Category Archives: Business
Comparison between HDFC Prudence Fund and DSP BlackRock Balanced fund
HDFC Prudence Fund
It is an open ended growth fund by HDFC Mutual Fund. Fund launched on 16 Dec. 1993. Prasanth Jain is the fund manager. Rs 5000/ is the minimum investment needed. Fund gave best returns to investors. It is one of the experienced funds in India. Last one year return from this fund is 12.4%. Prasnth Jain is carefully leading this fund. Last six month performance of the fund was affected by the market violations. The fund gave 25.6% and 19.3% annualized return in the last two and three years respectively. Performance of nifty in 2008 was pathetic. It gave a negative return of 51%.Comparatively better performance was done by the fund during the period. They gave a negative return of 42.5% only.
State Bank of India, ICICI Bank, Infosys Technologies, Tata Consultancy Services, Bank of Baroda, Coal India, Titan Industries, Oil & Natural Gas Corporation, Page Industries, Bharti Airtel, Reliance Industries, Bharat Petroleum Corporation, 3M India, Tata Steel, Pidilite Industries and Cipla are the main stocks included in its portfolio. Banking, oil & gas and technology are the industries preferred by this fund. NAV of this fund closed @ 213.94(2 June. 2011).
DSP BlackRock Balanced fund
- DSP BlackRock
This is a quality open ended fund. Apoorva shah is the fund manager. The fund started in 1999. Rs 5000/ is the minimum investment needed. Fund gave fabulous returns to investors. Fund’s one year return is 9.2%. 2008 was a nightmare for stock market investors. Nifty collapsed 51%. But this fund gave only (-38.6%) return in 2008. This is comparatively better performance. Nifty performed very well in 2009. It gave a return of 75%. The fund gave 63.6% return in 2009. This is a low risk fund for conservative investors. This fund can save investors from drastic market falls. The fund gave 16.2% and 11.2% return in the last two and three years respectively.
Tata Consultancy Services, Hosing Development Finance Corporation, ICICI Bank, HDFC Bank, Cairn India, Oil & Natural Gas Corporation, Hindalco Industries, Bharat Petroleum Corporation, Coal India, L & T, Bank of India, ITC, Godrej Properties, Info Edge India, Tata chemicals, Tata Power company, Bayer Cropscience, Torrent pharmaceuticals are the important stocks included in its portfolio. Banking, Oil & Gas, Engineering are the sectors preferred by this fund. 71.59% of the amount is invested in equities. 17.02% amount is invested in the debt instruments. There is no entry load in this policy. There will be 1% exit load if it is redeemed within one year from the date of allotment. NAV of the fund closed @ 66(2 June. 2011).
Super Religare Laboratories IPO coming
- Super Religare Laboratories
Super Religare Laboratories is one of the companies working in the Indian healthcare sector. The specialty of Indian healthcare sector is the absence of variety companies to invest. Limited companies are available for investors. The billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh are the promoters of the company. They are the promoters of fortis healthcare, one of the leading hospital chain networks in Asia. They are very interested to create maximum profit for its shareholders. They were the promoters of Ranbaxy Laboratories, which created a lot of wealth for its shareholders.
Diagnosis is the basis of any treatment. Super religare laboratories has 48% market share in the Indian diagnosis industry. They have 1550 hospitals/pathology labs. 58000 doctors are working for them. Piramal diagnosis services private limited is a subsidiary company of SRL. They spent Rs 600 crore to buy Piramil diagnosis. Both of these companies perform 33000 tests/day. They are providing top quality services to the customers. Super religare laboratories are trying to enter in capital market. They had filed a red hearing prospectus with SEBI. They are trying to issue 2.8 crore equity shares of Rs 10 each. The issue will be through 100% book building process. These shares constitute 35% post issue paid up capital. The company is also trying to collect Rs 160 crore by the private placement of up to 80 lakhs shares.
According to the IMaCS Report, Indian Healthcare sector is valued Rs 1645 billion in 2009. It is estimated that the sector will grow to Rs 7940 billion in 2015. Annual growth rate of 30% is expected in the sector. Huge growth is expected in the Indian diagnosis sector too. With a 48% market share in this sector, Super Religare laboratory can make a lot of money in the coming years. By the support of fortis Healthcare, they can have easy expansion opportunities.
The diagnosis industry in India Can be divided as three. They are radiology, Pathology and other services. Indian Pathology market is estimated as the 2.5% of the total healthcare sector.1.25 million patients are the daily visitors of Indian Pathology market. There are 40000 pathology labs are working in the country. Indian radiology Market is estimated as the 1.10% of the Indian healthcare industry. Super Religare Laboratories provide 3300 different diagnosis tests. With the support of piramil diagnosis, they have become the largest radiology service provider in India. Indian healthcare industry is one of the booming one in the coming years. Medical tourism is another factor for the growth of Indian healthcare industry. Big increase in the number of medical tourists are expected in the coming years.
HDFC Top 200
- HDFC Mutual Fund
HDFC Top 200 is a Large Cap open ended fund by HDFC Mutual Fund. This fund started at Aug 19, 2006. Prasanth Jain is the fund manager. Minimum investment of the fund is Rs 5000/. The fund gave excellent returns to the investors. Fund’s one year return is 11.6%. The fund gave 2.8% return in the last three months. The fund gave 22% and 17.6 % annualized return in the last two and five years respectively. 2008 was the worst time of the global market where the fund gave (-45.5%) return. It is a comparatively better performance when nifty gave (-51%) return. In 2009 the fund gave 91% return where nifty gave only 75% return. This shows the fund could protect investors from major market dramas and led to victory.
State Bank of India, ICICI Bank, Infosys Technologies, Reliance Industries, Bank of Baroda, ITC, Tata Consultancy Services, Coal India, Titan Industries, Oil and Natural Gas Corporation, Larsen & Toubro, HDFC Bank are the main stocks included in its portfolio. Banking/finance, oil & Gas, Technology are shared by the 51.61% of its portfolio. 96.86% of the fund is invested in equities. It is aggressive fund and its NAV is closed@ 203.10 (26 May, 2011).
DSP BlackRock Top 100 Equity fund-Regular Plan
DSP Blackrock Top 100 equity fund – regular plan is a Large Cap open ended fund which gave smart returns to its investors. The fund launched at Feb 21, 2003. Apoorva Shah is the fund manager. Rs 5000/ is the minimum investment needed. Fund’s one year return is 10.3%. The fund gave 4% return in the last three months. The fund gave 18.3% and 16.6% annualized return in the last two and five years respectively. 2008 was a very bad year for the global market. Nifty dropped 51% in 2008 where this fund gave (-45.8%). In 2009 nifty gave 75% return where the fund gave 74.6% return. According to the statistics, fund performed comparatively well in the big market dramas.
Tata Consultancy Services, ITC, Oil and Natural Gas Corporation, Housing Development Finance Corporation, Larsen & Toubro, Coal India, HDFC Bank, ICICI Bank, Grasim Industries, Hindalco Industries, Siemens, Cairn India, Hindustan Unilever, Bharat Petroleum Corporation, Bank of India, and Kotak Mahindra Bank are the main stocks included in its portfolio. Banking/Finance, Oil & Gas, Technology were the main sectors preferred by this fund. NAV of this fund closed@ 98.76(27 May, 2011).
Think Before Invest in Stock Market
Ascertain the risk
Investor should understand about the risk in the equity investment. Stock markets investments have certain risk. It is not just a money making machine. Money is going to the share capital of the company.
Independent work
Independent study and analysis on companies is desirable to attain your investment goals. Let others agree or disagree with you. The decision must be yours. Others can say anything about different companies. So let your clever decisions lead you to wealth.
Be prepared
The thirst for knowledge should be maintained throughout the life. Study will not end in a day. It will be continued through the life. Knowledge will help you to adjust in the difficult life situations. Please study something in a day. Tactful thinking will block you from foolish decisions and save you from huge losses. Wrong investment decisions are the big enemy of your wealth.
Sharp analysis
You should study well before you invest. The financial statements of the companies will not lie in common cases. Just check the market capitalization before the value of its one share. Think as a businessman. You are buying a part of the business, and it will lead you to wealth.
Investment proportion
There will be strong decisions regarding on how much money should be vested for each investment options. Do not over invest in a particulars company. Money can be used again in the good buying opportunities in future. So allocation of money is very important.
Keep patience
The tendency of hurry should be controlled by each investor. It is better to invest for long term good companies to create wealth instead of investing and withdrawing your money many times in a particular stock.
Keep courage
Determination and courage will help you to right decision in the right time. Your investment decisions should not be changed according to the emotional attitude by other investors. Opportunity will not wait for you. You just catch when it comes.
Be ready to change
You should change according to the unavoidable changes in the future. You may have to change your old thoughts by time. If your old ideologies are proven to bad, you should be ready to change. If you are not daring to change according to the new market conditions, you will suffer huge losses.
Think right
A small mistake can lead you to huge losses. Right thinking will help you attain your financial ambitions a reality.
Cut your Expenses
Everybody is familiar with the word inflation. It is silent virus to kill our family budget. It has become an enemy of our hose wives now. Inflation numbers are prepared by the whole sale index of different products. It is the pain we bear in the last month. There is a 100% increase in the prices of different product by two years. Moreover the cost of services, education, rents and interests have been increases in the last couple of years. There should be some tight regulations to live in the inflation period. You should think how I can gain Rs 100 in the next month. It is because the price of the products is increasing, but your income is not. Tightening of your expenses has become the necessity of time. Family budget may be a rare subject for us. There is a limited income. You are paying your money to the expenses. You save the surplus amount. That style of life should be changed.
Your expenses should be divided by four. They are necessary, very necessary, avoidable, and luxury. It should be decided that you will Rs 100 in each month. It is the second step of family budget. Division of expenses and the preparation of family budget will enable you to face the challenges of inflation. Bulk buying will help you save money. Because you may get discounts in bulk buying. The goods that cannot be damaged by time can be bought for a month. Sugar, rice, oil are examples of those goods.
The price of fruits and vegetables are seasonal. If you purchase the seasonal fruits and vegetables, you can make gains. The next way is to attain self sufficiency in vegetable production. Try to produce some vegetables in your home. Instant foods help you to save time. If you avoid the instant foods, you will have both financial gain and quality products. Most instant foods are adulterated, thus you can save your health.
Electricity bill is the next headache. Please turn off your refrigerator in unnecessary time. Use of CFL lamps, one time use of ironing will help you to reduce your electricity bills. Telephone bills are the next. Everyone use mobile phones and lot money is spent. The mobile service provider can be changed without changing your number by the use of mobile number portability. You can choose the service provider who realizes the least tariff.
Future of Gold as an Investment Opportunity
- Gold
Gold has been attracting many people as a hedging tool against unpredictability and indefinite future. It is not only a tradable commodity but also a safe investment. Gold will not give dividends or interests like the other conventional investments. Our world is going through the terror of inflation now. Investment in gold will help helps you to bring diversification in your portfolio. It is an effective hedging tool against the financial and political indefinities. It can also be considered as an alternative against currencies. These are the factors they lead gold to create new highs. These factors will be continued for years.
Gold is traded in the world as a high liquidity asset. London is the main center of physical gold. Comex is the main exchange where the highest Futures and Options trade in gold. India is a big consumer of gold. But the Indian customers are interested in the gold by ornaments. Both the Indian and Chinese people keep craze to gold. The increase of the purchase power of both the Indian and Chinese middle class may again increase the demand of gold. Both India and china will be continuing as the 1st and 2nd market for gold ornaments.
Gold may show demand when there is disbelief on Dollar and Euro. Since it is acceptable anywhere, it is considered as a medium of exchange. The supply of gold is limited. We cannot increase the supply of gold as easy. Gold works like an alternative currency. So gold will be strong whenever there is a fall in currencies. There is extensive trading of gold like US DOLLAR. The majority consumption of gold is out of US. Gold will become cheap for out of US, when there is weakness of gold towards the other currencies. Thus it will increase the demand by the countries like India and China.
Te acceptance of gold as a safe investment and the portfolio diversisification will increase the value of gold. Continuing value depreciation of us dollar will be a factor to increase its value as an alternative currency. Although it is in the all time high, there is strong demand for gold in India. Coming wedding season may be a fuel for gold in India. Many investors are waiting for a correction in gold. They did not get enough opportunities in last couple of years. The investors can use each dip in gold as an opportunity to invest.
Muthoot Finance IPO
The largest Gold Financing Company in India, the Muthoot Finance Limited has started its preliminary IPO selling on monday. They will be selling total of 5, 15, 00,000 shares with a face value Rs 10. Price band will be between Rs 160 to Rs 175. According to I-MAX research and analytics industry report, Muthoot is the largest Gold Financing Company in India. The last date for qualified Institutional Investments will be April 20 and for non QIB Investments and retail investments the last date will be 21st April. Investors should by a minimum of 40 shares. Later shares should be the dividend of 40. Issue has got a good rating of 4 out of 5from CRISIL and ICRA. Book building issues should not exceed more than 50 % for QIB investors. 5 % of QIB issues excluding anchor investments are given exclusively to Mutual funds. From the total shares issued, 15 % of the total issues for non institutional bidders and 35 % is allotted for retail investors. The company has allotted the 35 % of total QIB investments to anchor investors. One third of anchor investments are given to Mutual Funds. This will be according to the demand of mutual funds or when its value is increased beyond anchor investments. Remaining anchor will be added with the QIB investment. Investors bidding through ASBA (Application Supported by Blocked Amount) should provide their details about the bank account. The issue will be mainly for corporate functions and financing. The issue will be conducted by RHP and the company will be listed in Bombay Stock Exchange and National Stock Exchange. The book running lead managers are ICICI securities limited and Kotak Mahindra Capital. HDFC is the co-book running lead manager. Among the total issues, 15 % has been allotted to anchor investors. There has been a great demand from different companies across the world. Among them issues are allotted only for five companies at a rate of Rs 171 for each share and a total of 131 corores has been raised. Goldman Sacks India Funds, Citi Group Global Markets, Abu Dhabi Investment Authority and Birla Sun Life Insurance Company are the five companies being selected
