Energise Your Portfolio

The sunrise sector of Indian industry, the energy sector is offering growth potential of enormous proportions due to sheer lack of supply. The GOI Mission 2012 has 'power for all ' as its caption channeling a lot of investments into this field.

The peculiarities of these investments are:
1. large outlay
2. very long gestation gap 7-8 years
3. large number of contractual tie-ups that complicate the project structures
4. very long life of cash inflows like 60-70 years

These projects once online are like fixed deposits, cash flows keep coming if, good project management exists. And thus provides a goldmine opportunity for young investors to put long term savings for building up a corpus over a period of time say 15-20 years and above.

Currently schemes available are:

1. Reliance Diversified Power(Apr 2004)
   
2. UTI Energy(Jun 1999)
   
3. Sundaram BNP Paribas Select Thematic Energy Opportunities(Dec 2007)
   
4. Escorts Energy((Sept 2008)
   
5. DSP BR World Energy(July 2009)
   
6. DSP BR Natural resources & New Energy(March 2008)
   
7. ICICI Prudential Power(Octo 2001)
   

Saving for Children : Through MF schemes

When to start saving for children?
How long to save?
How much to save?

From birth to attaining age 18 is what the MFs tell you about when to start saving. The answer for how long is included in that answer. But how much to save? it depends on one's capacity to save. But saving is important. So set apart a small amout however small it may be and accumulate it till you are ready to buy a MF scheme for your child. One may rely on traditional saving methods for this phase.

The existing MF schemes exclusively for children are:

1. ICICI Prudential Child Care Plan(2001)
2. Magnum Children Benefit Plan(2002)
3. HDFC Children Gift fund(2001)
4. LIC MF Children fund(2001)
5. Principal Career Builder Plan(1998)
6. Tata Young citizen's fund(1995)
7. Templeton Indai CAP Fund(1998)

a. Education

b. Gift

8. UTI Children Career Plan balanced(1993)

9. UTI CCP Advantage fund(2004)

These schemes have varying exit loads, expense ratios and portfolio profiles. Some of them have age restrictions on entry levels and lock-in -periods.

when you plan, surprises are reduced.

happy investing