Product Updates

Starting tomorrow, ATM use over five times per month will attract fee Using ATMs to withdraw money or for other purposes like balance enquiry beyond five times in a month will attract a levy of Rs 20 per transaction from tomorrow. As per the Reserve Bank's new guidelines that comes into force from tomorrow, bank customers in six metros-- Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore-- are allowed to withdraw money and/or carry out non-financial transactions like mini-statements at ATMs of banks, where they hold saving/current accounts, free of charge only five times a month. Every transaction beyond this threshold will be charged Rs 20 per use. Besides, the number of free transactions at ATMs (Automated Teller Machines) of non-home banks has been cut to three times a month from five times. "Taking into account the high density of ATMs, bank branches and alternate modes of payment available to customers, the number of mandatory free ATM transactions fo...

Fiscal deficit in H1 almost 83% of full-year target India's fiscal deficit reached nearly 83 percent of its full-year target in the first half of the year, giving the government a tough job meeting its budget target even with help from a fall in global crude prices that will reduce the oil subsidy bill. A 25 percent fall in oil prices since June has helped Prime Minister Narendra Modi's government contain oil and fertiliser subsidies, but revenue growth has been slow. In his maiden budget, Finance Minister Arun Jaitley had targeted a reduction in the fiscal deficit to 4.1 percent of the gross domestic product in the current fiscal year, down from 4.5 percent in the previous year. On Thursday, Prime Minister Modi ordered bureaucrats to stop flying first class, as part of a austerity drive aimed at reducing discretionary spending by 10 percent in the fiscal year to March 2015. India's fiscal deficit was Rs 4.39 lakh crore ($71.5 billion) during April-September,...

Very Informative , Must Read & Follow the instructions to enjoy healthy life. ये जानना बहुत जरुरी है ... हम पानी क्यों ना पीये खाना खाने के बाद। क्या कारण है | हमने दाल खाई, हमने सब्जी खाई, हमने रोटी खाई, हमने दही खाया लस्सी पी , दूध,दही छाझ लस्सी फल आदि|, ये सब कुछ भोजन के रूप मे हमने ग्रहण किया ये सब कुछ हमको उर्जा देता है और पेट उस उर्जा को आगे ट्रांसफर करता है | पेट मे एक छोटा सा स्थान होता है जिसको हम हिंदी मे कहते है "अमाशय" उसी स्थान का संस्कृत नाम है "जठर"| उसी स्थान को अंग्रेजी मे कहते है " epigastrium "| ये एक थेली की तरह होता है और यह जठर हमारे शरीर मे सबसे महत्वपूर्ण है क्योंकि सारा खाना सबसे पहले इसी मे आता है। ये बहुत छोटा सा स्थान हैं इसमें अधिक से अधिक 350GMS खाना आ सकता है | हम कुछ भी खाते सब ये अमाशय मे आ जाता है| आमाशय मे अग्नि प्रदीप्त होती है उसी को कहते हे"जठराग्न"। |ये जठराग्नि है वो अमाशय मे प्रदीप्त होने वाली आग है । ऐसे ही पेट मे होता है जेसे ही आपने खाना खाया की जठराग्नि प्रदीप्त हो गयी | यह ऑटोमेटिक है,जेसे ही अप...

India's largest realty company DLF will file its affidavit against market regulator Securities and Exchange of India (Sebi)'s order barring it from raising money from the capital markets.    On Saturday, DLF will file the affidavit with the Securities' Appellate Tribunal seeking redemption of the money it has invested in mutual funds. The affidavit will state both the purpose to which the money will be put as well as the amount required.    SAT is expected to give an interim order on Wednesday November 5.    Hit hard by a Sebi order barring it from capital markets, realty giant DLF on October 22 had filed an appeal with SAT to allow it to redeem thousands of crores of funds currently locked in mutual funds and other securities.    In its appeal, DLF had said it needs to redeem funds of about Rs 2,000 crore in MFs as well as certain bonds that are worth a few more thousands of crores, but that the Sebi order has restrained it fr...

Dear Investor,   Warm Greetings ! Looking for Fixed & Higher Return ?   Invest in Secured redeemable NCD from Srei Infrastructure Finance Limited. Last few days Left !!!  Issue closes 31/10/2014. About Srei Infrastructure Finance Limited : ------------------------------------------- Pioneer in Infrastructure Financing in our Country. A notified "Infrastructure Finance Company". Accorded "Public Finance Institution" status. Networth of Rs.3,372 Crs. & Net Profit of Rs.137 Crs. (31/03/2014). Issue Highlights : --------------------------- Very attractive interest rates of 11.75% for 5 years, 11.50% for 3 years & 11.25% for 2 years. Monthly option also available.   0.25% additional interest for existing Bond Holders/Shareholders & Senior Citizens.  Demat & Physical options available. NO TDS for any investment amount ONLY if maintained in Demat option. Issue size Rs.250 Crs. with ...

Stock investors may be celebrating, but even those who invested in tax free bonds have got reasons to cheer. Tax-free bonds issued in 2013 and earlier this year have churned out terrific returns of up to 25%. The 20-year tax-free bond from the National Housing Bank (NHB), which hit the market on 30 December 2013, is quoting at Rs 6,225, a return of 24.5% on its issue price of Rs 5,000. Other bonds issued around the same time have also given good returns. A combination of factors has led to the rally in these long-term bonds. First, there is no new supply of tax free bonds because the 2014 Budget did not allow new tax-free bond issues. Second, the Budget also changed the tax rules for debt mutual funds, which drove more high net worth investors to tax-free bonds. Lastly, the recent fall in inflation have raised hopes of an early rate cut by the RBI and this pushed up bond prices in the secondary market. Should you sell now? The 22-24% rise in bond prices may prompt many inve...

Bond yields likely to fall, rupee might weaken The yield on the 10-year benchmark government bond is already at a one-month low. The yield ended at 8.36 per cent on Wednesday compared to the previous close of 8.37 per cent. The bond market was shut on Thursday and Friday on account of Diwali. "The yield on the 10-year bond may fall to 8.30 per cent this week. The broad trading range is seen at 8.30-8.38 per cent. The bias is towards falling yields," said the head of treasury of a state-run bank. The Street expects that six months down the line, the 10-year yield might even fall to eight per cent. Consumer Price Index-based inflation cooled to 6.46 per cent in September, the lowest since January 2012, owing to falling prices of fruits and vegetables. The rupee is expected to fall this week, weighed down by month-end dollar demand from importers and dollar demand after a two-day holiday in the domestic foreign exchange market. "The rupee may weaken to 6...

Another blow to DLF; MFs not allowing to redeem Rs2K-crore investments MUMBAI: In yet another blow to fortunes of the country's largest real estate developer DLF, domestic mutual funds are holding off from redeeming investments amounting to more than Rs2,000 crore made by the company in their schemes. This was disclosed by DLF on Wednesday at the hearing of the Securities Appellate Tribunal (SAT) of the company's appeal against the recent Securities and Exchange Board of India (Sebi) order banning the developer and six top executives from accessing the capital market for three years. The order has triggered a steep slump in the company's shares. Immediately after the Sebi order, the Association of Mutual Funds of India (AMFI) grouping sought clarification from the regulator on possible redemptions by DLF. Sebi hasn't replied officially to this query. "We have sought clarification from the market regulator on DLF redemption. However, Sebi hasn't responded,...

                 

Arbitrage schemes boost MF participation in derivatives The increase in the number of equity-focused arbitrage funds, following the tax changes on debt mutual funds (MFs), has pushed derivative usage by fund houses. Data from the exchanges show the average daily turnover of MFs in the derivatives category rose to Rs 1,230 crore in September, almost double that in June. The participation has tripled compared to daily turnover of Rs 423 crore at the start of the year. Around the expiry of monthly contracts, on the last Thursday of every month, the turnover has been as high as Rs 6,000 crore. "There has been an increase in the use of derivatives in the industry, mainly because the interest in arbitrage funds has spiked up. Typically, when there is volatility in the market, arbitrage funds become popular," said Dinesh Khara, managing director, SBI MF. Arbitrage funds are low-risk equity schemes which try to benefit from the price differential between the cash and d...

MF equity assets hit high of Rs 2.91 lakh crore in Q2 Equity assets of the mutual fund industry surged to a new high of Rs 2.91 lakh crore in the July-September quarter, according to a report by rating agency Crisil. Equity funds assets went up 23.49 per cent by Rs 55,381 crore in the latest quarter to its fresh record high of Rs 2.91 lakh crore. Equity assets reported inflows of Rs 17,189 crore in the first two months of the quarter as per latest inflowoutflow data provided by AMFI. The Indian mutual fund industry's average assets under management (AUM) scaled new highs of Rs 10.59 trillion in the quarter ended September, according to the association of mutual funds in India (AMFI). Total AUM increased 7.24 per cent by Rs 71,453 crore. Industry assets were primarily boosted by a surge in equity AUM and supported by gains in short duration debt funds, the Crisil report said. Top fund houses HDFC Fund, ICICI Prudential Mutual Fund and Reliance Mutual Fund logged hi...

In equity mutual funds (MFs), is there a way to know how dividends from stocks are used? --Remy Sakhija Fund managers of equity MFs invest by buying shares of companies from the stock market. These companies could, periodically, declare dividends for share holders, i.e. distribute a portion of the profits made by the company. This money comes into the cash account of the fund. This same account also holds the money accrued when the fund manager sells some shares from the portfolio. The money in this account is available for the fund manager to invest in the market as and when opportunities arise. The fund manager could also decide to distribute part of this surplus cash as dividends (if there is a dividend option in the scheme) to the unit holders of the fund. So, in summary, the dividends from stock holdings are either held as cash or re-invested in the market in the case of growth schemes, and may, additionally, be distributed as dividends in the case of dividend schemes. If it i...

In an interview with ET Now, Mahesh Patil, Co-Chief Investment Officer, Birla Sunlife Mutual Fund, shares his views on the credit policy, rate cut, markets and a few sectors. Excerpts: ET Now: From a money manager's point of view, would you call RBI monetary policy hawkish, dovish or a balanced one? Mahesh Patil: In terms of the announcement, it was pretty much in line with market expectations. The cut in interest rates would probably take some more time to come in. So on that basis compared to the earlier policy, it was slightly hawkish. But, as we observe inflation trends, they are showing signs of cooling off. Even global commodity prices have weakened. So, inflation trajectory should be moving down. The only event is the hike in interest rate by the US and post that one would see the RBI taking any form of action on interest rates. ET Now: How prolonged could this pause be from RBI on the rate front? In the worst case scenario, could it go beyond the second half o...

Small & mid-caps on mutual funds' buy list At a time when flows from foreign institutional (FII) investors have taken the markets to new highs, domestic mutual fund managers have focused on mid- and small-cap stocks. According to the National Stock Exchange (NSE) and BSE bulk deal data, fund houses such as HDFC Mutual Fund, Reliance Mutual Fund, IDFC Mutual Fund, SBI Mutual Fund and DSP BlackRock have bought shares of mid- and small-sized companies (market capitalisation of Rs 450-1,000 crore) since July this year. During this period, mutual funds, fence-sitters for most of the past year, have invested a total of Rs 12,806 crore in the markets, compared with a net FII investment of Rs 25,549 crore. "We have expanded our investment universe by going down the market-cap club to take advantage of the opportunities in that space. Given the greater confidence in the macro-economy and the corporate environment, mid-cap companies will be the bigger beneficiaries of the u...

    Small asset management companies (AMCs) have witnessed significant erosion in their assets under fixed maturity plans, or FMPs following the adverse tax changes to debt mutual funds announced in the Union Budget in July. Mutual fund houses, including Pramerica, BNP Paribas and BOI AXA, have seen their   FMP assets   plunge between 45% and 80% since July as new tax rules have taken the sheen off the investment product popular among corporates and high networth investors. Meanwhile, the industry-wise FMP asset base has shrunk only by about 5% between July and August, as some of the bigger players have managed to convince their investors to rollover investment to enjoy tax ...