Wednesday, June 24, 2009

Pre-budget and Post Budget Market Performance

Pre-budget and Post Budget Market Performance


BSE Sensex

% Change


Year

One Month
Before Budget

Closing on
Budget Day

One Month
After Budget

Month Pre
Budget

Month Post
Budget

1991

982

1,220

1,168

24.2%

4.3%

1992

2,214

2,831

3,802

27.9%

34.3%

1993

2,681

2,652

2,225

-1.1%

-16.1%

1994

4,054

4,286

3,776

5.7%

-11.9%

1995

3,506

3,487

3,460

-0.5%

-0.8%

1996

3,925

3,808

3,406

-3.0%

-10.6%

1997

3,526

3,475

3,361

-1.4%

-3.3%

1998

4,007

3,643

3,231

-9.1%

-11.3%

1999

3,293

3,400

3,683

3.2%

8.3%

2000

5,336

5,447

5,041

2.1%

-7.5%

2001

4,330

4,274

3,788

-1.3%

-11.4%

2002

3,318

3,562

3,469

7.4%

-2.6%

2003

3,250

3,284

3,115

1.0%

-5.1%

2004

4,962

4,844

5,197

-2.4%

7.3%

2005

6,556

6,714

6,511

2.4%

-3.0%

2006

9,920

10,370

11,086

4.5%

6.9%

2007

14,091

12,938

12,884

-8.2%

-0.4%

2008

17,649

17,579

16,371

-0.4%

-6.9%

2009

15,104

??

??

??

??

Average since 1991

2.80%

-2.1%

Standard Deviation since 1991

9.2%

11.1%

Monday, June 8, 2009

SEBI pulls up Reliance MF for rule violation

Reliance Mutual Fund has filed the Compact Disc with respect to the advertisement clippings being telecast regarding the New Fund Offer (hereinafter “NFO”) of “Reliance Infrastructure Fund” with the Board only on June 3, 2009 even when the NFO opened on May 25, 2009.

In exercise of the powers conferred under Section 11(1) of Securities Exchange Board of India Act, 1992 (SEBI Act, 1992) SEBI issued Circular dated February 26, 2008 under Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996 (hereinafter referred to as Mutual Fund Regulations) to all Mutual Funds registered with SEBI.

The circular provides as under: “With effect from April 1, 2008…the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements.”

Further, in terms of Regulation 30(1) of the Mutual Fund Regulations, it is required that inter alia advertisements in respect of every scheme have to be submitted to the Board within 7 days from the date of issue.

However, Reliance Mutual Fund has filed the Compact Disc with respect to the advertisement clippings being telecast regarding the New Fund Offer (hereinafter “NFO”) of “Reliance Infrastructure Fund” with the Board only on June 3, 2009 even when the NFO opened on May 25, 2009.

The rapid fire manner in which the standard warning “Mutual Fund investments are subject to market risks, please read the scheme information document carefully before investing” as recited in the audio visual renders it unintelligible. This leads to a situation where the investors are not able to take well informed investment decisions. This is a serious violation.

Therefore, in order to protect the interest of the investors and for orderly development of the securities market, urgent directions in this regard need to be issued. Further, in order to ensure that such kind of violations do not continue or repeated to the detriment of the investors and also to act as a deterrent, certain preventive directions need to be issued immediately.

Accordingly, in exercise of the powers conferred upon me under Section 11(1), 11(4)(b), 11B read with Section 19 of the SEBI Act, 1992 and Regulation 76(1) of the Mutual Fund Regulations, I hereby direct Reliance Mutual Fund and Reliance Capital Asset Management Limited to forthwith withdraw the advertisement in its current form and re-issue the same, if it is so desired, strictly in compliance with the provisions of the aforesaid circular.

Further, Reliance Mutual Fund and Reliance Capital Asset Management Limited are directed to show cause as to why they should not be restrained from launching any new scheme for an appropriate period for the aforesaid violations. 9. This ex parte order may also be treated as a Show Cause Notice and Reliance Mutual Fund and the Reliance Capital Asset Management Limited may, if they so desire, submit their reply and may seek a personal hearing in the matter within fifteen days from the date of this order.

This order is passed on this day, the 3rd of June 2009 and shall come into force with immediate effect and continue till further orders.

Why invest in Infrastructure sector? India

Why invest in Infrastructure sector?

India's economic growth is closely knit with its infrastructure development.
Quality infrastructure is vital for growth.

Projected spending on infrastructure exhibits a huge scope of infrastructure
development in India which means strong earnings for infrastructure oriented
sectors & companies.

A stable reforms oriented government is likely to open doors for private and
foreign investment in infrastructure projects.

It has been estimated that India has the potential to absorb US$150 billion of
FDI in the next five years in the infrastructure sector alone.

Friday, June 5, 2009

Right time to invest in INFRASTRUCTURE Fund - India Stock Market

“If Economy is to Grow - Main focus should be on Infrastructure Development”
Right time to invest in INFRASTRUCTURE Fund.

Why Infrastructure Fund Now?
• Huge anticipated growth opportunity in the infrastructure sector.
• Attractive market valuations of companies related to infrastructure sector compared to their growth
potential
• Increased infrastructure spending driven by strong political-will and ease of project financing.

Value of Rs. 1 Lac if Invested in Infrastructure Fund

DSP Black Rock India Tiger Fund May-04 Start 10 Current NAV 37.10 current valuation 3,71,000

UTI Infrastructure Fund Apr-04 Start 10 Current NAV 30.03 current valuation 3,00,300

Tata Infrastructure Fund Dec-04 Start 10 Current NAV 27.10 current valuation 2,71,000

ICICI Prudential Infrastructure Fund Aug-05 Start 10 Current NAV 24.24 current valuation 2,42,400

Sundaram BNP Paribas Capex Opportunities Fund Sep-05 Start 10 Current NAV 18.69 current valuation 1,86,900

Canara Robeco Infrastructure Fund Nov-05 Start 10 Current NAV 17.49 current valuation 1,74,900

Birla Infrastructure Fund Feb-06 Start 10 Current NAV 12.99 current valuation 1,29,900

Sundaram BNP Paribas Select Mid Cap Fund

Sundaram BNP Paribas Select Mid Cap Fund
(Growth) Latest NAV as on 22/05/2009 = 90.71 (Gr.)

LUMSUM invested during inception would have become:
If you have invested 1,00,000 rs in Sundaram BNP Paribas Select Mid Cap Fund (Growth)
It would have become at current date 9,27,140 rs/=

Similartly,
Rs. 1,000 SIP (Monthly) done since inception would have become: (83,000 total investment) 1,95,435

GREAT HISTORY OF DIVIDEND
Total Dividend declared since inception (31st July, 2002)
280 % (Rs. 28 Per Unit)
Dividend Date Dividend(Rs. Per Unit)Dividend % Cum DividendNAV (Rs. Per Unit)
27/06/2003 2.50 25 % 13.23
21/11/2003 4.00 40 % 17.63
27/02/2004 3.50 35 % 14.64
17/09/2004 2.00 20 % 13.44
18/02/2005 2.00 20 % 15.03
23/09/2005 2.00 20 % 17.73
17/02/2006 2.50 25 % 20.52
18/08/2006 2.00 20 % 21.46
27/10/2006 4.00 40 % 21.56
09/02/2007 2.50 25 % 16.65
24/04/2009 1.00 10 % 10.77

Total 28.00 280 %