Transcript of Chat with Mr. Sanjiv Shah ( Executive Director, Benchmark Asset Management Company ) - MFs : The road ahead (21/01/2002)
[04:31:22 PM] => Myiris : Welcome to the live chat session.
[04:31:44 PM] => Myiris: Our guest today is Mr. Sanjiv Shah, Executive Director, Benchmark Asset Management Company.
[04:31:51 PM] => DISCLAIMER:
[04:32:02 PM] => Mr. Sanjiv Shah is the Executive Director, Benchmark Asset Management Company. At the time of this conversation / chat, Mr. Shah may or may not have positions in the stocks mentioned below, although holdings may change at any time. The views expressed by Mr. Shah 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. Shah, 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.
[04:32:16 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.
[04:32:25 PM] => Lastly the views expressed by Mr. Shah 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.
[04:32:32 PM] => Myiris : Welcome to the chat session Mr. Shah.
[04:33:15 PM] => Atul : What is the best investment mix in the current economic environment?
[04:33:49 PM] => SS : Depends on your risk �return profile.
[04:34:17 PM] => abhijitdakshikar : What is a Euro bond & how does it differ from ADR/GDR ?
[04:34:28 PM] => SS : Euro bond is debt. ADR/GDR are equities.
[04:34:40 PM] => Jairam: How do you see the interest rate scenario in the short-term?
[04:35:01 PM] => SS : Stable.
[04:35:27 PM] => Rajiv Seth : Does the benchmark fund track both indices? How does it work?
[04:36:32 PM] => SS : Nifty BeES tracks S&P CNX Nifty. For a lay investor, the buying and selling process is just like that of a normal stock traded on the T+5 rolling settlement. Your purchase/sale will flow in/out of a d-mat account. You have to talk to your broker, to place your order.
[04:36:47 PM] => Anurag : Is it advisable to move in to equity funds right now?
[04:37:01 PM] => SS : Depends on your profile and existing portfolio.
[04:37:33 PM] => Anurag : Your opinion about tech funds?
[04:37:50 PM] => SS : No comments.
[04:38:20 PM] => Ravi-G : Do you expect the rally in tech to continue for long? Please suggest some scrips where I can invest?
[04:38:36 PM] => SS : No comments.
[04:39:07 PM] => SDR98 : Does Benchmark follow the passive fund management method?
[04:39:31 PM] => SS : Benchmark follows a philosophy of passive and quantitative fund management.
[04:39:49 PM] => Investorfunda : Please advise me on Reliance Petro?
[04:40:01 PM] => SS : No comment.
[04:40:53 PM] => Investorfunda : Where do you see the Sensex at the end of Feb?
[04:41:10 PM] => SS : No comment.
[04:41:39 PM] => B-Reddy : Where can one get the details about the Benchmark fund on the net?
[04:42:17 PM] => SS : You can get the details from www.benchmarkfunds.com.
[04:42:53 PM] => Raghu34 : Good luck to benchmark on its new launch. Is it an index fund like others?
[04:44:30 PM] => SS : No it�s different. It trades like a normal stock on the stock exchange and you can buy it on real time prices.
[04:45:41 PM] => N-Menon : How do you see the tech scrips performing in the next quarter? Are you satisfied by the Q3 results?
[04:46:05 PM] => SS : No comments.
[04:46:30 PM] => Amulay : Where are mutual funds headed?
[04:46:43 PM] => SS : To greener pastures.
[04:47:03 PM] => Murali_D : Sir, since gilt funds have given such good return the past year, isn't it wise to stay put in gilt? Please advise.
[04:48:08 PM] => SS : No comments.
[04:48:29 PM] => Srinivas Murthy : Sir, congratulations on your launch. Please tell me more about your fund, Nifty BeES?
[04:48:54 PM] => SS : Thank you. You can get more information from our website www.benchmarkfunds.com.
[04:49:11 PM] => Srinivas Murthy : Is Benchmark planning any new schemes?
[04:49:31 PM] => SS : Yes.
[04:52:15 PM] => Blanche : How does the fund buy and sell given the fact that investors tend to buy into a historical / real time NAV?
[04:52:50 PM] => SS : The investor buys existing units. The fund creates and redeems units by taking basket of securities in large lots.
[04:53:09 PM] => Kilnair : What is the difference between your index fund and the other index funds sold in the market?
[04:54:02 PM] => SS : Trading on the exchange on real time prices. Low tracking error due to inherent structure. Low costs, annual expenses only 0.80% going down to 0.65% on assets over Rs.500 crore. Ability to hedge.
[04:54:15 PM] => A. Rajendran : Please tell me about your portfolio?
[04:54:27 PM] => SS : Same as S&P CNX Nifty.
[04:58:15 PM] => T.R. Pai : Do you expect war to break out? What'll be the effect on markets?
[04:58:30 PM] => SS : No comments.
[04:58:48 PM] => Bohemain-5 : Who are the promoters of Benchmark MF?
[04:59:34 PM] => SS : Group of professionals.
[05:00:00 PM] => Sanjayn : Please give me one good pick each from Pharma and FMCG?
[05:00:13 PM] => SS : No comments.
[05:00:55 PM] => Rajesh K : What's Benchmark's investment philosophy?
[05:01:20 PM] => SS : Passive and quantitative asset management.
[05:01:36 PM] => Guest64 : Are you planning to come out with sector funds?
[05:01:49 PM] => SS : May be.
[05:03:49 PM] => Sanjeev : What is the difference between UTI Nifty fund and Benchmark's scheme?
[05:04:19 PM] => SS : UTI�s Nifty fund is an open ended Index fund. The difference between the other open-ended index funds & our ETF was enumerated earlier.
[05:06:03 PM] => Vivek : What does BeES stand for?
[05:06:24 PM] => SS : Benchmark Exchange Traded Scheme.
[05:06:50 PM] => Balram : Do you think index funds have a good future? What if the market goes down? How can one blindly follow the index? What's your opinion?
[05:07:23 PM] => SS : 85% of the active fund managers have underperformed the Index over last 20 years in up & down markets (US).
[05:07:39 PM] => Sarandip : Sir, Which pharma scrips do you suggest medium-term?
[05:07:58 PM] => SS : No comments.
[05:08:23 PM] => Salim : Sir, As a fund manager what are your hopes about MF industry?
[05:08:38 PM] => SS : Very good.
[05:08:51 PM] => Damani : Should I get into Infosys?
[05:09:17 PM] => SS : No comments.
[05:09:43 PM] => Kappu : Nifty in a month's time. Where do you see it?
[05:09:55 PM] => SS : No comments.
[05:10:52 PM] => pcil_ho : Whether the share value of Mascot Systems Ltd will cross the Rs 200 level?
[05:11:03 PM] => SS : No comments.
[05:11:22 PM] => Drs : Yours is not the 1st NSE traded fund.
[05:11:55 PM] => SS : The present funds are close-ended. This is the first open-ended exchange traded fund.
[05:12:32 PM] => Drs : Why would anyone buy Nifty BeES, when you can get Nifty traded funds (Mastershare, Morgan Stanley, etc) at a huge discount?
[05:13:08 PM] => SS : The funds you mentioned are close-ended active funds and not passive funds. They are not Nifty funds.
[05:13:35 PM] => Drs : What if BeES trades at a big discount to NAV?
[05:14:00 PM] => SS : It can�t due to the inherent structure of open-ended fund and the ability to create and redeem units.
[05:14:48 PM] => Pawan 551 : Dear sir , I have 4000 Shares of HFCL @ 280/-. Please suggest at this time what should I do. If your suggestion to wait then how much time I have to wait and at what level I should be out of this.
[05:15:03 PM] => SS : No comments.
[05:21:27 PM] => xyzthn : How can ETFs be used with derivatives?
[05:24:23 PM] => SS : Nifty BeES are like Nifty spot. You can use it with Nifty futures to do quasi badla. You could also use it for Nifty options to write covered calls. Nifty BeES is a very good instrument to hedge option strategies, delta hedging becomes very easy with Nifty BeES.
[05:28:38 PM] => Beas23 : Besides being a mutual fund, what advantages of a share does Nifty BeES offer?
[05:29:14 PM] => SS : As we mentioned it can be traded intraday like a share, it goes into your d-mat account. You can lend it through authorised stock lender and earn extra income on that. It can be traded with 950 brokers across the country on NSE.
[05:31:34 PM] => Myiris : Thats the end of our chat session with Mr. Sanjiv Shah, Exec.Director of Benchmark Asset management Company.
[05:31:54 PM] => Myiris : We thank Mr. Shah for his time and inputs.
[05:32:09 PM] => Myiris : Thank you all for your participation.
[05:33:13 PM] => Myiris : Our next event will be on Friday, 25, January where we feature Mr. Rajiv Vij, CEO of Templeton MF.
[05:33:37 PM] => Myiris : Till then its bye from us......
