MFs FOCUS ON DIRECT PLANS

A number of mutual fund houses are focusing on 'direct plan' mode to sell their schemes, a move that may maximise the returns for the investors as against regular plans involving distributors. Under the direct plan mode, investors can directly invest in mutual fund schemes without involving distributors or agents. They are required to visit fund house website and follow the process to invest in such schemes. Since no fees would have to paid to distributors, expense ratio would be lower as compared to regular plans, which would eventually give higher returns to investors. Almost all the mutual fund houses provide direct plans, while big ones like HDFC MF, Reliance MF, ICICI Prudential MF, Axis MF, UTI MF and Birla Sunlife MF are planning to increase their shares through this route. Besides, Quantum Mutual Fund only deals in direct plans.

Most of these fund houses have specialised teams to look into these plans. In addition, they are adopting digital modes such as internet and mobiles to sell their MF products.
"Direct plans are purchased directly from MF houses, bypassing the distributor channel. The savings on commission are passed on to investors and fund houses do not have to give any fee to agents. Therefore, it is a win-win situation for Asset Management Companies (AMCs) as well as investors," Quantum Mutual Fund CEO Jimmy Patel said.
He said that institutional investors and high networth individuals (HNIs) are opting for direct plans as they are far more capable at taking informed investment decisions.
Further, retail investors are also shifting to these plans as awareness about their benefits have increased.
However, another MF expert said, "direct plans are only suited to those investors, who have sound financial knowledge and those who want to invest into simple schemes."
Patel said that direct plans are much more popular in the debt segment, mainly liquid funds. The agent's fee for liquid schemes is much lower than for equity funds and other debt schemes but the amount of investment in these funds is much larger. Overall, institutional investors and HNIs are opting for debt schemes, while retail investors are getting attracted towards equity schemes. Direct plans have come into existence since 2013 after the capital markets regulator Sebi asked fund houses to provide informed investors with direct access to MF schemes. Currently, there are 44 fund houses with an assets base of over Rs 13 lakh crore at the end of July.

CHINA MARKET CRASHES 8 YEAR LOW

China's share market nose-dived again today plummeting 8.48 per cent to an eight-year low as investors unnerved by the weak economic data on the world's second largest economy dumped their shares to lock in profit despite frantic government efforts to arrest the slide. After a brief rally last week following the USD 3.2 trillion slump, Chinese shares plunged again by 8.48 per cent. It was the worst single-day loss in eight years. The benchmark Shanghai Composite Index plunged 8.48 per cent to close at 3,725.56 points, in the sharpest daily drop since February 27, 2007. The smaller Shenzhen Component Index fell 7.59 per cent to close at 12,493.05 points. Nearly 2,000 shares fell by the 10-per cent daily limit. The plunge ended a six-day rally following government's concerted efforts to arrest the freefall that wiped nearly a third off the value of the market since mid-June. "Historically, it takes time to restore market confidence after such a long period of sharp decline. The market is expected to linger at the bottom for a while before it can stage a sure rally," China Southern Asset Management Company Limited said in a research note. The sharp drop came amid fresh data that showed China's growth continues to face strong headwinds, state-run Xinhua news agency reported. The National Bureau of Statistics said today that profits at major Chinese industrial firms dropped 0.3 per cent year on year in June, down from a 0.6 per cent growth posted in May. The preliminary Caixin China Manufacturing Purchasing Managers' Index (PMI) released on Friday retreated from 49.4 in June to 48.2 in July, the lowest since last April. Today's sudden fall was also a result of investors choosing to lock in profits following last week's rally of around 20 per cent, which was a bit "steep," China Southern Asset Management Company Limited said. Market sentiment has become increasingly fragile following the drastic ups and downs in the previous weeks. The market considers 4,000 points an "important psychological mark" and risks are believed to escalate as the Shanghai index rises above it. The recent crash which drained USD 3.2 trillion capital out of the market bankrupting millions of investors prompting the Chinese government to unveil a slew of measures to prop up the market, including reducing the number of new shares to avoid a shares glut, a police crackdown on short-selling and a six-month ban on big shareholders selling stocks. The government has launched a criminal investigation deploying in police stock regulators office. However, it seems the government orders may not have been carried out by everyone, the report said.

SENSEX SLIPS 551 POINTS ON MONDAY BLUE

The benchmark BSE Sensex found itself on a sticky wicket on Monday, which fell a huge 551 points to 27,561.38, an over 5-week low, amid fears over stricter norms on participatory notes (PNs) and a Chinese stock rout. Nifty met with the same fate, down 161 points. There was heavy selling all around as investors went around booking profits following a SIT report that Sebi should do more to identify end beneficial owners of P-Notes (PNs) and restrict their transfer. Market players felt the move would hit investments. PNs are a popular offshore derivative instrument used by overseas investors to invest in Indian stocks. Other Asian markets did no better, which ended in the red due to worries that China is headed for a sharp slowdown despite the government's efforts to revive it. The Shanghai Composite plunged as much as over 8 per cent. Further weakness in the rupee against the dollar made things worse. Starting lower, the 30-share gauge broke below the crucial 28,000-level before ending at 27,561.38, down 550.93 points, or 1.96 per cent, its biggest single-day fall since June 2. 

The NSE Nifty slipped below the 8,400-mark to settle at 8,361, down 160.55 points, or 1.88 per cent. Intra-day, it shuttled between 8,351.55 and 8,492.20. Tata Steel lost most (5.17 per cent), followed by Hero MotoCorp.
Of the 30-share Sensex pack, 29 ended lower. Only Bajaj Auto gained. Sectorally, shares of metal, capital goods, banking, power, realty, auto, oil and gas and IT all suffered losses. Broader markets mid-cap and small-cap indices didn't escape the selling pressure, which closed lower 1.38 per cent and 1.07 per cent, respectively. Globally, Hong Kong's Hang Seng closed 3.09 per cent lower while Japan's Nikkei slumped 0.95 per cent. European markets slid for the fifth day.

INVESTORS LOOSE Rs. 1.5 LAKH CRORES

Massive selling in the stock market wiped out Rs 1.50 lakh crore from total investor wealth at the BSE today as sentiments turned bearish on worries that the stricter norms for participatory notes may hit foreign investments. Besides, a sharp 8 per cent decline in Chinese stocks on worries that their economy is heading for a sharp slowdown added to the sell-off in domestic equities. Total investor wealth of BSE-listed companies plummeted by Rs 1,50,994.8 crore to Rs 1,02,62,579 crore.

SENSEX IN 3 MONTH HIGH

The BSE benchmark Sensex today not just turned things around, but did it in style when it ended the day up 323 points, its highest close in more than three months. The splendid show was primarily driven by bargain hunting in beaten-down stocks, including Sun Pharma, up 3.35 per cent.
"Indian stocks swung back as yesterday’s falls were deemed overdone, and investors hunted for value amid the price falls. It also helped that proposal to amend the Land Bill so as to give more flexibility to states was seen favourably," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas. There was considerable improvement in sentiment with the adoption of a select committee report on GST Bill by the Upper House of Parliament during the trading hours. Progress of rains and softer oil prices meant RBI gets enough headroom to consider a policy rate cut, which pushed up buying activity. Fresh buying, especially in refinery, banking, auto, power and metal provided further momentum. 

The 30-share Sensex took some early blows mainly due to initial selling, but quickly shaped up before settling the day at 28,504.93, up 322.79 points, or 1.15 per cent. It had lost 281.17 points, or 0.99 per cent, in the past two days. The broader 50-share Nifty played along, surging 104.05 points, or 1.22 per cent, to 8,633.50. The closing for both the benchmark indices is the highest since April 16. Of the 30 constituents, 22 ended with gains. Reliance Industries was the top gainer (4.26 per cent) while M&M, Sun Pharma, Bajaj Auto and HDFC too advanced.

In stark contrast, Lupin, TCS and Bharti Airtel suffered major losses. Talking sectorally, oil and gas, banking, auto and power took the centre-stage. Broader markets too aligned with the trend, with the BSE small-cap and mid-cap indices registering gains of 0.86 per cent and 1.30 per cent, respectively, on fresh buying from retail investors. Pramit Brahmbhatt, CEO, Veracity Group, said, "Local equities traded strong and added over one percent for the day. Indices gained mainly with the help of blue-chips which traded positively on value buying of shares." Most Asian stocks ended lower today tracking subdued corporate earnings numbers in the US while European stocks traded down.

KFC MEALS IN INDIAN RAILWAY

People travelling in trains can now enjoy KFC's meals on board as the fast food chain has tied up with IRCTC to start a delivery system for passengers. Now a person travelling on train can order KFC meal, while booking ticket through IRCTC from July 20 onwards, under e-catering service initiatives, KFC said in a statement. Presently, this facility is available only on 12 trains passing through New Delhi railway station. However, it will be expanded to Vishakhapatnam, Hyderabad (Kacheguda) and Bangalore (Yeshwantpur) stations over the next 10 days, the statement added. "Consumers will have to visit the IRCTC website or call on 18001034139 (Toll Free) to place their order. A password will then be sent by KFC to the consumer’s mobile phone which will have to be mentioned at the time of delivery," it said. The service will initially be limited to trains which do not have pantry cars and subsequently would be expanded to trains like Rajdhani and Duronto. E-catering service is a joint effort from KFC and IRCTC to provide fresh food to the passengers on trains. "As a much-loved restaurant brand, we think that this initiative gives us a great opportunity to bring the craveable taste and quality of KFC to our fans, even when they are travelling. We intend to expand the service to other stations over the next few days," KFC India Chief Marketing Officer Dhruv Kaul said. KFC Corporation is a subsidiary of Yum! Brands and has 19,400 outlets in 120 countries.

RBI TIGHTENS NOOSE FOR CREDIT CARDS COMPANIES

The Reserve Bank today asked banks to levy any late payment penalty on credit card customers, or report them to credit information companies, only if the payment has been due for more than three days.
For banks, RBI said they can treat a credit card as non preforming asset if the 'minimum amount due' has not been paid within 90 days from the due date.
To bring in greater credit discipline as also to provide operational flexibility to credit card issuers, RBI said the 'past due' status of a credit card account for the purpose of asset classification would be reckoned from the payment due date mentioned in the monthly credit card statement. "Consequently, in case of banks, a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the payment due date mentioned in the statement," RBI said in a notification. It further asked banks to report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, such as late payment charges only when a credit card account remains 'past due' for more than three days. The number of 'days past due' and late payment charges should be, however, computed from payment due date mentioned in the credit card statement, it added. In credit card accounts, the amount spent is billed to the card users through a monthly statement with a definite due date for repayment. Banks give an option to the card users to pay either the full amount or a fraction of it or a minimum amount on the due date and roll over the balance to the subsequent month's billing cycle.

JOB FOR MONEY OR PASSION

MONSTER SURVEY SAYS IT IS PASSION

Compensation does not seem to be the only criterion for job satisfaction in India, as only 17 per cent of the people in a survey have stated that they work for money, while 83 per cent opted to work for passion, says Monster.com.
"In today's age there are two types of employees - one for whom compensation is the criteria for job satisfaction and the other segment who pursue their passion to make careers; irrespective of pay," Monster.com Managing Director (India) Sanjay Modi said.
The revelation from Monster's poll is that the first segment is only 17 per cent as compared to the latter (83 per cent), he added.
According to the survey, 56 per cent of the respondents could not find a job that meets their passion and only 13 per cent of the respondents consider themselves fortunate to follow their passion in their current job.
Understanding this situation, Monster is launching 'Love What You Do' - a campaign that aims at provoking and inspiring people to love what they do and pursue their passion.
The campaign is launched with the vision to take the next step towards more happiness in work and more integration of passion with work life.
"With this campaign, we hope to act as an enabler pushing passion to skills and helping people find better jobs by bringing meaning to their life. Any job can be yours as long as you love what you do. Many have found theirs. Find yours," Modi added.

GREAT MARKETING MISTAKES IN NANO

RATAN TATA REGRETS

Admitting that Tata Group made a "bunch of mistakes" in the sales and marketing of Nano, iconic business leader Ratan Tata today said branding it as the 'cheapest' rather than most affordable car was the greatest flaw that distanced people from it. "Nano was made to reach out to people, (but) it never has. It is meant to be reachable throughout India with our dealerships. But we made our bunch of mistakes," Tata Sons Chairman Emeritus said during in an interaction with students of Great Lakes Institute of Management during its 11th Convocation here. He said that the biggest mistake was getting the car branded as cheapest rather than most affordable. "...And that had a negative impact on the car in the market, people did not want to be seen in the cheapest car and I think that has been our greatest deficiency that has disenabled the car to perform what it was trying to do," he said. Tata said Nano was designed by a group which had an average age of 25 or 26 and added that it was an exhilarating exercise of trying to produce an affordable car that could be purchased for a lakh of rupees. The launch of the vehicle was success far beyond expectation, he said. "Unfortunately, the lessons we learnt were perhaps to look more carefully at a situation where we had an aggressive head of government , somebody talk of Bengal Tiger, but it is (actually a) Bengal Tigress," he said in apparent reference to to his company's decision to pull out its proposal to locate the Nano manufacturing plant at Singur in West Bengal due to political opposition.
"During that year we lost a lot of excitement over the new product. We gave our competitors an opportunity to make some stories about us," he said.

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

LAST WEEK LOW, SIGNIFICANT SUPPORT.!!!

NIFTY :: 8335 (-150)

Oversold … Tecchnical Pullback

Nifty having gained  on all the Three weeks, it had corrected for  at least  One week. Reference for  Astro month is the range between  Monday to Thursday (8562 and 8332),

Nifty lost during the week because of global cues and    . Market needs to trade above the last week*s Low   to confirm this  pattern.,   

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8312, 8262, 8322 and 8515 respectively and would act as supports / resistances. Nifty is trading  above  most of   the  averages , particularly below 200 DMA, which is a matter of concern.

While Nifty continues to trade above  the  200 DMA and 50 DMA too is below  200 DMA (Golden Cross) suggesting that the Bearish  trend is   in   tact..

Technical Levels For the coming week

- Bullish above 8460 with resistance at 8535, 8600, 8675

- Bearish below 8255 with Supports at 8175, 8100, 8075

- Breakout level 8650 and the Breakdown level 8250... 

Advice for Traders

However, While the long term trend is bullish, Medium term would once again turn bullish only if Nifty is able sustain above 8550. If Nifty / scrips sustain above Friday’s Low  level, Friday’s low level could offer strong support for short term for a reasonable pullback.

Nifty had corrected for One week after Three weeks, it could once again see an uptretrend for One Week.

Weekly Open level is very important for the entire week.
Long  positions may be avoided as long as it maintains / closes below
Weekly open and vice versa.

Planetary Position

- Moon would be transiting  from Rohini in Taurus  to  Pushyami in Cancer, . .

- Sun transits in Punarvasu in 3^rd Pada  to Punarvasu 4^th PAda in Cancer.

- Mercury   transits  in  Aardra 3rd Pada Punarvasu 3^rd Pada.  . ..

- Venus transits in  Makha 2nd Pada.

- Mars transits in  Aardra in 4^th   Pada   and Punarvasu 1^st Pada.

- Saturn transits in   Anuradha constellation in Scropio sign in 1^st Pada  and in Leo Navamsa and remains in  retrograde motion from 14^th March to 2^nd August, 2015.

- Jupiter ,, transits in  Cancer in Aslesha constellation in    Pisces  Navamsa to Makha 1^st PAda.

- Rahu and Ketu continue their transit in Virgo and Pisces respectively.

eMUDHRA LAUNCH eSING SERVICES

eMudhra Limited, a leading certifying firm in the country for digital signatures, today launched eSign services. eSign is an online electronic signature service which can facilitate an Aadhaar holder to digitally sign a document within seconds. The signatures generated by eSign are legally valid and secure under the Information Technology Act, 2000, the company said. As part of the Digital India Vision, Prime Minister launched eSign services in the country on July 1.
eSign can "revolutionise" the way business and governance is conducted in the country and pave the way for a digital transformation into a paperless environment, eMudhra said in a statement. The firm which claims to be the first to start eSign services has also launched eMlocker -- eMudhra’s Digital Locker.
By using eMlocker along with eSign, one can store documents such as PAN cards, Aadhaar cards, electricity bills or any other documents electronically. One can also sign and attest them using eSign and send to anybody, it said.
Commenting on the development, eMudhra Limited Chairman V Srinivasan said, "the Government's digital India initiative is transformational and eMudhra is proud to be the first eSign service provider in the country as part of this vision. eMudhra’s eSign and eMlocker will bring a paperless revolution in India."
The eMlocker can be accessed at www.emlocker.com. Initially, its service are free for the users for unlimited number of document downloads and uploads with free eSign.