September 9, 2011

Religare Finvest LTD – NCDS

Religare Finvest LTD – NCDS-COMPANY PROFILE:

Religare Finvest Ltd (RFL) was incorporated as a private limited company called Skylark Securities Private Limited on January 6, 1995. Subsequently its name was changed to “Religare Finvest Limited” vide a fresh certificate of incorporation dated April 4, 2006.
RFL is a systemically important non-deposit accepting non-banking finance company (NBFC), focusing on small and medium enterprises (SME) financing and retail capital market financing.

Religare Finvest LTD – NCDS ISSUE SALIENT FEATURES :

Interest rate range from 12.00% to 12.50% depending on the series applied for (Option I & Option II)
Higher interest rates for individuals applying up to Rs. 500,000
Credit Ratings of “ICRA AA- (Stable)” and “CARE AA-“
Non-convertible debentures (NCDs) are allotted on a first-come-first-serve basis
NCDs are allotted on demat mode only
NCDs have two series of options: 60 months and 36 months

Religare Finvest LTD – NCDS ISSUE INVESTMENT OPTIONS

Options	\|	\|\|
Minimum Application	Rs10,000 (10 NCDs; for all options of NCDs, namely Options I and II either taken individually or collectively).
Face Value/Issue Price	Rs. 1,000 (1 NCD)
In Multiples Of	Rs. 1,000 (1 NCD)
Interest Rate (%) per annum
1) For NCD holders in Category I	12.10%	12.00%
2) For NCD holders in the Non-Institutional Portion (Category II)	12.25%	12.15%
3) For NCD holders in the Reserved Individual Portion (Category III)	12.50%	12.25%
Yield on Maturity (%) (per annum)
1) For NCD holders in Category I	12.10%	12.00%
2) For NCD holders in the Non-Institutional Portion (Category II)	12.25%	12.15%
3) For NCD holders in the Reserved Individual Portion (Category III)	12.50%	12.25%
Listing	BSE	BSE
Frequency of Interest Payment	Annual	Annual
Redemption Amount (Rs/NCD)	Repayment of the face value plus any interest that may have accrued on the redemption date.	Repayment of the face value plus any interest that may have accrued on the redemption date.
Tenor	60 months	36 months

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September 7, 2011

Sundaram’s SMILE Fund (G) Option

Sundaram’s SMILE fund (G) option is one of best performing mutual funds in Indian Mutual Fund Industry. This is offered by Sundaram Mutual Funds. Stock market has been going through lots of up and down. Indian stock market has witnessed a lot of volatility in the last six to eight months. Investors have lost lot of their hard earned money while chasing stock market. But we often lost money not because of any external factors, buts it’s because we fail to control our own internal factors. One of the best ways to invest in stock market is fund allocation with the short term and long term focus. Indian mutual funds have came a long way. There are lot of new and convenient ways to invest in them. Nowadays, one can invest online in mutual funds which have bought them even closer to retail investors.

Sundaram’s SMILE Fund (G) Option offer long term financial solutions.Long term financial solutions are those investments which are done with a time frame of 3-5 years minimum. Investing in stock for long term is a good way to park your money. But problem arises when market uncertainty start taking toll on your investment. One of the best ways to tackle these situations is by investing in good mutual funds.

Sundaram’s SMILE Fund (G) Option is a growth fund.Sundaram’s SMILE Fund (G) Option offer diversified and large cap mutual funds. One of such fund is Sundaram’s SMILE fund (G) option. It has existed for last 6 years in the market and consistently yielded good returns. It is a Equity open ended fund which invest in large as well as small and mid cap stocks.

It has an asset under management of Rs 570 crore as of July 2011. It can invest 35 per cent of its portfolio in large cap stocks but over last years or so, it has concentrated on mid and small cap segment. It has also been under Top 100 mutual funds. In general, those funds which invest in mid and small caps, they deliver good returns only in long terms. So, picking this fund for short term won’t make any sense. Here are some of the Fund Facts(Figures are approximate);

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September 5, 2011

Stock Market outlook for next few weeks

Stock Market Outlook for next few weeks is going to be very volatile. Stock markets in India have been doing well for last few sessions. There has been huge turn around in the buying interest among investors. Market has recovered a lot in the last week and fallen yesterday to shed some of the gains it acquired last week. Stocks markets in India have been going through this zig zag motion for some time. Indian stock market forecast is quite dismal for the short term.

Stock market outlook for next few weeks will depend upon lot of factors.Global stock market indexes had their own share of beatings, happenings in USA has been causing this negative impact over stock markets world over. Recent news from Economy (U.S) that USA is again moving into recession has caused flairs across the global stock market indexes. Inflation and local socio-political instability is still nowhere close to clear. European Union is already struggling to come out of its own crisis.

Stock market outlook for next few weeks has been a major issue of debate among experts across the globe.

With the inflation consistently hovering in the upper region, it can’t be said that Reserve Bank of India is done with its rate hiking exercise. India has seen series of rate hikes in few last quarters. Inflation is still not in control but their effects on growth are visible now.

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August 31, 2011

Future of IT shares in India

Future of IT shares in India-USA is again going through tough times or rather it can be said that it is still struggling to come out of the financial crisis which started in 2008. US debt crisis are still haunting US economy and companies across the country are finding it hard to sail through it. Recent events related to it have worsened the situation. S&P and china has already downgraded the USA and it has further added the fuel to the raging debate of its ability to come out of it, at least in the near future.

Future of IT shares in India depends upon various companies across USA which are struggling and layoffs and expenses cut down has become a routine measures to control the situation. Amidst of all the happening in the USA, one another country which is already struggling with high rates of inflation and turbulent socio-economic situation is, India. Though situation in India is a lot different than USA, but right now Indian economy and especially Indian stock markets are influenced by the happenings in USA.

Futures of IT shares in India also contribute to the GDP of the country.Indian IT companies do contribute significantly to Indian economy and they are one of the favorites among the stock investors in India. They have consistently delivered good returns to the investors. But looking at the current scenario in USA and Europe, it is not very hard to predict that coming days for Indian IT companies are going to be considerable tougher than previous days.

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August 12, 2011

Best or worst for stock Market

Best or worst for stock market in India is lying in the middle of the top and bottom of the current levels. Market has been going through a tizzy in last few weeks and it has become extremely difficult for average investors to keep hold of that. US debt issue has flared the global market worries. Europe was already going through a tough time and when US debt problem came in the picture, it blasted the stock markets world over.

Best or worst for stock market is something which is like predicting its top or bottom levels. Lot of people would say many thing but no one can actually predict that.

Best or worst for stock market depends upon lot socio-economic factors. World has been struggling with economic turmoil for last three years but this time it is different. USA is not showing any sign of permanent solution for its debt problem and china, which was in a better position in 2008, is currently showing sign of weakness. Therefore the risk of a bigger economic recession cannot be ruled out.

Stock markets do anticipate a lot of these things and as usual, they have been falling since news about US debt worries broke into the public domain. Indian stock market has gone through their own share of beating but more breaksdown seems to be inevitable.

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July 3, 2011

Banking BeES

Banking BeES-In the past we have gone through some of the hottest selling Exchange Traded funds life Nifty BeEs and Nifty Junior BeES. Both of them are kind of diversified funds which consist stocks from various sectors. Today we are going to walk through another Exchange Trade Funds which is extremely popular and gaining even more popularity.

Banking BeES have been doing well because banking stocks have been doing very well in last two years. And though Indian economy is still haunted by inflation and related issues, but these stocks are still extremely lucrative. But like I mentioned inflation, rate hikes and global economy does impact banking sector, it is very difficult for an average investor to pick correct banking stocks.

Banking BeES value is affected by the value of the banking shares. There are lot of factors which affect the health of a bank like current interest rates, asset quality etc, so they are more complex to study and understand for a average investor. One of the best way to invest in them is through mutual funds and Exchange traded funds.

Banking Index funds are one of the best funds available in the current Indian stock market. Banking index benchmark Exchange Traded scheme is one of the best index traded fund for banking and it has consistently yielded extremely good returns for the investors.

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April 19, 2011

Muthoot Finance IPO Analysis

Muthoot finance is quite a familiar name in the gold loan industry. They have made some descent growth in the last few years. Now they are going public and coming with their IPO. It status is RBI registered NBFC non deposit taking which helps it in fund raising. They are offering it at a price band of Rs 160-175. Issue will open on April 18 and will remain open till April 21. Its CRISIL rating is 4/5 and CRA rating is also 4/5. This indicates good fundamentals.

Gold loan industry is growing rapidly in Indian. Muthoot finance is one of the prominent players in the industry. Though there are few uncertainties regarding regime, regulations and competition from banks but muthoot’s track record goes in its favor. It has consistently expanded in the new geographies, its management has shown consistency and the benefit of being early bird in the sector has also helped them a lot.

Muthoot finance provides personal and business loan against gold. Its it has a outstanding loan of Rs13,004 crore as of nov 2010. It has a market share of 19.4 per cent. It is aiming to garner around Rs824-901 crore to fund its business. Existing PE investor will stay invested in the firm, so it is also a good sign for the investors. It has a compounded annual growth rate (CAGR) of 75.7 per cent during FY2006-2010.

Their business model of providing loan at lower interest rates and quickly opening new branches to target new customers has helped them in maintaining high growth. There is one risk to them and that is they are getting some serious competition from banks like ICICI and HDFC. These banks are now aggressively targeting gold loan business and offering new attractive schemes.

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April 17, 2011

Index Traded Funds – Nifty Junior BeES

Index Traded Funds – Nifty Junior BeES–In the last few post we have seen how Exchange Traded Funds are very good tool to invest in stock market with relatively lesser risk than picking individual stocks and ease of trading it like stocks on stock exchanges. ETF are extremely good for short term because if market rises than then they too will appreciate accordingly.In the past we have gone through Nifty BeES, today we will look into Nifty Junior Benchmark Exchange Traded Fund.

Index Traded Funds – Nifty Junior BeES is one of the best Exchange traded funds available in Indian market. It was launched on February 14, 2003. It is a open ended ETF with 0.00 per cent Entry and Exit load. Though your broker will charge some amount as brokerage and other related charges for their services. Please check with them for details on charges.It comes from Benchmark Mutual Fund house.

Index Traded Funds – Nifty Junior BeES has consistently given excellent returns since its inception.

Returns (as on Apr 15, 11)
Period      Returns (%)    Rank #
1 mth       7.9                   3
3 mths     3.4                   6
6 mths    -10.7                 40
01 year     6.9                  35
2 year       50.5                5
3 year       11.0                5
5 year       11.9                5
# Moneycontrol Rank within 44 Equity Index Schemes* Returns over 1 year are Annualised

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April 13, 2011

Real Estate industry in India

Real Estate industry in India-Bulls are back on the Dalal Street and Indian share markets have made a sharp recovery in today’s trading session. The Sensex started the day in red and touched a low of 19,101 in the morning. However, it rebounded into the green and headed northwards as the day progressed. Huge buying in auto, banking and capital goods stocks pushed the index up to a high of 19,731 towards the end of the day. The Sensex finally ended with a gain of 434 points at 19,696 and the Nifty added 125 points at 5,911.

Real Estate industry in India is dominated by likes of DLF, Unitech etc.There is some positive news about the Indian stock market. Reality stocks like DLF, Unitech, Oberoi Reality and most of the other reality stocks closed in green. But things are not so good for the Real Estate sector in India. As per recent reports on it, buyers are staying away from the real estate projects.

Real Estate industry in India is expecting prices to dip. This dip is going to vary based upon the regions. Rates will drop across all major locations in India. Demand is still there but there are other factors which are affecting the reality market. In last few years, reality prices have gone up significantly. There are lots of projects which are stuck and most of the real estate projects are delayed.

There is always a sense of doubt when it comes to real estate developers and brokers. Most of the developer deals with the customer through brokers which also makes the process non-transparent. Due to lack of transparency, buyers are avoiding slow moving and pre launched projects.

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April 6, 2011

Credit card protection insurance plans

We live in a world of credit. Most of things in our life come with a credit. There are various means through which we can avail facility of credit and Credit Card is one of the most widely used methods of availing credit. Plastic money in form of credit card is so common that usage of cash in the real time has gone down drastically. From booking air, train tickets, shopping, paying utility bills and buying anything online.

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April 5, 2011

Foreign Institutional Investors and Domestic Institutional Investors

Domestic institutional investor (DII) is a term which refers to Indian mutual fund companies, life insurance companies and banks. Traditionally, Indian stock market were dependent on the money flow from the outside the country for sustainable rallies. These players are foreign financial institutions which trade in Indian stock markets. FIIs have consistently dominated the Indian stock market and its rise and fall is directly related to their investments in India.

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April 4, 2011

Is it a good time to buy?

Indian stock markets have been roaring for last ten days. There is lot of optimism among traders. Highs are witnessed along with good volumes which indicate that the rally is strong and backed by the trading community. Everybody is being involved in this rally. From retail investors to foreign institutional investors, everybody is on a buying spree. But there are many who suggest not buying on rise.

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