[Investors Please Listen] RBI slashes key rates - Your opportunity to borrow cheap

RBI slashes key rates - Your opportunity to borrow cheap RBI slashed its lending and borrowing rates by 25 bps to 4.75% and 3.25% respectively. Banks have been parking their surplus money with RBI to earn interest of 3.50%, instead of lending it. Now with the borrowing rate of RBI slashed, banks will be forced to lend money rather than keeping it with RBI. While ICICI and HDFC bank have already responded by lowering their interest rates, other banks may soon follow suit. This comes as an opportunity if you are considering taking a home loan or an auto loan, since the rates on these loans is likely to come down. No more free lunch for banks - Earn more from your savings account Savings bank account customers have a reason to cheer. As per the Monetary Policy 2009-10, the payment of interest on savings bank accounts by scheduled commercial banks (SCBs) would be calculated on a daily product basis with effect from April 1, 2010. At present, interest on savings bank accounts is calculated on the minimum balances held in the accounts from the 10th day to the last day of each calendar month. As a result, the interest earned by depositor on his savings account turned out to be much lower than the prescribed 3.50% per annum. With the change in the calculation of interest, depositors will benefit, as they will earn higher interest from their savings account. Yet another good monsoon predicted - Good times ahead Meteorological Department has predicted normal monsoon this year. This will boost the agricultural sector largely, which in turn contributes about 17% of India's GDP. This will lead to increase in agricultural productivity which in turn would result in increase in demand from the rural areas and decline in food prices, which continue to be high. Retail investor to PE investor in just Rs 5 lakhs Newspaper reports suggest that the ticket size has been reduced for investments in a PE (Private Equity) fund from Rs 10 crore to Rs 5 lakhs. PE funds mainly invest in start-ups, which require early stage funding. The gestation period for these investments is also longer. However, if the invested companies do well then the returns could be high. This characteristic makes the investment into a high risk, high return kind of investment. While the low-ticket size will allow many retail investors to participate in PE funds, investors must bear in mind that PE funds are a very high risk-high return product. UTI merges its two equity schemes - Should you hold or redeem? UTI Mutual Fund has announced a merger of its two schemes - UTI Mastergrowth Unit scheme and UTI Index Select Fund will be merged and renamed as UTI Top 100 Fund. The new scheme will invest at least 65% of its corpus in top 100 stocks by market capitalization and remaining in debt instruments. UTI Mastergrowth is mandated to invest up to half of its assets in stocks of public sector units (PSUs), whereas UTI Index Select invests in select stocks of BSE Sensex and S&P CNX Nifty. Investors, who are not comfortable with the proposed merger, can redeem their investments in these two schemes from April 21, 2009 to May 20, 2009 without paying exit load. Those investors who are comfortable with the proposed investment proposition can continue their investments, while others would do well to redeem. (Click here to read our research recommendation on UTI)

---

From Chandigarh to Chennai - find friends all over India. Click here.. --~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---