The SIP is the oldest and most widely used weapon against market volatility in the small investor's armory. "By investing in random time slots, the investor is able to get a good average price," says Srikanth Meenakshi, director at Fundsindia.com. In the past few years, fund houses have fine-tuned the SIP mode of investment and made it more sophisticated. You can now invest in weekly, even daily, SIPs. You can tweak the investment amount or even choose the index level at which you want to invest. Let us look at the various innovations in the SIP and how you can use them to your advantage in today's volatile markets.
One of the biggest innovations in the SIP, this allows the investor to change the SIP amount depending on the market level. However, only a few mutual fund houses, such as Reliance Mutual Fund, HDFC Mutual Fund and ICICI Prudential, offer the option of flexible SIPs and STPs.
News Source – ECONOMIC TIMES.
A value investment plan (VIP) is a new investment option launched by a few mutual funds. This concept may gain popularity in the times to come. A VIP is supposed to be a better form of the SIP (systematic investment plan). A VIP too follows the averaging concept. This investments strategy also works on monthly contributions. The differentiating point is the approach to the amount of each monthly contribution as compared to a SIP.
News Source – ECONOMIC TIMES.
NEW FUND OFFER
Baroda Pioneer Mutual Fund has filed offer document with Sebi to launch Baroda Pioneer Gold Fund, an open ended fund of funds scheme. The New Fund Offer price is Rs 10 per unit. The investment objective of the Scheme is to seek to generate returns by investing in Gold Exchange Traded Funds.
News Source – NAV INDIA
Taurus Mutual Fund has announced dividend under Taurus Dynamic Income Fund (open ended income scheme), on the face value of Rs 10 per unit. The quantum of dividend for declaration will be Rs 0.225 per unit. The record date for dividend distribution is 9th September 2011.
News Source – MUTUAL FUND INDIA
According to a report by Morningstar, domestic mutual funds made a net investment of Rs 2,524 crore in equities in August 2011, the highest in over three years. However, domestic equity funds saw the worst monthly return performance since January 2011. Among sector funds, banking and technology funds were the worst performers with these categories falling more than 12 per cent during the month. Of the mid- and small-cap equity funds, about a quarter of them underperformed the category benchmark index. These funds, which are benchmarked to the CNX Midcap index, saw a sharp decline in August.
News Source – BUSINESS LINE
NEW FUND LAUNCH
Morgan Stanley Mutual Fund today launched an open-ended liquid scheme, which is similar to short-term deposits and is considered to be low risk investment. The objective of Morgan Stanley Liquid Fund is to generate returns, with low risk and high liquidity through a portfolio of money market and short-term debt securities with residual maturity of up to 91 days.
"The launch of our liquid fund will give us the platform required to access the institutional client segment, which is a core long term focus for us," Morgan Stanley MF CEO Anthony Heredia said in the statement.
The new scheme opens tomorrow and closes on September 7 and has a minimum investment option of Rs 1,000. The scheme would be managed by the firm's head of fixed income Ritesh Jain, the firm said.
News Source – ECONOMIC TIMES