Sensex 12000 - investing now

It was another positive week for investors as markets closed in positive terrain (for the eighth successive week) to breach the 12,000-point barrier. The BSE Sensex appreciated by 0.76% and closed the week at 12,010, while the S&P CNX Nifty ended at 3,479 points (up by 0.23%). The CNX Midcap posted a gain of 0.38% and closed at 4,522 points. Chola Growth (2.03%) emerged as the top performer in diversified equity funds segment. Fidelity Equity (1.73%) took the second position, closely followed by Birla India GenNext (1.72%).

The 10-year 7.59% GOI yield closed at 7.83% (September 15, 2006), 13 basis points above the previous weekly close. Bond yields and prices are inversely related with rising yields translating into lower bond prices and net asset values (NAVs) for debt fund investors.

Funds from Birla Sun Life Mutual Fund dominated proceedings in the debt funds segment. Birla Income Plus (0.15%) and Birla Sun Life Income (0.15%) shared the top position followed by Birla Dynamic Bond (0.14%). Tata Income (0.14%) and PruICICI Flexible Income (0.13%) also featured in the list.

UTI Balanced (1.23%) surfaced as the best performer in the balanced funds segment. Birla Sun Life 95 (1.00%) and Birla Balance (0.95%) came in at second and third positions respectively.

Investment opportunities continue to compete for a share of the investor's wallet. You have a leading private sector AMC (Asset Management Company) filing for the much-touted Gold ETF (Exchange-Traded Fund), a new AMC planning to launch its very first NFO in the market, some new funds (NFOs) that are still on offer and in the midst of all this, investors have to contend with looming tax-planning commitments.

In terms of priority, our vote goes for tax-planning. Often investors are so 'enamoured' by the steady supply of investment opportunities, that critical investments related to tax-planning get sidelined until it's too late. Our advice � with a little over 6 months left for March 2007, first tie up your tax planning investments and then focus on other investment opportunities. Get more information from this article.