Principal Mutual has announced a dividend of 110 per cent and 25 per cent under Principal Personal Tax Saver Fund and Principal Growth Fund, respectively. The record date for the same is December 31, 2007.
(by valueresearch)
Mutual Fund News update from Nishit Doshi (9824021680) a leading MF Advisor based in Ahmedabad. Gujarat.
Friday, December 28, 2007
Dividend Declaration under Two Schemes of Principal
(by valueresearch)
HDFC MIP Long-term-G
With as much as 25% exposure to equities, HDFC MIP Long-term is one of the most aggressive of its types. And it is this aggressive nature that has kept the fund ahead of its peers
With debt investors expecting double digit returns; HDFC MIP Long Term has delivered. With 25 per cent of assets committed to equity, it has been amongst the most aggressive in its category. As of September 30, 2007, only two MIPs (of a total 38) maintained an exposure of more than 25 per cent to equity. Given the fabulous rally in equities since its inception, it is no wonder that the fund stands unbeaten; managing a fifth of the category's assets under management and ranking ahead of its peers based on pure returns.
Within its equity portfolio the fund sticks to a long term strategy, with little churn in the portfolio. The fund has however shown more aggression in the debt side. While traditionally the fund has shown a preference for high quality AAA rated paper, this year there has been a move to extract higher yields and look at AA and below rated papers. Since June this year the average maturity period of the fund's debt holdings has also increased.
A higher maturity profile in turn makes the fund more sensitive to interest rate changes. This may well be a tactical move in expectations that henceforth interest rates will move south. While the fund in itself has not witnessed many bear phases, its equity portfolio manager fills in the gap, he is amongst the most experienced in the industry. There has been a discernible improvement in the fund's performance during down phases. Over the recent slide during the quarter of March 2007, the fund delivered a 0.76 per cent increase, safer than the average category's loss of (-) 0.31 per cent. All in all, an aggressive fund that keeps costs consistently below average and diligently distributes dividends is how you can describe from the fund.
(by valueresearch)
With debt investors expecting double digit returns; HDFC MIP Long Term has delivered. With 25 per cent of assets committed to equity, it has been amongst the most aggressive in its category. As of September 30, 2007, only two MIPs (of a total 38) maintained an exposure of more than 25 per cent to equity. Given the fabulous rally in equities since its inception, it is no wonder that the fund stands unbeaten; managing a fifth of the category's assets under management and ranking ahead of its peers based on pure returns.
Within its equity portfolio the fund sticks to a long term strategy, with little churn in the portfolio. The fund has however shown more aggression in the debt side. While traditionally the fund has shown a preference for high quality AAA rated paper, this year there has been a move to extract higher yields and look at AA and below rated papers. Since June this year the average maturity period of the fund's debt holdings has also increased.
A higher maturity profile in turn makes the fund more sensitive to interest rate changes. This may well be a tactical move in expectations that henceforth interest rates will move south. While the fund in itself has not witnessed many bear phases, its equity portfolio manager fills in the gap, he is amongst the most experienced in the industry. There has been a discernible improvement in the fund's performance during down phases. Over the recent slide during the quarter of March 2007, the fund delivered a 0.76 per cent increase, safer than the average category's loss of (-) 0.31 per cent. All in all, an aggressive fund that keeps costs consistently below average and diligently distributes dividends is how you can describe from the fund.
(by valueresearch)
In Search of High Returns
I intend investing Rs 30,000 in an equity fund for the next six months. I am looking at a 20-25 per cent return. My aim is to utilise this money for my wedding expenses. Please advise which funds to invest in.
With the markets on fire, it is difficult to sound convincing while answering such a query. But the truth is that equity markets are extremely volatile and risky in the very short term of six months to a year. That is not to say that a 20-25 per cent return is inconceivable. It has happened in the past. The Sensex returned an impressive 20 per cent during the September 2005 quarter (July -September) and again during the March 2006 quarter. But don't count on it. Such a strategy is nothing short of gambling. You might as well try your luck at the casino.
(by valueresearch)
With the markets on fire, it is difficult to sound convincing while answering such a query. But the truth is that equity markets are extremely volatile and risky in the very short term of six months to a year. That is not to say that a 20-25 per cent return is inconceivable. It has happened in the past. The Sensex returned an impressive 20 per cent during the September 2005 quarter (July -September) and again during the March 2006 quarter. But don't count on it. Such a strategy is nothing short of gambling. You might as well try your luck at the casino.
(by valueresearch)
Pink Health
Reliance Pharma has beaten peers in its category by leaps and bounds
The pharma sector has proved to be a laggard in the past one year. For the one-year period ended December 10, 2007, the BSE Health Care index gained a meager 9.61 per cent. Naturally, it's only fair to expect pharma funds to be badly hit. And that they are. There are currently five pharma funds in the industry, managing overall assets of Rs 351 crore (as on November 30, 2007). All of them together delivered an average return of 9 per cent, underperforming the index. But, Reliance Pharma appears to be in the pink of health. It has outperformed the category and its peers convincingly. During the same one-year period when the category average was 9 per cent and the pharma index delivered 9.61 per cent, this fund gave an astounding 43.2 per cent return. This is nothing new for the pharma fund. Reliance Pharma has managed to top the category ever since it's launch in 2004 and has maintained a concentrated portfolio of 13-15 stocks for over a year now. The fund managed to lead the pack by going for some excellent stock picks like Divi's Laboratories. The stock has yielded 223.4 per cent in the above one-year period. The stock continues to be its top holding.
Other picks that have paid off include Ankur Drugs & Pharma and Dishman Pharmaceuticals & Chemicals.
Being the biggest in its category, the fund has Rs 117 crore (as on November 30, 2007) of assets under management.
(source: valueresearch)
The pharma sector has proved to be a laggard in the past one year. For the one-year period ended December 10, 2007, the BSE Health Care index gained a meager 9.61 per cent. Naturally, it's only fair to expect pharma funds to be badly hit. And that they are. There are currently five pharma funds in the industry, managing overall assets of Rs 351 crore (as on November 30, 2007). All of them together delivered an average return of 9 per cent, underperforming the index. But, Reliance Pharma appears to be in the pink of health. It has outperformed the category and its peers convincingly. During the same one-year period when the category average was 9 per cent and the pharma index delivered 9.61 per cent, this fund gave an astounding 43.2 per cent return. This is nothing new for the pharma fund. Reliance Pharma has managed to top the category ever since it's launch in 2004 and has maintained a concentrated portfolio of 13-15 stocks for over a year now. The fund managed to lead the pack by going for some excellent stock picks like Divi's Laboratories. The stock has yielded 223.4 per cent in the above one-year period. The stock continues to be its top holding.
Other picks that have paid off include Ankur Drugs & Pharma and Dishman Pharmaceuticals & Chemicals.
Being the biggest in its category, the fund has Rs 117 crore (as on November 30, 2007) of assets under management.
(source: valueresearch)
Thursday, December 27, 2007
Timing Pitfalls
I want to invest some money in the market but I think it is already at a very high level. Should it fall, I may lose my capital. But should it continue to rise, I will gain. I am planning to invest in an equity fund as and when the market corrects 200 points. Please advice.
- Anonymous
What you are doing is trying to time the market. Here's our advice to everyone waiting for a correction. There may not be one. The laws of physics do not apply to stock markets; therefore what goes up need not come down. At least not in the near and immediate future.
Stick to a simple principle of investing regularly. If you have a lump sum amount, invest it in an ultra short-term debt fund and institute a Systematic Transfer Plan into an equity fund. Else stick to a plain vanilla SIP. Once done, all you need to do is monitor your fund for slackness in performance. If you are invested in a Value Research rated fund, look out for a re-rating of the fund. It's really as simple as that.
(valueresearchonline)
- Anonymous
What you are doing is trying to time the market. Here's our advice to everyone waiting for a correction. There may not be one. The laws of physics do not apply to stock markets; therefore what goes up need not come down. At least not in the near and immediate future.
Stick to a simple principle of investing regularly. If you have a lump sum amount, invest it in an ultra short-term debt fund and institute a Systematic Transfer Plan into an equity fund. Else stick to a plain vanilla SIP. Once done, all you need to do is monitor your fund for slackness in performance. If you are invested in a Value Research rated fund, look out for a re-rating of the fund. It's really as simple as that.
(valueresearchonline)
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