Posts Tagged ‘Franklyn Templeton’

QIPs abound, but analysts sceptical of their success

As many 40 companies are planning to raise money via QIP but marketmen say that not all of these issues will be successful.

The initial euphoria for the first handful of QIPs has been replaced by fatigue. But QIPs cannot be written off and their success would be “issue specific,” they said.

“Companies with reasonable valuations will see their issues going through. Not all companies that have announced QIPs will succeed with the issue. Pricing is very important,” said Mr Krish Shanbhag, Head of Research at Antique Stock Broking.

Of the companies that announced their QIP plans since April, only five have completed their issues.

Mr Jagannadham Thunuguntla

“The issues that were completed show that the success of a QIP is not sector-related. Though the majority of the QIPs are from the real estate sector, the five companies that completed their QIPs are from a range of sectors,” said Mr Jagannadham Thunuguntla, Head Equity at SMC Capitals.

List of companies

The five companies to complete their QIPs are Unitech, Indiabulls Real Estate, Power Trading Corporation, Network 18 and Sree Renuka Sugars.

Some of the companies that have announced their QIPs include Hindalco, Tech Mahindra, Max India, Nagarjuna Constructions, Bank of Rajasthan, Bajaj Hindustan, Ansal Properties, HDIL, HDFC and Akruti City.

GMR Infrastructure, which announced its QIP on Monday, said on Tuesday that it is withdrawing the issue “in light of the existing market conditions”. This led to its stock price plummeting close to 9 per cent.

“The set of QIPs who have raised money from the market had done it at close-to-the-bottom valuations. At those valuations investors were interested. However, it remains to be seen if investor appetite remains at levels that are significantly higher than the levels at which the bulk of the fund-raising happened in the recent past. Clearly, from what we understand, some of the QIPs have had to withdraw from the market,” said Mr Prateek Agrawal, Head of Equity, at Bharati AXA Investment Managers.

The markets have rallied quite a bit since April and companies wanted to grab hold of this window of opportunity to raise capital. The QIP route was the easiest, said marketmen.

“A QIP issue does not involve the same hassles as IPOs, FPOs or rights issues. It is an easier and quicker means to raise much-needed liquidity. The real estate sector is the probably the most liquidity-starved, which is why we have seen the majority of the QIPs coming in from this sector. But investors are aware of the fact that conditions in the real estate sector have not improved much. Which is the reason why not all the issues have received the same response,” said Mr B. Madhuprasad, Vice-Chairman, Keynote Corporate Services.

Source:http://www.thehindubusinessline.com/2009/07/01/stories/2009070151851000.htm

Entry Fee Removal May Slow Indian Mutual Fund Spread

Indian capital market regulators’ move to scrap an entry fee on mutual funds is expected to bring more transparency in the growing industry even though it may temporarily hurt mutual fund penetration as distributors will lose the incentive to sell funds.

In the long run, the move should bring down the cost of investing in mutual funds, attracting more investors and helping the industry grow, experts said.

“The idea behind the SEBI move is to make mutual fund schemes available to the investor at the lowest cost possible,” said Anil Chopra, group chief executive and director, Bajaj Capital Ltd.

The so-called entry load is a fee that asset management companies, or AMCs, deduct from the amount of money an investor puts in a scheme to pay for marketing and distribution expenses, most of which is an upfront payment to distributors as commission.

Last week, C.B. Bhave, chairman of the Securities & Exchange Board of India, said the upfront commission shall now be paid by the investor to the distributor directly, adding that distributors will have to disclose the commission received for their services.

The benefit for investors would be that they now get to negotiate the amount of commission payable.

Also, the removal of the entry load can actually increase the compounded return for investors as the entire amount they wish to put in a fund would get invested.

For example, earlier, if an investor paid 100,000 rupees for a fund investment, he was allotted units only worth 97,750 rupees-97,500 rupees after deducting the entry load.

At present, equity funds typically impose an entry load of 2.25% to 2.50% on their schemes.

Also, distributors will now be more accountable to investors.

Jagannadham Thunuguntla, head of equity at SMC Capitals Ltd.

“This is a path-breaking change, and one which would check mis-selling of mutual fund schemes by distributors,” said Jagannadham Thunuguntla, head of equity at SMC Capitals Ltd.

Mr. Thunuguntla said distributors could now look at turning into advisers who educate investors on the prospects of a fund and its potential performance by demanding an advisory fee in return.

“The taste of easy money (by just selling a scheme) would be gone…the distributors will have to make sure they give the best advice to the investors in order to ensure regular income,” he said.

The SEBI move comes at a time when fund managers are looking to make the most of the revival in Indian markets.

Total assets under management for fund houses in India rose 16% in May to a record 6.39 trillion rupees ($135.90 billion), compared with 5.51 trillion rupees in April, as the benchmark Sensex has soared over 50% since the start of 2009.

Mutual fund penetration in India is still a low 3% of total household savings, and the industry is banking on tapping investors in tier II and tier III cities for growth.

But the SEBI move may limit these efforts in the short-term as the industry may see a fall in the number of distributors, and consequently a fall in business volumes, say analysts.

Experts say distributors might look at other business opportunities as they would now cease to receive the fixed commission from the AMCs for selling mutual funds.

“Selling mutual funds will become much less attractive,” said Dhirendra Kumar, chief executive, Value Research – an independent provider of investment information on mutual funds.

Manish Sonthalia, a fund manager at Motilal Oswal Securities Ltd. said, “(Fund) mobilization would tend to slow down and, even if profitability does not get impacted directly, volumes at AMCs would be hit.”

In the short term, distributors may opt to sell other investment products like unit-linked insurance plans, or ULIPs, pension schemes and post-office savings certificates, which could hurt the asset management industry.

An option out for fund houses is to distribute their products directly, Mr. Kumar of Value Research said.

However, analysts say this is unlikely as setting up distribution centers at several locations across the vast Indian subcontinent would be costly and time-consuming for AMCs.

Source:http://online.wsj.com/article/SB124584142778546881.html?mod=googlenews_wsj

SMC: A ONE STOP INVESTMENT DESTINATION !

Moneywise Be Wise

Moneywise Be Wise

Product and Services from SMC Global Securities !

SMC Global Securities : Money Wise Be Wise !

Equity & Derivative Trading

SMC Trading Platform offers online equity & derivative trading facilities for investors who are looking for the ease and convenience and hassle free trading experience.

SMC provides ODIN Application, which is a high -end, integrated trading application for fast, efficient and reliable execution of trades.

One can now trade in the NSE and BSE simultaneously from any destination at their convenience. They can access a multitude of resources like live quotes, charts, research, advice, and online assistance helps them to take informed decisions.

One can also trade through SMC’s branch network by registering with SMC as their client.

One can also trade through SMC on phone by calling SMC’s designated representatives in the branches where he/she is registered as a client.

Clearing Services

SMC is a clearing member in NSE (F&O), BSE(F&O),MCX, NCDEX,and DGCX. SMC is clearing massive volumes of trades of its trading members in this segment.

Commodity Trading

SMC is a member of 3 major national level commodity exchanges, i.e

National Commodity and Derivative Exchange(NCDEX),

Multi Commodity Exchange (MCX) and

National Multi Commodity Exchange of India(NMCE) and offers one a trading platform of NCDEX, MCX and NMCE.

One can get Real-Time streaming quotes, place orders and watch the confirmation, all on a single screen. SMC uses technology using ODIN application to provide clients with live Trading Terminals. In this segment, SMC has spread its wings globally by acquiring Membership of Dubai Gold and Commodities Exchange. SMC provides trading platform to trade in DGCX and also clear trades of trading members being a clearing member.

Distribution of Mutual Funds & IPOs

SMC offers distribution and collection services of various schemes of all Major Fund houses and IPOs through its mammoth network of branches across India .

SMC is registered with AMFI as an approved distributor of Mutual Funds. SMC assures one a hassle free and pleasant transaction experience when they invest in mutual funds and IPOs through us. They are registered with all major Fund Houses including Fidelity, Franklyn Templeton etc.

SMC has a distinction of being leading distributors of IPOs. Shortly SMC will be providing the facility of online investment in Mutual Funds and IPOs.

Online back office support

To provide robust back office support backed by excellent accounting standards to its branches SMC has ensured connectivity through FTP and Dotnet based Application. To ensure easy accessibility to back office accounting reports to its clients, SMC has offered facilities to view various user freindly, easily comprehendible back office reports using the link My SMC Account.

SMC Depository

SMC is DP for shares and commodities. It is one of the leading DP and enjoy the trust of more than 5.5 lacs investors. SMC offers a quick, secure and hassle free alternative to holding the securities and commodities in physical form. SMC is one of the few Depository Participants offering depository facilities for commodities. SMC is empaneled with both NCDEX & MCX.

SMC Research Based Advisory Services

SMC’s massive R&D facility caters to the need of Investors, who are continuously in need of opportunities for striking rich rewards on their investment. SMC has one of the most advanced, hitech inhouse R&D wing with some of the best people, process and technology resources providing complete research solutions on Equity, Commodities, IPOs and Mutual Funds. SMC offers proactive and timely world class research based advice and guidance to its clients so that they can take informed decisions.

SMC Investor Awareness Forum

SMC’s dedicated team of professionals is conducting investor meet/seminars across India . SMC believes that a well-informed investor is an empowered investor. SMC also seeks its client’s feedback on its services in these Investor meets.

SMC Global Securities : Money Wise Be Wise !

How SMC helps you in choosing right mutual funds schemes?

SMC Global Securities Money wise Be Wise

SMC Global Securities Money wise Be Wise

SMC offers distribution and collection services of various schemes of all Major Fund houses and IPOs through its mammoth network of branches across India .

They are registered with AMFI as an approved distributor of Mutual Funds.

They assure one a hassle free and pleasant transaction experience when he/she invest in mutual funds and IPOs through them. They are registered with all major Fund Houses including Fidelity, Franklyn Templeton etc.

They have a distinction of being leading distributors of IPOs. Shortly they will be providing the facility of online investment in Mutual Funds and IPOs.

SMC Global Securities : Money Wise Be Wise !

  • http://www.smcindiaonline.com/index.asp
  • Every Investor is Unique,Every Solution is Unique.

    SMC

    Product & Services
    Product & Services

    Product and Services from SMC Global !

    SMC Global Securities : Money Wise Be Wise !

    Equity & Derivative Trading

    SMC Trading Platform offers online equity & derivative trading facilities for investors who are looking for the ease and convenience and hassle free trading experience.

    SMC provides ODIN Application, which is a high -end, integrated trading application for fast, efficient and reliable execution of trades.

    One can now trade in the NSE and BSE simultaneously from any destination at their convenience. They can access a multitude of resources like live quotes, charts, research, advice, and online assistance helps them to take informed decisions.

    One can also trade through SMC’s branch network by registering with SMC as their client.

    One can also trade through SMC on phone by calling SMC’s designated representatives in the branches where he/she is registered as a client.

    Clearing Services

    SMC is a clearing member in NSE (F&O), BSE(F&O),MCX, NCDEX,and DGCX. SMC is clearing massive volumes of trades of its trading members in this segment.

    Commodity Trading

    SMC is a member of 3 major national level commodity exchanges, i.e

    National Commodity and Derivative Exchange(NCDEX),

    Multi Commodity Exchange (MCX) and

    National Multi Commodity Exchange of India(NMCE) and offers one a trading platform of NCDEX, MCX and NMCE.

    One can get Real-Time streaming quotes, place orders and watch the confirmation, all on a single screen. SMC uses technology using ODIN application to provide clients with live Trading Terminals. In this segment, SMC has spread its wings globally by acquiring Membership of Dubai Gold and Commodities Exchange. SMC provides trading platform to trade in DGCX and also clear trades of trading members being a clearing member.

    Distribution of Mutual Funds & IPOs

    SMC offers distribution and collection services of various schemes of all Major Fund houses and IPOs through its mammoth network of branches across India .

    SMC is registered with AMFI as an approved distributor of Mutual Funds. SMC assures one a hassle free and pleasant transaction experience when they invest in mutual funds and IPOs through us. They are registered with all major Fund Houses including Fidelity, Franklyn Templeton etc.

    SMC has a distinction of being leading distributors of IPOs. Shortly SMC will be providing the facility of online investment in Mutual Funds and IPOs.

    Online back office support

    To provide robust back office support backed by excellent accounting standards to its branches SMC has ensured connectivity through FTP and Dotnet based Application. To ensure easy accessibility to back office accounting reports to its clients, SMC has offered facilities to view various user freindly, easily comprehendible back office reports using the link My SMC Account.

    SMC Depository

    SMC is DP for shares and commodities. It is one of the leading DP and enjoy the trust of more than 5.5 lacs investors. SMC offers a quick, secure and hassle free alternative to holding the securities and commodities in physical form. SMC is one of the few Depository Participants offering depository facilities for commodities. SMC is empaneled with both NCDEX & MCX.

    SMC Research Based Advisory Services

    SMC’s massive R&D facility caters to the need of Investors, who are continuously in need of opportunities for striking rich rewards on their investment. SMC has one of the most advanced, hitech inhouse R&D wing with some of the best people, process and technology resources providing complete research solutions on Equity, Commodities, IPOs and Mutual Funds. SMC offers proactive and timely world class research based advice and guidance to its clients so that they can take informed decisions.

    SMC Investor Awareness Forum

    SMC’s dedicated team of professionals is conducting investor meet/seminars across India . SMC believes that a well-informed investor is an empowered investor. SMC also seeks its client’s feedback on its services in these Investor meets.

    SMC Global Securities : Money Wise Be Wise !