Realty sector which has been grappling with fund scarcity since last some time, is likely to get fresh lease of life with government relaxing FDI policy for the sector by easing exit norms and reducing built-up area and capital needs.
The revised norms relating to Construction Development Sector notified by the Department of Industrial Policy and Promotion (DIPP), states that investor will be permitted to exit on completion of the project or after development of trunk infrastructure i.e. roads, water supply, street lighting, drainage and sewerage.
The new policy, which has done away with the 3-year lock-in period for repatriation of investment has also reduced the minimum floor area requirement to 20,000 sq mt from 50,000 sq mt earlier. It also brought down the minimum capital requirement to $5 million from $10 million. While in case of development of serviced plots, the condition of minimum land of 10 hectares has been completely removed.
For affordable homes, the government has exempted the conditions of minimum floor area and capital requirement if an investee/joint venture companies commit at least 30 per cent of the total project cost for low-cost housing. The government is expecting the new measures to result in enhanced inflows into the construction development sector and result in creation of much needed low cost affordable housing in the country and development of smart cities.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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