I’ve had two questions on email recently about Dynamic bond funds. The concept of Dynamic bond funds needs an understanding that bonds are complicated, way more than stocks. A few things that make bonds different: a) Issuer creditworthiness: Is a government bond more likely to default, or a second rate corporate bond? Would a Reliance [...]

Posted in Credit Repair, MutualFunds Comments Off

Jago Investor is running an “action month” where they talk of “pure action”, you commit to taking certain action: buying a term plan, buying health insurance, starting an SIP, organizing your financial life, and surrendering useless policies. Manish will keep in touch and there are prizes from multiple sponsors, such as MProfit (a neat software [...]

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Fixed Maturity Plans are being touted as the new way to lock yourself into about 10% yields. But Sandeep Shanbhag mentions why the Direct Tax Code screws the FMP buyer. FMPs are locked in for a period, the biggest that are being sold now are 370 days or so. That is, you get in now, [...]

Posted in Credit Repair, FD, FixedIncome, MutualFunds Comments Off

FundsIndia posted in it’s twitter account, that Value Research suggested no-lock-ins for ELSS fund savings if you didn’t try to save tax: If you had not invested in the tax planning funds to save tax, the three-year lock-in does not apply which is mandatory for only those seeking tax deductions by investing in these funds. [...]

Posted in Credit Repair, MutualFunds Comments Off

According to ET, the SEBI Mutual Fund Panel has suggested a transaction charge of Rs. 100 per transaction instead of an entry load: The committee headed by Prashant Saran , member of the board at the markets regulator, last week nearly concluded that a Rs 100 transaction fee could be imposed on investors for every [...]

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At Yahoo, I write on entry loads and my distaste for them at Loaded in Disfavour. (Reproduced) "Bring back the entry load" seems to be the cry among distributors and advisors of mutual funds, as the new chairman of SEBI, U.K.Sinha, appoints committees to look into various aspects of the regulator’s functioning. Mr. Sinha was [...]

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At Yahoo, I write on entry loads and my distaste for them at Loaded in Disfavour. (Reproduced) "Bring back the entry load" seems to be the cry among distributors and advisors of mutual funds, as the new chairman of SEBI, U.K.Sinha, appoints…

Posted in Credit Repair, MutualFunds, Yahoo Comments Off

In the Monetary policy yesterday (see longer post) RBI has said that Banks can’t invest more than 10% of their net worth into liquid mutual funds. ET has some data: Banks’ investment in mutual funds aggregated Rs 1.11 lakh crore on April 6 against…

Posted in Banks, Credit Repair, MutualFunds Comments Off

Updated 25 April 2011: Given the popularity of the post I decided to redo the data until today and see how MIPs have fared. It seems that the data I had was off by a little bit (in terms of dividends, but the results don’t change too much). I’m reworki…

Posted in Credit Repair, FixedIncome, MutualFunds Comments Off

In an email, [Name withheld on request] asks: I was reading recently about rule change in March 2010 forbidding equity funds from paying dividends out of the unit premium reserve. My understanding is that dividend payments have come down after this…

Posted in Credit Repair, MutualFunds Comments Off