CAPITAL LETTER

Volume 3

July
July 7,
7, 2011
2011

Issue
Issue 77

G re e ti ngs fro m FundsIndi a!

Enriching India, two years in a row
My name is Srikanth; Im a director at FundsIndia. Thanks for taking the time out to read
this July 2011 issue of our monthly newsletter.
This past month, we completed two years of FundsIndia.com being live and operational to
customers across the country. I remember that when we started off, we had about 10 mutual fund companies on our platform, and supported only about 7 banks. We have come a
long way since then as you know, we have 34 fund houses and support 26 banks on our
platform today. We also have a deposits platform, equity platform, NPS offering and are poised to add
more.
We believe that in these two years, we have made a small but important difference in the way mutual fund
distribution is perceived in India. By providing a scaleable, cost-effective, high-function solution for mutual fund investing, we have acted as a credible alternative for investors around the country.
Around the middle of last month, the mutual fund industry folks got together for the annual Mutual fund
summit meet in Mumbai. The chairman of SEBI and the former UTI Mutual fund chief Mr. U.K.Sinha
spoke passionately about how mutual fund investing should penetrate more into the hinterlands of the
country. Indeed, this investor-friendly product definitely deserves more love and acceptance from a larger
segment of the population in India both for their own benefit, and for the benefit of the industry and
economy.
In fact, such a vision was what motivated us when we were thinking of the tag line for our company Enriching India, one investor at a time. We seek to enrich the country by enriching its citizens in a virtuous cycle of prosperity.
At this juncture of our companys history when we step into the third year of our operations, we proudly
re-dedicate ourselves towards fulfilling this vision and march ahead.

Happy Investing!

FundsIndia All Insurance Ranking FAIR

FAIR is designed for individuals
and families, to simplify their insurance buying decisions. It
helps you choose the insurance
plan that gets the most out of the money you
invest in it. In its first avatar, it ranks the
various term insurances available in India,
across insurance companies, in a scientific
and time-tested manner.
Login to

http://www.fundsindia.com/fairrating
account and see how your policy ranks
in our FAIR rating!

Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

Deposits from Top rated Companies

Company Name

Rating

1 Year

2 Year

3 year

HDFC LIMITED

FAAAA

9.4%

9.5%

9.25%

ICICI HOME FINANCE COMPANY LIMITED

MAAA

8.25%

8.75%

8.75%

LIC HOUSING FINANACE LTD

FAAA

7.0%

7.4%

7.65%

MAHINDRA AND MAHINDRA

FAA

8.25%

9.75%

10.25%

SHRIRAM TRANSPORT FINANCE CO.LTD

TAA

9.25%

9.75%

N.A

DHFL

AA+

10.25%

10.25%

10.25%

11.0%

11.5%

12.0%

UNITECH LIMITED

For more information log on to www.daiwafunds.in

Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

BUY TODAY SELL TOMORROW under the BTST segment Now available at FundsIndia.com
With Buy Today Sell Tomorrow (BTST ) you can get the incredible advantage of selling the stocks
that you have bought on the previous day. Thats right, you no longer need to wait for the receipt of your
shares into your demat account.
FundsIndia BTST - Recommendations June last week (2011)

DATE

SYMBOL

BUY CALL

PROFIT

EXIT CALL

PROFIT %

28/06/11

INDUSIND BANK

275

282

2.55%

29/06/11

SYNDICATE BANK

113

117

3.54%

30/06/11

UNITECH

31

33

6.45%

01/07/11

PUNJ LLOYD

78

76

-2

-2.56%

04/07/11

MRPL

281.5

283

1.5

0.53%

Why you should take advantage of BTST:

Get an average profit of nearly 3% on every recommendation (based on last months recommended stocks)

With BTSC you wont have to miss booking profits just because the shares have not yet been credited into our
account.

Cash based transactions for intra-day trading can be more profitable as it lets you realize maximum profit.

Gives you access to an intermediate option between cash and margin trades where you can make profits within
one or two days from the date you buy your stock without a compulsory square off.
Important note about new equity accounts
Please note that we have introduced a fee of Rs.500 towards activating a new equity account to defray operational costs. However, please note that your brokerage charges for the first three months upto the limit of
Rs.500 will be free (whichever comes first 3 months after account activation or transactions for brokerage
worth Rs. 500) The demat account charges will be waived for the first year. A demat account fee of Rs. 200 per
year will be charged starting the second year.

www.fundsindia.com/taxfiling
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

How to Decide on Optimum Insurance Cover for a family in India?

BY RAJARAMAN K

Usually a good insurance advisor asks you several questions to decide the optimum insurance required.
In India, the statistics taken by insurance companies say, most of the Indians are either over
insured or underinsured. Very few have calculated their real insurance need and bought policies.
Two reasons I see (1) Insurance companies make more money by selling you more insurance
and hence they always going to tell you to buy more (2) On the other hand, many investors feel they are being
ripped off by insurance companies and ignore the computation of their requirement but go with a gut feeling and
get under insured.
First we need to decide what is adequate life insurance cover for a person.
To decide adequacy, we need to list all the financial goals/commitments. Certain financial goals don't need insurance cover. For example, retirement needs. If you lose your life, there is no need for retirement.
In some cases, I found life insurance is not required. (1) they have adequate assets (2) or adequate coverage from
current employer.
First Home Mortgage loan amount, child UG education need are Insurance dependent. One also needs to find out
from the spouse how much they need to support their monthly expenses in absence of earning spouse. If both
spouses are working and if one can manage expenses without the income from the other, we may considerably reduce the insurance cover.
The reason home mortgage need to be backed up by insurance is - if the earning husband dies, and if wife can't pay
the mortgage payments, they will be in the street; To protect their home, the insurance cover is important.
In the same way if the earning husband dies, the wife may not be able to support the expensive education needs of
the kid alone, in addition to providing for monthly expenses, so the total money needed for education has to be covered with insurance.
All financial goals of a family have to be checked this way and totaled up to arrive at the total cover required. Then
deduct all the insurance cover that has been already bought or provided by employer. Find the sum to decide if you
are over insured or under insured.
Remember insurance is necessary EXPENSE. You only need optimum level. Under insurance will kill your dependents and push them to suffer poverty. Over insurance will eat into your wealth growth and if you survive, you would
have made the insurance company richer by over insurance.
When you are young and got just married and bought a house, your commitments are much larger. As the year goes
by, your savings and investment will grow and your dependence on the insurance will reduce.
In most of the situation taking term insurance is the best solution. Dont buy endowment or money back policies.
But with a term insurance, you can't reduce your insurance cover every year. These endowment policies and money
back policies return 4-5% return over a long term. So, dont use these policies for long term investments. Use a mixture of equities/bonds for investment.
With a targeted ULIP plan, one can reduce the insurance cover yearly and completely eliminate once your investments cross the threshold amount. Looking in isolation an ULIP plan seem to be expensive, but with some tailoring
done to suit one need, an ULIP plan may save money compared to term + mutual fund plans. Again I am not suggesting this solution to every one. There are situations where term+MF could be better option. This is where you
need professional to help to analyze and recommend appropriate solution that is good for your situation.
Next insurance is taken for a person. In a family you have to do this assessment for each member of the family and
provide adequate cover. Usually non-working spouse and children may not need insurance cover.
Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.

Lagey Raho
BY DHIRENDRA KUMAR

It's bad news time once more. Around the globe, investors are running scared.
Europe is well past the stage when the phrase 'Greek tragedy' qualified as a pun.
Now, the phrase of the moment is 'Europe's Lehman moment'. Here in the US,
where I'm travelling at the moment, the newspapers and news channels are full
of the government's impending budget crisis. Even the tabloid-ish papers have
front page stories about how the government will shut down on August 5 and
about America's mountain of debt.

In India, the stock markets seem to have settled into a pessimistic mood. There
are the occasional bright days, but in general bad news of all kind has created a miasma which doesn't
seem to be anywhere close to clearing. It's just the kind of time when the whole idea of investing, specially
investing in equity for the long term loses any urgency. You don't get the feeling that you'll be missing a
bus by not starting fresh investments now. No great gains appear to be possible and therefore no great opportunity loss will take place if you don't investment. So that equity SIP that you could have signed up for
will probably go unstarted till you can feel some excitement of making money in your bones.
Unfortunately, for those who are saving and investing for the long-term, this would be downright dangerous frame of mind. This is exactly the kind of time in which you can lay the foundations of great long-term
returns. Mainstream equities are stagnant, with frequent bursts of pessimism that drive prices down. An
year or two of monthly equity SIPs in this supposedly uninspiring market and you would have built up a
sizable chunk of equity holdings that have been acquired at a relatively low average cost.
For the thinking saver, these are actually very exciting times, the sort when you can quietly lay the foundation of your future fortune. As the chewing gum ads used to say, 'lagey raho'.

Syndicated from Value Research Online

Indian bank, State bank of Mysore & State bank of Hyderabad available for
net-banking in FundsIndia!

What does this mean?

Until now, Indian bank, State bank of Mysore & State bank of Hyderabad banking customers had to use the
NEFT/RTGS route for funding their investment transactions in FundsIndia.
Going forward, they can go login to their bank account seamlessly from FundsIndia to transfer money for their
investments. This makes investing more convenient and eliminates any transfer related delays.
17, RMG Complex,
TVK Industrial Estate,
Guindy, Chennai 600032
Tamil Nadu, India

Phone: 044-4344 3100

E-mail: contact@fundsindia.com

Disclaimer: Mutual Fund Investments are subject to market risks. Please read all scheme related documents carefully before investing.