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04 KALEIDOSCOPE ERGO Monday, June 15, 2009

At a glance
Reliance Infrastructure Fund
Fund philosophy: To give investors long-term
capital appreciation by investing mainly in equities
and related instruments. The investments will be
only in equities related to the infrastructure and
related companies.
Opening date: May 25, 2009
Closing date: June 23, 2009
Offer price: Rs. 10 per unit
Finergo’s take: Infrastructure will be an industry
that will show consistent growth at least for the
next 10 years.

1. What does ELSS stand for:
A) Employee Linked Savings Scheme
B) Equity Linked Small Stocks
C) Equity Linked Savings Scheme
D) Enterprise Level Securities and stocks
2. CAP in Large Cap or Mid-Cap stands for?
A) Capital
B) Capitalisation
C) Capacity
D) Capability
Send your answers to or SMS
your answers to 92813 98889. For example, if you
choose A as the answer to question 1 and B as the
answer to question 2 type it as 1A2B and send it.
Winner will be chosen by lucky draw from all correct
Answers for last week’s quiz: Consolidation of banks will assure more government support as well as higher safety

News you can use

No to consolidation
Banking on the
Employees of all State Bank associates have
shown negative sentiments towards the proposed
consolidation (Read lead article) of the public sec-
tor banks. They are of the opinion that doing so
power on oneness
would lead to a distraction in the core focus of the
banks from the common man to global competi-
tion. The employees association has called for a
What is it for you and me if PSBs were to consolidate?
strike on July 3. growth of these banks as well as to avail of loans.
DIVYA DARSHINI boost the economy as a whole. 2. Government support will be
New mortality table for life insurance Although the PLR (Prime Lending more than before for there is less di-
The IRDA will soon be releasing the new table for

inance Minister Pranab Muk- Rate) of banks have come down by versification in policies and
calculating mortality rates. The table is based on herjee has emphasised the 1.75 to 2.25 per cent during the past procedures.
latest data relating to mortality and is also based on need to consolidate Public Sec- six months there is still scope for fur- 3. This would benefit the capital
the data provided by different insurance compa- tor Banks (PSBs). He stated that ther reduction. This will give impe- markets tremendously and thus the
nies relating to their claims. With this customers this merger of PSBs is very essential tus to economic growth too. The FM values of our stock investments and
could look forward to lower premium rates. for the country as well for the surviv- also pointed out that the Govern- mutual fund NAVs could see a posi-
al and growth of banks themselves. ment, as a majority shareholder, will tive growth.
HDFC coming up with NCD For, it not only aids in the reduction play a very supportive role in the 4. Indian public sector banks
The board of Housing Development Finance of risks due to financial stability but merger. could become more competitive in
Corporation (HDFC) has approved plans to raise also helps in improving the state of So, what does this mean for you comparison to global banks, thus
capital of Rs. 4,000 crore through non convertible competitiveness of Indian banks and me? Although on a macro level enabling them to offer cost-effective
debentures and warrants that could be converted globally. consolidation can help the country, yet world-class financial products.
to shares at a later date. Although the NCDs will be Recently, the Finance Minister there are a few positive take-homes 5. Common investors can be more
available only to Qualified Institutional Investors, met with the Chief Executives of the for us as individual investors as well: assured when investing in these en-
from a personal finance point of view it is a signif- PSBs and suggested that they look 1. Consolidation of banks may en- tities as there is more government
icant move considering it is one of the largest NCD through all the possible ways to fur- able better returns on investments support as well as higher safety. This
offering and also an indicator of market ther reduce their lending rates. Ac- and the lending rates could go down, is very critical, especially after what
sentiments. cording to him, this will assist in the making it cheaper and easier for us happened to the large US banks. ■