Putting Thought to Your Finances

·        The House of Representatives in the USfinally passed the passed the $700 bn rescue package. Details are given below

–Provides the government with warrants to obtain anequity stake in companies. This helps ensure that taxpayers share in futuregains of companies that are bailed out.

–Limits excessive executive compensation for somecompanies. Any firm that sells more than $300 million in troubled assets to thegovernment is also subject to more taxes.

–Establishes an oversight board and specialinspector general to act as a watchdog.

–Requires the Treasury secretary to regularly reportto Congress the details of all financial transactions under the bailout.

–Allows federal agencies to modify troubled mortgageloans.

–Expands the amount of government insurance onindividual bank deposits from $100,000 to $250,000.

–Gives the chairman of the Securities and ExchangeCommission the authority to suspend mark-to-market accounting and requires theagency to complete a study on the effectiveness of this accounting method.

–Requires the president five years from now todevise a plan to recoup net losses, if there are any.

–Gives companies the opportunity to insure theirtroubled assets rather than selling them, although this is up to the discretionof the Treasury secretary.

·        The global credit crunch hasdeepened in Europe with government leadershaving pledged to bail out troubled banks and protect depositors.

·        On the domestic front, Inflationnumbers came in at 11.99% for the week as against 12.14% a week ago mainly dueto decrease in non food articles

 

Birla has launched a one year FMP with an all bank CDportfolio - BIRLA SUN LIFE FIXED TERM PLAN - SERIES BG  (370Days)

Subscription Period              

30th September 2008 to 8th October  2008.

Date of Allotment               

10th October2008

Date of Maturity            

15th October 2009

Minimum Application Amount        

Retail Plan                       - Rs. 5,000/-
Institutional Plan          - Rs. 1,00,00,000/-

Instruments*                        : 100% P1+ and equivalent

Indicative Yield**               :  Retail Plan - 10.75% p.a
                                  Institutional Plan -11.35% p.a

 

 

Birla Sun LifeCommodity Equities Fund - Global Agri Plan

The fundamentals for agri commoditiesremain strong with demand outstripping supply by a huge margin. Also, witharound one – third of land being used to produce ethanol, there isconstant pressure building on the supply side. The fund will invest a major chunkin fertilizer/agrochemicals and the rest in agricultural

products, farm machinery and fooddistributors. Investment advice will be provided by Blackrock. Recommended forinvestors with atleast a three year horizon.

Entry Load: 2.50%

NFO ends 14th Oct, 08

 

 

Birla Sun LifeCommodity Equities Fund - Global Precious Metals Plan

The fund seeks to invest in companiesengaged in mining activities of precious metals such as Gold, Siver, Platinumetc. With global uncertainty looming large, gold, silver etc are considered assafe havens. Also with supply diminishing rapidly, the fundamentals remainstrong. Investment advice will be provided by Blackrock. Recommended with a 2-3year horizon in mind.

Entry Load: 2.50%

NFO ends 14th Oct, 08

 

 

Birla Sun LifeCommodity Equities Fund - Global Multi Commodity Plan

The fund seeks to invest in energy,Metals, Alternative Energy, Water resources etc. Large scale volatility inglobal commodities depicts a rather uncertain scenario. While the investmenttheme sounds good, there is no saying how much more the correction can be. Itwould be best to adopt a wait and watch policy.

Entry Load: 2.50%

NFO ends 14th Oct, 08

 

Bharti AXA EquityFund,

An open-ended equity scheme investingin a diversified portfolio of equity stocks. The Scheme is in the nature ofdiversified multi-cap fund. There are far better schemes with proven trackrecord in the multicap category. It is best to avoid the fund.

NFO ends 1st Oct, 08

 

Principal EmergingBluechip Fund

An open-ended equity scheme whoseprimary objective is to achieve long-term capital appreciation by investing inMid Cap and Small Cap companies. It is best to avoid the NFO.

NFO ends 10th Oct, 08

 

 

Economy:

 

• Congressional leaders and the White House agreed Sunday to a $700 billion rescue of the ailing financial industry
• Citigroup Inc. and Wells Fargo & Co. in bidding process over a possible emergency takeover of Charlotte, N.C.-based Wachovia
• The Indo-US nuclear deal has finally been passed by the US House of Representatives
• On the Indian front, inflation for the week remained unchanged at 12.14%
• Liquidity in call money markets continues to remain tight with overnight rates hitting as high as 14%

 

 

Please find details of Fixed Maturity Plans closing over the next week

 

 

Name                            : ICICI Pru FMP Series 48 - 3 Years Plan A

Tenure                          : 3 years

Indicative Yield              : 11.50%

Post-Tax Yield              :  10.20%

Closing Date                 :  Oct 01 2008

 

Name                           : ABN AMRO Fixed Term Plan Series 14 - Plan A

Tenure                         : 370 Days

Indicative Yield              : 10.70%

Post-Tax Yield              :  10.02%

Closing Date                 :  Oct 06 2008

 

Name                           : ING Yearly FMP - 366 - Series A2

Tenure                         : 366 Days

Indicative Yield              : 10.55%

Post-Tax Yield              :  10.02%

Closing Date                 : Oct 06 2008

 

Name                           : ING Quarterly FMP 91 - Series A3

Tenure                         : 91 Days

Indicative Yield              : 10.55%

Post-Tax Yield              :  9.11%

Closing Date                 : Oct 06 2008