Sunday, October 9, 2011


Now, let us analyses whether this Fund is indeed capable of Building Wealth.

For Starters, note this fund isa Monthly Income Plan with the tweak being that the Fund is ready to invest upto 30% in Equities unlike other MIPs who restrict the same to about 10-15%.

N Sivaraman, president and whole-time director at L&T Finance Holdings, said, “In this present challenging environment, where the risk of rising interest rates has increased and global markets seem to be volatile, we believe that the product could offer risk-adjusted returns and can serve as an alternative under fixed-income products.”

The fund expects short-term rates to remain stable going forward as bank certificate of deposits issuances may not be high as in the previous financial year. Interest rates are not expected to remain high on a sustained basis, therefore, investment at the present levels may provide opportunities when the cycle reverses.

On fund allocation towards equitie, the Fund Manager Sanjay Gupta said, “Indian growth seems to be relatively strong in relation to the global and developed market growth. At present, the Indian economy is most likely to be at the end of a rate tightening cycle, which may be a favourable environment to invest in equities.”

Benign commodity prices and cooling of oil prices internationally may boost the Indian economy,

tHE fUND IS Nothing but actually a Debt Oriented Mutual Fund with a exposure to Equities to provide additional “return kicker”.
Conservative Investors looking for a bit extra return the traditional Fixed Deposits can look at the fund.

If youÂ’re looking for ultra risk-free return, this is not it.

Limit your time horizon of investment to about 2 years and take a Fresh Call at that time.

Who should Invest in MIP’s ?

1. Investors looking for regular Income
2. Conservative investors looking for better returns
3. Investors who want to park a big sum of money with a 2 year time frame….

My suggestion :
1. Choose dividend option

Investors are requested to note that with Fund onwards, “Transaction Charge” could be collected depending on the choice of your Distributor.
So, get clear picture from your Advisor/Distributor whether your investment will be subject to this Transaction Charge.

I am NOT Opting OUT of the Transaction Charge, (that is, I am NOT chargingÂ….as I am a Advisor and not a Agent)….  

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