New Fund

Pru ICICI Equity & Derivatives

Prudential ICICI Mutual Fund has come out with a new fund: Prudential ICICI Equity & Derivatives Fund which offers two types of plans:

Income Optimiser Plan

Under this plan, the money will be employed in arbitrage and derivative strategies for the equity market and also invest in short-term debt. The unhedged equity exposure will be restricted to just five per cent of the overall portfolio. Therefore, the fund will have a strong focus on restricting the downside.

There is no entry load but if redeemed within six months from the date of allotment of the NFO ( New Fund Offer ), then a 1 per cent load will be charged.

The minimum application for the individual investor is Rs 5,000.

Wealth Optimiser Plan

Whereas this plan will try to exploit the arbitrage opportunities available in the market, but it is a more aggressive option as the unhedged equity exposure can go up to 80 per cent of the portfolio value. As compared to Income Optimiser, this one will have the potential to generate higher returns, hence so will be the risk.

For this plan also the minimum application for the investor is Rs 5,000.

There is a 2.25 per cent entry load and a 1 per cent exit load if redeemed within six months from date of allotment of the NFO.

Both the plan offer growth and dividend (payout or reinvestment) option.

NFO Opens: November 8, 2006
NFO Closes: December 7, 2006

Think Money Think Real Estate Stocks

Real Estate the currently biggest buzz in India and real estate stocks in the Bombay stock exchange. Almost all the reality stocks hit their upper circuit as soon as the market opened today and there was no let till the market closed.

Real estate stocks have give unimginable returns over the past one and half year just take the example of Unitech whose 1 yr low was 9.81 and right now at 1yr high standing at 426, the gain of 4340%. And there is lot more to come in 1-2 yrs.

I have created a list of of reality stocks in order of preference of mine.

Stocks cmp 52wk high 52wk low

1. Ansal Housing ( 345 ) 500 80
2. Ansal Buildwell ( 218 ) 460 36
3. Unitech ( 426 ) 426 9.80
4. Ansal Properties( 923 ) 1040 201
5. Peninsula land ( 682 ) 967 186
6. Swan Mills ( 103 ) 125 11
7. Dawn Mills ( 12058 ) 14046 2955
8. Ruby Mills ( 338 ) 443 204

These stocks are of great value and if one is wiling to hold it for a year or so and one can again see is money growing like the one see in these stocks. There can be at times short time correction in these stocks but the long term bull is there to see these stocks get multifold from their current price. Upcoming IPO from DLF will see them firm in coming month for short term investors for making quick bucks.

• Citigroup global market bought 1 lac shares of Ansal Housing @ 328 on 10th Nov.
• Dawn Mills will be merged in Peninsula land in the ratio of 1:20.

Blue Bird IPO opens on Nov 16

Blue Bird (India) Ltd, a manufacturer of paper based notebooks and stationary products, is entering the capital market with a public issue of 87.75 lakh equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The issue opens for subscription on November 16 and closes on November 22.

The price band for the issue has been fixed at Rs 90 to Rs 105. Out of the net offer to the public, 50 per cent is reserved for allotment to qualified institutional buyers, of which 5 per cent is reserved for mutual funds; 15 per cent is reserved for non-institutional buyers and the balance will be allotted to the retail investors on a proportionate basis.

The issue funds will finance the construction of the company's second notebook manufacturing and printing unit in South India and expand capacity at its existing Pune facility.

DSP Merrill Lynch is the book running lead manager to the issue.