Readings: RBI policy, Reliance MF AUM, Trading lessons
While the increase in the CRR (50bp on April 17, 2008 and 25bp today) will cumulatively absorb about US$6.9 billion, FX reserves have increased by US$18.9 billion over the last eight weeks.
Most of the rise in inflation from the trough of 3.1% in November 2007 to 7.3% during the week ended April 12, 2008 has been driven by higher prices in base metals, fuel and food items.
. . . domestic demand is likely to slow further due to (a) the lagged impact of the current high level of prime lending rates; (b) increased risk aversion in the domestic banking system, as reflected in widening spreads for household loans other than mortgages; and (c) increased risk aversion in the global financial markets, which would reflect reduced access to foreign funding for small- and medium-sized Indian companies.
- Economic Times: Reliance MF first to cross Rs 1 lakh-crore AUM mark
Anil Ambani-promoted Reliance Mutual Fund — the number one mutual fund in the country in terms of assets under management — has added another feather to its cap. It has become the first mutual fund house in India whose AUM has topped the Rs 1 lakh crore-mark.
For the past year, Reliance’s AMC has been topping the AUM charts backed by strong inflows into equity schemes, as retail investors rushed to benefit from the booming stock market. Its Average Assets Under Management (AAUM) was in the order of Rs 90,938 crore for March, 2008. It also has one of the largest investor bases in the country with 66.87 lakh investors on its scrolls.
Hmm, let’s see - a 1% expense ratio on 1 lakh crore AUM works out to an annual income of Rs 1000 crore. Not bad - all you gotta do is track the indices, and keep AUM steady - life’s good!
- Kirk Report: Trading Lessons From Nicolas Darvas
There is a “follow-the-leader” style in the market. You will find success by selecting the most active and strongest industry group and trading its top leader.
Most, if not all stocks, will follow the general trend of the market.
Perfection has no role in successful trading. No one can buy at the absolute lowest price and sell at the highest price. No time or effort should be devoted to that goal.
