NHPC IPO Allotment basis

NHPC IPO which was oversubscribed during the period 7/8/2009 to 12/8/2009 and priced at Rs. 36 per share the allotments are out.

Those applying for full quota of 2625 shares have been firm allotment of 713 shares per application.
Those having a minimum allotment have been allotted 175 shares in the ratio of 14:51

Dividend by Reliance Mutual fund in ELSS as well as two other schemes

Following are the dividend declared by Reliance Mutual Fund in respective schemes.

1. Reliance Banking Fund 20 per cent
2. Reliance Pharma Fund 15 per cent
3. Reliance Tax Saver (ELSS) Fund 15 per cent

Record Date : 28/08/2009

Retail Subscription of NHPC is 3.8730 times Which means you will roughly be allotted 25% of shares applied for

As per the data on NSE website,NHPC LIMITED was subscribed more then 23 times of the issue, but for retail investor important piece of data is not the overall subscription but the Subscription number of Retail category which has been subscribed 3.87 times as shown below, data taken from NSEIndia.com

3

Retail Individual Investors (RIIs)

490631900

1900194450

3.8730

This means that if you will be allotted roughly 25% of number of shares applied for (100/3.87= 25%approx) .
For e.g if you have applied for full shares(2625 * 36 ) Rs 94500. Your chance of confirmed allotment is about 25% which brings to Shares in range 650 to 700.
for somebody who has applied for minimum lot of (175 * 36 = Rs 6300). There should be either lottery based allotment of 1 application for 4 applications applied, or there can be uniform allotment of 45 shares each application.

After the ban on Entry Load , exit load kicks in MF industry

After the SEBI bringing the ban on Entry loads in Mutual Funds which was earlier 2.25% on most Equity oriented Mutual Funds being implemented from 1st August 2009. Most Mutual Fund houses are now bringing in Exit Load to compensate some what for the loss of it.

Recently many Fund houses has announced change in there charge structure. most of them are increasing the tenure of exit load from 1 year to 3 years now with an exit load of 1% being charged if you exit an MF scheme before completion of 3 years.

Many schemes which did not have any exit load at all are incorporating the exit load of 1%.
some MF houses have variable exit load structure like if your withdraw before 1 year exit load is 3% , withdrawal between 1year and 2 year will extract 2% exit load and withdrawal between 2nd and 3rd year exit load is 1% and withdrawal after 3 years no exit load.

All this changes will be implemented on new investments registered after 1st August 2009. Even in case of SIP registered after 1st August 2009 new rules will apply and SIP registered before 1st August 2009 old rules will apply.

Hence many of the people who have enrolled for SIP before 1st August 2009 it is advisable to stop your old SIP and register new SIPs with the same funds.

Get Wealthier and Wiser !

Top 5 Mutual Funds for month of July 2009

Top performing ELSS Mutual fund for the month of July 2009
1) DBS Chola Tax Advantage Sr-1
2) Bharati AXA Tax Advantage
3) ICICI Pru Tax Plan
4) Sundaram Tax Saver
5) Quantum Tax Saving

Top Performing Diversified Equity Mutual Fund July 2009
1) Tata Select Equity Fund
2) ICICI Pru Discovery Fund
3) UTI Master value Fund
4) Birla SL Oppurtunities Fund
5) Tata Equity P/E Fund

Health Protection Plus plan from LIC simplified with example

Lic has come out with another Health cover with Unit linked plan called with Health Protection Plus Plan. The earlier one is called Health Plus plan. (Whenever any policy of LIC uses the word 'Plus' at the end it means its an ULIP product and its NAV based)

When you first take a look at the policy its a huge document seemingly very complicated with so many new terminology. Lets us simplify it one part at a time with example.
1) Hospital Cash Benefit (HCB). A daily benefit is payable in case the insured is hospitalized due to either accidental body injury or sickness. (It can be from min of Rs 250 per day to max of Rs 2500)
To understand this with an example lets take an HCB as follows for family of four
Person Insured : Rs 2000 (called PI )
spouse : Rs 1500
1st Child : Rs 1000
2nd Child : Rs 1000
you can also select varying HCB; for spouse and children maximum allowed is Rs 1500.

2) Major Surgical Benefit (MSB): In the event of the insured undergoing one of the major surgeries defined in the Annexure I, a lump sum benefit (regardless of the actual costs incurred) equivalent to the percentage of the sum assured mentioned against that surgery will be payable on providing proper proof of surgery to the satisfaction of the corporation.
(MSB is 200 times of HCB meaning for our example it works out as follows
PI = 200 * 2000 = 4 lakh
Spouse = 200 * 1500 = 3 lakh
1st child = 200 * 1000 = 2 lakh
2nd child = 200*1000 = 2 lakh)

3) Domiciliary Treatment Benefit (DTB). The Principal Insured can claim an amount equivalent to the actual expense he or she has incurred in respect of any domiciliary treatment or to meet the medical expenses incurred over and above the hospital cash/major surgical benefits in respect of either oneself or the others insured under the policy.
DTB is available only after at least 3 years premiums are paid

4) Premium : Let us see how to calculate premium with example as follows
a) If one life is covered then it is : 6 Times of HCB (for single life)
= 6 * 2000 = Rs 12000 (If only single person is covered)

b)If four lives are covered then it is: 6 Times of HCB for PI + 3 times HCB for others
for our example it is as follows
Premium = 6 * 2000 (PI) + 3*1500(spouse) + 3*1000(1st child) + 3*1000(2nd child)
= 12000 + 4500 + 3000 + 3000
= Rs 22500( If four lives are covered)

NOTE: This means that ideally it is better to take policy for entire family as we get 50% discount on other members premium.
for other terms and conditions you can visit LIC website

UTI Mahila Unit Scheme ;Hybrid conservative balanced fund for women

Following are the marketing claims from UTI Mutual Fund and they come out to be true

1. UTI Mahila Unit Scheme is the only Scheme which is exclusively designed for Indian women above 18 Years of age in the whole Indian Mutual Fund Industry.
2. UTI Mahila Unit Scheme is the top performing fund in the Hybrid Debt category in the entire Mutual Fund Industry.
3. UTI Mahila Unit Scheme has been continuously rated as a Five Star Rated Fund by Value Research online
4. UTI Mahila Unit Scheme has won LIPPER Awards for its consistence high rated performance in the Year 2007, 2008 & 2009.
5. Prudent Asset Allocation (Minimum 70% Debt, Maximum 30% Equity) in the Fund with a view of Safety and Consistent Returns is the hall mark of the Scheme.
6. Lower volatility of returns and well diversified & actively managed portfolio are some of the additional feathers of UTI Mahila Unit Scheme.
7. Superlative Performance across all Time Periods: UTI Mahila Unit Scheme is the Super performer in the Hybrid Debt Fund Category.

It has ranked First in Last One Year Performance, First in Last Five Year Performance and also is ranked First in performance since inception.