Reliance MF Launched Infrastructure Fund

Reliance Mutual Fund who is No. 1 Asset Management Company in India in terms of Average Asset Management has recently launched Infrastructure Fund (Open-Ended Equity Scheme) Details of the scheme are as follows:

Reliance Infrastructure Fund (An open-ended Equity Scheme): The primary investment objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies engaged in infrastructure and infrastructure related sectors and which are incorporated or have their area of primary activity, in India and the secondary objective is to generate consistent returns by investing in debt and money market securities.

Asset Allocation: Equities and equity related securities including derivatives – 65% -100%. Debt and Money market securities** (including investments in securitised debt) – 0-35%. ** including securitised debt upto 30%.

Minimum Application Amount:
Retail Plan: Rs. 5,000/-
Institutional Plan: Rs. 5,00,00,000/-

Load Structure: For Retail Plan:

Entry Load For subscription below Rs. 2 Crs - 2.25%; For subscription of Rs 2 Crs & above and below Rs 5 Crs - 1.25%; For subscription of Rs 5 Crs and above- Nil

Exit Load For subscriptions of less than Rs 5 Crs per purchase transactions: 1% if redeemed/switched on or before completion of 1 year from the date of allotment; Nil if redeemed/switched after completion of 1 year from the date of allotment.

For Institutional Plan:
Entry Load - Nil
Exit Load – Nil.

Offer opening Date: 25th May 2009
Offer Closing Date: 23rd June 2009

Terms of Issue: The Units are available at Rs. 10/- per unit plus applicable load during the New Fund Offer Period and thereafter at applicable NAV based prices. The AMC will calculate and disclose the first NAV not later than 30 days from the closure of the New Fund Offer Period. Subsequently, the NAV will be calculated and disclosed at the close of every working day which shall be published in at least in two daily newspapers and also uploaded on AMFI site i.e. www.amfiindia.com and Reliance Mutual Fund website.

(Mutual Funds Investment are subjest to market risk. Please read the OD carefully before investing)

SBI Mutual Fund Launched Micro SIP

SBI Mutual Fund has launched equity based Micro Systematic Investment Plan (Micro SIP). The launch is targeted to generate investments from low income group households in rural and semi rural areas. It is named as Chota SIP to provide the benefit of long term investment in equity to low income class of people. As per news SBI Mutual Fund is planning to promote micro SIP through the help of intermediaries like NGO's Self Help Groups and other micro financial institutions.

Initially in Chota SIP or Micro SIP of SBI Mutual Fund the investor can opt to invest in any of four equity fund which are Magnum Balanced Fund, MMPS 93, MSFU Contra Fund, and SBI Blue Chip Fund. Later more funds will be added under Micro SIP facility

High Performance Mutual Fund- Tips on How To Choose Them

Most people who invest in mutual funds don't know what they are doing. They take advice from someone at a bank or perhaps a friend and plunk down money into a fund. Sometimes this strategy works, but most of the time, it doesn't.

When you invest your money in a mutual fund, you are trusting someone to invest in the stock market for you. Because of this, you want to be sure this person knows what he or she is doing. Also, you want to make sure that this person is not charging you too much to manage your money for you. Mutual funds fees are "hidden," in the sense that they do not charge you an upfront fee but rather a percentage of the amount of money in your account. If this percentage is too high, you would do better just blindly picking stocks yourself.

Here are five helpful tips for choosing the right mutual funds.

1. Keep the fees low. Generally, expense fees should not be much higher than 1% if it is just a basic domestic equity fund. You should never invest money in a fund that also charges a "load," which is an additional fee that is ridiculous to pay. Never invest in funds that charge loads; those funds are for suckers.

2. Check the asset base. Mutual fund managers only know of so many good investments. When they have too much money to manage, they begin investing in stocks they don't like much but need to invest in anyway or else they'll just have money lying around. There's little reason to invest in a fund with over $5 billion in assets. It's best if it's under $2 billion generally.

3. Consider an index fund. This is a fund that tracks a stock index, such as the S&P 500. For these funds, the manager just buys whatever stocks happen to be in the index. Since this is not much work, the fees are much lower. Even though this method is simple, it has proven to perform better than most mutual funds. Some high-performance index funds include FSMKX (Fidelity S&P 500) and VIMSX (Vanguard S&P 400 Midcap.

4. Evaluate the fund's strategy. If you have a long-term outlook, look for a more aggressive fund that invests in small-cap stocks, international stocks, and riskier stocks in general. High risk tends to result in high performance in the long run. If you are more risk-averse, consider an S&P 500 index fund.

5. Keep the fees low. Did I mention this already? Well, I'll mention it again. This is where most people mess up. Make sure you are not paying a load or paying too much in fees to the mutual fund.

Mutual Funds: An Investment Tool For Small Investors

Human beings from their very inception want to earn and save something for unwanted situations. In the earlier stage, he puts his earnings under the soil to keep it safe from being stolen. Later banking system was developed and subsequently different kind of instruments for investment is being used. 

Nowadays, investments in share market instruments are much preferred by big as well as small investors. Everyone wants to earn extraordinary returns from share market booms. And Mutual Funds are one of such ways through investments in share markets are being carried out by small and marginal investors. A Mutual fund is an investment company that issues shares to the public. The money it receives from shareholders is pooled and invested in a wide range of stocks, bonds, or other money market instruments to meet specific investment objectives. The various instruments included in a fund's portfolio are handled by professional money managers in line with the stated investment policy of the fund.

The essential purpose behind the Mutual Fund is to secure two important benefits for small and retail investors, viz. 

(i) minimization of risk through diversification, and 

(ii) professional management of invested funds. 

The risk associated with investment can be minimized by spreading the investment over a dozen, or even hundreds of companies, which seems to be impossible for small investors. Thus, diversification of investment reduces risk. 

Professional money management is required to become successful in the game of investment. Most of small investors can not devote the time and resources required for managing their investments. This is easily carried out by fund managers, thus producing better results.

Mutual funds in India are structured as follows:

Each mutual fund has a Board of Trustees, an Asset Management Company (AMC or the manager) and unit holders. In India, we also have a promoter or sponsor who takes the initiative of starting a mutual fund but has no active role after the fund has been launched. The sponsor remains only a shareholder of the AMC. 

As per the Securities and Exchange Board of India (SEBI) guidelines, the effective control of the AMC is not with the sponsor but with the Board of Trustees. SEBI guidelines provide the framework within which mutual funds in India have to operate. Maximum limits have been prescribed for management fees and other chargeable expense; SEBI also regulates many other aspects of mutual funds' operations and policies.

Major types of mutual funds are:

(1) Equity Schemes: investing primarily in equities with several plans such as growth plan, dividend plan, and dividend reinvestment plan; (2) Bond Schemes: invest in government and corporate bonds of minimum and long duration, thus arising their income from interest. (3) Balanced Schemes: invest in both equity and bonds based upon the specified policies and investment objectives; (4) Money Market Schemes: a relatively recent phenomenon in India, such funds invest in very short term money market instruments at lesser risks.

Once a mutual fund scheme has been floated, the buying and selling prices of its shares, known as units, from day to day are related to the Net Asset Value (NAV) of the units. A mutual fund is required to calculate the NAV once a day based on the closing market prices by valuing all assets and liabilities at their current values.

NAV per unit = (Market Value of Assets - Portfolio Liabilities)/No. of shares outstanding

SIP: an emerging trend

A systematic investment plan (SIP) commits the investor to invest a specified amount every month (or every quarter) in the units of a fund's equity scheme. The number of units bought each month for the investor under the plan will depend on the ruling price: fewer units are bought when the price is high, and more units are bought when the price is low. This is a built-in advantage of SIPs. It averages out investor's buying price over the entire period of holding. The SIP resolves a dilemma often facing investors due to ups and downs in the market price. The investors find it difficult when to invest in the equity scheme.

The investors should not take it for granted that SIP is always advantageous. The price level at the starting point is particularly important. The price level at the end of the period chosen is also critical. The rigidity of most SIP schemes can be both inconvenient and disadvantageous to investors. The investors should avoid a situation of forced redemption of accumulated units at unduly low price by building some flexibility in the choice of redemption date.

Hence, an investor should choose from among the mutual funds those which have a record of consistently good performance and possess characteristics (e.g. industry composition of investments) which will help to achieve good long-term performance of investments.

Happy Investing

Mutual Funds Investment Basics

Almost everybody has the ambition to get rich without lifting a finger - that's because there's plenty of us out there that are driven by laziness and greed. We like to find ways for having our cash work for us, or apply the Law of Leverage, which is to multiply our efforts through others. A classic example of that would be an Egyptian Pharaoh having his slaves build infrastructure or gather the rice grains which he uses for sale/trade - he doesn't do anything, but gets all the work done and gets richer and richer. You're not a Pharaoh, so how do you get rich? Well one way would be putting your money in a median that can help you reach that particular financial goal.

One "vehicle" that can get you there are mutual funds, how does this work? Simple: what you do is buy mutual funds from a mutual fund company or broker. From there, the company that you've entrusted your cash with invests it into a variety of short term investments, like the following: assets, bonds, stocks and securities. What happens next, if all does go well, is you receive dividends for each of the mutual funds you've purchased, which is your share of the profit made off it. Some people (many perhaps) find the whole process scary because they have no idea what to do first or feel that it's too much risk to take.

Fear not old friend, your investment is being managed by the company's team of investment professionals - these guys know exactly what they're doing and find the best ways possible to ensure that you make money. It's like having a symbiotic relationship with them: if they do good, you do good, heck all of you do good. Usually an investment manager does the buying and selling on your behalf, making sure all goes in your favor. As the investments diversify, the risk of loss gets lower and lower, which is clearly what everybody wants. There are three types of mutual funds, the first being: equity funds - which is basically investing in common stocks.

This is considered to be very risky, but it can also mean lots of money for you. The second type are the fixed income funds, which is a lot safer due to the fact that they're basically government and corporate securities. Here you don't take that much risk, which in some cases could mean that you don't earn that much (as compared to investing in equity funds). Lastly, we have balanced mutual funds, which consists of stocks and bonds. This type of investment is the safest amongst the three stated here, but it also is the "slowest earner" of all.

The discussion of the three kinds of mutual funds brings up an old saying: "no risk, no reward" - I forgot who said it, but I do know that it does apply to the basic "operating principle" of mutual funds. Important reminder: your shares can be sold back to the broker or to another customer at your will. If your interested in getting into this game, then I suggest you do more research about the different companies you could invest in.

The author of this article Rick Goldfeller is an underground Financial Analyst who has been successfully running campaigns for several wealthy clients. Rick finally decided to go public and share his knowledge and experience through his website http://www.finanzine.com. You can sign up for his free newsletter and join his coaching program.

Invest Your Money In Mutual Funds

Investment Tips: People nowadays are very particular about financial matters. When it comes to money, they want to make sure they have investments. Investments can be made in different ways. Other people are investing their hard-earned money in real estate. They believe in the power of real state to generate a lot of profits. Many are purchasing land which appreciates in value in the long-run. Another kind of investment like dealing with stocks is also profitable. When you know the right strategies and techniques in the stock market, you'll surely find your fortune in stocks. People are finding ways on how to produce more money and be financially independent.

They want to look at many possibilities of good investments. There is another type of investment for you to explore. You've probably heard of mutual funds. Investing in mutual funds is also considered as a wise way of putting your money to good use. If you don't know how to manage your investments yourself, this kind of investment is really for you. A mutual fund is a form of collective investment scheme wherein a professional manages the fund. The money invested by the investors will be pooled into one and the fund manager will invest it in stocks, money-market instruments, bonds and other kinds of securities.

The majority of the funds' portfolios are under the supervision of a professional. These professionals have vast experience in the investment field. They will appropriately invest the money into securities which will greatly benefit the investors. The performance of the manager is very well a determinant of the outcome of the fund. If the manager has managed well the fund, everybody will surely be happy and wealthy. That's why it's imperative for investors to check the performance of the manager. You should determine the manager's capability in handling the fund. The investment portfolio is usually diversified, meaning it should not concentrate on one investment alone.

A portion of the fund can be on high-risk investments while others are invested on low-risk securities. The manager typically invests a large amount of money in companies with outstanding financial performance. The task of the professional is essential in the growth of the fund. The mutual fund company do research and study the trend in the financial market in order to know where to invest. Every company listed in the stock market is thoroughly researched. Its annual report is also carefully studied. There are many kinds of mutual funds, like open-ended, equity and exchange-traded and others. There are some which are invested for a particular industry.

Like for example, a Pharma fund is invested only in pharmaceutical companies. Investment in a mutual fund doesn't necessarily require you to shed a big amount of money. Even in small amounts, you can now invest; you just have the option to invest every month if you want to. You can invest your hard-earned money in whatever means you know. Investing in mutual funds is one way. Just remember that your money is in the hands of a professional. They will manage it efficiently and effectively for you to reap great benefits.

The author of this article Rick Goldfeller is an underground Financial Analyst who has been successfully running campaigns for several wealthy clients. Rick finally decided to go public and share his knowledge and experience through his website http://www.finanzine.com. You can sign up for his free newsletter and join his coaching program.