Archive for September 1st, 2009

SMC Global Securities : A Leading Financial Services Provider in India :)

Before You Realise Your Loved Ones Will Grow ๐Ÿ™‚

If you find yourself asking the question โ€“

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

Who would Guide me to take informed decision on my Investments ?

โ€ฆthen look no further !

[:)]

SMC Global Securities, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

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Currently, SMC has a highly efficient workforce of over 4,000 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors.

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WEB:

http://www.smcindiaonline.com

http://www.facebook.com/pages/
SMC-GLOBAL-INVESTMENT-SOLUTION/
104149467952?ref=nf

http://www.facebook.com/group.php?
gid=90885076779&ref=ts


http://smcinvestmentsolutionindia.ning.com

http://networkedblogs.com/blog/smc_global
_blog_moneywise_be_wise/

If you find yourself asking the question โ€“

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

Who would Guide me to take informed decision on my Investments ?

โ€ฆthen look no further !

SMC Global, a leading Financial services provider in India, a vertically integrated investment solutions company, with a pan-india presence is there to guide you and provide complete investment solutions to you.

Currently, SMC has a highly efficient workforce of over 4,000 employees & one of the largest retail network in India currently serving the financial needs of more than 5,50,000 satisfied investors.

Investor’s Dilemma : Are ULIPs just another Mutual Fund??

ulips

At almost every investor mind a question is generally cropped up: โ€œWhat is the difference between a ULIP and a Mutual Fund?โ€

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The reason, perhaps for the wide extent of confusion, lies largely in the way ULIPs have been sold by agents. As just another mutual fund.

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Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning.

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As is the case with mutual funds, investors in ULIPs is allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

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Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few.

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Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component.

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Mutual Fund is a body corporate that pools the money from individual/corporate investors and invests the same on behalf of the investors /unit holders, in various investment avenues like equity shares, Government securities, Bonds, Call money markets etc., as per the pre-specified objective and distributes the profits earned from such investment.

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In India, Mutual Funds are registered with the Securities and Exchange Board of India (SEBI).


ULIPs vs Mutual Funds

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ULIPs are a mix of investment and insurance. ๐Ÿ™‚

But very long term investment, not even medium term.

Insurance companies themselves admit, that if your investment horizon is anything less than 7 years, donโ€™t even consider a ULIP.

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Charge structure in a ULIP is vastly different from a mutual fund.

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ULIP investors also have the flexibility to alter the premium amounts during the policyโ€™s tenure.

The freedom to modify premium payments at oneโ€™s convenience clearly gives ULIP investors an edge over their mutual fund counterparts.

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In mutual fund investments, expenses charged for various activities like fund management, sales and marketing, administration among others are subject to pre-determined upper limits as prescribed by the Securities and Exchange Board of India.

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Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority.

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ULIPs also allow you to switch from debt to equity within the same scheme, at no extra charge.

So if you want to get the benefits of long term investment and risk cover in one single product, ULIP is the product for you.

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So it is not an issue, of whether a mutual fund is better or a ULIP. It is about your need.

Both can co-exist in your basket of needs. ๐Ÿ™‚

So identify your needs with a financial planner and then pick the product suitable for you.

๐Ÿ™‚

ULIPs are a mix of investment and insurance. But very long term investment, not even medium term.

Insurance companies themselves admit, that if your investment horizon is anything less than 7 years, donโ€™t even consider a ULIP.

Charge structure in a ULIP is vastly different from a mutual fund.

ULIP investors also have the flexibility to alter the premium amounts during the policyโ€™s tenure.

The freedom to modify premium payments at oneโ€™s convenience clearly gives ULIP investors an edge over their mutual fund counterparts.

In mutual fund investments, expenses charged for various activities like fund management, sales and marketing, administration among others are subject to pre-determined upper limits as prescribed by the Securities and Exchange Board of India. Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority.

ULIPs also allow you to switch from debt to equity within the same scheme, at no extra charge. So if you want to get the benefits of long term investment and risk cover in one single product, ULIP is the product for you.

So it is not an issue, of whether a mutual fund is better or a ULIP. It is about your need.

Both can co-exist in your basket of needs.

So identify your needs with a financial planner and then pick the product suitable for you.

IFCI Sells over 27 lakh DVR shares of Tata Motors :)

DVr shares

IFCI has sold more than 27 lakh Differential Voting Right (DVR) shares of Tata Motors in the last two trading sessions through the bulk deal route.

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At the time of the issue of these shares in November last year, IFCI was the sub-underwriter to Tata Motorsโ€™ DVR issue, along with JM Financial.

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Of the 6.4 crore DVR shares issued by Tata Motors, IFCI held 81.96 lakh shares (12.77 per cent) as on June 30.

After the sale, IFCIโ€™s stake has fallen to 8.4 per cent.

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Marketmen said IFCI is likely to have sold the DVRs to take advantage of the rise in the share prices.

IFCI had bought the shares at Rs 305 a piece in November last year.

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The Tata Motors DVR stock closed up 4.8 per cent at Rs 368.95 on the BSE.

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โ€œIFCI purchased these shares at a lower price; this is quite a decent exit proposition. They have made fair bit of profit from this sale,โ€ said Mr Jagannadham Thunuguntla, Head of Equities at SMC Capitals.

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Another reason for IFCIโ€™s sale of the DVR shares in the last two trading sessions could be that they wanted to sell before the release of Tata Motorsโ€™ consolidated first quarter results on Monday, Mr Thunuguntla said.

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Company has raked in Rs 98 crore through market sales. ๐Ÿ™‚

Tata Motors made a consolidated net loss of Rs 329 crore for the quarter ended June 30.

Tata Motors was the first company to issue shares with DVRs in India in November 2008 when it issued 6.4 crore DVR shares as part of its Rs 4,145-crore rights issue to repay the loan taken for its acquisition of Jaguar-Land Rover.

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