Seven ITC hotels to join Luxury Collection

ITC-Welcomgroup on Thursday said it signed an exclusive agreement with Starwood Hotels and Resorts to bring Starwood's premium brand, 'Luxury Collection,' in India.

Under the new franchise agreement, the seven hotels that will be part of the new brand, ITC-Luxury Collection, are ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in Bangalore, ITC Kakatiya in Hyderabad and ITC Mughal in Agra, it said in a release.

User

COMMENTS

usher tilde

7 years ago

i want to study information technology in your place

Dynamatic inks MoU with Karnataka for aerospace facility

Dynamatic Technologies Ltd said it signed a memorandum of understanding (MoU) with the government of Karnataka for the setting up a manufacturing facility for the aerospace industry at the Aerospace Park near the International Airport in Bangalore. No financial details were provided.

According to the MoU, Dynamatic will set up the aerospace facility for which the investment will be spread over six years, while the government, on its part, will endeavour to obtain fast-track clearances and approvals as well as provide the infrastructure such as land, water, power, necessary for the commencement of commercial production.

On Thursday, Dynamatic shares ended 10% up at Rs1,019 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.7% up at 17,022 points.

User

Clever index funds aiming at outperformance fall flat on their faces

Index funds are merely supposed to mimic the returns provided by the underlying benchmark index such as the Sensex or the Nifty. Essentially, these funds are expected to follow the passive investing route, buying and holding stocks in the index in the same proportion as the index. However, many mutual fund (MF) houses offer slightly tweaked variants of index funds, by including an element of active management, promising to deliver better performance than the underlying benchmark and other index funds. But almost always, such funds become too clever by half in their futile attempts at beating the broader markets.

Such funds invariably have the term 'plus' or 'advantage' attached to their name, indicating that the fund manager intends to offer something extra-that is, returns superior to the underlying index. Sadly, the 'extra' bit ends with the name itself. Take for instance, JM Nifty Plus Fund which has made an ass of investors.

Launched in February 2009, this fund has yielded returns of 42% since inception, failing to catch hold of the phenomenal rally that ensued post March 2009. Its underlying index, S&P Nifty, has jumped 56% over the same period.

Since inception, ING Nifty Plus Fund has provided returns of 16%, while its underlying index, S&P Nifty, has managed to deliver 18% returns over the same period. The LIC MF Index Fund is also severely lagging behind its underlying index, the BSE Sensex. Since inception, the fund has provided returns of 16% while the BSE Sensex has yielded returns of 24%. The HDFC Index Fund- Sensex Plus Plan has so far managed to live up to its mandate. While its benchmark, the BSE Sensex, has provided 23% returns since its inception, the fund has managed to deliver 26%.

It is not just the adapted index funds that fall flat on their faces. Pure vanilla index funds also make a hash of passive investing. With unforgivably high tracking errors, these funds have failed to do justice to the concept of passive index investing. For instance, the LIC MF Index Fund-Nifty Plan and LIC MF Index Fund-Sensex Plan has tracking errors as high as 7% and 5%, respectively. The HDFC Index Funds linked to the Nifty and Sensex, too, run a high tracking error of 3%.

Index funds attempt to deliver outperformance by either tweaking the portfolio underlying the benchmark index or by altering the weightages assigned to each constituent of the index. Fund managers also try their hands at timing the market, much to their own peril. Such enhanced indexing and market timing defeats the very purpose of an index fund and leads to substantial underperformance relative to the benchmark. It thus translates into a huge tracking error, which is appalling for a fund that is only tasked with following the broader index.
 

User

COMMENTS

Param Iyer

7 years ago

Simple solution that SEBI can implement:
A fund house must have an Index fund (on Nifty or Sensex), it should be benchmarked to Total Returns Index (not current Index value which discounts dividends), fund should not show tracking error (including all expenses) beyond 1% - any shortfall must be funded by AMC. Unless AMC shows the capability to manage such a basic index fund, it will not be allowed to manage an active fund. Amen!

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)