See Sensex touching 11K in current rally: Nilesh Shah

Nilesh Shah, MD and CEO, Envision Capital, said there are good chances of the markets going above 10,200 and touching the 11,000 mark, given the current rally. “So 2009 is likely to be significantly better than 2008. We see 7,000-12,500 as the likely trading range for the Sensex in 2009. However, a retest of 2008 lows is not to be ruled out.”

According to Shah, a combination of rate sensitives and infrastructure stocks would be right way to play this market. “I am positive on infrastructure, public sector banks, realty, cement, and auto stocks.”

Indian markets, he feels, are significantly linked to global cues. “In the short-term, the upside in markets will be directed by global sentiments. However, Q3 corporate earnings will be weak. The advance tax numbers and drop in volumes of auto and cement industry indicate the likely sluggishness in toplines.” Continue

Fidelity increases Entry Load on Equity Funds from 2.25% to 3.00%

Fidelity Fund Management increased the entry load for all its equity funds effective January 1, 2009. The entry load has been hiked to 3% from 2.25%. The load will be applicable only to investment below Rs 5 crore for its five equity funds -- Fidelity Equity, Fidelity India Growth, Fidelity India Special Situations, Fidelity International Opportunities and Fidelity Tax Advantage. This will come into effect from January 01, 2009.

The entry-load charged to investors primarily goes towards cost of selling the fund i.e. paid as commission to the agents. This load increases your purchase price of a unit. For example, if the entry load is 3%, and the current NAV is Rs 100, then the purchase price will be Rs 103. An increase in the entry load (or any other charge) means that your fund manager needs to work harder in order to provide you with the same return on your investment.

In January 2008, SEBI mandated change that investors who invest directly with a fund will be exempt from load.