Friday, August 5, 2011

Franklin India Index Tax Fund to be merged into Franklin India Index Fund - NSE Nifty Plan

Franklin Templeton Mutual Fund has announced that Franklin India Index Tax Fund (FITF) would be merged into Franklin India Index Fund - NSE Nifty Plan (FIIF - Nifty) as on 9 September 2011. Consequently, from the date of merger i.e., effective 9 September 2011, the investors of FITF would become investors of the growth option in FIIF - Nifty.

In terms of prevailing regulatory requirements, investors in FITF are given an option to exit at the prevailing Net Asset Value without any exit load, in case they do not wish to approve the merger. The period of this no load exit offer is valid from 8 August 2011 to 9 September 2011.

Source: http://www.adityabirlamoney.com/news/496626/10/22,24/Mutual-Funds-Reports/Franklin-India-Index-Tax-Fund-to-be-merged-into-Franklin-India-Index-Fund-NSE-Nifty-Plan

Franklin FMCG Fund & Franklin Pharma Fund to be merged into Franklin India Prima Plus

Franklin Templeton Mutual Fund has announced that Franklin FMCG Fund (FFF) and Franklin Pharma Fund (FPF) would be merged into Franklin India Prima Plus (FIPP) as on 9 September 2011. Consequently, from the date of merger i.e., effective 9 September 2011, the investors of FFF and FPF would become investors of FIPP in the respective plans / options.

In terms of prevailing regulatory requirements, investors in FFF and FPF are given an option to exit at the prevailing Net Asset Value without any exit load, in case they do not wish to approve the merger. The period of this no load exit offer is valid from 8 August 2011 to 9 September 2011.

Source: http://www.adityabirlamoney.com/news/496635/10/22,24/Mutual-Funds-Reports/Franklin-FMCG-Fund-Franklin-Pharma-Fund-to-be-merged-into-Franklin-India-Prima-Plus

U.S., Europe Crisis to Boost Flows to India, Reliance Asset Says

Sunil Singhania, head of equities at Reliance Capital Asset Management Ltd., India’s biggest money manager, comments on the outlook for the nation’s stocks. He spoke in an interview with Bloomberg UTV. Reliance Capital’s mutual fund unit manages $23 billion in assets.

Reliance Growth Fund, managed by Singhania, has risen 37 percent annually in the past 10 years, the most among active funds focused on Indian equities with a record going back a decade, according to data compiled by Bloomberg.

On U.S., Europe Debt Problems:

“If you spend more than what you earn for a prolonged period of time, there’s going to be a time when you have to bear the pain of it. That is what most of the countries in Europe, as well as the U.S., are undergoing. We feel the problem is not insurmountable. Though challenges would be there, it’s not something which is going to cause too much of a concern in the near term. The good thing is that the countries are realizing that they need to cut expenses.

‘‘If there’s going to be some catastrophe in Europe or the U.S. then in the near term all the global markets are going to get hit. Even now more than 85 percent of global equity money is invested in developed markets and only 15 percent is in emerging markets. The problems in Europe and the U.S. will probably hasten the move and make allocation from global guys a little more balanced. This would favor emerging countries, of which India would be an important part.”

On the outlook for interest rates:

“A few global gurus have been of the opinion that it makes sense to tighten up to sacrifice growth to some extent. At the same time, if too many shocks like this come then sentiment can take a beating. That is something which India cannot afford. Already we are seeing new project announcements being deferred. The predominant reason would be interest rates. India can’t afford its entrepreneurs becoming more careful in their expansion plans.”

The Reserve Bank of India has raised rates 11 times since the start of 2010, the most aggressive tightening among major economies in Asia.

On outlook for economic growth:

“There is no doubt in our mind that India is going to continuously keep growing on an annual basis. There will be periods where you might see growth slow. Too many shocks have come at the same time, which are leading to a perception and a view that probably if things don’t improve then the next two quarters can be really tough.

‘‘Hopefully by October-November we should again start to see some revival in activities, led by interest rates coming off to a certain extent, or at least peaking, and some policy decisions from the government that can kick-start the economy.

‘‘The market is discounting a lot of things, unless there are more shocks. The entrepreneurship spirit is alive. It is upon the government to ensure that it is kept alive and kicking.’’

Earnings reported by eight out of 19, or 42 percent, of Sensex companies have lagged behind analyst estimates for the quarter ended June. That compares with 33 percent that missed forecasts in the previous quarter, according to Bloomberg data.

On Holding Cash:

‘‘The reason why we have not taken a cash call is that we don’t feel there’s a strong reason for the market to correct significantly. There will be short-term movements. If things start to move a bit more positively, and as not too many people expect too much positiveness, the impact on the upside could be much larger than what it has been on the downside.

‘‘It took 60 years to become a $1 trillion-$1.5 trillion economy. Probably in the next 10 years we will be a $5 trillion to $6 trillion economy. Three times the wealth created in the last six decades is going to be created in the next 10 to 12 years. The direction is very clear.’’

Reliance has cut cash holdings in its biggest stock fund to 3.6 percent, the lowest level since at least the collapse of Lehman Brothers Holdings Inc. in September 2008.

On financial-services stocks:

‘‘Financials is one of the largest sectors in the economy. The combined size of the balance sheet will double in four to five years. Profit should also double in four to five years. Banks are now much stronger than what they were 10 to 15 years ago. The systems are very strong and we are an under-banked country. It is both a consumption and a growth theme.’’

Lenders and finance companies accounted for 20 percent of Reliance Growth Fund’s 70-billion rupee assets on June 30, data compiled by Bloomberg show.

On infrastructure stocks:

‘‘We’re positive on infrastructure, but too many headwinds have hit the sector at the same time. Land acquisitions and environmental clearances are issues, interest rates have shot up and equity raising has been difficult. If we intend to be a $6 trillion economy, we cannot just eat pizzas, see movies and hope to reach there. We need infrastructure and that is where the opportunity lies.’’

Source: http://www.bloomberg.com/news/2011-08-05/u-s-europe-crisis-to-boost-flows-to-india-reliance-asset-says.html

Just click away from joining most active Mutual Fund India google group

Google Groups
Subscribe to Mutual Fund india
Email:
Visit this group

Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)