Wednesday, February 27, 2008

About Moolyankan Diversified Fund

The Indian stock markets are in the midst of a secular bull run. The Sensex has gone up from 4000 levels in 2004 and touched 21000 levels in just a span of 4 years. Over 100 Indian companies now command a M-cap of over $1 billion. There has been a huge spurt in M&A activity and Indian companies are on a global acquisition spree be it Tata Steel or Hindalco or Suzlon energy. The booming stock markets have put KP Singh of DLF and the Ambani brothers on the Forbes - World Richest People list.

Hence as MBA students and future investors we felt the need to have a platform to apply our theoretical learning into practice. With this idea we created “Moolyankan” which is a student driven mutual fund at DOMS - IIT Madras. The whole spirit of Moolyankan is to learn about the Stock markets and evaluate companies based on the knowledge gained in the classroom. This way we can stay abreast of the business happenings across the globe and also get a chance to invest in the India growth story.

Once the idea was conceptualized we started working on the structure of the fund. Since we believe in the India growth story we decided to invest in growing sectors like Telecom, Realty, Power, Media etc. We decided to stay away from sectors where there is Government policy intervention like Sugar, Cement and Oil Marketing companies.

v Moolyankan started with a corpus of Rs 135,000 on 10th Sept 2007.

v The initial unit value was Rs 100 (Total units - 1350). Present Units - 1756

v As of 27th Feb 2008 the corpus stands at Rs 244,127 (Present Unit Value - Rs 139.02)

v There is an investment team to decide allocation to various sectors on the basis of inputs provided by the sectoral analysis team.

v The task of the sectoral analysis team is to keep a track of the happenings of the particular sector and the companies in it.

v At present the investments are based on fundamental analysis of companies but going forward we also plan to use technical analysis for investment decisions.

v Going forward we would also like to learn various hedging strategies using F&O to hedge our holdings against market fluctuations.

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2 comments:

saroj said...

I am very glad to know this.But I want to know about the fund distribution over sectors/shares,do you have invested in BOND also or only in stock.What is the entry load and exit load??what is the maturity period??Who is the fund manager???IS he from second yr or first yr if from second yr then after passout of that guy who will manage????

March 11, 2008 at 4:55 AM
moolyankan said...

@saroj

we are pleased to know that you are interested in Moolyankan Diversified Fund.
There is no entry load. But there is exit load of 3 %.
No, we don't invest in bonds, 100% equity.
Moolyankan is completely student driven and there is no individual who is fund manager, but we have investment team who takes investment decision.
We are 1st year students and we developed our processes such that when we paas out, our juniors take over and so on.
Just drop us a mail at moolyankan@gmail.com and we would forward you the sectoral distribution details.

March 25, 2008 at 11:51 AM

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