EIL Engineers India Limited FPO IPO: Analyst Recommendations

As described with detailes in the article EIL Engineers India Limited FPO IPO: Review Analysis & Details, the EIL FPO or Follow-on public offer is now open. However, what a common investor is wondering is whether this IPO or FPO from Engineers India Limited worth a shot or not.
In this article, we will provide the

Analyst Recommendations for EIL Engineers India Limited FPO IPO

Please note that these are consolidted recommendations based upon the various articles available in the print media and internet, and investors are cautioned that they should make thier own choice of investment, based upon their respective risk appetite.
Though Day 1 of the EIL Engineers India Limited FPO IPO did not see that enthusiastic response and the subscription for EIL Engineers India Limited FPO IPO was not that great in numbers to be called as "creating a buzz", but overall, the majority of the market analysts and experts are said to be in agreement that the EIL Engineers India Limited FPO IPO is a good option for a 1 to 2 year long horizon and investors can expect a good return.

The basic thought is that the company EIL is in the business of engineering, construction, etc. which are directly linked to the infrastructure sector. And the current government is very keen on the investment in Infrastructure sector. Being a state controlled and state run company, EIL is expected to benefit from these various factors which are said to be favourable to the business.

Analysts are setting various targets for EIL stock price in the short and long terms.
The EIL Engineers India Limited FPO IPO is being offered to Retail investors at 5% discount which is an additional benefit. The price band of 270 to 290 appears to be quiet fairly valued, as per majority of analysts.
The price target which is expected in the short term is around 310-320 and in the mid term it is expected to be in the range of 350 to 380 Rs. per share. Again, these are analysts expectations, investor should exercise caution and their individual needs should be kept in mind as nothing can be said about for sure in the stock markets game

EIL Engineers India Limited FPO IPO: Review Analysis & Details

Engineers India Limited is a state run government controlled company and it has now come out with the Follow On Public Offering or FPO something similar to an IPO is currently open.
In this article, we will look at the Review, Analysis and Details of the Engineers India Limited FPO and try to do the Review and analysis of Engineers India Limited FPO.

Engineers India Limited IPO: Review Analysis & Details

Some basic details first about the Engineers India Limited FPO, which are available as of now:

- The size of Engineers India Limited FPO is expected to be around 9,771,161,400.00 Rs.

What is the issue size of the Engineers India Limited IPO?
Around 9,771,161,400.00 Rs is the size of the IPO, calculated at the higher price band of the FPO.

How will the capital raised by Engineers India Limited IPO be used?
It is not known.

What is the price band of Engineers India Limited IPO?
The price band is at 270 to 290 Rs. per share - final price to be decided by a 100% book building process

How many shares will be sold in the Engineers India Limited IPO?
The total no. of shares to be sold through this IPO is around 33,693,660.00 shares. Of this, around 712,000 shares are reserved for the company employees.

What is the trading symbol & exchange for the Engineers India Limited IPO
No info about that

What are the IPO dates for Engineers India Limited IPO
The IPO for Engineers India Limited will open on dates 27 July to 30th July 2010

Any ratings given to Engineers India Limited IPO?
No information about that.

What are the analysts recommendations for Engineers India Limited IPO?
The face value of the EIL shares is Rs. 5 per share, as compared to the standard Rs. 10.


Read the Analyst & Market Experts Recommendations on EIL Engineers India Limited FPO IPO: EIL Engineers India Limited FPO IPO: Analyst Recommendations

Engineers India is an engineering consultancy company providing design, engineering, procurement, construction and integrated project management services, principally focused on the oil and gas and petrochemicals industries in India and internationally.

ICICI Securities, HSBC, IDFC Cap and SBI Cap are the Book running lead managers for this IPO. Link INTIME is the registrar to the Engineers India Limited IPO

What are the business results for Engineers India Limited?
No info about that

LIC Jeevan Akshay-VI Annuity (Pension) Policy: Review Analysis & Details-I

LIC offers a big mix of Investments as well as Insurance Plans - Pension Plans and Annuity Plans are a part of this package. In this article, we will cover details, review and Analysis of LIC Jeevan Akshay-VI Annuity (Pension) Policy.

Review, Analysis & Details of LIC Jeevan Akshay-VI Annuity (Pension) Policy

The policy offered by LIC or Life Insurance Corporation of India offers a good option to investors.
Which class of individuals is this LIC Jeevan Akshay-VI Annuity (Pension) Policy best suited for?
Let's take an example - Say there is an individual who has worked throughout his life, but because of the obligations he was unable to save money for his pension or post retirmement. Now, at retirment, suppose he gets a good amount of money, say from Provident Fund and/or from gratuity or from some other source. So he is now 58 years old, will stay alive for some more years, has some lump-sum money with him.
What he is worried about is how long will this money last? Will it be sufficient to cover his expenses all through his remaining life? How and where can he invest this money to get good returns which are sufficient to have him a regular income till he stays alive. How about the option of leaving some more for his loved ones even after his death?

This is the scenario or the class of individuals which the LIC Jeevan Akshay-VI Annuity (Pension) Policy is most suited for.
The minimum age for investing in this policy is 40 years while maximum is 79 years.

How does the LIC Jeevan Akshay-VI Annuity (Pension) Policy work?
It's simple and straightforward to explain the working concepts, but for the actual numbers, please contact the LIC branch and advisors.
The LIC Jeevan Akshay-VI Annuity (Pension) Policy works as follows:

Basically this is a Annuity Policy - i.e. the buyer of the policy gets the returns till annuity -i.e. his remaining lifetime.
You give LIC a lumpsum amount of money as the price of buying this policy at the beginning. Then you get regular income, in the form of pension, from LIC, for your remaining life (or a specified period), based upon the option you select.

What are the pension options available in LIC Jeevan Akshay-VI Annuity (Pension) Policy?
There are 5 different options available in LIC Jeevan Akshay-VI Annuity (Pension) Policy. They are described as below:

1) Annuity payable for life:
The policy-buyer or the annuitant is paid a fixed annuity at regular intervals throughout his life. Pension stops at the death of the annuitant i.e. the nominees cannot get any further benefit after the death of the policy-buyer.
Who is this option sutied for? This option suits those who do not have any dependents post-death.
One more benefit if that option gives the maximum amount of pension for an individual as compared to any other options available.

2) Annuity payable for life with guaranteed period of 5, 10, 15 or 20 years:
Annuity is paid for a specified no. of years and thereafter, as long as the annuitant is alive. The shorter the guarantee period, the better amount of pension one gets in the guarantee period. Annuity stops on either the death of the annuitant or completion of guaranteed period, whichever is later. Continue to read other options and details here..

LIC Jeevan Akshay-VI Annuity (Pension) Policy: Review Analysis & Details-II

This is part II of article LIC Jeevan Akshay-VI Annuity (Pension) Policy: Review Analysis & Details. Please read the Part I: LIC Jeevan Akshay-VI Annuity (Pension) Policy: Review Analysis & Details before reading this part.

3) Life annuity with a return of purchase price:
Pension or annuity continues till the death of the annuitant or policy buyer. After his/her death, the buying price of the annuity policy - i.e. the premium paid by the buyer of LIC Jeevan Akshay-VI Annuity (Pension) Policy - is given to the nominee.
This option suits those investors who want dual benefits - income during their lifetime, as well as money will be paid to dependent nominees after the death. However, one must note that the income might be a bit less, as the price is getting paid back to the nominee on the death of the policy-buyer, which gets discounted in the income or pension payments.
It is good option in case the policy-buyer dies early.

4) Life annuity increasing at a fixed rate: Worried about inflation and increasing cost of living as the time passes by?? Then go for option in LIC Jeevan Akshay-VI Annuity (Pension) Policy. What this option provides is an regular annual increase in pension amount payable which increases at the rate of 3% per year. Now with inflation hovering in double digits for such a long period of time, this may not sound sufficient enough, but still a good option to get some increasing income.

5) Joint life and last survivor annuity:
In this option, the policy buyer receives lifetime pension. He can also nominate a survivor (Spouse), who will continue to get the pension even after the policy buyer dies. The buyer has to choose the proportion of money to be paid to the spouse and that determines the amount of pension to be paid.

What are the limitations of LIC Jeevan Akshay-VI Annuity (Pension) Policy?
First, this is an annuity policy, so dont expect any returns as this policy does not have any surrender value.

You cannot take a loan against this policy

Premium is to be paid in lumpsum

Pension amount received is TAXABLE

Annuity rates are not that attractive - they are not linked to inflation. So it is possible that you may find the income from this pension comparatively less for meeting the living expenses, the longer you live.

Any illustration of how much LIC Jeevan Akshay-VI Annuity (Pension) Policy pay?

For Minimum purchase price : Rs.50,000/= or such amount which may secure a minimum annuity as under:
Mode Minimum Annuity
Monthly Rs. 500 per month
Quarterly Rs. 1000 per quarter
Half-yearly Rs. 2000 per half year
Yearly Rs. 3000 per year
LIC Jeevan Akshay-VI Annuity (Pension) Policy

iShares ETF launches International Sector ETFs: Developed & Emerging Markets ETF

The ETF or Exchagne Traded Funds business is growing leapsnand bounds and why not - they are known to be the best available products in the markets with Passive investment strategy and good tracking returns record. The pioneer as well as the leader in the field of ETF's is iShares, and it has recently announced the launch of nine iShares MSCI ACWI ex US sector funds which will have international exposure to emerging as well as developed markets and will be tracking the corresponding MSCI indices. This will give investors a good chance to invest in the overseas emerging markets as well as the developed markets, plus the investors can choose the iShare ETF of their choice which belongs to their preferred sector of investment.
What is so unique about the iShares ETF International Sector ETFs?
The iShare ETF's which are recently launched are said to be the first ETF's of its kind - i.e. they offer international exposure and investment opportunities in overseas markets for both emerging and developed markets, and also the benefit of choosing the sector specific funds, whcih may be of interest to the investors.

Which exchange will the iShares ETF International Sector ETFs be available for trading?
The iShares ETF launches International Sector ETFs will trade on NYSE Arca Exchange

What is the expense ratio of iShares ETF launches International Sector ETFs?
It is reported that expense ratio of iShares ETF launches International Sector ETFs will be o.48%, which is quiet competitive and economical for investors

What all iShares ETF International Sector ETFs are being launched?
A total of nine iShares ETF International Sector ETFs are being launched by iShares. They are as follows:

- iShares MSCI ACWI ex US Consumer Discretionary Sector Index Fund (AXDI)
- iShares MSCI ACWI ex US Consumer Staples Sector Index Fund (AXSL)
- iShares MSCI ACWI ex US Energy Sector Index Fund (AXEN)
- iShares MSCI ACWI ex US Health Care Sector Index Fund (AXHE)
- iShares MSCI ACWI ex US Industrials Sector Index Fund (AXID)
- iShares MSCI ACWI ex US Information Technology Sector Index Fund (AXIT)
- iShares MSCI ACWI ex US Materials Sector Index Fund (AXMT)
- iShares MSCI ACWI ex US Telecommunication Services Sector Index Fund (AXTE)
- iShares MSCI ACWI ex US Utilities Sector Index Fund (AXUT)

What are the benchmark indices which the iShares ETF International Sector ETFs will track?
The above ETF's will track the respective MSCI All Country World ex USA sector index. For example, the "iShares MSCI ACWI ex US Information Technology Sector Index Fund (AXIT)" will track the MSCI ACWI ex US Information Technology Sector Index from MSCI.

Will these iShares ETF International Sector ETFs be a good investment opportunity for investors?
It depends upon the risk appetite, period of investment and investors confidence. ETF's are no doubt the best available investment assets. These newly launched ETF's not only offer the international exposure (Non-US) to the investors, but the diversified offering of 9 different funds each focussing on a specific sector also offers a good opportunity to the investors for making investments into their selected sector. The expense ratio is also quite less which will be good for investors.
Ultimately, it depends upon how well the overseas markets and their specific sectors perform over the period of investment and based upon that the returns will be generated

BMC employees Sixth Pay Commission Salary granted: Pension, Pay Arrears & Salary Hike Details

The much awaited decision on salary hike for the BMC or the Brihanmumbai Municipal Corporation's (BMC) has finally come through, although in terms of promises. Recently, the government is reported to have made promise to the BMC staff that the recommendations of the Sixth Pay Commission will be implemented by Brihanmumbai Municipal Corporation's (BMC), and the BMC staff will get the increased pay hikes, as well as the payment arrears and that will also ensure an increased pension for BMC employees. It will directly benefit the BMC workers in terms of salary, pay and pension.

Mumbai BMC skilled workers to get Sixth Pay Commission Benefits

How much money will it cost the Brihanmumbai Municipal Corporation's (BMC) for implementing the Sixth Pay Commission implementations?
It is estimated that around 1500 Crores of Rs. will be required to implement the 6th Pay Commission for Brihanmumbai Municipal Corporation's (BMC) staff. The good news is that it will benefit the BMC staff employees, but the problem is that it will leave very little amount for the Civic Body to provide facilitites in the metro city.
General Sixth Pay Commission Salary Hike & Arrears Calculator (Indicative)

Salary Calculator for Pension calculations for Sixth Pay Commission Salary Hike (Indicative)

What are the sources of income for Brihanmumbai Municipal Corporation's (BMC)?
Brihanmumbai Municipal Corporation's (BMC) earns its money from multiple sources - from Property taxes, water charges, sewage charges, Octroi collection and so on. The funds collected from these sources and mediums are the sources for money for BMC.

Now that the implementation of Sixth Pay Commission will require extra 1500 Crores to the BMC, it will mean that no new projects can be taken up by the BMC for the next 2-4 year period. It will again depend upon how and when is the BMC able to pay for the arrears of the salary hike to its staff, depending upon the fund availability.

Which projects are going to take a hit if the Sixth Pay Commission salary hike implemetation is made?
There are many projects which will be halted - some of them include construction work for Crawford Market underground parking lots, Mumbai Eye Project, Many projects for road concretisation and reconstruction of hospitals. In fact, many of these have already been put on hold, as per the media reports.

How has this decision of Sixth Pay Commission salary hike implemetation come through for BMC?
This decision has seen the light of the day because of threat of indefinite strike by the BMC employees. Although projects and construction work will be halted or put on hold for fund requriements, it is the time to rejoice for the BMC employees.
As of now, no dates are confirmed about the exact implementation dates, and the dates of payment of arrears for BMC employees, but atleast the decision has come through

Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds

In this article, we will provide the Necessary Information and details required for investing in Tax Free Infrastructure Bonds and how to save taxes on Tax Free Infrastructure Bonds Investments. Please note that investment is a personal choice and one must be aware of his requirements and risk appetite before making investments.

Tax Free Infrastructure Bonds

Keeping the promises which the finance minister made in his budget speech, the govt has come out with the necessary details and guidelines for investing in Tax Free Infrastructure Bonds for the purpose of saving taxes.
It is an attempt to boost the investments in the infrastructure sector, which is the need of the hour and by providing tax benefit on such Tax Free Infrastructure Bonds, it is being made more attractive for all classes of investors.

IDFC Infrastructure Tax Saving Bonds Issue Now Open: See IDFC Infrastructure Bonds: Review, Analysis & Effective Returns Calculations

What is the available limit for tax benefit in Tax Free Infrastructure Bonds?:
The amount of money which can be invested in these Tax Free Infrastructure Bonds is not having any limit, but the tax benefit will be available only on a maximum of 20,000 Rs. i.e. if you fall in 30% tax bracket, then by inveting 20,000 in these Tax Free Infrastructure Bonds, you can save a 6,000 Rs. in taxes. You can invest more as per your wish, but the maximum tax to be saved will remain 6,000 only.
So what is the benefit of investing in Tax Free Infrastructure Bonds if they offer the same tax benefit?
There is a good benefit. The investment in these Tax Free Infrastructure Bonds are considered to be a part of section 80(C), but the 20,000 amount will be treated as a seperate amount over and above the 80(C) limit of 1 Lakh. i.e. You can continue to make investments of Rs. 1L under section 80(C) in your regular Provident Fund, LIC policies and so on but if you invest additional 20K in Tax Free Infrastructure Bonds , then your total eligible limit of tax exemption increases to 1.2 Lakhs.
However, please note that this extra 20K is reserved exclusively for Tax Free Infrastructure Bonds and not for any other investments. Any other investments falling under section 80(C) will still be capped at 1L.

What is the tenure & lock-in period of these Tax Free Infrastructure Bonds ?
Contrary to what the investors used to see during the 2000-2001 period, where Tax Free Infrastructure Bonds used to have a short term maturity of just 3 years, things are quite different this time.
The Tax Free Infrastructure Bonds will now have a long tenure of 10 years. However, the lock-in period will be 5 years which means that after completion of 5 years, the investors can opt out or redeem its invested amount
It is also not know how will the interest payment be allowed - whether yearly or only on maturity. My guess is that interest or coupon payment will depend upon the issuer of the Tax Free Infrastructure Bonds .

Who can offer these Tax Free Infrastructure Bonds?
As of now, the government is restricting that to only a few Infrastructure companies or Infrastructure Finance related companies. That means only institutions like IDFC, LIC, IFCI can offer these bonds. So the credit worthiness of these organizations will play a major role in deciding the Tax Free Infrastructure Bonds ratings and the returns they will offer. The tax benefit will be irrespective of the coupon payment offered.
Good thing is that the government will offer guarantee for these Tax Free Infrastructure Bonds . You might also see some private players being allowed to issue and float such Tax Free Infrastructure Bonds , but there is no clear news on that now. It is also not known whether the bonds issued by Private players will be having government guarantee or not.

Final Thought about Tax Free Infrastructure Bonds - should someone invest in it?
Now that's a million dollar question.

All Tax Saving Infrastructure Issues open Now:
IIFCL Infrastructure Bonds for Tax Saving - Closing 4th March 2011

L&T Infrastructure Bonds for Tax Saving - Closing 7th March 2011

IDFC Infrastructure Tax Saving Bonds Issue Now Open: See IDFC Infrastructure Bonds: Review, Analysis & Effective Returns Calculations

PFC Infrastructure Bonds: Review - Closing on 22nd March 2011

But my personal opionion at this point in time, when no info is available about the interest rate of return on these bonds, is that based upon your financial situation, one must take a call.
If you dont have any liabilities, like home loans, car loans, etc. and have ample amount of money which you dont want to use, then you can make investments in these Tax Free Infrastructure Bonds solely for tax saving purpose. But keep in mind that inflation usually eats away all your real returns from these kinds of bond investments. Tax saving is there, but only for first year.

However, if you have liabilities like home loan, car loan, or family dependencies requiring money, there is no point in locking your money for a long period of 5 long years. Even if these bonds are offering 10% rate of return, infaltion will eat into your returns by the time you withdraw your money. Better to use this money to repay or pre-pay your loans where your might be paying a lot of interest

Medical Insurance companies scrap Cashless Hospitalisation: A Very Good Move

The recent news has caused a lot of problems for the patients - The news is that several PSU or Public Sector Insurance Companies have discontinued the Cashless Hospitalisation schemes for many of the so called "elite" hospitals. Although it is a nightmare for the patients who had bought these Cashless Hospitalisation policies for medical expenses, but given the way it was hurting the profits of Insurance companies and making it a huge profitable business for the hospitals & doctors, I am of the opinion that it is a very good move.
Everyone in this country is aware how the hospitals and medical system works. It appears that the hospitals are becoming cash generating machines especially for the patients who are having insurance. Now, this is not a one sided view, but let me express a few points here:

1) Over-Charging by the Hospitals:
There have been several cases reported about the hospitals over-charging the patients just because the patients are covered under cashless insurance scheme. This is a typical scenario - go to any good private hospital, after asking your name and ailment, the next question to be asked by the doctor or the hospital staff will be "Are your having Medical Insurance". The moment it is answered yes, the next question might be "How much is the limit". Even if the second question is not asked, the fact is that hospital charges are increased significantly just because the patient is covered under insurance.
2) No calrity on Hospital Rates:
It is another known fact - the hospitals do NOT have any standard rate list for hospitalization. That leaves them full freedom to quote and charge anything and everything. No one can verify the standard rates. It has been observed that for the same diseases or surgery, the hospitals are charging different rates to different patients - especially the ones who are having insurance are charged a lot.

3) Other Charges grow in proportion:
If you happen to be covered under the Cashless Insurance scheme, the other charges will also grow proportionately.
If you are admitted to a hospital for some hospitalisation need, the other charges like doctor's visit in the morning and evening will be charged at a higher rate if you are covered under the Cashless Insurance scheme, as compared to other normal patients who are not covered under the Cashless Insurance scheme

4) Patients end up paying over and above the insurnace amount:
Take this example - a lady goes for maternity hospitalization. The same delivery will cost her 25-30K if the amount is paid from her pocket. However, if it is known that she is covered under insurance, the bill might as well excceed 50-60K.
Where do these extra charges come from? They come from the "Extra" Treatment given to these insured patients. There will be 2-3 doctors visitng her throughout the day and each will charge a good amount for their visit. There will be extra treatments given. The room charges will be higher and so on.
What may not be known by the patient is that even though she has a total cover of 4 Lakh, but the amount for maternity claim is restricted to 50K. Hence, if the hospital charges a total of 60K, she will be required to pay that extra 10K from her own pocket.
Who looses in all this - both the insurance company as well as the patient. Who wins - the hospital and the doctors.

But in case this same lady does not reveal that she is having insurance and goes for a normal hospitalization, the charges might be significantly less. It may be covered for as less 25-30K. In this case, she first spends the money from her own pocket and then claims for a reimbursement from insurance. Both of them win.

Although I understand the plight of the patients who are getting affected because of this sudden move by the insurance companies who made this decision all of a sudden without giving any advanced notice to the insured, it will streamline things in the long run. A better approach by the insurance companies to ban this cashless hospitalization could have been giving a 1 month advance notice to the insured, as now the patients who are affected by this have to arrange for hospital charges on their own.

Motilal Oswal MOSt Shares M50 ETF: Review Analysis & Details

Another mutual fund house has decided to come out with its NFO or New Fund Offer. The Motilal Oswal Mutual Fund House has launched its NFO or New Fund Offer called the Motilal Oswal MOSt Shares M50 ETF
In this article, we will analyse how good is this Motilal Oswal MOSt Shares M50 ETF NFO, whether this Motilal Oswal MOSt Shares M50 ETF offers anything new or unique for the investors and whether the investors should invest in Motilal Oswal MOSt Shares M50 ETF .

Motilal Oswal MOSt Shares M50 ETF NFO: Review Analysis & Details

Let's begin with some basic details about Motilal Oswal MOSt Shares M50 ETF.

What are the NFO dates for Motilal Oswal MOSt Shares M50 ETF ?
The NFO period for Motilal Oswal MOSt Shares M50 ETF will open on 30th June and will close on 19th July 2010.

What is so unique about this Motilal Oswal MOSt Shares M50 ETF?
The Motilal Oswal MOSt Shares M50 ETF claims to be the first ever ETF fund in the Indian Markets, which is "Fundamentally Weighted". Although this ETF or Exchange Traded Fund will track and attempt to mimic the S&P nifty 50 Index, it claims to put different weightage on stocks selection in the Nifty 50 index, based upon the fundamental data details. Say for e.g., earnings, valuations, return on equity, etc. might be a few parameters based upon which the Motilal Oswal MOSt Shares M50 ETF will have weightage in the stocks.
What this new ETF claims is that the Nifty 50 index is based on the free float market cap method. (Here are the details about Free Float Market Capitalization Weighted Methodology). MOSt Shares M50 ETF claims that instead of going by the pure free float market capitalization, they will offer weightage to certain stocks in the Nifty50 category, and that will result in better returns that other Niffty based ETF's which passively follow the index.
Now what exact method will MOSt Shares M50 ETF use and what will be the basis of which fundamentals parameters will be used to assign extra weightage to the stocks, is not known. It is reported that there is some proprietary pre-defined method used by MOSt Shares M50 ETF, and that will be used by this ETF.
So the question about its efficiency and effectiveness still remains.
However, this appears to be something of a new kind of ETF which is said to be assigning weightage to fundamentals. So this will be somewhat different that the passively managed ETF's (ETF- Exchange traded fund -An example). Investors who believe that the timing and trading strategy of the MOSt Shares M50 ETF Fund managers will be able to beat the passively managed ETF's returns, can invest in this Exchange Traded Fund.
Usually, we never recommend anyone going for actively managed funds, but this is a new product altogether. It all ends up at the fund manager's skills and the so called proprietary system which will be used to assign weightage to the stock selection process.

So overall, this Motilal Oswal MOSt Shares M50 ETF seems to be a focussed fund on large cap sector. Although the news claims that this fund stock selection process will use the "proprietary pre-defined method", no one can guarantee anything about the returns.
The money will be invested in the following proportions:
95% to 100% - Large Cap Stocks (Top 50) of S&P Nifty 50
Rest 0-5% in domestic debt and money market instruments

During NFO, the units of this Fund will cost Rs 10 per unit.

Are there any alternatives to Motilal Oswal MOSt Shares M50 ETF?
This appears to be a new products in ETF segment since it claims to be giving weightage based on fundamental factors.
In case investors dont want to go for that active management based on weightage on fundamental factors, they can go for other passive Index tracking ETF

The Motilal Oswal MOSt Shares M50 ETF will be benchmarked to S&P Nifty 50 Index

Minimum Investment:
Purchases : Rs. 10,000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No Info

No Tax Benefit is available in the Motilal Oswal MOSt Shares M50 ETF

The entry load for Motilal Oswal MOSt Shares M50 ETF is as follows:
Entry Load for Motilal Oswal MOSt Shares M50 ETF :
Zero Entry Load

Exit Load for Motilal Oswal MOSt Shares M50 ETF:
Zero, but brokerage may apply when traded.

Final Thoughts about the Motilal Oswal MOSt Shares M50 ETF?
This fund can be a good investment for investors willing to bet on the skills of the Motilal Oswal Fund Managers and who believe that large cap stock investment story based upon the stock selection skills of fund managers and their proprietary method of fundamentals.

Canara Robeco Large Cap+Fund NFO: Review Analysis & Details

Another mutual fund house has decided to come out with its NFO or New Fund Offer. The Canara Robeco Mutual Fund House has launched its NFO or New Fund Offer called the Canara Robeco Large Cap+Fund NFO
In this article, we will analyse how good is this Canara Robeco Large Cap+Fund NFO, whether this Canara Robeco Large Cap+Fund offers anything new or unique for the investors and whether the investors should invest in Canara Robeco Large Cap+Fund .

Canara Robeco Large Cap+Fund NFO: Review Analysis & Details

Let's begin with some basic details about Canara Robeco Large Cap+Fund.

What are the NFO dates for Canara Robeco Large Cap+Fund ?
The NFO period for Canara Robeco Large Cap+Fund will open on 30th June and will close on 27th July 2010.

What is so unique about this Canara Robeco Large Cap+Fund?
As the name suggests, this fund from Canara Robeco is purely a large cap fund. What this fund will do is collect money from investors and invest in the TOP 150 Companies, rated as per their market capitalization value. Hence, this fund can be a good investment for individuals who believe in the large cap story and trust that large cap stocks give better returns. Here is an article with example about Relative performace of mid-cap stocks v/s large-cap stocks. However, one should note that it's only a matter of time when a particular sector outperforms the other. There is no guarantee that if Large Cap have outperformed Small caps and Midcaps in some period of time in the past, then it will continue to do so in the future as well. It is possible that after some time, the large caps returns may be less than small caps or mid caps.

By inveting in this fund, an investor is also betting on the stock picking and timing skills of the fund managers. The news reports that this fund will invest into any company shares which fall into top 150 list as per marketcap. Now that is a long list to choose from. And Active fund management i.e. where the fund manager keeps switiching from one stock to the other, may not be able to keep pace with the underlying returns.

So overall, this Canara Robeco Large Cap+Fund seems to be a focussed fund on large cap sector. Although the news claims that this fund stock selection process will use the "Robeco Emerging Markets Quantitative model", no one can guarantee anything about the returns.
The money will be invested in the following proportions:
65% to 100% - Large Cap Stocks (Top 150) and their related derivative instruments
Rest 35% in domestic debt and money market instruments

During NFO, the units of this Fund will cost Rs 10 per unit.

Are there any alternatives to Canara Robeco Large Cap+Fund?
Yes, many alternatives available. Basically you can invest in any large cap funds from other fund houses. Go a step further and invest in Index Funds (Index Funds Explained with Example). Even better would be to simply go for a large cap focussed ETF or Exchange Traded Fund. (ETF- Exchange traded fund -An example)
Mr. Anand N. Shah will be the fund manager.

The Canara Robeco Large Cap+Fund will be benchmarked to BSE 100 Index

Minimum Investment:
Purchases : Rs. 5000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No Info

No Tax Benefit is available in the Canara Robeco Large Cap+Fund

Investment Options for Canara Robeco Large Cap+Fund :
- Growth
- Dividend (Payout and Reinvestment)

The entry load for Canara Robeco Large Cap+Fund is as follows:
Entry Load for Canara Robeco Large Cap+Fund :
Zero Entry Load

Exit Load for Canara Robeco Large Cap+Fund:
1% if the amount sought to be redeemed or switched out is invested up to 1 year from date of allocation.

Final Thoughts about the Canara Robeco Large Cap+Fund?
This fund can be a good investment for investors willing to bet on the skills of the Canara Robeco Fund Managers and who believe that large cap stock investment story

Taurus MIP Advantage Fund NFO: Review Analysis & Details

High on the heels of the recently launched Axis Triple Advantage Fund NFO: Review Analysis & Details, another mutual fund house has decided to come out with its NFO or New Fund Offer. The Taurus Mutual Fund House has launched its NFO or New Fund Offer called the Taurus MIP Advantage Fund NFO
In this article, we will analyse how good is this Taurus MIP Advantage Fund NFO, whether this Taurus MIP Advantage Fund offers anything new or unique for the investors and whether the investors should invest in Taurus MIP Advantage Fund .

Taurus MIP Advantage Fund NFO: Review Analysis & Details

Let's begin with some basic details about Taurus MIP Advantage Fund.

What are the NFO dates for Taurus MIP Advantage Fund ?
The NFO period for Taurus MIP Advantage Fund will open on 29th June and will close on 23rd July 2010.

What is so unique about this Taurus MIP Advantage Fund?
It seems that now the fund houses are trying to go hybrid i.e. they are coming up and offering new products which are a mix of various asset categories rather than a particular sector or even asset focussed fund. This Taurus MIP Advantage Fund is an example of the same where investors can get benefit of diversification in three different asset types - Equity, Debt and Gold.
So when you have such a huge diversified base of investments by the fund managers, what becomes important to note is where your money is going and in what proportion. As per the NFO details available, the invested money will be invested into the following in the mentioned proportion:

- Shares/Equity and related instruments - 0-25%
- Debt Instruments (Fixed Income Securities) - 65-95%
- Gold ETF's or Gold Exchange Traded Funds - 5-25%

Now that gives a clear indication that the focus of this fund will primarily be on the debt side. The rest of the money will be played on in the equity and gold etf side, which will offer a good mix. However, the timing of switching money from one investment class to the other will determine the returns and that is where the mutual fund managers skills come into picture. By investing money in this fund, you are giving that responsibility to fund managers and their skills.
So overall, this Taurus MIP Advantage Fund seems to be offering a good mix of 3 variety of products. The proportion of allocation also seems to be good enough. However, I think the proportion of allocation might change at the sole discretion of the mutual fund managers.

During NFO, the units of this Fund will cost Rs 10 per unit.
Ideally speaking, this fund should be looked upon by the investors who want a mix of equity, debt and gold in their investment portfolio, but want to keep the headache off by doing it themselves and are ready to trust a fund manager to do that. This Taurus MIP Advantage Fund will be good option for such investors. However, one thing to note is that just because there is a lot of diversification, it does not mean that food returns are guaranteed.
As stated in one of our earlier articles, the risk part still remains irrespective of diversification. What if you invest 10,000 in this fund. The fund managers buy equity worth 3500, debt worth 3500 and gold worth 3000. After 5 years, the returns from equity are down by 30%, returns from debt is up by 10%, and returns from gold are up by 15%. Equity portion will then stand at 2500, Debt at 3850 and Gold at 3450. So your net value will be 9,800 - i.e. less than your invested 10K.
Now the above is only an example to illustrate that just by investing in a diversified fund does not guarantee returns. Also, the more different instruments one invests in, the more brokerage charges and commission is to be paid. That adds to the cost and reduces the profit and returns. Investors should keep these things in mind while making investments in any funds or any financial products.

Are there any alternatives to Taurus MIP Advantage Fund?
Yes, a similar fund is launched by Axis Mutual Fund House - Axis Triple Advantage Fund NFO: Review Analysis & Details
Another option to consider is buying these different financial assets on your own. But then you will have to take the buy sell decisions and timing them will be your responsibility.
Mr. Rahul Pal and Mr. Sadanand Shetty will be the fund managers for debt and Equity+gold respectively.

The Taurus MIP Advantage Fund will be benchmarked to a composite 75% CRISIL MIP Blended Fund Index and Composite Bond Fund Index and 25% Price of Gold

Minimum Investment:
Purchases : Rs. 5000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No Info

No Tax Benefit is available in the Taurus MIP Advantage Fund

Investment Options for Taurus MIP Advantage Fund :
- Growth
- Dividend (Payout and Reinvestment)

The entry load for Taurus MIP Advantage Fund is as follows:
Entry Load for Taurus MIP Advantage Fund :
Zero Entry Load

Exit Load for Taurus MIP Advantage Fund:
1% if the amount sought to be redeemed or switched out is invested up to 1 year from date of allocation.

Final Thoughts about the Taurus MIP Advantage Fund?
This fund can be a good investment for investors willing to bet on the skills of the Taurus Fund Managers and who believe that diversification can offer good returns as well as risk control.