Product Updates

State-owned companies like IRFC, Hudco and NHAI to offer tax-free bonds of Rs 18,000 crore Yield-hungry investors will have reason to celebrate even after Diwali. Three state-owned companies will offer tax-free bonds of as much as Rs 18,000 crore collectively in the next two to four weeks, giving crestfallen retail investors an opportunity to earn attractive returns over a long period. Indian Railways Finance Corporation (IRFC), Housing & Urban Development Corporation (Hudco) and National Highways Authority of India (NHAI) will sell tax-free bonds that are at least five times larger than recent issuances, three market sources told ET. Individuals who could not subscribe to such bonds offered by NTPC, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) in the past two months are now expected to rush for the fresh series. NTPC, PFC and REC sold bonds worth Rs 700 crore each, which were oversubscribed multiple times. IRFC will sell tax-free bonds worth Rs 4,53...

Sovereign Gold Bonds Scheme Investors will have the option to buy sovereign gold bonds instead of physical gold this Dhanteras. Applications for gold bonds will be accepted from November 5 to November 20, 2015, while these bonds will be issued on November 26, 2015, the Reserve Bank of India said. Here are 10 things to know about gold bonds 1) Sovereign gold bonds will be issued by the Reserve Bank of India. They will denominated in particular amount of gold and linked to the price of the yellow metal. If the price of gold increases, the value of the bond goes up, benefiting investors. 2) Investors can buy a minimum of 2 units or 2 grams and a maximum at 500 grams per fiscal year. The Reserve Bank has fixed the public issue price at Rs 2,684 per gram for the sovereign gold bonds. This means the minimum investment comes to around Rs 5,400. 3) Investors will get a fixed rate of interest of 2.75 per cent per annum (payable every 6 months) on the initial value of investment. 4) The gold bo...

Have You Checked Your KYC Status? Over the past month, several mutual fund investors would have received a mail from their fund house to update their Know-Your-Customer (KYC) details. In September, the Association of Mutual Funds in India (AMFI) directed AMCs to adhere to the following requirements for individual investors from 1 November 2015: 1. Make it mandatory for all new investors to provide additional KYC details such as income details, occupation, net worth, political association, etc. 2. Not accept purchase and switch transactions for investors whose status is "KYC-On Hold", unless the investor submits the missing information or updates KYC. 3. Ensure that new investors submit Foreign Account Tax Compliance Act (FATCA) or Common Reporting Standard (CRS) declaration while opening an account. By 31 December 2015, fund houses are advised to make it mandatory for existing investors to provide the missing details above and complete IPV (In-Person Verification). Failing th...

REC Tax Free Bonds Public Issue opens on 27th Oct 2015.   Allotment on First Come First Serve Basis.   Interest Rates: For Retail Individuals (upto Rs. 10 Lacs) 10 Years : 7.14% p.a. 15 Years : 7.34% p.a. 20 Years : 7.43% p.a.   For Non-Retail: 10 Years : 6.89% p.a. 15 Years : 7.09% p.a. 20 Years : 7.18% p.a.   Issuance in Physical and Demat mode Listing BSE & NSE Rating CRISIL AAA/ Stable' by CRISIL, '[ICRA] AAA' by ICRA,'CARE AAA' by CARE, 'IND AAA/ Stable' by India Ratings & Research Private Limited ("IRRPL"). Issue Size Rs. 300 crores with an option to retain oversubscription upto Rs. 400 crores aggregating to total of upto Rs. 700 crores. Download Application Form http://59.144.72.251/IPOPDFGenWeb/brokerOnly.aspx Sent from BlackBerry® on Airtel

REC plans to garner Rs.700 crore via tax-free bonds State-owned Rural Electrification Corporation (REC) plans to raise up to Rs.700 crore through the issue of tax-free bonds this fiscal to meet various funding needs. This is on top of the Rs.300 crore already raised by the company through private placement. REC, leading lender for the power sector, is authorised to raise Rs.1,000 crore via tax-free bonds. As per the draft prospectus filed with markets regulator the Securities and Exchange Board of India (SEBI), the company's public issue of secured redeemable non-convertible bonds would be of face value of Rs.1,000 each, having tax benefits, aggregating up to the shelf limit (Rs.700 crore) by way of issuance of bonds in one or more tranches in the fiscal 2016. "The main objects clause of our Memorandum of Association permits our company to undertake its existing activities as well as the activities for which the funds are being raised through this bond issue," it...

NHAI set to tap bond market to fund projects The National Highways Authority of India (NHAI) is all set to hit the bond market to fund its ambitious highway development programme. The highway agency has finalised its plan to issue tax-free bonds next month. "We are coming out with public issue in two tranches. The first tranche for Rs 11,200 crore will come out in October-end. This would be followed by a second tranche for a little over Rs 8,000 crore in January or February 2016," NHAI chairman Raghav Chandra told HT. NHAI has been permitted to raise Rs 24,000 crore through tax-free bonds this fiscal year. It has already raised Rs 3,872 crore through private placement route on September 18. NHAI would require funds to the tune of Rs 70,000 crore this fiscal year to finance its highway expansion. The highways ministry has set a target of awarding 10,000km stretch of highways in 2015-16. Of this 5,000km has to be awarded by NHAI and the rest by the ministry. N...

Country's external debt at end-March was up 6.6% India's total external debt at end-March this year was $475.8 billion, up 6.6 per cent from the corresponding period a year earlier. This was driven mostly by an increase in external commercial borrowing (ECB) and non-resident Indians' deposits, showed data issued by the government on Friday. As a percentage of gross domestic product, external debt was 23.8 per cent at end-March from 23.6 per cent as on March 2014. Long-term debt was $391.1 bn, a rise of 10.3 per cent over March 2014. It was 82.2 per cent of the total external debt, as compared to 79.5 per cent at end-March 2014. Short-term external debt was $84.7 bn, less by 7.6 per cent over the $91.7 bn at end-March 2014, and 17.8 per cent of the total external debt from 20.5 per cent in March 2014. The share of government (sovereign) debt in total external debt was 18.9 per cent at end-March this year. "A cross-country comparison based on Internatio...

Government today fixed the floor price for selling its 10 per cent stake in Indian Oil Corp (IOC) at Rs 387 a share -- about 2 per cent below last closing -- which is likely to fetch Rs 9,302 crore to the exchequer. The government, which holds 68.6 per cent interest in IOC, will sell 24.28 crore equity shares through an offer for sale (OFC) on Monday. "... the floor price for the sale in terms of the Sebi OFS Circular shall be Rs 387 per equity share of IOC," the government said in a regulatory filing. The price fixed is 1.8 per cent lower than Friday closing of Rs 394.45 per IOC share on BSE. At the floor price, the government, after considering 5 per cent discount being offered to retail shareholders, will garner about Rs 9,302.21 crore. IOC's share sale will be the fourth disinvestment this fiscal, but the biggest so far in 2015-16. The earlier three stake sales have raised about Rs 3,300 crore. The IOC stake sale will, however, dwarf in front of R...

Mutual Fund exposure to software stocks hits all-time high in July Mutual Fund managers seem to be bullish on software shares as they raised their allocation in the sector to an all time-high of over Rs 38,000 crore in July due to depreciation in rupee. In comparison, equity fund managers deployment in software stocks stood at Rs 27,596 crore in July last year. Industry experts said that fund managers raised their allocation to software stocks due to declining rupee against the US dollar. Like exporters, IT companies earn majority of their revenue in dollars. Depreciating rupee means exporters get more rupee per US dollar. Source :Daily News & Analysis Sent from BlackBerry® on Airtel

A rare conversation between Ramkrishna Paramahansa & Swami Vivekananda READ IT LOUD TO FAMILY, it's one of the best message I have come across.... 1. Swami Vivekanand:- I can't find free time. Life has become hectic. Ramkrishna Paramahansa:- Activity gets you busy. But productivity gets you free. 2. Swami Vivekanand:- Why has life become complicated now? Ramkrishna Paramahansa:- Stop analyzing life.. It makes it complicated. Just live it. 3. Swami Vivekanand:- Why are we then constantly unhappy? Ramkrishna Paramahansa:- Worrying has become your habit. That's why you are not happy. 4. Swami Vivekanand:- Why do good people always suffer? Ramkrishna Paramahansa:- Diamond cannot be polished without friction. Gold cannot be purified without fire. Good people go through trials, but don't suffer. With that experience their life becomes better, not bitter. 5. Swami Vivekanand:- You mean to say such experience is useful? Ramkrishna Paramahansa:- Yes. In every term, Exp...

Power Finance Corp-OFS for 5% of Equity Seller-Govt of India Offer Size 66mn shares 5% of Equity. Offer date :27-7-15(Monday) Allocation method: Price priority method at multiple clearing prices . Retail reservation/Disc: 20% of offer / 5% Disc. Floor price : To be declared latest by IST 5 pm on 25-Jul-15. Sent from BlackBerry® on Airtel

Despite Fatca clearance, MFs shun investment from US, Canada Even after the signing of a treaty between the governments of India and America to comply with the latter's Foreign Account Tax Compliance Act (Fatca), mutual funds (MFs) continue to remain wary of accepting investments from their or from Canada. "The compliance requirement is very stringent and involves high costs. At present, we are not accepting any investments from the US or Canada until we figure out a way to be compliant and in a manner that does not escalate costs," said A Balasubramanian, chief executive at Birla Sun Life Asset Management. Fatca was introduced in 2010, to curb offshore tax evasion by US entities and citizens. The Indo-US treaty was earlier this month. The Fatca guidelines require foreign financial institutions receiving money from US investors to report the offshore holdings of those investors to American tax authorities. These institutions have to make various declarations, such as name...

Government plans to cap premature withdrawal of PF money at 75% of total amount The government is planning to put a cap on premature withdrawal of provident fund (PF) money. The move is aimed at ensuring social security for workers in old age. The Employees' Provident Fund Organisation (EPFO) has proposed that an employee be allowed to withdraw only 75% of the overall kitty, instead of 100% as permitted under the existing Employees' Provident Funds Scheme, 1952, in case of resignation from a job or for any other use before retirement. The change, once implemented, will impact working people who tend to withdraw PF money between jobs or those planning to use it for either buying a house or for paying medical bills or for children's higher education or weddings. Pre-mature withdrawal before retirement on these counts as well would also be restricted to 75% of the overall amount. "The provision of 100% withdrawal at any time is being misused to a large extent. The idea of...

Tax free bonds worth Rs 40,000-cr to hit street this fiscal Tax free bonds worth Rs 40,000 crore is set to hit the market this financial year as the government has allowed seven entities to raise funds through this route. Experts believe these bonds will attract investors through it is agreed that the returns would be lower than what it was offered in the financial year 2013-14. The amount allocated to various entities include tax free bonds of National Highways Authority of India (NHAI) for Rs 24,000 crore, Indian Railways Finance Corporation (IRFC) for Rs 6,000 crore, Housing and Urban Development Corporation (HUDCO) for Rs 5,000 crore, Indian Renewable Energy Development Agency (IREDA) for Rs 2,000 crore and Power Finance Corporation Limited (PFC), Rural Electrification Corporation Limited (REC) and NTPC have been allocated Rs 1,000 crore each.  "All the issuances are expected to get fully subscribed. It may not happen in day one, but it would get decent ...

POWER OF PHARMA !! Period (2008-2015); 7 years WEALTH CREATION! 1. DR REDDY – Rs 387 in 2008 to now CMP – 3547.90. So investment of Rs 10,000 in 2008 would be today – Rs 91,677 !! ( More than 9 times in 7 years !! ) 2. SUN PHARMA – Rs 890 in 2008 to now CMP – Rs 972.95. Meanwhile, stock split from FV 5 to 1 and bonus of 1:1 in 2013; So, if you bought 1 share at Rs 890 in 2008, you would have 10 shares at Rs 972.95 today. So investment of Rs 10,000 in 2008 would be today – Rs 1,09,320 !! ( Almost 11 times in 7 years !! ) 3. LUPIN – Rs 430 in 2008 to now CMP – Rs 1833.25. Meanwhile, stock split from FV 10 to 2 in 2010; So, if you bought 1 share at 430 in 2008, you would have 5 shares at 1833.25 today. So investment of Rs 10,000 in 2008 would be today – Rs 2,13,168 !! ( More than 21 times in 7 years !! ) If LARGE caps can return about 10-20 times in 7 years, then WHAT ABOUT SMALL/MID CAPs ? 1. TORRENT PHARMA – Rs 112.15 in 2008, TORRENT PHARMA was a 950 CR market cap Co to now CMP – 1208....

Only 10 days are left to exchange pre-2005 currency notes, including those of Rs 500 and Rs 1,000 denominations, at banks as the deadline to do so is ending on June 30. Seeking cooperation for withdrawing pre-2005 currency notes from circulation, the RBI has asked the public to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them. The earlier deadline was January 1, but later the Reserve Bank of India had extended it till the end of this month. All pre-2005 notes continue to remain a legal tender. These notes can be exchanged for their full value at bank branches. It is easy to identify pre-2005 notes. The currency notes issued before 2005 do not have the year of printing on the reverse side. In notes issued post 2005, the year of printing is visible at the bottom on the reverse. The rationale behind the move to withdraw banknotes printed prior to 2005 is to remove them from the market because they have fewer security f...

A very cold winter! It was autumn, and the Red Indians asked their New Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn't tell what the weather was going to be. Nevertheless, to be on the safe side, he replied to his Tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared. But also being a practical leader, after several days he got an idea. He went to the phone booth, called the National Weather Service and asked 'Is the coming winter going to be cold?' 'It looks like this winter is going to be quite cold indeed,' the weather man responded. So the Chief went back to his people and told them to collect even more wood. A week later, he called the National Weather Service again. 'Is it going to be a very cold winter?' 'Yes,' the man at National Weather Service again replied, 'It's definitel...

HDFC Mutual Fund remains most profitable fund house; Reliance Mutual Fund 2nd HDFC Mutual Fund has retained its position as the most profitable fund house in 2014-15, with a profit after tax (PAT) of Rs 416 crore, while rival Reliance MF remains at the second place. According to an analysis of profit figures for fund houses available with industry body AMFI, HDFC MF, country's largest fund house, posted a PAT of Rs 416 crore for the full year ended March 31, 2015, while Reliance MF registered a PAT of Rs 357 crore during the last fiscal. ICICI Prudential MF, the second largest fund house in terms of assets base, reported a profit after tax of Rs 247 crore, while Birla Sunlife MF posted a PAT of Rs 123 crore. Reacting to the profit figures, Reliance MF CEO Sundeep Sikka said: "As a fund house we believe in balanced growth - both top line and bottom line - and this has helped us deliver better results and value to our stakeholders and investors. We will continue ...

It is not only foreign institutional investors (FIIs) showing a lower appetite for Indian debt. Mutual funds (MFs) have also reduced their investment in such instruments as bond yields head north. Data from the Securities and Exchange Board of India (Sebi) show the net buying by fund houses in debt was Rs 17,364 crore last month, close to that in July 2014 at Rs 17,055 crore. Fund houses were net buyers by Rs 99,456 crore in March 2014. Before that, they had been net buyers to the tune of Rs 1.1 lakh crore in March 2012. "Long-term investors continue to pump in money but short-term investors have slowed their investments, as the scope for rate cuts in the near term is seen as limited," said R Sivakumar, head of fixed income at Axis MF. Bond yields have been rising despite three rate cuts by the Reserve Bank of India since the start of 2015. This is because the Street expects an extended pause by RBI after the last reduction on Tuesday. The next cut could be in this financial ...

Mutual funds' exposure to IT stocks hits 4-month low in April Investments by mutual fund houses in software shares hit a four-month low of around Rs 34,000 crore at the end of April. In comparison, equity fund managers' fund allocation in software or IT stocks stood at Rs 24,438 crore in April 2014. According to market experts, fund managers are shifting focus to sectors like automobile and capital goods, as against IT space that are more dependent on global factors. As per data available from Securities and Exchange Board of India (Sebi), overall deployment of equity funds in IT stocks stood at Rs 34,100 crore in April 2015 as compared with Rs 36,121 crore in the previous month. This was their lowest level of funds allocation in software shares since December 2014, when the total value of mutual fund investments in the sector stood at Rs 33,970 crore. Besides, exposure to IT stocks was at 9.43 per cent against 10.02 per cent in the preceding month. The BSE...

NEW DELHI: Maharashtra continued to dominate the mutual fund landscape in the country with an assets base of Rs 1.21 lakh crore at the end of April in equity-oriented schemes, followed by Delhi in the second place. A big share of mutual fund presence originates from Maharashtra because the state houses the headquarters of most of the large companies, thereby getting a bulk of investments through non-retail or institutional routes, experts noted. In terms of state-wise equity assets, Maharashtra led with Rs 1.21 lakh crore, taking up a 35 per cent share of the market, as per the data compiled by Prime Database. Delhi followed, though far behind, with Rs 28,058 crore and Karnataka with Rs 27,625 crore. Further, Gujarat has an assets base of Rs 25,402 crore in equity-oriented schemes, while the same for West Bengal was at Rs 21,189 crore. In terms of the annual growth (for states with an AUM of more than Rs 1,000 crore), Delhi led with a 158 per cent growth, followed by Haryana 117 per ce...

In a chat with ET Now, BP Singh, ED & CIO, Equities of Pramerica Mutual Fund, shares his views on the markets. Excerpts: ET Now: What is the current allocation in your portfolio? In this decline, where are you buying and selling? BP Singh: When IT corrected in the decline, we had added since we were sitting on an underweight position on IT. Otherwise we are using the FMCG and pharma sectors as fund source to get into private banks and some of the capital goods sectors, particularly road construction, the various auto ancillary units, etc. We are preparing ourselves for a better monsoon season, a lower interest rate scenario and capex pick up in the economy. Accordingly, those are the sectors where we are increasing our weightage. Economics Times Sent from BlackBerry® on Airtel

Banks' credit down 2.91% Credit in the banking system has declined by 2.91 per cent from the start of this financial year (April 1). According to the Reserve Bank of India data, bank credit fell from Rs 68,30,965 crore at the end of April 3 to Rs 66,32,101 crore by the end of May 15. In the same period, deposits also declined by 1.92 per cent However, credit in the system grew 10.16 percent at the end of May 15 as compared to the corresponding period a year earlier. Deposits in the same period inched up 11.8 per cent. With credit demand in the banking system continuing to remain sluggish, credit growth has been hovering either in single digits or the low double digit range. Reflecting an economic slowdown in the country, the pace of growth in bank credit slowed to 9.52 per cent in 2014-15, compared with 13.83 per cent in 2013-14. Bankers believe credit growth has continued to remain under pressure due to slowdown in the corporate segment of the business. Those in ...

The following are the salient features of the proposed pan-India Goods and Services Tax regime that was approved by the Lok Sabha by way of an amendment to the Constitution: 1. GST, or Goods and Services Tax, will subsume central indirect taxes like excise duty, countervailing duty and service tax, as also state levies like value added tax, octroi and entry tax, luxury tax. 2. The final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. 3. As a measure of support for the states, petroleum products, alcohol for human consumption and tobacco have been kept out of the purview of the GST. 4. It will have two components - Central GST levied by the Centre and State GST levied by the states. 5. However, only the Centre may levy and collect GST on supplies in the course of inter-state trade or commerce. The tax collected would be divided between the Centre and the states in a manner to be pro...

〽arket 〽⭕⭕D as on 27-May-2015 provisional @ 6:10 pm BSE Sensex: + 33 (27565) 🔼 NSE Nifty: - 5 (8335) ↔ BSE midCap + 7 (10616) ↔ BSE smllcap - 3 (11163) ↔ Fii Derivatives N.A. Fii investment - 935 Crs 😩 Dii investment + 594 Crs 😊 Brent Crude 63.63 $/brl 🔽 Gold $/oz 1186 & Rs/10gm 26890 ↔ Silver Rs./kg 38439 🔽 8.40-GS-2024 / 10 Yr ytm 7.87% 🔽😜 7.72-GS-2025 / 10 Yr ytm 7.67% (New Benchmark)↔😜 ForeX: Rs. / us $ 64.01 🔽😩 Sent from BlackBerry® on Airtel

RBI to watch for monsoon onset before softening rates further India has emerged as a bright spot in the otherwise gloomy world economy in the last one year. Investment climate in general has improved with the government proactively taking measures to ease legal & bureaucratic processes, and enhance coordination among different stakeholders. The government has done remarkably well in lifting morale of public servants. Recent coal block and telecom spectrum allocations are good examples of transparent and accountable service delivery. Further, a record 150 million new banking accounts have been opened with the prime minister's Jan Dhan Yojana, making 99.99 per cent of Indian households financially connected. Advertisement The government is now harnessing this platform to provide universal social security at very affordable cost for common citizens of the country. On macro front, with current account deficit, fiscal deficit and inflation - all three persistent vulnerabilities - ha...

Health insurance customers may soon have to loosen their purses to pay premiums, if a proposal by an expert committee on health insurance is accepted. This committee has recommended that health premiums increase per year be linked to consumer price inflation and that it is should be CPI plus 3 per cent. This would lead to additional hikes since presently health policy premiums increase only after three years. The expert committee has said that the CPI+3 formula would be a cap and an insurer can increase up to this limit. It said that any higher increase would require the Authority's approval. Consumer Price Index (CPI)-based inflation for April stood at 4.86 per cent, the lowest in four months, on the back of another month of declining food prices, data by the Central Statistics Office showed. Consumer Food Price Inflation (CFPI) for April was 5.11 per cent, against 6.14 per cent in March and 9.21 per cent in the year-ago period. "The health inflation at present is almost 16-1...

After pouring in the largest sum in shares at the start of the current financial year, India's fund managers have reduced their pace of investment in stocks. Industry experts say it's tactical call and not a directional one. They add that it is a continuation of "buy on dips" strategy. Thus far this month, in the 16 trading sessions, equity fund managers have net invested about Rs 3,300 crore - which is nearly a third of what the previous month witnessed. Compared to the immediate previous month, the quantum of net investment is low but is in line with the average monthly investments ever since the Narendra Modi-led BJP government took office in New Delhi last year. Three more trading sessions are yet to come in May. In April, the net investment stood at Rs 9,244 crore, which was unusually high given the robust inflows as key indices corrected about 10%. According to fund managers, it is a tactical call and should not be read as directional. It has come at a time when...

In an interview with ET Now, Kenneth Andrade, CIO, IDFC Mutual Fund, shares his views on markets. Excerpts: ET Now: There is a section in the market which believes that the economic recovery in the first year of the current administration is slow. Is the criticism valid? Are you also disappointed, given the fact that earnings are yet to pick up? Kenneth Andrade: I think it was too early to expect earnings to pick up. Whatever this government has done is left on implementation, but corporates have to follow through. ET Now: So how will the second year of the government be different from the first? Kenneth Andrade: As far as investment world is concerned, we look at the policy initiatives and we see how corporates follow them up. They do not have the balance sheet to follow it up. So, 2016 is not going to be very different from what you saw in 2015. And going into 2017, we need to see how demand actually picks up. So, capacities are there on the ground. They got created over the last 10 ...

Don't switch out of debt funds We have been recommending the long-dated debt fund strategy for some time now. While it has generated handsome returns in the past, conditions are not rosy for investors who got in only in the last three months. Income funds have generated absolute returns of only 0.97% in the last three months while the average longand medium-term gilt fund has lost money . So what went wrong? After falling for more than 18 months, the 10-year yield remained almost flat the last three months before starting to inch up in the last few days. The 10-year yield is now placed at 7.87%, 22 bps higher than the recent low of 7.65% on 2 February . To find out where the yield is headed, we need to take a look at the factors that contributed to its recent spurt. First, the spurt in crude prices from its recent lows has raised doubts about the low inflationary situation in India.Brent crude is at $69 per barrel, a more than 40% jump from its January low.However, experts think th...

Mutual Funds exposure to bank stocks climbs to Rs 75,000 cr Mutual Fund managers have been on a shopping spree of bank shares as they have raised their allocation in the sector to about Rs 75,000 crore in April anticipating a rate cut by the Reserve Bank. In comparison, equity fund managers' deployment in banking stocks stood at Rs 41,104 crore in April 2014. According to the industry experts, fund managers have raised their allocation to bank stocks expecting a rate cut by the RBI. They said that fund managers cannot take a bearish call on banking stocks, given the high weightage attached to the index. As per the data available from Securities and Exchange Board of India (Sebi), overall deployment of equity funds in bank stocks stood at Rs 74,810 crore in April compared with Rs 73,575 crore in the previous month. Besides, exposure to banks was at 20.7 per cent against 20.42 per cent in the preceding month. The BSE bankex index inched up 0.8 per cent in A...

     

  In the recent past, most of the diversified equity funds have posted encouraging returns. Please refer our attached note on the subject wherein we explained the contribution of mid caps in boosting scheme performance of diversified equity funds in general. However, with huge divergence in performance of Nifty and Mid cap index and convergence in valuation, we believe that next leg of the rally shall be driven by large caps and hence there is a case to increase allocation to large caps. Most of our diversified equity funds are now overweight on large caps and hence positioned to capture next leg of rally. To summarise, we expect large caps performing better than mid caps over medium term. However, key to financial success remains asset allocation. Looking forward to your feedback and comments on the subject and appreciative of your continual support.       Rajesh kathpalia        

Mutual fund managers pumped in over Rs 22,000 crore in the debt market in April, mainly on account of positive investor sentiments and the government's reforms agenda. In comparison, they have invested a net amount of Rs 9,244 crore in the stock markets. Moreover, mutual fund houses are upbeat about overall inflows in equities and debt markets for the current financial year (2015-16) as well. Industry experts have attributed the inflows in debt markets during 2014-15 to the new government's reforms agenda, improved fundamentals of the domestic economy and increased participation from retail investors. "Improved sentiments and the reforms initiative taken by the the Central government has helped in the inflow," Axis Mutual Fund Managing Director and CEO Chandresh Nigam said. As per data released by the Securities and Exchange Board of India, mutual fund managers invested a net sum of Rs 22,650 crore in the debt markets in April. Besides, fund managers...

RBI sets cut off yield for new 10-year bond The Reserve Bank of India (RBI) on Friday set the cut off yield for the new 10-year bond at 7.72%, lower than the 7.88% close of the 10-year bond on Thursday. The RBI raised Rs.9,000 crore by selling the new benchmark bond on Friday. "The cut off is in line with what the market expected. It is normal for the yield to soften about 15 to 20 basis points (bps) when the new benchmark becomes effective because of the demand for that security. Going forward I expect the 10-year bond yield to have a softening bias with the yield trading in the 7.65% to 7.70% range ahead of the monetary policy review," said Bansi Madhavani​, a fixed income and macroeconomic research analyst at Securities Trading Corp of India. RBI will announce its next bi-monthly monetary policy review on 2 June. LIvemint Sent from BlackBerry® on Airtel

The Reserve Bank today relaxed norms to help Indian corporates to raise funds in rupees from overseas lenders. To facilitate external commercial borrowing (ECB) in rupees, RBI said off-shore lenders may enter into swap transactions with their overseas bank which in turn will enter into a back-to-back swap transaction with a bank in India. Earlier, a non-resident ECB lender was allowed to extend loans in rupees provided the lender mobilises rupees through a swap undertaken with a bank in India. For the purpose of executing swaps for ECBs denominated in rupees, the ECB lender, "if it desires, may set up a representative office in India," it added. Also, the continuation of the swap will be subject to the existence of the underlying ECB at all times. The RBI further said a KYC certification on the end client should also be taken by the bank in India as a one-time document from the overseas bank. Meanwhile, speaking at an event in New Delhi, RBI Deputy Gov...

Now, you don't need to post paper acknowledgement of I-T returns In a major step aimed at easing taxpayer grievances, the Central Board of Direct Taxes (CBDT) on Friday said assessees filing income tax (I-T) returns online will no longer have to send the paper acknowledgement by post, as a new Aadhaar-based electronic verification code has been launched to authenticate this document. CBDT, the apex policy making body of the I-T department, has introduced a new column in the I-T returns for 2015-16, where an e-filer can provide his Aadhaar number that will have to be authenticated on the official website of the department via a One Time Password. Business Standard Sent from BlackBerry® on Airtel

RBI allows banks to offer differential interest rates on term deposits The Reserve Bank of India (RBI) has allowed banks to have the discretion to offer differential interest rates based on whether the term deposits are with or without-premature-withdrawal-facility. Liquidity or ease of withdrawal, which is often touted as the biggest advantage of bank fixed deposits, may soon be restricted due to this move.  In the sixth bi-monthly monetary policy review held in February 2015 the central bank had decided to introduce the feature of early withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of interest. RBI said that all term deposits of individuals held singly or jointly of Rs 15 lakh and below should have premature withdrawal facility. Besides that banks have been allowed to offer deposits without the option of premature withdrawal as well. For most banks, the penalty for premature withdrawal of deposits is 0.5 to 1 per cent below the ...

MF exposure to bank stocks drops to Rs 73000cr in March Mutual fund (MF) managers dropped their exposure in bank stocks to over Rs 73,000 crore in March after raising it for six consecutive months. MF investments in bank stocks declined to Rs 73,575 crore as on March 31 after hitting an all-time high of Rs 77,805 crore in the preceding month, according to the latest data available with Securities and Exchange Board of India (Sebi). In comparison, the investment in banking stocks stood at Rs 40,293 crore in March 2014. Mutual Fund investment in banking stocks account for 20.42 percent of the total equity assets under management (AUMs) of Rs 3.6 lakh crore. It had been continuously raising exposure to banking shares since September last year. According to market participants, funds have been showing interest in banking stocks since September last year amid rising equity markets and the current decline is mainly due to profit-booking. Money control Sent from BlackBer...

Public issue of secured redeemable NCD from Srei Equipment Finance Limited (Srei BNP Paribas). ·  Issue opens on 09/04/2015      About Srei Equipment Finance Limited : ---------------------------------------- ·  A 50:50 joint venture between Srei Infrastructure Finance Limited & BNP Paribas. ·  One of the leading NBFC in organised equipment financing sector in India with a principal focus on financing infrastructure equipments. Issue Highlights : ----------------- ·  Attractive interest rates of 10.25% for 60/84 months & 10.20% for 36/39 months. ·  0.25% additional interest for Senior Citizens. ·  Demat & Physical options available. ·  NO TDS for any investment amount ONLY if maintained in Demat option. ·  Issue opens on 09/04/2015 & closes on 30/04/2015. ·  Issue size Rs.500 Crs. ...

Dividend transfer plan- low risk way to invest in equity MF One of the problems faced by retired people is to make their portfolio earn well so that the corpus lasts their entire lifetime. There is a paradox inherent in that statement. If the portfolio has to earn well, they would need to take some risk – which many seniors may not want to take with their retirement corpus. But if they don't do that, they run the real risk of the corpus dwindling in their lifetime itself. So, is there any way out? There is. This can help a person who does not want to take too much risk but also wants to participate in market upsides and inject some steroids into their portfolio. A low risk way of going about it is through a Dividend Transfer Plan. What is a Dividend Transfer Plan? A Dividend Transfer Plan( DTP ) is one where the dividend declared in a source scheme is transferred as an investment in a target scheme. The advantage here is that the original investment is intact and only the dividend ...

RBI relaxes foreign investment norms for exchange-traded FX derivatives The Reserve Bank of India (RBI) relaxed rules for foreign investors in exchange-traded currency derivatives by increasing the trading limits allowed without an underlying exposure for the USD/INR pair to $15 million per exchange from $10 million earlier. The RBI also said that foreign portfolio investors can take long or short positions of up to $5 million in Euro/INR, GBP/INR, JPY/INR pairs in exchange traded derivatives. The central bank also permitted importers to hedge up to 100 percent of their eligible limit in the exchange-traded market compared with 50 percent earlier. Reuters Sent from BlackBerry® on Airtel

People invest at different points of time. Often it is seen that an investor makes a fresh investment in a fund without quoting an existing account/folio number with the same fund house. After some time, it gets difficult to monitor these investments held in different folios. An investor can ensure good housekeeping by opting for consolidation of his folios in a particular fund. This makes it easier to manage investments in mutual funds. Conditions for consolidation Investors can opt for consolidation of two or more folios if the following parameters are same across all the folios that are being consolidated: > Holding pattern > Mode of holding > Address > Tax status and nominee details Application The investor is required to submit a letter to the AMC/registrar stating all the folio numbers that are to be consolidated into one primary folio. Investors can also download a form for consolidation of folios available with the AMC or its registrar. Information ...

ECL Finance NCD (An Edelweiss group company) Opens: 26th Feb 2015 Size: 400+400 Crs Rating: AA by ICRA & CARE Status: Secured Tenure: 3 & 5 Years Option: Monthly, Annual & Cumulative Listing: NSE & BSE ROIs Coupon/Yield 3 Years Monthly: 10%/ 10.47% Annual: 10. 45%/ 10.45% Cumulative: NA/ 10. 45% 5 Years Monthly: 10.15%/ 10.64% Annual: 10.60%/ 10.60% Cumulative: NA/ 10.60% Allotment: First-cum-first-Serve-Basis Looking forward for your kind support Sent from BlackBerry® on Airtel

NSE asks investors to keep funds ready for upcoming OFS issues - Buoyed by retail participation in recent Coal India divestment programme through OFS, country's leading bourse NSE today said brokerages and investors need to keep adequate funds ready to buy shares in such issues as they are announced in a short notice. The Offer for Sale (OFS) mechanism facilitates the promoters of listed companies to sell their existing shareholding through an exchange-based bidding platform. As per norms, a seller has to announce intention of sale of shares at least two days ahead of the trading day of the issue (T-2). Noting that the government is likely to take the OFS route to divest its stake in various companies in the coming months, NSE Chief Business Development Ravi Varansai expressed concerns that timelines provided for retail investors under the mode were "extremely tight" and as such they should be prepared for such issues in advance. The observations come against the biggest-...

The latest option for retirement savings Simplicity of the scheme and tax benefits make Reliance's Retirement Fund attractive Mutual fund houses are set to launch exclusive retirement schemes after a long gap. UTI and Franklin India started their dedicated pension plans 17-20 years ago. Now, Reliance Mutual has come out with the Reliance Retirement Fund. Here's a look at the features of the new product and how it compares with the National Pension System (NPS), the other equity-linked pension product. What it offers The scheme basically offers a simple investment strategy to lock-in money for the long-term without taking high risks. The Reliance Retirement Plan comes with two options — a wealth creation plan and an income generation plan. The wealth creation plan is expected to invest 65-100 per cent of its corpus in equity and the remaining in safe debt instruments. This makes it work more or less like an equity-oriented balanced fund. It will be benchmarked against the BSE 10...

Dear All, Warm Greetings ! Would like to know : How much money will I need for retirement. ? How much money will I need to invest per Month or annually or lump sum to attain required corpus ? To know about same, Click below link https://docs.google.com/forms/d/1dHwzf7a-m6SFqY0aaUIivPdhghkZu8Kt197F7Ke-i7I/viewform#start=embed Or give us a Miss call on 9891645052 Thanking you Sent from BlackBerry® on Airtel

Coal India stake sale tomorrow; floor price fixed at Rs 358 Coal India stake sale tomorrow; floor price fixed at Rs 358 The government today fixed Rs 358 a share as the floor price for up to 10% stake sale in Coal India tomorrow, which may help the exchequer garner about Rs 22,600 crore in the biggest sale of shares. The floor price or minimum selling price is nearly 5% below today's closing price of Rs 375.15 a share. The government is selling 31.58 crore shares, or 5% stake, in a public offer with an option to sell another 5% through offer for sale (OFS) or auction route. CIL has reserved 20% shares for retail investors who will also get 5% price discount. "The President of India, acting through and represented by the Ministry of Coal, Government of India is the promoter of Coal India Limited (the "Seller") has now informed BSE that the floor price for the Sale in terms of the SEBI OFS Circular shall be Rs 358 per equity share of Coal India Limited (the 'Floor...

After children, their grandchildren become an important part of life for grandparents, who often want to pour their love and blessings in the form of monetary gifts. However, most of the grandparents wish to make a difference in their grandchild's life through adopting wise investment decisions. One such tool is an investment in the name of minor grandchild in mutual funds by the grandparents.   It is a known fact that mutual funds do not accept third-party payments for investments. However, the rule allows a parent/grandparent to invest on behalf of their minor child. But, the amount under such arrangement should not exceed Rs. 50,000, while the required documentation has to be fulfilled by the investor. Some of the conditions applicable on a grandparent investing for their minor grandchild is as under:   Maximum Amount: A grandparent cannot invest over Rs. 50,000 for total SIP or purchase.   PAN and KYC: Grandparent has to submit his Pan Card and KYC acknowled...