MOSt SHARES NASDAQ 100: US BASE ETF

1. Motilal oswal launch a new ETF name MOSt SHARES NASDAQ 100

2. MOSt SHARES NASDAQ 100 is India first US shares base ETF.

3. So now you can invest and trade in US companies through this ETF in Indian rupee.

4. NFO of MOSt SHARES NASDAQ 100 is open at 16 march 2011 and closed on 23 March 2011

5. this ETF trade in Indian market base on real time NAV during market hours so You can now access US stocks like Apple, Google, Microsoft, Intel, Dell, Starbucks, Yahoo and many more that are part of NASDAQ-100.

6. So my view is positive for MOSt SHARES NASDAQ 100.

HOW NAV OF MOSt SHARES NASDAQ 100 CALCULATED:- Now I explain how NAV of this ETF calculated suppose value of nasdaq 100 index is 2200 and exchange rate 1USD=45 Indian rupee so they multiply value of nasdaq100 and exchange rate 2200x45=99000 then divided it from 1000 to 99000/1000=99 is NAV of ETF.

8. This is not an investment advice contact your financial adviser and read risk factors in prospectus of this scheme .

MUTUAL FUND FOR BELOW 10 YEAR VIEW

Hi Maheshji,
I would like to know, which Mutual Fund I should go after if m7y plan is for long term say >10 years. Should I go for dividend option in this case? My plan is to invest in SIP. Could you please guide me in choosing the right mutual fund for long term?
Thank You.
Thomas
1. In my view dividend option is always good then growth option because when you receive dividends then it means partially profit booking of your portfolio and I think you knew that profit booking is not a bad thing in share market.
2. secondly I think it is good to go with market leader fund like HDFC TOP 200 but do not accept return more than 15 % in this case.
3. if you want some higher return like 35%+ then you may take some risk and make a SIP in INFRA BEES and book all portfolio on 35% return then shift your money in BANK BEES because I think in coming 2 year infra sector will perform in ascending order and baking sector down is descending order due to market cycle.
4. Point 3 is not sure it is based on past market performance of various sectors.
5. So make your own decision.
6. Related articles

http://mutualfundgenius.blogspot.com/2010/11/which-option-is-best-in-mutual-fund.html

http://mutualfundgenius.blogspot.com/2010/08/largest-mutual-fund-scheme-in-india.html

http://mutualfundgenius.blogspot.com/2010/10/view-on-infrastructure-benchmark.html

RELIANCE INFRASECTOR FUND NOW AVAILBLE BELOW 10(@8.81 only)

When NFO of reliance infrastructure fund is come in 2009 then I advice my investors that infra share may show downtrend for 2-3 year so avoid this NFO and I will remember you on this blog when price of this fund go below 10.

One investor make a very bitter comment on this article (comment is deleted due to illegal words).now reliance infrastructure fund NAV is go down below 10 (now it is 8.81 )and in last 2 year (since nfo) your return is negative in this fund but I think this is the right time to make a SIP in this fund for 2 year and I think after 2 year this fund may give a decent return in your SIP.



READ THIS FORMER ARTICLE OF 2009 AT



http://sharegenius.blogspot.com/2009/08/nav-of-reliance-infrastructure-fund.html





These are the top holdings of reliance infrastructure fund:-



Era Infra Engineering Ltd

State Bank of India

Oil & Natural Gas Corpn Ltd

Infrastructure Development Finance Co. Ltd

Reliance Infrastructure Ltd.

ICICI BANK LTD.

JaiPrakash Associates Ltd.

Hindustan Construction Company Ltd

Sterlite Industries (India) Ltd

NTPC Limited.

Mundra Port & Special Economic Zone Ltd

Jindal Saw Ltd.

Larsen & Toubro Limited

Jayaswal Neco Industries Ltd.

Gas Authority Of India Ltd

Nagarjuna Construction Company Ltd

Shobha Developers

SPML Infra Limited



Disclaimer: - mutual fund investment is subject to market risk, author is not registered mutual fund adviser so take your own decision and I have no any unit of this fund. Read detail disclaimer on this blog.

VIEW ON INFRASTRUCTURE BENCHMARK EXCHANGE TRADED SCHEME (Infra BeES)

1. I always like to invest in benchmark exchange traded funds because they are traded like a share and provided me facility to delivery basis investing in index.
2. benchmark mutual fund launch a new open ended scheme ( ETF) at 9 sept 2010 name INFRASTRUCTURE BENCHMARK EXCHANGE TRADED SCHEME (Infra BeES).
3. theme of this fund is very simple, this fund is based on CNX INFRASTRUCTURE INDEX and price of this ETF unit is always 1/10 of this index for example currently on CNX INFRASTRUCTURE INDEX is traded on 3658 so price of this ETF one unit is 366 near 1/10 of index.
4. this ETF is traded on NSE like any other share and after buying units are deposit in your demat account like a share.
5. CLICK HERE FOR DOWNLOAD OFFER DOCUMENT OF INFRASTRUCTURE BENCHMARK EXCHANGE TRADED SCHEME (Infra BeES)
6. currently CNX INFRASTRUCTURE INDEX have 25 share like SUZLON, RELIANCE POWER , MUNDRA PORT, TATA COMUNICATION, BHARTI AIRTEL…ETC read full constitution of CNX INFRASTRUCTURE INDEX in this link
http://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm?cat=CI
7. I think most of these shares traded near his 52 week lows and not perform from last 1 year so if I make a SIP in this ETF then easily get decent returns in 2-3 years.
8. I have 41 unit of INFRASTRUCTURE BENCHMARK EXCHANGE TRADED SCHEME (Infra BeES) so my personal interest is included in this scheme. This is not an investment advice.

AVOID PSU FUNDS

Hi Maheshji what is your view on investing in Public Sector based mutual funds? Which one of them is good Religare, SBI, Sundaram or bank of baroda MF on PSU thanks Pattabhi

I think in this time when a mob of Indian PSU IPO is coming in market all PSU is traded on higher valuations banks are already traded on his all time highs.
so I think when mob of PSU IPO is cool down (in 6 months to 2 year) then PSU funds is not perform well
it is the style of market when any sector IPO is comes market player make rumeros on this sector , so I think in this time look a telecom or infrastructure fund for long term investing because infrastructure sectors is near his all time low so in 2-3 year all of infrastructure funds double to triple from here
this is my personal view only not and advice, I already holds 41 unit of INFRASTRUCTURE BENCHMARK EXCHANGE TRADED SCHEME (Infra BeES) so this is my discloser also. I have no any unit of PSU funds.

VIEW ON IDFC LONG TERM INFRASTRATURE BOND

1. Long term infrastructure bond is a new tax saving instrument which introduced in our budget 2010
2. In our budget 2010 A new tax saving section, Sec 80CCF has been introduced, where an investment up to a maximum of Rs 20,000 in infrastructure bonds would be deductible from your taxable income subject to upper limit of 20000.
3. IDFC a NBFC launch his long term infrastructure bond with face value of 5000 per bond and you can apply minimum 2 bond (minimum amount 10000)
4. investment in IDFC LONG TERM INFRASTRATURE BOND not effect of your limit of 100000 in section 80C of income tax act because The tax saving investments in this new section (Sec 80CCF) is over and above Rs 1,00,000, that is already allowed under Section 80C.
5. IDFC LONG TERM INFRASTRATURE BOND is for 10 year period and minimum lock in period of 5 year.
6. IDFC LONG TERM INFRASTRATURE BOND will be listed on the stock exchange NSE/BSE but no trading will be established during the lock in period of 5 year.
7. IDFC LONG TERM INFRASTRATURE BOND are rated LAAA by Icra. This is the highest possible rating and indicates a stable outlook.
8. Author of this blog is not a registered investment advisor so please consult your investment advisor before investing.
9. last date of issue is 18 oct 2010.

BEST TAX SAVING PLAN: SBI MAGNUM TAX GAIN SCHEME 93 GROTH

1.I choose which scheme “which have largest fund size” because I believe scheme with largest fund size is market leader and fund manager have more money to diversified its portfolio to give stable returns for his investors so it is the reason that I recommended SBI MAGNUM TAX GAIN SCHEME 93 GROTH in ELSS.
2. Tax saving mutual funds, also known as Equity Linked Savings Schemes (ELSS). Investments in ELSS funds are qualified for deduction from taxable income as per income tax law.
3. Tax saving mutual funds usually has a lock in period of 3 years. So keep this point in mind in my policy I like to make a SIP in tax saving fund and after three year make a SWP for just ½ of average unit.
4. I clarify point 3 in my separate coming article “HOW TO BUILD SYASTAMATICE ASSETS BY ELSS”
5. SBI MAGNUM TAX GAIN SCHEME 93 GROTH has a fund size of 5681.65 cr. And second number is HDFC TAX SAVER GROWTH PLAN with fund size of 2715.42 cr. (as on 31 Aug 2010, fund size is changeable time to time)
6. this fund give 14.86 % annualized return since incorporation means 1993 and last 5 year give 18.20 % return and last 1 year give 21.94 % return.
7. this is not an investment advice ,this is only my view about this fund.

WHY INVEST IN FIXED MATURTY PLANS (FMPs)?

WHY INVEST IN FIXED MATURTY PLANS (FMPs)?
1.most of investors like to invest in FMPs because they think FMP are good alternate of fixed deposits
2. FMPs are schemes that invest in fixed income instruments, like, commercial papers, money market instruments, corporate bonds, debentures of company’s certificate of deposits or securities issued by government of India and fixed deposits.
3. The basic objective of a FMP is to generate steady 6-8 % returns over a fixed period. So investors are assured of returns if they stay invested in these products till maturity.
4. FMPs have lower risk of capital loss due to their investment in debt and money market instruments.
5. FMPs are also listed on the stock exchanges and can be sold prior to maturity as well. However, liquidity of these schemes could pose a problem while trying to exit before maturity.
6. FMP give only 6-8 % return and there return is taxable also so I think it is much better to hold cash in saving accounts and avoid FMP because if you hold cash in saving accounts then you got 3.5 % interest with full liquidity so I do not like to invest in FMP.

VIEW ON RELIANCE SMALL CAP FUND NFO

• Reliance mutual fund launch a new scheme name reliance small cap fund benchmark for this fund is BSE small cap index.
• NFO is open till 9 September 2010.
• In my view RELIANCE MUTUAL FUND is a fund house with great brand name of reliance so small investor easily attracts with NFO so no doubt that NFO collect huge fund in this scheme.
• Last year in same time reliance mutual fund launch reliance infrastructure fund so now we check latest NAV of reliance infrastructure fund
• Click this link for check NAV of reliance infrastructure fund
http://www.reliancemutual.com/NAV/NAV.aspx
• We found NAV 11.70 so reliance infrastructure fund give near about 14 % return in one year and nifty or sensex give near about 20 % return in a year so this fund clear underperform the market.
• I am not against to invest in reliance small cap fund , but I think we should buy it or make a SIP in reliance small cap fund in correction when this fund NAV may be fall below 10.
• if this happen then I inform you in this blog

IS IT RIGHT TIME TO BUY MUTUAL FUND ?

If you ask me honestly then I say yes. Because mutual fund have a very good tool called sip. If we buy a share in sip method then we spent a high brokerage but in mutual fund SIP charge is very low and SIPS are a very good tool for new investor because it average out your buy price and always protect you from big losses.
In this blog I already discuss 2 mutual funds below their offer price 10 rupee. I always prefer a sideways sector fund to investment when market is high.
Please also remember ULIP is not a mutual fund. It is an insurance tool. Always prefer ELSS for saving tax instead of ULIP

Sharegenius Method of Profit Booking in Mutual Fund SIP.

1.This formula of mutual fund profit booking is very simple but very powerful method to book profit in a SIP of the mutual fund.

You may apply it on any funds history.

2. I think you like this superb method of profit booking because this formula invented by me from 5 to 6 year hard research work on NAV history of mutual funds.

3.In this formula when your total portfolio value grows 11% then book profit in your 33% mutual fund units and continue your SIP.

4.For example, you start SIP of 500 rupees in a mutual fund at NAV of 10.

After 15 months of your SIP suppose your total unit is 733 total investment 15*500=7500.

 Now NAV is 11.36, so current value of your portfolio is 11.36*733= 8326.88 

so your net profit is 8326.88-7500=826.88

 It is above 11% of your investment so now book your 1/3 (33%) holding.

It means if you own 733 unit then you sell 733/3=244.33 unit it will give you the total amount of 244.33*11.36=2775.58.

In this INR 2775.58, you book all of your profit 826.88 and remain 2775.58-826.88=1948.70 is the principal investment which you book, 

So your remain investment in SIP is 7500-1948.70=5551.30.

Now continue your sip add per month 500 in principle amount and wait next 11 % rise in total investment.

5.  Read Part 2 of this article, where I provide Excel sheets of practical examples with using this method here is the link of next part:-

How to Book Profit in Mutual Fund SIP

top mutual funds India

BIRLA SUN LIFE INTERNATIONAL FUND PLAN A

1. I think this is the right time to make a SIP on Birla sun life international equity fund plan A because currant NAV of this plan is 8.51 still below issue price or face value of units 10.
2. about 3 year ago when our and international markets is traded on all time highs then international equity funds launch in our markets I think this is the first international fund of Indian mutual funds.
3. This fund launches 2 plans in plan A 100 % of investments make in international markets through international funds .

4. So I think if we make a SIP of 500 per month in this fund then it may diversify our portfolio in international stocks.
5. The international portion of this fund would be managed with the following objectives:
• Invest in countries that have a low correlation with the Indian Economy.
• Invest in countries that have strong and stable economy
• Choose sectors and segments that are posting strong growth in these countries.
• Choose stocks in these countries that have strong market presence and have high potential for growth

KEY WORDS:- TOP MUTUAL FUNDS IN INDIA