Will the entry loads on SIPs too be removed from August 1, 2009? Also, how good is Reliance Regular Savings Fund? Should I switch to Sundaram BNP Paribas Select Midcap?
There is a chance that some asset management companies (AMCs) may exempt entry load on SIPs too from August 1, 2009. There is no consensus as such on this issue. One thing that can be done in this respect is to discontinue your SIP and restart in the same fund for the same amount, on or after August 1, 2009. That should ensure that you are not changed any entry load.
Both the Reliance Regular Savings and Sundaram BNP Paribas Select Focus are good funds.
Should RBI increase the rate?
The necessity to increase the rate is not there. The situation right now is that the government wants the banks to reduce the rate. The liquidity in the market is high but there is no credit off take. So if the rate increases then those who may be planning to borrow will not do so. And in this case the credit will fall down all the more. But it is premature to say that despite such a big borrowing program interest rate will not go up.