Even though it prefers large-caps, Franklin India Flexicap's mandate permits it to invest across market cap segments. It focuses on companies that have a sustainable growth potential
Contrary to the implication of “Flexicap” the fund has clung on to large caps through its inception. The fund maintains about a quarter of its investments in mid and small cap companies. A look at the portfolio of Flexicap shows that it is extensively diversified. The average holdings are quite small and the fund managers take concentrated bets on a handful of companies.
In the beginning the fund was a little more adventurous trying out new stocks, holding them for short time before booking profits. However, of late the fund gives the impression of playing it safe. There has not been much churn in the portfolio composition and the fund has begun holding on to a select list of stocks, occasionally building its position in them. The focus is definitely on companies that have a sustainable growth potential rather than investing in short term momentum bull runs.
One can also find a few contrarian bets here; the fund has been amongst the few to have bet heavily on the automobile sector. Of late there has been a build up in the basic engineering sector. But at the end of the day, there is a strong favour for diversified companies such as Larsen and Toubro, Grasim Industries and the like.
Flexicap should definitely enter your list of probable investment options, but don't get swayed by the large cap exposure. For all practical purposes it is a multi cap fund.
To Buy Mutual Fund contact: Mr.Ram, Email id: ramfinancial.adviser@gmail.com or send SMS MF_FIFC to 09811082457
Friday, August 17, 2007
Tuesday, June 12, 2007
10 tax saving funds that can make your money grow
There are very few of us out there who don't want to make money. Most of us, in fact, are very interested in seeing our wealth grow, particularly if it happens without too much effort on our part.
If you fall in this rather large category, then mutual funds are an investment option you must consider. If you are worried about tax implications, you could invest in ELSS or tax saving mutual funds.
According to Value Research, a premier mutual fund research company, investing in certain ELSS funds would have seen the value of your money grow by more than 50 per cent in the last one year.
To put it simply, if you had invested Rs 10,000 on June 7, 2006, it would have multiplied to more than Rs 15,000 by June 8, 2007.
This table shows the top 10 tax saving mutual funds:
If you fall in this rather large category, then mutual funds are an investment option you must consider. If you are worried about tax implications, you could invest in ELSS or tax saving mutual funds.
According to Value Research, a premier mutual fund research company, investing in certain ELSS funds would have seen the value of your money grow by more than 50 per cent in the last one year.
To put it simply, if you had invested Rs 10,000 on June 7, 2006, it would have multiplied to more than Rs 15,000 by June 8, 2007.
This table shows the top 10 tax saving mutual funds:
Tuesday, May 29, 2007
Mutual Fund Houses web links
Here is a list of top Indian mutual funds:
Reliance Mutual Funds
SBI Mutual Funds
HDFC Mutual Funds
Prudential ICICI
HSBC Mutual Funds
Franklin templeton
Birla Sunlife Mutual Funds
LIC Mutual Funds
UTI Mutual Funds
Kotak Mutual Funds
ABN AMRO Mutual Funds
Fidelity India
ING Vyasya Mutual Funds
Tata Mutual Funds
Sundaram BNP Paribas Mutual Fund
Standard Chartered Mutual Fund
JM Mutual Fund
Morgan Stanley Mutual Fund
DSP Merrill Lynch Mutual Fund
Escorts Mutual Fund
Reliance Mutual Funds
SBI Mutual Funds
HDFC Mutual Funds
Prudential ICICI
HSBC Mutual Funds
Franklin templeton
Birla Sunlife Mutual Funds
LIC Mutual Funds
UTI Mutual Funds
Kotak Mutual Funds
ABN AMRO Mutual Funds
Fidelity India
ING Vyasya Mutual Funds
Tata Mutual Funds
Sundaram BNP Paribas Mutual Fund
Standard Chartered Mutual Fund
JM Mutual Fund
Morgan Stanley Mutual Fund
DSP Merrill Lynch Mutual Fund
Escorts Mutual Fund
Tuesday, April 17, 2007
Re at 41.85, inflation may come down
A globally-distressed dollar is turning out to be good news for Indians. With the dollar coming under pressure against most major currencies, the rupee has surged to close at a nine-year high of 41.85/86 against the dollar, up from Friday’s 42.51.
The global weakness of the dollar, coupled with the resumed inflows from foreign institutional investors (FIIs) and the tightening of domestic rates will ensure that traders buy the rupee, while the dollar is sold. A stronger rupee would ease inflation, as it brings down the cost of imports — particularly of crude oil. Indians will also not feel the global rise in gold prices as most of the increase will be offset by a cheaper dollar. For individuals, a weaker dollar means cheaper foreign holidays and the possibility of a fall in prices of imported electronics.
IT majors like TCS have been bracing for a weakening dollar. TCS on Monday announced that it has obtained a $1-billion hedge at a price range of 43.5-44.00. However, small exporters who do not have opportunity to hedge will be worst hit.
Clothing Manufacturers’ Association of India president Premal Udani said: “It’s already come to a stage where I might have to close down my factories. I have to quote 10% higher price and no one will be willing to buy at that price.” He reckons that many textile manufacturers are already exporting at a loss, because textile exporters work at margins lower than 10% and buyers aren’t willing to trade downwards from last year’s prices. The biggest exporters in the four sectors normally wouldn’t cover more than 50% of their foreign currency exposure. The textile industry foresees a drop of 20% in export targets for the fiscal ending March 2008, down to $10 billion from an expected $12 billion.
A currency appreciation of 10% will be hard to overcome, even as exporters managed to override the appreciation over the last year. “Over the past year, industries were able to cope with appreciation as well as a reduction in peak import duty to 7.5% due to increased productivity,” says Ajit Ranade, chief economist, Aditya Birla Group.
Traders felt that there is a strong likelihood that the central bank could be deriving comfort from the dollar weakening in offshore markets. Unless the RBI starts intervening aggressively in the forex market, the rupee is likely to continue strengthening against the dollar. As recently as July 2006, the rupee had touched a low of 47 against the dollar.
The global weakness of the dollar, coupled with the resumed inflows from foreign institutional investors (FIIs) and the tightening of domestic rates will ensure that traders buy the rupee, while the dollar is sold. A stronger rupee would ease inflation, as it brings down the cost of imports — particularly of crude oil. Indians will also not feel the global rise in gold prices as most of the increase will be offset by a cheaper dollar. For individuals, a weaker dollar means cheaper foreign holidays and the possibility of a fall in prices of imported electronics.
IT majors like TCS have been bracing for a weakening dollar. TCS on Monday announced that it has obtained a $1-billion hedge at a price range of 43.5-44.00. However, small exporters who do not have opportunity to hedge will be worst hit.
Clothing Manufacturers’ Association of India president Premal Udani said: “It’s already come to a stage where I might have to close down my factories. I have to quote 10% higher price and no one will be willing to buy at that price.” He reckons that many textile manufacturers are already exporting at a loss, because textile exporters work at margins lower than 10% and buyers aren’t willing to trade downwards from last year’s prices. The biggest exporters in the four sectors normally wouldn’t cover more than 50% of their foreign currency exposure. The textile industry foresees a drop of 20% in export targets for the fiscal ending March 2008, down to $10 billion from an expected $12 billion.
A currency appreciation of 10% will be hard to overcome, even as exporters managed to override the appreciation over the last year. “Over the past year, industries were able to cope with appreciation as well as a reduction in peak import duty to 7.5% due to increased productivity,” says Ajit Ranade, chief economist, Aditya Birla Group.
Traders felt that there is a strong likelihood that the central bank could be deriving comfort from the dollar weakening in offshore markets. Unless the RBI starts intervening aggressively in the forex market, the rupee is likely to continue strengthening against the dollar. As recently as July 2006, the rupee had touched a low of 47 against the dollar.
Wednesday, February 28, 2007
Sunday, February 25, 2007
Equities vs Equity Funds: A cost-benefit analysis
India has truly become a tax haven. If you are willing to take market-related risks, you can arrange your affairs in such a fashion that irrespective of the size of your funds, you do not have to pay even one single rupee as tax, legally!
Successive recent finance ministers, with a view to giving a boost to the share market, have doled out many tax concessions to the income from:
(i) Equities traded on a recognised stock exchange in India, and
(ii) Equity-based MF schemes.
Now, all that you have to do is to park all your investible funds in either of these two avenues and relax. The dividends are tax-free, and so are the long-term capital gains. The only question that needs an answer is — which of the two avenues should you choose?
Table 1 above presents a comparative gist of all the currently prevalent structure of equities and equity-based MF schemes.
Successive recent finance ministers, with a view to giving a boost to the share market, have doled out many tax concessions to the income from:
(i) Equities traded on a recognised stock exchange in India, and
(ii) Equity-based MF schemes.
Now, all that you have to do is to park all your investible funds in either of these two avenues and relax. The dividends are tax-free, and so are the long-term capital gains. The only question that needs an answer is — which of the two avenues should you choose?
Table 1 above presents a comparative gist of all the currently prevalent structure of equities and equity-based MF schemes.
Mutual Funds
There are so many definitions for mutual funds some of them are :
These are mutually owned funds invested in diversified securities. Shareholders are issued certificates as evidence of their ownership and participate proportionately in the earnings of the fund.
An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.
An investment company that pools the money of many individual investors and uses it to buy a diversified portfolio of securities.
stile there are so many definitions.
These are mutually owned funds invested in diversified securities. Shareholders are issued certificates as evidence of their ownership and participate proportionately in the earnings of the fund.
An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.
An investment company that pools the money of many individual investors and uses it to buy a diversified portfolio of securities.
stile there are so many definitions.
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