Bharat Heavy Electricals (BHEL), a major power equipment supplier is eyeing big to increase earnings from exports six-fold to Rs 80 billion in the next four years


HEG board approves buy-back of equity shares .buyback at a price not exceeding Rs 350 a share for an aggregate amount of Rs 485 million being 10% of the total paid up share capital and free reserves of the company.


Reliance Communications (RCom), announced on Tuesday, August 19 the launch of India`s first fully digital home entertainment service on world`s most advanced MPEG4 Direct-To-Home (DTH) platform.

USA economic data

U.S. July energy PPI up 3.1%

U.S. July food PPI up 0.3%

U.S. PPI up 9.8% in past year

U.S. July core PPI up 0.7% vs. 0.2% expected

U.S. July PPI rises 1.2% vs. 0.3% expected

U.S. July housing completions fall to 25-year low

U.S. July housing starts fall to 17-year low

U.S. July building permits sink 17.7% to 937,000 pace

U.S. housing starts down 29.6% in past year

U.S. July single-family building permits off 5.2% to 584,000

U.S. July housing starts fall 11% to 965,000 annual pace

U.S. July single-family permits fall to 26-year low

Ex-IMF economist sees large U.S. bank collapsing

Kenneth Rogoff, the former chief economist of the International Monetary Fund, reportedly said Tuesday that a large U.S. bank will collapse in the next few months. "We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks," Rogoff told a conference in Singapore,

Future Group, one of India`s leading retail chains, registered total sales of around Rs 1.05 billion across its outlets on a single day, i.e. Sunday, August 17. The unprecedented number of footfalls can be attributed to the ongoing promotions and special offers at Future Group`s retail chains, Big Bazaar, Pantaloons, Food Bazaar, Central, EZone, Home Town, Brand Factory, Furniture Bazaar, KB`s Fairprice, Mobile Bazaar and Aadhar,


Berger Paints India, the second largest paint producer of India, on Aug. 18, 2008 acquired Bolix S.A, of Poland, a leading provider of External Insulation Finishing Systems (EIFS), from Advent International, a global private equity group.


Spanco Telesystems & Solutions bagged Rs 700 milllion contract from Orissa government to roll out of a state wide area network (SWAN) across the state of Orissa.


Kaashyap Technologies announced that the board of directors of the company at its meeting held on Aug. 18, 2008, have allotted bonus shares. The board has allotted 63,599,273 equity shares of Re 1 each aggregating to Rs 63,599,273 as fully paid-up bonus shares to members/beneficial owners holding shares as on the record date i.e. Aug. 14, 2008.


UTV Software Communications said that IG Interactive Entertainment (`IGI`), a UK based 100% subsidiary of the company has entered into definitive agreements with True Games Interactive (`True Games`), a California based corporation for acquisition of 80% stake in True Games.


M&M inks JV pact with Yancheng Tractor, China

Introduction to Mutual Funds

People have been investing since times immemorial. You could invest money as an owner (equity), as a lender (debt), as a landlord (rent), as a banker (gold). However, as the market got more and more sophisticated direct investing became difficult, if not impossible. So, the common investor needed a manager who would help him/her in this effort. This led to the emergence of mutual funds.
Thus clearly mutual funds were born because the financial markets became sophisticated and complex.

In the USA Mutual fund industry was created more than a Century ago. In India the Mutual fund industry was born in 1963 with the creation of UTI. It is to the vision of G S Patel that he created it as a trust and the form is still in use.

Concept of a Mutual Fund

- Common pool of money - only those who have the same needs should come together under one umbrella. That is to say if you want debt investments and your brother wants equity, you have options to choose from.

- Investments- the investor will invest through different schemes.

- Joint or ``mutual`` ownership - the person who invests get the benefits.

- Units are the representation of ownership - the unit holder of a mutual fund is neither a lender nor the ``owner`` of the fund house. He is giving his money for being managed by the fund house.

Constitution

- In US Mutual Funds are constituted as an investment company.

- In India Mutual Funds are constituted as a trust.

pv.subramanyam@irisindia.net

Ambuja Cements has decided to raise the cement prices by Rs 20 per 50 kg bag in two tranches,

Punjab Chemicals plans Rs 2.50 bn GDR issue

Punjab Chemicals and Crop Protection (PCCPL), an agro-chemicals major player is planning to raise around Rs 2.50 billion through global depository receipts (GDRs) in the next 6 months to fund its global acquisition plans and capital expenditure

India has banned import of rough diamonds from Venezuela after it pulled out of a UN approved system that ensures that `blood diamonds` extracted by human rights violations are not traded and used for financing the rebels` wars across the world.


Crazy Infotech board to consider acquisition in IT services


Rio Tinto and state-run NMDC signed an agreement to form an equal joint venture to explore minerals in India and abroad. However primarily target will be exploitation of iron ore reserves


Volkswagen to launch Beetle by 2010

BSNL to launch 3G operations by Dec`08

Unichem Laboratories received the approval from US Food & Drug Administration (USFDA) for Hydrochlorothiazide tablets in the strengths of 25 mg and 50 mg.


McNally Bharat Engineering Company bagged orders worth Rs 532.5 million from Siemens VAI and Brahmani River Pallets.


International Finance Corporation (IFC) has sold its 7.75% stake in Dabur Pharma


Lupin has entered into a multi–year promotion and marketing agreement with Forest Laboratories for the Aero Chamber Plus line of products.


IVRCL Infrastructures & Projects secured an irrigation order of Rs 7,149.6 million (approx Rs 7.15 billion) from the Andhra Pradesh government. the company had bagged five orders worth over Rs 3.51 billion for construction related works.

Promoters of Balaji Telefilms have decided to terminate the various agreements with the Star group and Asian Broadcasting FZ-LLC. (ABF). In August 2004, ABF had acquired a 25.99% stake in Balaji Telefilms.


The Civil Aviation Ministry released the draft guidelines that would allow other operators to collect airport fees from passengers. Domestic travellers will now pay Rs 375 as a user development fee (UDF) when flying out of Hyderabad and international travellers will pay Rs 1,000.


ITC, the market leader in its businesses of cigarettes, hotels, paperboards, packaging and agri-exports announced on Tuesday, August 19 that its wholly owned subsidiary ITC Infotech (USA) has acquired the entire membership interest of Pyxis Solutions, a New York limited liability company, on Aug. 11, 2008.

Venezuela seizes control of cement companies

Chavez earlier called the nationalization of cement companies one of many "steps toward socialism," following the nationalization of telecommunications and electricity companies, the country's largest steel maker and major oil projects.


Lafarge SA of France and Switzerland's Holcim Ltd., agreed to nationalization terms for their companies in Venezuela earlier Monday. Those two companies also agreed to stay on as minority partners.