Investors in mutual funds will be able to make flexible systematic investment plan payments for their monthly investments
Online financial services provider FundsIndia.com has launched Flexi-SIP. Using this service, investors in mutual funds will be able to make flexible systematic investment plan (SIP) payments for their monthly investments.
With Flexi-SIP, an investor can choose a mutual fund scheme, a regular investment amount, and a monthly investment date like for any other SIP. However, the investor will also choose a maximum investment amount. The ECS mandate will be issued for this maximum amount. This amount can be as high as 10 times the regular investment amount.
After this, every month, the investor will have the flexibility to set the amount for the next SIP installment. This can be any amount between the minimum required for that scheme and the maximum set by the investor. This chosen amount will be the amount that gets debited for that installment from the investor's bank account and invested in the SIP scheme.
"It is, however, not absolutely necessary for the investor to set this value every month," said Srikanth Meenakshi, director, FundsIndia.com, "If they do not do anything, the regular amount will be invested like any other SIP. So, the investor get both the benefit of hands-off investment of SIP as well as the flexibility to change the value if they so desire."
Flexi-SIP will be available across all schemes that accept SIP from the 33 mutual fund companies carried by the FundsIndia.com, the online platform.
World oil prices stayed above $100 a barrel in Asian trade today on fears the escalating turmoil in Egypt will disrupt supply flows through the strategic Suez Canal
New Delhi: With global crude oil prices crossing the $100 per barrel mark, the losses state-owned fuel marketing companies incur on selling diesel below cost has reached a record Rs9.23 per litre, reports PTI.
Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) sell diesel, domestic LPG and kerosene below cost, as the prices are controlled by the government.
"The three retailers, who calculate the desired retail price on 1st and 16th of every month based on the average international price in the previous fortnight, were losing Rs6.80 per litre on diesel till last week. But this month, the losses have climbed to Rs9.23 a litre," an industry official said.
World oil prices stayed above $100 a barrel in Asian trade today on fears the escalating turmoil in Egypt will disrupt supply flows through the strategic Suez Canal.
Based on the average price of imported crude in the second fortnight of January, the three firms are losing Rs345 crore in revenue every day on selling diesel, domestic LPG and kerosene below cost.
"For the full fiscal, the three are projected to lose Rs75,507 crore in revenues at current prices," the official said. Besides diesel, IOC, BPCL and HPCL are losing Rs21.60 per litre of kerosene and Rs356.07 per 14.2-kg LPG cylinder.
In addition, they suffer a loss of about Rs2.50 per litre on petrol sales, even though prices were freed from government control in June last year.
If prices are not hiked, the government will have to come up with other ways to compensate the oil marketing companies for their losses.
The oil ministry wants the finance ministry to compensate the oil companies in cash for at least half of their under-recoveries by making adequate provisions in the Budget. Upstream oil firms like Oil and Natural Gas Corporation (ONGC) will shoulder one-third of the burden.
For the first nine months, the finance ministry has approved the release of a cash compensation of Rs21,000 crore to the three state-run fuel retailers.
The Indian manufacturing sector expanded month-on-month in January, according to the HSBC Markit Purchasing Managers’ Index. And yet, the Sensex and the Nifty are down 12% in January. Are investors overreacting to fears of interest rate hikes and a possible slowdown?
The HSBC Markit Purchasing Managers' Index (PMI) for January shows expansion of the Indian manufacturing sector. However, during the same month, the Sensex and the Nifty had fallen by 11%.
Even on Tuesday after the PMI data release, the markets fell by 1.7%. Are investors overreacting?
The HSBC Markit PMI increased to 56.8 in January from 56.7 in December 2010. On the other hand, during January, the Sensex closed at 18,237.8 points from 20,561.1 points while the Nifty ended at 5505.9 points, from 6157.6 points-a fall of 11% for both indices.
The PMI, a survey of executives in over 500 manufacturing companies, portrays the true growth of the manufacturing sector, unlike government-oriented indicators that are often revised-confusing readers and analysts.
The January reading of 56.8 is the 22nd consecutive month that manufacturing in India has been above 50 (a reading below 50 implies contraction). It implies that new businesses received by Indian manufacturers increased substantially during the month in review.
Besides, the latest rise in new orders was faster than in the previous survey period and in line with the historical average for the series. While growth of new export business slowed to the weakest in three months, it has now been maintained for 20 successive months and remained above the long-run trend.
Even the output of the six core infrastructure industries-crude oil, petroleum refinery products, coal, electricity, cement and finished steel-grew by a healthy 6.6% in December 2010, an indicator that the Indian economy is on a firm wicket.
The 6.6% growth charted in December 2010 is significantly higher than the 3% expansion recorded in the previous month and is expected to lift the Index of Industrial Production (IIP) numbers for December.
India's gross fiscal deficit shrunk to Rs1.7 trillion, down almost 40% year-on-year (y-o-y), helped by higher tax collections and lower government spending. It looks like the Centre is bent on refraining from spending the incremental revenues it had received from the spectrum license sale and the recent IPO proceeds from the stake sale in a few public sector behemoths. This has resulted in high government balances (that stood at Rs640 billion as on 14th January).
While the numbers mentioned in different indices are showing growth signs, the stock markets, however, are not following the pattern. India, on a macro scale, is witnessing deterioration. There are issues like rising food inflation, bank graft problems, slowdown in execution of projects due to stricter environmental clearances, rising deficit and political stalemate over scams, that may be affecting markets.
Despite substantial growth of both new business and output, employment in the Indian manufacturing sector was down slightly during January. The reason attributed was that demand for workers outstripped labour availability, leading to difficulties in filling up vacancies.
The month of January 2011 has been one of the worst months for the Sensex since October 2008. The benchmark has lost 2,181 points this month, wiping off most of the gains (2,303 points) made from 1 September 2010 till 31 December 2010. In the 20 trading days of January 2011, the Sensex was negative for 14 days. The advance-decline ratio on the NSE was 512:889.