this is an excellent opportunity for small investors who cant afford to put huge money into MUF. May be these exit and entry loads are little tricky and not one can easily understand..on the whole, putting 50/- into SIP maynot be a huge burden for medille class people... that's my personal opinion
RE:hi
by Vikas Vadgama on May 03, 2007 03:13 PM Permalink
How can small investors pur huge money? Small investors are better advised to put their money. If Rs.100 or Rs.50 Recurring Deposit is available with banks where returns are secured, why put the money in MF which are risky? What if at the end of 3 or 5 years when SIP ends, the markets are down? Will small investors be able to bear loss?
ICICI must take care of things that small investors are more emotionally attached towards funds they have invested. Keeping them happy would be a challenge.
RE:Please explain !!!!!!!!!!
by MANISH GOEL on Apr 28, 2007 07:13 PM Permalink
2.25% is entry load and not interest. Entry load is an amount which is deducted towards admin cost etc.
RE:Please explain !!!!!!!!!!
by Sandeep Singh on Apr 28, 2007 07:27 PM Permalink
no, your 1st 50 Rs gets interest for 11 months compounded; ur 2nd 50 Rs get interest for 10 months compounded and so on... also of ur 50 Rs, 2.25%, i.e. 1.25 Rs is deducted as adminstrative charges. so ur investment is taken as Rs 48.75, not 50. the interest rate has not been stated in this decription. SIP ensures a saving discipline, also it fetches an even-out interest gain if put in equity. - sandeep, aaseha@yahoo.com
RE:Please explain !!!!!!!!!!
by Sanjay Bhattacharya on Apr 28, 2007 08:10 PM Permalink
how old r yu ? sunny boy or bright girl !! then i'll explain !!! if yu r below 18 yu r excusable for not knowing what amount yu may earn on yu'r investment - entry load means they will take away 2.25% of your 600 Rs !!!
RE:Please explain !!!!!!!!!!
by Prakash Desai on Apr 29, 2007 07:05 PM Permalink
I agree with all of you. Entry load is a big nuisance in name of administrative cost. Atleast the company has well defined it at 2.25% and you KNOW what will be deducted. But more important is UNDEFINED EXIT LOAD. If it also takes away few percentage from your savings and expected earnings, then, it is likely that you will end up somewhere around return similar to a recurring deposit amount. Then, it is of no use. I will enter the scheme ONLY IF EXIT LOAD IS PREDEFINED and ONLY IF I AM ABLE TO CALCULATE, atleast, approximate in near future, say three to five years of savings. Otherwise, recurring monthly deposit MAY BE SIMILAR OPTION. And in that case, there is nothing new in the scheme.
RE:Please explain !!!!!!!!!!
by Pharma Expert on Apr 28, 2007 07:19 PM Permalink
2.25% is entry load you fool, not interest rate. Why do you not understand such fundamentals. Incidentally, 2.25% interest rate also would not result incapital amount of 672.You have got it all wrong man, quit.
RE:Please explain !!!!!!!!!!
by Satyan Kamath on Apr 28, 2007 07:49 PM Permalink
Hey beggar, get lost, if you dont have the decency to explain then you get lost, uncivilised barbarian
RE:Welcome Step !
by Vikas Vadgama on May 03, 2007 03:15 PM Permalink
First of all there should be some profit at end of SIP. Markets have already peaked. These SIPs are for 5 years. And we do not know what the markets will be 5 years hence.
ICICI has released this time of finance scheme long back with Basix (A Micro Finance Institution)& it is running good...Now they want to capture all india..thats why they came little forward in these type of schemes..
RE:Another first in ICICI cap!!
by Vikas Vadgama on May 03, 2007 03:17 PM Permalink
Just giving a facility to invest Rs.50 a month does not make ICICI the right platform to start with. HDFC, Tata and Reliance have been better performers than ICICI returnswise.
