Tata Tax Saving Fund declare dividend

Tata Mutual Fund has announced dividend under Tata Tax Saving Fund, an open ended equity linked saving scheme. The quantum of dividend will be Rs. 1.50 per unit. The record date for dividend distribution has been fixed as 8th February 2012. The NAV of the fund is Rs 42.23

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Orient Abrasives – Worth investing than Fixed Deposit

Every one of us knows better the volatility of stock market, its gain & loss are abnormal and most of us preferred to stay away from stock market and invest in fixed deposit as safe option. While analyzing stocks which gave the best return to the investor like bank deposits, I find Orient Abrasives Ltd- A “B Group” company list in BSE.

From the past 3-5 year records the company is paying 100% dividend against its face value of Rs 1/- and company is strong fundamentally. With 100% dividend in recent year, current share price of the company and its fundamental shows a better option in buying the share. I have calculated the below table for easy understanding.

Investing in Orient Abrasives		Invest in Banks ( Fixed Deposit )
Initial Investment ( Rs )	10,000	Initial Investment	10,000
Current price of share	9.75	Interest Rate	9.25%
Total Purchase Shares	1,026	Duration	3
Dividend -100 %(Face Value Rs 1)	1.00	Total interest for 3 year	3039
Dividend for 3 year	3,077	Total Amt in 3 years	13039
	13,077

With this table it clearly shows that investing in Orient Abrasives have more return than investing in banks fixed deposit.
Now a question arises? What is the use in investing Orient share than fixed deposit, where returns are slightly higher or almost equal?

Key factor is purchasing the share at its current price ie Rs 9.75 with One Rupee variation. Since the stock are trading at its 52 week low and more possibility of moving upwards. The High and low of Orient Abrasive share in 52 weeks are Rs 40.5 – Rs 8.90 respectively. Assume if share move at least 50% from its current price in 3 years it will reach at Rs 15/-. The return will be around Rs 18500. (Investment 10,000+Dividend 3000+Capital Gain 5,000)

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Indiabulls Blue Chip Fund

Objective :The primary investment objective of the Scheme is to seek to provide long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities of blue-chip large-cap companies. However there can be no assurance that the investment objective of the scheme will be achieved.

Fund Features
Types of Scheme	Open Ended
Nature	Equity
Option	Growth / Dividend
Bench Mark	S&P CNX Nifty
Minimum Investment	Rs 5000
SIP	Not Allowed
Fund Open	20-Jan-2011
Fund Close	03-Feb-2011
Fund Manager	Aviral Gupta & Amarjeet Singh
Web Site	http://www.indiabullsmf.com

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