COVER STORY

Capital Market in the BRIC Economies

- - Surjit Mohapatra

The past few years have witnessed large inflows of foreign capital into the emerging markets. This article takes a closer look at the capital market performance of the BRIC economies in the recent past. For last couple of years, BRIC economies have witnessed considerable inflows of foreign funds. According to London-based, Head of Global Economic Research at Goldman Sachs Group Inc., by 2050 only the US and Japan could have economies larger than any of the BRIC economies. This report reflects that by 2050 any one or all the BRIC countries will be in a leading position in the world economy.

© 2007 IUP . All Rights Reserved

MUTUAL FUNDS

MFs Industry in India : Attaining Maturity

- - P Hanumantha Rao, Vijay Kr. Mishra

In recent times, the Indian Mutual Fund Industry has witnessed several structural and regulatory reforms. This article takes a closer look at some of those changes. Even though the capital market attracts people, there are several problems associated with it. While investing directly into capital market one has to be careful to judge the valuation of the stock and understand the complexities involved in the stock price fluctuations. So, a person with moderate knowledge of capital market generally prefers to invest in Mutual Funds (MFs). In recent times, MFs industry in India is growing rapidly and is undergoing tremendous changes.

© 2007 IUP . All Rights Reserved

MUTUAL FUNDS

Mutual Funds : Present and Future Scenario

- - S Vijayalakshmi

The article takes a closer look at Mutual Fund investing through SIP, Fund of Funds, Gold ETFs, REMFs and CPS. The popularity of Mutual Funds (MFs) is increasing and India's robust capital market has resulted in the growth of its MF sector. Investors who were disenchanted with MFs have returned in a big way. To look at a few figures, the Asset Under Management (AUM) of MFs in India grew by 57%, amounting to over 3 lakh cr between August 2005 and August 2006.

© 2007 IUP . All Rights Reserved

COMMODITIES

Commodities Market in India : A Bigger Perspective

- - Sunitha Ravi

The article looks at the commodities market in India with specific reference to the largest oil producing seed, soybean. Commodities markets around the world are ten times bigger than the equity markets. They are less volatile than equity market. Futures trading in commodities is fast spreading into the rural areas of India at a faster pace than stock market operations. India is one of the largest producers of a large number of commodities and has a long history of trading in commodities.

© 2007 IUP . All Rights Reserved

PERSONAL FINANCE

Financial Planning : Challenges before the Investors

- - Meenu Verma

This article looks into the various reasons that lead people towards financial advisors, and the reasons that give financial advisors an edge over a layman while making investment decisions. A need, as defined by the Oxford dictionary, mens "a situation in which something is necessary or must be done". Needs Analysis is the process of identifying and evaluating needs. The most well-known theory of needs is populated in Abraham Maslow's hierarchy of needs theory. Maslow put forward that in every human being there exists a hierarchy of needs according to which he assesses them, which can be broadly categorized under the following heads.

© 2007 IUP . All Rights Reserved

PERSONAL FINANCE

Private Client Management : A Comprehensive Financial Planning Approach

- - Debarati Bhattacharya

This article is the fourth part of the five-series article on Private Client Management. A vital part of any financial planning process is to ensure that ones family and the assets are protected. To help a person plan for the unexpected things in life such as; living too long and dying too early, one needs to review the economic value of ones current life. This particularly calls for a better understanding of the type of insurance plan, that best suits an individual.

© 2007 IUP . All Rights Reserved

FUNDAMENTAL ANALYSIS

Economics of a Portfolio

- - C Vijaychandra Kumar

Over the years, the concept of Economic Value Added (EVATM) has gained considerable popularity. This article applies EVATM in portfolio construction with reference to select Indian companies. With the growth of the economy and increase in savings, investors require new channels of investment. Further, they require professional managers for their funds and this has led to the expansion of funds management business. Funds management involves several activities like portfolio construction, constant performance monitoring, portfolio churning etc., the focus here is portfolio construction process.

© 2007 IUP . All Rights Reserved

INDUSTRY ANALYSIS

A Study of Select Indian Manufacturing Companies

- - Tamal Datta Chaudhuri

This article provides a detailed view of the stock market peformance of select Indian manufacturing companies. In a span of 194 days, from October 28, 2005 to May 10, 2006, the BSE Sensex rose from 7,686 to 12,612, a gain of 4,926 points. It then fell very fast to a level of 8,929 on June 14, 2006, i.e., a loss of 3,683 points in 35 days. It again reached a level of 12,928 on October 16, 2006, a gain of 3,999 points in a span of 124 days. Subsequently, the Sensex crossed the 13,000 mark. Figure 1 shows the movement in the Sensex for the period August 21, 2003 to October 20, 2006.

© 2007 IUP . All Rights Reserved

REGULATORY ENVIRONMENT

Hedge Funds and Participatory Notes : The Regulatory Perspective

- - Dhandapani Alagiri

Hedge funds and participatory notes have always been a cause of concern for capital markets across the globe. This article looks into the regulatory aspects of the same in the Indian context. The Indian equity market has grown and evolved over the years to attain global standards in trading technology, disclosure norms and investor protection. Depositories, electronic clearing and order matching and introduction of new products such as derivatives have improved the functioning of the Indian stock markets. The participation of retail and institutional players has increased thus, increasing the depth of the market. Retail participation has been significant through the mutual funds route, but the retail participation of foreign investors is not allowed and foreign investment has to be routed through registered Foreign Institutional Investors (FII). players has increased thus, increasing the depth of the market. Retail participation has been significant through the mutual funds route, but the retail participation of foreign investors is not allowed and foreign investment has to be routed through registered Foreign Institutional Investors (FII).

© 2007 IUP . All Rights Reserved