India’s first Oil based Mutual Fund will be launched soon…
Posted on July 25, 2008
Filed Under Global happenings affecting Indian Economy, Market News & Discussions, Mutual Funds |
One more option has been added by the Mutual Fund Houses to the huge pool of types of funds, and this will add to the confusion while selecting the funds. We already have funds based on various sectors - real estate, infrastructure, energy, FMCG, technology…bla bla.. and one more has been added now - OIL! We have seen the oil price rise and oil has got importance more than the celebrities these days. Oil price has doubled in the last 2 years and hence now its in the eyes of investors.
India’s first Oil based Mutual Fund will be launched by the Fund House Benchmark Mutual Fund and it has filed an offer document with the SEBI for the same. The fund called as Oil Benchmark Exchange Traded Scheme (Oil BeES) will be open ended fund and it will be similar to the existing thematic funds/sectoral funds and it will based on the global oil prices. The minimum amount of investment will be Rs:10,000/- and the fund will invest 90% in equity and remaining 10% will be in debt and money market instruments - so it will be an agressive fund. This doesn’t mean that it will give high returns, aggression is associated with high risk. As this will have indian investors, the fund will have benchmark crude oil price in rupee terms. This fund will turn out to be an ETF after its intial offer period - the fund will charge 2.25% as entry load during its initial offer period. Before investing please consider the degree of diversification you are adding to your portfolio and actually is an oil based mutual fund necessary for you. Also the most important part remains to analyze the relationship of oil prices with the NAV of this fund..more on this in next post….
Related Post: (not auto generated)
The Price of Oil- affecting factors and it’s future
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ThePowerStocks.com Team on October 13th, 2008 2:47 pm
This blog is really nice and informative. We are pleased to know this blog is really helping people and it’s our pleasure to post informative content on this useful blog created by webmaster.
Here’s our market view on American stock market for 10th October, 2008
The stock market has collapsed - since Sept. 19 the DJIA is down 25% and the S&P 500 is down 28% and down 42% from a year ago.
How can this happen so quickly and so dramatically when so many good things have occurred? Oil is down to $82 a barrel; interest rates are very low; the dollar is up; valuation levels are extremely attractive among many blue chip stocks.
What’s the real problem? The problem that is killing the stock market is a lack of hope about the future.
Hope springs from optimism that is based on facts and history. Look at the history of America and really all of mankind. Life is full of setbacks and problems - that’s just the deal. But this too shall pass, as all scary periods have.
Doomsayers have been around forever and their batting average is zero. Buying stock is based on hope - hope for the future. If one doesn’t have hope, they shouldn’t be in this business.
So what is the best service we, as professionals, can provide for our clients?
First, discuss the fact that we are dealing with serious problems but it is not at all like 1929. The Federal Reserve and the Treasury Department are doing many things to restore confidence in the financial system. There is global coordination in attacking the problem, which is lack of confidence.
Tell your clients to look at history of our great nation and what has happened since 1776 when we faced very serious problems. The stock market actually rose steadily about six months after Pearl Harbor and until the end of WWII even though the outcome was not at all clear for several years.
No one knows when the stock market will bottom and a new bull will commence. We do know that stocks and mutual funds offer the best values we have seen since Black Monday, Oct. 19, 1987.
Almost all Americans have hope about the future of our nation, but they need help to control their normal fears.
ThePowerStocks.com Team
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