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| Transcript of Chat with Mr. R.K Gupta (CEO & Fund Manager, Taurus Mutual Fund.) - MFs - Are they meeting expectations? - (25/02/2002) |
[12:15:08 PM] => chat with Mr.R.K Gupta today
[05:31:45 PM] => Myiris: Welcome to the live chat session.
[05:32:14 PM] => Myiris : Our guest today is Mr. Mr. R.K Gupta, CEO & Fund Manager, Taurus Mutual Fund.
[05:34:16 PM] => R.K Gupta is the CEO & Fund Manager, Taurus Mutual Fund. At the time of this conversation / chat, Mr. Gupta may or may not have positions in the stocks mentioned below, although holdings may change at any time. The views expressed by Mr. Gupta 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. Gupta, 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.
[05:34:29 PM] => 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.
[05:34:38 PM] => Lastly the views expressed by Mr. Gupta 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.
[05:38:08 PM] => Myiris: Welcome to the chat session Mr. Gupta.
[05:39:20 PM] => Man87 : How do you rate the market as of now?
[05:40:24 PM] => RKG : We feel that market is at a cross road and depending upon the various provisions in the budget, market will take it shape.
[05:40:42 PM] => Bhavesh : Name some IT scrips, which look good short-term?
[05:41:39 PM] => RKG : Some of the IT scrips which have potential to go up are Polarise, Citicorp, Masteck etc.
[05:42:04 PM] => Sukumar : What do you think of the interest rate situation?
[05:43:56 PM] => RKG : Interest rate situation appears to be at an optimum level and at the best Government may consider to reduce interest by about 50 basis point.
[05:44:54 PM] => Palash : Where is the sensex headed? What are the next support levels?
[05:47:52 PM] => RKG : Depending upon the budgetary allocations for various infrastructure projects like Road constructions, power, telecommunication etc. index will move accordingly. We feel that if there is an adequate budgetary allocation for these sectors, index is bound to move up and the immediate next support level is 3750.
[05:50:04 PM] => Raghupathi : Could you please tell me about pension funds? How do they work?
[05:50:44 PM] => RKG : Pension Funds is by and large investment for a long term purpose. Investor is required to contribute in the specified pension fund on monthly / quarterly / half yearly / annually depending upon the term he selected. The Investment in Pension scheme is normally a long dated Govt. securities and debt instruments.
[05:51:02 PM] => Further, no dividend is being declared and the appreciation is continuously is being reinvested in the identified securities. After the end of the selected term i.e. 5 yrs, 10 yrs, 15 yrs etc., investor is entitled to get regular monthly / quarterly / half yearly returns as indicated by him at the time of investment.
[05:51:27 PM] => HRT : I want to invest in equities. Is it the right time to move in? Please advice.
[05:52:29 PM] => RKG : The past couple of month's equity market had been very volatile. It has been witnessed that particular share which is moving up for a few days started falling after reaching to a certain level. Therefore, for an individual investors to make investment in equity has become more risky. We, therefore, suggest that identify the fundamentally strong co. before making any investment and then watch the price movement. At appropriate time take the entry in that stock. When the price reaches at your level, book the profit. There is no clear cut guidelines can be specified in the present scenario to make money in the equity.
[05:52:47 PM] => Nayan : Does Taurus have any gilt funds? Please tell me about your funds?
[05:53:44 PM] => RKG : Yes, in Taurus we have Libra Gilt Fund which is an open end scheme. Recently, a dividend of 3% was declared in this scheme. At present, Taurus Mutual Fund is managing 6 open end schemes viz. Starshare, Libra Leap, Libra Tax Shield, Discovery Stock Fund, Libra Bond Fund and Libra Gilt Fund. Being an open end schemes, investors are at liberty to enter in the schemes at any point of time. Similarly, exit is also there on an on-going basis and redemption proceeds are being despatched to the unitholders within 2-3 working days.
[05:54:12 PM] => Kumar : What are your expectations from the budget?
[05:55:36 PM] => RKG : We expect that budget should give clear directions for the improvement in the Indian Economy particularly the Rural economy and Agriculture sector. We are not very optimistic for any tax concession on account of large budgetary deficit. It is expected that Govt. will give major thrust with the infrastructure sector like Road Constructions, Power Houses, Bridges etc. With the fresh investments in these sectors, demand for the core industry like Steel and Cement will go up.
[05:56:05 PM] => We also expect that for the improvement in the rural economy automobile sector particularly Tractor industry, two-wheeler industry will be getting some tax concession. The other areas of concern are very large budgetary deficit and expected high expenditure on the defence. We are not sure how Finance Minister is going to bridge the gap. Definitely, disinvestment in the PSUs will give some relief to the budgetary deficit.
[05:59:10 PM] => Uma : Sir, please advise me on good stock picks, medium-term?
[05:59:39 PM] => RKG : As a matter of policy, we do not advise any specific stock picks for the investment.
[05:59:47 PM] => NG76 : Do you see the administered rates on small savings scheme being reduced?
[06:01:30 PM] => RKG : The present indications are that Govt. may consider to reduce the Administered rates on small savings schemes. However, the political and social compulsion is much larger than the economic consideration for such decisions. We feel that Govt. may consider to reduce the rate of interest on small saving by 50-100 basis point. The basic philosophy for reducing the rate of interest is that the Indian Public by & large should increase their investment horizon than the saving habbits. The effect is manifold. With the higher allocation for the investment by the individuals, there is a tremendous growth expected in the economy.
[06:01:51 PM] => AM 34 : Sir, Do you expect any major changes in the FDI/FII policy of the government?
[06:03:46 PM] => RKG : Yes, we foresee that Finance Minister may liberalize many more areas for the FDI Investment. Normally, FDI investment in any country is for a long term purpose and that is what our country needed. On the other hand, FII investment in any country is considered as a hot money and can upset the economy of any country.
[06:04:16 PM] => . Therefore, to provide proper support to the economy, Govt. has to consider to increase the allocation of FDI and FIIs in many identified areas such as Banking, Telecommunication, Media, Infrastructure, Power Generation etc.
[06:05:24 PM] => Man_koshi : Please tell me about Taurus MF? What's the returns like?
[06:06:46 PM] => RKG : As we have already explained above Taurus Mutual Fund is having 6 open end schemes. The performance of all the schemes is quite satisfactory. All the scheme provide good opportunities for the capital appreciation on the investment. For example in last one month the equity schemes has given annualized return of about 24-36% as per details given below:
[06:07:16 PM] => Taurus Starshare : 44.60%
[06:07:20 PM] => Discovery Stock Fund : 114.82%
[06:07:30 PM] => Libra Leap : 3.52%
[06:07:37 PM] => Libra Tax Shield : 46.30%
[06:08:08 PM] => However, if you try to compare the yield since inception, result may not be comparable as the schemes were made open end only in 2000. Further, major restructuring exercise is being undertaken in all the equity schemes.
[06:09:44 PM] => Similarly, in a Bond Fund in last 1 month the annualized yields works out to be more than 42% and in the Gilt scheme Annualised yield is coming around 31%. Further in both the schemes recently dividend of 3% was declared.
[06:10:19 PM] => Sudesh : What do you think for the market in a one-month horizon?
[06:11:39 PM] => RKG : We feel that next one month market will be very volatile and it is difficult to predict the behaviour of the market. Everything depends upon the budget and how the budget is perceived by the Indian Market.
[06:11:51 PM] => Guru : Sir, Whats your outlook on IT, Pharma, Cement?
[06:12:44 PM] => RKG : We feel that all the 3 sectors will continue to do well in the near future.
[06:13:41 PM] => Investor 77 : Please advice me on Reliance Petro.
[06:14:57 PM] => RKG : Reliance Petro at the current rate appears to be at an attractive level. But we do not foresee any quantum jump in the prices of the scrip in the near future. This stock can be used as for the trading purpose only and not for the long term purpose. (Note) As per the SEBI (Mutual Fund) Regulations 1996 statutory equirement it is to be informed that Fund is holding good quantity of Reliance Petro in the various schemes.
[06:15:33 PM] => Harshad : What is your outlook for the tech sector for the next 6-months?
[06:16:00 PM] => RKG : Tax sector continuous to remain quite volatile in times to come. At every fall one can pick up the identified IT stocks and book the profit at the rise.
[06:16:26 PM] => dimplesharma74 : Why has your fund been an under performer?
[06:17:20 PM] => RKG : Initially, all the schemes were close ended where investment used to be made for a long term purpose. Further, during the IT boom of 2000 some investment has been made thru private placement in anticipation of immediate public offer. However, situation changes dramatically and none of these cos. Came for a public issue. Further, all the schemes have been made open end where the performance is being watched on the day to days basis.
[06:17:43 PM] => We are aware of the fact that Fund performance had not been upto the expectations of the investors. Therefore, portfolio restructuring has already been initiated which has given good results. As stated earlier, the annualized return for the investment made in the various schemes in last 1 month has been quite good which u can witness yourself by the movement in the NAVs in the various schemes.
[06:18:19 PM] => Nayan Parekh : Mr. Gupta, What is expectations from the budget?
[06:19:25 PM] => RKG : We have already given our views on the expectations from the budget.
[06:19:51 PM] => Nayan Parekh : The income from mutual funds was declared tax free up to March 2002, do you think it will get an extention? Till what period?
[06:20:25 PM] => RKG : We feel that looking to the present scenario, Govt. may continue to allow the tax concession on the dividend of the Mutual Fund schemes.
[06:20:52 PM] => RKG : We feel that looking to the present scenario, Govt. may continue to allow the tax concession on the dividend of the Mutual Fund schemes.
[06:21:11 PM] => himanshudani : Future prospects of Jaiprakash Industries as u are holding majority stake?
[06:21:47 PM] => RKG : Based on the quarterly Financial results and restructuring exercise undertaken by JP Industries prospect of the company r quite encouraging. Further, with the expected thrust on the infrastructure and the profitability of the co. is expected to improve further.
[06:22:13 PM] => himanshudani : What do u think of stock market in next 6-12 months?
[06:22:38 PM] => RKG : We have already given our views earlier.
[06:22:56 PM] => nayan_parekh2000 : What do you think about decrease in interest rates of small savings will boost the collection in Mutual funds?
[06:23:39 PM] => RKG : It is difficult to comment at this juncture because as per the recent announcement made by Price Minister, Govt. is concerned about the social securities of the poor segment of the society particularly the senior citizens. However, with the fall in the rate of interest on the fixed deposit, investors will look forward for other investors avenues including Mutual Fund.
[06:30:36 PM] => nayan_parekh2000 : What do u think will be the result of LICENCE given to the distributors will bear good fruits to the mutual fund industry? Because investors are really interested in incentives than returns.
[06:31:00 PM] => RKG : We back to defer with your views that investors are interested in incentives than returns. This perception is only with few market intermediaries who are spoiling the market. Therefore, licence is very essential.
[06:31:25 PM] => Kampatus : The corpus of your debt scheme is very less. What is your strategy to boost the corpus?
[06:31:51 PM] => RKG : With the continuous improvement in the performance of the scheme, now we are making thrust on our marketing efforts both at the retail as well as corporate level.
[06:32:31 PM] => Kampatus : It is not the known fund what are u planning to increase your brand image and awareness.
[06:32:48 PM] => RKG : Brand image and awareness can be improved mainly by the performance, investor services, marketing efforts and to some extent advertisement in the various newspaper and electronic media.
[06:33:04 PM] => dimplesharma74 : Do you think people should trust mutual funds even when you have reduced the investments to less than half in so many years?
[06:33:45 PM] => RKG : MF performance is by and large indicated the performance of the economy of the country and capital market in particular. No investment in the world is risk free. The investment in equity is always high risk and high returns. Whereas investment in the income funds/bond/gilt funds is less risky and therefore, return is also less.
[06:34:59 PM] => Raghu: Do you expect the equity funds to revive again in the next quarter?
[06:35:36 PM] => RKG : Yes, with the improvement in the capital market we expect that equity fund will do better in 2002.
[06:36:02 PM] => Investnow : What is Taurus' cash position in its funds?
[06:36:44 PM] => RKG : Cash position depends upon the market conditions. Profit booking is an on-going exercise and at every low level we are a buyer in the market. As such we are maintaining adequate cash position so that we should not miss any buying opportunity. Further the surplus cash is being invested in an overnight call money market on day to days basis where the yield is around 6.5 to 7% p.a.
[06:37:34 PM] => Itr56 : Please advice me on IPCA Labs?
[06:37:49 PM] => RKG : We have already stated we do not wish to advise on a particular stock.
[06:38:55 PM] => Sanjeev : Sir, is Zee a good buy?
[06:39:15 PM] => RKG : We have already stated we do not wish to advise on a particular stock.
[06:39:29 PM] => GH : Is your fund coming out with new equity funds?
[06:39:57 PM] => RKG : At present we already have many equity schemes. As such we do not have any plan to launch any fresh schemes in near future.
[06:41:01 PM] => Anu : What is ur core competence ur debt funds or equity funds as ur visibility is nil what r u intending to do?
[06:42:17 PM] => RKG : We r quite competent in handling the debt funds and equity funds which is reflected in the annualized return. As far as the visibility is concern it is an expensive exercise and visibility can be seen by regular advertisements in the newspapers and electronic media. This is possible only when our corpus grow to a substantial level. We are taking necessary steps to improve our corpus as well as the visibility.
[06:47:29 PM] => Myiris : Catch the Railway Budget live at www.myiris.com on February 26.
[06:48:00 PM] => Myiris : Coming up on February 28, Union Budget live at myiris.com.
[06:52:45 PM] => Myiris : We are sorry for the delay..Mr. Gupta will be back in a short while. Please bear with us.
[06:59:53 PM] => Myiris : We are sorry to inform you that as Mr. Gupta had to leave urgently, he won't be taking any more questions.
[07:00:10 PM] => Myiris : Thats the end of the chat session for today.
[07:01:04 PM] => Myiris : Thank you all for logging on...
[07:01:32 PM] => Myiris : We wish to thank Mr. R.K.Gupta for his time and inputs.
[07:02:02 PM] => Myiris : See you all again on our next chat session.
[07:02:17 PM] => Myiris : Till then bye from us.
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