Monday, March 28, 2011
Tuesday, March 22, 2011
Goldman Sachs AMC all set to acquire EPFO money
In order to mark its entry into the Indian mutual fund industry, Goldman Sachs Asset Management Company (AMC) is all set to acquire Benchmark Asset Management Company, India’s largest exchange traded funds (ETF) player (subject to regulatory approvals).
At present Goldman Sachs AMC has an experienced team of eight persons based in Mumbai, headed by Mr. Prashant Khemka. The team currently provides research for off-shore funds including Indian equities and BRIC (Brazil, Russia, India and China).
India a school going kid also knows that Goldman Sachs and other huge investment banks of USA has played a major role in current US Depression.
Than why government of India wants to appoint this bank to manage the hard earned money of crores of employees of India?
In India we have very good fund managers who can manage this money very well than why Government of India wants to hire overseas fund manager like Goldman Sachs?
Reasons for such a takeover are quite obvious; to gain a foothold in the Indian mutual fund industry and to have a ready-made platform in terms of assets under management. This move is strategic, as the mutual fund industry is facing cut-throat competition.
At present Goldman Sachs AMC has an experienced team of eight persons based in Mumbai, headed by Mr. Prashant Khemka. The team currently provides research for off-shore funds including Indian equities and BRIC (Brazil, Russia, India and China).
India a school going kid also knows that Goldman Sachs and other huge investment banks of USA has played a major role in current US Depression.
Than why government of India wants to appoint this bank to manage the hard earned money of crores of employees of India?
In India we have very good fund managers who can manage this money very well than why Government of India wants to hire overseas fund manager like Goldman Sachs?
Reasons for such a takeover are quite obvious; to gain a foothold in the Indian mutual fund industry and to have a ready-made platform in terms of assets under management. This move is strategic, as the mutual fund industry is facing cut-throat competition.
Thursday, March 17, 2011
Investing in Gold ETF
Gold is seen as a symbol of security and a sign of prosperity. Indians regard gold jewellery as an investment and are well aware of gold’s benefits as a store of value. Gold is also recognized as a form of money in India, a tradable liquid asset.But now increasing rates of Gold has make it more like a good investment avenue.
It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures.
Increasing rate of Gold has made Gold out of reach of many buyers, so in order to boost investments in Gold many AMC's are launching Gold saving funds, Gold ETF's with SIP options.
Anil Ambani group firm Reliance Mutual Fund launched a new Gold Savings Fund, a first-of -its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.
The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here.
The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account -- a first in the country.
NOt only Reliance, but KOtal Mahindra also have launched Gold ETFs, main purpose of these GOld saving funds is to generate revenue for Gold Fund of Funds.
A "Gold Savings Fund" (also known as a "Gold Fund") is generally Fund of Fund (FoF) scheme which invests its corpus into an underlying Gold ETFs and benchmarks its performance against the physical prices of gold. Hence by doing so, it attempts to provide returns that closely correspond to the returns of its underlying Gold ETFs.
Gold is really a precious asset class to invest especially in current global unstability.
However, there is one concern with Gold Saving Funds and that is double charges.
i.e when someone invests in Gold Saving Funds, the charges doubles. This is because its Gold FoF.
So the investor will not only pay the Fund management charge of Gold Saving Funds but also pay the charges for those Gold ETFs in which Gold Saving funds invest.
It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures.
Increasing rate of Gold has made Gold out of reach of many buyers, so in order to boost investments in Gold many AMC's are launching Gold saving funds, Gold ETF's with SIP options.
Anil Ambani group firm Reliance Mutual Fund launched a new Gold Savings Fund, a first-of -its-kind investment scheme focused on gold, to tap a market that it expects to become bigger than even equity mutual funds.
The new fund, which is different from gold ETFs (Exchange Traded Funds) that require subscribers to have a demat account, will also offer investors the option to invest as little as Rs 100 per month, the company said here.
The company said that its Reliance Gold Savings Fund will enable investments in gold without any locker or demat account -- a first in the country.
NOt only Reliance, but KOtal Mahindra also have launched Gold ETFs, main purpose of these GOld saving funds is to generate revenue for Gold Fund of Funds.
A "Gold Savings Fund" (also known as a "Gold Fund") is generally Fund of Fund (FoF) scheme which invests its corpus into an underlying Gold ETFs and benchmarks its performance against the physical prices of gold. Hence by doing so, it attempts to provide returns that closely correspond to the returns of its underlying Gold ETFs.
Gold is really a precious asset class to invest especially in current global unstability.
However, there is one concern with Gold Saving Funds and that is double charges.
i.e when someone invests in Gold Saving Funds, the charges doubles. This is because its Gold FoF.
So the investor will not only pay the Fund management charge of Gold Saving Funds but also pay the charges for those Gold ETFs in which Gold Saving funds invest.
Yes, an investor investing in gold savings fund will have to bear both the charges, the fund management charge as well as the charge of the gold ETFs. But in return, a gold savings fund would enable you to enroll for SIP. Hence, in the long run the impact of the charges will be very negligible.
Read more information on Gold Saving Funds
Wednesday, March 9, 2011
PFC long term infrastructure Bond
Power Finance Corporation (PFC), has launched long term infrastructure bond, and PFC is planning to rasie plans to raise Rs 5,300 crores through the Tax Saving Long Term Infra Bonds under Section 80 CCF from 24th Feb 2011 to 24th Mar 2011. These PFC bonds would be the last issuer to issue infrastructure bonds in this financial year. The bonds carry a interest rate of 8.30 per cent for 10 years and 8.50 per cent for the 15-year series. There is a lock-in period of 5 years for 10 years bonds and 7 years for 15 years bonds.
As per section 80CCF of income tax, an individuals can invest up to Rs 20,000 in these bonds in addition to the Rs 1 lakh limit available under Sections 80C, 80CCC and 80CCD such as life insurance premium, provident fund, PPF and National Savings Certificate.
Read complete deatails here:
As per section 80CCF of income tax, an individuals can invest up to Rs 20,000 in these bonds in addition to the Rs 1 lakh limit available under Sections 80C, 80CCC and 80CCD such as life insurance premium, provident fund, PPF and National Savings Certificate.
Read complete deatails here:
Should you invest in PFC's Long-term Infrastructure Bonds?
Monday, March 7, 2011
Kotak Gold Mutual Fund
Kotak Gold Mutual Fund is not a Gold ETF, but in fact it is a Gold Fund of Fund, and its whole sole objective is to to generate returns by investing in units of Kotak Gold ETF. Kotak Gold Fund is a feeder fund which invest its corpous into Kotal Gold ETF.
Thus being passively managed, KGF enables its investors to invest in gold through a paper form, thereby providing the convenience of Systematic Investment Plan (SIP) as well as lump sum investments, but without having its investors to open a demat account to avail its benefits (which is unlike Gold ETFs). Since SIP is a special feature of KGF, it provides the convenience and advantage of rupee-cost averaging and compounding to its investors. Also since holding a demat account is not necessary, investors would not have to incur charges such as annual maintenance charge for demat account, delivery brokerage charges, transaction charges (while investing in demat mode) etc; thus making it a cost effective investment proposition.
Moreover liquidity too is not restrained by the fund, as investors can subscribe and redeem units on all business days directly from the AMC (while purchase and sale of gold ETFs depends upon the liquidity on the exchange).
Read More infomration on Kotak Gold Mutual Fund
Subscribe to:
Posts (Atom)