IIT IIM NIT Professors get Sixth Pay Commission Salary: Pension, Pay Arrears & Salary Hike Details

Details about IIT IIM Professors Sixth Pay Commission Salary Pay Hike for faculty staff of IIT and IIM
We've reported news about the IIT IIM Sixth Pay Commission in our previous news articles IIT, IIM, NIT & School Staff get Sixth Pay Commission Salary Hike Aug 2009. And now finally the good news has arrived for the Professors and Senior Faculty staff of IIT's and IIM's in India.

IIT IIM Professors get Sixth Pay Commission Salary Salary Pay Hike

The government has finally given in to the long standing demands of the IIT faculty members and has sanctioned Higher Administrative Grade (HAG) Pay of Rs 67000-Rs. 79000 for the Seniopr faculty members.

What is the latest update about the IIT IIM Professors salary hike
As per the Human Resource Ministry - "It has now been decided in consultation with the Department of Expenditure to extend the HAG scale of Rs 67,000-Rs 79,000 without any Grade Pay in place of AGP of Rs 12,000 per month. The AGP of Rs 12,000 per month does not exist anymore" the HRD notification states.

Those professors who do not qualify for the HAG scale will get between Rs 37,400 and Rs 67,000 a month, as the pay panel had recommended. They will be eligible for the additional grade pay of Rs 10,500 to Rs 12,000.

How many professors at IIT and IIM will get HAG pay?
Around 40% of the professors will be eligible for HAG pay in IIT's and IIM.
Around 20% of the professors will be eligible for HAG pay in NIT's (National Institutes of Technology), the Indian School of Mines in Dhanbad and the School of Planning and Architecture.

General Sixth Pay Commission Salary Hike & Arrears Calculator (Indicative)

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

By which date is this decision effective?
It is reported that the salary hike is effective from 18 August, 2009.

What is the reaction to this development by the professors?
The faculty staff is really happy about the high salaries which they will be getting. However, they are unhappy about these 40% and 20% caps which have been put on.

Reliance Index Fund-Nifty Plan Sensex Plan Fund NFO: Review Analysis & Details

This article contains info about Reliance Index Fund - Nifty Plan Sensex Plan Fund NFO, Review, Analysis, Details & Opinion. NFO or New Fund Offer from the largest mutual fund house of India has come through. High on the heels of the Reliance Small Cap Fund (See Review), the Reliance MF Mutual Fund House has launched its NFO or New Fund Offer for two index funds called the Reliance Index Fund - Sensex Plan Fund and Reliance Index Fund - Sensex Plan Fund. With the launch of these 2 new index funds, Reliance Mutual Fund has added 2 index funds to its portfolio.
In this article, we will analyse how good is this Reliance Index Fund - Nifty Plan Sensex Plan Fund NFO, whether this Reliance Index Fund - Nifty Plan Sensex Plan Fund offers anything new or unique for the investors and whether the investors should invest in Reliance Index Fund - Nifty Plan Sensex Plan Fund .

Reliance Index Fund - Nifty Plan Sensex Plan Fund NFO: Review Analysis & Details

Let's begin with some basic details about Reliance Index Fund - Nifty Plan Sensex Plan Fund.

What are the NFO dates for Reliance Index Fund - Nifty Plan Sensex Plan Fund ?
The NFO period for Reliance Index Fund - Nifty Plan Sensex Plan Fund are 9th September 2010 to 23rd Septmeber 2010.

What is so unique about this Reliance Index Fund - Nifty Plan Sensex Plan Fund?
These are 2 different funds lauched by Reliance, one is the Reliance Index Fund - Nifty Plan and the other is Reliance Index Fund - Sensex Plan Fund As the names suggests, these 2 index funds will be trying to replicate the performance of the respective indes which they are going to track. However, since they are index funds, there will be tracking error and investors should be aware of this. The tracking error is the difference in the returns generated by the underlying index and the returns generated by the index fund.
Why and how does the tracking error come in?
The underlying index like Nifty or Sensex does not have any brokerage charges or any dependent trading activities. However the index funds do have them. As the fund managers try to replicate the performance of the underlying index, they buy and sell securities and try to maintain their fund in similar proportion to the index, they end up paying brokerage charges which affects the returns. The frequency of rebalancing the fund constituents also takes a toll. For more informtion on Index Funds, see Index Funds Explained with Example)

So overall, depending upon the frequency of rebalancing and trading activities of the fund manager, the returns from Reliance Index Fund - Nifty Plan and Reliance Index Fund - Sensex Plan Fund will be generated for the investors. investors can choose their preferred index fund, either based on Nifty or based on Sensex. Nifty is composed of top 50 stocks based on market cap and Sensex is top 30 stocks. Continue to Part II -Risks in Reliance Index Fund - Nifty Plan Sensex Plan Fund and other competitive products

Reliance Index Fund-Nifty Plan Sensex Plan Fund NFO: Details & Competitor Products

This article contains info about Reliance Index Fund - Nifty Plan Sensex Plan Fund NFO, Review, Analysis, Details & Opinion. This is part II of the article Part I. Please read part I before continuting with this part.

Being a Index based Mutual Fund, investors will have to rely upon the end of the day NAV calculations, and they will not have any opportunity to benefit from the intra-day price movements to trade on intraday basis, like that available in ETF's.
Other than that, there are charges for exit load which investors should be aware of.

The details are as below:

Overall, this Reliance Index Fund - Nifty Plan Sensex Plan Fund seems to be a large cap specific index fund.
Mr. Krishan Daga will be the fund manager.

The money will be invested in the following proportions:
95% to 100% - Stocks & Derivatives in the respective index specific stocks and derivatives
Rest 0-5% in domestic debt and money market instruments or cash

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

Are there any alternatives to Reliance Index Fund - Nifty Plan Sensex Plan Fund?
Yes, as mentioned above, Instead of an Index Fund, you can look for a same index based ETF or Exchange Traded Fund which is benchmarked to Nifty or sensex. You will get the benefit of both the prices as well as intraday price fluctuations enabling you to trade and benefit from intra-day price movements. You can even short an ETF but cannot short an index fund. See Comparison of Index Funds & ETF with Example

The Reliance Index Fund - Nifty Plan Sensex Plan Fund will be benchmarked to Nifty and Sensex respectively

Minimum Investment:
Purchases : Rs. 5,000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No info

No Tax Benefit is available in the Reliance Index Fund - Nifty Plan Sensex Plan Fund

Investment Options for Reliance Index Fund - Nifty Plan Sensex Plan Fund :
- Growth Plan:
- Dividend (Payout and Reinvestment)

The entry load for Reliance Index Fund - Nifty Plan Sensex Plan Fund is as follows:
Entry Load for Reliance Index Fund - Nifty Plan Sensex Plan Fund :
Zero Entry Load

Exit Load for Reliance Index Fund - Nifty Plan Sensex Plan Fund:
1% if the amount sought to be redeemed within 1 year from date of allocation.
Nil afterwards

Final Thoughts about the Reliance Index Fund - Nifty Plan Sensex Plan Fund?
This fund can be a good investment for investors willing to bet on the large caps and believe that the large cap index stocks will give good returns. However, nothing is guaranteed, as it will depend upon the trading activities of the fund manager. My verdict will be to go for the ETF's for the respective benchmark indices

UP Class 4 employees get Sixth Pay Commission Salary: Pension, Pay Arrears & Salary Hike Details: Uttar Pradesh

Details about Uttar Pradesh UP Sixth Pay Commission Salary Pay Hike for Class IV (4)Employees
We've reported news about the Uttar Pradesh UP Sixth Pay Commission in our previous news articles UP Sixth Pay Commission Sep 2009 and Uttar Pradesh UP Sixth Pay Commission March 2010. And now finally the good news has arrived for the Class 4 employees of UP State. It was recently decided and announced by the UP state government that the benefits of the Sixth Pay Commission will be given the the Class IV Employees of Uttar Pradesh State

Uttar Pradesh UP Sixth Pay Commission Salary Pay Hike

Is this salary hike decision exclusively for Class IV employees?
Yes, this decision by state cabinate is for Class 4 employees only.
It is estimated that around 3 Lakh employees of Class IV will benefit from this decision. So its their time to rejoice and join the party.

General Sixth Pay Commission Salary Hike & Arrears Calculator (Indicative)

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

What are the new pay bands for Class IV employees?
The new pay bands for Class IV employees are expected to be Rs 5,200-20,200 and grade pay of Rs 1,800.

How much extra burden will it cost to the UP state government for salary hike as per the Sixth Pay Commission ?
It is expected that the additional Rs 350 crore will have to be spent by the UP state ex-chequer for this salary hike.

How many Tamilnadu employees will benefit from this pay recommendations?
It is estimated that around 3 lakh employees will benefit from this recommendation.

Any other decision that came out along with this ??
Yes, the bad news is that there will be no more recruitment in the Class IV cader and it is decalred as a dying cader for the state. In case of future needs, the work will be outsourced as per the new government regulations and rules.
There will also be regularization of services of daily wage and employees who come under work chargeable category.
But overall, it appears to be a good news for the UP state government employees of Class 4

IDFC Small Cap Equity Fund NFO: Review Analysis & Details

This article contains info about IDFC Small Cap Equity Fund NFO, Review, Analysis, Details & Opinion. NFO or New Fund Offer from another fund house has been filed with SEBI. High on the heels of the Reliance Small Cap Fund (See Review), the IDBI MF Mutual Fund House has filed application for its NFO or New Fund Offer called the IDFC Small Cap Equity Fund. With the launch of this new fund, IDBI Mutual Fund has added another sector specific fund to its portfolio. Yesterday, IDBI had launched the mid cap specific Index Fund called IDBI Nifty Junior Index Fund (See Review) and now they have this IDFC Small Cap Equity Fund specific to Small cap sector
In this article, we will analyse how good is this IDFC Small Cap Equity Fund NFO, whether this IDFC Small Cap Equity Fund offers anything new or unique for the investors and whether the investors should invest in IDFC Small Cap Equity Fund .

IDFC Small Cap Equity Fund NFO: Review Analysis & Details

Let's begin with some basic details about IDFC Small Cap Equity Fund.

What are the NFO dates for IDFC Small Cap Equity Fund ?
The dates are not known yet as it is just filed with SEBI. The NFO period for IDFC Small Cap Equity Fund will be known later.

What is so unique about this IDFC Small Cap Equity Fund?
The IDFC Small Cap Equity Fund is a sector specific fund which will focus specifically on small cap stocks. This fund will be a good option for investors who are willing to get an exposure of small cap sector in their investment portfolio. The small cap seems to be the flavour of the season as Reliance Mutual FUnd recently came out with its Reliance Small Cap Fund.
However, being an actively managed equity fund, the investors must be aware about the risks as well. There is no guarantee that the small caps of today will be giving higher returns tomorrow. It all depends upon the stock selection of the mutual fund manager and how he plays around with the money of investors.
Then comes the timing as well as performance of the overall performance of the small cap sector. The returns of this fund will be specific to the stocks which the fund manager will select for investment.

Being a Mutual Fund, investors will have to rely upon the end of the day NAV calculations, and they will not have any opportunity to benefit from the intra-day price movements to trade on intraday basis, like that available in ETF's.
Other than that, there are charges for exit load which investors should be aware of.

The details are as below:

So overall, this IDFC Small Cap Equity Fund seems to be a focussed fund on small cap sector.
Mr. Kenneth Andrade will be the fund manager.

The money will be invested in the following proportions:
65% to 100% - Stocks & Derivatives in the small cap sector specific stocks and derivatives
Rest 0-35% in domestic debt and money market instruments or cash

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

Are there any alternatives to IDFC Small Cap Equity Fund?
Yes, as mentioned above, Reliance Mutual Fund already has the Reliance Small Cap Fund (See Review). You can look for a small cap based ETF or Exchange Traded Fund which is benchmarked to any mid cap index.

The IDFC Small Cap Equity Fund will be benchmarked to BSE Small Cap index

Minimum Investment:
Purchases : Rs. 5,000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is available? - No info

No Tax Benefit is available in the IDFC Small Cap Equity Fund

Investment Options for IDFC Small Cap Equity Fund :
- Growth Plan:
- Dividend (Payout and Reinvestment)

The entry load for IDFC Small Cap Equity Fund is as follows:
Entry Load for IDFC Small Cap Equity Fund :
Zero Entry Load

Exit Load for IDFC Small Cap Equity Fund:
1% if the amount sought to be redeemed within 1 year from date of allocation.
Nil afterwards

Final Thoughts about the IDFC Small Cap Equity Fund?
This fund can be a good investment for investors willing to bet on the small cap sector and believe that the small cap stocks of today can becoming the high return giving stocks of tomorrow. However, nothing is guaranteed, as it will depend upon the trading activities and stock selection of the fund manager

IDBI Nifty Junior Index Fund NFO: Review Analysis & Details

This article contains info about IDBI Nifty Junior Index Fund NFO, Review Analysis Details & Opinion. It's raining NFO's in the mutual fund market. NFO or New Fund Offer from another fund house has come through. The IDBI MF Mutual Fund House has launched its NFO or New Fund Offer called the IDBI Nifty Junior Index Fund. With the launch of this new fund, IDBI Mutual Fund has added another sector specific fund to its portfolio.
In this article, we will analyse how good is this IDBI Nifty Junior Index Fund NFO, whether this IDBI Nifty Junior Index Fund offers anything new or unique for the investors and whether the investors should invest in IDBI Nifty Junior Index Fund .

IDBI Nifty Junior Index Fund NFO: Review Analysis & Details

Let's begin with some basic details about IDBI Nifty Junior Index Fund.

What are the NFO dates for IDBI Nifty Junior Index Fund ?
The NFO period for IDBI Nifty Junior Index Fund will open on 2nd September and will close on 15th September 2010. I particularly liked the ad image which shows a big elephant of tomorrow as a mirror image of small elephant of today. Message is clear, this fund is betting your money on small cap or mid cap stocks which the fund managers expect to become the shining stars of tomorrow.

What is so unique about this IDBI Nifty Junior Index Fund?
The IDBI Nifty Junior Index Fund is an INDEX Fund (What's this? Index Funds Explained with Example) So this being an index fund, it will work passively, i.e. try to replicate the performance of the underlying index by investing in stocks which are already a part of the underlying index.
The underlying benchmark index in this case will be CNX Nifty Junior Index. As per the site, the stocks will be bought by the fund managers in the same proportion as constituted in the benchmark index.

So this fund can be a good option for investors who believe in the index story (which we highly recommend as the safest investment method -Simplest Investment Strategy to follow index investments). Moreover, being focussed on the mid cap and small cap sector, this fund will provide a good option for investors who wish to add some "smallcap" and "midcap" exposure to their portfolio.
Continue to Part II- Risks in IDBI Nifty Junior Index Fund and other competitive products

IDBI Nifty Junior Index Fund: Risks, Details & Investment Summary

This article contains info about IDBI Nifty Junior Index Fund NFO, Review Analysis Details & Opinion. This is part II of the article IDBI Nifty Junior Index Fund: Review Analysis & Details - I. Please read part I before proceeding with this one.
However, investors please note that this is an Index Fund, not an ETF or Exchange Traded Fund. Hence, investors will have to rely upon the daily NAV or Net Asset Value calculation. One cannot trade on this index fund on a tick by tick basis, as is possible with ETF.
Also note the risk part. Just because an index is being followed, it does not mean good returns are guaranteed. The portfolio rebalancing frequency by fund managers plays a vital role in deciding the returns. If the fund portfolio is rebalanced at a long duration (say once in a month), then the fund manager may end up buying stocks at a high price and selling at a low price. If the mutual fund balancing happens frequently, there are lots of brokerage charges & transactional costs to be paid for each trade, which eats up the profits and hit the returns. Hence Investors should be aware of these risks. Other than that, there are charges for exit load which investors should be aware of. The details are as below:

So overall, this IDBI Nifty Junior Index Fund seems to be a focussed fund on mid cap sector.
Mr. Gautam Kaul will be the fund manager.

The money will be invested in the following proportions:
95% to 100% - Stocks & Derivatives in the CNX Nifty Junior Index
Rest 0-5% in domestic debt and money market instruments or cash

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

Are there any alternatives to IDBI Nifty Junior Index Fund?
You can look for a mid cap based ETF or Exchange Traded Fund which is benchmarked to any mid cap index. As mentioned in the aticle with Example Relative performace of mid-cap stocks v/s large-cap stocks, JuniorBees ETF from Benchmark funds is a good ETF which tracks the Nifty Junior inde and also offers the intraday trading opportunities.

The IDBI Nifty Junior Index Fund will be benchmarked to CNX Nifty Junior Index

Minimum Investment:
Purchases : Rs. 5,000/- and in multiple of Rs. 100 thereafter.
SIP or Systematic Investment Plan is available? - Yes

No Tax Benefit is available in the IDBI Nifty Junior Index Fund

Investment Options for IDBI Nifty Junior Index Fund :
- Growth Plan:
- Dividend (Payout and Reinvestment)

The entry load for IDBI Nifty Junior Index Fund is as follows:
Entry Load for IDBI Nifty Junior Index Fund :
Zero Entry Load

Exit Load for IDBI Nifty Junior Index Fund:
1% if the amount sought to be redeemed or switched out is invested up to 1 year from date of allocation.
Nil afterwards

Final Thoughts about the IDBI Nifty Junior Index Fund?
This fund can be a good investment for investors willing to bet on the mid cap sector and believe that the mid cap stocks of today can becoming the high return giving stocks of tomorrow. However, nothing is guaranteed. Frequency of rebalancing the fund portfolio and overall performance of the mid cap stocks will matter the most