Why Economic Times Mutual Fund Rating Sucks ?

India’s leading financial daily, The Economic Times [09-Feb] has come up with a Rating on Mutual Funds. The ratings suck and we advise our readers who want to create wealth over long term not to follow the same.

Economic Times analyst rate, SCAM tainted and PSU influenced SBI as the best fund house. It has ranked 4 funds from the SBI stable at Platinum rank and none from Reliance Mutual Fund or Franklin Templeton India.

Also the best performing mutual fund in the Indian market which is the single largest fund organically grown and consistently performed, HDFC Equity Fund is missing out of the ranking.
Some Reliance Funds are slightly bigger in size of corpus than HDFC equity but they are all raised through New Fund Offering.

Their is no mention of Reliance Growth Fund, Reliance Vision Fund or Franklin Templeton Prima and Franklin Templeton Bluechip fund which are so far the best managed large diversified equity funds in the Indian market.

Buy Paper Gold through Mutual Funds

Gone are the days when women would love to be in Gold Shell. I do agree that Gold is a conservative investment option and you need to have small part of your assets in Gold. No more need to BUY expensive lockers to preserve the same. BUY Benchmark Asset Managements Gold Fund – Units. Yes as simple as that. Benchmark fund invests in physical gold through HDFC Bank [custodian of your Gold] and you are the owner of the same.

Gold Benchmark Exchange Traded Scheme (Gold BeES) offers investors an innovative, cost-efficient and secure way to access the gold market. Gold BeES is intended to offer investors a means of participating in the gold bullion market without taking physical delivery of gold, and to buy and sell on National Stock Exchange (NSE).

For Offer Details Kindly refer the document here. [PDF]

Benchmark Asset Management company is the same company that introduced award winning Nifty BeES the first exchange traded fund for which they won the Golden Peacock Award.

My sources in Mumbai have confirmed that after this year’s budget, Real Estate Mutual Funds will also come into existence so that everybody can ride the Indian real estate boom.

HDFC Mutual Fund SIP Investment Update – Q4-2006

Here is the latest update from HDFC Mutual Funds performance for our SIP investors. Though the IPO market has been BUOYANT, HDFC fund managers are very cautious and they continue to hold Blue-Chips and winners in their folio. One fantastic thing about Prashant Jain [ HDFC Equity, Top-200] and Vinay Kulkarni[LongTerm Advantage Fund and TaxSaver] is their ability to spot turnaround companies and ride the boom.

SIP has always outperformed LumpSum investment in the long run. Check out the performance of the funds where we recommend investment and which we have been closely tracking for your benefit.

Happy investing!!! Stay invested for the next 10 years 🙂

Indian Mutual Fund Investors must get MIN

Indian Mutual Fund investors who invest more than Rs 50,000 in one go are now expected to get a MIN – Mutual Fund Identification Number without which he will not be able to invest from Jan-01-2007. Regulators want to know more about funds and investors under the “Know Your Customer – KYC” policy such that their is no illgeal channels of fund flows into the country.

A P Kurian, Chairman of AMFI explains the need for MIN in the following video,

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HSBC – Global Emerging Market Fund in India

HSBC Mutual Fund India has filed a draft offer document with SEBI for launching a new fund that will invest in emerging markets.

The significance of this fund is, it will not only invest in Indian Stocks but also stocks of other emerging markets such as Argentina, Brazil, Russia, China and East Europe. The fund will have both BSE 200 and MSCI Emerging Market Index as its benchmark.

One should invest some sum in this fund as well as you see India has been an underperformer in 2006 compared to China and India is also a very expensive emerging market at P/E of 18. In such situations, these funds will reduce exposure in India and move their money to other lucrative markets such as Brazil.

Stay Tuned, I’ll review the fund and post more views on it when it will be launched [ maybe Q1-2007].

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Reliance Growth Fund – SIP Review and Analysis

Till now we have been only recommending HDFC Funds – Equity and Top 200. However, last month we recommended investors to invest in the NFO of Reliance Long Term Equity Fund. Our research team has carefully analysed Reliance Growth fund managed by Sunil Singhania and we recommend SIP investors to invest in the same.

Reliance Growth fund is a pure equity fund which mainly invests in Large Cap and Mid Cap stocks. If you have seen the presentation of Singhania, you will be convinced that he is in lookout for a sunrise sector and emerging companies of the same. These companies will always give higher percentage of returns.

Here is a quick look at historical performance of Reliance Growth Fund. Since inception, it has yielded a compounded return of 33.7% for NFO investors and 40.20% for SIP investors. Your investment of Rs 1,33,000 over a period of 11 years is today worth, Rs 14,75,756 🙂 Kindly take a look at the attached excerpt from the latest factsheet.