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  • Archive for July 1st, 2008

    Before investing in Mutual Funds

    Posted by sushil on 1st July 2008

     

    MOST of us have an inner rebel. That’s why often fall for the guy mother warned us against. Or continue smoking even when told not to.

    So, it’s no wonder that when mutual fund advertisements worth millions of dollars, tell us to ‘Please read the offer document (OD) carefully before investing’, we still don’t! This is understandable; after all it’s a 100-page document filled with jargon. But in the long run, you will be the loser, if you don’t.

    The Securities and Exchange Board of India (SEBI) have even come out with an abridged version called the Key Information Memorandum, which stipulates standard sections and disclosures in all ODs.

    An OD is critical because it tells you whether your money is in the right hands, at the right place and at the right time. Your financial advisor will have a copy, and the company web site should have it online, too.

    If you still don’t want to read the whole document, take the easy way out. wealth scopes out 10 must-reads in the OD.

    1. Date of issue

    Verify that you have the latest edition of the OD (an OD must be updated once a year, at least).

    2. The minimum investment

    Mutual funds differ both in the minimum initial investment required, and the minimum for subsequent investments.

    For example, equity funds may stipulate Rs 5,000, while institutional premium liquid plans may stipulate Rs 10,000,000 (Rs 10 crore) as the minimum amount.

    3. Why invest

    The goal of each fund must be clearly defined, from income to long-term capital appreciation. You, the investor, must be sure that the fund’s objective matches with your’s.

    4. Investment policy

    An OD will outline general strategies implemented by the fund managers. You will learn what types of investments will be included, such as government bonds (with ratings) or stocks, considered appropriate. Be sure to check if it offers adequate diversification.

    5
    . Risk factors

    Every investment involves some level of risk. Look for descriptions of the risks associated with investments in the fund (like credit risk, market risk or interest-rate risk) and decide if it matches your risk appetite.

    For example, a mutual fund Monthly Income Plan (MIP) invests mainly in bonds and gilts (up to 90 per cent) with a sprinkling of equity(10 per cent) to generate capital appreciation. This is passed on to customers as monthly income.

    But remember: it is subject to availability of distributable surplus. In 2004, many mutual fund customers underestimated this market risk and were caught by surprise when the MIPs gave low/negative returns.

    They may have been better off with a a Post Office MIP that assures an 8 per cent monthly income payment for its six-year tenure.

    6. Past record

    ODs contain selected per-share data, which includes the net asset value and total return for different time periods, since the fund’s inception.

    Performance data listed in an OD are based on standard formulae established by the SEBI and enable investors to make comparisons with other funds. So investors should check track records over a period of time that matches their own investment horizon but always remember that ‘past performance is not an indication of future performance’.

    Additionally, investors must check that the benchmark chosen by the fund to compare its relative performance is appropriate. In addition, investors should keep in mind that many of the returns presented in historical data don’t account for tax. They must look at any fine print in these sections, as they should say whether or not taxes have been taken into account.

     

    Posted in Investments, Mutual Funds | 1 Comment »

    Top 10 Anti Oxidant Foods

    Posted by ish on 1st July 2008

    We’ve known for years that antioxidants can help prevent heart disease and cancer, reduce blood pressure and slow the effects of aging. These naturally occurring compounds protect the body from harmful, excess free radicals, sweeping them up before they can cause damage. And the best way to lay an antioxidant-rich foundation that’s inhospitable to toxins and free radicals is through a combination of whole foods.

     BERRIES 

    Few fruits have quite the provocative allure, the fragile charm or the nutrients of berries. They’re full of fiber, minerals and vitamins, and loaded with healing antioxidants. Blueberries, raspberries and blackberries are rich in proanthocyanidins, antioxidants that can help prevent cancer and heart disease. Strawberries, raspberries and blackberries contain ellagic acid, a plant compound that combats carcinogens. Blueberries also appear to delay the onset of age-related loss of cognitive function.

    Quick Tips: Stir raspberries into vanilla yogurt, add whole blueberries to salads, or dress up sliced strawberries with a little honey, balsamic vinegar and black pepper.

     BROCCOLI 

    Maybe you never listened when Mom said, “Eat your broccoli.” So listen now. Broccoli and other cruciferous vegetables like cabbage, cauliflower and Brussels sprouts, can help prevent cancer and ward off heart disease. Cruciferous vegetables contain a compound called indole-3-carbinol (I3C - a potent antioxidant that breaks down estrogen in the body) that reduces the risk of breast cancer and other estrogen-sensitive cancers, like cancer of the ovaries and cervix. Other studies have shown that broccoli can help fight cervical dysplasia, a precancerous condition. Broccoli also contains other protective constituents like beta-carotene, which can help prevent cancer and heart disease.

    Quick Tips: Wrap cooked, chilled broccoli with roasted pepper strips, or toss steamed broccoli with olive oil, chopped black olives and crushed red pepper flakes.

     TOMATOES 

    Tomatoes are fast becoming one of our favorite modern foods, and for good reason — they can ward off certain kinds of cancer, prevent macular degeneration and cataracts, and help maintain mental function as we age. Tomatoes contain lycopene, a relatively rare member of the carotenoid family, also found in pink grapefruit and twice as powerful as beta-carotene. Studies have shown that men who eat more tomatoes or tomato sauce have significantly lower rates of prostate cancer. Other studies suggest lycopene can help prevent lung, colon and breast cancers. Tomatoes also contain the antioxidant glutathione, which helps boost immune function. Note: cooked tomatoes are preferable, since heat allows more desirable antioxidants in tomatoes to be made available to the body. And because lycopene is fat-soluble, eating tomatoes with oil can improve absorption.

    Quick Tips: Add minced sundried tomatoes to mashed potatoes, or toss Roma tomatoes with chopped fresh basil and olive oil and serve over pasta.

     RED GRAPES 

    A little red wine can keep your heart beating longer and stronger. Why? Mostly because of substances called resveratrol and quercetin found in red grapes. These potent antioxidants boost heart health by acting as free-radical scavengers, reducing platelet aggregation and helping blood vessels remain open and flexible. Resveratrol can also protect against cancer and reduce the risk of inflammatory diseases, gastric ulcers, stroke and even osteoporosis.

    Quick Tips: Snack on frozen red grapes for a sweet treat, or heat organic red wine with cinnamon sticks and a few whole cloves.

     GARLIC 

    The “stinking rose,” perhaps the world’s oldest known medicinal and culinary herb, is packed with antioxidants that can help fend off cancer, heart disease and the effects of aging. The sulfur compounds that give garlic its pungent odor are thought to be responsible for its healing benefits. Studies have shown that garlic keeps the heart healthy by lowering cholesterol levels, reducing blood pressure, fighting free radicals and keeping blood from clotting. Other studies suggest that eating garlic regularly can help prevent cancer. It also has potent anti-fungal properties and can help treat asthma and yeast infections.

    Quick Tips: Roast whole heads of garlic until soft, and spread on warm baguette slices or puree roasted peppers with garlic for a fast sauce.

     SPINACH 

    Popeye may have thought eating spinach gave him strength, but it also allowed him to hit a nutritional jackpot. Because lutein (an antioxidant found in spinach) is the main pigment in the macula - the region of maximum visual sensitivity - it can help protect your vision. Studies have shown that people who eat spinach are less likely to develop cataracts and macular degeneration, the two most common causes of vision loss. Lutein appears to work by shielding the retina from sun damage and fighting free radicals that can harm the eyes. Some preliminary studies have suggested that lutein can also help prevent heart disease.

    Quick Tips: Stir chopped, fresh spinach and crushed walnuts into steamed brown rice, or lightly wilt baby spinach leaves and toss with olive oil.

     TEA 

    The most frequently consumed beverage in the world may also be one of the best ways to prevent a number of degenerative diseases. Tea has been shown to significantly reduce the risk of cancer, heart disease, stroke and other diseases. It was originally thought that green tea had more antioxidants than black tea, but recent studies suggest that they are equally beneficial. The catechins in green tea are oxidized in the manufacturing process of black tea, forming free-radical fighting theaflavins.

    Quick Tips: Poach salmon in an infusion of green tea and ginger. Or boil soba noodles in green tea and toss with sesame seeds and a dash of toasted sesame oil.

     CARROTS 

    Carrots are loaded with a potent antioxidant called beta-carotene, a member of the healing family of carotenoids. Also found in beets, sweet potatoes and other yellow-orange vegetables, beta-carotene provides protection against: cancer, especially lung, bladder, breast, esophageal and stomach cancers; heart disease, and the progression of arthritis by as much as 70 percent. Note: Cooked carrots have considerably higher levels of antioxidants than uncooked, probably because heat breaks down the active compounds and makes them more available.

    Quick Tips: Puree cooked carrots with low-fat chicken broth, rosemary and a dash of cream, or steam whole baby carrots and toss with nutmeg, honey and a little butter.

     SOY 

    The enduring favorite of health-foods aficionados, soy can help prevent cancer, lower cholesterol, ward off osteoporosis and lessen the effects of menopause. Most of the health benefits of soy have been attributed to its content of Genistein and other isoflavones, which resemble natural estrogens in the body. Studies have shown that Genistein can help prevent breast, colon and prostate cancers. Additionally, soy can reduce both overall cholesterol levels and LDL (low-density lipoprotein or “bad”) cholesterol levels, without affecting the levels of beneficial HDL. Soy can also prevent osteoporosis and help alleviate the symptoms of menopause, such as hot flashes.

    Quick Tips: Add cubed tempeh to pasta sauce, spread soy butter on a whole-wheat pita instead of peanut butter or toss soy sprouts on a salad or in stir-fry dishes.

     WHOLE GRAINS 

    Your morning bowl of cereal may be a more potent source of phytochemicals than you think — as long as it’s whole-grain variety. Vitamin E in grains is a potent antioxidant that plays a role in preventing cancer, especially prostate cancer. Other studies have found that it can boost immunity, slow the progression of Alzheimer’s disease, treat and possibly prevent arthritis, prevent sunburn and treat male infertility. Grains are also rich in phytic acid, known as IP-6, a potent antioxidant that can help protect against breast, colon and liver cancers.

    Quick Tips: Combine cooked bulgur wheat with chopped parsley, scallions and olive oil, or add raisins, dried apricots and minced basil to brown rice.

    Posted in Health, Info | No Comments »