Readings: Index Funds, Consume now & pay later, Middle class lifestyle
- Knowledge@Wharton: Beneath India’s Choppy Stock Markets, Index Funds Gain in Strength
Passive index funds are gaining popularity as Indian mutual funds, including active funds, grew by 80% to $140 billion (Rs. 556,730 crore) between October 2006 and October 2007.
. . . in the past two years, passively managed, low-cost index funds returned nearly 46% annually, while their counterparts in active, diversified equity funds averaged close to 45%.
Yay!
- ViewsWire, Economist: India economy: Consume now, pay later
. . . at current prices, subsidising various fuels–petrol, diesel, kerosene, LPG–may cost the equivalent of 1% of India’s GDP in the 2007/08 fiscal year (April-March).
Even after the imminent mini-hike, petrol will be sold at a loss of at least Rs5 per litre and diesel will be sold at a loss of at least Rs9 per litre.
. . . the state-owned oil companies are likely to be hit with an estimated revenue loss of Rs190bn in 2007/08.
The consolidated fiscal deficit (federal plus states) will have fallen from around 10% of GDP ten years ago to around 6%. But total off-budget liabilities–such as oil bonds, food, fertiliser and power subsidies, which could reach an estimated 2% of GDP–will not be included.
Related Posts:
January 28th, 2008 at 11:19 am
I had invested on 13th June 2006 (during the last downturn)into few Mutual Funds including Index fund. The results are clearly favouring Index funds. UTI Master Index fund has given (25/1): 101% Only two others could beat it Kotak -30 : 111% and DSP-ML Opp.:106%. Other great names like HDFC Equity, Franklin Flexicap, Reliance Equity Opp. etc are around 90% and Sundaram Mid cap 85%.
This indicates clearly that foreigners are clearly buying larger index funds.