Quantum Gold Savings Fund-NFO: Review Analysis & Details

Details about Quantum Gold Savings Fund NFO: Review, Analysis, Details & Opinion.
It was recently that the Birla Sun Life Mutual Fund house came out with its Gold based ETF or Gold Exchange Traded Fund: Birla Sun Life Gold ETF-NFO (See Details) and now there seems to be a race among the mutual fund houses to launch Gold based mutual funds, EETF's and Savings Funds. So here is one from the Quantum Mutual Fund house called the Quantum Gold Savings Fund

In this article, we will analyze how good is this Quantum Gold Savings Fund NFO, whether this Quantum Gold Savings Fund offers anything new or unique for the investors and whether the investors should invest in Quantum Gold Savings Fund.

Quantum Gold Savings Fund NFO: Review Analysis & Details

Let's begin with some basic details about Quantum Gold Savings Fund.
First thing that you need to understand is that this is NOT a mutual fund, rather it's a fund of fund, or better to say "fund of single fund". Sounds Confusing? But that's what it is.
Basically, what this Quantum Gold Savings Fund will do is take money from individual investors and invest that money in their own Gold based ETF called the Quantum Gold Fund (Gold ETF - QGF). Hence, your invested money will ultimately reach the Gold ETF by Quantum Fund house.
What are the NFO dates for Quantum Gold Savings Fund?
The NFO period for Quantum Gold Savings Fund is currently open and will close on 12 May 2011. Quantum Gold Savings Fund

What is so unique about this Quantum Gold Savings Fund?
I dont see anything special about this Quantum Gold Savings Fund. What is the point in creating another fund product in the name of "Savings Fund" when the invested money is to be put in another ETF run by the same fund house?
This being an EOD product, the NAV amounts will be calculated End of the day, while if you directly invest in the Quantum Gold ETF, you can attempt to benefit from the intraday price movements as the ETF tracks the prices of gold all throughout the trading day.
Anyways, on the positive side, this has a low minimum application amount of just Rs. 500, so makes good for small investors who may like to put only small amounts of money in gold in a periodic fashion. But again, why cant the same be done directly in the Gold based ETF?
I also have objections to the name "Savings Fund" - this will track the price of gold. They may go up and might asa well go down. There is no guarantee of assured returns like those offered by regular bank "savings accounts" - like 3.5% interest assured. So why call it a "Savings Fund"?
Anyways, market works in its own ways.

Mr. Chirag Mehta will be the fund manager for this Gold Savings Fund.

The Quantum Gold Savings Fund will be listed on both NSE and BSE post the NFO period.

No tax benefit will be available in Quantum Gold Savings Fund.

What are the other competitor products available in comparison to Quantum Gold Savings Fund?
The two direct competitor products already available in the market are from Reliance and Kotak. Reliance Gold Savings Fund and Quantum Gold Savings Fund-NFO - they work exactly the same way of this Quantum Gold Savings Fund, so investors might like to check them as well.
Other than that, there is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE

Recently, HDFC came out with HDFC Gold ETF: Review Analysis & Details

Then there is the Quantum Gold Fund (Gold ETF) which is from the same Quantum mutual fund house and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme

What are the risks of investing and trading Quantum Gold Savings Fund?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Dont get fooled by the word "Savings fund" as there is no assured returns. By Savings Fund, it is meant that you put your saved money in the fund, but your returns will be subject to market prices of gold which may go up or down. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.

To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF

Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Quantum Gold Savings Fund prices and the actual godl prices and hence comes the tracking error.

Final Thoughts about Quantum Gold Savings Fund?
Nothing special - this is just another gold based (savings) fund in India where already many gold etf's are existing.

Quantum Gold Savings Fund Entry Load: Nil
Quantum Gold Savings Fund Exit Load: 1.5% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan is also available.
No tax benefit will be available in Quantum Gold Savings Fund

Vaswani Industries IPO: Review Analysis & Details of Vaswani Industries IPO

Vaswani Industries IPO Details, Review, Analysis, Opinion and information on Vaswani Industries IPO
The Vaswani Industries Company from Chattisgarh which operates in metal sector, has come out with its Initial Public Offering or IPO. The company is in coal-based sponge iron products and has a good product line which includes Induction Furnance, Sponge Iron, Power, Steel ingot/billet, Rolling Mill, TMT Bars, Forgings & Casting, etc.
In this article, we will look at the Review, Analysis and Details of the Vaswani Industries IPO.

Vaswani Industries IPO: Review Analysis & Details

Some basic details first about the Vaswani Industries IPO, which are available as of now: Vaswani Industries

- The size of Vaswani Industries IPO is around 45 Crore Rs. INR

- The company is in the business of coal-based sponge iron metal processing and similar iron products like Induction Furnance, Sponge Iron, Power, Steel ingot/billet, Rolling Mill, TMT Bars, Forgings & Casting

- Along with the iron ore business, the company also generates 11.5 MW of power. The surplus power is sold to private power companies as well as the State Electricity Board.

- The company has been in business for last 2 decades

What are the primary reasons for Vaswani Industries to come out with the Vaswani Industries IPO?
The main reason for any company to come out with an IPO is to collect money from the public through the standard process of listing on stock exchanges.
The Vaswani Industries IPO is expected to collect around 45-50 Crore Rs.

What is the issue size of the Vaswani Industries IPO?
Around 45-50 Crore Rs is the size of the Vaswani Industries IPO.

What is the price band of Vaswani Industries IPO?
The price band for Vaswani Industries IPO is Rs. 45 to 49 Rs per share.

How many shares will be sold in the Vaswani Industries IPO?
The total no. of shares to be sold through this IPO is arouond 10 million or 1 Crore shares.

What are the IPO dates for Vaswani Industries IPO
The IPO dates for Vaswani Industries IPO are from 29th April 2011 to May 3, 2011

How will the capital raised by Vaswani Industries IPO be used?
The capital raised through this IPO will be used for 3 primary reasons:
- Long term working needs
- General Expenditure
- Repayment of Loans

Other Current IPO's: Innoventive Industries IPO

Any ratings given to Vaswani Industries IPO?
yes, a rating of 2 out of 5 has been provided to this IPO by ICRA.

What are the analysts recommendations and business results for Vaswani Industries IPO?
For the 7 month period at October 2010 end, the company reported a Total Income of Rs.68.78 crores, and the Profit After Tax was at Rs.2.69 Crores.
Not much of information is available about the analysts recommendations. Going by the ICRA rating of 2 out of 5, it indicates that company does not have very sound fundamentals - investors need to weigh their pros and cons as per their investment needs and risk appettite.

Ashika Capital are BRLM Book Running Lead Managers to the issue

Innoventive Industries IPO: Review Analysis & Details of Innoventive Industries IPO

Innoventive Industries IPO Details, Review, Analysis, Opinion and information on Innoventive Industries IPO
The Innoventive Industries Company from Pune which operates in the multi-product engineering sector, has come out with its IPO or Initial Public Offering or IPO which has opened today.
In this article, we will look at the Review, Analysis and Details of the Innoventive Industries IPO.

Innoventive Industries IPO: Review Analysis & Details

Some basic details first about the Innoventive Industries IPO, which are available as of now: Innoventive Industries

- The size of Innoventive Industries IPO is around 220 Crore Rs. INR

- The company is in the business of multi-product engineering. It manufactures various engineering products like auto components, steel tubes, etc which are used in a variety of different industries

- The company has 6 different manufacturing units spread in Pune and Silvassa

- The company not only has market in India, but also supplies internationally through exports. It has a strong large client base of around 700+ clients which indicates its good business position

What are the primary reasons for Innoventive Industries to come out with the Innoventive Industries IPO?
The main reason for any company to come out with an IPO is to collect money from the public through the standard process of listing on stock exchanges.
The Innoventive Industries IPO is expected to collect around 220 Crore Rs.

What is the issue size of the Innoventive Industries IPO?
Around 220 Crore Rs is the size of the Innoventive Industries IPO.

What is the price band of Innoventive Industries IPO?
The price band for Innoventive Industries IPO is Rs. 117 to 120 per share.

How many shares will be sold in the Innoventive Industries IPO?
The total no. of shares to be sold through this IPO is not known.

What are the IPO dates for Innoventive Industries IPO
The IPO dates for Innoventive Industries IPO are from 26th April 2011 to 29 April 2011

How will the capital raised by Innoventive Industries IPO be used?
The capital raised through this IPO will be used for 3 primary reasons:
- Further expansion of business, production and manufacturing capacity
- General Expenditure
- Repayment of Loans

Other Current IPO's: Future Ventures IPO

Any ratings given to Innoventive Industries IPO?
No info about that as of now - will be updated once we have the details.

What are the analysts recommendations and business results for Innoventive Industries IPO?
Most of the analysts and market experts believe that this will be a long term hold. The business area this company is in is expected to grow steadily. The company fundamentals as reflected by its financial results show a good picture.
In the past year's first nine months, the company reported a total revenue of Rs 457.02 crores and net profit after tax of Rs 36.92 crores INR.
Compared to its closest peer like Tube Investments, Innoventive Industries at its upper price band is quoted to be 11x the FY11 earnings, while Tube Investments is currently at 17x. This might look like a good opportunity through this IPO.
The only concern is that this IPO from Innoventive Industries is open in parallel to that of the Future Ventures IPO (See Details). This might cause the Innoventive Industries IPO to receive a less than expected response.
However, these are market speculations and market works in its own ways - investors need to weigh their pros and cons as per their investment needs and risk appettite.

Axis Bank and Avendus Capital are BRLM Book Running Lead Managers to the issue

Birla Sun Life Gold ETF-NFO: Review Analysis & Details

Details about Birla Sun Life Gold ETF NFO: Review, Analysis, Details & Opinion.
High on the heels of the other fund houses, the Birla Sun Life Mutual Fund house has also joined the bandwagon and launched its Gold based ETF or Gold Exchange Traded Fund

In this article, we will analyse how good is this Birla Sun Life Gold ETF NFO, whether this Birla Sun Life Gold ETF offers anything new or unique for the investors and whether the investors should invest in Birla Sun Life Gold ETF.

Birla Sun Life Gold ETF NFO: Review Analysis & Details

Let's begin with some basic details about Birla Sun Life Gold ETF.

What are the NFO dates for Birla Sun Life Gold ETF?
The NFO period for Birla Sun Life Gold ETF will open on April 25th, 2011 and will close on 9 May 2011. Birla Sun Life Gold ETF
What is so unique about this Birla Sun Life Gold ETF?
This is another Gold based ETF which is being lauched in the Indian Mutual Fund and ETF market. The Birla Sun Life Gold ETF will track the performance and prices of physical gold in the domestic gold market. Being an ETF or Exchange Traded Fund, this will also given short term traders a good opportunity to trade the tick by tick price movements and benefit.
Anyways, there appears nothing unique about this Birla Sun Life Gold ETF as compared to other Gold based ETF's which are already there in the market.

The minimum application amount for Birla Sun Life Gold ETF is Rs. 6,000 and afterwards in multiples of Rs. 2,000 thereafter.
The face value for each unit of ETF will be Rs. 10.

Mr. Satyabrata Mohanty will be the fund manager for this Gold ETF.

The Birla Sun Life Gold ETF will be listed on both NSE and BSE post the NFO period.

No tax benefit will be available in Birla Sun Life Gold ETF.

What are the other competitor products available in comparison to Birla Sun Life Gold ETF?
There is a lot of choice for Gold based ETF's as there are a lot of Gold based ETF's and Gold based Mutual Funds available:
Here is the List of Gold ETF India available for trading on NSE

Recently, HDFC came out with HDFC Gold ETF NFO: Review Analysis & Details

Then there is the good old Quantum Gold Fund (Gold ETF)

and ICICI Prudential Gold ETF, then SBI GETS-SBI Gold ETF NFO Review: SBI Gold Exchange Traded Scheme

Then there is the recently lauched Reliance Gold Savings Fund and Kotak Gold Savings Fund

What are the risks of investing and trading Birla Sun Life Gold ETF?
Since this is directly tracking the prices of Gold in the domestic Indian market, the investor will have to take the risk of decline in the Gold prices. Although gold prices (along with silver) have been shooting up and up in the recent times, there is no guarantee that it will continue to do so in future as well.

To udnerstand this, the best way is to look for historical gold prices. If you are interested in looking at how Gold prices have performed historically, see Gold ETF: Historical Performace of Gold ETF

Another risk comes in from the tracking error. Remember, the fund manager doesn't invest all your money in gold. Only around 95% is invested in gold, while rest is kept in debt instruments and cash holding, so as to take care of creation of new units as per the demand and redemption requests. Hence, there may not be a tick by tick correlation between the Birla Sun Life Gold ETF prices and the actual godl prices and hence comes the tracking error.

Other Gold Schemes Currently Open: Quantum Gold Savings Fund

Final Thoughts about Birla Sun Life Gold ETF?
Nothing special - this is just another gold based ETF in India where already many gold etf's are existing

Future Ventures IPO: Review Analysis & Details of Future Ventures IPO

Future Ventures IPO Details, Review, Analysis, Opinion and information on Future Ventures IPO
The Future Ventures Company from the famous Kishore Biyani's Future Group who is known as the king of retail business in India, has come out with its IPO or Initial Public Offering or IPO which has opened today. Although there are still a few days for the IPO to open (on 25th April), there is a lot of buzz already in the market about this IPO.
In this article, we will look at the Review, Analysis and Details of the Future Ventures IPO and try to do the Review and analysis of Future Ventures IPO.

Future Ventures IPO: Review Analysis & Details

Some basic details first about the Future Ventures IPO, which are available as of now: Future Ventures

- The size of Future Ventures IPO is around 750 Crore Rs. INR

- The company is in the business of Organised Retail with the famous well-established and well recognized super store brands like Big Bazar, Pantaloons, etc.

- In the past also, the Futuer group has come out with successful IPO's for Pantaloon Retail (4 Crore IPO in 1992) and Future Capital Holding IPO for 400 Cr Rs. in 2008

- However, this Future Ventures IPO is for an investment company (as the name "ventures" suggest). It is reported that the money collected from this IPO will be used for investments in emerging areas of fashion and food

What are the primary reasons for Future Ventures to come out with the Future Ventures IPO?
The main reason for any company to come out with an IPO is to collect money from the public through the standard process of listing on stock exchanges.
The Future Ventures IPO is expected to collect around 750 Crore Rs.
The proceeds of this IPO will be used for providing capital for investments in food and fashion sectors of business.

What is the issue size of the Future Ventures IPO?
Around 750 Crore Rs is the size of the Future Ventures IPO.

What is the price band of Future Ventures IPO?
The price band for Future Ventures IPO is Rs. 10 to 11 Rs. per share. Minimum bid will be for 600 shares and in multiples of 600 shares after that.

How many shares will be sold in the Future Ventures IPO?
The total no. of shares to be sold through this IPO is not known.

What are the IPO dates for Future Ventures IPO
The IPO dates for Future Ventures IPO are from 25th April 2011 to 28 April 2011

How will the capital raised by Future Ventures IPO be used?
The capital raised through this IPO will be used for further expansion and to meet investments needs for expansion into new areas of business like fashion, food, etc.
Basically, being a "venture" comapny, this Future Ventures company makes investments in several other comapnies by picking up stakes in them. As of now it is reported to have stakes in 13 different companies. The money collected from this IPO will also be used to increase that stake and invest in new areas of business.

Other IPO's currently Open:
Innoventive Industries IPO

Muthoot Finance IPO

Any ratings given to Future Ventures IPO?
No info about that as of now - will be updated once we have the details.

What are the analysts recommendations and business results for Future Ventures IPO?
There are a few good points about the Future Ventures Company:
- The company is backed up with years of experience in the Indian Oraganised Retail space. Being teh pioneer on the retail front, the leadership potential of Future group is well established
- The company is reported to have received a mega food project in Karnataka
- Food and Fashion seems to be the area of focus and better profitable business opportunities for the company and the market as a whole
However, there are a few concerns as well:
With the interest rates rising, the inflation shooting up the roof and tight economical situation in the country and the world - these factors have a direct impact on the retail business. People should remember the 2008 time when everything went into problems. Although that is something that the entire market suffers, if there are such macro-economic problems.
Overall, the market experts are advising the investors to apply for this Future Ventures IPO.

Muthoot Finance IPO: Review Analysis & Details of Muthoot Finance IPO

Muthoot Finance IPO Details, Review, Analysis, Opinion and information on Muthoot Finance IPO
The Muthoot Finance Company from Kerala which is a family run business, has come out with its IPO or Initial Public Offering or IPO which has opened today.
In this article, we will look at the Review, Analysis and Details of the Muthoot Finance IPO and try to do the Review and analysis of Muthoot Finance IPO.

Muthoot Finance IPO: Review Analysis & Details

Some basic details first about the Muthoot Finance IPO, which are available as of now: Muthoot Finance Logo

- The size of Muthoot Finance IPO is around 900 Crore Rs. INR

- The compnay is in the business of Gold Loan lending, i.e. they provide loans to individuals against gold as repo security

- It is a NBFC i.e. a Non Banking Financial Company

What are the primary reasons for Muthoot Finance to come out with the Muthoot Finance IPO?
The main reason for any company to come out with an IPO is to collect money from the public through the standard process of listing on stock exchanges.
The Muthoot Finance IPO is expected to collect around 825 to 900 Crore Rs.
The proceeds of this IPO will be used for providing more loans to gold owners and other general corporate expenses.

What is the issue size of the Muthoot Finance IPO?
Around 825 to 900 Crore Rs is the size of the Muthoot Finance IPO.

What is the price band of Muthoot Finance IPO?
The price band for Muthoot Finance IPO 160 to 175 Rs. per share.

Other Current IPO's: Future Ventures IPO

Innoventive Industries IPO

How many shares will be sold in the Muthoot Finance IPO?
The total no. of shares to be sold through this IPO is 5.15 Crore shares.

What are the IPO dates for Muthoot Finance IPO
The IPO dates for Muthoot Finance IPO are from 18th April 2011 to 21 April 2011

How will the capital raised by Muthoot Finance IPO be used?
The capital raised through this IPO will be used for providing more loans to gold owners and other general corporate expenses like capital requirements in future.

Any ratings given to Muthoot Finance IPO?
It has receied a 4 out of 5 rating from Crisil & ICRA.

What are the analysts recommendations and business results for Muthoot Finance IPO?
There are a few good points about the Muthoot Finance Company:
- There is a 7% stake held in the company by Private investors like Baring India, Matrix Partners India, Kotak India PE, Welcome Trust UK and Kotak Investment Advisors. That shows the good business performance and the confidence that is there in this company.
- The company has around 20% market share of the gold loan market which is quite impressive. The total gold loan market of India is estimated to be around 66 thousand crore Rs.
- A pan India presence in 25 different states with more than 2600 branches adds to company's strengths
- A healthy outstanding advance number reported to be around 13,000 Crore Rs. and a gold depopsit of around 97 tonnes
The concerns are over high volatility of Gold Prices, which we've seen in the recent past and the tighter regulations which may come from RBI for such NBFC's in gold loan business. Overall, the market experts are advising the investors to apply for this Muthoot Finance IPO.
ICICI Securities, HDFC Bank and Kotak Mahindra Capital are the BRLMs - Book Running Lead Managers to the Muthoot Finance IPO.

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