tag:blogger.com,1999:blog-7004453.post1660898802582509800..comments2023-09-02T19:53:06.144+05:30Comments on Understanding and applying value investing principles: Analysing floating rate fundsRohit Chauhanhttp://www.blogger.com/profile/00356455735241398199noreply@blogger.comBlogger21125tag:blogger.com,1999:blog-7004453.post-24448608522582317182009-12-22T13:28:57.010+05:302009-12-22T13:28:57.010+05:30Hi Rohit,
The fee from ICICI Direct is applicable...Hi Rohit,<br /><br />The fee from ICICI Direct is applicable only from 1-Aug-09. Also it is applicable only if MF holding value is less than 8 lakhs.<br /><br />Regarding HDFC Floater, I was wondering what would be the objective difference between HDFC Floater LT and HDFC Floater ST?<br /><br />I noticed that HDFC Floater ST does not have an Exit Load. But it has minimum investment amount of 1 lakh compared to 5000 for LT.<br /><br />mkdmkdnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-90138104152930206042009-12-22T06:32:31.962+05:302009-12-22T06:32:31.962+05:30Hi prashant
short term funds are good, but they wi...Hi prashant<br />short term funds are good, but they will have a drop in returns in a rising rate sceanrio. best avoided if you expect inflation and interest rates to rise.<br /><br />hi amit<br />i agree, flexible deposit are also a good option. but you dont benefit from rising rates and also i think there could be a 1-25 difference compared to floating rateRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-81305046014252712452009-12-22T06:28:26.888+05:302009-12-22T06:28:26.888+05:30hi karthik
beats me. i checked my transaction stat...hi karthik<br />beats me. i checked my transaction statement and did not find the fee. maybe as my holdings are more than 8 lacs ?<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-37919834083967543582009-12-21T14:34:15.448+05:302009-12-21T14:34:15.448+05:30Hi Rohit,
In case of flexi deposit, the interest ...Hi Rohit,<br /><br />In case of flexi deposit, the interest rate applicable is the 6m deposit rate (currently 6% pre-tax for Axis, I reckon it would be similar for most banks). However, if the amt is withdrawn before 6 months, the interest rate applicable will be the rate for the actual period of deposit on the initial deposit period. So if the amt is withdrawn in say 3 months time, the rate on 3m deposit (as it was on the initial date) will be provided.<br /><br />Don't know how it compares with floaters, but given that there is no entry-exit load, no risk of principal loss and the flexibility to exit with the click of a button, I think it is a very good option who doesn't want to think too much about short term deployment of excess cash. <br /><br />Regards,<br />AmitAmitnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-82457298413937115842009-12-21T12:38:45.564+05:302009-12-21T12:38:45.564+05:30Hi Rohit - How about short term debt funds?
Thank...Hi Rohit - How about short term debt funds?<br /><br />Thanks<br />PrashantAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-12086535401048052042009-12-21T11:03:42.912+05:302009-12-21T11:03:42.912+05:30Hi Rohit,
ICICI direct charges 100 rs as transact...Hi Rohit,<br /><br />ICICI direct charges 100 rs as transaction fee. In thier T&C ...<br /><br />"b) In case cumulative value of Mutual Fund holdings (other than liquid fund) with ICICDirect is less than Rs. 8 lakhs - Rs. 30/- or 1.50% of investment amount, whichever is lower, per transaction in case of SIPs and Rs. 100/- per transaction in case of lumpsum investments. No charges will be levied in case of investments made in liquid funds "<br /><br />This makes the floater fund little expensive. You were not charged this fee? How did you manage it :)karthikhttps://www.blogger.com/profile/06869050750982435094noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-38851268667385541682009-12-21T05:14:01.504+05:302009-12-21T05:14:01.504+05:30hi amit
i have not seen the company. will have loo...hi amit<br />i have not seen the company. will have look and let you know<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-45783056084704244912009-12-21T05:13:26.795+05:302009-12-21T05:13:26.795+05:30Hi manshu
Bank FD or floaters are better than keep...Hi manshu<br />Bank FD or floaters are better than keeping cash especially if inflation picks up. but if holding cash looks safer to you and gives you good sleep then that is what you should do<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-49059139442838924672009-12-21T05:11:43.475+05:302009-12-21T05:11:43.475+05:30hi anon1
i agree with your comment. i did not noti...hi anon1<br />i agree with your comment. i did not notice exit load in hdfc and hence that part of the comment is invalidated. however kotak floater does not have an exit load and hence the conclusion holds true<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-76884199196684935832009-12-21T05:08:41.692+05:302009-12-21T05:08:41.692+05:30hi amit
you are right ..flex deposit also a good o...hi amit<br />you are right ..flex deposit also a good option ..how much is the return in these cases ? i think it is lower than what you can get from floating rate funds<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-41838680184802812192009-12-21T05:07:50.752+05:302009-12-21T05:07:50.752+05:30Hi anon
you may be right ..but in the past i have ...Hi anon<br />you may be right ..but in the past i have seen that these rates dont go up as much in response to rising rates. also bank use some average balance calculation ..so the effective rate has turned out to be lower than the advertised rate<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-35546657678988214462009-12-21T05:06:41.306+05:302009-12-21T05:06:41.306+05:30Hi mayank
I think the benchmark is MIBOR or some s...Hi mayank<br />I think the benchmark is MIBOR or some similar floating rate index. i found it in valueresearchonline.<br />i dont have a specific holding period ..these funds are just a placeholder for me. i will hold cash as long as i dont find a good idea. its diffcult to know when that will happen<br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-12374361568250639602009-12-21T05:05:15.179+05:302009-12-21T05:05:15.179+05:30Hi ameet
i missed the 3% exit load on hdfc. that c...Hi ameet<br />i missed the 3% exit load on hdfc. that changes everything for me. this fund works only if one wants to hold for sometime, but not good for a short term holding<br /><br />rgds<br />rohitRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-70758020618375556602009-12-21T01:37:18.418+05:302009-12-21T01:37:18.418+05:30Hi rohit,
Have you analysed Panasonic carbon indi...Hi rohit,<br /><br />Have you analysed Panasonic carbon india. I found the idea at this link - http://capitalideasonline.com/articles/index.php?id=3187<br /><br />Stock is trading below book value and roce is more than the inflation(at least for the time being).<br />So book value should stay more than ROCE.<br />I don't think company is going out of business anytime soon, but nevertheless it a commodity stock with almost no moat.<br /><br />Let me know your views.<br /><br />AmitAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-83713312639108601622009-12-21T01:32:13.254+05:302009-12-21T01:32:13.254+05:30I am a bit concerned about the exit loads since th...I am a bit concerned about the exit loads since they will eat in the return for sure. I hate keeping cash, but sometimes that is the safest option. <br /><br />That's what I am doing right now because of the steep run up of the markets. Was looking for some bond funds, but interest rates can only go up from here, and that is not good for bond prices.Manshuhttp://onemint.comnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-85259661807138127062009-12-20T19:41:32.893+05:302009-12-20T19:41:32.893+05:30I prefer option2 while I wait for my opportunities...I prefer option2 while I wait for my opportunities.<br />But would feel more secure with higher deposit insurance - something we all as customers should be rooting for..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-42723865603201206692009-12-20T19:38:36.799+05:302009-12-20T19:38:36.799+05:30I'm not entirely convinced by your argument - ...I'm not entirely convinced by your argument - as you pointed out, high expense ratios eat into your returns. Further, the other expenses (hdfc floating rate has 3% exit load if redeemed within 18months plus the transaction charges that (may) apply, both on the purchase and redemption) would eat into your return..Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-64598059963640851562009-12-20T19:30:21.304+05:302009-12-20T19:30:21.304+05:30Hi Rohit,
An additional alternative could be a fl...Hi Rohit,<br /><br />An additional alternative could be a flexi-deposit linked to the savings account. Most banks offer this now. Any amount exceeding a certain minimum amount gets transferred in multiples of 5k or 10k to a 6m fixed deposit. It offers complete flexibility and there is no risk of capital loss. The best part is that you dont need to go to the bank or ask them to make an FD, so it requires no effort at all. <br /><br />Regards, <br />Amitamitnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-79048560296445110192009-12-20T19:24:52.772+05:302009-12-20T19:24:52.772+05:30Doesn't a typical savings account earn 3.5% - ...Doesn't a typical savings account earn 3.5% - even after tax that should be more than the 1% you quote ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7004453.post-18134315290041526422009-12-20T18:18:12.538+05:302009-12-20T18:18:12.538+05:30Hi Rohit,
Could you also specify the benchmark th...Hi Rohit,<br /><br />Could you also specify the benchmark that is considered in this case.<br /><br />Since the fund management charges are anywhere between 0.5% - 1%, you must also have minimum time frame for which you are comfortable blocking till you find a good value stock. Could you specify whats the average such time interval.<br /><br />Regards,<br />MayankUnknownhttps://www.blogger.com/profile/17586299084737806944noreply@blogger.comtag:blogger.com,1999:blog-7004453.post-43860236624496416282009-12-20T11:31:39.671+05:302009-12-20T11:31:39.671+05:30Hello Rohit,
What abt the exit load for these fun...Hello Rohit,<br /><br />What abt the exit load for these funds? for eg, I see on valueresearchonline that the exit load for the HDFC fund is 3% if exited within 540 days. Do you look at this factor when parking ur funds?<br /><br />Cheers,<br />AmeetAmeet Talwadkerhttps://www.blogger.com/profile/14216728633366140412noreply@blogger.com