Archive for August 2, 2009

Is index-aping lucrative?

Publication: Business Standard;   Date: Aug 9, 2009;    Section: Marketing & Investing

Why a well-managed and diversified fund will always beat a benchmark.

A lot has been written about index funds in the past two years, with most proponents recommending it as a key component in a portfolio. The overall argument being that most diversified equity funds are unable to beat the index, just as in the case of Western markets. The other point was that index funds were a low-cost alternative to exposure in the stock markets. On the other hand, most asset management companies prided themselves on their active stock picking skills and hence made a lot of noise with their performance statistics during bullish periods. Do index funds really do better than actively managed funds in India?

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Not enough incentives

Publication: Business Standard, Mumbai;   Date: 2 August 2009;    Section: Markets & Investing;  

While the government is offering subsidy and builders are constructing affordable houses, one should still wait.

Earlier this week, the headlines of most newspapers talked about the finance minister’s measures to pump the housing sector. For the aam aadmi, the big announcement was the one on a 1 per cent interest subsidy for loans up to Rs10 lakh for a year, provided the purchase is up to Rs 20 lakh. Several questions come up on whether the aam aadmi can really benefit from such measures based on the current situation in the real estate industry.

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