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IMPORTANT! Please read disclaimer..before proceeding

The author of this blog isn't a certified financial advisor or a certified financial planner. Please consult a qualified financial planner / certified financial advisor before taking any actual investment decisions. Views expressed on investments is purely authors own opinion / experience and shouldn't be construed as an investment advice. All information on this blog is just a point of view from authors perspective merely for educational and informational purpose only.

There is no guarantee / certainty of profits or windfall gains to be made on the basis of data or information on this blog. The author accepts no liability for any interpretation of articles or comments on this blog being used for actual investments.

Wednesday, October 28, 2009

Updates on Market Fall 27-28 Oct 2009

The stock markets in past two days have taken a down turn and become quite volatile in Indian capital markets. This was more accentuated by the fact that our market are nearing expiry and also credit policy announcement was a bit negative in the sentiments. Some of the most crucial support levels like 4950 and 4850 have broken down next crucial level on Nifty is 4730. In case if 4730 is also broken on closing basis be prepared for roller coaster ride and steep corrections to 4400 levels. I have updated my QuickPick Tracker following the fall in the markets over past couple of days.

For long term investment investors can start adding good quality companies at 4730-4750 Nifty levels to their portfolio. Some recommendations by FinWin would be to add: (Not all but selective 3-4 companies of your likes / sector which you understand better)

Larsen & Tubro / BHEL in Captial Goods
Reliance / Petronet LNG / Guj. Gas (Oil & Gas)

LIC Housing Finance / HDFC (Finance: Housing)
3i Infotech / Rolta India / Micro Tech (Midcap IT)
Axis Bank / SBI / ICICI Bank (Banking)
Nifty Bees (Index ETF)
JP Associates / GMR Infra (Infra and construction)
IDFC / Power Finance / Reliance Capital (NBFC)
TV 18 / UTV Software / Reliance Media Works (Media)
Other stock mentioned in the blogs Value Pick section

Just one suggestion is buy in staggered fashion such that on further fall more can be added.

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Friday, October 23, 2009

Binani Cement Ltd.

Binani Cement a part of Braj Binani Group. The Braj Binani Group is a well-diversified industrial house with a 138-year history behind it. Today, the group is actively working in the core sectors of Cement, Zinc, Glass Fibre and Downstream Composite Products.

Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL), the Braj Binani Group. It?s a cement manufacturer with an asset value of Rs. 1779 crores and a turnover of Rs.1960 crores, with subsidiaries in Dubai, China and expanding by the day. Binani Cement has established itself as one of the top companies in the industry in terms of efficiency and performance.

3 Yr CAGR Sales (%) : 45
3 Yr CAGR Profit (%) : 25
Promoter Shareholding (%) : 64.91
FII Shareholding (%) : 2.39
Return on Equity (%) : 28.24
MCap.(Rs. in Cr.) : 1299
P/E (x) : 5.75
TTM EPS (Rs.) : 11.64
BV (Rs.) : 24.59
Div. Yield (%) : 5.3
FV (Rs.) : 10
Industry P/E: 9.x

Binani has come out with stellar set of back to back quarterly result with earlier quarter at EPS 5.25 and current Quater at 4.98i.e end Sep-09 for Half year EPS is already 10.23 with CMP at Rs. 67 is a bargain buy. Given 3 yr. CAGR profit and slaes growth at 25 and 45% it is a reccomended value pick. Besides in long run cement industry is expected to be one of the key beneficiaries of Infra Growth story.

Given past P/E ratio assigned to Binani Industry of around 8 for trailing earnings stock can be expected to touch 93 - 100 in short term 6 - 9 months i.e arround 50% appreciation from current price.

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Reliance Media Works

Buy Reliance Media Works (Foremer Adlabs) at CMP 328 with Stop Loss at 310 for Target of T1 360, T2 376. T3 392 in next 1-3 Months.

Fell of 8-9% yesterday due to weak global cues, bounce back expected today following good quarterly results.

Trigger: Good results declared after market closing yesterday. Possible Rights issue in near future.

Disclaimer:
Please note that the stocks in Quick Pick segment can give a POP of +/- 10-15 % and is purely speculative in nature. This is reccomendation for a person with High Risk appetite.

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Wednesday, October 21, 2009

Access your CIBIL Report

You can now access your Credit Information Report (CIR) directly from CIBIL. As you may be aware, your CIBIL CIR is a factual record of your credit payment history compiled from information received from credit grantors. The purpose is to help credit grantors make informed lending decisions - quickly and objectively, and enable faster processing of your credit applications to help provide you speedier access to credit at better terms.

You can request for a copy of your CIBIL CIR in three quick steps through Email, Mail, Telephone or Fax:
Email: myreport@cibil.com
1. Email the CIR Request Form duly filled in
2. Mail self attested hardcopies of you lastest Identity Proof1and Address Proof2 documents and Fees3 to P.O.BOX 17, Millennium Business Park, Navi Mumbai- 400710
3. Once CIBIL receives the documents and Fees3, your request will be processed and copy of your CIR will be dispatched to you.
Letter: Address*
1. Write to CIBIL with the CIR Request Form duly filled in
2. Also mail self attested hardcopies of your Identity Proof1 and lastest Address Proof2 documents and Fees3 to P.O.BOX 17, Millennium Business Park, Navi Mumbai- 400710
3. Once CIBIL receives the documents and Fees3, your request will be processed and copy of your CIR will be dispatched to you.
Telephone: 022-61404300
1. Fax CIBIL the CIR Request Form duly filled in
2. Mail duly filled in CIR request form and self attested hardcopies of your Identity Proof1 and latest Address Proof2 documents and Fees3 to P.O. BOX 17, Millennium Business Park, Navi Mumbai - 400710
3. Once CIBIL receives the documents and Fees3, your request will be processed and a copy of your CIR will be dispatched to you.
Fax: 022-40789007
1. Fax CIBIL the CIR Request Form duly filled in
2. Mail self attested hardcopies of your Identity Proof1 and latest Address Proof2 documents and Fees3 to P.O.Box 17, Millennium Business Park, Navi Mumbai 400710
3. Once CIBIL receives the documents and Fees3, your request will be processed and a copy of your CIR will be dispatched to you.

1. Valid Identity Proof: PAN Card/ Passport/ Voters ID (Mail self attested hard copy of any one of these Identity Proofs)
2. Valid Address Proof: Bank Account Statement/ Electricity Bill/ Telephone bill (Mail self attested hard copy of any one of these Address Proofs)
3. Payment terms: Demand Draft (DD) of Rs 142/- (inclusive of all taxes and express delivery charge), in favour of Credit Information Bureau (India) Limited payable at Mumbai
Please note that the fee once paid is non-refundable.  
Download Request Form
CIBIL has no authorised agents. Please do not contact anyone other than CIBIL in order to gain access to a copy of your Credit Information Report.
Your CIBIL CIR will be presented to you in a simple and easy to understand format. However, on receiving your CIBIL CIR, if you require any explanation/clarification, you can email us at consumerqueries@cibil.com or call us on 022-61404300.
CIBIL is always at your service to assist you.
 
* Credit Information Bureau (India) Limited
P.O Box 17,
Millennium Business Park,
Navi Mumbai- 400710
 
Source: www.cibil.com

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QuickPick Tracker

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Tuesday, October 20, 2009

Updates on XPRO India Ltd.

FinWin is recommends buy on XPRO India Limited as a Quick Pick for short term this stock can also be held for long term perspective, click for details on XPRO India for report published earlier as value pick
Short Synopsis:

MCap.(Rs. in Cr.) 
26


YTD Sales Growth
10 - 20 %
BV (Rs.) 
97.65


YTD Profit Growth
50%
Div. Yield (%) 
4.16


Share Capital  
11 Cr
EPS (Rs.)
0.75


Reserves and Surplus 
96.41 Cr
P/BV
0.325


CMP
31.80
Buy at CMP preferable at dips with stop loss at Rs. 27.50/-
Risk reward ratio 1: 2.5
TGT: 15 - 20 % in next 1-3 months time horizon
T1: 36, T2: 38, T3: 42

Current Trigger: Positive breakout above 52 week high level with very huge volumes (almost 10 times 2 week average in just 2 hrs of trading today morning)
QuickPick Tracker
Disclaimer:
Please note that the stocks in Quick Pick segment can give a POP of +/- 10-15 % and is purely speculative in nature. This is reccomendation for a person with High Risk appetite.

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Updates on Jindal Saw Ltd.

CMP:822

T1: Target 1 800 achieved (appreciation 8% from recommended price)
Approaching T2: Target 2 (11% appreciation)

Strategy book partial profit around T2 level and hold rest with stop loss at 789

QuickPick Tracker
Cheers!
FinWin

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Saturday, October 17, 2009

Historical returns on Sensex since 1979

In this article I am analyzing Historical Returns generated by Sensex since its inception and logical conclusion derived on basis of the facts and figures.

In one of the earlier post FinWin recommended investment into Index ETF mentioning that one doesn't need to invest time, follow or track the underlying constituent  for performance if a person has long term investment horizon i.e. 10+ years. Also in articles on Financial Independence, I have mentioned about 'Power of Compounding' where calculations are based on 10% CAGR effect over long period of time. Having said that FinWin has recommended investment option as equities to get 10% or more CAGR returns. 

The base year for sensex was 1978-79 at base index value of 100 which has now grown to 17000+ in 30.52 years since then growing at 18.36% CAGR .which is quite exceptional returns. The article highlight three key indicators namely 'Probability of Loss' , 'Average returns' and 'Deviation from Average' across different time slices of 1 yr, 3 yrs, 5 yrs, 7 yrs, 12 yrs, 15 yrs, 20 yrs and 30.52 years.
As it is quite evident from the data 'Probability of Loss' in short term is 50% to 9% with 'Average Return' ranging from 18% to 11% and 'Deviation from Average' from 30% to 7.5% points for investment time frame of 1 year to 7 year period. However with time horizon of investment more than 10 year to 30 years you will see that 'Probability of Loss' is NIL with returns averaging from 10% to 20% and deviation from average of around 4.75% to 2.5%.


Thus based on the facts and figures as presented below the conclusion derived is that investment in Index in short to medium term provides return  of   11%-18% CAGR with deviation of around +/-7 to 30 with Probability of capital erosion of around 9%-50% hence proving very volatile with risk to the capital invested. But if a person is invested over long term i.e. 10+ years than 'Probability of Loss' or 'Capital Erosion' is virtually NIL providing a return of 10% - 20% CAGR with average deviation of +/- 2 to 5 points.


Click here

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Friday, October 16, 2009

High Return Corporate Fixed Deposit Scheme - KCP Ltd.

KCP Limited a part of KCP group offers lucrative fixed deposit scheme:
Highlights:
Non-Cumulative Deposit
Tenure: 1 to 3 years
Rate of Returns: 10 to 10.5 % p.a.
Min. Investment: INR 21000/- and thereafter in multiple of 1000
Payout: Quarterly
Risk: Credit rating from Credit rating agency not known (check website for more details)

Cumulative Fixed Deposit
Tenure: 1 to 3 years
Rate of Returns: 10 to 11% CAGR
Payout: On Maturity
Risk: Credit rating from Credit rating agency not known (check website for more details)

At the look of it the fixed deposit scheme looks quite attractive from a good company, but before taking an investment decision ensure to read all terms and conditions, risk factors etc. I am not sure if the scheme has sought any credit ratings for the instrument from 3rd Party Credit Rating agencies like ICRA, CRISIL or any others.
Click here for more detail or alternate link

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Jindal Saw Limited

FinWin is recommending buy on Jindal Saw Limited as a Quick Pick for Short Term.

I will post more detailed analysis soon.

Short Synopsis:
CMP: 741
EPS: 58
P/E Ratio: 13
BV: 532
P/Book: 1.4
3 Yr CAGR Sales Growth (%) : 30.x
3Yr CAGR Profit Growth (%) : 50

Buy at CMP with stop loss of Rs. 700*
Risk reward ratio: 1:3
TGT: 15 - 20 % in next 1-3 months time horizon
T1: 800, T2: 825, T3: 850

*By oversight I didn't put stop loss in the morning, fortunately trade did go our way, since it has now closed at 789 you can move stop loss to recommended buy level / purchase price this will help you protect the capital going ahead.
Disclaimer:
Please note that the stocks in Quick Pick segment can give a POP of +/- 10-15 % and is purely speculative in nature. This is reccomendation for a person with High Risk appetite and its very risky proposition.

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Wednesday, October 14, 2009

Top Three Investment Ideas this Diwali

One of the reader of my blog posted me a query asking me What would be Top Three Investment Ideas this Diwali?
The said reader of my blog needs investment idea for this Diwali under the below mentioned constraint 
1. Neither he has enough time to research and keep track of Equity / Company performance NOR enough knowledge to do value picks.
2. Wants to remain invested and put in regular sum, per month for next 10-15 years.

3. The amount he plans to invest every month is over and above his allocation for short to medium term goals
4. He want returns better than what Debt / Medium risk instruments provide.
5. Instrument Liquidity should be quiet reasonable.
6. Amount he plans to invest per month is Rs. 10000/-

Well given the constraints I evaluated options; the only option that I could narrow down on was equity investment. Basically Equity investment provides high returns over 10+ years with fair amount of liquidity. Guess what? Yes you figured out this doesn't sound likely satisfying requirement of "lack of time to do research". 
Yes it is true that Direct Equity Investment does need some knowledge of picking good value stocks and will also consume time for keeping track of the company performance. But there is a smart way to put your money to work without really investing time.

I am recommending following three Investment Ideas for this Diwali and many more Diwali's to come. The options provided below are good even for investments at regular intervals for long term goals.

I. Gold ETF:
Most of us (who can afford) do buy gold during Dushera / Diwali (Dhanteras) which apparently happens to be tomorrow. Gold as asset provides very good returns over long term and also acts as hedge against inflation. Please read my article on Gold ETF on this blog for more details. As you are / must be well aware there isn't any need to track gold prices and/or related performance criteria.
FinWin suggests allocating 15 - 20% of funds towards buying Gold ETF regularly every month.

II. Diversified Equity Mutual Fund
An indirect way of exposure to Equity Markets (Capital Markets) is through Mutual Fund schemes. This is simplest form of investment into equity where an investor doesn't really need to put in time. The advantage here is given fund has dedicated fund manager and skilled financial analyst to do research and identify good growth oriented companies with good fundamentals. For more please read article on Equity Oriented funds.
FinWin has short listed few funds to create a Systematic Investment Plan as per list below the list provided below isn't exhaustive, you can also see some good web site like easymf / valueresearchonline that provides ranking to mutual funds and select Diversified Equity fund with 4-5 star ratings
1. Reliance RSF Equity Growth Fund
2. Sundaram BNP Paribas Select Focus Growth
3. DSP Black ROck Top 100 - Growth option
4. HDFC Top 200 - Growth option
5. Birla Sun Life Fronline Equity - Growth option
Please note that in every fund I have proposed Growth option because that is what we need is growth over long term its unadvisable to take dividend option because overall cost and growth.
Select any three diversified equity funds create monthly SIP allocation of 20% to each fund’s over next 10 -15 years.

III. Index ETF

Index Exchange Traded Funds are essentially Index Funds that are listed and traded on capital markets (exchanges) like equities. An ETF is a basket of stocks that reflects the composition of an Index, like S&P CNX Nifty or BSE Sensex. The ETFs trading value is based on the net asset value of the underlying stocks that it represents. Think of it as a Mutual fund that you can buy and sell in real-time at a price that change throughout the day.
Index ETF doesn't need time to be invested in research of underlying stocks and as such is passively managed funds. They provide returns of 12-18% CAGR over long term. For more details read Index ETF article on this blog.
FinWin suggest allocating remaining 20-25% of the fund into Index ETF every month.

The above three ideas overcomes all the constraints of the reader and provides return comparable to returns provided by equity over long period of time without actually investing time. In short the idea is to put your money to work from Diwali to Diwali for years to come.

Happy Investing

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Sunday, October 11, 2009

Ratio Analysis

One of the most intriguing aspects of investing is investing in equities. Equities are high risk high reward vehicles of investments. Given their high risk nature one should scientifically approach this investment alternative. Equities can be dealt with directly i.e. investing directly in the stock market or through a mutual fund where experts manage our funds. A small amount of equity exposure is always good as it would help us understand how the market functions and leads us to wise decision making even while choosing a mutual fund.

Equity investment decisions need to be researched and thought through thoroughly to earn high rewards. We need to understand that analyzing investing in equity is analyzing a business which is a going concern. Over the lifetime of an organization, it will traverse through phases and will have different outlook towards business. All these need to be captured quantitatively in one form or another to reach a sound decision on investment.

Ratio analysis helps us in this area of equity research. Absolute numbers though important fail to provide a complete picture of an organization. For example, we can say that two competing firms A and B are profitable and have earned Rs. 50,000/- and Rs. 75,000/- as profit respectively but to get a clear idea about which firm is better we need to understand the amount they invested to earn the profits. This is exactly where ratio analysis helps us to understand things in a better fashion.

Ratio analysis can be defined as study of financial position of a company through various ratios derived from the financial statement s of the company.

Ratios are categorized into sections, these are
a) Liquidity Ratios
b) Activity Ratios
c) Debt Ratios
d) Profitability Ratios
e) Market Ratios

Liquidity ratios

Liquidity ratios inform us about the capacity of the company to service its debts with the assets that the company has at its disposal. Two of the most popular ratios in this category are current ratio and quick ratio.

Activity ratios

Activity ratio tells us about the firm’s ability to convert its non-cash assets into cash assets. This in turn means that this ratio tells how efficient an organization is, when it comes to managing its inventories. It’s a common knowledge that managing inventory efficiently is a hallmark of a good organization.

Debt ratios

Long term debts need to be secured. Ratios in this category are indicators of an organizations ability to service its long term debt. Debt ratios are also known as leverage ratios and these ratios tell us the extent of debt in an organizations capital structure.

Profitability ratios

An organizations aim is to generate profit for its investors. Profitability ratios are indicators of the efficiency of an organization in terms of using its assets to generate profit for the shareholders. These ratios tell us the trends of an organization like if a company is doing better than previous year, or is its profitability declining.

Market Ratios

A shareholder invests in an organization with a view of earning profit on the investment. These ratios are particularly helpful in analyzing if an organization has rewarded shareholders in terms of return on their investment in the organization. These ratios along with the profit ratios are important in analyzing an organizations ability to enrich its investors. Price to earnings ratio is a popular ratio which falls under this category.

Going ahead, we will see each of these ratio categories in detail.

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Saturday, October 10, 2009

Just for Gag! Stock Market Humour

Bull Market - A random market movement causing an investor to mistake himself for a financial genius.
Bear Market - A 6 to 18-month period when the kids get no allowance and the wife gets no jewelery
Momentum Investing - The fine art of buying high and selling low.
Value Investing - The art of buying low and selling lower.
P/E ratio - The percentage of investors wetting their pants as the Market keeps crashing
Standard & Poor - Your life in a nutshell
Stock Analyst - Idiot who just downgraded your stock
Stock split - When your ex-wife and her lawyer split all your assets equally between themselves

Institutional Investor - Past year investor who's now locked up in a nut house
Market Correction - The day after you buy stocks

Bounce Back Rally - The day after you sell stocks
Cash Flow - The movement your money makes as it disappears down the Toilet.
Call Option - Something people used to do with a telephone in ancient times before e-mail
Day Trader - Someone who is disloyal from 9-5

Profit - Religious guy who talks to God.
Alan Greenspan - God
Bill Gates - Where God goes for a loan

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Thursday, October 8, 2009

Indices : BSE Sensex - The Barometer of Indian Capital Markets

SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. The base year of SENSEX was taken as 1978-79. 

SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is scientifically designed and is based on globally accepted construction and review methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. The "free-float market capitalization-weighted" methodology is a widely followed index construction methodology on which majority of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.

The growth of the equity market in India has been phenomenal in the present decade. Right from early nineties, the stock market witnessed heightened activity in terms of various bull and bear runs. One can identify the booms and busts of the Indian equity market through SENSEX. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979 onwards). No wonder, the SENSEX has become one of the most prominent brands in the country.

Current list of sensex constituents is as below:



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Wednesday, October 7, 2009

High Return Corporate Fixed Deposit Scheme

Jaiprakash Associate Limited a part of Jaypee group offers lucrative fixed deposit scheme:

Highlights:
Non-Cumulative Deposit
Tenure: 1 to 3 years
Rate of Returns: 11 to 12 % p.a.
Min. Investment: INR 10000/- to INR 15000 depending on payout terms
Payout: Monthly and Quarterly

Risk: Credit rating from Credit rating agency not known (check website for more details)

Cumulative Fixed Deposit

Tenure: 6 month to 3 years
Rate of Returns: 11 to 13% CAGR
Payout: On Maturity
Risk: Credit rating from Credit rating agency not known (check website for more details)


At the look of it the fixed deposit scheme looks quite attractive from a good company, but before taking an investment decision ensure to read all terms and conditions, risk factors etc. I am not sure if the scheme has sought any credit ratings for the instrument from 3rd Party Credit Rating agencies like ICRA, CRISIL or any others.
Click here for more details or
Alternate link for more details

Disclaimer: This isn't a recommendation but just an information of investment avenues available and an investor should do due diligence before investing. I myself might put some investment in this instrument due to its tenure and return profile with all the risk involved

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Saturday, October 3, 2009

Investment in Debt - III

Debt Oriented Mutual Funds
In my earlier article we have discussed about Equity Oriented Mutual Funds. Basically Mutual Funds instruments are actively managed by professional fund managers. As such this is one of the best method to take exposure to various asset classes specially for new investors. These funds are available in many flavors and individual needs to find best suited funds as per his requirements like equities, fixed income, hybrid funds which are mix of both and / or funds with different exposure rates to equities / fixed income fund, capital protector fund so on and so forth.


Why invest in Mutual Funds?
As stated earlier Mutual funds and investment instruments managed by professional fund managers. If you are a person who doesn't have inclination, great understanding of financial markets, lack disciplined approach towards equity markets, or lack skill to invest directly into equity markets. Or maybe you need to get exposure to some of the investment instruments that you as an individual cannot participate directly. Or you are looking to achieve risk diversification / appropriate asset allocation then Mutual Funds would be the most preferred route.


Debt Mutual Funds have many flavors like:
Capital Protection funds:
The objective of such fund is to protect the capital at the same time try and achieve growth through investing a small portion into the equity markets. The major investment (80-90 %) in such funds are in fixed tenure and fixed returns instruments like PSU / corporate bonds, government securities etc. The income derived from such investment and / or fixed portion of assets under management are invested into equities of high growth companies.. Thus achieve both capital protection and capital appreciation. This funds are best suited for investors with low risk appetite. Besides a person who is nearing to his long term goals in next couple of years can also seek to invest in such funds after switching out of long term investments that he had created for the respective goals.


Returns though not guaranteed they achieve better returns than what a bank fixed deposit provides.  Options available are getting regular payouts by way of dividend or to select growth options as the need maybe. Liquidity is provided by the funds by buying back the fund at the prevailing asset value of the fund.


Floating Rate Funds
This concept came into lime light came into lime light couple of years back with interest rates going up the investors who had invested in fixed rate securities felt left out in the rally of interest rates. Thus fund managers came out with Floating Rate Fund (FRF) concept. The FRF invest in floating rate debt securities and some exposure to fixed rate debt instruments. Floating rates are linked to a benchmark rate for debt securities for e.g MIBOR The basic objective of fund is to generate income at current rate and provide capital protection as well.


Returns from these funds is better than usual Bank fixed deposits as such investments are safe gaurd against short term rate fluctuations. The fund would perform well in rising interest rate scenarios. These funds are typically suitable for short term investment horizon and needless to say for person with low risk appetite.


Gilt Fund
Gilt funds, as they are conveniently called, are mutual fund schemes floated by asset management companies with exclusive investments in government securities. GILT funds are best suited for those who are looking for parking their investment in safe and secured instruments. Since the investment is made purely in government securities which carry zero default risk and provide high liquidity. These funds are for person with low risk appetite with medium to long term investment horizon.



Monthly Income Plans
Monthly Income Plan (MIP) are funds with objective to generate regular income and capital appreciation. In order to achieve these objective the funds collected is invested debt, money market instrument as well as equity or equity oriented instruments. Usually quite a few funds have higher exposure to equity in order to generate higher returns. So before investing in MIP one must carefully examine mandate of the fund for asset allocations. In short term the returns may be volatile.


The fund is is for a person with balanced risk appetite and one who needs income at regular intervals. Rate of return usually outstrips returns provided by Bank FD/ Pure debt funds on either side due to inherent risk exposure in short term.


Pension funds
Under these funds fund manager has mandate to seek capital appreciation in long haul. Thus equity exposure in such funds is usually quite high. But many pension funds offer varying asset allocation based on risk profile of an investor like Aggressive fund (High exposure to Equity), Balanced fund (50-65% in Equity), Capital Protector fund (low exposure to equity instruments). Investment in these fund are very tax efficient and provides tax benefit at the time of entry and also acts as annuity  providing regular returns post retirement. Pension funds has found quite a favor amongst investors due to its tax benefits and returns provided over long term.


These funds are ideally suited for regular disciplined investors who wants to create corpus for post retirement goals. A must investment recommended by FinWin in every portfolio if you don't have one go out today and buy one and ensure regular contribution to such funds for your retirement planning. Standard disclaimer applies

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