Prajna Capital |
- Religare Bank Debt Fund - Religare NFO
- Why investors should pay for financial advice ?
- Gold and its co-relation to various asset classes
| Religare Bank Debt Fund - Religare NFO Posted: 13 Dec 2012 04:02 AM PST The fund will aim to generate optimal returns by investing in a portfolio of debt and money market instruments issued primarily by banks. Scheme details Fund manager The fund will be managed by Nitish Sikand while Neelesh Dhamnaskar will work as a dedicated fund manager for foreign securities. Nitish has more than 12 years of experience in fixed income markets and product development. Prior to joining Religare AMC, he was working with ICICI Bank, JM Financial Asset Management Company and Citicorp Maruti Finance. Neelesh has around 7 years of experience in equity research. Previously, he has worked with ENAM Securities Direct, KR Choksey Shares and Securities and Rathi Securities. Fund house Religare Asset Management Company was set up in 2005. Its assets under management averaged over ` 12,600 crore for the quarter ending September, 2012. Category details
This is An open-ended short-term income fund for the cautious investor ----------------------- Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now  |
| Why investors should pay for financial advice ? Posted: 13 Dec 2012 03:14 AM PST Call 0 94 8300 8300 (India)
Every time I meet friends who are financial advisers, two completely dichotomous views emerge. One set tells me that investors are unwilling to pay fees for advice and it is, therefore, tough to be in the advisory business. The other group tells me that the markets have changed and investors are more than willing to pay. While there are greedy investors, who may seek something for nothing, many believe that investors will pay for visible value from their financial advisers. The value proposition is just being built and it's still early days. Building in an environment of trust deficit also makes it tough for financial advisers to price themselves appropriately.
The first roadblock in buying a financial service is the difficulty in establishing the proof of concept. If you buy a cup of coffee, the first sip tells you whether it's the right product or not. When you buy a financial service, you do not know what to expect and find out whether you've made the right decision much later in the future. When you pay a financial adviser, you have no idea if the advice is of good quality and worth paying for. If you discover later that it's wrong, the damage is already done. Worse, the adviser has made his money while you have lost yours. The reluctance to pay comes primarily from the difficulty in identifying, trusting and buying a mere promise, whose quality is untested. It is in this negative environment that advisers are trying to build a reputation and earn a fee. The advisers who are charging a fee have built trust and reputation over a period of time. They tend to work with a few clients in a role similar to that of a family doctor. The value they add comes from their ability to offer a range of solutions. Some do not execute deals for the customer and are fee-only financial advisers. They do not look for scale, but operate as boutiques with staff that manages the processes and paperwork. This model takes time and referrals before a client base can be built. It is also inherently not amenable to scale. This is because the value proposition of customised solutions gets diluted with numbers. Earning a fee from the customer remains tough due to the low visibility of the value proposition. It may lie in multiple layers between the family doctor type of boutique and the standardised financial plan. Not all investors may be willing to make the shift from buying financial products to paying for a comprehensive plan that takes over their finances. Perhaps small victories is what the profession needs. Why not enable a large set of households to own their first car, buy their first home, or take an overseas vacation? These goals may not be as righteous as saving for children or retirement, but may be real aspirations that need an adviser's help. Besides, the proof of concept may be concrete and early enough for investors to begin to trust their advisers. Disclosing the entire family's finances and paying an annual fee for the 40-page comprehensive financial plan may not be a step everyone may be willing to take.
--------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
Happy Investing!!
We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
OR
You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Best Performing Mutual Funds
Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now  |
| Gold and its co-relation to various asset classes Posted: 13 Dec 2012 12:31 AM PST Call 0 94 8300 8300 (India) Gold is burning bright. And everyone wants a piece of the yellow metal. Bolstered by rating agency Standard & Poor's (S&P's) downgrade on outlook of US debt from stable to negative, experts predict a brighter future for the yellow metal. Globally, gold has marched past the $1,500-per ounce mark whereas in India, the yellow metal has crossed . 22,000 per 10 gram level. Macroeconomic factors and demand-supply dynamics are in favour of gold. However, most investors find themselves in a fix. With prices touching new highs at regular intervals, they are finding it difficult to take a call on the precious metal. The question which everyone would like to ask — is it wise to buy gold at such a 'high' level? Is gold ruling high? For all its glitter, gold doesn't lend itself easily to valuation. Since gold does not generate cash flow like interest or dividend like bonds or equities, respectively, ascertaining the value of gold is a bit difficult. A better way would be to compare gold with other variables to decide its real value. GOLD VERSUS SILVER Let's take a look at its ratio with silver, another precious metal that is attracting a lot of investor interest lately. Both these metals have a very long trading history and their long-term ratio stands at 55. At the current price of $46 for an ounce of silver and $1,505 per ounce of gold, the ratio works out to 33. What if the ratio were to revert to mean? If the silver prices were to stay where they are, an ounce of gold will be priced at $2,530. Many would not be comfortable with this number and will attribute it to the rally in silver prices. So let's look at some other comparisons. GOLD VERSUS CRUDE Crude oil prices are the next stop. Crude oil being the chief source of energy, rising prices are inflationary in nature. Gold is the ultimate tender and tries its best to protect the purchasing power. Naturally, their prices share a long-term relationship. The long term gold-crude oil ratio – how much gold can be sold to buy a barrel of crude oil – stands at 15. At the current prices, the ratio stands at 13. Gold has to rise to $1,845 per ounce, if the ratio were to revert to mean and crude oil were to remain at the current level. As the crude-producing nations in Middle East and North Africa (MENA) are experiencing volatile political upheavals, crude may not correct in the short term. That makes a case for gold moving up. GOLD VERSUS INFLATION Another way is to look at inflation adjusted (based on the US consumer price index), the price of gold since 1980. The price of gold should be $2,303 per ounce in that case. Across the globe, governments find it easier to print currency notes to fund their deficit. Since 1980, the money supply growth the world over has exploded due to various policy (monetary) and non-policy reasons. Global money supply (M3) growth since 1980 is around 9-10 times as per various estimates. Whereas gold prices since 1980's peak are up just by 1.7 times. If all the money supply growth since 1980 has to be hypothetically backed by gold by global central banks, the price of gold would be anywhere around $6,500-7,000 per ounce. THE DRIVERS Ø The reckless printing of currency notes and the commodity price-driven inflation are robbing most currencies of their purchasing power. Ø World over investors are trying to find a better currency. Ø Gold is the only currency that has existed for the past 5,000 years and has emerged as the only supply-constrained currency today. Ø Central banks have been buying gold since the last decade to maintain their reserves in a global tender in their efforts to diversify away from the US dollar. Ø Inflation and low interest rates have resulted in low or negative real interest rates — real interest rate is nothing but the rate of interest payable minus the rate of inflation. Ø A low real-interest rate environment is conducive for rising gold prices. Ø As the fixed-income instruments fail to protect the purchasing power of investors, they prefer to stay invested in gold to protect their purchasing power. Ø The demand for gold as a safe haven is undoubtedly very high. Ø As crude inches higher on the back of the unrest in Mena, the risk aversion among investors across the globe is expected to grow. Ø A possibility of a sovereign default in Europe can further add to the worries. That would make a strong case for investing in gold. Ø As the volatility in global financial markets is expected to be in the higher band, gold will remain as a preferred bet for investors.
Before you rush to buy the gold exchange-traded fund or call your investment advisor to invest in a gold fund of funds, include these negative factors also in the picture. A calmer MENA, cooler crude oil prices, and financially stable European nations and appreciation in the US dollar on the back of a strong US economy are some of the key risks to strong gold prices. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms Best Performing Mutual Funds
Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now  |
| You are subscribed to email updates from Prajna Capital - An Investment Guide To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment