[04:28:12 PM] => Welcome to the live chat session at myiris.com
[04:29:35 PM] => Myiris: Mr. Dheeraj Singh, Fund Manager - Debt, IL & FS Mutual Fund will be joining us in a few minutes.
[04:29:46 PM] => DISCLAIMER

[04:30:07 PM] => Mr. Dheeraj Singh is the Fund Manager, IL & FS Mutual Fund. At the time of this conversation / chat, Mr. Singh may or may not have positions in the stocks mentioned below, although holdings may change at any time.

[04:30:20 PM] => The views expressed by Mr. Dheeraj Singh is based upon information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such. Mr. Singh, his company and its affiliates, officers, directors, partners, and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed. None of the information contained herein constitutes, or is intended to constitute a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.

[04:38:07 PM] => Lastly the views expressed by Mr. Singh have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website www.myiris.com.

[04:38:32 PM] => Myiris : Welcome to the chat session, Mr Singh.

[04:39:04 PM] => Rajeev : What are your views on the interest rates?
[04:39:27 PM] => DS : Interest rates are expected to remain range bound in the short to medium term (1-3 months). While a sharp upswing in rates doesn't seem likely, substantial declines in interest rates are hampered by RBI's refinance rates and structural impediments like fixed costs of the banking system.

[04:41:46 PM] => Manju : Where do you see the growth rate of the Indian economy in the near future?
[04:43:37 PM] => DS : The growth rate in the current year is expected to be lower than the officially estimated 6% pa. It might even be lower than the 5.2% growth seen last year. Healthy agricultural production due to the good monsoons and growth in the services sector could be a silver lining. Revival in industrial activity is dependent on the Government's measures to pump prime the economy through increased capital expenditure on infrastructure projects etc.

[04:44:09 PM] => Kunjal : What are your expectations with regard to bank rate cut? Will it materialize and will it have any impact on the returns of debt funds?
[04:44:41 PM] => DS : Barring unforeseen circumstances, we should see a bank rate cut, probably in the mid term review of the monetary and credit policy (due sometime in Oct). It may not have a significant impact on returns from debt funds in the medium to long term as the market seems to have already discounted such a cut. In the short run however, there might be opportunities to make trading gains.

[04:45:06 PM] => Albert 546 : What are the negative factors that can adversely affect the interest rate view?
[04:46:01 PM] => DS : Some of the negative factors to be considered are :
[04:46:10 PM] => 1. Sharp deterioration in fiscal deficit
[04:46:19 PM] => 2. Exchange rate volatility due to higher oil prices, capital outflows, surge in imports.
[04:46:31 PM] => 3. Any sharp surge in industrial activity leading to large demand for commercial credit.

[04:47:37 PM] => S_das: What factors should investor take into account while investing in debt funds?
[04:49:28 PM] => DS : Investor should look at their investment horizon before investing in debt funds. If the investment horizon is short (say less than a month) and the need is for high liquidity, a liquid fund could be a better option. For investments over a medium term (generally 6 months or more), income funds are a better bet. All in all debt mutual funds (be it liquid or income) would still be a better value bet (in terms of a combination of returns, liquidity and convenience) than other alternative investment avenues.

[04:50:43 PM] => Shankar : What factors can be attributed to high inflows into debt schemes in the current year?
[04:51:13 PM] => DS : Convenience offered by mutual funds, good returns posted in the recent past, relative poor performance of other competing investment avenues like equities, real estate etc. have contributed to the popularity of debt funds.

[04:53:15 PM] => Subhash : What kind of returns do you expect from debt funds over the next one year under the present conditions?
[04:54:54 PM] => DS : One can expect returns in the range of 8-10% going forward.

[04:56:35 PM] => Mahindra : Will the interest rate cuts by the US Federal Reserve have an impact on the Indian debt market?
[04:56:57 PM] => DS : Interest rate cuts by the US Fed do have a sentimental impact on the Indian debt market. A cut by the US fed gives more leeway to RBI to cut rates.

[04:57:27 PM] => Gonghe: How do you structure the portfolio of a debt scheme? What are the factors taken into consideration?
[04:58:03 PM] => DS : Inputs that go into construction of the portfolio of a debt scheme are broadly :
[04:58:20 PM] => 1. Profile of liabilities (e.g. are the investors mostly short term or long term)
[04:58:34 PM] => 2. Views on interest rates (goes into deciding the portfolio duration to be maintained)

[04:59:02 PM] => Santosh : Do you believe in constant churning of the portfolio or do you follow a buy-and-hold strategy?
[04:59:29 PM] => DS : Almost all fund portfolios are actively managed i.e. portfolios are churned based on market views. Ours is no different. However, there is a limit to portfolio churning due to the relative lower liquidity of several instruments as well as lack of alternative deployment avenues.

[05:08:36 PM] => Ramnath: While investing in rated papers do you go by the market perception or is there an internal evaluation?
[05:09:00 PM] => DS : The decision is based on a combination of internal assessment and market perception (One can never ignore the market).

[05:09:21 PM] => Arthi : Mr. Singh, Do you invest in unrated papers?
[05:09:31 PM] => DS : No, we do not invest in unrated papers

[05:09:45 PM] => Raghu: Do you plan to launch any new schemes in the near future?
[05:11:10 PM] => DS : Yes, we do have plans to launch some more schemes in future to broaden our product offerings. Specifically, we plan to launch a gilt fund in the near future, followed by a fixed maturity plan. An equity indexed fund is also on the drawing board.

[05:11:48 PM] => Manohar 54: Which funds would you advise to put the money in? Income or Gilt?
[05:12:56 PM] => DS : Depends on the risk taking ability of individuals. Gilt funds returns would be slightly more volatile than income funds since the gilt market is more active and liquid enabling better price discovery on a day to day basis. (This does not mean that gilts are bad per se - it's just a quirk of the Indian debt market that gilts seem to carry more interest rates risk just because their market is more efficient)

[05:13:32 PM] => Synthia : Is this the time to enter the secondary market via mutual funds?
[05:14:12 PM] => DS : I presume you are talking of equities. I think the question is better directed towards an equity fund manager, which I am not. In general, however, I would advise retail non-savvy investors to take an exposure in the equities market through mutual funds.

[05:15:10 PM] => Soumya : What returns I can expect in the next 1 to 1.5 years in debt funds?
[05:16:48 PM] => DS : A range of about 8-10% returns over a one year horizon should be a reasonable benchmark.

[05:17:49 PM] => G_Malshe: Vickers Systems International is now a part of Eaton Hydraulics, I would like to know more about it.
[05:18:05 PM] => DS : Sorry, I have no idea of this.

[05:18:28 PM] => Rajesh: Long term prospect of HFCL?
[05:19:13 PM] => DS : I think this question is better directed towards an equity analyst / fund manager, which I am not.

[05:19:40 PM] => ChitaleDeepak : Hello Mr Singh. How would you rate Hind Lever Chemicals at Rs. 155 as a long-term investment? Why is this share so thinly traded?
[05:20:03 PM] => DS : I am not an expert on the equity markets. Therefore am unable to answer the question.
[05:20:48 PM] => DS : I am not an expert on the equity markets. Therefore am unable to answer the question.

[05:21:03 PM] => Sumahema : Is Pharma stocks is dependable for a one year view. If so what to buy now?
[05:21:19 PM] => DS : I think this question is better directed towards an equity analyst / fund manager.

[05:21:44 PM] => Jiti_a :When the stock market will revive?
[05:22:06 PM] => DS : Hopefully sooner, rather than later!!

[05:22:55 PM] => Amrita _41: What do you think about Apollo Hosp and Agro Dutch Ind.?
[05:24:22 PM] => DS : Unfortunately I’m not an equities expert. I think this question is better answered by equity analysts/fund mangers.

[05:24:47 PM] => v_kandaswamy : What is your outlook on the Cement Industry for the current year?
[05:25:14 PM] => DS : Though I’m personally not an expert I feel that pump priming measures by the government should bode well for all infrastructure related industries like cement etc.

[05:25:57 PM] => v_kandaswamy : What factors do you attribute for the sharp fall in Cement prices in south compared to other regions?
[05:26:19 PM] => DS : AS I said I’m not an expert in this field. Sorry to express my ignorance here.

[05:26:46 PM] => jpratik : Is Nath Seeds a well managed company and does have any special skills in biotech?
[05:27:06 PM] => DS : Once again, sorry to express my ignorance.

[05:27:31 PM] => jpratik : Does Trent have the potential to be a big multibagger in case of a retail boom that is being talked about?
[05:27:57 PM] => DS : Sorry again. Wished I had an idea of the company.

[05:28:20 PM] => v_kandaswamy : Which sectors will outperform sensex this year? Which will perform very badly?
[05:28:47 PM] => DS : Your question is suited for equity fund mangers. Unfortunately I manage fixed income portfolios. Anything on interest rates, money supply etc. etc. ???

[05:30:15 PM] => v_kandaswamy : Why have mutual funds failed to deliver in India?
[05:30:48 PM] => DS : I’ll probably beg to differ slightly here. I think investor’s expectations from Mutual Funds were driven to sky-high levels. If you analyze fund performances dispassionately, you’ll probably find that investors have been better off investing through funds than through direct equity investments. Trouble is we don’t look at our own backyard, and try to blame the neighbor for all our ills.
[05:31:08 PM] => Just look at how well debt funds have done as compared to other fixed income investment avenues– just to give an example of the superiority of mutual funds as an investment vehicle.

[05:31:31 PM] => v_kandaswamy : What is your expectation on Sugar Industry? Is it time to check in sugar stocks?
[05:32:14 PM] => DS : Once again, I’m not an expert.

[05:34:51 PM] => myiris : Thats all we have time for in this chat session.

[05:35:43 PM] => myiris: We thank Mr. Dheeraj Singh for sparing time to share his views with investors.

[05:36:14 PM] => myiris : Thank you all for your participation.