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September 26, 2011
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

With effect from 14th July 2011, Benchmark Asset Management Company Private Limited (BAMC) and Benchmark Trustee Company Private Limited (BTC) are a part of the Goldman Sachs group. Subsequent to this acquisition, all the schemes of Benchmark Mutual Fund will be renamed. Benchmark Mutual Fund has 13 schemes in operation currently.

The popular ETFs of Benchmark Fund - Gold Bees and Nifty Bees would be renamed as GS Gold Bees and GS Nifty Bees. Hence investors need not worry too much since change in the name of the schemes will not result in any change in the basic characteristics and fundamental attributes of the schemes.

The name changes of other schemes are available here. Also during trading hours one can get the live/real time NAV of Gold Bees and Nifty Bees here at  Goldman Sachs Mutual Fund.
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September 04, 2011
mas-e-gold
The buzz word now in Gold Market is E-Gold from National Spot Exchange. What's this E-Gold all about and how is this different from Gold ETFs, which are already traded in National Stock Exchange?

E-Gold is offered by National Spot Exchange Limited(NSEL) which enables you to buy gold in electronic form, and hold it in a Demat account.

Features of E-Gold:

1. You can buy and hold minimum of 1 gram of E-Gold in electronic form.

2. The commission and the transaction charges would be about 0.5%,same as you buy any other ETF from NSE.

3. E-Gold can be converted it into physical gold, which is known as re-materialization and there are charges for this re-materialization. The minimum quantity for converting into physical gold is fixed as 8 grams.

4.Rematerialization facility is currently available in 15 major cities and hence if you want to convert it to physical gold, check with your broker.

5. VAT: When you rematerialize you will have to pay some rematerialization charges (which will be in the range of Rs.150 for 8 grams), but the VAT might be a bigger amount based on how much quantity you hold.

6. The storage charges of holding gold in demat form is Rs.0.60 per unit/month.

7. The purity of e-gold is not approved by LBMA and there is no standard benchmark in domestic gold prices.

8.One can trade in gold ETFs only till 3.30 p.m., while e-gold can be traded till 11.30 p.m., providing the investors better opportunities and flexibility.

Apart from E-Gold, the other commodities available are E-Silver and E-Copper. Since no Silver ETFs are available currently, E-Silver is a better option, if anyone wants to invest in silver. And the minimum quantity is been fixed at 100 grams and the transaction charges are similar to E-Gold. You can get the live data from National Spot Exchange.

The idea behind both e-gold and gold ETFs is the same, which is relieving investors of the worry of storage and purity, making gold investment more efficient and convenient. Though E-Gold is a cost-effective for people who have a long investment horizon, investing in gold through ETFs would be more prudent for small investors.

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August 16, 2011
mas-successful-investing
Investing your money can be a great way to ensure your financial future. With the right investment choices, you can be sure to have money for emergencies, to put towards the education of your children, and to have available when the time comes for you to retire. There is a key word in the preceding phrase however- “right”. If you make the wrong investment choices, you may just end up where you started or worse than that.Most people who invest wisely by making the right decisions with their money, follow the same basic investment pattern, although they may define it by another name. The following are simple but valuable investing rules, which have withstood the test of time and by following these, one can be successful in their investing venture.

Allocation: First of all, make sure that the money you choose to invest is indeed earmarked for the purpose. Do not put up money that you cannot afford to lose,in case the market takes a downturn and remains in a bear market for a longer time.

Know the Basics: Believing that with a little understanding they can work the market themselves, they do not entrust another person with their money. This is incorrect. In the first place, most people will not be able to begin to unravel the complicated graphs, charts, and statistics by which the investment world relates its information.

In order to understand what the numbers mean, you will need to have some basic training. There may come a time after you have had some experience in the market that you will be able to make sound decisions on your own, but the initial get-your-feet-wet phase is not the time to attempt it.

Think long term: Unless you invest millions of dollars initially, it will take time for your investments to mature and begin to accumulate substantial gains. The best investments are proven over time, and thus it is best to place your funds in long term choices.

Diversification: A good portfolio will include cash and cash equivalents (Fixed Deposits), growth investments (Stocks), and growth and income investments such as Mutual Funds. Diversification ensures that you do not have all your eggs in one basket should any part of the market experience a downturn. Note that diversification means not only investing in several areas, but also making sure that no single avenue contains a disproportionate percentage of your funds.

Be a wise investor !

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August 01, 2011
nse-dowjones
S&P 500 and Dow Jones Industrial Average(DJIA ) indices are two of the world's most followed indices and are considered as the barometers of us markets. These indices have displayed historic resilience in holistically capturing the movements of the US markets. NSE is introducing rupee denominated future contracts on S&P 500 and DJIA indices. This is the first time in the world that futures contracts on S&P 500 index are being introduced and listed on an exchange outside USA.


S&P 500 is a free-float capitalization-weighted index 500 leading companies of the us economy and widely regarded as the best single gauge of the us equities market. Dow Jones Industrial Average (DJIA) is a price weighted index having 30 large and liquid blue chip stocks traded on U.S. exchanges.

Contract Details:

The contract size for the S&P 500 is 250 units and DJIA is 25 units, which approximately works out to 2.5 lakhs per contract. There are four quarterly expiry contracts in the mar-jun-sep-dec cycle and will be traded during Indian market time.

For whom?

Indian investors are currently permitted to invest in foreign assets subject to the limits stipulated by the Reserve Bank of India. Futures on S&P 500 and DJIA, currently being introduced by NSE shall enable traders desirous of taking exposures to us market to do so, without taking any foreign currency risk as they are rupee denominated contracts.

These contracts enable those invested in the us markets to hedge their equity exposure. Also, they can also be used as hedging tool by investors having a high exposure to stocks in sectors whose financial performance depends significantly on the prospect of the U.S. economy.

Other than the above mentioned investors/traders, market participants who can understand the dynamics of the U.S. markets can have directional views on the movement of the indices. As far as small investors  are concerned, this would be a avoid in the better interest of them.

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July 28, 2011
money management
6 Simple Tips for Better Money Management While Investing

Investing is always scary, especially for beginners. Investing during a global recession can be downright terrifying. That’s why using common sense is more important than ever.

In this article, we will share 6 easy tips for better money management for investors. Many of these hints are also recommended by CNN, Fortune, and Money.

1.Invest on a schedule.

Sticking to a schedule is good advice for many of life’s pursuits. Every month, put the same amount into a mutual fund. You will be able to keep track of your money better. Plus, this allows you to pick up more shares while they are cheap and fewer when they are expensive.

2.Take multiple investments.

Your mother probably told you not to put all your eggs in one basket, and she was right. Diversification cuts back your risk. Of course, you can never totally get rid of risk, but mixing up your portfolio helps.

Please don’t invest solely in company stock. If the company takes a dive, so does your retirement plan. Company stock should be only 10% of your portfolio, no matter how much faith you have in your business.

3.Buy foreign stocks.

This fits in nicely with the second tip on our list. Yes, the global recession has hit the entire planet, but buying overseas stocks is still a smart move. You should invest 20% of your money abroad, at the least.

4.Spend time with other investors.

It’s always smart to pick up advice from other players in the game. If you network with other investors, you can hear about new opportunities early through the grapevine. Even if you live in a remote area, you can join online investing forums, such as OnlineTradersForum.com.

5.Feed your 401k.

Place as much money as you can into your 401k. Your company might match it dollar to dollar, at least to a certain point. Or, they might match 50 cents on the dollar and a percentage of your salary. Either way, you’re getting free money to fund your future retirement.

And please don’t cash out when you leave your job. You’ll cough up a 10% penalty as well as income taxes. Plus, you’ll miss out on tax-free growth later.

6.Don’t make any investments you don’t understand!

It’s sad to think of how many people buy investments or take out credit cards without finding out any of the important details first.

Don’t allow a financial planner, broker, friend, or agent pressure you into buying an investment that doesn’t make sense to you. Ask them focused questions and take notes. If you just don’t get it, skip that investment.

This applies to just about anything, from credit cards to home mortgages. After all, a credit card is a financial investment also, so read the fine print. Do you know the APR?  Do you understand how the rewards program works? Good money management is all about staying informed.

Yes, many of the above tips are pretty obvious, but as French author Voltaire famously said, “Common sense is not so common.” Sometimes good investors make bad money management decisions because they’re pressured by other people, in a bad financial position, or just misinformed.

Thanks to Sierra Dawson for sharing some simple tips for better money management.  She says your common sense is one of the most powerful money management in your arsenal, so don’t underestimate it!

For more information better read Fisher Investments press to gather great advises on future investment.

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July 27, 2011
LTFinance
L&T Finance Holdings has come out with an IPO of via issue of equity shares of Rs. 10 each priced between Rs. 51 to Rs. 59 per share. The company is promoted by Larsen & Toubro Ltd, one of the leading bluechip companies in India, with wide range of interests in engineering, construction, electrical and electronics manufacturing and services, information technology and financial services. L&T Finance Holdings has a strong retail reach with more than 800 points-of-presence spread across 23 states.

The company is a subsidiary of L&T Limited, which holds 95% and it is the holding company for the following three businesses conducted via wholly-owned subsidiaries:

1. L&T Finance – retail and corporate finance lending.
2. L&T Infra – infrastructure financing.
3. L&T Investment Management with a mutual fund business.

Details of the issue:
Issue Size: Rs. 1,245.00 Crore.
Issue Open: Jul 27, 2011 - Jul 29, 2011.
Issue Price: Rs. 51 - Rs. 59 Per Equity Share.
Market Lot: 100 Shares, to be listed at BSE and NSE.
Rs. 120 crore of the issue size is reserved for L&T shareholders and they can apply through a separate application form.

Valuations:
The book value stands at about Rs.25 and at the upper band of Rs. 59 per share, shares are being offered at a price-to-book value (PBV) of 2.23 x times. The other listed companies in this space, like Shriram Transport Finance,IDFC,M&M Financial Services are currently trading at slightly higher valuations than L&TFH.

L&TFH owns close to a 5 per cent stake in Federal Bank and City Union Bank. It also owns L&T Mutual Fund which has an asset base of Rs 5,200 crore as of June 2011 and all these stakes could add further boost to the valuations.L&TFH is having diversified and high quality loan book, superior interest spreads and sustainable demand in various segments of presence. All these features make long term investors comfortable in investing in this IPO.

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July 08, 2011
mas make money
How to make money from stock market? You would find the answer once you understand and remove the myths about stock market investing. Like most different companies or industries, the stock market too has its share of legends and myths. These myths are responsible for some people maintaining a safe distance from the markets. By doing so they are losing the chance to get involved with shares and experience the industry. Here we try to dispel several of the myths about stock market investing.

Shares are dangerous : While shares tend to be risky if active trading is done, but if investing is done over the long-term they perform well. So if you‘re in the market for the long haul, don’t worry about short-term ups and downs. In addition keep away from purchasing shares on borrowed funds. Don’t take loans for investment and invest only the amount that is available to you.

Stock market is gambling : This myth is potentially the most damaging one. It is the cause of a lot of investors keeping afar from the market. There‘s a major discrepancy between the two. While gambling is a game of fortune, the market investing has a natural scientific base. There are different scientific techniques accessible to define if the stock is worth investing or not and there are no such things when it comes to gambling.

Only the rich can invest in stocks : Not really ! A lot of investors like Warren Buffet have become wealthy by investing in shares. Over a longer period, stocks have managed to beat inflation and make investors pretty wealthy. Make small investments by selecting fine companies with great basics and hold them for a long period to watch them grow.

Low-priced or Penny shares are safe : That is strictly not true, as the low price of a stock might mean that the company does not have a great fundamentals. The market reasons the basics over the long-term. So even if you may see such shares shooting up pretty fast in the short-term, over the long-term they are bound to settle lower. Use the fundamental analysis to decide whether to buy the stock or not.

Tips and calls are a sure shot way to earn money in the markets : No, that isn‘t true. Most tipsters tend to give tips meant for traders and not for investors. These tips don‘t work well for the investors. As an alternative, do your own research and then select the shares to invest.

The market analysts are always right : Not really ! It is not much of a use to sit and watch market analysts make their predictions about the stock price and make a decision based on these predictions. A lot of people tend to take these predictions pretty plainly. Well, if these analysts are right, then all of them would be wealthy, right? So take these analysts with a pinch of salt.

To conclude, don't let these myths to deter you when you’re planning to invest in shares. Invest in shares with a long term view to make money and to accumulate wealth.
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