Reliance Equity Advantage Fund - Avoid
Friday, June 29, 2007
Retail Value Investors should avoid the NFO of Reliance Equity Advantage Fund. In quest to become the number one fund house in India and encashing on the the ignorance of Indian retail investors, Reliance Mutual Fund is launching a fund every month which is totally unnecessary.
Reliance Equity Advantage Fund is a Index Fund which will invest 80% in Nifty stocks and the balance 20% in other equities which the fund manager deems fit. Avoid the NFO.
Retail value investors should stick to value investing by means of Systematic Investment Plan.
Published by DalalStreet Business @ 9:18 PM
PAN a Must for Investors in Mutual Fund
Wednesday, June 13, 2007
This July [2007], officials in the Finance Ministry have made it mandatory for investors taking the mutual fund route to furnish their PAN - Permanent Account Number for even a investment as low as Rs 50. Most of the investment these days is coming from smaller cities and towns where people are taking the SIP route to build their nest.
So what happens now ? After July-2007, deadline your fresh investments will be subject to providing PAN. Few months later, even investors with inactive folios where they hold Mutual Fund units will also have to furnish PAN or else their units will be frozen. Recall what happened to DEMAT accounts where PAN was not furnished.
India currently has 3% of it its investors in Mutual Funds, i.e 30 Million or 3 crore.
Published by DalalStreet Business @ 5:21 PM
SBI Infrastructure Fund - NFO
Tuesday, June 05, 2007
ICICI Securities Research Team is asking investors to subscribe to the New Fund Offering of SBI Infrastructure Fund.
- Close-ended growth Fund with 3 - year tenor
- NFO closes on 8th June 2007
- Scheme reopens for continuous repurchase from 6th July 2007
- Load Structure (during the NFO) 1)Entry load will not be charged. 2)Exit load - Nil. (To be equivalent to the unamortized initial issue expenses outstanding on a daily basis in the form of repurchase NAV)
- Minimum investment - Rs. 5000 and in multiples of Rs. 1
- NAV and repurchase NAV to be disclosed on a daily basis
- Dividend and Growth options available. Payout facility is available only during the close-ended tenor of the scheme
- Dividends will be completely tax-free. Long term capital gains to be completely tax-free. Short term capital gains to be taxed at 10% (plus applicable surcharge and cess)
- Automatic conversion into open-ended scheme on maturity.
- SIP/SWP/ STP facilities will be made available only after the scheme goes open-ended.
Published by DalalStreet Business @ 1:45 PM
