L&T Short Term Debt Fund is an open-ended debt scheme
L&T Mutual Fund has filed an offer document with SEBI to launch L&T Short Term Debt Fund, an open-ended debt scheme.
The investment objective of the scheme is to generate returns for investors with a short-term investment horizon by investing in fixed income securities of shorter term maturity. The scheme will invest up to 60%-100% in debt and money market instrument with maturity up to 24 months. And also invest up to 40% debt instrument with maturity greater than 24 months. The scheme may invest in securitised debt up to 50% of the portfolio.
The scheme will charge an exit load of 1% if redeemed before one year and nil for the redemption after one year. The minimum investment amount is Rs5,000.
Crisil Short Term Bond Fund Index is the benchmark index. Bekxy Kuriakose will manage the fund.
Ahmedabad-based air traveller receives a misplaced bag from an unidentified person without verification of the lost baggage claim; airline refuses any compensation
When Bharat Joshi took a Kingfisher Airlines flight from Ahmedabad to Delhi, his baggage went missing at the airport. Mr Joshi managed to get his bag back the same day, but he was shocked when he realised that the bag was delivered by a person who was not from the airline.
What was equally startling was that the person, who handed over the baggage, was apparently from an outsourced agency. So, has Kingfisher Airlines outsourced the work of delivering lost/misplaced baggage that has been located?
Mr Joshi told Moneylife that "the bag was finally brought to Gurgaon by a chap walking on the road. He belongs to some agency outsourced for delivery, (which) does not even use a car or a taxi. He even handed over the bag on the roadside, without collecting the baggage claim, as my relatives were following him."
Describing how his bag was misplaced, Mr Joshi said that one out of the five bags he carried on the flight on 27th March went missing. When he reached Delhi, he collected four of his bags, but could not find the fifth one. After a quick search at the airport, the airline staff gave him a missing baggage report.
After going back and forth to the staff, he was informed that his bag was lying behind the check-in counter at Ahmedabad airport and was not put on the conveyor belt to the aircraft. He was informed that the bag would be put on a Jet Air flight, scheduled at 3 pm, it would reach Delhi at around 5 pm, and that it would be delivered at his residence at around 6.30pm.
Kingfisher Airlines officials also denied Mr Joshi any compensation for the mess-up. "I requested for interim compensation, but I was told that, if I had checked each bag individually it would have been allowed, but since the bags were checked in together as a group, no interim compensation (will be given) as per group policy," Mr Joshi said.
This raises another question whether no compensation will be given if one out of several bags is lost? And what would a traveller do if, unlike in the case of Mr Joshi, his baggage cannot be traced? The answer is, perhaps, best known to Vijay Mallya, the owner of the airline.
Meanwhile, in response to an email by Moneylife, Kingfisher Airlines said it wants to get the facts right before commenting on the specific case.
As Moneylife has been pointing out, chasing Initial Public Offerings (IPOs) after they are listed is usually a losing proposition for investors
Initial public offerings (IPOs) seem profitable only for promoters, while investors who invested their money in the IPOs on the anticipation of handsome profit usually make losses. At least that is what the BSE IPO Index says.
The BSE IPO index was launched on 24 August 2009. On 4 March 2011, the index closed at 1804.92 down from 1947.54 on 24 August 2009, or 7%. However, in the same period, the BSE Sensex rose 26%. Except the IPO, Realty and Power indices, all other indices on the BSE performed well during the period. The Consumer Durables, Auto, IT, Healthcare and Bankex indices grew by 101%, 67%, 64%, 59% and 59% respectively in the same period (24 August 2009 to 4 March 2011).
The Bombay Stock Exchange (BSE) launched the BSE IPO index to track the value of a company’s listing subsequent to a successful completion of an IPO. The index currently has 66 companies. But this figure is continuously changing, depending on how many companies are listed, as an IPO company is kept on the index only for two years.
Most of the investors fall prey to marketing pitch of IPOs and it has also been observed that investors intend to invest their money in high-valued IPOs as they think high-valued IPOs are bound to give higher returns. The BSE IPO index shows there has been no growth in investors’ wealth.
Among the stocks in the BSE IPO Index, Aster Silicates was the worst performer, which plummeted 77% to Rs27.30 per share on 4 April 2011 from its issue price of Rs118. Commercial Engineers & Body Builders, Raj Oil Mills and DB Realty were the other worst performers falling by 66%, 72% and 76% from their issue price, respectively.
The top gainers of the index as on 4 April 2011 are Jubilant Foodworks (up 289%), C Mahendra Exports Ltd (up 124%), Mandhana Industries Ltd (up 90%), Talwalkars Better Value Fitness (up 78%) and United Bank Of India (up 65%) from their issue price.
Since 1 September 2009, 92 companies have raised money from the primary market. Out of 92 companies, 61 companies are trading below their issue price. It clearly shows that those investors who held their shares for a long period did not make money.
According to Moneylife’s study, ‘How to play the IPO game’ (a research and analysis of 107 companies that have listed in the past three years), investors should certainly avoid IPOs after listing. This study adds that investors’ tendency to buy IPO shares and hold for the long term leads to losses. The study says 60 out of 107 companies that have listed in the past three years are trading below their issue price. A 44% chance of making money on one’s investment is hardly encouraging.
Out of the 92 stocks which have been listed after 1 September 2009, there are 29 stocks which are not forming part of the BSE IPO index. Among these (29 stocks), the worst performing stocks are Euro Multivision, Gyscoal Alloys, Sea TV Network, Tirupati Inks and Cantabil Retail India which fell 79%, 76%, 74%, 69% and 68% from their issue price.
The top gainers during the period are Fineotex Chemical, Thangamayil Jewellery, Midvalley Entertainment, Globus Spirits, and Power Grid which rose 207%, 113%, 79%, 49%, and 17% respectively from issue price.
The Moneylife study says an investor can only make money when he plays the flipping game that means subscribing and then flipping it on the first day. Our research showed that an astounding 95 stocks that hit the market in the past three years got listed above their issue price. This indicates that the investor has an 89% chance of adding value to his investment on the listing day itself.