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stockaddict
Senior Member
Joined: 18/Jul/2007
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Posts: 263
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   Posted: 19/Oct/2007 at 3:52pm |
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Converting MSGF to open ended fund after Feb 2009 seems logical move; even otherwise they only got one fund if I am right. That will provide the exit route at NAV rates unlike now where it is at a discount to NAV. I was wondering in my previous post that it makes sense to buy it if the market falls and it has indeed fallen by about 10%. Let us hope some clarity emerges on P Notes issue though there is too much uncertainity right now. I am tracking it (currently trading @ 55.5 vs 63.61 Nav on Oct 18). Personally in the even of market falling further 10% and a price around 50-52 I would be comfortable in picking it up and holding till Feb 09.
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stockaddict
Senior Member
Joined: 18/Jul/2007
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Posts: 263
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Posted: 19/Oct/2007 at 4:05pm |
Prashant,
we should have seen the correction coming, only moot point was when(will it) and what(will cause it) after going to as low as 13700 intra day in Aug BSE rushed to 19000 in 45 days!! In any case the rise was to fast and too quick to make people uncomfortable. It could have been the world markets, some scam , slowdown in earnings or regulatory action that would end the party.I was reminded of Wipro in tech boom ; once i remember it was on circuit everyday for 9-10 days at a strech that too in the last leg of that IT boom evn at 100+PE. That was the way REL, Relinfra, RPL, RNRL etc were moving. I was 200 short on nifty on 16th Oct @5668 and squared off next morning around 5275 but not even in my wildest dreams I had hoped for such a nasty correction! It's all a matter of risk reward ratio if you chase momentum too long you are going to be caught on the wrong foot at some point. Buy low sell high and wait for the opportunity still works I guess and that is my takeaway.The challenge is to live up to that and hope we can implement it religiously.
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agrawalr
Groupie
Joined: 16/Jan/2007
Location: United Kingdom
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Posts: 20
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Posted: 10/Dec/2007 at 3:56am |
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Dear Investors
You must be knowing that Morgan S Growth Fund is a close ended fund will be closing on Feb 2009. As with any close ended fund the discount reduces as the redemption date comes closer.
Till last year we were getting 30% discount to NAV, till last few months 15% and today around 12%.
If we see event at current price 12% discount is 13% return over a period of 14 months. Which is around 11-12% CAGR.
Now if NAV doesn't go up one can get 11%, if the stocks in portfolio do bad - then one can loose upto 10% and if the stocks put average performance then we can expect 20-25% return in a year. This fund is very conservative and close ended fund becomes extra conservative towards the end. This should be more or less in-line with the sensex.
Those who are happy with 20-25 upside and 10% downside can go for this even at today's rate.
Somehow I don't believe much on entering on correction as the NAV will also correct but discount would remain same. Except it would reduce the downside risk as true for any other stock investment. But timing the market has never been easy.
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basant
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Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 10/Dec/2007 at 7:07am |
Absolutely agree on that. This is a must buy for people interested in large caps.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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np50
Newbie
Joined: 05/Dec/2007
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Posts: 6
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Posted: 17/Dec/2007 at 5:57pm |
basant sir.
Any suggestions on the recents NFO's icici rela estate, DBS Chola small cap equity and kotak indo world infra. they are are closed ended.
Are they worth buying or should i go for some other MF's.
regards
Nitesh
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 17/Dec/2007 at 6:46pm |
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Old wine in new bottle avoid packaged food and buy the unpacked Rel growth, vision, stan chart premier, pru icici emerging star.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 06/Feb/2008 at 11:54am |
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Here is a hot investment tip that could help you earn a 10% return or more in a few months, if the stock market does not fall from its current levels, that is.
Morgan Stanley Mutual Fund, the first foreign fund house in the country, has decided to make its 13-year-old Morgan Stanley Growth Fund an open-ended scheme.
When launched in 1994, the scheme was supposed to be closed-ended for 15 years till January 2009.
However, units of the scheme are currently trading at a discount on the exchanges vis-ŕ-is its net asset value (NAV). And this is where the opportunity is.
Though the discount margin has reduced considerably over the years, there still exists a difference of 10% between the last reported NAV of Morgan Stanley Growth Fund of Rs 63.37 and its closing price of Rs 57.59 at the BSE, as on February 5, 2007.
To make use of this opportunity, a simple arbitrage strategy needs to be followed.
Buy the cheaper units from either of the stock exchanges and sell these units back to the fund house when the scheme becomes open-ended.
There is also the risk of the stock markets falling and investors making less money or facing losses.
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Edited by kulman - 01/Dec/2008 at 10:40pm
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Life can only be understood backwards—but it must be lived forwards
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akshayapandey
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Joined: 05/Apr/2008
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Posts: 15
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Posted: 05/Apr/2008 at 12:15pm |
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In the current market scenario, when one is more concerned abput downside reather than uypside..this fund is a good investment..still available at a discount of about 8% to its nav.so in effect you are buying into market at 8% lower rate..So it is a good buy at current levels for anyone willing to invest with a perspective of about one year..
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