Sundaram Capital Protection Oriented Fund Series 2 - 5 years

How it works for you

• Fixed deposits may offer principal protection, but returns are often so low they barely keep up with inflation. Equity investments have historically offered higher returns, but they can pose a greater risk to your capital. Capital protection orientated funds offer capital protection orientation and capital gain through a mix of debt and equity in the portfolio

• It is a Fund that aims for deposit plus returns (Generating more returns than a five year fixed deposit), without loosing sight of capital protection orientation.

• Capital Protection Orientation: Endeavours to preserve capital by investing sufficient funds (about 70%) in fixed income securities so that, with the interest, it grows back to your initial capital value over a 5-year period. These investments will be made only in the highest rated (AAA) papers and in Government securities. They will be held until their date of maturity so that even if interest rate drops in the next five years it won't affect the scheme’s objectives.

• Capital  Gain : Generates  capital  appreciation  by investing  a  part  of  the  funds  (about  30%)  in  equity. The  equity  portion will  be invested  primarily in  stocks forming part of the S&P CNX 500 Index. Consequently it will be a multi-cap equity portfolio with a mid- and small – cap emphasis.

• Highest CRISIL Rating: AAA(so) :This rating indicates the highest degree of certainty regarding timely payment of face value of the investment to investors.

• If you are new to equity investment this is an excellent avenue to participate in the equity market with the comfort of capital protection orientation – especially suitable for first-time investors and those with a conservative mindset.

Issue Opens on 15.02.2011;

Closes on          01.03.2011

Reliance Gold Savings Fund

Investment in Gold is never new to an Indian. Reliance Mutual Fund has announced a new NFO – Reliance Gold Savings Fund which is primarily an open ended fund and  will primarily invest in Reliance Gold Exchange Traded Fund.

The NFO Period is 14^th February to 28^th February 2011.

I recommend the fund for the following reasons

·         Gold is a less volatile asset. The performance  of gold has not only been strong, but it’s volatility has been low

·         Gold as an asset over centuries has maintained its value against inflation and considered a hedge against inflation

·         An Ideal Portfolio diversifier with very low/negative correlation with other asset classes

·         A Safe Haven Asset – During Uncertain times gold affirmed its position as an insurance for investment portfolios.

Gold Still looks attractive

·         Strong Investment demand in Major Consumption Nations – India & China

·         Fundamental weakness in US Dollar & Fear of Inflation

·         Central Banks Buying spur

·         Geopolitical Uncertainties

The Fund has a benefit of holding gold in a paper form with no need of a Demat account or storing the Gold with the Locker. The Gold which you hold in this fund will also not attract wealth tax.  Small investors can also invest in the fund through the SIP route.

The one drawback of the scheme is that being a Fund of Fund scheme the charges of the scheme would be higher. The cost of the normal ETF is around 1% in the scheme the total cost the investor will bear is capped to 1.5%. But it’s worthwhile given it’s advantages like liquidity, SIP route etc. 

Financial Planning

Financial Planning is the process of meeting your life goals through the proper management of your finances. It involves the process of assessing your financial situation, determining your objectives and formulating a plan to achieve them.

The objective of financial planning is to ensure that the right amount of money is available in your hands at the right point in the future to achieve an individual's life goals. It also allows you to understand how each financial decision you make affects other areas of your finances.

BIA Capital Advisors is a company promoted by Chartered Accountants having CFP Degree now offers Financial Planning Services.

Steps in Financial Planning involves:

• Write to us at biacapital.india@gmail.com and our Certified Financial Planner will contact you.
• Fill the Questionnaire sent by our Certified Financial Planner
• Plan Preparation by our Certified Financial Planner
• Discussion of the draft plan with the client
• Final Plan preparation after incorporating the changes to the draft plan
• Plan Implementation
• Periodic Review

Broad Areas in Financial Planning

• Cash Flow Management
• Insurance
• Asset Allocation
• Investment Planning
• Retirement Planning
• Taxation
• Estate Planning