[04:32:04 PM] => Welcome to the live chat session : Mr R.K. Gupta will be joining us shortly
[04:33:37 PM] => DISCLAIMER
[04:34:06 PM] => Mr. R. K. Gupta is the CEO - Creditcapital Asset Management. These are his personal views and
[04:34:34 PM] => not necessarily those of Creditcapital Asset Management. At the time of this conversation/chat, the Fund House may or may not have positions in the stocks mentioned below, although holdings may change at any time.
[04:35:08 PM] => The views expressed by Mr R.K. 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 Creditcapital Asset Management from time to time, may buy or sell in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed. 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
[04:36:38 PM] => Lastly the views expressed by Mr R.K. 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.
[04:37:16 PM] => Welcome to the chat session Mr R.K. Gupta
[04:37:53 PM] => Vinay: Can I buy amararaja, pentamedia and german remedies at current prices?
[04:38:26 PM] => No comment as Fund is holding these stocks.
[04:39:50 PM] => Anish: What sectors look good to invest in that equity markets now for a 1 year term?
[04:40:06 PM] => We feel that for the investment purpose, following sectors may be considered; Information Technology, Media, Telecommunication, Pharmaceuticals, Services, Biotech and Automobiles.
[04:40:36 PM] => K V Thomas: Future of low priced PSU Banks?
[04:41:13 PM] => Future of low priced PSU Banks appears to be uncertain mainly on account of high percentage of NPA, reduced spread between borrowing and landing and tough competition with newly established private sector and foreign banks.
[04:42:07 PM] => Rajat : Like banks don\'t you think that small AMC's should merge and create stronger and viable Institutions in the interest of the lay investors
[04:43:05 PM] => Though I appreciate your views and concern for the small investors but looking to the present Indian scenario, performance of AMC having very large corpus is also not encouraging. My choice will be more number of AMCs each of them should manage optimum corpus of Rs.4,000 - 5000 crores. This will not only provide the stability to the market but also competitions amongst themselves to perform better. Further, with the passage of time if any AMC is not able to manage the minimum reasonable corpus, diseconomy of scale creeps in. This will automatically in turn force the small AMC to merge with the large AMCs.
[04:44:00 PM] => Hiren : How would you evaluate a good scheme or fundhouse. Kindly specify parameters other than returns or portfolios composition?
[04:45:20 PM] => For evaluation of a Mutual Fund scheme, apart from returns and portfolio, following parameters are also required to be looked into:- What was the position of capital market at the time of launching of the scheme.- The nature of the scheme alongwith any special feature for the benefit of the investors.- The R&T agents to ensure the quality of the investors' services.- Dividend history.- Background and experience of the Fund Manager.- Portfolio turn over ratio- Beta value of the scheme and its large holdings.
[04:46:27 PM] => A. Aggarwal : Reading an earlier transcript of Mr. Nilesh Shah of Templeton wherein he squarely blamed the Distributors of MF\'s for the current poor performance of MF\'s. That is to say that the advisor of sales did not educate the investor and all went gung ho for tech and other equity schemes. Can you really blame the Distributor alone . Who is managing the Funds You or the distributor ?
[04:47:25 PM] => I do not agree with the views expressed by Mr. Nilesh Shah of Templeton. We feel that the Funds performance largely depend on the experience and concept of the Fund Manager who can judicially use the knowledge and experience to exploit the market and take appropriate and timely entry and exit decisions for the benefit of the investors. However, the impact of market conditions on the working of Fund cannot be ruled-out.
[04:48:15 PM] => Harshad: Would you say that our markets have been beaten
[04:48:40 PM] => It is very difficult to comment whether market has been completely beaten down and present time is right time to invest. We feel that an investor should identify the scrips with proper understanding of the financials of the companies, prevailing economic and political scenarios and whether the industry as well as company have got a potential to grow. We feel that the present prices of the information technology, media and telecommunication are at very attractive level. Any fall in these sectors can be considered for the investment.
[04:49:39 PM] => M. Verma : Does Bullishness in a particular sector disappear once the MF and the Brokers ensure that they have lost the investors money ?
[04:50:45 PM] => Our experience is that most of the investors prefer to make investment in Mutual Fund when the NAV of the schemes are high on account of the bullish trend in the capital market. There is hardly any fresh investment when market turns bearish. Though we appreciate your sentiments yet we believe investors should enter in the Mutual Fund during the bearish phase and reap the benefit when NAV of the Fund is high by taking the exit at the appropriate level.
[04:51:32 PM] => Ashok Mathew: why should one entrust one\'s hard earned savings with so called professional fund mangers when all they succeed is in squandering them?
[04:51:53 PM] => This is your personal view. Therefore, no comments.
[04:52:51 PM] => Amit B.: Do Mutual funds actually manage funds or is it all bull. Given recent performances I would be better of keeping my money in the house
[04:53:38 PM] => It is your money and you are the best judge to take the decision whether to invest or keep the money in the House. However, we feel that this is a temporary phase and being a genuine investor, your investment will give you decent returns over a period of time. Further, a piece of personal advice: please do not invest when the market is hot and everybody is giving free advice to buy particular scrip. Remain calm and take an intelligent decision to stay away from the market and have a nice and sound sleep.
[04:54:10 PM] => Farzan : Is long term investing a thing of the past -?
[04:54:40 PM] => We do not think that long-term investment is a thing of the past. The concept of long-term investment has been hit hard in the recent past only. Further it is market volatility which forces investors to look for short-term horizon and therefore long-term investment have gone as a backbencher.
[04:55:29 PM] => Sud_C: The Chinese are coming? What is the future of India domestic producers?
[04:56:06 PM] => With the inflow of Chinese products in the Indian market, the competition is getting fierce. However, in the long term the quality of the products and its price will be the deciding factor for which I am sure Indian Companies has an upper edge.
[04:57:18 PM] => Ameet B: Do Mutual funds actually manage funds or is it all bull. Given recent performances I would be better of keeping my money in the house
[04:57:45 PM] => Yes Biotech is going to be the next generation stock.
[04:59:15 PM] => Sunil Nayanar: Do you think biotech will the next infotech?
[05:03:32 PM] => It is your money and you are the best judge to take the decision whether to invest or keep the money in the House. However, we feel that this is a temporary phase and being a genuine investor, your investment will give you decent returns over a period of time. Further, a piece of personal advice: please do not invest when the market is hot and everybody is giving free advice to buy particular scrip. Remain calm and take an intelligent decision to stay away from the market and have a nice and sound sleep.
[05:04:30 PM] => Sunil Nayanar : Why are MFs playing bear since january while FIIs are playing bulls?
[05:05:00 PM] => With the fall in the index, most of the Mutual Funds are facing heavy redemption pressure from the local investors. Therefore, Mutual Fund has to sell to meet the redemption demand. On the other hand there is no such pressure on the FIIs. Therefore, they are taking the advantage of lower prices.
[05:05:35 PM] => R. Jagannathan: Isn't it a gamble to invest in unlisted securities?Also how much is your fund exposed to dotcoms?
[05:06:07 PM] => It is risk and return paradigm. Higher the risk higher the returns. Our Funds exposure to dot com company is negligible.
[05:06:39 PM] => Harsha: Who are the bigger CONTRARIES - THE FII who is constantly buying (and will probably laugh its way to the bank) or the MF / FI who are constantly selling (and probably bleeding the small investor) - Who in your opinion will Laugh at the end of March 2002 ?
[05:08:41 PM] => Only time can tell who is the winner. We need to be an astrologer to predict who will laugh and who will bleed at the end of March 2002. If you know the answer, I will be happy to share your views.
[05:09:43 PM] => Priyanka Mehra: Which sectors are you bullish on? Do you think the tech sector is still a good buy?
[05:10:30 PM] => We feel that at the current market price media, I.T, Telecommunication, Services, Automobile, Infrastructure, Energy etc are the good sector which have large potential.
[05:11:22 PM] => Hiramani: how relevant is the concept of value investments in India taking in consideration the volatility of
[05:11:57 PM] => our exchanges and scrips. ?
[05:12:42 PM] => The concept of value investment is more useful when the market is too volatile. I am sure you must be a tax payer, therefore, identifies the value investment where dividend yield is high and tax free in the hands of recipient. Such scrip should also have a potential to move with the index, therefore, liquidity can also be ensured.
[05:13:36 PM] => R Kumar: 'Reforms' - the word in India seems to stand for bureaucratic delays, increased corruption, and less transparency - your comments
[05:13:52 PM] => It is a good observation. I would like to reserve my comments
[05:14:27 PM] => Dkhems: Loopholes in the M&A act allows a person (with a pipeline of money) to acquire 5% - 14.99% of any company, make an open offer for 20% or more (shows his intent) , await a counter offer from the promoters, probably play a bit of tug-o-war and then offload the quantity acquired at a higher price to the original promoters - can you kindly justify this farce ?
[05:14:52 PM] => We are not in the business of M&A, therefore, our comments will not be of any value to you.
[05:15:29 PM] => Abhay Yadev: Do you think that the MF industry in India is very unprofessional and lack foresight?
[05:15:55 PM] => We do not agree with your views. Mutual Fund Industry in India is quite professional and gradually moving towards more maturity and transparency.
[05:17:06 PM] => Kamlesh V: What is your view on interest rates?Why is it expected that India will cut rates everytime theFed announces rate cuts
[05:17:56 PM] => We feel that present interest structure is already at a quite low level. Further fall in the interest rate will jeopardize the interest of small savers who normally deposit their life earning in fixed deposits. Further even at these low levels banks are finding it difficult to land their surplus money. I agree with you that it is not necessary for India to reduce the further rate of interest any time there is fall in US Rate of interest.
[05:18:27 PM] => S.Shankar: Your comments on the latest MOF directive restriction on investing in GDR's, ADR's of only Indian Stocks abroad
[05:19:11 PM] => It is too early to make comments on the latest directives of MOF.
[05:21:37 PM] => Jajoo: Is the portfolio composition of a fund house have any correlation with size of the Fund?
[05:22:38 PM] => Yes, with small corpus, it is difficult to take investment decision for those scrips whose market price is high due to investment restrictions impost by SEBI.
[05:26:37 PM] => Kartikeyan: Could you justify having 31 % of your portfolio of the Discovery Fund in Tech and that even in UNLISTED tech stocks - What hidden value are you trying to unlock
[05:27:03 PM] => Investment was made in unlisted tech stocks about a year back when there was a phobia for I.T sector. In some cases we are confident to get reasonable returns from the investment.
[05:27:37 PM] => Sunita_Rao: Your fund performances from inception have been nothing to talk about. Why even my savings bank account has given me 4%. You infact would have lost my money - What has gone wrong with your performance. Do Fund Managers introspect
[05:29:42 PM] => We have taken the management of Taurus Mutual Fund only in March 1999. Thereafter, NAV for all the schemes have shown quantum jump. For example, Starshare NAV touches a high of Rs.15/-, The Newshare which is now renamed as Discovery Stock Fund touched a high of Rs.10/-. Similarly, Libra Leap NAV has touched a high of Rs.51/- and Libra Tax Shield, high of Rs.18/-. You could have taken the advantage of high NAV at that time. However, please do not feel disheartened. We are quite confident that with the improvement in the capital market, Net Asset Values of all these schemes will further rise.
[05:30:16 PM] => D.Gandhi : I believe that you have NDTV in your portfolios. What would be the likely pricing of this unlisted stock. What impact would it have on your NAV once listed in % terms
[05:32:00 PM] => Yes, we have large number of shares of NDTV in Taurus Starshare and Discovery Stock Funds. It is difficult to comment at what price NDTV will come out with IPO. Looking to their present Balance Sheet and future prospects, they may come out with IPO at around Rs.350/- to Rs.400/- per shares. At present, the shares of NDTV are being valued at Rs.0.01 in terms of SEBI's Regulations as Company has not announced any dividend since inception. The Net Asset Value of both the schemes will show a quantum jump with the announcement of their public issue.
[05:35:16 PM] => Y. Giani: I believe that you have NDTV in your portfolios. Can u comment on that ?
[05:36:12 PM] => Just check my reply to Mr. Gandhi. I have commented on length.
[05:43:12 PM] => Amar harolikar Is there any sense in investing in equity schemes of mutual funds? They seem to be wealth destroyers, especially the pure equity and the taxsaving ones ? What do you think ?
[05:47:03 PM] => with the ban of carry forward , introduction of forward trading and introduction of rolling settlement with effect from 2nd July there is hardly any scope for small investors to invest directly in the capital market. In case any investor is keen to participate in the capital market he has to go through the MF route. I do not agree that MF's are the wealth destroyers , actually they are the wealth savers if investments are made at the right time.
[05:48:31 PM] => kajol : I hold 50% of my money in ICICI tech, K-tech,Sun F@c Tech, New Millennium, KP internet What should I do now.
[05:49:16 PM] => hold your investments as IT sector is likely to perform well in the next six to eight months time.
[05:50:10 PM] => kiran: what is the point of having fund managers in current markets where so many dubious dealings are going on in such large numbers?
[05:50:29 PM] => no comments
[05:51:33 PM] => Kajol : Which is good Concentrated or diversified portfolio?
[05:52:25 PM] => we feel our portfolio is well diversified and will give you right opportunity to invest this time.
[05:53:32 PM] => Ramsay Mery: Hi, Guptaji this is Ramsay from Toronto, Canada. How are you:? What is the current mood of the market, given that more than US $ 2 billion has come into India?
[05:55:59 PM] => current mood of the market is in a cautious mood. With a fall of the rate of interest in the US more fund is coming to Indian Market. Therefore the market tends to go up in the near future.
[05:57:29 PM] => I am overwhelmed by the response that has come from all of you but I am really running out of time. So I will just take two more questions.
[05:58:49 PM] => aggarwal: Thank you for answering my Q but what do you mean by market conditions impact on the working of the fund - are not you the protector of my money?
[05:59:55 PM] => yes we are the protectors of your money but on account of some extraneous factors like fall in the global market our NAV cannot remain insulated
[06:01:14 PM] => Kajol: have we seen the bottom of the current bear market. If so what is the upside potential within the next one to one and a half years?
[06:02:40 PM] => the present market scenario is giving you a cautious approach. If you are talking about future index it can touch 600 level in the next one to one and a half years time.
[06:03:37 PM] => Thank you very much. I hope you all enjoyed it as much as I did. Thanks and Good-bye.