Daiwa Industry Leaders Fund: For moderate risk takers

Fri, Jan 25, 2013 at 16:11

Daiwa Industry Leaders Fund delivered consistent performance since inception and is suitable for investors with moderate risk profile, reckons Arnav Pandya.

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Daiwa Industry Leaders Fund: For moderate risk takers

Daiwa Industry Leaders Fund delivered consistent performance since inception and is suitable for investors with moderate risk profile, reckons Arnav Pandya.

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Daiwa Industry Leaders Fund: For moderate risk takers

Daiwa Industry Leaders Fund delivered consistent performance since inception and is suitable for investors with moderate risk profile, reckons Arnav Pandya.

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ABOUT THE EXPERT

Arnav Pandya

Financial advisor and Writer,

Arnav Pandya is a writer, consultant and investor. He is a Chartered Accountant and holds the Certified Financial Planner(CM) Certification. He is a MBA from IIM Bangalore and an Executive Scholar from the Kellogg School of Management USA.  His area of specialisation is personal finance with an experience of over 10 years in this field. His articles have appeared in leading publications in India and he is also a regular speaker at various seminars and events across the world. He can be reached at arnavpandya@hotmail.com

Daiwa Industry Leaders Fund is an open ended equity fund with an investment objective to generate income and long-term capital appreciation by investing in a diversified portfolio of predominantly equity and equity-related securities of companies identified as industry leaders. Since its inception this fund has delivered consistent performance and is suitable for investors with moderate risk profile, reckons Arnav Pandya.

Nature: Equity oriented Large cap open ended

Inception: September 2009

Assets under Management: Rs 27 crore at the end of November 2012

Fund Manager: David Pezarkar

Analysis

• This is a large cap focused fund and the fund had the highest exposure to Banks at the end of November 2010. Software, Industrial capital goods and Pharma were some of the other sectors with a high exposure. The fund had a high portfolio ratio of 2.09 and the top holdings were Reliance Industries, ICICI Bank, Infosys, L&T, TCS and SBI. The BSE 100 was the benchmark index for the fund and it was outperforming the benchmark for the one year time period.
• Six months later, Banks remained at the top of the sector list with a 16 per cent share followed by Software, Consumer non-durables and Finance. The portfolio turnover ratio was down to 1.5 times and around 6 per cent of it was in cash and cash equivalents. ICICI Bank was the top individual holding and along with Reliance Industries just had over 5 per cent of the portfolio. Other top holdings were Infosys, ITC, L&T, HDFC Bank and HDFC. The fund remained an outperformer over the one year time period.
• At the end of November 2011, Banks remained the top sector with its holdings comprising over 15 per cent of the portfolio. Software, Consumer non-durables, Auto and Pharma were the other main sectors.  Infosys was now the top individual stock with a 6 per cent share followed by ITC, Reliance Industries, HDFC Bank, HDFC, TCS and ICICI Bank.  The fund had a portfolio turnover ratio of around 1.5 times and it remained an outperformer over the one and two year time periods.
• Six months later Banks were still the top sector in the fund but not far behind were Consumer non-durables and Software both with around 12 per cent of the portfolio. Pharma and finance were two other sectors with a significant exposure. The top five holdings in the fund were between 5-6 per cent of the portfolio with ITC at the top followed by ICICI Bank, Infosys, HDFC Bank and SBI.  The fund remained an outperformer over the one and two year time periods.
• There was a higher share of banks in the portfolio at the end of November 2012 as this had climbed to nearly 20 per cent of the portfolio. Finance, Software and Consumer non durables were other sectors that had a similar kind of exposure of around 10 per cent each. The portfolio turnover ratio remained steady at around 1.7 times but the top individual holding ICICI Bank crossed the 7 per cent mark. Other top holdings consisted of ITC, HDFC Bank, Infosys, HDFC,TCS,  Tata Motors and L&T. The fund was an outperformer over the one and three year time periods ended September 2012.
• This fund is suitable for investors who are able to take moderate risks and who want a predominant exposure to large cap stocks with consistency in performance.

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Sensex ends 180 pts up; Maruti wows street, midcaps excel

16:12

Equity benchmarks made a remarkable recovery on Friday on short covering, the markets closed near day's high. The Sensex closed up 179.75 points or 0.90% at 20103.53, and the Nifty ended the day 55.30 points or 0.92% up at 6074.65. After the carnage yesterday, the midcap rebounded today with nearly 2 percent gains. Yen was in focus after it hit a two-and-half year low of 90.69. 
Maruti Suzuki remained most active stock on the bourses clocking a gain of 4 percent gains. After six consecutive quarters of decline, Maruti moved in the fast lane by posting stellar numbers in the third quarter.

The two stocks which were hammered in yesterday's trade, IVRCL, HDIL, Suzlon too staged a good comeback.

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Britain's economy shrinks anew, flirts with "triple dip"

By David Milliken and Olesya Dmitracova

LONDON (Reuters) - Britain's economy shrank more than expected at the end of 2012 with a North Sea oil production slump, lower factory output and a hangover from London' Olympics pushing it perilously close to a "triple-dip" recession.

The country's gross domestic product fell 0.3 percent in the fourth quarter, the Office for National Statistics said on Friday, a sharper fall than the 0.1 percent decline forecast by analysts.

The news is a blow for Britain's Conservative-led government, which a day earlier defended its austerity programme against criticism from the International Monetary Fund. It needs solid growth to meet its budget targets, keep a triple-A debt rating and bolster its chances of winning a 2015 election.

Sterling fell to its lowest in 13-1/2 months against the euro and hit a five-month low against the dollar in response to the data. The euro was also buoyed by a stronger-than-expected German Ifo sentiment survey.

"This is a very disappointing outturn," said Philip Shaw, economist at Investec in London. "Clearly now the talk will focus on whether we are in a triple dip recession. Certainly the news is unwanted."

Britain's economy is now 3.3 percent smaller than its peak in Q1 2008, having recovered only about half the output lost during the financial crisis - a worse performance than most other major economies.

The country slipped back into recession in the last three months of 2011, and only emerged from it in the third quarter of 2012, after a boost from the London Olympics.

After a bout of inclement snowy weather in January - which is likely to have hit spending and output - the risk is that the economy will continue to shrink in the first three months of this year, technically pushing it into a rare and unwelcome "triple dip" recession.

Britain's biggest department store group, John Lewis, said earlier on Friday that snow was responsible for its sales growth stalling in the latest week.

POLITICALLY INCENDIARY

In economic terms, the picture remains one of stagnation over the past year. But politically, the latest dip in national output is more incendiary.

"Stagnation is going to be the theme for the next couple of quarters or so. This obviously brings Osborne's strategy into sharp relief and also the (Bank of England) strategy of maintaining or not sanctioning further monetary policy action," said Rob Wood at Berenberg Bank. "The Bank of England were forecasting a return to some growth in Q1 and that is likely to be disappointed."

Finance minister George Osborne stuck fast to his austerity plan on Thursday, rejecting suggestions from the International Monetary Fund's chief economist that he should consider slowing his deficit reduction plan.

Prime Minister David Cameron this week staked his political future on offering a referendum on Britain's place in the European Union. But it is Osborne's gamble that austerity will deliver strong growth before a 2015 election that will be crucial in determining his Conservative party's chance of winning.

After the figures were released, the Treasury conceded that Britain still faced a "very difficult economic situation".

"While the economy is healing, it is still a difficult road," it said in a statement.

Britain's chief central banker Mervyn King expects no more than a "gentle recovery" this year, while this week the IMF cut its 2013 forecast for British economic growth to 1.0 percent from 1.1 percent predicted in October.

However, economists and business groups warn that even such lacklustre growth could be derailed by a hit to firms' and consumers' confidence from talk of a triple-dip recession.

That prospect will add to pressure on the ruling coalition of Conservatives and Liberal Democrats to loosen its deficit-cutting drive and bolster the economy as George Osborne prepares his 2013 budget, due in March.

The biggest driver for the fourth-quarter fall in GDP was a 10.2 percent drop in mining and quarrying output, the biggest since records began in 1997, driven by disruption from extended maintenance affecting North Sea oil and gas fields.

This knocked 0.18 percent off GDP, while slightly smaller amounts of damage were done by falls in factory output and in the 'government and other services' category, where the Olympics had boosted sports and recreation services in the third quarter.

Friday's figures showed output in the service sector -- which makes up more than three quarters of GDP -- was flat in the fourth quarter. Industrial output was 1.8 percent lower.

(Reporting by David Milliken and Olesya Dmitracova, writing by Mike Peacock. Editing by Jeremy Gaunt.)

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Mirae Asset Ultra Short Term Bond Fund declares dividend

Fri, Jan 25, 2013 at 16:18

Mirae Asset Mutual Fund has declared dividend under -quarterly dividend option of Mirae Asset Ultra Short Term Bond Fund - Institutional plan.

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Mirae Asset Mutual Fund has declared dividend under -quarterly dividend option of Mirae Asset Ultra Short Term Bond Fund - Institutional plan, the record date for which has been fixed on January 30, 2013. The quantum of dividend will be entire distributable surplus on the face value of Rs 1000 per unit.

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Mutual Funds: Do dividends matter?

Mutual funds (MFs) have begun the New Year on a high note with plans to pay dividends to their investors in equity funds.

In an interview to CNBC-TV18, Harsh Roongta, apnapaisa.com shared his reading and outlook on dividends paid by mutual funds. He said, dividends paid by MFs and by a company are different. The money received by MFs is actually your own money because the exact amount given as dividend will be reduced from the net asset value (NAV).

What is the Mutual Fund Direct NAV all about?

"So, dividend as a reason to increase your exposure to equity funds I do not think is the correct reason", he added.

Below is the edited transcript of his interview on CNBC-TV18

Q: Should investors increase their exposure to equity funds because mutual funds plan to pay dividends to their investors in equity funds?

A: Dividend from a mutual fund is a completely different kettle of fish from a dividend in a company. Dividend in a mutual fund is your own money coming back to you. The exact amount of dividend that is declared will be reduced from the Net Asset Value (NAV), so effectively your net wealth does not change.

Unlike a company, where the company declares dividend there is a certain inherent consistency that it is promising to the market that they will be able to maintain that dividend payout ratio. That clearly is not something that is applicable to mutual funds. So, dividend as a reason to increase your exposure to equity funds I do not think is the correct reason.

There are on the other hand funds that specialize in high dividend yielding companies, which have done quite well.You can increase exposure to those funds if you think that dividend yielding companies are a good investment and you do not want the trouble of finding them out individually. Then you can have a portfolio manager or a mutual fund manager who will invest that on your behalf.

Q: Can you explain the concept of equity and derivative fund, and is it suitable for conservative investors?

A: Derivative fund is essentially what is colloquially referred to as an arbitrage fund. What they essentially do is that you buy in cash. The simplest strategy they employs is that it buys in the cash market and sells in the Futures market. The difference between the two is actually an interest. Although they are buying and selling equity in the Future, the difference is interest. Essentially, you are actually getting interest from buying and selling equity and therefore the arbitrage funds are comparable to a liquid fund or an ultra short-term fund.

If you look at the category returns there clearly they have done slightly better than the ultra short-term fund but definitely better than the liquid fund. There are certain tax advantages that the arbitrage funds have simply because the securities that they invest in are equities.

However, one must realize that arbitrage funds might have higher exit loads as compared to a liquid fund or even as compared to an ultra short-term fund. So, you have to weigh the two. The tax advantages if at all you have it vis-à-vis the extra exit load. So if your period of holding is likely to be higher and you are likely to enjoy tax advantage then possibly an arbitrage fund is probably a better investment than an ultra short-term fund.

Q: If I do direct access to any of these arbitrage funds will I be rid of the exit load?

A: The exit load is not connected to this direct plan issue that you are raising. That will be applicable whether you apply in the direct plan or whether you have applied through a distributor.

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Triveni Engg fixes book closure for dividend AGM

Thu, Jan 24, 2013 at 16:15

The Register of Members & Share Transfer Books of Triveni Engineering & Industries will remain closed from February 14, 2013 to February 19, 2013 (both days inclusive) for the purpose of Payment of Dividend & 77th Annual General Meeting (AGM) to be held on February 19, 2013. The Dividend shall be paid by March 01, 2013.

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Triveni Engg fixes book closure for dividend & AGM

The Register of Members & Share Transfer Books of Triveni Engineering & Industries will remain closed from February 14, 2013 to February 19, 2013 (both days inclusive) for the purpose of Payment of Dividend & 77th Annual General Meeting (AGM) to be held on February 19, 2013. The Dividend shall be paid by March 01, 2013.

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Triveni Engg fixes book closure for dividend & AGM

The Register of Members & Share Transfer Books of Triveni Engineering & Industries will remain closed from February 14, 2013 to February 19, 2013 (both days inclusive) for the purpose of Payment of Dividend & 77th Annual General Meeting (AGM) to be held on February 19, 2013. The Dividend shall be paid by March 01, 2013.

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Triveni Engineering & Industries Ltd has informed BSE that the Register of Members & Share Transfer Books of the Company will remain closed from February 14, 2013 to February 19, 2013 (both days inclusive) for the purpose of Payment of Dividend & 77th Annual General Meeting (AGM) of the Company to be held on February 19, 2013.The Dividend shall be paid by March 01, 2013.Source : BSE

Read all announcements in Triveni Engg

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MCX GOLDM March contract declines

GOLDM prices on MCX declined. At 16:09 hrs MCX GOLDM February contract was trading at Rs 30593 down Rs 89, or 0.29%. The GOLDM rate touched an intraday high of Rs 30693 and an intraday low of Rs 30573. So far 23580 contracts have been traded. GOLDM prices have moved down Rs 674, or 2.16% in the February series so far.

At 16:09 hrs MCX GOLDM March contract was trading at Rs 30897 down Rs 120, or 0.39%. The GOLDM rate touched an intraday high of Rs 31040 and an intraday low of Rs 30876. So far 5989 contracts have been traded. GOLDM prices have moved down Rs 564, or 1.79% in the March series so far.

At 16:09 hrs MCX GOLDM April contract was trading at Rs 31163 down Rs 126, or 0.40%. The GOLDM rate touched an intraday high of Rs 31325 and an intraday low of Rs 31149. So far 1837 contracts have been traded. GOLDM prices have moved down Rs 337, or 1.07% in the April series so far.

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MCX SILVERM February contract slips

SILVERM prices on MCX slipped. At 16:11 hrs MCX SILVERM February contract was trading at Rs 59246 down Rs 627, or 1.05%. The SILVERM rate touched an intraday high of Rs 59800 and an intraday low of Rs 59155. So far 40038 contracts have been traded. SILVERM prices have moved up Rs 3756, or 6.77% in the February series so far.

At 16:11 hrs MCX SILVERM April contract was trading at Rs 60602 down Rs 607, or 0.99%. The SILVERM rate touched an intraday high of Rs 61100 and an intraday low of Rs 60531. So far 2164 contracts have been traded. SILVERM prices have moved down Rs 3477, or 5.43% in the April series so far.

At 16:00 hrs MCX SILVERM June contract was trading at Rs 61826 down Rs 636, or 1.02%. The SILVERM rate touched an intraday high of Rs 62770 and an intraday low of Rs 61826. So far 117 contracts have been traded. SILVERM prices have moved down Rs 4459, or 6.73% in the June series so far.

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Cultural heritage, army grandeur in store for R-Day parade

Wed, Jan 23, 2013 at 16:06

Cultural heritage, army grandeur in store for R-Day parade

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Cultural heritage, army grandeur in store for R-Day parade

Cultural heritage, army grandeur in store for R-Day parade

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Cultural heritage, army grandeur in store for R-Day parade

Cultural heritage, army grandeur in store for R-Day parade

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New Delhi, Jan 23 (PTI) Breath-taking manoeuvres of Sukhoi, colourful display of India's cultural heritage and march past by armed forces today gave a preview of what is in store for this year's Republic Day parade. But the full dress rehearsal also resulted in traffic jams in several parts. A large crowd gathered on the Rajpath to view the rehearsal when military and police forces marched down from Raisina Hills and headed to Red Fort. There were restrictions on vehicular movement and this led to traffic jams in south and east Delhi localities. Along with modern weaponry systems, contingents from armed forces, paramilitary forces and NCC cadets marched to the beat of the bands preceding them in perfect unison. The grand show on Rajpath also consisted of various tableaux from different states and ministries. School children also displayed various dance forms and entertained the audience. The spectacle began with four army helicopters flying above Rajpath carrying the national flag and the three flags of the Army, Navy and Air Force. The country showed its military strength with the MBT Arjun Tank, Armoured Ambulance Tracked Vehicle, BrahMos missiles and 214 mm Pinaka rockets, 15 Metre Sarvatra Bridging System. The Radio Trunk System was also part of the parade under the command of lady officer Ankita Darve of the 24 Infantry. Defence Research and Development Organisation (DRDO) displayed Agni V missile which draw much curiosity amongst audience along with an Armoured Amphibious Dozer and tableaux displaying the working of Airborne Early Warning and Control System (AWACS) and the use of Naval Sonar in Anti Submarine Warfare. Contingent of the security personnel and band mounted on beautifully decorated Camels attracted much fan fare among the spectators. This was followed by 19 tableaux from various states and ministries. The first tableau to roll out was that of West Bengal which pays tributes to the "ethereal thinker- patriot-saint" Swami Vivekananda, whose 150th birth anniversary will be celebrated this year. The high point was the Cinema Mayur Pankhi celebrating 100 years of Indian cinema, making of Kashmir's famed pashmina shawls and Noori, the first cloned goat, 'Braj ki Holi' by Uttar Pradesh, the Kinnal craft of Karnataka, and others. Mind-bogling stunts by a group of Tornado bikers under Major SS Rathore forced the parade watchers to rise on their feet as 135 officers drove by on bikes. This was followed by stuntsmen in double ladder, human pyramid, bouquet and Chakra formations as the crowds watched in amazement. After all this spectacular display, a breathtaking display of air manoeuvres and complex formations by Air Force jets set the pulses racing. All these aircraft had took off different Air Force bases like Hindaun, Bikaner, Jaisalmer and Jodhpur to come together on the skies of New Delhi. Large army planes like C-130 Hercules and IL-78MK refuelling tanker aircraft to modern fighter jets such as Jaguars and Sukhoi 30 MKI took part in the fly past. Five Jaguars which came from Bikaner flew in the arrow head formation. Three Sukhoi 30 MKI aircraft flying at a very high speed formed 'Trishul' on the clear skies of Rajpath. But the icing on the cake was, when a single Sukhoi 30 MKI flying did a vertical hammerhead i.e. the aircraft went straight up and disappeared into the sky leaving a loud thunder and a cheering crowd on the ground spellbound. PTI TAQ SJY SJT RCJ

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Sold 1% equity on Tuesday to fund land buy: HDIL's Wadhawan

The shares of Housing Development & Infrastructure ( HDIL ) cracked as much as 15.8 percent on Wednesday after vice chairman and managing director Sarang Wadhawan offloaded partial stake in the company. He sold 5 million shares worth 570 million rupees in secondary markets on Tuesday, reducing his stake to 0.99 percent from 2.19 percent.

"We are aiming at debt reduction; this move was primarily to fund the land acquisition we had entered into about a year back," Wadhwan explained to CNBC-TV18. No details were shared about this land purchase but the company expects this acquisition to add substantial value.

HDIL's debt currently stands at Rs 4000 crore, but the company is confident of reducing it significantly in quarters ahead.

"The debt is already coming down. We have started receiving approvals from various authorities, the funds which were tied up with other developers who we had sold the Floor Space Index (FSI) too have started coming in," he added.

Below is the edited transcript of Sarang Wadhawan's interview with CNBC-TV18.

Q: What is the reason behind the huge crack that we are seeing in the stock price today?

A: Yesterday a sell of almost 5 million shares had taken place under my own name. This was primarily so that the promoters can fund an acquisition which the company had entered into about a year back. This was one of the payment tranches which was due.

Since the company is on the mode of debt reduction over the last six months the promoters thought fit that we should fund the company to make sure that the land acquisition goes through. It is an opportunity which has presented itself over the last year. We assured that over the next quarter we will be disclosing the entire details of this acquisition.

Q: How much of the total promoter holding has been sold?

A: 1 percent has been sold.

Q: Have you sold anything in today's trade?

A: No, nothing whatsoever. This was primarily only to support HDIL, so that HDIL can go ahead and close out the acquisition which it had envisaged for the next quarter. The opportunity presented itself over the last year and the promoters have stood by the company as always.

Q: What about the debt situation? It currently stands at Rs 4,000 crore or so. Are there any plans to pare off the debt?

A: The debt is already coming down. We have started receiving approvals from various authorities, the funds which were tied up with other developers who we had sold the Floor Space Index (FSI) too have started coming in. I am sure this quarter end you will see that debt figure will be substantially reduced.

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