Investments

Stock Market

As expected Indian stock market was range bound for last 2 weeks. Market didn’t like some of the budget proposals.

Positives –Attractive valuations, Reduction in Income Tax rates and some indirect taxes, Consumption friendly budget.

Negatives – Lack of FII/retail participation, Inflation pressures & farm loan write off in budget.

Market is expected to be range bound and move more or less according to global cues. Long term investors have a good opportunity to enter the market at these low levels.

 

Commodities

Commodity prices including gold, oil and metals are on fire due to combination of various reasons – supply shortage, investors moving away from stocks to commodities, speculations. Prices of agri-commodities like rice, wheat, veg oil etc are also rising rapidly as cultivation area is expected to decline.

 

Mutual Fund

New fund offer (NFO) from Tata Mutual Fund -Tata Growing Economies Infrastructure Fund. Open Ended Fund. NFO - 18th Feb-March18th. The fund will invest in Infrastructure sector of India and other emerging economies. It has two variants – Plan A and Plan B. Plan A will invest major portion outside India and will attract short and long term capital gain tax. Plan B will invest predominantly in India so long term capital gains tax will be zero.

•             Minimum investment Rs 10,000/-.

•             Benefit of country diversification.

•             SBI branches are selling this scheme. Please contact your nearest SBI branch or us.

 

Life Insurance

As discussed in last issue - SBI Life Insurance Company launches Unit Plus Elite Plan on 15th Feb. It suits needs of NRIs. A unit linked plan which invests in stock market. SBI Life has a very good performance record for their old schemes like – Unit Plus II.