Mutual Funds discussion

Mutual Fund industry is still taking baby steps in India.Unlike insurance, online trading as on this off spring has just about managed to capture and exploit about 8-12% of the entire economic potential. Indeed , there is a long way ahead of them.The next few years would undoubtedly be one of the best years in terms of growth rate for these mutual fund companies. However, in terms of products, they have come a long long way.Earlier these mutual fund asset management companies started with just a few liquid products for short term parking for the time horizon of 3-6 months.

If I am not wrong, then ELSS – stands for Equity Linked Saving Scheme. In short as per our Indian Tax Act, Under Section 80 C , upto amount Rs 1,00,000 one gets rebate from IT in investments  in certain sectors.

My dilemma is in tax plan which is the best fund right now in the market

Are close ended funds a better way of investing than open ended ones. In the past one year with the market peaking 21000 odd and crashing to some 13000 odd , The close ended funds have given better returns. Check Fusion II offered by ICICI Prudential AMC.It has given better returns than other open ended funds launched during that same tenure. The only problem about close ened funds is liquidity. One can only redeem at various pre specified transactiosn dates. Now with this volatile market- where Sensex is changing its colors every day.

Mutual funds are familiar to many people, but unless you work in finance, hedge fund are probably more of a mystery. If you've ever wondered about hedge funds or whether they might work for you, read on to learn more about this enigmatic investment.

As per SEBI circular No. SEBI/IMD/CIR No. 10/ 112153 /07 December 31, 2007, no entry load shall be charged for direct applications received by the Asset Management Company (AMC) i.e. applications received through internet, submitted to AMC or collection centre/ Investor Service Centre that are not routed through any distributor/agent/broker, for all the Fresh investments / Additional purchases under the same folio / Switch- in to a scheme from other schemes, directly made by investors, w.e.f January 4, 2008.

The current low penetration of Banking & Financial Services (BFS) in India presents a huge growth opportunity for the companies engaged in this sector. Also, BFS in India will see expansion through new age sectors like Insurance, Mutual Funds, Stock Broking, Wealth Management, etc. This future growth presents a huge investment opportunity.
 
Now, you too can benefit from this. With the fall in Sensex, the MArket Value Of Bank Shares have tipped alot. However one look at their Balance Sheet would prove that they are sound and raring to go.
 

My friend had invested in DSP Merryll Lynch's Gold Fund about three months back. About the same time when I had invested in a diversified Equity fund( with over 70 % allocation in Equity and equity oriented schemes and rest in debt schemes) I have noticed that even when the sensex tanked below 13000, his investments are going up. In this market, when Sensex is crashing day by day -Is it wise to invest in Gold Funds instead of Equity ( Diversified or Sectoral) Ones? If this is the case then which Gold Fund o invest in? Is the Reliance one better than the DSP one?

Till now, real estate investing meant an outright purchase or investing in a real estate company. Both of these options are expensive and you cannot invest in large commercial property or any substantial property. With the advent of REMF, that seems to be within the reach of the common man. Another problem that had plagued investments in real estate was the ever rising property prices. With the advent of REMFs, this problem will also seems to be solved.

Another advantage is that it will add some diversity to an investor's portfolio.

In an article in a leading journal, we came across some interesting stuff on Real Estate Mutual funds.

Here is the article for you: