[04:44:08 PM] => Myiris
: Dear viewers kindly bare with us , the live chat with Mr.
Chaturvedi will start shortly. We apologise for the delay
[04:53:15 PM] => Disclaimer
[04:54:03 PM] => Mr.
Ved Prakash Charturvedi is the CEO of Chola Mandalam Cazenove
AMC . At the time of this conversation / chat, the Fund House
may or may not have positions in the stocks mentioned below
, although holdings may change at any time.
[04:55:39 PM] => The
views expressed by Mr. Chaturvedi 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. Chola Mandalam Cazenove from time to time, may buy
or sell 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.
[04:56:26 PM] => Lastly
the views expressed by Mr. Chaturvedi 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.
[04:56:49 PM] => Myiris : Welcome
to the live chat session Mr. Chaturvedi
[04:57:47 PM] => VPC : My apologies
to the participants for this small delay
[04:58:26 PM] => Ronnie: Since
January FIIs bought close to 11000 crore Rs (net) and MFs
sold close to 3000 crore Rs (net) worth of equity. Why should
you look south when FIIs (gurus of the market) look north?
[04:59:19 PM] => VPC:MFs
in India being closer to the ground situation at times read
and interpret the news differently from FIIs as happened in
the recent past.
[04:59:42 PM] => Pawang: Do you
see M&A activity happening in the Banking sector?
[05:00:02 PM] => VPC
: M&A activity in the banking sector has already started and
will gather pace going forward. Small banks will become unviable
[05:00:27 PM] => Ranjit:
Will Badla money enter the MF Industry ?
[05:00:53 PM] => VPC : Badla money
will find a good opportunity in liquid funds and some Badla
money is already coming in the industry.
[05:01:31 PM] => Munmun:
Is it a better choice to buy units of a new debt fund or buy
into an existing debt fund (dividend scheme)
[05:02:05 PM] => VPC
:Both are same as debt fund portfolio are marked to market
and yields would be similar
[05:03:11 PM] => sanjay:
Should the small investor venture into Mutual funds given
that all the MFs have succeeded is in destroying investor’s
hard earned money?
[05:03:51 PM] => VPC:The small
investor should definitely enter mutual fund in debt, balanced,
equity products depending his/her risk profile. In the last
6 years, investors in above mentioned products have broadly
made good returns.
[05:04:55 PM] => Antara:
What are your views on the future direction of the Indian
Mutual Fund Industry?
[05:05:30 PM] => VPC :The Indian
mutual fund industry will continue to grow rapidly because
it is one of the most efficient financial intermediaries here.
Overseas examples prove this.
[05:06:01 PM] => Pramod: What
is your opinion on the future of index funds?
[05:06:42 PM] => VPC
:Index funds are good products especially when markets are
low. These offer good long term opportunity for serious investors.
[05:07:13 PM] => Agalgatti: Do
you see M&A happening in Mutual Fund Industry?
[05:08:04 PM] => VPC
: M&A has already happened in the mutual fund industry and
this will gather pace.
[05:09:53 PM] => Sachin: Are mutual
funds facing redemption pressure? Is it one of the reasons
why they are selling? Or, is it that they have a contrarian
view compared to other institutional investors?
[05:11:15 PM] => VPC
:Broadly mutual funds are not facing the huge redemption pressure.
Some funds have sold to book profits or to provide for dividends.
[05:12:06 PM] => Prashant Mahesh:
Should I entrust all my money to a single fund house or should
I diversify within mutual funds also? Which segment in the
technology segment will bounce back if at all it happens?
[05:12:56 PM] => VPC
: It is always better to diversify among mutual funds as this
diversifies fund manager risk. High quality companies with
a good offshore model will succeed in the technology segment.
[05:13:23 PM] => Pankajc: What
do you recommend to invest in - old economy or new economy
[05:13:52 PM] => VPC
: A judicious mix of both would diversify risk. Ideally, one
should invest in high quality companies in the old and new
economy sectors. Both have to coexist.
[05:16:08 PM] => Paulsk: I have
number of NRNR deposits which have been renewed a number of
[05:16:47 PM] => My
questions are as follows:1) Can I now ask the bank to credit
all the interests earned from these deposits to my NRE account?
How will the interests be handled for deposits which have
been renewed number of times?
[05:25:01 PM] => VPC
: This question is out of the perview of this chat
[05:25:29 PM] => Payal: Why have
volumes fallen so drastically?
[05:25:57 PM] => VPC
: Volumes have fallen for various reasons. The new system
of daily settlements, the global decline in equity prices
and overall concern regarding performance of companies and
their share prices as economic growth slows down.
[05:26:25 PM] => Sanjay: How can
a retail investor can use the derivates to his advantage?
What should be the Investment strategy after 2nd July?
[05:26:57 PM] => VPC
: A retail investor can hedge his / her position thereby protecting
downside. Also, a retail investor can leverage through derivative
products to enhance returns depending on a market view.
[05:28:11 PM] => Yuyutsu: Everyone
says that MFs in India are yet to mature. What are general
[05:29:07 PM] => VPC
: Mutual funds in India have come up the learning curve over
the past decade. There is higher quality fund management,
more investor oriented selling and a higher level of investor
servicing. However, we have to further improve in these areas
which would generally characterize a mutual fund industry.
[05:32:32 PM] => Myiris : Mr.
Chaturvedi has received an urgent call , we request the participants
to kindly bare with us.
[05:33:40 PM] => Ujval: Does the
current trend of increased fixed income mobilisations indicate
a disinterest in equiities that will last.
[05:34:11 PM] => VPC:
As the equity markets have declined over the past few months
in India and globally, interest in equities has come down.
Hence, debt funds are witnessing higher mobilization. This
trend will continue for sometime.
[05:34:44 PM] => JK: What are
your thoughts on the Capital Goods Industry on a whole and
Cummins India specifically?
[05:35:40 PM] => VPC:
The capital goods industry would benefit from the investment
in infrastructure that should take place for a growing economy
like India. This would be spread over a period of time and
hence one should be patient and look for returns from the
sector only over a medium time frame.
[05:38:34 PM] => Kajol: Dear sir,
Which sector will out perform the index.Is is worth applying
for Rs 3-4, tech fund.
[05:39:00 PM] => VPC:
Broadly speaking, high quality companies which are well managed
will outpeform the index. They could be in any sector. Critically
speaking a tech fund would give returns over a medium term
time frame and investors in these funds would only benefit
if they have a medium term view.
[05:39:54 PM] => Manish: Is market
bottoming out? Should I start with bottoms up approach now?
[05:40:39 PM] => VPC:
A bottom-up approach will help get good medium term returns
in any market. Specially in the current market where valuations
have come down, value oriented bottom-up approach to stock
picking will help.
[05:41:04 PM] => Jajoo: Have we
finally got into a recession. Where do we go from here
[05:41:26 PM] => VPC:
The economic growth is still above 5% in India. This cannot
be called a recession. The growth rate has slowed down because
of decline in domestic business confidence and consumer confidence
leading to sluggish demand. A good monsoon and a stable global
and domestic business climate should help in boosting demand.
[05:41:58 PM] => Ramanp: what
is your opinion on technology funds?
[05:42:42 PM] => VPC:
Technology funds would give returns in line with the technology
sector. The outlook for the sector is sanguine for the medium
term but is somewhat unclear in the immediate future. Hence,
investors with a medium term view should look at this sector.
[05:43:24 PM] => Karthikeyan:
: UTI I beleive has had over 1500 crs redemption pressure
, pvt. mutual funds have had a net to net redemption on Equity
MF\'s as reported by AMFI - how are you saying that the Indian
MF\'s have not faced redemption pressure
[05:44:24 PM] => VPC:
The total mutual fund industry in India is approx. Rs.100000
crores in size. At any point of time a redemption of upto
3% of the total industry size can well be expected and should
be managed by the industry in the normal course. Thus as I
said earlier, there is no huge redemption pressure and infact
some domestic funds are sitting on cash at present.
[05:44:51 PM] => Ayan: Sir in
the aftermath of recent meltdown in indian equity market what
is the houseview for the rest of the year.Any particular sector
where the fund is more bullish
[05:45:24 PM] => VPC
: I have already answered it above
[05:45:52 PM] => Myiris : Thank
you participants but thats all for now
[05:47:03 PM] => Myiris : We thank
you Mr. Chaturvedi for a brief insight into our markets and
the MF Industry as a whole
[05:49:28 PM] => Myiris : Dear
Participants , kindly do not forget to log on on Friday ,
July 6, 2001 to share your views and ask your questions to
Mr. Girish Nadkarni - Director TAIB Securities India Ltd.
[05:50:10 PM] => Myiris : Thank
You Once again
[05:50:32 PM] => Myiris : This
chat session is now closed