Tata Mutual Fund launched Tata Indo-Global Infrastructure Fund, a close ended equity scheme with a maturity of 3 years. Upon completion of 3 years, the scheme will automatically be converted into an open-ended scheme.
The 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 other parts of the world.
The new fund will commence from September 3, 2007 and will close on October 16, 2007.
The fund will invest 65% – 85% in Equity and Equity related instruments of domestic companies, 15% – 35%, in Foreign Securities as permitted by SEBI/RBI and upto 35% in Debt and Money Market Instruments.
Slew of ETF(Exchange Traded Funds) for most precious commodity i.e Gold are being launched in the coming few months. BenchMark Funds, UTI, TATA Mutual Fund etc. all these fund houses are planning NFO launches for Gold Mutual Funds.
Primary objective for such funds would be to diversiy the investor’s portfolio, hedging in a relatively safe commodity and a novel instrument for investments in India.
Gold Exchange Traded Mutual Funds would be perhaps first ever to be launched in India.
Gold Mutual Funds are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that participation through the trading of a security on stock exchanges.
Gold ETF MF’s are designed to provide returns that, before expenses, closely correspond to the returns provided by physical Gold.
Each unit is approximately equal to the price of 1 gram of Gold.
Advantages of investing in Gold/ Gold MF’s :
GOLD • An Excellent Diversification for Portfolio.
• Global Asset Class.
• Hedge against Inflation.
• Low Volatility as compared to Equities.
• Store of value.
GOLD ETF MF’s. • Potentially cheaper to have price exposure to gold price as compared to other available avenues
• Quick and Convenient Dealing through Demat Account
• No Storage & Security Issues for investors
• Transparent Pricing
• Taxation of Mutual Fund
• Listed and traded on stock exchanges, just like a stock-Easy Buying/Selling
• Ideal for Retail Investor as minimum lot size to trade is one unit on secondary market.
• NAV of a Unit will track price of approximately 1 Gram of Gold.
Disadvantages of GOLD/ GOLD ETF MF’s:
• Though ETFs are popular abroad, it is still a new concept in India.
• Lack of expertise of Domestic Funds Managers on Gold Spot/Futures and Options prices.
Although India is one of the Largest consumer/importer of this Commodity in the world, there are very few options available for an investor in this amazing commodity purely from an investing perpestive.
This innovative product shall decide the future of other exiting product launches for a huge Gold market.
Overall view : Suscribe Time Horizon : 3 – 5 years.
Age Group profile: None.
Related Posts Only (manually created not automatically generated, thankfully)
TATA SIP FUND. It is a closed ended fund. FEATURES OF TATA SIP FUND ARE:
They are about to deploy the funds collected over a period of 3 years. Of this the AMC will deploy some proportion of it every month in equity markets. At the end of 3 yrs the entire portion of the equity shall be deployed.
2.75% each month will be invested in equity markets.
This funs seeks to benefit from Rupee Cost Averaging principle. Also the investor does not have to worry about. 1) Volatility in Markets. 2) Time to enter the Stock markets. 3) Issue of Post Dated Cheques. 4) Timely clearing of SIP instructions by the bank and AMC. 5) High costs involved in small amounts SIP insructions with all AMC’s.
Risks: The risks are that in case the market go in one direction i.e upwards the investor will not benefit much from this scheme.