Wednesday, June 5, 2013

Prajna Capital

Prajna Capital


Mirae Asset Short Term Bond Fund

Posted: 05 Jun 2013 04:58 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Mirae Asset Mutual Fund has announced change in asset allocation and investment strategy of Mirae Asset Short Term Bond Fund.

 

The fund can now invest 20-100 percent of its assets in money market and debt instruments with residual maturity and repricing tenor not exceeding 18 months, against the previous tenor of 182 days.

 

Also, it can have a 0-80 per cent allocation to debt instruments with residual maturity and repricing tenor not exceeding 18 months, against the previous 182-days tenor.

 

The scheme will now invest in instruments with credit ratings above investment grade, with a view to deliver consistent returns while maintaining an optimum balance of yield, safety and liquidity.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Know how Even gilt funds can be risky

Posted: 05 Jun 2013 02:45 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

THE term gilt funds often evokes memories of safety and security of investments. This is only partially true and the investor has to ensure that they understand the complete details related to the investment before committing money to this area. This can also avoid a situation where the investor is left searching for answers after witnessing an unexpected position. Here are some angles related to gilt mutual fund investment that every investor should know. Higher interest rate risk The gilt funds invest in government securities and are then traded by the fund manager in the debt market.


Surprising, as this may seem, it actually results in a situation where there could be higher risk for the investor on account of interest rate risk, which is not present in some other instruments like fixed deposit.

Since, there is a lot of trading in the government securities, the investor will find that the securities are extremely sensitive to the various changes that are being witnessed on the interest rate front. For longer dated securities the changes are quite sharp. If the fund manager may have built a position; whereby expecting the interest rates and yields to behave in a certain manner, but if the opposite turns out to be true then there could be a reduction in the value of the securities. This will result in a lower net asset value and the investor will suffer in terms of either a lower return or in some cases even a negative return. Position in portfolio The gilt funds should be considered, as an investment option only when the investor knows about the working of the debt markets and the manner in which the prices of such instruments will react to different changes.

The other point is about the position that the fund will occupy in the portfolio. It should not be given a role, whereby it is supposed to meet the regular income needs of the individual because this might be possible when the times are good, but the going will be tough if the debt market conditions are not conducive. The position should be such that it is able to make use of the opportunities and deliver the required gains when the situation moves in favour of the individual. This is something that needs primary attention so that the risk of the investor is also limited. The other way in which gilt funds can be seen is using them as a route for investing only during those periods when the interest rates in the economy are expected to fall. If the rates actually fall and there are investments into long term gilt funds then the returns earned can also be above average.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Investor Vs Fund Manager

Posted: 05 Jun 2013 12:36 AM PDT

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

A fund manager relies on research and processes to pick winners, the DIY investor has only luck to fall back on

 


Despite the good long-term track record of equity funds, several people think they can make more money in the equity markets on their own. It is not known whether any of these do-it-yourself (DIY) investors actually set themselves exacting standards for beating the market index. It is, however, interesting to find out about their motivation.

There are three broad components of investment performance. The first is access to information and the ability to analyse it. The second is the need to have a process for constructing a portfolio. The way we choose from the universe of stocks, the filters that we apply to shortlist them, and the manner in which we allocate money to construct a portfolio, is a process. The third component is the ability to identify and exploit market inefficiencies. In an efficient and rational market, buyers and sellers would know beforehand the price they are willing to pay. A sustained fall in price that does not motivate buyers to step in, and only increases the number of those keen to sell, or a rise in price that brings in more and more buyers is a market inefficiency. Here, several distortions can ensue, making it possible to generate money.


Investment research firms have rigorous fundamental analysis. The best ones employ specialists who know the structural nuances of sectors. Working with published information about businesses, grasping the complexities of their finances, engaging with the management to verify their claims about the future require knowledge, skill, time and money. There are some devout groups of investors who meet and discuss stock ideas and invest on the basis of their research. Except for this small minority, most of the DIY investors may not have seen or read even a single annual report. Poor selection skill is a serious problem.


As for the investment process, there are investor groups that try to create one. In a recent conversation with financial advisers, I asked them whether they had replicated a selection process for mutual funds, even as they questioned fund managers about performance and processes. Not one of them had come even close to a process-driven investment style. Many of them, however, owned stocks, and their investors also had stocks. It does not seem important to several DIY investors to think of a process when they buy stocks. This is why they end up with portfolios that have too many stocks with too little allocation to each. They hold losing stocks without getting rid of them, or hold too many mid- and small-cap stocks, avoiding established names that feature in the Nifty index. The lack of investment strategy and process hurts DIY investors, but they are mostly oblivious to it.


What then is the source of confidence for the DIY investor that he will do better than a fund manager? A large majority of the DIY investors tends to lean on market inefficiencies. However, not all of them exploit these inefficiencies. A good number falls prey; the others make a killing. The trouble is that these losses and windfall gains are random, retaining the interest to try their luck at a very high level.


Investors seek the short-cut of a few thumb rules, actively seeking information about buying and selling. We see this manifest in so many ways. An IPO that is able to whip up media interest gets subscription since investors think that all the buyers who are queuing up cannot be wrong. We see trading interest in stocks in which the volume of trading has gone up due to insider activity. There is a keen interest in media commentaries, expert views, and stock recommendations so that trading activity can be aligned to the views expressed.


Informed investors are also aware of the inefficiencies. The fund managers who compete with one another may lean on solid research and defined processes. However, they are well aware that these can be replicated by the competition. If they did not stick their necks out to take a view, to generate an idea, to call a stock, they would all deliver average
performances. It is when they are able to use their judgement to identify what is, from what it may seem to be, that they take different portfolio positions and end up with outperformance. They have the solid foundation of research, information and process, before they layer it up with their ability to spot a winning opportunity.


There is a difference in approach when it comes to inefficiencies. Some investors may end up losing as they are a part of the problem. Other investors may make money by being contrarian and staying out. The problem is that both the fund managers and retail investors are prone to this double-edged sword. The gains are mostly by default, not design, so they cannot be replicated. That is why the same fund manager does not make money all the time; some calls go wrong anyway. However, he has the solid grounding of information and process that will rein him in. He can rebalance his portfolio and come back in the game. The simple investor, who claims to beat the manager at his own game, has nothing but luck to fall back on.

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

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