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ALL TIME MUTUAL WINNERS


The great virtues of investing in the mutual fund are less popular despite being known to all, and the sole factor behind this is the utter lack of patience amongst the investors. Whereas the working of the mutual fund is as simple as it could be, you invest the money in a fund, which in fact invests on your behalf and you just simply have a laid back attitude and simply watch it grow, and investing could never get simple than this.

But there is another flip side of the coin that although the structure of the mutual fund is simple as ever but finding the right fund for yourself is not that simple because selecting the best possible fund which will work wonders for you and that to from the galaxy of well above 2400 fund schemes is just like searching for a needle in a hay stack. This is one reason why the fund managers come in handy and they replace your tension of searching the right fund for you without the haunting fear of losing the money.

But on one hand there is no foolproof technique of investing where there is zero risk of losing the money and this is what the retail investors must understand that the retail investors must develop the disciplined habit of investing in the equity mutual funds for a long term. However after a saga of two years in which every mutual fund schemes donned the blue, brown or the yellow color code indicating the risk involved to the capital in each of the fund scheme, but now things have moved to the better that is the riskometer which has a better spectrum of spread risk levels of five from the earlier three.

 These new guidelines will be effective from the 1st of July 2015for all the existing as well as the upcoming mutual fund schemes also. This minor but very useful change was implemented following the aftermath of the feedback from all quarters like the investors, advisors and the distributors as well because the existing narrow band three color coding had come implications like there was some difficulty in understanding the risk and moreover there are n number of the existing mutual fund schemes which could not be probably slotted into the existing three levels.

 This move will be very welcome move and the fund houses will heave a sigh of relief as the funds have now a much better chance to clearly indicate the risk on the investment which a particular fund carries and from the investor’s point of view the new meter is very easy to gauze just because of its visual simplicity to comprehend as compared to reading the risk scale associated with each of the color code. Just of the example sake in the existing meter the blue signifies the low risk to the principle amount invested in the mutual fund scheme, yellow color indicates reflects the medium risk where as the brown color reflects the highest risk to the to the principle amount invested in the fund scheme.

The new riskometer is brought in just to keep in mind the investors, advisor and the distributor’s interest and benefit as the new meter has five levels of the risk ranging from low to high with moderately low, moderate and moderately high in between and this step could prove to be the first step in short listing of the funds for the investment purpose, and moreover its performance and the stated objective will through the light as a prime guide for the investment purpose.

 In the mutual funds you will find various terms like value, opportunity, blue-chip, discover, large cap, mid cap, small cap, multi cap, bottom-up, top-down and contrarian etc.  As an investor one should worry about the investment risk of a fund and not the volatility because the fund managers actually thrive on the volatility whereby the fund managers build the portfolios and generate the wealth for the funds under them.

The risk adjusted rating or the value research fund rating is a very simple and a convenient composite measure of both the factors like the returns as well as the risks involved and since this is a purely quantitative and hence there is no subjective component to the fund rating reflecting a quick summery of how a particular fund has performed over a given period of time in context to its peers.

 However the volatility and the risk factor are the in thing of any stock market anywhere and it is just for the mere purpose of addressing this very concern of the share market certain funds are chalked out which have capacity and fall in the parameter by managing their risk better by using the value research risk adjusted returns.  The real issue regarding the investment in the mutual fund is that it should be able to beat the inflation and of course cope with the weird pattern of the market anxiety and the market pattern is three fold one is although the investors invest for the long term.

But there are some investors who chip in for the short term and third factor is coping with different types of money that flows in even for the equity-diversified funds and keep a track of the market reactions. The best amongst the crowd of the mutual funds are Tata Balances Plan A, SBI Magnum Multiplier Plus, Birla Sun Life Frontline Equity, Franklin India Prima Plus, ICICI Pru Value Discovery, HDFC, Reliance Equity Opportunities, Canara Robeco Balance and the Sundaram Select Midcap.


The prime concern of any investor is the returns he gets on the investments and these returns should obviously beat the inflation without an ounce of risk to their investments, if we look upon a period of a 10 year span there may be some dips in a systematic investment plan but eventually they come out as winners thereby creating wealth.

The Winds of Change for the Silver Cycle

It was the year of 2011 which was the golden year for the silver and in the international markets the silver had scaled to the 49.81 dollar per ounce and in India the silver leaped to Rs73, 600/- per kilogram. The prices of the silver are moving in the limited quarters only specially after 2011 the fall in the international markets and the recession in the markets of the developed nations.This year in the Indian market silver commenced with Rs 35,990/- per kilogram and since then the silver is trading in the limited zone phase. Upon analyzing the international events the rally in silver is farfetched, China being one of the largest importers is facing the recession and same is the saga of the European countries and moreover the Greece crisis dangles and looms large.

The other side of story is that there is a marginal improvement in the US economy which will make the grounds for the increase in the interest rates, and even the descending of the crude prices is a cause of worry for the consumption of the silver. As the mining is on the decline indicating that the investments in the silver will make you going laughing all the way to the bank yielding good returns.

Although in the third quarter the movement will be slow paced but upon the onset of the fourth quarter and the expected improvement in the international markets silver will be posting ahead of Rs40, 000 per kilogram.

The silver happens to be an industrial metal as almost 70% is consumed as the industrial metal and the 30% consumption is investment in the jewellery, at present 19% of the fulfillment is being done by the scrap and the old silver.

The events in the international markets and the global economical scenario and to add to it the forecast and the survey of the world silver survey and the silver institute it can be deduced that any rally in the silver is ruled out at the moment but the turn of the events are definitely on the cards in the last quarter of the year and in the coming 12 months a return between 15-20% is in the offing.


We suggest buying silver at 35,000 levels and on the other hand the supply is expected to be 1016 million ounce against the consumption of 1039 million ounce. Upon analyzing the graph of past 15 yrs 2008-the year when the global recession, from 2009 to 2014 the deterioration in the production as well as the demand was steady, and from the year of 2015 this cycle is rebound. A year of make or break for the silver. 

Chettinad Group must recover -Son Stroke

The Chettinad Group is a Chennai based Indian industrial sprawling conglomerate with the traces of its origin to the S.R.M.M. (Satappa Ramanatha Muttaiya) in the late 1870s. The S.R.M.M. Muthiah Chettiar was infact a very noted financier, a money lender and a philanthropist belonging to the Chettiar community. His youngest son Annamalai Chettiar started India’s first private university in 1929- The Annamalai University. The Chettiar family not only made fortunes for itself in India but also elsewhere in Malaysia, Srilanka and Myanmar. The Britishers conferred the title of Raja of Chettinad on Annamalai. His son M.A. Muthiah Chettiar inherited and grew the Chettinad Group, while the other son M.A.Chidamabaram founded the SPIC Group after deciding to branch out independently.

This is for sure that while travelling in Chennai it is next to impossible that you do not come across either a hospital, educational institution, temple, company or a charity belonging to the S.R.M.M. family, and some other ventures like the Indian Bank, United India Insurance, Indian Overseas bank, consolidated coffee Ltd and the Madura coats apart from conglomerates like the Chettinad Group and the SPIC Group the former finance minister Mr.P.Chidamabaram member of parliament comes from this family.


Initially the S.R.M.M. family the united Annamalai Chettiar Group which later split as Chettinad Group and MA Chidambaram’s Southern Group was founded by the famous Tamil Nagarathan businessman Raja Sir Annamalai Chettiar. The Chettinad’s have various diversified business like the Chettinad cement company limited, Chettinad power corporation pvt ltd (CPCPL), Fused Silica, Chettinad Quartz products pvt ltd, Chettinad MB-FHI Silicon limited, Chettinad Logistics pvt ltd, and in the minerals division- purity quartz gritz, lorry division, Chettinad ship management services, imported coal trading, Chettinad international coal terminal pvt ltd, common user coal terminal, Chettinad lignite transportation services pvt ltd, lignite trans south India corp. ltd, Chettinad college of engineering and tech, Chettinad university and Chettinad dental college and research institute and an overall more than 5, 000 crores of consolidated  group’s revenue.  


The Muthiah Chettiar nurtured the company initially and then later on by his sons M.AM.Ramaswamy, as M.A.M.Muthiah had no children so upon his demise in the 1970. So M.A.M.Ramaswamy inherited the group after his father’s demise. Since he did not have children so due to the relative’s and the acquaintances pressure he wilted and adopted a son just in order to carry forward the name of the family. As the course of life went on some differences in the manner of running the organization cropped up which are not too grave so as not to be sorted out. The family legacy of 10 decades will carry on long way.