Why invest in Gold ?
• To effectively diversify portfolio: Gold’s most valuable contribution to a portfolio lies in the fact that it has a low correlation with most other asset classes. This is due to the fact that the factors affecting the price of gold differ from those that influence the price of most other asset classes.
Why invest in HDFC Gold Fund (HGF)?
• Investment Objective: To seek capital appreciation by investing in units of
HDFC Gold Exchange Traded Fund (HDFC GETF).
The following benefits are available:
• Demat account not mandatory: Investors can invest in HGF through the regular process of subscription i.e. in physical mode. The subscription through demat mode is an option for the investor but not a mandate to invest in HGF.
• Convenience of lumpsum buying / SIP/selling directly with the FUND:
Like any other mutual fund scheme an investor can buy, sell, enroll for SIP/STP/SWAP in HGF.
• Cost Effective: Investing in HGF in physical mode enables you to invest at a lower cost as the investor does not have to incur the charges for the demat account and brokerage . However , the investors will have to bear the recurring expenses of the scheme, in addition to the expenses of the underlying scheme.
• Liquidity: Investor can subscribe or redeem the units of HGF on all business days directly with the Fund.
• Taxation: Investment in HGF units will attract the benefits of long term capital gain tax after 1 year of holding, whereas for physical gold the benefit of long term capital gain is available after 3 years of holding. No wealth tax is applicable on the value of the holdings of HGF units.
Friday, October 7, 2011
Wednesday, October 5, 2011
Equity Market Update for the month of September
The market update provides a gist on how the equity markets reacted in September to global and domestic news flow and the market outlook ahead.
Key Highlights for September :
· Sept continued to be a challenging month for global equity markets. July-Sept period has seen the sharpest correction in global markets after the Lehman crisis.
· Indian Equity Markets which was the worst performing market YTD till August has outperformed all global equity markets in Sept with the lowest correction. This trend should continue considering India has strong domestic consumption…
· Hang Seng, MSCI China and Russia equity markets corrected by 14-21% this month.
· Fed announced stimulus package "Operation Twist & US president Obama proposed a $447bn jobs package to help boost the US economy
· European crisis continued inspite of several meetings between EU political leaders. Lack of political will affected EU region.
· Commodities also had a bad month in Sept with all commodities correcting sharply. Silver and copper down by 28 and 24% respectively.
· Crude prices correct globally by 10%, but petrol prices increased in India by Rs 3.14 due to weakening rupee.
· Chinese markets saw huge correction in Sept and Chinese markets trading below 2008 valuations of 9X earnings.
· As expected RBI increased Repo rates by 25 bps due to persistent high inflation
· Debt Market yields spike up on higher government borrowing programme and will remain elevated for sometime.
· Indian Rupee fell to a 28 month low to the Dollar an on verge of breaking 50 Rs to the Dollar.
Key Highlights for September :
· Sept continued to be a challenging month for global equity markets. July-Sept period has seen the sharpest correction in global markets after the Lehman crisis.
· Indian Equity Markets which was the worst performing market YTD till August has outperformed all global equity markets in Sept with the lowest correction. This trend should continue considering India has strong domestic consumption…
· Hang Seng, MSCI China and Russia equity markets corrected by 14-21% this month.
· Fed announced stimulus package "Operation Twist & US president Obama proposed a $447bn jobs package to help boost the US economy
· European crisis continued inspite of several meetings between EU political leaders. Lack of political will affected EU region.
· Commodities also had a bad month in Sept with all commodities correcting sharply. Silver and copper down by 28 and 24% respectively.
· Crude prices correct globally by 10%, but petrol prices increased in India by Rs 3.14 due to weakening rupee.
· Chinese markets saw huge correction in Sept and Chinese markets trading below 2008 valuations of 9X earnings.
· As expected RBI increased Repo rates by 25 bps due to persistent high inflation
· Debt Market yields spike up on higher government borrowing programme and will remain elevated for sometime.
· Indian Rupee fell to a 28 month low to the Dollar an on verge of breaking 50 Rs to the Dollar.
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