DWS Mutual Fund announced a 10% dividend (Rs 1.00 per unit on a face value of Rs 10), under the dividend option of DWS TAX SAVING FUND .
The record date of the same has been fixed as
Mutual Fund News update from Nishit Doshi (9824021680) a leading MF Advisor based in Ahmedabad. Gujarat.
Sunday, January 27, 2008
10% Dividend into DWS Tax Saving Fund.
Catch top & consistent performer - UTI Infrastructure Fund
Are you exploring investment avenues to earn handsome gains? Better ways to achieving this objective is to invest in equities or equity oriented instruments in an increasingly popular Indian markets. But one needs to be cautious in the search of better returns, as your investment is exposing to risk of losing of capital invested. UTI Infrastructure Fund can help you to manage this task efficiently. If you look at the objective of UTI Infrastructure and performance of the fund since launch, you will observe that the fund stood firm to its objectives. Launched in March 2004, the UTI Infrastructure with objective of providing the investors growth of capital over a period of time as well as to make periodical distribution of income from investment in stocks of respective sectors of the Indian economy.
UTI Infrastructure has delivered first-rate returns in the long as well as short term horizon. Look at returns (annualised) over the past one year, the fund bestowed 64.39% beating the benchmark BSE 100 index by a wide margin of 18.86%. In longer term perspective, the fund presented returns of 53.82% and 56.09% during the past two and three years respectively, as against 40.88% and 43.82% provided by benchmark index in the same period. In the near term also, the fund reported return (absolute) of 55.38% in last six months, as against 41.85% returns delivered by benchmark index in the same period.
When queried by myiris about how the fund is different from its peers, Sanjay Dongre, manager of the fund said, "Consistency is our USP. UTI Infrastructure Fund has been, one of the most consistent performers, on a longer time horizon, among the theme based funds available in the market." "We have been sticking to the investment objective of the fund. Unlike other funds, UTI Infrastructure Fund has a good mix of large cap and mid cap stocks," he added.
During the year, total assets corpus of the fund jumped by 165.40% to Rs 14,173.8 million in September 2007 compared with Rs 5,340.54 million in October 2006.Since the past performance of the fund does not provide any guarantee of future, investors needs to understand how the fund house is utilising your money. Let's understand this process step by step. At least 90% of total assets corpus of the fund is invested in equities and rest in the debt instruments. The fund while picking up the stocks, selects high growth oriented stocks. "UTI Infrastructure Fund follows a top down approach with regard to stock selection, keeping in mind the evolving economic scenario. The fund endeavour to pick sectors, which are expected to perform better and select fundamentally strong companies within those sectors," Dongre said.
The fund is primarily betting on basic engineering, energy, and construction sectors. These sectors are accounting for about 57% of total assets corpus. Commenting on prospects of these sectors, Dongre said, "We continue to remain bullish on these sectors and we feels that there is significant value that can be extracted over the long term."
The hike in fund allocation in union budget to rural infrastructure development, to boost to power generation and transmission segments together with rise in defence capital expenditure by government are some of the positives for the engineering companies. The government is largely focusing on power sector to remove power scarcity. Recently, the government granted two of the Ultra Mega Power Projects (UMPP) at Sasan and Mundra. This is expected to help companies engaged in the business of power. Since government spending on infrastructure is the most important growth driver for construction companies, the proposed increase in allocation in union budget will translate into awarding of more projects.
While advising to the investors, Dongre said, "Person having higher risk appetite and medium to long term horizon should invest in UTI Infrastructure Fund. Never attempt to time the market, systematic investment plan is the best way of taking advantage of volatility in the stock market."
(by myiris)
UTI Infrastructure has delivered first-rate returns in the long as well as short term horizon. Look at returns (annualised) over the past one year, the fund bestowed 64.39% beating the benchmark BSE 100 index by a wide margin of 18.86%. In longer term perspective, the fund presented returns of 53.82% and 56.09% during the past two and three years respectively, as against 40.88% and 43.82% provided by benchmark index in the same period. In the near term also, the fund reported return (absolute) of 55.38% in last six months, as against 41.85% returns delivered by benchmark index in the same period.
When queried by myiris about how the fund is different from its peers, Sanjay Dongre, manager of the fund said, "Consistency is our USP. UTI Infrastructure Fund has been, one of the most consistent performers, on a longer time horizon, among the theme based funds available in the market." "We have been sticking to the investment objective of the fund. Unlike other funds, UTI Infrastructure Fund has a good mix of large cap and mid cap stocks," he added.
During the year, total assets corpus of the fund jumped by 165.40% to Rs 14,173.8 million in September 2007 compared with Rs 5,340.54 million in October 2006.Since the past performance of the fund does not provide any guarantee of future, investors needs to understand how the fund house is utilising your money. Let's understand this process step by step. At least 90% of total assets corpus of the fund is invested in equities and rest in the debt instruments. The fund while picking up the stocks, selects high growth oriented stocks. "UTI Infrastructure Fund follows a top down approach with regard to stock selection, keeping in mind the evolving economic scenario. The fund endeavour to pick sectors, which are expected to perform better and select fundamentally strong companies within those sectors," Dongre said.
The fund is primarily betting on basic engineering, energy, and construction sectors. These sectors are accounting for about 57% of total assets corpus. Commenting on prospects of these sectors, Dongre said, "We continue to remain bullish on these sectors and we feels that there is significant value that can be extracted over the long term."
The hike in fund allocation in union budget to rural infrastructure development, to boost to power generation and transmission segments together with rise in defence capital expenditure by government are some of the positives for the engineering companies. The government is largely focusing on power sector to remove power scarcity. Recently, the government granted two of the Ultra Mega Power Projects (UMPP) at Sasan and Mundra. This is expected to help companies engaged in the business of power. Since government spending on infrastructure is the most important growth driver for construction companies, the proposed increase in allocation in union budget will translate into awarding of more projects.
While advising to the investors, Dongre said, "Person having higher risk appetite and medium to long term horizon should invest in UTI Infrastructure Fund. Never attempt to time the market, systematic investment plan is the best way of taking advantage of volatility in the stock market."
(by myiris)
UTI Infrastructure Advantage Fund debuts at Rs 9.56
UTI Infrastructure Advantage Fund - Series I, has debuted at Rs 9.56 per unit as against a face value of Rs 10 per unit yesterday. (Check out - Mutual Fund New Fund Listings)
UTI Infrastructure Advantage Fund - Series I NFO was launched on November 12, 2007 and closed on December 18, 2007.
UTI – Infrastructure Advantage Fund - Series I, is a three year close-ended equity scheme with an investment objective to provide income stribution and /or medium to long term capital appreciation by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy.
(by moneycontrol)
Pick your child's insurance plan carefully
What’s the biggest financial commitment of a parent today? At least two out of three say, “It’s to meet the rising costs of their child’s education.” The fact is that most financial planners say that as inflation rises, the first thing to get impacted is the education sector. Planning for the child’s future is an important step. Child insurance plans are one of the tools that help parents secure the financial future of their child. Children’s insurance policies have always been popular in India, but their significance has gone up of late due to rising costs, particularly in education, says Aviva India associate director Vishal Gupta. Earlier, the trend was that a policy was taken in a child’s name, which was a simple money-back plan. Now, parents take a term cover in their name, which would be replaced if there is any loss of income due to the untimely death of any of the earning parents. So, it has the twin benefits of investment and protection, says Pranav Mishra, senior VP & head products, ICICI Prudential Life Insurance. How do these plans work? Most of these child insurance plans aim to meet your financial needs. For example, ICICI Prudential Life has three variants under the SmartKid plan. These insurance plans provide you with funds at pre-fixed intervals, which will help you meet your child’s financial needs at different milestone years. In addition to this, if a parent signs up for an income benefit rider, the child gets 10% of the sum assured till the child reaches his/her milestone years, which compensates the income loss. Similarly, if you have a Unit Linked Insurance Policies (ULIP)-linked endowment plan in your child’s name, you can prematurely withdraw 20% of the sum assured after 5 years from the effective date of the policy. In the case of Aviva’s Little Master Plan, you can avail of the benefit of premium waiver. In case of a parent’s death, all future premiums are paid in a lump sum to take back as partial withdrawals during the last five policy years. If the parent opts for a comprehensive health benefit rider, upon contracting 18 listed illnesses, your child can avail of the above benefits. Similarly, if the parent opts for an income-benefit rider, in case of the death of the parent, the plan provides a regular pre-determined income at every future policy anniversary to meet the present education expenses. These are either conventional endowment plans or ULIPs, which aim to generate handsome returns over and above the insurance cover for the earning parents. Are they worth the money? There are various savings instruments available like PPF, MFs, shares, gold, real estate, etc. Adds Mr Gupta, “The insurer pays the sum assured to the nominees immediately after the demise of the parents. Additionally, the insurance company starts putting in the premium amount into the same plan on behalf of the policyholder. This money keeps growing and is given to the nominee once the policy matures. However, financial planners have a different take. They say a child plan is nothing but an endowment policy, which could either be a ULIP or a conventional plan. Touchstone Wealth Planners certified financial planner (director) Rishi Nathany explains: “I would suggest an investor should go for a MF. Insurance is any day costlier.” A parent should go for a term policy be it a working father or a mother, on whose income the child’s future is dependent. That will take care of the child’s financial needs in case of untimely death of any of the working parents. Then, for the child’s future, you should create a specific financial plan through systematic investment planning (SIP) in mutual funds (equity/balanced). Most parents start planning for their children over 10-20 years before their milestone years. Now, equity is one of the asset classes that generates handsome returns over this time span, he adds. If you are a risk averse investor, you can look for a balanced fund or MIP structure to invest in MFs. Kotak Asset Management’s Kotak Star Kid aims to provide for a parent’s goal of creating wealth for his/her child, through the SIP route. Explains Kotak Asset Management CEO Sandesh Kirkire, “Under the Star Kid Plan, which comes with an insurance component, if there is a calamity and you are not able to fund your SIP, the scheme will take care of the remaining unpaid SIPs.” But then, nothing stops an individual from separating his investments and risk needs. A pure term cover from an insurer coupled with investments from top rated equity/balanced funds should do the trick. (by outlook money) |
Save and be Insured
Kotak MF offers SIP with a cheap life cover
Bundling your insurance and investment needs into one is an expensive proposition. For example, unit-linked insurance policies charge a first-year commission as high as 30 per cent.
But, now you have a mutual fund (MF) that will meet both these needs at a much lower cost.
Kotak MF has launched Kotak Star Kid (KSK), which merges investment and insurance needs at a lower cost. All you need to do is start a fresh systematic investment plan (SIP) in either the Kotak 30 scheme or the Kotak Tax Saver fund over a tenure of either 5, 10, 15 or 20 years. You can then appoint your child as the nominee.
KSK offers you a life cover—provided by Kotak Life Insurance—at an entry load of 3.25 per cent, 1 percentage point more than what SIPs typically charge (2.25 per cent).
Your choice is not unlimited though; the mutual fund has laid out the options for you depending on your age (see Your Options). Since KSK is aimed at fulfilling the needs of your child and also insuring them, it is open for ages 23 to 45 years.
How much cover?
At any time after the 13th month, your cover is the sum total of the remaining SIP instalments. For instance, if a unitholder opts for a 5-year SIP at a monthly sum of
Rs 5,000, and dies in the 13th month, the amount that the nominee gets will work out to be Rs 2.40 lakh (60 months less 12 months x Rs 5,000). Until the 12th month, the cover is 10 times the monthly SIP value. Under both cases, the nominee will also receive the prevailing value of all the instalments already made. No medical tests are required up to a maximum cover of Rs 10 lakh; between Rs 10 lakh and a maximum cover limit of Rs 1 crore, tests are mandatory. KSK does not cover existing SIPs; you’ll need to start a fresh one if you wish to opt for this facility.
KSK is akin to the Super SIP facility that DSP ML MF had launched in 2005, but is different in bits. Despite being a good initiative, the product found few takers as many investors refused to commit money for the long-term. Sandesh Kirkire, chief executive officer, Kotak MF, however, is confident that KSK will work because he says the product is simpler to understand than Super SIP. “Also, KSK is an on-going facility and is open throughout. Unlike SSIP, we do not intend to keep it open for a limited time period,” says Kirkire.
Should you opt for it?
At present, KSK is available only in Kotak 30 and Kotak Tax Saver. It’s not yet available in Kotak Opportunities fund (KOF)—the MF’s most successful fund in the past three years. Kirkire assures that KOF and a host of other Kotak schemes will soon get included in KSK. By turning the tables on insurance companies on the back of sweetening systematic investing with a cheap insurance cover, here’s one effort that ought to give a boost to the MF industry caught on the wrong side on account of aggressive mis-selling of Ulips on the back of higher commission. Opt for KSK in Kotak 30 or wait till the MF includes KOF in the plan.
(by outlook money)
Bundling your insurance and investment needs into one is an expensive proposition. For example, unit-linked insurance policies charge a first-year commission as high as 30 per cent.
But, now you have a mutual fund (MF) that will meet both these needs at a much lower cost.
Kotak MF has launched Kotak Star Kid (KSK), which merges investment and insurance needs at a lower cost. All you need to do is start a fresh systematic investment plan (SIP) in either the Kotak 30 scheme or the Kotak Tax Saver fund over a tenure of either 5, 10, 15 or 20 years. You can then appoint your child as the nominee.
KSK offers you a life cover—provided by Kotak Life Insurance—at an entry load of 3.25 per cent, 1 percentage point more than what SIPs typically charge (2.25 per cent).
Your choice is not unlimited though; the mutual fund has laid out the options for you depending on your age (see Your Options). Since KSK is aimed at fulfilling the needs of your child and also insuring them, it is open for ages 23 to 45 years.
How much cover?
At any time after the 13th month, your cover is the sum total of the remaining SIP instalments. For instance, if a unitholder opts for a 5-year SIP at a monthly sum of
Rs 5,000, and dies in the 13th month, the amount that the nominee gets will work out to be Rs 2.40 lakh (60 months less 12 months x Rs 5,000). Until the 12th month, the cover is 10 times the monthly SIP value. Under both cases, the nominee will also receive the prevailing value of all the instalments already made. No medical tests are required up to a maximum cover of Rs 10 lakh; between Rs 10 lakh and a maximum cover limit of Rs 1 crore, tests are mandatory. KSK does not cover existing SIPs; you’ll need to start a fresh one if you wish to opt for this facility.
KSK is akin to the Super SIP facility that DSP ML MF had launched in 2005, but is different in bits. Despite being a good initiative, the product found few takers as many investors refused to commit money for the long-term. Sandesh Kirkire, chief executive officer, Kotak MF, however, is confident that KSK will work because he says the product is simpler to understand than Super SIP. “Also, KSK is an on-going facility and is open throughout. Unlike SSIP, we do not intend to keep it open for a limited time period,” says Kirkire.
Should you opt for it?
At present, KSK is available only in Kotak 30 and Kotak Tax Saver. It’s not yet available in Kotak Opportunities fund (KOF)—the MF’s most successful fund in the past three years. Kirkire assures that KOF and a host of other Kotak schemes will soon get included in KSK. By turning the tables on insurance companies on the back of sweetening systematic investing with a cheap insurance cover, here’s one effort that ought to give a boost to the MF industry caught on the wrong side on account of aggressive mis-selling of Ulips on the back of higher commission. Opt for KSK in Kotak 30 or wait till the MF includes KOF in the plan.
(by outlook money)
Subscribe to:
Posts (Atom)