Posts Tagged ‘fund manager’

Mutual Funds : Marginalise Your Investment Risk

Hello Friends here we come up with another write up on “SMC Gyan Series”.

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Mutual Funds : Marginalise Your Investment Risk

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Topic is “Mutual Funds : Marginalise Your Investment Risk
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Mutual funds are the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing.

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Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit.

Keep in mind the points listed below and you could at least marginalize your investment risk:

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1) Past performance –

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While past performance is not an indicator of the future it does throw some light on the investment philosophies of the fund, how it has performed in the past and the kind of returns it is offering to the investor over a period of time.

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Also check out the two-year and one-year returns for consistency.

How did these funds perform in the bull and bear markets of the immediate past?

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Tracking the performance in the bear market is particularly important because the true test of a portfolio is often revealed in how little it falls in a bad market.

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2) Know your fund manager

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The success of a fund to a great extent depends on the fund manager.

The same fund managers manage most successful funds.

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Ask before investing, has the fund manager or strategy changed recently?

For instance, the portfolio manager who generated the fund’s successful performance may no longer be managing the fund.

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3) Does it suit your risk profile?

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Certain sector-specific schemes come with a high-risk  high-return tag.

Such plans are suspect to crashes in case the industry loses the market men fancy.

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If the investor is totally risk averse he can opt for pure debt schemes with little or no risk.

Most prefer the balanced schemes which invest in the equity and debt markets.

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Growth and pure equity plans give greater returns than pure debt plans but their risk is higher.

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4) Read the prospectus

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The prospectus says a lot about the fund.

A reading of the fund’s prospectus is a must to learn about its investment strategy and the risk that it will expose you to.

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Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.

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But remember that all funds carry some level of risk.

Just because a fund invests in does not mean it does not have significant risk.

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Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you.

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5) How will the fund affect the diversification of your portfolio?

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When choosing a mutual fund, you should consider how your interest in that fund affects the overall diversification of your investment portfolio.

Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk.

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6) What it costs you?

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A fund with high costs must perform better than a low-cost fund to generate the same returns for you.

Even small differences in fees can translate into large differences in returns over time.

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Finally, don’t pick a fund simply because it has shown a spurt in value in the current rally.

Ferret out information of a fund for at least three years.

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The one thing to remember while investing in equity funds is that it makes no sense to get in and out of a fund with each turn of the market.

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Like stocks, the right equity mutual fund will pay off big — if you have the patience.

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Similarly, it makes little sense to hold on to a fund that lags behind the total market year after year.

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SMC Global Securities : Money Wise Be Wise !

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

Before You Realise Your Loved Ones Will Grow 🙂

If you find yourself asking the question –

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

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

…then 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 –

Why should I Save ?

Why should I Invest ?

Where do I Invest ?

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

…then 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.

Indian Stocks Rise; Bharti, Telecom Companies Lead Advance

Bull & Bears

Indian stocks rose for the seventh day, driving the benchmark index to its highest monthly gain in more than a year. Telecom shares led gains after the government said it aims to auction high-speed mobile phone service permits.

Bharti Airtel Ltd., the largest mobile operator, jumped to a three-month high on news that so-called 3G licenses will be auctioned off at a starting price of 35 billion rupees ($716 million).

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 108.66, or 0.7 percent, to 15,889.73, according to preliminary closing prices. The gauge gained 4.3 percent this week. The S&P CNX Nifty Index on the National Stock Exchange advanced 0.8 percent to 4,723.85. The BSE 200 Index rose 0.7 percent to 1,945.33.

Private Equity Funds Shying Away from PIPEs

Private equity-money-indian-rupees

Indian private equity firms are currently disinclined to conduct private investments in public equity (PIPE) deals, according to a report in the Business Standard. Their reticence is thought to be due to the recent secondary market crash, and the uncertainty that ensued.

According to the report, which cites a study by Venture Intelligence, private equity firms announced 24 PIPE deals in H1 2009, which were worth around $349m – a massive 68 percent decline on H1 2008’s $1.58bn, across 68 deals.

In addition, PIPE deals comprised 12 percent of the total private equity deal value – $2.89bn – for H1 2009.

For instance, in 2008, the value of Pipe investments worth $1.67 billion eroded to $1.22 billion, an absolute loss of $0.45 billion (26.85 per cent), said an SMC Capital report.

Vishal Tulsyan, chief executive officer of Motilal Oswal suggested to the Business Standard that losses arising from mark-to-market accounting may be partially to blame for this trend.

“PEs are staying away from PIPE deals due to the mark-to-market issue. PEs invest for a time-frame of four-six years. Since the market is uncertain, one would not like to take risk,” he said.

Furthermore, valuations have risen in the last nine months or so. “PIPE deals are not cheap anymore. The capital market makes sense for people who are looking at quick appreciation. The market has been range-bound and very volatile,” said Alok Gupta, the chief executive officer of Axis Private Equity, speaking to the Business Standard.

Private Equity Players Making Smart Exits!!

private equity players

Private equity players have finally made smart exits after the market turned northward during the last five months.

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PE players sold PE shares worth about Rs 1,500 crore during this period using the bulk and block deal window.

According to an ET analysis, selling primarily took place during the month of May and August, 2009 and major sellers included Chrys Capital and Citigroup Venture Capital.

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According to Jagannadham Thunuguntla, equity head at SMC Capitals, the severe correction in the stock market during the year 2008 resulted in substantial losses to private equity players which invested in listed companies.

The recent upward movement of the market helped in recovery of their losses.

This is also the main reason for private equity players selling their stakes.

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As per another Expert, there are two main reasons for exit of PE players.

“Everyone is doing a business and one needs cash to carry out businesses. Market crash during September-October last year evaporated the liquidity” said an expert.

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The positive rally of the equity market started on March 9, 2009. Since then the Sensex, has gone up by more than 84%.

In a block deal a minimum quantity of 5 lakh shares or shares with a minimum value of Rs 5 cr is transacted through a single transaction window provided by the stock exchange.

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Whereas, if more than 0.5% of the number of equity shares of a company gets traded under a single client code, it is known as bulk deal.

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Movers and Shakers of Today’s Market : 22nd AuG,2009 :)

gainers and Losers

MOvers and Shakers

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Here we present you with the data of Top Gainers and Losers in BSE Index and NSE Nifty for today.

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Top Gainers shows the list of stocks that have gained the most (% terms) compared to their last closing prices. 🙂

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Top Losers shows the list of stocks that have lost the most (% terms) compared to their last closing prices.

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1. Top Gainers in Sensex

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Top Gainers Sensex

2. Top Losers in Sensex

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Top Losers Sensex

3. Top Gainers in Nifty

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Top Gainers

4. Top Losers in Nifty

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Top Losers Nifty


Click HERE to view company’s detailed stock quote and company profile.

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Top Gainers shows the list of stocks that have gained the most (% terms) compared to their last closing prices. 🙂

Top Losers shows the list of stocks that have lost the most (% terms) compared to their last closing prices. 😦

VC/PE funds set their sight on Micro Finance companies :)

Venture Capitalists

Venture capitalists/PE (private equity) funds are now looking at investing in micro finance companies in India.

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According to observers, around Rs 1,000 crore is expected to be invested by venture capitalists/PE funds in the Indian micro finance space (MFIs) this year.

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In fact, of the 50 private equity deals worth $1 billion in banking and finance in the last 18 months, MFIs alone accounted for 20 deals amounting to $200 million.

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Apart from MFI focused funds, other venture capitalists and PE funds who consider opportunities in the financial services space are now adding micro finance to their portfolio.

Many venture capitalists are excited about investing in this space now.

Many MFIs especially south-based ones have the right professionals and processes in place. Early stage investors are keen to enter this space.

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The venture fund does early stage investment and primarily focuses in healthcare and technology.

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Many MFIs have also demonstrated scalability of the business and also boast of a good management structure, essential elements for VC/PE funding.

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