I had transferred units of Reliance Power Fund to the growth plan. Now, how will exit load be calculated? Will it be on the basis of the transfer date or will it be from the date when I had first bought into this fund?
If you have changed the plan from dividend to dividend reinvestment, then the load will be calculated from the date you first invested into this fund -- since it was a non-financial transaction.
However, if you had changed the plan from dividend to growth, then this will be considered as a transaction where the fund was redeemed and then invested in the growth plan. Therefore, it will be calculated based on when you had invested in the growth plan.
A report by CMIE says there will be an increase of nearly 46 per cent in government borrowing. However, it still says that liquidity conditions will remain normal. Why?
This would be about right because the trend can be noticed in bond yields. The type of borrowing program that the RBI has been executing since January can clearly be seen. There has not been much of a change in the yield of bonds.
Steps taken in the last quarter of last year made it seem like the situation will turn grim. But to improve the situation the government cut rates and now we can see the effect on the markets being reduced.