Deutsche MF unveils 371 days fixed term fund

Deutsche Mutual Fund new issue closes on 30th August

Deutsche Mutual Fund has launched DWS Fixed Term Fund-Series 89 (DFTF-89), a close-ended income scheme.

The investment objective of the scheme is to generate income by investing in debt and money market instruments maturing on or before the date of the maturity of the scheme. The tenure of the scheme is 371 days.

The new issue closes on 30th August. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Index is the benchmark index. Kumaresh Ramkrishnan is the fund manager.


India strongest growth market for gold in second quarter of 2011

Domestic demand for the yellow metal in the second quarter of 2011 constituted 32% of global demand for gold (combined with jewellery and investments) and was at 248.30 tonnes

According to the latest World Gold Council report, India was the strongest growth market in the second quarter of 2011, with total consumer demand for gold rising 38% in tonnes compared to the second quarter of 2010. In value terms, demand for gold increased from Rs31,730 crore in the second quarter of 2010 to Rs53,800 crore in the second quarter of 2011—an increase of 70%. Indian gold demand in the second quarter of 2011 constituted 32% of global demand for gold (combined with jewellery and investments) and was at 248.30 tonnes.  

According to the Gold Demand Trends report released by the World Gold Council, jewellery demand surged to 139.80 tonnes, a 17.1% increase from Q2 2010 boosted by the festive season and the widespread expectation among Indian consumers about a further increase in the price of gold. In value terms, jewellery accounted for Rs30,290 crore in Q2 2011—an increase of 44% as compared to Q2 2010. Investment demand comprising demand for bars and coins as well as ETFs (exchange-traded funds) accounted for 108.50 tonnes in Q2 2011, a 78% increase on Q2 2010. In value terms investments totalled to Rs23,510 crore in Q2 2011, an increase of 119% as compared to Q2 2010.

While the fluctuations in gold prices in India has reduced to a great extent, this has in- turn reinforced the investment in gold and customers are now encouraged to make purchases in gold instead of deferring them for the future. According to Ajay Mitra, managing director, Middle East and India, World Gold Council, "The second quarter of 2011 has been excellent for investments in gold around the world, especially in India. With inflation reaching record numbers and there being extreme volatility in the equity markets, investments in gold continues to prove popular as investors look to diversify their portfolios and protect their wealth."

Gold's strong start to the year was reinforced during the second quarter of 2011 where total global gold demand measured 919.80 tonnes, worth a near-record $44.50bn, with broad-based support across all sectors and geographies. Standout markets were India and China, as these two markets accounted for 52% of total bar and coin investment and 55% of global jewellery demand. Marcus Grubb, Managing Director, Investment, World Gold Council, said in a statement: "The strength of demand in India and China, coupled with an overall drop in recycling activity this quarter, demonstrates that consumers have adjusted to the current price environment and expect the upward price trend to continue. In addition, ongoing macroeconomic uncertainty, the continued sovereign debt crisis and widespread inflationary pressures, will result in gold demand remaining strong."

Global gold demand in the second half of 2011 will remain strong due to a number of key factors—despite higher gold prices, Indian and Chinese demand grew 38% and 25% respectively, during Q2 2011, compared to the same period of 2010. This growth is likely to continue, due to increasing levels of economic prosperity, high levels of inflation and forthcoming key gold purchasing festivals. The impact of the European sovereign debt crisis, the downgrading of US debt, inflationary pressures and the still-fragile outlook for economic growth in the West are all likely to drive high levels of investment demand for the foreseeable future. Central banks are likely to remain net purchasers of gold. Purchases of 69.40 tonnes during Q2 2011 demonstrated that central banks are continuing to turn to gold to diversify their reserves.


Hope govt policy, monsoon will ease inflationary pressure: FM

"I hope the monetary policy adopted by the Reserve Bank of India, along with various measures taken by the (finance) ministry, will have a moderating influence on the inflationary front," finance minister Pranab Mukherjee said

New Delhi: Terming the over 9% food inflation as 'not acceptable', finance minister Pranab Mukherjee today expressed hope that government policies and a good monsoon will help ease pressure on price front, reports PTI.

"... Food inflation at the level of 9% is not acceptable. I do hope the measures taken to remove supply constraints in some of the agricultural commodities and good monsoon will help to have further moderating influence on the prices of food and other essential commodities," he told reporters here.

His comments came after food inflation fell to 9.03% for the week ended 6th August from 9.90% in the previous week, even though prices of all items, barring pulses, continued to rise on an annual basis.

He said despite food inflation falling from around 22% in February 2010, it still remains high.

Mr Mukherjee said the international situation was not conducive, especially with regard to high commodity prices.

"International situation is not very favourable.

Commodity prices are high, including of fuel. Therefore, the prices of industrial raw material, other commodities and fuels are uncertain," he said.

He said the government is trying to ensure that the rate of inflation moderates.

"I hope the monetary policy adopted by the Reserve Bank of India (RBI), along with various measures taken by the (finance) ministry...

It will be possible to have a moderating influence on the inflationary front," Mr Mukherjee said.

The government has taken various steps to curb the rate of price rise in food items, including a reduction of import duties on wheat, rice and pulses, a ban on the export of non-basmati rice and the suspension of futures trading in rice, urad and tur dal.
In addition, the government has extended the stock limit orders for pulses, paddy and rice and reduced import duty on skimmed milk powder, among other measures.

The RBI has hiked interest rates 11 times since March 2010, to curb inflation. Headline inflation has been above the 9% mark since December last year and stood at 9.22% in July this year.

The fall in food inflation numbers could be attributed to a moderation in the rate of price rise of some of the items on a week-on-week basis, even though they continued to be more expensive on an annual basis.

The decline could also be attributed to the high inflation figure of over 14% for the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance.

As per data released by government today, price of pulses became cheaper by 5.63% year-on-year during the week under review. However, all other items continued to remain expensive.

Overall, primary articles recorded 11.64% inflation for the week ended 6th August, down from 12.22% in the previous week.

However, inflation in non-food articles, which include fibres, oil seeds and minerals, went up to 16.07% from 15.05% in the previous week.

Meanwhile, fuel and power inflation stood at 13.13% for the week ended 6th August, up from 12.19% in the week ended 30th July.


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