Archive for September 7th, 2009

Gold Prices Increased to a Record High @Rs 15,900 !!

gold rates

Driven by last minute heavy purchases by traders in order to build up stocks before the start of the inauspicious ”Sharad”, the gold prices increased to a record high of nearly Rs 16,000 per 10 gram in the national capital.

🙂

However, the costly metal spurted by Rs 200 from Thursday’s level at scale a new peak of Rs 15,900 per 10 gram.

😦

Additionally, the prices of silver coins too skyrocketed to an all time high of Rs 31,200 per 100, pushed up by a steep rise of Rs 700 up in silver rates at Rs 25,300 per kg.

😦

Moreover, the raise in the gold rates was due to heavy demand from jewellers and stockists before Sharad.

😦

Additionally, the rally was also sparked by gold”s rise in the overseas markets to a six-month high, towards 1,000 dollars an ounce.

Further the ambiguity in the stocks, which remained more unstable in last one-week, left very less choice for the investors but to invest in bullion as a safe haven.

🙂

However, in the last one week the BSE index Sensex fell for four consecutive days, but gained 290.79 points on Friday at 15,689.12, the last trading day of the week whereas silver ready surged by Rs 700 to Rs 25,300 per kg and weekly-based delivery by Rs 560 to Rs 25,700 per kg.

🙂

Moreover, the standard gold and ornaments shot up by Rs 200 each to Rs 15,900 and Rs 15,750 per 10 gram respectively.

🙂


480 Funds Make it to the Sensex-Beater List :)

Sensex beater Funds

The net asset value (NAV) appreciation of nearly 480 funds or nearly one out of every two funds has bettered the sensex returns of 9% in the past year.

🙂

Around 100 funds have at least doubled the 30-share index’s gains.

🙂

Some like IDFC Small & Midcap Equity (43%), Tata Life Sciences & Tech (40%), UTI Transportation and Logistics (38%), Canara Robeco Equity Tax Saver (36%), Birla Sun Life Dividend Yield Plus (36%), ICICI Prudential Gilt Investment PF (35%) and Reliance NRI Equity (34%) returned eye-popping 3 times sensex’s returns.

🙂

Overall, there are at least 23 funds which more than tripled the benchmark’s gains in the period starting August 31’08 and ending this August 30.

🙂

Mutual funds have always showed the ability to beat popular benchmarks.

While investors remain cautious, especially after Sebi regulations on loads, the fact remains that most funds have good track records.

The industry have delivered always alpha (a measurement of risk-adjusted performance) as per the industry experts.

🙂

Interestingly, many funds which sported NAVs of less than Rs 10 have proved to be real gems and may have helped SIP users.

🙂

Take, for instance, Religare Contra fund.

The market rally has helped the same fund’s NAV to almost touch Rs 13 per unit, gaining 32.52% in 12 months.

Other funds which have outperformed sensex include Taurus Infrastructure (29%), Mirae Asset India Opportunities (25%), AIG World Gold (20%), HSBC Tax Saver Equity (20%) and Morgan Stanley ACE fund (19%).

🙂

Numerous exchange traded funds (ETFs), which track a specific index or commodity, find their place in the market beater list with those tracking gold like Gold Benchmark ETF (27%) or banks such as Kotak PSU Bank ETF (32%) doing exceedingly well.

🙂

Monthly income plans, best suited for getting specified monthly payment to investors like senior citizens and retired persons, also make it to the sensex-beater list.

🙂

Funds like Reliance MIP (28%), HDFC MIP Long-term (22%), Principal MIP Plus (14%), Templeton MIP-G (12%) and LIC Floater MIP (10%) are some examples.

🙂

The net asset value (NAV) appreciation of nearly 480 funds or nearly one out of every two funds has bettered the sensex returns of 9% in the past year. Around 100 funds have at least doubled the 30-share index’s gains. Some like IDFC Small & Midcap Equity (43%), Tata Life Sciences & Tech (40%), UTI Transportation and Logistics (38%), Canara Robeco Equity Tax Saver (36%), Birla Sun Life Dividend Yield Plus (36%), ICICI Prudential Gilt Investment PF (35%) and Reliance NRI Equity (34%) returned eye-popping 3 times sensex’s returns. Overall, there are at least 23 funds which more than tripled the benchmark’s gains in the period starting August 31’08 and ending this August 30.

“Mutual funds have always showed the ability to beat popular benchmarks. While investors remain cautious, especially after Sebi regulations on loads, the fact remains that most funds have good track records. We (the industry) have delivered always alpha (a measurement of risk-adjusted performance),’’ said the CEO of a top mutual fund. Interestingly, many funds which sported NAVs of less than Rs 10 have proved to be real gems and may have helped SIP users. Take, for instance, Religare Contra fund which had an NAV of Rs 9.78 on August 30, 2008. The market rally has helped the same fund’s NAV to almost touch Rs 13 per unit, gaining 32.52% in 12 months. Other ‘beaten-down’ funds which have outperformed sensex include Taurus Infrastructure (29%), Mirae Asset India Opportunities (25%), AIG World Gold (20%), HSBC Tax Saver Equity (20%) and Morgan Stanley ACE fund (19%).

“Many themes may not have done well in the past few months. Take for example international funds. While performance is one of the metrics, it’s important for the investor to allocate some portion of their MF assets to them. They might do well when global economies rise,’’ S Naren, CIO of ICICI Prudential AMC, said in a recent interview.

Numerous exchange traded funds (ETFs), which track a specific index or commodity, find their place in the marketbeater list with those tracking gold like Gold Benchmark ETF (27%) or banks such as Kotak PSU Bank ETF (32%) doing exceedingly well. Monthly income plans, best suited for getting specified monthly payment to investors like senior citizens and retired persons, also make it to the sensex-beater list. Funds like Reliance MIP (28%), HDFC MIP Long-term (22%), Principal MIP Plus (14%), Templeton MIP-G (12%) and LIC Floater MIP (10%) are some examples.

Surge in Vehicles Sales Pushes Profit of General Insurance Industry, Up :)

general insurance

The general insurance industry reported growth of 14 per cent in July, mainly due to sales of motor insurance policies.

🙂

In July, passenger vehicle sales reported growth of 29.1 per cent and commercial vehicle sales grew at 9.6 per cent.

Consequently, sales of motor insurance policies also increased.

🙂

In the reporting month, gross written premiums (GWPs) of the public sector insurers stood at Rs 1,680 crore, which is higher by 13.5 per cent.

Private sector players’ GWPs grew 14 per cent at Rs 1,176 crore.

🙂

Meanwhile, state-owned players such as United India Insurance, New India Assurance and Oriental Insurance posted double-digit growths.

🙂

National Insurance was the only public player to have a single-digit growth.

🙂

Even as the public sector players posted a good growth,the two big private players — ICICI Lombard General Insurance and Bajaj Allianz General Insurance — registered negative growth.

😦

However, market is picking up.

Though there is some slowdown in the travel insurance segment, but motor insurance is picking up.

🙂