Change in Exit Load under Prudent and Aggressive Plans of ING Optimix Financial Planning Fund

ING Mutual Fund has announced a revision in exit load under Prudent and Aggressive Plans of ING Optimix Financial Planning Fund, with effect from July 1, 2011.
The revised exit load will be 1 per cent if redeemed within 2 years from the date of allotment and Nil if redeemed after 2 years from the date of allotment.
Earlier exit load used to be 3 per cent if redeemed within 1 year from the date of allotment, 2 per cent if redeemed within 2 years from the date of allotment, 1 per cent if redeemed within 3 years from the date of allotment and Nil if redeemed after 3 years from the date of allotment.

Source:http://www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultant Pvt Ltd.

Rs 1 per unit Dividend for Edelweiss Growth Equity Top 100

Edelweiss Mutual Fund has approved the declaration of dividend under dividend option of Edelweiss Growth Equity Top 100 (Plan Aand C). The quantum of declaration will be Rs 1 per unit.The record date is July 5, 2011.

Source:http://www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultant Pvt Ltd.

UTI Quarterly Interval Plan VII: Dividend Declaration

UTI Mutual Fund has approved the declaration of dividend under dividend option of UTI Quarterly Interval Plan VII (Retail and Institutional Option). The quantum of declaration will be 100 per cent of the distributable surplus as available under the plan(s) on the record date.The record date is July 5, 2011.

Source: www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultant Pvt Ltd.

UTI Fixed Term Income Fund – Series IX – VI: Extension of NFO

UTI Mutual Fund has extended the New Fund Offer (NFO) period of UTI Fixed Term Income Fund – Series IX – VI (368 Days). The new fund offer (NFO) period would now close on July 4, 2011 instead of June 30, 2011.Date of allotment of units under the plan will be July 4, 2011. Maturity date will be July 6, 2012.

Source:www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultant Pvt Ltd.

IDFC Cash Fund - Plan C: Dividend Declaration

IDFC Mutual Fund has approved the declaration of dividend under dividend option of IDFC Cash Fund – Plan C. The quantum of declaration will be Rs 0.0144 per unit.
The record date is July 5, 2011.

Source: http://www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultants Pvt Ltd.

DSP BlackRock Mutual Fund launches 3 Fixed Maturity Plans

DSP BlackRock Mutual Fund launches 3 Fixed Maturity Plans




Source:http://www.valueresearchonline.com

Thank you,
Pravin N Gurav
DENIP Consultant Pvt Ltd.

SIP Returns of our focussed funds: Magnum EBF, Magnum Global, Magnum Multiplier plus, Magnum Equity, Magnum FMCG

Thanks,

Pravin N. Gurav

DENIP Consultants

LIC - Jeevan Aarogya

LIC has introduced a unique and comprehensive Health Insurance Scheme called "Jeevan Arogya" from 1^st June2011 for the entire family. The family here includes Husband, wife, children, Parents and Parents-in-law and every member is covered up to age80 (children up to age 25). A person can enroll from age 18 to 65years. For parents and in-laws, the maximum entry age is 75yrs. For children it is between 3mths and 17years.This scheme offers Daily Hospital Cash Benefit ranging from Rs.1000/- to Rs.4000/- per person (Double the cash benefit while in ICU) in case of any Hospitalization. This benefit is available for a total period of 720 days per person during the tenure of the Scheme. In case of Major Surgeries, 140 of which are listed in the scheme, surgical benefits of Rs.1lakh to Rs.4lakhs per person depending on the premium paid is also available.

Therefore, you will appreciate that "Jeevan Arogya" is a Defined benefit Scheme, paying the amounts guaranteed as given above and not a Reimbursement Scheme based on Actual spendings for the treatment in case of Hospitalisation.The benefits of the Scheme are also independent of any other medical Scheme that you may be already have. Income Tax Benefit under Sec80 (D) of IT Act 1961 is also available. Day Care Procedures (140 surgeries) are also covered. Advance Payment of 50% of the Benefits (QUICK CASH FACILTY) is given in case of 57 Major surgeries performed in Net Work hospitals. You can also add Premium Waiver Benefit, Term Insurance cover, Accident and Disability benefits under the Scheme at a nominal cost. Ambulance charges are also reimbursed in some cases. That is why it is called a Comprehensive Health Care Scheme.

Health care at the Prohibitive cost prevalent today is every body's concern. The hospitals charge very heavily in case of unfortunate hospitalization due to major ailments. At higher ages, the cost of Medical Insurance is also very high. In this scheme offered by the biggest and most trustworthy insurer of the country, the premium depends on entry age unlike Mediclaim type of Schemes where it is a one year contract and premium charged varies with age when we renew the scheme.

A Cost-Benefit Analysis shows that for a healthy person aged 35, his wife aged 30and two children aged 10&8, the total annual premium is Rs.6214/-.The total benefits available under this scheme would be 32 lakhs for Major Surgeries for all the four members and 28.8 lakhs as Hospital Cash Benefit. The No Claim benefit payable and the Automatic increase by 5% every year in Hospital Cash Benefit is not taken into consideration while calculating the quantum of benefits as above.

Major Highlights of the plan

• ·         A unique non linked plan offering both life & health cover up to age 80 yrs.
• ·         Single Policy for self (Principal Insured-PI) & entire family including Dependant Parents     and Parents-in-law.
• ·         Health Benefit for Listed as well as unlisted surgeries.
• ·         Benefit type of policy without any link to actual expenses incurred.
• ·         No exclusion of first few days, if hospitalization exceeds 7 days.
• ·         High rebates on higher HCB Slabs.
• ·         Premium paid will be eligible for IT exemption under section 80D up to Rs.15, 000/- (Rs. 30,000/- if parents are covered).

Thanks,

dDewang K Mehta

DENIP Consultants 

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Mutual Fund Investments Seminar - DENIP Conusltants & Kotak Mahindra AMC

Dear All,

A couple of weeks back on the 18^th of June 2011, DENIP Consultants along with Kotak Mahindra AMC organized a seminar at the Gurukripa Banquet Hall 5:00pm onwards. The seminar had 70 invitees with Dewang Mehta (Director – DENIP Consultants) and Tejas Shah (Branch Manager – Borivali) being the keynote speakers.

The objective of the seminar was to educate the investors on Mutual funds in India. Dewang Mehta started the seminar by defining investments then deep diving in to the mutual fund industry. The objective defined by DENIP was clear: challenge all available investments in the market with regards to their returns and risk profile and to figure out the best possible instrument for all risk profiles.

The instrument would not only have to be good on pre tax returns but also post tax returns for e.g. Bank FDs more often than not tends to offer 9.5% versus Fixed Maturity plan offered by AMCs giving a 9% rate of return. However if tax implications are considered then the Bank FD returns would fall down to 6.56% whereas an FMP would have its returns at 8.07% or higher depending on whether indexation is available or not. The risk profile of both these instruments is almost similar with both the instruments offering a guaranteed return.

The next concept that Dewang Mehta defined was the concept of “Long term investments”. This was done with the help of an example of different forms of a cricket match. Where a team chasing 200 runs would need to score at 10 an over in a T20 format, would only need to score at 4 an over in a 50over format and at a rate of 2 runs an over in a single day of test match format. In the same way if a person started investing Rs. 1000 per month at the age of 25, he would have just over Rs. 1.4crore by the age of 60 against a person investing Rs. 3000 per month at the age of 35 managing to collect only Rs. 98lakhs approximately. A difference of 10 years takes the investment requirement to be over 3 times per month and is still not able to catch up to the returns that began earlier.

Mr. Mehta then went on to compare direct equity investments against investing in Mutual funds. This was done with the help of practical terms; when a person wishes to invest directly in equities although the potential of a 100%+ return is possible on a year on year basis the risk involved is comparatively higher because a sum of Rs. 1000 which could buy you a single stock in direct equity investments, the same amount would potentially buy you close to 30+ companies. Mutual funds investments over the long term do not require knowledge of macroeconomic or even microeconomic terms.

Although MF investments seem simple enough, DENIP ensure to stress enough on the importance of choosing a Mutual fund. Where a large cap fund for e.g. a DSP Black Rock top 100 equity fund could have earned you 32% CAGR since its inception against an ICICI Prudential Focused blue chip equity fund earning you only 16.88% since its inception based on the research done on 24^th May 2011.

Dewang Mehta then went on to stress on the importance of efficient tax planning where PPF was compared to a Tax saver fund both offering the same tax benefits; the result was that although PPF offers a guaranteed rate of return, over the long term the Tax saver fund provides the opportunity to beat the PPF by over 50% when compared for a tenure from 1996 to 2009 with investments limited to the cap of Rs. 70,000 per month.

Mr. Tejas shah who represented Kotak Mahindra AMC was next to the dais and explained the operations of Mutual funds covering the various nitty-gritty’s involved with Mutual fund investments. Mr. Shah ensured that all the categories of mutual funds such as:

1. 1.       Close ended VS open ended funds
2. 2.       Lump sum VS SIP investing
3. 3.       Liquid Funds
4. 4.       ELSS Schemes
5. 5.       Debt Funds
6. 6.       FMP
7. 7.       MIP
8. 8.       Equity Funds
9. 9.       Sector Specific funds
10. 10.   Hybrid Funds

He also covered how NAV is calculated and how investors should consider the risk profile of MF investments. This was followed with a Q&A session where various doubts of the investors with regards to mutual funds were cleared.

The event was a huge success and we at DENIP would like to thank all the participants, Kotak Mahindra AMC and the interns working at DENIP for ensuring the success of this event.

The DENIP Team -
Nimesh Marfatia, Neha Mehta, Tejas Shah (Kotak AMC), Dewang Mehta, Prakash Kabani, Gaurav Agarwal (Front row left to right)
Ravi Jhawar, Monindro Saha, Steven Fernandes, Ankit Wani, Sanchari Sinha, Vivek Agrawal, Mangesh Mahadik (Back row left to right)
Thanks,

Dewang K. Mehta

DENIP Consultants

Disclaimer Post Applies

Nifty View- July 2011 - DENIP Consultants - Dewang K Mehta

Dear All,

Attached herewith are 2 S&P CNX Nifty charts. If you look at the charts then you will clearly see that the Nifty is facing stiff resistance at the 5720 – 5745 mark due to the resistance line (denoted in red) which has been pretty effective since November 2010.

Our understanding is that although it might be a good level to sell the Nifty, this time around the scenario might just be a bit different. If you look at the numbers then the FII have been buying heavily in our markets and the fall on Friday could be nothing more than profit booking. Monday might turn out to be a more decisive day than ever considering that we already have one close in the red. If we do close in the red on Monday with decent volumes then we might actually witness the Nifty fall back to 5555 levels where it should find some decent buying.

However a close below the 5555 level could essentially see the nifty fall back in the 5400+ region. We advise traders to keep strict stop losses on their long positions and could buy some puts to hedge their long positions. A 100 point fall on the Nifty from the current 5627 level could earn decent money on Puts.

The scenario does change if we do mange to close above the 5730/40 mark. We could have an upside that potentially extends till 6000 levels. If I look at the historical trend in July then the trend has been on the upside with the Nifty gaining a minimum of 100 points in the past 2 years or so. If I was to look at the indicators then all of them suggest that we are overbought but more often than not during a break out these indicators tend to be in the overbought zone.

This time it will be very interesting to see whether we break out or continue the downtrend considering that the FIIs have been buying heavily and the DIIs have been selling. Let’s see who wins this battle but for now trade safe and be light on your portfolio positions.

Thanks,

Dewang K Mehta

DENIP Consultants 

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