=”7/7/9/d/Gold_Price_Hits_de9a.jpg?adImageId=4655057&imageId=5779529″ width=”500″ height=”179″ /]

Benchmark Mutual Fund – Gold Benchmark Exchange Traded Scheme (NSE Symbol: GOLDBEES)

 

See today’s price Nav of Kotak Mutual Fund – Gold Exchange Traded Fund (NSE Symbol: KOTAKGOLD)(See price chart)

 

See today’s price Nav of UTI Mutual Fund – UTI Gold Exchange Traded Fund (NSE Symbol: GOLDSHARE)

 

See today’s price Nav of Reliance Mutual Fund – Gold Exchange Traded Fund (NSE Symbol: RELGOLD)(See price chart)

 

Quantum Gold Fund – Exchange Traded Fund (ETF) (NSE Symbol: QGOLDHALF)

Interesingly, Quantum Gold is also available for 0.5 grams(1/2 gram) of gold. Now that’s truly a product for the masses since the pricing is half of other available Gold ETF.

Apart from Gold ETF, some other mutual funds are also available which invest in different gold mining companies and international gold funds as well.

 

Funds like DSP ML World Gold and AIG Gold Fund have also fared better than indicative markets indices.

 

Since these funds(DSP World Gold, AIG Gold) are not ETF’s, no demat account is required and can be purchased like any other mutual fund schemes.

Update: January, 07, 2009.
Now Kotak Securites has launched a facility where investors can invest in Gold ETF on a regular basis.
These facility in similar to SIP in GOLD ETF, or GOLD ETF SIP.
Kindly comment in case any other brokerage has similar facility.

AAuM as on 31 July 2008

AAuM as on 31 July 2008

Assets Under Management (AUM) as at the end of Jul-2008 (Rs in Lakhs)
SR No Mutual Fund Name Average AUM For The Month
July June Change(%)
1 Reliance Mutual Fund 8456391 9081345 -6.88%
2 ICICI Prudential Mutual Fund 5516066 5947359 -7.25%
3 HDFC Mutual Fund 5075203 5271081 -3.72%
4 UTI Mutual Fund 4611991 5077057 -9.16%
5 Birla Sun Life Mutual Fund 3749730 4107524 -8.71%
6 SBI Mutual Fund 2915112 3013240 -3.26%
7 Franklin Templeton Mutual Fund 2444095 2474206 -1.22%
8 Tata Mutual Fund 2044342 2385289 -14.29%
9 DSP Merrill Lynch Mutual Fund 1948293 2054042 -5.15%
10 Kotak Mahindra Mutual Fund 1878210 2118330 -11.34%
11 LIC Mutual Fund 1749913 1863347 -6.09%
12 HSBC Mutual Fund 1638527 1735731 -5.60%
13 Sundaram BNP Paribas Mutual Fund 1189826 1284672 -7.38%
14 IDFC Mutual Fund 1174181 1164128 0.86%
15 PRINCIPAL Mutual Fund 1135923 1419921 -20.00%
16 JM Financial Mutual Fund 1104989 1165515 -5.19%
17 Deutsche Mutual Fund 1079246 1103738 -2.22%
18 Lotus India Mutual Fund 783075 740606.1 5.73%
19 ABN AMRO Mutual Fund 780265.8 679100.5 14.90%
20 Fidelity Mutual Fund 746381.7 810434.4 -7.90%
21 ING Mutual Fund 709056.8 849610.7 -16.54%
22 Canara Robeco Mutual Fund 457617.2 393275.3 16.36%
23 AIG Global Investment Group Mutual Fund 351317.1 380887.5 -7.76%
24 JPMorgan Mutual Fund 305355 265470.3 15.02%
25 Benchmark Mutual Fund 297457.2 264180.8 12.60%
26 Morgan Stanley Mutual Fund 281398.6 311083.5 -9.54%
27 Mirae Asset Mutual Fund 254600.1 243665 4.49%
28 DBS Chola Mutual Fund 185310.9 194078.7 -4.52%
29 Bharti AXA Mutual Fund 22911.41 N/A 0.00%
30 Escorts Mutual Fund 17673.15 16246.73 8.78%
31 Sahara Mutual Fund 17481.97 17600.87 -0.68%
32 Quantum Mutual Fund 6567.62 6661.66 -1.41%
33 Baroda Pioneer Mutual Fund 5561.89 5953.67 -6.58%
34 Edelweiss Mutual Fund N/A N/A 0.00%
35 Taurus Mutual Fund N/A 29896.08 0.00%
Total 52934068 56475276 -6.27%

Related Posts Only (manually created not automatically generated)

DSP World Gold Fund-Returns Analysis

DSP Merrill Lynch World Gold Fund

An open-ended fund of funds scheme, investing in gold mining companies through an international fund, with the primary objective of seeking capital appreciation by investing predominantly in units of Merrill Lynch International Investment Funds – World Gold Fund (MLIIF –WGF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus.

Returns as on 15-Jul-2008

Period For Period less than 1 Year – Absolute Return
World Gold Fund FTSE Gold Mines (CAP) Index
Since Inception 51.49 % 36.42 %

[picapp src=”0244/6c108fbf-3b66-4d8b-8293-11f929b5a34c.jpg?adImageId=4660297&imageId=248322″ width=”234″ height=”234″ /]

Past performance may or may not be sustained in the future and should not be used as a basis for comparison with other investments.

The FTSE Gold Mines (CAP) Index is the adopted benchmark of the scheme. The value of the index as on 15-Jul-2008 was as follows:

FTSE Gold Mines (CAP) Index : 142185.2

The NAV as on 15-Jul-2008 was Rs 15.1490

‘NA’ indicates Non-availability of Data for the specific period.

Note: As per the SEBI standards for performance reporting, the “since inception” returns are calculated on Rs. 10/- invested at inception. For this purpose the inception date is deemed to be the date of allotment, i.e. 14-September-2007.

DSP Merrill Lynch World Gold Fund

DSP Merrill Lynch World Gold Fund

An open-ended fund of funds scheme, investing in gold mining companies through an international fund, with the primary objective of seeking capital appreciation by investing predominantly in units of Merrill Lynch International Investment Funds – World Gold Fund (MLIIF –WGF). The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus.

Plans Minimum Investment
• Regular • Regular – Rs 5000
• SIP – Rs 1000 (min 12 installments)
Options Minimum Additional Purchase
• Growth
• Dividend – Payout
Reinvest
• Regular – Rs. 1000
Entry Load Exit Load
Plan % Load Investment Plan % Load Holding Period
Regular 2.25% < Rs. 5 crores Regular* 1% < 6 months
Nil Rs. 5 crores 0.5% 6 months < 12 months
Nil 12 months
SIP 1% SIP 1.25% < 2 years
Nil 2 years
*No entry load on direct applications i.e. applications not routed through an agent/distributor, with effect from January 4, 2008.
*Exit load is not applicable in the case of switch out into DSP Merrill Lynch World Gold Fund and any open ended equity oriented scheme/plan of the Fund (other than DSP Merrill Lynch Balanced Fund)

Indicative Asset Allocation

Under normal circumstances, it is anticipated that the asset allocation shall be as follows:

Instrument Indicative Allocation (% of Corpus) Risk Profile
Units of MLIIF-WGF or other similar overseas mutual fund scheme(s) 90% – 100% High
Money market securities and/or units of money market/liquid schemes of DSP Merrill Lynch Mutual Fund 0% – 10% Low to Medium

Investor Benefits & General Services:

STP, SWP, Nomination & Direct Deposit Application facilities available, subject to applicable conditions as per the Offer Document Redemption proceeds issued normally within 5 Business Days Declaration of NAV on all Business Days Sale and Redemption of units on all Business Days at Purchase Price and Redemption Price respectively Cut Off Time for Subscription, Redemption and Switching : 3.00 p.m.

AS ON 30th JUNE 2008
Top 10 Sectors Top 10 Stocks
Industry % to Net Assets Name of Instrument % to Net Assets
Gold 76.70% Newcrest Mining 7.90%
Platinum 11.30% Barrick Gold 6.90%
Silver/ Gold 8.90% Kinross Gold 6.60%
Cash 2.30% Impala 5.50%
Diamonds 0.80% Minas Buenaventura 5.40%
INDS Penoles 4.10%
Goldcorp 5.40%
Lihir Gold 4.60%
Agnico Eagle Mines 4.00%
Newmont Mining 4.00%

Related Posts

DSP Merrill Lynch Natural Resources Fund

DSP Merill Lynch Launches World Gold Fund

Reliance SIP+Insure Forms Downloads

Kindly find the link to download forms for Reliance SIP+Insure

Reliance SIP+Insure Form Download(<-Click here) (A new window to a file sharing site shall open)

This forms are for No Broker(ARN-Direct) Applications only. In case you have an existing broker and wish to continue with the same kindly do not download this form.

Why not to invest in Reliance SIP+Insure Plan

Listed below are reasons why you should not invest in Reliance SIP+Insure.

7 Reasons for not investing in Reliance SIP+Insure Plan.

1] The type of Insurance is Group Insurance Policy. The cheapest and easiest form of insurance policy available with any insurance company.

2] Only the 1st Holder is insured. So, in case, a couple subscribes to SIP +Insure then only one person can avail of the insurance benefits.

3] The Sum Assured, in case of death is not paid to the nominee, but shall go back to the scheme of the AMC(Reliance Asset Management Company). Remember, the scheme benfits more than the dependents of the deceased in case of death of the holder.

4] Huge exit load of 2% for discontinued SIP. If you agree to pay your SIP for 11 yrs but pay only for 10 long and tiring yrs, still the scheme charges you 2% for the remaining 1 yr which you do not wish to continue.(learn to calculate exit load charges)

5] No insurance upto 90 days (exception to it is accident cases only) , i.e 3 months. In case of death within 3 months, except of accidental deaths, the scheme shall not pay the dependents a penny.

6] The dependents will end up paying the scheme 2% back if the death occurs within 3 months due to reasons other than accidental death.

7] Minimum period of investment is 3 yrs and Rs 2,000 for each installment, i.e totalling to Rs 36,000 for Group insurance worth less than 10 lacs.

There are group insurance polices availables at a very low costs, which can be availed of for insurance requirements. Insurance worth of Rs 10 lacs may or may not be sufficient for your entire family’s needs.

The Exit loads are relatively very high even if investor is paying his SIP for a long period, if he discontinues even 1 day prior, he ends up paying 2% Exit loads.

Sunny Side to life :

SIP is also available without this offer.

Related Posts Only (manually created not automatically generated)

Reliance SIP + Insure

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F.A.Q’s ETF (PART 2)

Exchange Traded Funds (ETF) and its advantages:

Advantages of ETFs

While many investors have similar outlooks, no two are exactly alike. Due to the unique structure of ETFs, all types of investors, whether retail or institutional, long-term or short-term, can use it to their advantage without being at a disadvantage to others. They allow long-term investors to diversify their portfolio at one shot at low cost and insulate them from short-term trading activity due to the unique “in-kind” creation / redemption process. They provide liquidity for investors with a shorter-term horizon as they can trade intra-day and can have quotes near NAV during the course of trading day. As initial investment is low, retail investors find it simple and convenient to buy / sell. They facilitate FIIs, Institutions and Mutual Funds to have easy asset allocation, hedging, equitising cash at a low cost. They enable arbitrageurs to carry out arbitrage between the Cash and the Futures markets at low impact cost.

ETFs provide exposure to an index or a basket of securities that trade on the exchange like a single stock. They offer a number of advantages over traditional open-ended index funds as follows :

* While redemptions of Index fund units takes place at a fixed NAV price (usually end of day), ETFs offer the convenience of intra-day purchase and sale on the Exchange, to take advantage of the prevailing price, which is close to the actual NAV of the scheme at any point in time.

* They provide investors a fund that closely tracks the performance of an index throughout the day with the ability to buy/sell at any time, whereby trading opportunities that arise during a day may be better utilized.

* They are low cost.

* Unlike listed closed-ended funds, which trade at substantial premia or more frequently at discounts to NAV, ETFs are structured in a manner which allows Authorized Participants and Large Institutions to create new units and redeem outstanding units directly with the fund, thereby ensuring that ETFs trade close to their actual NAVs.

* ETFs are like any other index fund, wherein, subscription / redemption of units work on the concept of exchange with underlying securities instead of cash (for large deals).

* Since an ETF is listed on an Exchange, costs of distribution are much lower and the reach is wider. These savings in cost are passed on to the investors in the form of lower costs. Further, the structure helps reduce collection, disbursement and other processing charges.

* ETFs protect long-term investors from inflows and outflows of short-term investors. This is because the fund does not incur extra transaction cost for buying/selling the index shares due to frequent subscriptions and redemptions.

* Tracking error, which is divergence between the NAV of the ETF and the underlying Index, is generally observed to be low as compared to a normal index fund due to lower expenses and the unique in-kind creation / redemption process.

* ETFs are highly flexible and can be used as a tool for gaining instant exposure to the equity markets, equitising cash or for arbitraging between the cash and futures market.

The first ETF in India, “Nifty BeEs (Nifty Benchmark Exchange Traded Scheme) based on S&P CNX Nifty, was launched in January 2002 by Benchmark Mutual Fund. It may be bought and sold like any other stock on NSE. Its symbol on NSE is “NIFTYBEES”.

F.A.Q’s ETF (PART 1)

ETFs are just what their name implies: baskets of securities that are traded, like individual stocks, on an exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.

Most ETFs charge lower annual expenses than index mutual funds. However, as with stocks, one must pay a brokerage to buy and sell ETF units, which can be a significant drawback for those who trade frequently or invest regular sums of money.

They first came into existence in the USA in 1993. It took several years for them to attract public interest. But once they did, the volumes took off with a vengeance. Over the last few years more than $120 billion (as on June 2002) is invested in about 230 ETFs. About 60% of trading volumes on the American Stock Exchange are from ETFs. The most popular ETFs are QQQs (Cubes) based on the Nasdaq-100 Index, SPDRs (Spiders) based on the S&P 500 Index, iSHARES based on MSCI Indices and TRAHK (Tracks) based on the Hang Seng Index. The average daily trading volume in QQQ is around 89 million shares.

Their passive nature is a necessity: the funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund’s holdings.

In essence, ETFs trade like stocks and therefore offer a degree of flexibility unavailable with traditional mutual funds. Specifically, investors can trade ETFs throughout the trading day as in stocks. In comparison, in a traditional mutual fund, investors can purchase units only at the fund’s NAV, which is published at the end of each trading day. In fact, investors cannot purchase ETFs at the closing NAV. This difference gives rise to an important advantage of ETFs over traditional funds: ETFs are immediately tradable and consequently, the risk of price differential between the time of investment and time of trade is substantially less in the case of ETFs.

ETFs are cheaper than traditional mutual funds and index funds in terms of fees. However, while investing in an ETF, an investor pays a commission to the broker. The tracking error of ETFs is generally lower than traditional index funds due to the “in-kind” creation / redemption facility and the low expense ratio. This “in-kind” creation / redemption facility ensures that long-term investors do not suffer at the cost of short-term investor activity.

ETFs can be bought / sold through trading terminals anywhere across the country. Table No. 1 presents a comparative view ETFs vis-à-vis other funds.
ETFs Vs. Open Ended Funds Vs. Close Ended Funds

Parameter Open Ended Fund Closed Ended Fund Exchange Traded Fund

Fund Size Flexible Fixed Flexible

NAV Daily Daily Real Time

Liquidity ProviderFund itself Stock Market Stock Market / Fund itself
Sale Price At NAV plus load, Significant Premium Very close to actual NAV of Scheme
if any / Discount to NAV

Availability Fund itself Through Exchange where listedThrough Exchange where listed / Fund
itself.

Portfolio Disclosure Monthly Monthly Daily/Real-time

Uses Equitising cash – Equitising Cash, Hedging, Arbitrage

Intra-Day Trading Not possible Expensive Possible at low cost

Applications of ETFs

* Efficient Trading : ETFs provide investors a convenient way to gain market exposure viz. an index that trades like a stock. In comparison to a stock, an investment in an ETF index product provides a diversified exposure to the market. Depending on the index, investors may obtain exposure to countries/ markets or sectors.

* Equitising Cash : Investors with idle cash in their portfolios may want to invest in a product tied to a market benchmark like an index as a temporary investment before deciding which stocks to buy or waiting for the right price.

* Managing Cash Flows : Investment managers who see regular inflows and outflows may use ETFs because of their liquidity and their ability to represent the market.

* Diversifying Exposure : If an investor is not sure about which particular stock to buy but likes the overall sector, investing in shares tied to an index or basket of stocks provides diversified exposure and reduces stock specific risk.

* Filling Gaps : ETFs tied to a sector or industry may be used to gain exposure to new and important sectors. Such strategies may also be used to reduce an overweight or increase an underweight sector.

* Shorting or Hedging : Investors who have a negative view on a market segment or specific sector may want to establish a short position to capitalize on that view. ETFs may be sold short against long stock holdings as a hedge against a decline in the market or specific sector.

AAuM as on 30 June 2008

AAuM as on 30 June 2008

Rank AMC AAuM Rs in lacs.
1 Reliance Mutual Fund 9081345.11
2 ICICI Prudential Mutual Fund 5947358.64
3 HDFC Mutual Fund 5271080.51
4 UTI Mutual Fund 5077056.56
5 Birla Sun Life Mutual Fund 4107523.54
6 SBI Mutual Fund 3013240.09
7 Franklin Templeton Mutual Fund 2474206.35
8 Tata Mutual Fund 2385289.12
9 Kotak Mahindra Mutual Fund 2118330.04
10 DSP Merrill Lynch Mutual Fund 2054041.86
11 LIC Mutual Fund 1863346.86
12 HSBC Mutual Fund 1735730.82
13 PRINCIPAL Mutual Fund 1419920.79
14 Sundaram BNP Paribas Mutual Fund 1284672.32
15 JM Financial Mutual Fund 1165515.19
16 IDFC Mutual Fund 1164128.48
17 Deutsche Mutual Fund 1103737.79
18 ING Mutual Fund 849610.65
19 Fidelity Mutual Fund 810434.39
20 Lotus India Mutual Fund 740606.11
21 ABN AMRO Mutual Fund 679100.47
22 Canara Robeco Mutual Fund 393275.34
23 AIG Global Investment Group Mutual Fund 380887.45
24 Morgan Stanley Mutual Fund 311083.45
25 JPMorgan Mutual Fund 265470.28
26 Benchmark Mutual Fund 264180.76
27 Mirae Asset Mutual Fund 243664.98
28 DBS Chola Mutual Fund 194078.69
29 Taurus Mutual Fund 29896.08
30 Sahara Mutual Fund 17600.87
31 Escorts Mutual Fund 16246.73
32 Quantum Mutual Fund 6661.66
33 BOB Mutual Fund 5953.67
34 Bharti AXA Mutual Fund N/A
35 Edelweiss Mutual Fund N/A
Grand Total 56475275.65

We dont need no ULIP’s anymore.

Now various mutual fund houses have introduced Funds with insurance cover. And the product seems to a good match to ULIP. If product such as RELIANCE SIP, Century SIP from Birla MF catch on, the insurance agent might well be history.

Ganpat Bhai is an insurance agent. Be it the wedding of his friend’s daughter or a relative’s friend never misses a chance to sell a unitlinked insurance plan (Ulip) or two. Ganpat Bhai has sold them for years, playing on the twin emotions of fear and greed commonly found in human beings. For those who feared the future, he sold Ulip as insurance. And, for thhose who wanted their money to multiply, he sold them as investments.
Never mind the fear of mis-selling, client profiling which required, he managed to sell same product to all.
Mutual Funds often lost out because Ulip had this liquid-like property, where they took the shape of whatever vessel they were poured into. MF’s were rigid-they were purely investment products and did not provide for worldly happenings such as death.
Then, fund houses suddenly woke up. Take a leaf out of the insurance companies’ book, they started offering plans that offered insurance, too. DejaVu, the life of insurance agents turned into nightmares all of a sudden. The sky high commissions, mis-selling that they were used to all seemed to disappear in thin air.

Reliance SIP and Birla Sun Life Mutual Fund’s Century SIP is the latest in that line. Birla’s SIP is a systematic investment plan (SIP) that is optional. The plan should not be confused with a mutual fund scheme. While a scheme has a specific investment objective, an SIP is just a mode of investment that can be applies to any of the various schemes offered by a fund house. At present, Century SIP will be available on all 18 open-ended equity scheme offered by the fund house.
To participate in this plan, an investor needs to invest a minimum of Rs.1,000 every month. There is no upper limit for this investment. Under this plan, an MF investor will get insurance cover on his life 45 days after paying the first instalment. While some fund house charge a fee for this cover, Birla MF is offering it free of charge. In the first 45 days, only accidental deaths will be compensated.
The cover will be available to the investor till he or she turns 55. So the tenure of the cover under Century SIP will be 55 years minus the current age of the investor.
For an investor aged 40 years and five months, the tenure of the Century SIP insurance cover will be 14 years and seven months. Let’s say an investor starts an SIP of Rs 5,000 per month. If he dies within the first year of paying his instalments, his nominee is eligible for a cover of 19 times the SIP amount- Rs 50,000. If he dies during the second year of SIP payments, the nominee get 50 times the SIP amount as the life cover – Rs2.5 lakh. And if he dies any time in the third year or after that, the nominee gets 100 times the monthly SIP amount Rs5 lakh. Here again, thecover is subject to a maximum of Rs20 lakh.
The cover cannot be claimed if the SIP is discontinued before the completion of three years or if the investor defaults on payments of instalments on two consecutive occasions.
Investor who can afford to set aside at least Rs. 1,000 every month for equity investments can take this offer, depending, of course, on the underlying scheme’s compatibility with your investment goal. Thus, if none of the Birla schemes fits your needs, you should not take one just because it offers free insurance. But if one does, the Century SIP is a good reason to make that switch.
Ganpat Bhai still believes only insurance companies can offer good insurance. But, sooner or later, as the trend catches on, be sure even he will come around to seeing sense.

Factsheets for Month of May 2008

Listed below are factsheets for the month of May 2008.

Reliance Mutual Fund-Factsheet May 2008

HDFC Mutual Fund-Factsheet April 2008

Related Posts Only (manually created not automatically generated)

sbi-magnum-factsheet-mar-2008

MUTUAL FUND ADDRESS AND WEBSITES

NAME AND ADDRESSES OF SEBI REGISTERED MUTUAL FUNDS

1. ABN AMRO Mutual Fund
101, 10th Floor, Sakhar Bhavan
Nariman Point
Mumbai 400 021
TEL : 91-22-5656 3848
FAX : 91-22-5656 3840
Email : v.krishnan@in.abnamro.com

2. Alliance Capital Mutual Fund,
Address for correspondence
C/o. AZB & Partners
Advocates & Solicitors,
Express Towers – 23rd Floor,
Nariman Point, Mumbai – 400 021

3. AIG Global Investment Group Mutual Fund
FCH House, Ground Floor
Peninsula Corporate Park
Ganpatrao Kadam Marg
Lower Parel
Mumbai – 400 013
TEL : 40930000
FAX: 40930077

4. Benchmark Mutual Fund,
405, Raheja Chambers,
213, Free Press Journal Marg,
Nariman Point,
Mumbai – 400 021
TEL : 56512727
FAX : 22003412
WEB : www.benchmarkfunds.com
Email : webmaster@benchmarkfunds.com

5. BOB Mutual Fund,
105, Maker Chamber III,
10th Floor,
Nariman Point,
Mumbai 400 021.
TEL : 2285 2161/2156/2148/2141
FAX :22670203
WEB : www.bobmf.com
Email : bobamc@vsnl.com

6. Birla Mutual Fund
2nd Floor, Ahura Centre,
Tower A,
96 A-D, Mahakali Caves Rd.,
Andheri (East),
Mumbai 400093.
TEL : 56928000
FAX : 56928110
Web: www.birlasunlife.com

7. Bharti AXA Mutual Fund
51, 5th Floor,
Kalpataru Synergy, East Wing,
Vakola, Santacruz (E),
Mumbai 400 055.
TEL : 40479000
FAX : 40479001
Web : www.bhartiaxa-im.com
Email: info@bhartiaxa-im.com

8. Canara Robeco Mutual Fund
Construction House, 4th Floor,
5, Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001.
Tel : 6658 5000 to 5010
Fax 6658 5011 to 5013
WEB : www.canararobeco.com
Email : crmf@canararobeco.com

9. CRB Mutual Fund (Suspended)
Daruwala Mansion, 3rd Floor,
90 Chandanwadi Cross Lane,
Mumbai 400 020.
TEL : 2072719/20
FAX : 2096433

10 DBS Chola Mutual Fund,
World Trade Centre, Centre I,
27th Floor, Unit 1, Cuffe Parade,
Mumbai 400 005.
TEL : 66574000
FAX : 66574004
WEB : www.dbscholamutualfund.com
Email :ccamcmum@chola.murugappa.com

11 Deutsche Mutual Fund
2nd Floor, 222, Kodak House,
Dr. D. N. Road,
Mumbai 400 001.
TEL : 22072211
FAX : 22074411
WEB : http://www.deutschemutual.com
Email : deutsche.mutual@db.com

12 DSP Merrill Lynch Mutual Fund,
Tulsiani Chambers,
West Wing, 11th Floor,
Nariman Point,
Mumbai 400 021.
TEL : 56578000
FAX: 56578181
WEB : www.dspmlmutualfund.com
Email : dspmlmf@ml.com

13 Edelweiss Mutual Fund
14th Floor, Express Towers,
Nariman Point, Mumbai – 400 021
TEL : 022-22864400
FAX : 022-4097 9970
Email Id: investor.amc@edelcap.com
Website: www.edelweissmf.com
Toll Free No: 1800 425 0090

14 Escorts Mutual Fund,
11, Scindia House,
Connaught Circus,
New Delhi 110 001.
TEL : 011-3321654 / 5177 / 3319991 / 3351343
FAX : 011-23761495, 23325177
WEB: www.escortsmutual.com
Email : help@escortsmutual.com
Mumbai Tel. Nos.
TEL : 30947097, 24218162

15 Franklin Templeton Mutual Fund
Level 4, Wockhardt Towers,
Bandra Kurla Complex,
Bandra (East),
Mumbai – 400 051
TEL : 6751 9100
FAX : 6649 0622
WEB : www.templetonindia.com

16 Fidelity Mutual Fund
56, 5th floor, Maker Chambers VI,
220, Nariman Point,
Mumbai 400 021
TEL: Toll Free number 1-600- 121262
Gurgaon : +91 (0124) 509 2104
(Investor Relations Officer’s number)
Mumbai : + 91 (022) 5655 4000
FAX: Gurgaon : +91 (0124) 509 2100
Mumbai: +91 (022) 5655 4200
Email: investor.line@fidelity.co.in
WEB : www.fidelity.co.in

17 HDFC Mutual Fund,
Ramon House, 3rd Floor,
169, Backbay Reclamation,
Churchgate,
Mumbai 400 020.
TEL : 22029111
FAX: 22028862
WEB : www.hdfcfund.com

18 HSBC Mutual Fund,
314 D N Road, Fort,
Mumbai 400 001.
TEL : 66145000
FAX: 40029600
Email : hsbcmf@hsbc.co.in

19 ICICI Securities Fund,
ICICI Towers, 7th Floor,
North Block,
Bandra-Kurla Complex,
Mumbai 400 051.
TEL : 6531414 / 6538988 (D)
FAX : 6531063 / 6531178

20 IL & FS Mutual Fund,
IL&FS Financial Centre,
7th Flr.,Plot No. C-22, ‘G’ Block
Bandra-Kurla Complex
Bandra East,
Mumbai 400 051.
TEL : 26533333
FAX : 26523854
Email: ilfsamc@vsnl.com
Email: customercase@ilfsamcindia.com

21 ING Mutual Fund,
Unit No. 101,
601/606, 6th Floor,
“Windsor”,
Off. C.S.T. Road,
Vidyanagari Marg,
Kalina, Santacruz (East),
Mumbai – 400 098
TEL : 022-39827999
Toll Free : 18004255433
FAX : 022-26500248
Email : information@in.ing.com
WEB : www.ingim.co.in

22 J M Financial Mutual Fund
5th, Floor, A-Wing, Laxmi Towers,
Bandra-Kurla Complex,
Mumbai 400 051.
TEL : 39877777
FAX : 26528377-78
WEB : www.JMFinancialmf.com
Email : mktg@jmmutual.com

23 JP Morgan Mutual Fund
9th Floor, Mafatlal Centre,
Nariman Point
Mumbai – 400021
TEL : 2285 5666
FAX : 6639 3095
WEB : www.jpmorganmf.com
Email : india.investors@jpmorgan.com

24 Kotak Mahindra Mutual Fund,
5A, 5th Floor, Bhaktawar,
229, Nariman Point,
Mumbai 400 021.
TEL : 22024884
FAX : 22830338
WEB : www.kotakmahindramutual.com

25 KJMC Mutual Fund,
168, Atlanta,
16th Floor,
Nariman Point
Mumbai 400 021
TEL : 22885201/22832350
FAX : 22852892
Email : kjmcmutual@kjmcmutual.com

26 LIC Mutual Fund
Industrial Assurance Bldg.,
4th Floor, Opp Churchgate Stn.,
Mumbai 400 020.
TEL : 22851661/22851663
FAX : 22040039
WEB : www.licmutual.com

27 Lotus India Mutual Fund
6th Floor, Chandermukhi,
Nariman Point,
Mumbai – 400 021.
TEL : 67474444
FAX : 67474455
WEB : www.lotusindiaamc.com

28 Morgan Stanley Mutual Fund
Forbes Building,
Charanjit Rai Marg,
Mumbai – 400 001.
TEL : 22096600
FAX : 22096606 / 22096610
WEB : www.msgfindia.com

29 Mirae Asset Mutual Fund
Unit 606, 6th Floor, Windsor,
Off CST Road, Kalina, Santacruz (E),
MUMBAI 400 098
TEL : 67800300
FAX : 6725 3942 / 45
Email : customercare@miraeassetmf.co.in
WEB : www.miraeassetmf.co.in

30 Principal Mutual Fund
Apeejay House, 5th Floor,
3, Dinshaw Vaccha Road,
Churchgate
Mumbai 400 020.
TEL : 56590333
FAX : 22044990
WEB : www.principalindia.com
Email : customer@principalindia.com

31 ICICI Prudential Mutual Fund
8th Floor, Peninsula Tower,
Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Off Senapati Bapat Marg,
Lower Parel, Mumbai 400 013.
TEL : 24997000
FAX : 24997029
Registered Office :
12th Floor, Narain Manzil,
23, Barakhamba Road,
New Delhi – 110 001
WEB : www.pruicici.com

32 Quantum Mutual Fund,
Regent Chambers,
# 107, 1st Floor,
Nariman Point,
Mumbai – 400 021
TEL : 22830322
FAX : 22854318
WEB : www.quantumamc.com

33 Reliance Mutual Fund
Express Building,
6th Floor, 14-E-Road,
Above Satkar Hotel,
Opposite Churchgate Station,
Churchgate,
Mumbai – 400 020
TEL : 30287168
FAX : 30414885
WEB: www.reliancemutual.com
Email : customer_care@reliancemutual.com

34 Sahara Mutual Fund,
Express Towers, 12th Floor,
Nariman Point,
Mumbai – 400 021
Ph. No: 56547885, 30957153
Fax: 56547856
WEB : www.saharamutual.com
Email : smfchn@saharamutual.com

35 SBI Mutual Fund
191, Maker Towers “E”
Cuffe Parade
Mumbai 400005
TEL : 22180221-25,27
FAX : 22189663
WEB : www.sbimf.com

36 Shriram Mutual Fund
106, Shiv Chambers, 1stFloor,
‘B’ Wing Sector – 11,
C.B.D.Belapur,
Navi Mumbai 400 614.
TEL : 7901447/8
FAX : 7901449
Email: srmf@roltanet.com
37 Standard Chartered Mutual Fund,
1st Floor, 90, M G Road,
Fort, Mumbai – 400 001.
TEL : 22621111
FAX : 22693365
Email : scmf@instandardchartered.com

38 Sundaram BNP Paribas Mutual Fund,
46, Whites Road,
Royapettah,
Chennai 600 014.
TEL : 044-28543362/28543367
FAX : 044-28543156

39 Taurus Mutual Fund
3rd Floor, DCM Building,
Barakhamba Road,
New Delhi 110 001.
TEL : 011-23321631/1756/3717593/3717593
FAX : 011-23324677
WEB : www.creditcapitalamc.com
Email: camco@del3.vsnl.net.in
Mumbai Address:
305, Regent Chambers,
208, Jamnalal Bajaj Marg,
Nariman Point,
Mumbai 400021.
TEL : 2826598/99

40 Tata Mutual Fund,
Fort House, 221 Dr. D N Road,
Mumbai 400 001.
TEL : 66578282
FAX : 22613782
WEB : www.tatamutualfund.com
Email kiran@tataamc.com

41 UTI Mutual Fund
UTI Towers,
‘Gn’ Block, Bandra-Kurla Complex,
Bandra (East),
Mumbai 400 051
TEL : 56786666
FAX : 56786578
WEB : www.utimf.com
The Association of Mutual Funds of India
Association of Mutual Funds of India (AMFI)
709, Raheja Centre
Free Press Journal Marg
Nariman Point
Mumbai – 400 021
TEL : 66101886/7
22876338/9
FAX : 66101889/66101916
WEB: www.amfiindia.com
Email: amfi@bom5.vsnl.net.in

Related Posts Only (manually created not automatically generated, thankfully)

mf-addresses
mutual-fund-websitesamc-websites-link

Mutual Fund Trends on Stock Exchanges APR-2008.

Trends in Transactions on Stock Exchanges by Mutual Funds
(as on 10-APR-2008)

(Provisional and subject to revision) April 2007
Trading Date Debt/Equity Gross Purchases(Rs Crores) Gross Sales(Rs Crores) Net Investment (Rs Crores)
01-APR-2008 Equity 403.20 688.20 (285.00)
Debt 0.00 0.00 0.00
02-APR-2008 Equity 520.90 648.80 (127.90)
Debt 3364.70 1610.60 1754.10
03-APR-2008 Equity 531.20 599.80 (68.60)
Debt 3687.90 1925.40 1762.50
04-APR-2008 Equity 396.80 559.30 (162.50)
Debt 1722.90 648.30 1074.70
07-APR-2008 Equity 598.20 638.10 (40.00)
Debt 6024.50 1504.90 4519.60
08-APR-2008 Equity 635.00 545.20 89.80
Debt 3202.90 936.80 2266.10
09-APR-2008 Equity 644.30 429.90 214.40
Debt 2908.30 1541.60 1366.70
10-APR-2008 Equity 610.20 293.50 316.70
Debt 1666.20 922.10 744.20
Total Equity 4339.8003 4402.8003 -63.0
Debt 22577.4 9089.699 13487.701
The above report is compiled on the basis of reports submitted to SEBI by custodians on 10-APR-2008 and constitutes trades conducted by Mutual Funds.

STATUS OF MUTUAL FUNDS INDUSTRY IN INDIA

STATUS OF MUTUAL FUNDS INDUSTRY IN INDIA FOR THE PERIOD APRIL – FEBRUARY 2008

No. of Schemes

No. of folios

Funds mobilized

Repurchase/ Redemption

Net Inflow (+ve)/ Outflow (-ve)

Unit Capital as on February 29, 2008

Net Assets as on February 29, 2008

Average Asset under Management

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

Open

Closed

Total

(in Rs. Crores)

(in Rs. Crores)

(in Rs. Crores)

(in Rs. Crores)

(no. of units, in crores)

(in Rs. Crores)

A

INCOME / DEBT ORIENTED SCHEMES

i

Liquid/ Money Market

57

0

57

187312

0

187312

3075630.85

0.00

3075630.85

3037721.05

0.00

3037721.05

37909.80

0.00

37909.80

7861.23

0.00

7861.23

112399.98

0.00

112399.98

112149.01

ii

Gilt

30

0

30

23777

0

23777

2538.66

0.00

2538.66

2521.37

0.00

2521.37

17.29

0.00

17.29

156.42

0.00

156.42

2443.41

0.00

2443.41

2196.06

iii

Debt(other than ass.re)

205

242

447

2399814

361051

2760865

697560.57

82162.66

779723.23

579626.99

98843.03

678470.02

117933.58

-16680.36

101253.21

11552.69

7409.09

18961.78

155779.39

76648.79

232428.18

231769.31

iv

Debt (assured return)

0

0

0

0

0

0

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

(i+ii+iii+iv)

Sub total

292

242

534

2610903

361051

2971954

3775730.08

82162.66

3857892.74

3619869.41

98843.03

3718712.43

155860.67

-16680.36

139180.31

19570.34

7409.09

26979.42

270622.78

76648.79

347271.57

346114.39

B

GROWTH / EQUITY ORIENTED SCHEMES

i

ELSS

29

10

39

5445039

773407

6218446

4361.57

0.00

4361.57

137.10

144.79

281.89

4224.47

-144.79

4079.68

500.28

88.37

588.65

14490.36

2207.79

16698.15

16578.77

ii

Others

221

42

263

22698570

6911680

29610250

91846.33

17647.22

109493.56

69106.75

4288.66

73395.40

22739.58

13358.57

36098.15

6786.51

3487.99

10274.50

141404.58

34493.78

175898.35

179606.67

(i+ii)

Sub total

250

52

302

28143609

7685087

35828696

96207.90

17647.23

113855.12

69243.85

4433.45

73677.30

26964.05

13213.78

40177.83

7286.79

3576.36

10863.15

155894.94

36701.57

192596.51

196185.44

C

BALANCED SCHEMES

i

Balanced schemes

32

6

38

2775297

132910

2908207

10588.86

344.82

10933.68

4927.10

257.29

5184.39

5661.76

87.53

5749.29

387.95

90.08

478.03

15421.00

2942.70

18363.70

18667.87

D

EXCHANGE TRADED FUND

i

GOLD ETF

5

0

5

75884

0

75884

402

0

402

132

0

132

270

0

270

0

0

0

493

0

493

475

ii

Other ETFs

8

0

8

7639

0

7639

8471

0

8471

10843

0

10843

-2372

0

-2372

6

0

6

4096

0

4096

4723

GRAND TOTAL

587

300

887

33613332

8179048

41792380

3891399

100155

3991554

3705015

103534

3808549

186384

-3379

183005

27252

11076

38327

446527

116293

562819.95

566166.00

D

Fund of Funds Scheme

20

15

35

205209

32441

237650

2887.86

339.54

3227.40

1201.21

992.61

2193.82

1686.66

-653.07

1033.59

215.32

82.59

297.92

3002.32

876.81

3879.12

3767.00

No.of schemes also includes serial plans.

Notes

1. Erstwhile UTI has been divided into UTI Mutual Fund (registered with SEBI) and the Specified Undertaking of UTI (not registered with SEBI). Above data contains information only of UTI Mutual Fund.

MF industry at a glance.

Mutual Fund Industry at a glance.

Status of Mutual Funds for the period April 2007 – February 2008

(Figs in Rs. Crore)

Private Sector Mutual Funds

Public Sector Mutual Funds

Grand

Total

A

UTI

(i)

Others

(ii)

Sub-total

(i)+(ii)

B

A+B

Mobilisation of Funds

3392284.83

304035.33

295233.55

599268.88

3991553.71

Repurchase / Redemption Amt.

3237246.65

288461.46

282840.98

571302.44

3808549.09

Net Inflow/ Outflow

(-ve) of funds

155038.19

15573.87

12392.57

27966.43

183004.62

Cumulative Position of net assets as on February 29, 2008 (%)

459670.07

(81.67%)

56625.35

(10.06%)

46524.53

(8.27%)

103149.88

(18.33%)

562819.95


Note:

1. Net assets of Rs. 3879.12 crores pertaining to Fund of Funds Schemes is not included in the above data.

HALF CENTURY.

Half Century

The country’s mutual fund space may soon become a 50-member strong industry, with more than a dozen new players looking to start their businesses either this year or by early 2009.

The prominent names likely to start their mutual fund businesses soon include leading domestic financial services firm Indiabulls Financial Services, banks like Axis Bank, Bank of India and Yes Bank, besides a host of other local and overseas entities.

Out of these, more than half a dozen are expected to be up and running in 2008 itself, while state-run Bank of India is currently scouting for a foreign partner.

Indiabulls received an in-principle approval from the market regulator SEBI for starting its mutual fund business last week and expects its asset management venture to start in next 3-4 months, after putting in place management and compliance teams.

Currently, there are 33 fund houses in the country, collectively managing assets worth close to Rs5.5 trillion.

According to industry people, the market could soon attain a size of over Rs10 trillion given the huge potential yet to be tapped by the new as well as existing players.

Besides, industry experts believe that growth would benefit the consumers as well with an increased competition expected to result into various new products and that too with new benefits to the customers.

“More than half a dozen new mutual funds are set to enter the industry, hopefully this year. There is enough scope for the new entrants as now, we have just scratched the surface of the market and there is a long way to go. As of now, just about 5% of the households in the country are covered by the existing players,”said A P Kurien, chairman, Association of mutual funds in India.

Gold ETF beats it all……

Gold ETF beats it all……time and again…

Scheme Name 1 mth 3 mths 6 mths 1 yr 3 yrs NAV Category Structure
Gold BeES (8.53) 6.81 24.85 24.96 1171.35 ETF Open Ended
Kotak Gold ETF (8.52) 6.81 24.88 1174.80 ETF Open Ended
Reliance Gold ETF -Dividend (8.62) 6.32 1159.38 ETF Open Ended
UTI Gold ETF (8.53) 6.83 24.95 1173.83 ETF Open Ended
S&P Nifty (4.47 ) (25.94 ) (10.78 ) 24.40 31.05
BSE Sensex (6.10 ) (25.83 ) (13.69 ) 19.93 32.41
CNX500 (7.35) (31.89) (13.55) 21.52 27.57
Nasdaq 4.90 (5.34) (13.26) (3.56) 5.99
FTSE 3.11 (6.32) (9.18 ) (6.54 ) 6.69
Dow Jones 3.24 (1.49) (9.77) 0.63 6.55
Strait Times 8.08 (8.21) (16.60) (5.31) 13.49
HangSeng 4.95 (11.83) (10.04) 20.00 21.52
Kospi 5.39 (5.23) (11.83) 19.03 21.58
Taiwan Weighted 2.29 3.39 (10.58 ) 9.11 12.57
MSCI Emerging Markets Index 11.57 11.98 26.55 44.93 32.07
BSE 500 (8.37) (31.70) (13.32) 24.77 29.45
Nikkei 2.32 (9.52) (22.23) (24.17) 4.44

 

 

Dont be fooled by the Dividends that you get…

For a lot of investors, dividend income means a lot. This holds true for investors in mutual funds as well as stocks. Now, investing in stocks calls for a totally different skill set. With stocks, regular dividends (in combination with other key factors like revenue and profit growth, cash flows) do speak for the company’s solid fundamentals. The problem arises when investors apply the ‘dividend strategy’ while investing in mutual funds. To compound matters, fund houses understand this mindset well enough to make a big deal while declaring dividends so as to draw investors looking (only) for dividends.

To appreciate the point about dividends being a misleading indicator, it’s important to understand how mutual funds offer a return. Mutual funds give a return by way of appreciation in the net asset value. Being market-linked, its NAV fluctuates on a daily basis; when at any point its NAV is higher than the level at which it was bought the investor has made a profit (generated a return) on his mutual fund investment.

In reality, this is the only way in which mutual funds give a return i.e. NAV appreciation. How about the dividends, doesn’t that also count as a return? Not really, because the dividend can be declared only if there is an NAV appreciation.

Confused with all this? An illustration should do the trick for you. Observe what happens to the NAV of a mutual fund after it declares a dividend.

From one hand to another

Cum-dividend NAV (Rs)

15.0

Dividend (%)

20.0

Dividend (Rs)

2.0

Ex-dividend NAV (Rs)

13.0

Notice in the illustration that the cum-dividend NAV is Rs 15.0 (this is the NAV before the dividend declaration). The mutual fund declares a 20 per cent dividend. It is obvious from the illustration that the mutual fund does not declare this dividend from its own pocket; it is drawn from the NAV. So an investor who invests in the fund anticipating a dividend declaration should consider this point before hitting the invest button. After all the money for the dividend will only be deducted from his NAV; he will be richer by Rs 2 per unit (going by our illustration), and poorer by the same amount (since the ex-NAV will also fall by Rs 2). At the end of the day, the dividend-seeking investor has no doubt pocketed the dividend, only to see an erosion in his capital by a similar margin.

In our view, investing in a mutual fund for the sole purpose of pocketing easy money (by way of dividend) can be a recipe for a disaster. This is no way to invest in a mutual fund.

· How not to invest in a mutual fund

There are certain points about dividends that investors must appreciate before diving into a mutual fund for the dividend lure:

1) Dividends on mutual funds are not assured. Even if a dividend looks certain in the immediate future, there is no saying whether the mutual fund will be in a position to declare another one at the same frequency and for the same amount. As explained earlier, dividends are ultimately a result of performance, there can be a dividend only if the mutual fund has performed well enough.

2) Declaring a dividend by a mutual fund cannot always be interpreted as a healthy sign. It could mean that the fund manager just does not have enough investment opportunities and would rather return the money to investors. Or worse, the fund manager probably sold some of his best stocks to generate cash for the dividends. Either ways, the dividend spells bad news for investors. We are not saying this is the case all time, but investors must divorce mutual funds from stocks as far as dividends are concerned. With stocks a dividend could underline a strong balance sheet but it does not mean the same thing for a mutual fund.

3) When you withdraw money from a mutual fund investment by way of dividend, you lose out on the benefits of compounding. For compounding to work effectively, it’s important that you stay invested i.e. preserve your original investment and if possible add to it, but do not withdraw from it, unless it’s an emergency.

4) On hindsight, one scenario where pursuing a ‘dividend strategy’ could prove intelligent is during depressed market conditions. Investors who have collected dividends during a rally in stock markets will have something to show for during a prolonged depression, while investors who had relied only on capital appreciation will wish they had redeemed a portion of their investments during the rally. Mutual fund categories like thematic and sector funds that witness more cycles (than diversified equity funds) are apt candidates for the dividend option.

While dividends may be important for a category of investors, investing in mutual funds only for the dividends is perilous. It is more important that investors focus on the mutual fund’s performance, which is dictated mainly by the fund management processes and investment style of the mutual fund. A strong performance could lead to dividends in the future, but the opposite is not true.

SBI MAGNUM TAXGAIN ELSS EQUITY LINKED SAVINGS SCHEME(ELSS)

SBI Magnum TaxGain 1993

What is SBI Magnum TaxGain Scheme about?

Magnum TaxGain Scheme is an Equity Linked Savings Scheme (ELSS) from SBI Mutual Fund which offers investors tax benefits on an investment upto Rs 1 Lakh under Section 80C of Indian Income Tax Act 1961. The fund was launched in the year 1993 and is one of the top performers in the ELSS category.

Scheme Highlights:

Entry Load – Investments below Rs. 5 crores – 2.25%,Investments of Rs.5 crores and above – NIL”

SIP/STP Entry Load – 2.25%

Exit Load : NIL

SIP : Minimum amount Rs.500/month – 12 months Rs.1000/month – 6months, Rs.1500/quarter – 12 months.

STP : Minimum amount Rs.1000/- month – 6 months, Rs.3000/ Quarter – 6 months.

Asset Allocation – 80-100% in Equity, partly convertible debentures and fully convertible debentures and bonds & 0 – 20% in Money market instruments.

Minimum Application Amount – Rs 500 for purchase & Multiples of Rs 500 for additional purchase.
Plans & Options – Dividend option with payout and reinvestment facility.

In respect of STP transactions, an investor would now be permitted to transfer any amount from the switch-out scheme, subject to a minimum transfer of Rs.1000 pm or Rs.3000 per quarter, without any restriction on maintaining the minimum balance requirement as stipulated for the switch out scheme. The minimum period for STP will be atleast 6 months.

Enter Section 8OC.

Section 88 was scrapped in Finance Bill 2005. Instead, Section 80C has been introduced. All avenues that were eligible for tax benefits under Section 88 were brought under the Section 80C fold. However, instead of offering tax rebates, investments (up to Rs 100,000) under Section 80C qualify for deduction from gross total income. Hence a new system of claiming tax benefits is now in place.

How have Equities performed as compared to other asset classes?

Track record of the last 15 years shows that equity investments give better returns over the long term. Other asset classes such as Fixed Deposits & Gold have given returns of 5.7% & 10.3% respectively as compared to 15.6% provided by equities (BSE Sensex). (Cumulative annualized returns from 1984 to 2004). We believe that a 3 year horizon is ideal for getting a reasonable return from equity.

Why should I invest in Magnum TaxGain Scheme?

Magnum TaxGain Scheme offers you tax savings upto Rs 33,360 (Calculation based on applicable income slab, tax amount, surcharge & education cess) on an investment of upto Rs 1 Lakh. It also gives you equity market linked returns.

Returns of Magnum Taxgain Scheme

As on 31 January, 2006 FUND CATEGORY BENCHMARK
(BSE 100)

1-Years 105.57% 59.77% 48.36%

3-Years 99.60% 63.65% 48.28%

5-Years 32.13% 29.82% 18.77%

Return Since Launch 19.62% 13.55%

Please note that past performance may or may not be sustained in future.

What is the investment strategy of Magnum TaxGain Scheme?

Magnum TaxGain Scheme follows the bottom up investment strategy. The portfolio size limited to about 35 stocks in all. The strength lies in the ability to identify promising stocks and take them in the portfolio. This strategy has worked in favour of the fund in the last couple of years.

Awards & Achievements:

Magnum TaxGain Scheme has been ranked CPR 1 by CRISIL which indicates ‘very good performance’ It has recently bagged 2 gold awards in the 1 year & 3 year category for performance in the ICRA Online Awards. Magnum TaxGain Scheme has consistently given dividends and the last dividend given was 102% in June 2005.

Does a high NAV reduce the value of my investment?

It may be added by way of clarification that an NAV of Rs.50 in an existing scheme, and an NAV of Rs.10 in an New Fund Offer (NFO) are exactly the same for a new Investor, unlike in a share during an IPO. Two funds with exactly the same portfolio generate the same percentage of return in a given period irrespective of the magnitude of the NAV. Any time is hence the right time to invest!

Please read the Offer Document before investing.

Related Posts Only (manually created not automatically generated)

Principal MF

Five easy steps to investing in Mutual Funds

Five easy steps to investing in Mutual Funds:

Search:
Where to look for if you want to begin saving in mutual funds

Mutual funds are much like any other product, in that there are manufacturers who provide the product and there are dealers who sell them.
Large banks to organized brokerage houses to Individual Financial agents get empanelled with Mutual Funds to provide advise and assistance to customers who want to buy units. Mutual funds units can now also be bought over the Internet
Contacting an Investment advisor in a bank or a brokerage house or an Independent Financial Advisor is the first step to gathering information.
Evaluation:
choosing the right mutual fund for you

Each Mutual fund offers a variety of schemes to suit differing needs of investors. The Bank/ Brokerage house/ Individual Financial Advisor helps you make the choice based on your needs.
As an investor one may
a) for the short term or long term want to invest
b) want regular income or growth
c) want to target lower risk or higher returns
d) be convinced of a particular sector and want to invest in it
Remember, just like a salesman in a gift shop, your investment advisor can help you the most if he knows what you are looking for.

Purchase

After you have decided to save, you may have to decide among the various investment and withdrawal options that any fund offers to its investors.
Most of these schemes also offer various options to customize your operation of the fund to your needs:

Systematic Investment Plan (SIP):
Allows you to save a part of your income regularly. Also used to reduce risk when investing in schemes targeting aggressive growth.
Systematic Withdrawal Plan (SWP):
Allows you to withdraw a part of your investment regularly. Used when you want to withdraw your investment for a specific regular payment, like insurance premium payments of monthly/quarterly frequency.
Automatic debit:
Saves the hassle of writing a cheque when making an investment. Your account is debited automatically for the amount invested.
Automatic credit:
The reverse of Automatic Debit. Saves the hassle of enchasing a cheque when withdrawing an investment. Your account is credited automatically with the amount withdrawn.
Dividend plan:
Allows you to get Tax-free dividends from your investment. (As per current Tax laws).
Growth plan:
Allows the income generated from investment to be ploughed back into the scheme. Used by investor targeting growth in their investment.
Some funds carry an entry load, which is a percentage fee deducted from the amount invested before investment. Thus a 2.5% entry load will mean that if you invest Rs 1 lakh in a Rs. 10 per unit IPO, instead of getting 10,000 units, you will be allotted 9,750 units. Check for presence of such loads and other conditions before investing.
After deciding the choice of mutual fund, investment and withdrawal, you are ready to begin your savings. You need to now fill up an application form and attach a cheque of the value of your investment or mention your account number to have it automatically debited from your account.

Post Purchase Monitoring

Once you have invested in an ongoing fund, expect a period of two to three days before you receive an account statement on the address mentioned by you in your application form.

The Account Statement

Your account statement indicates your current holding in the scheme that you have invested. Please ensure that all your details have been correctly captured in account statement. Please point out any discrepancies to your nearest CAMS investor Service Centre or the Mutual Fund office. You can request an account statement any time by calling up your nearest CAMS/ Mutual fund offices usually mentioned on the back of the account statement.
The transaction slip at the end of the account statement can be used for additional purchases, redemptions or to intimate the mutual fund on any change in bank mandates/address.
The NAVs of all the open-ended schemes are published at the fund’s website, financial newspapers and AMFI (Association of Mutual Funds) web-site http://www.amfiindia.com/.

Exit

While you should periodically monitor the performance of your investments, we recommend you do not get swayed by short term considerations in deciding your exit. If you have invested in a long term fund, you can spare yourself undue worries by not monitoring the NAV every day or week. Checking the performance once in a while along with your advisor should be fine.
Most mutual funds will provide you with a toll free number that works from 9 am to 5 am and a website. For specific assistance you can also use your financial advisors help.

Redemption/ Withdrawal

Just submit your completed transaction within the transacted time for the scheme that you are invested in and deposit the same at the nearest CAMS Investor Service Centre or the office of the fund. You can either get a direct credit to your bank account or you can generally collect the cheque at the CAMS Investor Service Centre/ AMC offices. If you fail to do so then the cheque is couriered to the address mentioned in your account statement. Most funds take 1-3 days to credit your account with your redemption proceeds.

In case an exit load is applicable to your withdrawal and you have redeemed a fixed amount, an additional number of units equivalent to the exit load amount will be liquidated from your investment. You can check this amount with the mentioned exit load when you get the account statement using a simple calculator.

Systematic Investment Plan( SIP)

The importance of Systematic Investment Pan.
The strategy and/or plan of investing at regular intervals is just as applicable to mutual funds as it is to common stock. Establishing such a plan can substantially reduce your long-term market risk and result in a higher net worth over a period of ten years or more.

A Technique that Drastically Reduces Market Risk

Systematic Investment Plan is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Many successful investors already practice without realizing it. Many others could save themselves a lot of time, effort and money by beginning a plan. In this article, you will learn the three steps to beginning a Systematic Investment Plan plan, look at concrete examples of how it can lower an investor’s cost basis, and discover how it reduces risk.

Systematic Investment Plan: What is It?

Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time.

This spreads the cost basis out over several years, providing insulation against changes in market price.

Setting Up Your Own Systematic Investment Plan Plan
In order to begin a Systematic Investment Plan plan, you must do three things:

Decide exactly how much money you can invest each month. Make certain that you are financially capable of keeping the amount consistent; otherwise the plan will not be as effective.
Select an investment (index funds are particularly appropriate, but we will get to that in a moment) that you want to hold for the long term, preferably five to ten years or longer.
At regular intervals (weekly, monthly or quarterly works best), invest that money into the security you’ve chosen. If your broker offers it, set up an automatic withdrawal plan so the process becomes automated.
An Example of a Systematic Investment Plan Plan
You have Rs15,000 you want to invest in XYZ Stock common stock. The date is January 1, 2000. You have two options: you can invest the money as a lump sum now, walk away and forget about it, or you can set up a Systematic Investment Plan plan and ease your way into the stock. You opt for the latter and decide to invest Rs1,250 each quarter for three years. (See chart for math of Systematic Investment Plan plan.)

Had you invested your Rs15,000 in January 2000, you would have purchased 264.46 shares at Rs56.72 each. When the stock closed for the year in December of 2002 at Rs13.69, your holdings would only be worth Rs3,620!

Had you Systematically Invested (thru SIP) into the stock over the past three years, however, you would own 746.21 shares; at the closing price, this gives your holdings a market value of Rs10,216. Although still a loss, XYZ Stock must only go up to Rs20.10 for you to break even, not Rs56.72, which would have been required without the Systematic Investment Plan.

To go a step further, without Systematic Investment Plan you would break even at Rs56.72. With Systematic Investment Plan, you would have turned a profit of Rs27,326 when the stock hit that price thanks to your lower cost basis (Rs56.72 sell price – Rs20.10 average cost basis = Rs36.62 profit x 746.21 shares = Rs27,326 total profit.)

Combining the Power of Systematic Investment Plan with the Diversification of a Mutual Fund
Index funds are passively managed mutual funds that are designed to mimic the returns of benchmarks such as the S&P 500, the Dow Jones Industrial Average, etc. An investor that puts money into a fund designed to mimic the Wilshire 5000, for example, is literally going to own a fractional interest in every one of the five thousand stocks that make up that index. This instant diversification comes with the added bonus. Traditionally, management fees of passive funds are less than one-tenth those of their actively managed counterparts. Over the course of a decade, for example, this can add up to tens of thousands of Rupees the investor would have paid in fees to the mutual fund company that, instead, are accruing to his or her benefit.

The Systematic Investment Plan component reduces market risk, while the index fund investment reduces company-specific risk. This combination can be among the best investment options for Rs individuals looking to build up their long term wealth by having a portion of their portfolio in equities.

Table 1: XYZ Stock with Systematic Investment Plan Plan
Invest date Amount Price per share Shares purchased
Jan. 2000 Rs 1,250 Rs 56.72 22.04
Apr. 2000 Rs 1,250 Rs 54.19 23.07
Jul. 2000 Rs 1,250 Rs 31.34 39.27
Oct. 2000 Rs 1,250 Rs 22.60 53.31
Jan. 2001 Rs 1,250 Rs 22.10 56.50
Apr. 2001 Rs 1,250 Rs 19.05 65.62
Oct. 2001 Rs 1,250 Rs 18.13 68.95
Jan. 2002 Rs 1,250 Rs 16.14 77.45
Apr. 2002 Rs 1,250 Rs 14.58 85.73
Jul. 2002 Rs1,250 Rs 8.66 144.34
Oct. 2002 Rs1,250 Rs11.64 107.39
Total Rs15,000 Rs20.10 avg. 746.21 sharesowned.

COMPUTATION OF STT WITH EXIT LOAD

Click on the below mentioned link to open spreadsheet to calculate how much amount is paid through Securities Transaction Tax . These amount can assume huge proportions depending upon the size of the investment.

http://spreadsheets.google.com/ccc?key=pqV_K4lfRDq3D5One-9poRg&hl=en