August 6, 2008
House prices in the UK have been falling on a month on month basis for some months now, with industry officials predicting that they will continue to fall, and some officials claiming that within the next two years the value of homes could plummet by a third. A recent report from the Nationwide has shown that house prices have now suffered their biggest annual fall since records began in 1991. The 1.7% house price drop in July has increased the annual fall to 8.1%, which is the highest since the building society started to keep records.
According to figures the cost of the average home is now £169,316, and this is around £15,000 less than it was this time last year. House prices are now at their lowest level since August 2006 according to the loan lender, and prices have already fallen for nine consecutive months. However, the research showed that property prices were still around £11,000 higher than they were three years ago. Activity in the housing market has also been very low, with a combination of tighter credit conditions, increased wariness amongst buyers relating to further falls, and reluctance on behalf of seller to reduce asking prices all contributing to the lack of activity.
An economist from Nationwide said: “The weakening economy and poor housing market sentiment do not suggest that the market will recover quickly.” However, she added that some lenders had reduced mortgage rates recently due to a fall in swap rates, which are indicative of mortgage interest rates. She said: “As the cost of mortgages begins to come down, activity could be bolstered and restore some liquidity to the housing market. However this is not expected to happen overnight.”
Another economist predicted that house prices would continue falling, stating: “With the economy weakening and few signs of an end to the credit squeeze, the pace of the house price correction is likely to continue to gather momentum over the remainder of this year.”
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May 23, 2008
Sundaram BNP Paribas Mutual Fund has informed investors that the NFO of Sundaram Entertainment Services Opportunities Fund has been extended till May 23, 2008 for the benefit of investors rushing in to make last minute applications. Sundaram Entertainment Services Opportunities Fund is an open ended mutual fund and is growth oriented mf scheme. The company will invest in companies in the services industry focussing on providing entertainment services. This is the first mutual fund scheme focussing on Entertainment Service Opportunities.
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April 30, 2008
Reliance Mutual Fund (Reliance Capital Asset Management Ltd) has announced the NFO of its latest mutual fund scheme Reliance Banking Exchange Traded Fund. Reliance Banking Exchange Traded Fund will be an open ended fund which will be listed and traded on the stock exchanges like any other exchange traded fund (ETF). The NFO opens on May 12, 2008 and will close for public subscription on May 30, 2008. The fund will invest in CNX Banking Index based security and will try to replicate the exact weightages given to each of the stocks in the CNX Bank Index, in its portfolio. Hence the returns offered by Reliance Banking ETF will closely match the returns given by CNX Bank Index. However the returns may not be exactly the same as that provided by CNX Bank Index due to tracking error and transaction costs involved.
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April 25, 2008
Sahara Mutual Fund has announced the NFO of Sahara Power and Natural Resources Fund. The new fund offer will open for public subscription on 28 April 2008 and will close for subscription on 27 May 2008. There is an entry load of 2.25% for investors buying units in the Sahara Power and Natural Resources Fund by applying in the NFO. However the mutual fund does not have any exit load. The minimum investment amount in this mutual fund scheme is Rs. 5000. Sahara Power and Natural Resources Fund will be an open ended fund.
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January 17, 2008
Real Estate Mutual Funds have finally received SEBI approval. SEBI has however issued strict guidelines to real estate mutual funds on where they can invest their funds and how the NAV should be claculated. Real Estate Mutual Funds can only be closed ended mutual funds and cannot be open ended mutual funds. Real Estate Mutual Funds should be listed on a recognised stock exchanges. Hence most Real Estate Mutual Funds will be listed on the NSE or BSE or both. This will provide an exit opportunity for investors who have invested in the mutual fund by means of the Real Estate Mutual Fund NFO.
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December 26, 2007
Sahara Classic Fund is the latest offering from the stable of Sahara Mutual Fund. The NFO of Sahara Classic Fund opened for public subscription on Decemeber 18, 2007. The Sahara Classic Fund New Fund Offer closes on January 16, 2007. Each unit of Sahara Classic Fund is priced at Rs. 10 during the NFO period. Sahara Classic Fund is an open ended Mutual Fund and the minimum investment amount in the fund is Rs. 5000 per person. Sahara Classic Fund will primarily invest in debt and money market instruments.
Posted in Mutual Fund NFO, New Fund Offer No Comments »
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