Quora

The technology components that make up Quora http://bit.ly/eTD3g8

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Why Startups fail

Why Startups Fail: An Analysis of Post-Mortems http://bit.ly/g1fTOH

R programming language

Great list of books for the R programming language (statistical correlation) http://www.r-bloggers.com/r-programming-books-updated/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+RBloggers+(R+bloggers)

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What is an Indexed Mutual Fund and when should you buy it?

Shubhojit Chatterjee asks “Can you please help us to know how to trade in Sensex as we are trading through ICICI Direct and they don’t have access to NSE”.

First lets review what an indexed mutual fund is. Indexed funds are an investment vehicle that aims to replicate movements of an index of a financial market such as NSE or BSE. For Indian investors that means a fund that will do as well or as poorly as the SENSEX or Nifty. These indexed funds will own all the securities of that index. So, for SENSEX index fund that means owning shares in all 30 companies that make up the index. Its usually a computer model that drives this fund not human stock picking. This also means lower management costs and fees because its mostly automated.

For the Indian market however the indices are fairly narrow so you dont actually get to capture the broad market, but a basket of stocks. (Editorial note: you would have done well though in the last 9 months!).

 Here is a list of (maybe not complete) of Index funds that track the SENSEX:

1. HDFC funds

2. Franklin India BSE Sensex Fund & Nifty fund

3. Tata SENSEX fund

4. LIC MF Index Fund SENSEX & Nifty

5. UTI Master Index plan

Over the past few years funds that tracked Nifty have had a better risk / reward return (beta) than those that tracked SENSEX, since the Sensex is more volatile, and most funds that track the Sensex dont do as good a job as those that do Nifty.

List of Mutual Fund Companies in India

1. Reliance Mutual Funds

2. HDFC

3. Fidelity

4. Franklin Templeton

5. ABN Amro

6. AIG

7. Bank of Baroda

8. Birla Sun Life

9. Canara Bank

10. DBS Chola Mandalam AMC

11. DSP Merrill Lynch

12. Deutsche Bank

13. Escorts Mutual

14. HSBC

15. ICICI Prudential

16. ING

17. JM Financial

18. JP Morgan

19. Kotak Mahindra

20. LIC

21. Lotus India

22. Morgan Stanley

23. Principal

24. Quantum

25. State Bank of India (SBI)

26. Sahara Mutual Funds

27. Standard Chartered

28. Sundaram BNP Paribas

29. Tata

30. Taurus Mutual Funds

31. UTI

32. Benchmark Funds

# Company URL
1 AIG Investments http://www.aiggig.co.in
2 Association of MF in India http://www.amfiindia.com
3 ABN Amro http://www.abnamro.co.in/investmentservices/investment_products/mutual_funds.html
4 Benchmark Funds http://www.benchmarkfunds.com
5 Birla Sunlife http://www.birlasunlife.com
6 Bank of Baroda http://www.bobmf.com
7 Computer Age Mgmt Services http://www.camsonline.com
8 Canara Robeco http://www.canbankmutual.com
9 DBS Cholamandalam http://www.dbscholamutual.com
10 Deutsche Bank http://www.deutschemutual.com
11 DSP Merrill Lynch http://www.dspmlmutualfund.com
12 Escots http://www.escotsmutual.com
13 Fidelity http://www.fidelity.co.in
14 Franklin Templeton http://www.franktempletonindia.com
15 HDFC http://www.hdfcfund.com
16 HSBC http://www.hsbcinvestments.co.in
17 ING Vysa http://www.ingvysamf.com
18 J M Mutual http://www.jmmutual.com
19 JPMorgan http://www.jpmorganmf.com
20 Kotak http://www.kotakmutual.com
21 LIC Mutual Funds http://www.licmutual.com
22 Religare Mutual Funds http://www.religaremf.com
23 Morgan Stanley http://indiamf.morganstanley.com/
24 Principal http://www.principalindia.com
25 Prudential ICI http://www.icicipruamc.com/
26 Quantum http://www.quantumc.com
27 Reliance http://www.reliancemutual.com
28 Sahara http://www.saharamutual.com
29 State Bank of India http://www.sbimf.com
30 SEBI http://www.sebi.gov.in
31 Standard Chartered http://www.standardcharterdmf.com
32 Sundaram BNP Paribas http://www.sundarambnpparibas.in
33 TATA http://www.tatamutualfund.com
34 Taurus http://www.taurusmutualfund.com
35 UTI http://www.utimf.com
36 ICI http://www.ici.org
37 PIMCO http://www.pimco.com
38 Vanguard http://www.vanguard.com

Relevant stock investor statistics for investing in India

1. Trading Volume:

1984: US $3M / daily,

1994: US$100 Million,

2007: 8 Billion / daily ($6B in derivatives)

2. Assset Management Companies:

1994: 10, Total Funds ~ 100

2007: 32, Total Funds ~1000

3. Best Mutual fund companies in India

DSP Merrill Lynch

Fidelity Mutual Funds

Frankling Templeton Funds

HDFC Mutual Funds

Sundaram BNP Paribas Mutual Funds

Source: Personalfn.com