Precious metals turn down

Prices turn pale as dollar firms up further 

Precious metal prices ended modestly lower on Wednesday, 27 October 2010 at Comex. The rising dollar was the main reason behind bullion metals turning pale. 

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Wednesday, gold for December delivery ended at $1,322.6 an ounce, lower by $16 (1.2%) on the New York Mercantile Exchange. Last week, gold ended lower by 3.4%. 

Gold ended the month of September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 20.8%.

On Wednesday, December Comex silver futures ended lower by 43 cents (1.8%) at $23.4. 

Last week, silver ended lower by 4.8%. For the month of September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 39.2%. 

In the currency market on Wednesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.6%. Speculation that any future measures of quantitative easing might be applied gradually or be smaller in scope than had been hoped propped up the dollar today. 

Government report in US showed on Wednesday, 27 October 2010 that sales of new homes climbed 6.6% in September 2010 representing the second straight month of gains, but still well below the pace when a tax credit existed. As per the report, sales of new single-family homes rose 6.6% to a seasonally adjusted annualized rate of 307,000, which is stronger than the 300,000 that market expected. Still, the pace of new-home sales is 21.5% below the same level of last year. 

The Commerce Department in US reported on Wednesday, 27 October 2010 that a strong gain in civilian aircraft boosted orders for durable goods in September 2010 to their largest increase since January. As per the report, orders rose 3.3% in September. Civilian aircraft accounted for most of the increase in September. Aircraft orders rose 105% in September after a 30% decline in the prior month. 

But excluding the 15.7% rise in transportation orders, durable-goods orders were down 0.8% in September, the second decline in the past three months. August's orders were revised up to a 1.0% fall from 1.5% previously reported. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

At the MCX, gold prices for December delivery closed lower by Rs 151 (0.8%) at Rs 19,441 per ten grams. Prices rose to a high of Rs 19,571 per 10 grams and fell to a low of Rs 19,419 per 10 grams during the day's trading. 

At the MCX, silver prices for December delivery closed Rs 392 (1.08%) lower at Rs 35,579/Kg. Prices opened at Rs 36,040/kg and fell to a low of Rs 35,505/Kg during the day's trading.

Crude prices slip

Higher crude stockpiles and rising dollar push prices lower 

Crude oil prices ended lower on Wednesday, 27 October 2010 at Nymex. Rising crude oil inventories for last week coupled with strong dollar pushed prices lower for the day. 

On Wednesday, crude oil futures for light sweet crude for December delivery closed at $81.94/barrel (lower by $0.61 or 0.7%). Last week, crude ended lower by 0.3%, its third consecutive weekly losses. 

For the month of September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 9.3%. 

In the latest weekly inventory report, the Energy Information Administration said today that crude-oil inventories rose 5 million barrels last week. Gasoline supplies decreased 4.4 million, and distillate inventories decreased by 1.6 million. 

In the currency market on Wednesday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.6%. Speculation that any future measures of quantitative easing might be applied gradually or be smaller in scope than had been hoped propped up the dollar today. 

Government report in US showed on Wednesday, 27 October 2010 that sales of new homes climbed 6.6% in September 2010 representing the second straight month of gains, but still well below the pace when a tax credit existed. As per the report, sales of new single-family homes rose 6.6% to a seasonally adjusted annualized rate of 307,000, which is stronger than the 300,000 that market expected. Still, the pace of new-home sales is 21.5% below the same level of last year. 

The Commerce Department in US reported on Wednesday, 27 October 2010 that a strong gain in civilian aircraft boosted orders for durable goods in September 2010 to their largest increase since January. As per the report, orders rose 3.3% in September. Civilian aircraft accounted for most of the increase in September. Aircraft orders rose 105% in September after a 30% decline in the prior month. 

Also on Wednesday, natural gas for December delivery retreated less than a penny to $3.76 per million British thermal units. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex. 

At the MCX, crude oil for November closed lower by Rs 34 (0.91%) at Rs 3,663/barrel. Natural gas for November delivery closed at Rs 170, higher by Rs 1.19 (1.3%).

FII buying vigour slows down

Inflow of Rs 97.70 crore on 27 October 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 97.70 crore on Wednesday, 27 October 2010, much lower than Rs 698.70 crore on Tuesday, 26 October 2010. 

The net inflow of Rs 97.70 crore on 27 October 2010 was a result of gross purchases Rs 2,774.50 crore and gross sales Rs 2,676.80 crore. There was an inflow of Rs 97.20 crore into secondary equity markets which was a result of gross purchases Rs 2774.50 crore and gross sales Rs 2676.80 crore. The BSE Sensex fell 216.02 points or 1.07% to 20,005.37 on that day. 

There was an inflow of Rs 0.60 crore into the category 'primary market & others', which was a result of gross purchases Rs 1.60 crore and gross sales Rs 1 crore. 

FII inflow in October 2010 totaled Rs 29,120.60 crore (till 27 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,13,480.80 crore (till 27 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $24.92 billion, above last year's $17.45 billion. 

There are a total of 1,740 foreign funds registered with the Securities & Exchange Board of India (Sebi).

WPI 16.62% at week ended 16 October 2010

Fuel index grew by 0.4% 

The index for primary articles group declined by 0.4 %to 181.0 (Provisional) from 181.8 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 16.62%(Provisional) for the week ended 16 October 2010 over 17 October 2009. The index for 'Food Articles' group declined by 0.7 %to 179.5 (Provisional) from 180.8 (Provisional) for the previous week due to lower prices of fruits & vegetables (4%) and bajra, jowar, fish-inland, masur and urad (1% each). However, the prices of poultry chicken, arhar and fish-marine (4% each) and barley (3%) moved up.

The index for 'Non-Food Articles' group rose by 0.3 %to 161.6 (Provisional) from 161.1 (Provisional) for the previous week due to higher prices of copra (7%), raw jute (5%), raw rubber (3%) and raw silk (1%). However, the prices of fodder (3%) and cotton seed and castor seed (1% each) declined. 

The index for fuel and power group rose by 0.4 % to 148.3 (Provisional) from 147.7 (Provisional) for the previous week due to higher prices of light diesel oil (6%), aviation turbine fuel (3%), naphtha and furnace oil (2% each) and petrol (1%). However, the prices of bitumen (2%) declined. 

The annual rate of inflation, calculated on point to point basis, stood at 11.25 %(Provisional) for the week ended 16 October 2010 over 17 October 2009. 

The recent transition in the Wholesale Price Index from the 1993-94 base to the 2004-05 base highlighted the impact that a changed production/consumption basket. Specifically, food inflation as measured by the new index is noticeably higher than that measured by the old one. The higher weights in the news index resulted in higher inflation rate. 

The RBI set to announce second quarter policy review on 2 November 2010 and expected to announce measures, which will curtail higher inflationary expectations.

DSP BlackRock MF Announces Change in Fund Manager

With effect from 22 October 2010 

DSP BlackRock Mutual Fund announces change in fund manager for the scheme DSP BlackRock Technology.com Fund with effect from 22 October 2010. 

Accordingly, the fund which is presently managed by Mr Apoorva Shah and Mr Aseem Gupta will now be managed only by Mr Apoorva Shah.

MFs continue selling

Outflow of Rs 376.10 crore on 27 October 2010 

Mutual funds (MFs) sold shares worth a net Rs 376.10 crore on Wednesday, 27 October 2010, higher than Rs 343.90 crore on Tuesday, 26 October 2010. 

The net outflow of Rs 376.10 crore on 27 October 2010 was a result of gross purchases Rs 483.30 crore and gross sales Rs 859.50 crore. The BSE Sensex fell 216.02 points or 1.07% to 20,005.37 on that day. 

MFs sold shares worth net Rs 5737.90 crore in October 2010 (till 27 October 2010). Mutual funds had sold equities worth a net Rs 7,236.30 crore in September 2010.

FIIs continue buying

Inflow of Rs 1138.20 crore on 25 October 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 1138.20 crore on Monday, 25 October 2010, on the top of an inflow of Rs 1379 crore on Friday, 22 October 2010. 

The net inflow of Rs 1138.20 crore on 25 October 2010 was a result of gross purchases Rs 3080.40 crore and gross sales Rs 1942.20 crore. There was an inflow of Rs 729.10 crore into secondary equity markets which was a result of gross purchases Rs 2670.50 crore and gross sales Rs 1941.50 crore. The BSE Sensex rose 137.25 points or 0.68% to 20,303.12 on that day.

There was an inflow of Rs 409.10 crore into the category 'primary market & others', which was a result of gross purchases Rs 409.90 crore and gross sales Rs 0.80 crore. 

FII inflow in October 2010 totaled Rs 28,324.20 crore (till 25 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,12,684.40 crore (till 25 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $24.74 billion, above last year's $17.45 billion. 

There are a total of 1,740 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Tata Indo-Global Infrastructure Fund to be converted into an Open Ended Scheme

With effect from 12 November 2010 

Tata Mutual Fund has announced that Tata Indo-Global Infrastructure Fund which was launched as a close ended scheme is completing 3 years on 11 November 2010 and with effect from 12 November 2010 it will become an open ended scheme. However, after conversion into an open ended scheme, the scheme will follow a book closure till 19 November 2010 and will re-open for ongoing purchase & redemption with effect from 22 November 2010. 

In pursuant to the above change, the exit load charge for SIP and Non SIP transactions will be 1% of the applicable NAV if redeemed on or before expiry of 365 days from the date of allotment.

FIIs step up buying

Inflow of Rs 1379 crore on 22 October 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 1379 crore on Friday, 22 October 2010, higher than Rs 976.50 crore on Thursday, 21 October 2010. 

The net inflow of Rs 1379 crore on 22 October 2010 was a result of gross purchases Rs 3878.80 crore and gross sales Rs 2499.80 crore. There was an inflow of Rs 704.90 crore into the secondary equity markets which was a result of gross purchases Rs 3178.30 crore and gross sales Rs 2473.40 crore. The BSE Sensex lost 94.72 points or 0.47% to 20,165.86 on that day. 

There was an inflow of Rs 674.10 crore into the category 'primary market & others', which was a result of gross purchases Rs 700.50 crore and gross sales Rs 26.40 crore. 

FII inflow in October 2010 totaled Rs 27,186 crore (till 22 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,11,546.20 crore (till 22 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $24.48 billion, above last year's $17.45 billion. 

There are a total of 1,739 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Weekly Scenario: Equity Funds End the Week With Mild Gains

Indian equities witnessed a choppy trend for the second consecutive week. Both the benchmark indexes -Nifty and the Sensex were extremely volatile as quarterly earnings and fund flows to India`s biggest IPO kept investors on their toes. Finally, the markets ended with marginal gains. Sensex and Nifty climbed up 0.20% and 0.06% respectively over the one week period ended 22 October 2010. 

In the major equity fund category, NAV of Equity Diversified Funds surged the most by 0.93%, Tax Savings Funds by 0.90% and Index Funds by 0.31% during the one week period 22 October 2010. Among the sub categories in debt fund, Floating Rate Income Funds - Short Term and Liquid Funds surged up 0.12% each. In the ETF category, Other ETFs gained 0.62% while Gold ETFs declined 3.25%. 

Among the sub categories in the hybrid funds, NAV of Equity Oriented Balanced Fund surged by 0.65%, followed by Debt Oriented Balanced Fund (0.21%), Monthly Income Plans (0.18%) and Arbitrage Funds (0.13%) 

Equity Diversified Funds

 

NAV of Equity Diversified Funds category gained 0.93% in the week ended 22 October 2010 after declining during the previous week end period. Among the schemes in the equity diversified category, Sundaram PSU Opportunities Fund gained the maximum of 3.01%, followed by Religare PSU Equity Fund which climbed 2.52%, Escorts Leading Sectors Fund rose 2.46%, DSP BR Micro-Cap Fund jumped 2.35% among others. JM Multi Strategy Fund and JM Equity Fund were the worst performers in this category declining 0.83% and 0.79% respectively among others. 

Tax Savings Funds 

 

Tax savings Funds category gained 0.90% in the week ended 22 October 2010. All the schemes in this category ended the week as gainers. IDFC Tax Advantage (ELSS) fund and HDFC Long Term Advantage Fund were the top performers with a return of 2.81% and 1.91% respectively during one week period. Among the other schemes in the category, DSP BR Tax Saver Fund rose 1.78%, HDFC Tax Saver Fund climbed 1.61% and Escorts Tax Plan surged 1.61%. Reliance Tax Saver (ELSS) Fund and JM Tax Gainer Fund were the worst performer in this category with low return of 0.02% and 0.08% respectively. 

Index Funds

 

The NAV of Index Fund category advanced by 0.31% over one week period with ICICI Pru Nifty Junior Index Fund and IDBI Nifty Junior Index Fund being the top gainers in this category. Their returns stood at 1.73% and 1.72% respectively over one week time period. LICMF Index Fund - Sensex Advantage Plan was the only loser in this category with a fall in NAV by 0.38%. 

Sector Funds

 

NAV of Pharma Funds category advanced 2.35%, with Reliance Pharma Fund ending the week as the biggest gainer with an increase in NAV by 2.87%; it was followed by UTI-Pharma & Healthcare Fund which gained 2.64%. 

Banking Funds category gained 1.85%, with Reliance Banking Fund gaining 3.18% and Religare Banking Fund gaining 2.61%. JM Financial Services Sector Fund ended at the bottom of the category with a return of 1.02%. 

FMCG Funds category gained 0.27% over one week period ended 22 October 2010. Franklin FMCG Fund and SBI Magnum SFU - FMCG Fund were the gainer in this category. Their NAV appreciated by 0.84% and 0.49% respectively over one week period. 

Infotech Funds category gained 1.41% over one week period ended 22 October 2010. Franklin InfoTech Fund was the top gainer with a return of 1.91%. 

Hybrid Funds

 

Sundaram Balanced Fund and HDFC Balanced Fund were the highest gainer in equity oriented balanced fund category as their NAV appreciated by 1.69% and 1.68% respectively. Axis Triple Advantage Fund, Templeton India Children's Asset - Gift Plan and FT India Balanced Fund were the worst performer in this category declining 0.40%, 0.02% and 0.01% respectively. 

UTI-Retirement Benefit Pension Fund was the highest gainer in debt oriented balanced fund category as its NAV appreciated by 0.59%. UTI-Unit Linked Insurance Plan was the next highest gainer by 0.56%. DWS Money Plus Advantage Fund and LICMF Children's Fund were the worst performers in this category with a fall in return by 0.31% and 0.16% respectively. 

Debt Funds

 

Among the Debt funds, Axis Income Saver gained 0.34%, DWS Gilt Fund added 0.32%, DWS Premier Bond Fund surged 0.22% and Fortis Bond Fund climbed 0.20%. Canara Robeco InDiGo Fund was the worst performer declining by 0.57%, while Birla Sun Life Government Securities - Long Term and Fortis Flexi Debt Fund declined 0.27% and 0.20% respectively.

Birla Sun Life MF Declares Dividend For Dividend Yield Plus

Record date for dividend is 29 October 2010 

Birla Sun Life Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option of Birla Sun Life Dividend Yield Plus. The record date for dividend has been fixed as 29 October 2010. 

The quantum of dividend will be Rs 0.75 per unit, subject to availability of distributable surplus as on the record date. The NAV of the scheme was at Rs 16.94 per unit as on 21 October 2010. 

Birla Sun Life Dividend Yield Plus is an open-ended growth scheme. The investment objective of the scheme is to provide capital growth and income by investing primarily in a well diversified portfolio of dividend paying companies that have a relatively high dividend yield.

Sahara MF Declares Dividend For Growth Fund

Record date for dividend is 29 October 2010 

Sahara Mutual Fund has announced the declaration of dividend on the face value of Rs 10 per unit under dividend option of Sahara Growth Fund. The record date for dividend has been fixed as 29 October 2010. 

The quantum of dividend will be Rs 7.50 per unit as on the record date. The NAV of the scheme was at Rs 33.3714 per unit as on 22 October 2010. 

Sahara Growth Fund is an open-ended scheme with an investment objective to achieve capital appreciation by investing in equity and equity related instruments.

ICICI Prudential MF Declares Dividend Under Two Schemes

Record date for dividend is 29 October 2010 

ICICI Prudential Mutual Fund has announced 29 October 2010 as the record date for declaration of dividend on the face value of Rs 10 per unit under the dividend options of following schemes: 

1. ICICI Prudential Power Fund - Dividend: Rs 1.00 per unit. The scheme recorded NAV of Rs 19.38 per unit as on 21 October 2010. 

2. ICICI Prudential Equity Opportunities Fund - Dividend: Rs 0.50 per unit. The scheme recorded NAV of Rs 13.39 per unit as on 21 October 2010. 

ICICI Prudential Power Fund is an open ended growth fund. The primary objective of the scheme is to generate capital appreciation through investments in equity and equity related securities in core sectors and associated feeder industries. 

ICICI Prudential Equity Opportunities Fund is an open-ended diversified equity scheme that seeks to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of companies across large, mid and small market capitalization.

UTI MF Declares Dividend for Pharma and Healthcare Fund

Record date for dividend is 28 October 2010 

UTI Mutual Fund has approved the declaration of dividend on the face value of Rs 10 per unit under dividend option of UTI Pharma and Healthcare Fund. The record date of dividend distribution is 28 October 2010. 

Rs 1.70 per unit as on the record date shall be declared as dividend under the scheme. The NAV of the scheme as on 21 October 2010 was Rs 32.72 per unit. 

UTI Pharma and Healthcare Fund is an open ended equity oriented scheme with an investment objective of capital appreciation through investments in equities and equity related instruments of pharma and healthcare sector.

Crude sinks

Strong dollar push prices lower 

Crude oil prices ended lower on Thursday, 21 October 2010 at Nymex. Prices fell as the dollar strengthened. Better than expected batch of economic and earning reports pushed momentum towards equities today leaving commodities a bit behind. 

On Thursday, crude oil futures for light sweet crude for December delivery closed at $80.56/barrel (lower by $1.98 or 2.4%). Last week, crude ended almost unchanged for the week. 

For the month of September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 7.6%.

In the currency market on Thursday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by almost 0.4%. 

The Labor Department in US reported on Thursday, 21 October 2010 that initial claims (the number of people who signed up for state unemployment-insurance benefits) fell 23,000 to 452,000 last week, more or less in line with expectations. Data for the prior week was revised up to 475,000 from a prior estimate of 462,000. 

Also, the Conference Board in US reported on Thursday, 21 October 2010 that its leading economic index rose 0.3% in September. The report termed U.S. economic growth as 'slow' and doesn't have momentum. 

In the latest weekly inventory report, the EIA reported yesterday that crude-oil inventories were up 700,000 barrels in the week ended 15 October 2010 against an expected increase of 2.1 million barrels. Gasoline stocks increased 1.2 million barrels. Distillates supplies decreased 2.2 million barrels. 

Among other energy products on Thursday, gasoline for November delivery declined 4 cents, or 2%, to $2.04 a gallon. November heating was off 4 cents, or 1.8%, to $2.21 a gallon. 

Also on Thursday, natural gas for November delivery lost 17 cents, or 4.8%, to settle at $3.37 per million British thermal units. Natural-gas futures slumped after the government's weekly update showed a higher-than-expected increase in supplies. The Energy Information Administration said natural gas in storage increased 93 billion cubic feet for the week ended 15 October, more than the 90 billion cubic feet expected. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex. 

At the MCX, crude oil for November closed lower by Rs 63 (1.7%) at Rs 3,612/barrel. Natural gas for October delivery closed at Rs 150.5, lower by Rs 8.7 (5.5%).

Precious metals shed glaze

Prices drop as dollar strengthens following economic data 

Precious metal prices dropped from their recent all time highs on Thursday, 21 October 2010 at Comex. Prices fell as the dollar strengthened. Better than expected batch of economic and earning reports pushed momentum towards equities today leaving commodities a bit behind. 

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Thursday, gold for December delivery ended at $1,325.6 an ounce, lower by $18.6 (1.4%) on the New York Mercantile Exchange. Last week, gold ended higher by 2%. It was the ninth weekly gains for gold.

Gold ended the month of September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 21%.

On Thursday, December Comex silver futures ended lower by 73 cents (3%) at $23.14. Last week, silver ended higher by 5.1%. For the month of September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 38%. 

In the currency market on Thursday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by almost 0.4%. 

The Labor Department in US reported on Thursday, 21 October 2010 that initial claims (the number of people who signed up for state unemployment-insurance benefits) fell 23,000 to 452,000 last week, more or less in line with expectations. Data for the prior week was revised up to 475,000 from a prior estimate of 462,000. 

Also, the Conference Board in US reported on Thursday, 21 October 2010 that its leading economic index rose 0.3% in September. The report termed U.S. economic growth as 'slow' and doesn't have momentum. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year. 

Last year, after hitting a low at $807.30 per ounce on 15 January 2009, gold futures rallied almost 51% to hit an all-time high at $1217.40 per ounce during early December of 2009 but fell from those levels at the end. Silver futures had hit a low at $10.42 on 15 January 2009 and hit a high at $19.30 per ounce on 2 December 2009. Like gold, silver also ended lower than its all time high level. 

At the MCX, gold prices for December delivery closed lower by Rs 201 (1%) at Rs 19,328 per ten grams. Prices rose to a high of Rs 19,606 per 10 grams and fell to a low of Rs 19,306 per 10 grams during the day's trading. 

At the MCX, silver prices for December delivery closed Rs 741 (2%) lower at Rs 34,938/Kg. Prices opened at Rs 35,620/kg and fell to a low of Rs 34,875/Kg during the day's trading.

FIIs continue buying

Inflow of Rs 976.50 crore on 21 October 2010 

 

Foreign institutional investors (FIIs) bought shares worth a net Rs 976.50 crore on Thursday, 21 October 2010, higher than Rs 811.10 crore on Wednesday, 20 October 2010. 

The net inflow of Rs 976.50 crore on 21 October 2010 was a result of gross purchases Rs 3630.30 crore and gross sales Rs 2653.90 crore. There was an inflow of Rs 975 crore into secondary equity markets which was a result of gross purchases Rs 3627.80 crore and gross sales Rs 2652.80 crore. The BSE Sensex surged 388.43 points or 1.95% to 20,260.58 on that day. 

There was an inflow of Rs 1.50 crore in the category 'primary market & others', which was a result of gross purchases Rs 2.50 crore and gross sales Rs 1 crore. 

FII inflow in October 2010 totaled Rs 25,807 crore (till 21 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,10,167.20 crore (till 21 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $24.17 billion, above last year's $17.45 billion. 

There are a total of 1,741 foreign funds registered with the Securities & Exchange Board of India (Sebi).

IRDA defers sale of universal policies

The Insurance Regulatory and Development Authority (Irda) has suspended sale of universal life policies (ULPs), from the close of business on 22nd October 2010. 

The Authority has received several complaints on the sale practices of the insurers regarding universal life products. After examining the complaints the Authority is satisfied that the universal life products need a better regulatory framework for protecting policyholders' interest. The Authority has circulated draft Guidelines on Variable Insurance Products which will govern all so called Universal Life Insurance Products. Meanwhile, in order to ensure that the policyholders do not lock themselves in current Universal Life Products, it is hereby ordered that the insurers shall not sell any Universal Life Insurance policies from the close of business on 22nd October 2010.

Life Insurers have been asked to give their comments / reaction to the draft guidelines on or before 31 October 2010. This will enable the Authority to issue final guidelines on or before 4 November 2010 and soon after the insurers can file such products for approval.

Guidelines on Variable Insurance Products - Exposure draft 

For the purpose of these guidelines, Variable Insurance Product (VIP) shall be defined as a non- linked life insurance product that provides: 

a) Death benefit equivalent to the guaranteed sum assured plus the balance in the savings account. 

b) Maturity benefit equivalent to the balance in the savings account. 

Under this product, the policyholder shall have the flexibility of changing the sum assured during the currency of the contract subject to a minimum sum assured, as specified in this guideline. In view of this facility and also to ensure transparency, the premium shall be shown separately as Risk Premium, expense, commission and saving components. 

This product shall comply with the existing provisions in the Act, Regulations, guidelines and circulars with regard to the non-linked business and also comply with the following directions.

1. Benefit payable on death: The benefit payable on death shall be the sum assured chosen by the policyholder and the balance in the saving account as on the date of death. 

2. Minimum Sum Assured:

(i) The minimum sum assured in respect of death benefit under this product: 

For age at entry below 45 years: Regular premium including limited premium paying contracts: Rs.50000 or 10 x AP, whichever is higher. 

For age at entry above 45 years: Regular premium including limited premium paying contracts: Rs.50000 or 7 x AP, whichever is higher. 

AP is Annualized Premium selected by the policyholder at the inception of the policy. 

However, the policyholder can vary the sum assured during the currency of the contract, provided the minimum sum assured is fulfilled. Whenever the life cover is changed, the change becomes effective only from the immediately following policy anniversary. 

(ii) No Single premium is allowed under Variable Insurance Products. 

(iii) At age 65, the policyholder shall be given an option to alter the sum assured and the levy of risk premium shall be done only with the prior written consent of the policyholder. 

3. Benefit payable on Maturity: The benefit payable on maturity shall be the balance in the savings account. 

4. Minimum Policy Term: The minimum policy term shall be five years for all individual contracts. 

5. Lock-in period: All Variable Insurance products shall have a lock-in period of three years.

6. Surrender value (SV): 

(i) All these VIP contracts acquire surrender value from the first policy year, however, the surrender value shall only become payable after the lock-in period. 

(ii) The minimum surrender benefit payable will be: 

During 1st year: The policyholder will forego the interest amount on the saving balance.. Hence he / she is eligible for only the amount credited in his / her account, payable at the end of the lock-in period. 

During 2nd year: The policyholder will forego the interest amount on the second year saving balance. Hence he / she is eligible for only the amount available in his / her savings account at the beginning of the second year, payable at the end of the lock-in period. 

During 3rd year: The policyholder will forego the interest amount on the third year saving balance. Hence he / she is eligible for only the amount available in his / her savings account at the beginning of the third year, payable at the end of the lock-in period. 

7. Top-up Premium: The insurer shall not allow any top-up premiums during the term of the contract. 

8. Participating/Non-Participating: 

(i) All the Variable insurance products shall be offered as traditional products in two forms, viz., par and non-par. 

(ii) Under both the categories, there shall be a guaranteed interest rate. This interest rate is guaranteed for the whole term. Both the guaranteed rates must be declared and published in the website at the beginning of each financial year. Hence for all the products sold subsequently will be governed by these rates. In the case of par-contracts, there shall be a bonus, based on performance of investment, expenses and mortality. The bonus declaration shall be governed by Section 49 of the Insurance Act, 1938. It should be noted that the guaranteed interested shall be paid on the annual premium. The annual premium together with the accrued interest in that year will be decreased by the allowable expenses including commission, mortality charges and expenses and that shall be the opening balance in the next year. 

(iii) Hence in the case of par-contracts, at the end of each year, the bonus and the guaranteed interest applicable on the opening balance shall be credited to the savings account. 

(iv) In the case of non-par products, at the end of each year, interest amount on the basis of guaranteed interest rate applicable on the opening balance shall be credited to the savings account. 

(v) For all modes of premium payment (viz., annual, half-yearly, quarterly and monthly) the interest rate shall be credited once a year. 

9. Investments: All the funds invested under Variable Insurance product shall comply with IRDA (Investments) Regulations, 2001 as applicable to non-linked traditional products and relevant guidelines in this regard. 

10. Premiums: The premium shall have four components. 

(i) The first component shall be termed as the Risk Premium which shall be used to provide the guaranteed sum assured payable on death. 

(ii) The second component shall be the expense component. 

(iii) The third component shall be the commission rates offered under the product. 

(iv)The fourth component shall be termed as the savings premium which shall form part of the accumulated fund. 

11. Charges and Commission: The Variable Insurance Products shall levy the following charges: 

(i) Risk Premium, as stated in the policy contract, to provide life cover; 

(ii) Expense component shall not exceed at any point of time the maximum given as: 

1st year: 25% of the first year premium subject to a maximum of Rs 10,000 

2nd year onwards: 5% of all subsequent premium not exceeding Rs 5000 in any policy year 

(iii) Commission under Variable Insurance Products shall not exceed the following: 

1st year: 35% of the risk premium and 2% on the Gross premium less the Risk Premium 

2nd year: 7.5% of the risk premium and 2% on the Gross premium less the Risk Premium 

3rd year onwards: 5% of the risk premium and 2% on the Gross premium less the Risk Premium 

12. Riders: There shall not be any rider attached to this product. 

13. Revival: If due premiums are not paid within the grace period, the policy shall become a paid-up policy. This due date of premium shall be known as date of paid up policy. The policyholder may revive the policy within 12 months from the date of first unpaid premium. 

During this revival period, the life cover ceases. If the policy is not revived during this revival period, then the balance in the saving account, after deduction of the surrender penalty as applicable, shall be credited to discontinuance fund. On this balance, a minimum interest rate of not less than 75 basis points of the respective guaranteed interest rate is applicable. This amount is payable to the policyholder, after the lock in period. 

14. Furnishing Statements of Accounts: Saving account statement shall be issued on every policy anniversary, giving the break up of the opening balance, premium received, deductions towards mortality, commission and expenses, interest added and closing balance.

Life Insurance Corporation of India crosses 1000 crore mark under their new ULIP Plans

The Life Insurance Corporation of India has crossed the Rs 1000 crore mark under the new ULIP plans, Pension Plus and Endowment Plus. The Total Premium Income under these two plans as on 18 October 2010 was Rs 1282 crore, approximately. These new plans were introduced in the month of September following the new guidelines laid down by the IRDA. 

'Pension Plus'- Unit Linked Deferred Pension Plan, was launched on 02 September during the LIC's 54th Anniversary celebrations. About 150 crore of premium have been collected under the Plan from more than 30000 policies. This is the only Unit linked pension product available in the market post the introduction of new IRDA regime. 'Endowment Plus' plan was launched on 20th September and was LIC's 16th linked product. 

More than 1000 crore have been garnered from Endowment Plus alone from more than 2 lakh policies, in merely 29 days. 

As at 30 September 2010, the New Business Premium Income of the Corporation was Rs 23321 crore coming from 14507344 policies. The First Premium Income has registered an impressive growth rate of 83.07%.

SBI MF Announces Changes under its Schemes

SBI Mutual Fund has decided to introduce additional Systematic Investment Plan (SIP) dates and alter the benchmark index under Magnum Midcap Fund. 

Currently, investment in various schemes of SBI Mutual Fund through SIP is only allowed on 5th/15th/25th of every month. It has now been decided to provide this facility on three additional dates viz. 10th, 20th & 30th (for February, last business day) of every month. 

In addition to the above change, the benchmark index for Magnum Midcap Fund shall be CNX Midcap Index.

ICICI Prudential MF Announces Changes under its Schemes

With effect from 25 October 2010 

ICICI Prudential Mutual Fund has approved 7th, 10th, 15th and 25th day of each month as transaction date(s) for Monthly Systematic Transfer Plan (STP), in addition to the last business day of the month as transaction date with effect from 25 October 2010. The changes will be applicable to all the schemes of the fund house.

Gold drops around 3% on radical jump in dollar

US currency hits two-week highs and commodities turn pale as China hikes rates for first time in three years 

Gold witnessed a massive collapse yesterday following across the board sell off in commodities as the US Dollar recorded massive gains and a surprise rate hike from China caught investors off guard. The global equities sunk and Gold also caved in, as the critical $1350 mark was broken below in New York without offering much of a resistance. 

China hiked its one-year benchmark deposit rate to 2.50% from 2.25 %and the one-year lending rate to 5.56% from 5.31%. The move marked the first rate change for the world's second largest economy since December of 2007. 

The commodity was mixed in Asia yesterday, but extended the slide post a rate hike from China in London trades as dipped around $40 to $1332.30 by in New York before it rallied back higher for a bit, but it then fell back off again in afternoon trade and ended with a loss of 2.58% at $1336 per ounce. 

MCX Gold futures also broke under Rs 19800 per 10 grams mark and ended the day under Rs 19600. The counter shed Rs 333 per 10 grams to end at Rs 19558 per 10 grams after tumbling to a low of Rs 19517 per 10 grams. The commodity has witnessed a bounce back in Asia, with the prices quoting slightly higher at $1938.90, up $2.90 per ounce from the previous close. US dollar has lost out slightly after testing its two-week high of 1.3696 against the Euro.

Crude crushed on China effect

Prices end down more than 4% on ideas that a surprise rate increase in China would dent demand for commodities 

Crude Oil was crushed in the last session on ideas that a surprise rate increase in China would dent demand for commodities and the US dollar rallied sharply. The NYMEX Oil futures slumped more than 4% yesterday- witnessing their biggest one-day drop since February as all commodities slumped and the DOW felt a ripple effect from the Chinese monetary tightening getting a dose of its own medicine. Dow slumped sharply as buyers retreated in reaction to China's unexpected rate hike, its first in nearly three years.

The upbeat undertone on the economic front was clouded by the Chinese moves as a rise in the housing starts failed to lend support. Stocks sank by substantial margins with the Dow shedding 165.07 points or 1.5% to close at 10,978.62. 

The crude markets had started mixed but then witnessed a sell off as China hiked its one-year benchmark deposit rate to 2.50% from 2.25 %and the one-year lending rate to 5.56% from 5.31 percent. The move marked the first rate change for the world's second largest economy since December of 2007.

Crude dipped following this as all the commodities including Gold fell. The prices broke under the $82 per barrel mark in Europe and ended under $80 per barrel in New York. Crude oil for November delivery closed down by $3.59 to $79.49 a barrel on the New York Mercantile Exchange. It was also oil's first time settling under $80 a barrel in October and at its lowest price since Sept. 29.

Data out earlier in the week showed that the US industrial production slipped in September following slide in manufacturing activity, according to figures released by the Federal Reserve. The output of the industrial sector of the economy decreased 0.2% in September after having increased 0.2% in August. This represents the first monthly decline in industrial production since mid-2009.

The Fed's index for manufacturing decelerated sharply in the third quarter. After having jumped at an annual rate of 9.1% in the second quarter, factory output gained 3.6% in the third quarter.

MCX Crude oil futures closed down Rs 75 at Rs 3655 per barrel for the November futures, which turned the benchmark amid hectic activity ahead of the expiry of the near month series.

FII buying vigour slows down

Inflow of Rs 340.90 crore on 19 October 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 340.90 crore on Tuesday, 19 October 2010, lower than an inflow of Rs 815.70 crore on Monday, 18 October 2010. 

The net inflow of Rs 340.90 crore on 19 October 2010 was a result of gross purchases Rs 3329.10 crore and gross sales Rs 2988.10 crore. There was an inflow of Rs 306.10 crore into secondary equity markets which was a result of gross purchases Rs 3291.70 crore and gross sales Rs 2985.60 crore. The BSE Sensex fell 185.76 points or 0.92% to 19,983.13 on that day.

There was an inflow of Rs 34.90 crore in the category 'primary market & others', which was a result of gross purchases Rs 37.40 crore and gross sales Rs 2.50 crore. 

FII inflow in October 2010 totaled Rs 24,019.40 crore (till 19 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,08,379.60 crore (till 19 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $23.77 billion, above last year's $17.45 billion. 

There are a total of 1,738 foreign funds registered with the Securities & Exchange Board of India (Sebi).

Religare Infrastructure Fund to be converted into an Open Ended Equity Scheme

With effect from 23 November 2010 

Religare Mutual Fund has decided to convert Religare Infrastructure Fund, a close ended equity scheme with a maturity of 3 years (maturing on 22 November 2010) into an open ended equity scheme with effect from 23 November 2010. Accordingly, the load structure has been proposed to be altered. It includes for transactions through Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP)

In respect of each purchase / switch-in of units, an exit load of 1% is payable, if units are redeemed /switched-out on or before 1 year from the date of allotment. 

In respect of each purchase / switch-in of units, no exit load is payable, if units are redeemed /switched-out after 1 year from the date of allotment. 

In case an investor does not wish to continue to hold units in view of the said changes, they will have the option to exit the said scheme at the prevailing NAV, without any exit load. The said exit option can be availed between 22 October 2010 to 22 November 2010.

MFs in buying mode

Inflow of Rs 139.10 crore on 19 October 2010 

Mutual funds (MFs) bought shares worth a net Rs 139.10 crore on Tuesday, 19 October 2010 as against an outflow of Rs 1048.40 crore on Monday, 18 October 2010. 

The net inflow of Rs 139.10 crore on 19 October 2010 was a result of gross purchases Rs 599.60 crore and gross sales Rs 460.40 crore. The BSE Sensex fell 185.76 points or 0.92% to 19,983.13 on that day. 

MFs sold shares worth net Rs 5,655.10 crore in October 2010 (till 19 October 2010). Mutual funds had sold equities worth a net Rs 7,236.30 crore in September 2010.

Crude drops again

Friday's losses erase all of crude's weekly gains 

Crude oil prices ended lower on Friday, 15 October 2010 at Nymex. Prices fell due to a strong dollar. Energy department's weekly inventory report on crude stockpiles a day before also pushed crude prices lower on Friday. 

On Friday, crude oil futures for light sweet crude for November delivery closed at $81.25/barrel (lower by $1.44 or 1.7%). With Friday's loss, crude erased all of its earlier weekly gains and finally ended almost unchanged for the week. 

For the month of September, crude prices ended higher by 11.2%. For the third quarter, crude ended higher by 5.7%. Crude had ended second quarter of CY 2010 lower by 9.3%. For the first quarter of this year, crude rose by 5.5%. Year to date, crude is higher by 7.3%. 

In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by almost 0.4%. 

The Commerce Department in US reported on Friday, 15 October 2010 that U.S. retail sales for September increased 0.6%, which is stronger than the 0.4% increase that had been widely expected. Sales less autos for September increased 0.4%, as expected. 

Consumer prices for September were muted. Overall prices increased 0.1% month-over-month and core prices were unchanged month-over-month. Market had called for a 0.2% monthly increase in overall prices and a 0.1% monthly increase in core prices. 

Separately, the New York Empire Manufacturing Index for October came in at 15.73, which is not only an improvement from the 4.10 registered in the prior month, but also well above the 5.75 that had been widely expected. 

In addition, the preliminary Consumer Sentiment reading for October from the University of Michigan came in at 67.9, down from 68.2 in the prior month and below the 68.5 that had been widely expected. Business inventories for August increased 0.6%, which is a bit more than the expected increase of 0.5% after a 1.1% increase for the prior month. 

The EIA reported on Thursday, 14 October that crude-oil inventories declined by 400,000 barrels from the previous week, contrasting with forecasts for a 1.5 million-barrel rise. The EIA also reported that gasoline inventories declined by 1.8 million barrels, and distillate fuel inventories fell by 300,000 barrels. 

Also, OPEC oil ministers meeting met in Vienna on Thursday, and as expected, left production targets unchanged, just shy of 25 million barrels a day, even though actual production levels are closer to 27 million a day. 

During the week, The International Energy Agency and the Energy Department's Energy Information Administration raised their expectations for world oil demand. 

The Paris-based agency revised higher its 2010 and 2011 estimates for global oil demand by 300,000 barrels a day on average. Global oil demand is now expected to average 86.9 million barrels a day in 2010, up 2.5% year-on-year, and 88.2 million barrels a day in 2011, an increase of 1.4%. 

On the other hand, EIA raised its outlook for world oil demand this year by 1.7 million barrels per day to 86.06 million barrels, citing strong oil demand from China and developed countries in the first half. For 2011, EIA said it expects global oil demand to rise by 1.4 million barrels a day to 87.44 million barrels next year, unchanged from its prior forecast. It also said that it expects OPEC production to rise by 300,000 barrels per day this year and 600,000 barrels per day in 2011, keeping prices in check. The agency raised its supply project from non-OPEC countries to 900,000, up 200,000, largely due to near-record crude oil output in Russia. 

Among other energy products on Friday, gasoline for November delivery fell 3 cents, or 1.5%, to $2.10 a gallon. On the week, gasoline has declined roughly 2%. 

Also on Friday, November natural gas was off 12 cents, or 3.3%, to settle at $3.54 per million British thermal units. On the week, natural gas has retreated 3.2%. 

Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

Precious metals register healthy weekly gains

Prices turn little pale on the last day of the week 

Precious metal prices dropped on Friday, 15 October 2010 at Comex. Prices fell as economic reports hinted at a stronger economic picture and as the dollar strengthened. 

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullion metals have registered increase in prices despite strong dollar in recent times and vice versa. 

On Friday, gold for December delivery ended at $1,372 an ounce, lower by $5.6 (0.4%) on the New York Mercantile Exchange. Earlier in the day, it reached an intra day high of $1,386.4. For the week, gold ended higher by 2%. It was the ninth weekly gains for gold. 

Gold ended the month of September 2010 and the third quarter higher by 5%. It was eighth consecutive quarterly gain for gold. For the second quarter, gold ended up by 12%. For the first quarter of this year, gold rose by 1.7%. On a year to date basis, gold is higher by 22.3%. 

On Friday, December Comex silver futures ended lower by 15 cents (0.6%) at $24.29. For the week, silver ended higher by 5.1%. For the month of September, silver ended higher by 12%. For the third quarter, silver gained nearly 18%. For the second quarter, silver ended higher by 3.1%. For the first quarter of this year, silver rose by 3%. On a year to date basis, silver is higher by 41.2%. 

In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by almost 0.4%. 

The Commerce Department in US reported on Friday, 15 October 2010 that U.S. retail sales for September increased 0.6%, which is stronger than the 0.4% increase that had been widely expected. Sales less autos for September increased 0.4%, as expected. 

Consumer prices for September were muted. Overall prices increased 0.1% month-over-month and core prices were unchanged month-over-month. Market had called for a 0.2% monthly increase in overall prices and a 0.1% monthly increase in core prices. 

Separately, the New York Empire Manufacturing Index for October came in at 15.73, which is not only an improvement from the 4.10 registered in the prior month, but also well above the 5.75 that had been widely expected. 

In addition, the preliminary Consumer Sentiment reading for October from the University of Michigan came in at 67.9, down from 68.2 in the prior month and below the 68.5 that had been widely expected. Business inventories for August increased 0.6%, which is a bit more than the expected increase of 0.5% after a 1.1% increase for the prior month. 

Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.

FII buying vigour slows down

Inflow of Rs 654 crore on 15 October 2010 

Foreign institutional investors (FIIs) bought shares worth a net Rs 654 crore on Friday, 15 October 2010, on the top of a massive inflow of Rs 2894.30 crore on Thursday, 14 October 2010. 

The net inflow of Rs 654 crore on 15 October 2010 was a result of gross purchases Rs 2922 crore and gross sales Rs 2268 crore. There was an inflow of Rs 154.80 crore into secondary equity markets which was a result of gross purchases Rs 2422.10 crore and gross sales Rs 2267.30 crore. The BSE Sensex fell 372.59 points or 1.82% to 20,125.05 on that day. 

There was an inflow of Rs 499.20 crore into the category 'primary market & others', which was a result of gross purchases Rs 499.90 crore and gross sales Rs 0.70 crore. 

FII inflow in October 2010 totaled Rs 22,862.80 crore (till 15 October 2010). FIIs had bought equities worth Rs 24978.50 crore in September 2010. FII inflow in the calendar year 2010 totaled Rs 1,07,223 crore (till 15 October 2010). In dollar terms, the net equity inflows in 2010 now stands at a record $23.51 billion, above last year's $17.45 billion. 

There are a total of 1,737 foreign funds registered with the Securities & Exchange Board of India (Sebi).

MFs step up selling

Outflow of Rs 1085 crore on 15 October 2010 

Mutual funds (MFs) sold shares worth a net Rs 1085 crore on Friday, 15 October 2010, substantially higher than Rs 399.40 crore on Thursday, 14 October 2010. 

The net outflow of Rs 1085 crore on 15 October 2010 was a result of gross purchases Rs 343.70 crore and gross sales Rs 1428.70 crore. The BSE Sensex fell 372.59 points or 1.82% to 20,125.05 on that day. 

MFs sold shares worth net Rs 4,745.90 crore in October 2010 (till 15 October 2010). Mutual funds had sold equities worth a net Rs 7,236.30 crore in September 2010.

Birla Sun Life MF Standardize the Minimum Investment Amount

With effect from 18 October 2010 

Birla Sun Life Asset Management Company Limited has decided to standardize the minimum Investment Amount for certain Special Products/Facilities as offered under various/designated schemes of Birla Sun Life Mutual Fund. 

Accordingly, the minimum investment amount for availing Birla Sun Life Century SIP (CSIP) and Systematic Investment Plan (except for Quarterly Systematic Investment Plan) shall be Rs 1,000 per month with effect from 18 October 2010. The minimum investment amount for availing Systematic Investment Plan (SIP) under any (open ended) Equity Linked Savings Schemes (ELSS) shall continue to be Rs 500 per month/Quarter, as applicable. 

Further, the minimum investment amount for availing CSIP under designated (open ended) Equity Linked Savings Schemes (ELSS) shall be Rs 1,000 per month. The minimum number of installments for availing Monthly Systematic Investment Plan shall remain unchanged.

The above modified provision will be applicable to all fresh applications under the said facility, registered on or after 18 October 2010. All other features and terms and conditions of the SIP/CSIP facility shall remain unchanged.