DABUR INDIA Great Buying opportunity

A truly Indian born and bred FMCG, Dabur India has done well for itself for the second quarter ended 30th September 2008. Irrespective of the overall slowdown, there are some producst like oil, shampoo, soaps which people simply do not stop using. On a consolidated basis, Dabur’s consolidated revenue for Q2FY09 rose 18.4% on a YoY at Rs.699.30 crores. Its international business showed a robust performance, growing by 40.5%, led by growth in GCC, Egypt, Nigeria, Yemen and North African markets. Sales in African markets surged 65%. Dabur Egypt grew by a robust 88% and Bangladesh sales surged by 85%. Net Profit for the quarter rose 12.2% at Rs.107.41 crore.

Dabur India's FMCG portfolio includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based beverages and Anmol for affordable personal care business.

During the quarter, hair oil reported a 20% growth in the quarter led by Anmol Coconut Oil and Dabur Amla Hair Oil. Shampoos grew by 36%, while Baby & Skin Care business reported 18% growth following the expansion of Dabur Gulabari skin care range with the introduction of Dabur Gulabari Moisturising Cream and Lotion. It launched a new product in the Q1 - hard surface cleaner brand ‘Dazzl’, and this has garnered a market share of 6.1% (July-September 08) in the floor and kitchen cleaner category.

Dabur also reconstituted its Board of Directors with the induction of two new independent directors - Aviva India’s former MD, Bert Paterson and Mr. Analjit Singh, Co-Founder and Chairman of Max India. It has also signed in Dhoni as its new brand ambassador, replacing Amitabh Bachchan.

Currently quoted at around levels of Rs.80, it has recovered from the low of Rs.60, which was a great buying opportunity.
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Mutual Funds

Equity Funds

Reliance Regular Savings Fund – Equity plan

SBI Magnum COMMA Fund

Kotak Opportunities Fund

Sundaram BNP Paribas Select Focus

Kotak 30

Reliance Growth Fund

HDFC Top 200

Reliance Vision Fund

Birla Sunlife Frontline Equity Fund

Birla Sunlife Equity Fund

Balanced Funds

Kotak Balance

Birla Sunlife 95 Fund

HDFC Prudence

ELSS

Principal Personal Tax Saver

Principal Tax Savings Fund

Birla Sunlife Capital Tax Relief – 96 Fund

SBI Magnum Tax Gain Fund

Mutual Fund investments are subject to market risks. Please read the offer document carefully before investing.

Do I really Know about Mutual funds -MF

Recently I came across one good blog on aspects of investments and risks. After reading his posts about MF, MF charges and the returns they offer, I was quite surprise.

This blog have presented quite good explanation, with example like,
when a fund comes into the market, it comes through NFO or New Fund Offer (equivalent to IPO for stocks). People subscribe to it by investing their money. For any mediocre fund, it is not difficult to collect around 800 crore rupees from the market. Established fund house like HSBC managed to gather as high as 1700 Crore Rs. for their single fund in 2003. The mutual fund manager takes a percentage of this collected money as his commission to manage the fund. It usually lies in the range of 1.5% to 3%. Now, for a very mediocre fund that collects 800 Crores from the market, the fund manager at a rate of 2% takes home a whooping 800 *2% = 16 Crore Rs every year! The remaining amount of commission collected in the form of “Entry/Exit Loads” is used to pay to the agents and for advertisement and promotion of the fund. In essence, everything comes from your pocket. If you see a full page ad in newspaper for a Mutual fund you’ve invested in, it is you who has paid for it.

One of the major benefits of mutual funds is diversification which eliminates the risk of putting all the eggs in one basket. Asset Allocation is also linked to the same concept of diversification, additionally it takes into consideration the percentage money allocated to different stocks in the portfolio. Even a small size mutual fund will have a MINIMUM of 60 stocks in its portfolio at any given point of time.

absolutely no one can guarantee anything in the markets. Hundreds of factors play role in the valuation of the stocks. Predicting them is a dangerous and highly inaccurate error-prone task. If you believe that you are doing the right selection of stocks at your level, the fund managers at least have some advantage over your inexperience and ignorance. They have much more money than you to play around with. If you “Invest for LONG TERM”, then every single fund also advises individuals to invest for long term, & the mutual funds carry on for long term. And still the fund managers fail, without guaranteeing anything. How can we, INDIVIDUALS, be so sure of making sure shot profits?

Investing in Mutual Funds

I am giving a list of some good MFs.

Equity Funds
Reliance Regular Savings Fund – Equity plan
SBI Magnum COMMA Fund
Kotak Opportunities Fund
Sundaram BNP Paribas Select Focus
Kotak 30
Reliance Growth Fund
HDFC Top 200
Reliance Vision Fund
Birla Sunlife Frontline Equity Fund
Birla Sunlife Equity Fund

Balanced Funds
Kotak Balance
Birla Sunlife 95 Fund
HDFC Prudence

ELSS
Principal Personal Tax Saver
Principal Tax Savings Fund
Birla Sunlife Capital Tax Relief – 96 Fund
SBI Magnum Tax Gain Fund