What lies in store in 2008

What lies in store in 2008

1) Guidelines on real estate funds
We expect the launch of real estate funds to be among the high points of 2008. A draft of the guidelines has already been released by SEBI (Securities and Exchange Board of India). Once the guidelines are finalised, you can expect fund houses to go all out with their real estate offerings. The launch of REITs (real estate investments trusts) will be the logical conclusion to the launch of real estate funds.

2) Entry load waiver
Despite the steps taken by SEBI to empower investors, it can be safely stated that fund houses and distributors continue to call the shots in the mutual fund industry. To further the cause of investor empowerment, SEBI has waived entry loads on open-ended funds. Investors can now invest directly with the fund house without the intervention of a mutual fund distributor. The advantage of this move is that a) there will not be an entry load and investors can have their entire investment corpus invested in the markets and b) they will no longer be at the mercy of unethical mutual fund distributors for their mutual fund investments. Finally, distributors will be forced to truly 'earn' their income and this bodes well for investors.

What should investors do in 2008?
For starters, investors would do well to appreciate the importance of sticking to the basics of investing. This is probably their best defense in light of the complex investment environment that they will have to contend with. Investors must have predetermined investment objectives and plans before they start investing; also, they must invest in line with the same at all times. Finally, not losing sight of their risk profile is pertinent as well. 'Block all the noise and stick to the basics' - that could well be the mantra for a rewarding 2008.