HDFC Top 200 Fund

HDFC Top 200 Fund is now HDFC Top 100 Fund

If you are investing for many years, you would have seen that this fund does well over the long term. Sometimes there are periods during which the fund struggles compared to its peers. However I think that there has been a great improvement in this fund. You can continue your SIP in this fund.

Don’t let your SIP stop. The effect of compounding is more important than the short-term fluctuations in fund performance.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

SBI Magnum Multicap scheme

SBI Magnum Multicap Fund

Going by the financial performance of companies in the March 2017 quarter, it is fairly evident that earnings growth is happening in patches. Barring a select few mid-sized companies, a large number of big companies are performing better than mid-sized ones. Given this situation, it makes sense to be with multi-cap schemes which not only capture the growth of large-sized companies, but also mid-and-small-sized companies. Among the multi-cap schemes, SBI Magnum Multicap has distinguished itself as a steady performer with a reasonably good performance record.

SBI Magnum Multicap scheme invests 56% of its portfolio in large-cap stocks followed by 34.1% in mid-cap stocks and the remaining in smallcaps. This portfolio allocation helps the scheme’s fund manager capture growth stories in both large-sized and mid-sized stocks. Like most SBI equity schemes, this also focuses on companies whose growth potential is encouraging and quality of the management is good.

In the past six months, the scheme’s fund manager has taken contrarian calls on largesized companies that have sound management, impressive record of performance and established market share. A few prominent companies are Colgate-Palmolive (India), ICICI Bank, Mahindra & Mahindra and Shriram Transport Finance Company. Though share price of some of these may have been impacted due to some temporary structural issues, they have potential to rise, given the high earnings visibility.

30_05_2017_010_034_009.jpg

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

SBI Magnum Balanced Fund

SBI Magnum Balanced Fund – An old-timer in the balanced category, this fund alternated between bad and good patches until 2011. However, it has come back with a consistent performance since 2012. This has enabled a strong climb in the rankings, from two to five stars recently.

SBI Magnum Balanced Fund maintains a steady-state equity-debt mix. The equity part is multi-cap, with a higher exposure to mid-cap stocks than that of the peers. The portfolio over time has featured a 68-70 per cent equity portion, with the rest in debt. Large caps make up about 50-55 per cent the equity portion. The fund invests in a mix of both defensives and cyclicals.

In the debt portion, the fund invests both in G-secs and corporate bonds for higher accrual income. The corporate exposure does feature some AA minus bonds, though the major chunk is in AAA and gilts. The fund rebalances on a daily basis and caps cash calls at 7.5 per cent.

SBI Magnum Balanced Fund has kept ahead of both the benchmark and the peers over three and five years, beating the index by 5-6 percentage points and peers by 1-3 percentage points. Trailing one-year returns though have lagged behind the benchmark and category returns marginally.

SBI Magnum Balanced Fund long track record suggests that this fund has been a big outperformer in bull markets but trailed the indices in bear phases, with the NAV taking a sharp knock in 2008 and 2011. But the change in strategy could help it weather bear phases better now.

This is an aggressive balanced fund meant for risk takers.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Balanced Funds Delivering Good Returns

Invest Balanced Funds Online

If you thought only dynamic bond funds adjusted their portfolios to rate cycles, a look at balanced fund portfolios may throw up a surprise. Traditionally, balanced funds do not juggle their debt components too much, preferring to simply hold top-rated corporate debt.

That changed after 2014, when several balanced funds began to take a call on interest rates to gain from bond price rallies. The most effective way to play duration and make money off falling rates is to invest in government securities. The average exposure to gilts for balanced funds began inching higher from 2013 onwards. As a result, balanced funds that took such duration calls gained on both equity and debt fronts.

In the rally that kicked off in 2014, the equity portion of the portfolio received a boost from price rallies on the debt portion of the portfolio as well.

Rising gilt exposure

In earlier rate cut cycles, such as that in 2012, balanced funds have not been aggressive in their debt portfolios. Average gilt exposure hovered between 5 per cent and 8 per cent for the most part. From mid-2014 onwards, however, when gilts first rallied, the average exposure began to rise quickly. In 2015, gilts accounted for more than half or more the debt portfolio, indicating that funds were getting increasingly aggressive on the debt front as well.

How balanced funds delivered big returns? It means extra risk

With the rate cut cycle now appearing to be drawing to a close, funds have brought down their gilt exposures. Even so, it remains much higher than previous years.

That means fund returns are subject not just to equity market volatility, but debt markets too. Earlier, the focus was on dynamically managing the equity side of the portfolio, with the debt simply there to provide stability.

If the trend of dynamically managing the debt side to boost returns continues, it could mean higher volatility for balanced funds albeit for potentially higher returns. Fund manager’s ability to call rate cycles correctly would also come into play.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Franklin India High Growth Companies Fund

Top SIP Funds Online

Now Its called Franklin India Focus Fund

Franklin India High Growth Companies fund is a flexi-cap fund with an impressive 5-year annualized performance of 24.39%. After a good run in 2012, 2013 and 2014, it delivered below average performances in the following two calendar years.

Analyst Himanshu Srivastava assigned a Silver rating to the fund and explains what he likes about it.

  • We draw confidence from the fund manager’s executional capabilities and research-driven investment approach.

Roshi Jain is an able manager who follows a sound process and is backed by a solid investment team. She’s an old hand at Franklin Templeton Mutual Fund, having joined the fund house as an analyst in May 2005. She became the co-manager for this fund in October 2012 alongside Siva Subramanian and the lead manager in March 2014.

Our confidence in the fund and its prospects stems from the presence of Jain at the helm and a high-calibre investment team having experience in managing similar strategies successfully over a period.

  • Jain employs model portfolios as her initial reference point.

Step 1

The team decides on a coverage list where they look for growth companies that fit their qualitative requirements. Only companies that have durable competitive advantages versus peers, sustainable business models, strong entry barriers, able management teams, and good corporate-governance standards are included in the coverage list.

Step 2

This is followed by quantitative analysis in which analysts gauge companies using a combination of discount cash flow models and quantitative parameters relevant to the sector.

Step 3

Analysts create sector-based model portfolios which are then combined by the research head to create market-cap based portfolios.

  • With the model portfolios as her initial reference point, the fund manager narrows down on her picks.

She scouts for sectors and stocks which have structural drivers, offer high growth and are available at reasonable valuations. She prefers companies which focus on organic growth rather than inorganic growth and have the potential to post a strong incremental ROIC over the long term.

Contra bets are with a long-term horizon only if the stock has been affected negatively due to external factors.

She does not shy away from taking significant sector and stock bets, and hence constructs a concentrated portfolio having 55%-60% of assets invested in top 10 stocks vis-à-vis the category average of 45%-50%. However, she ensures that it doesn’t have significant exposures in two sectors which are fundamentally aligned. For instance, given she has high exposure to banking stocks, she has avoided investing in metal and mining companies.

  • The portfolio is currently positioned to benefit from a turnaround in economic growth.

Jain has been investing in sectors and companies which are related to domestic growth recovery rather than export-oriented.

The strategy has few limitations which does not permit her to invest in sectors which are capital-intensive and doesn’t offer high growth prospects, such as utilities.

  • The fund manager has the capability to execute the strategy.

Under Roshi Jain (March 2014 to October 2017), the fund has clocked an annualised return of 28% thus outperforming its index IISL Nifty 500 (19%) and category average (23%). Subsequently it outperformed 84% of the Morningstar Category peers on the returns front and 86% of the competition on Morningstar risk-adjusted returns front.

In 2014 when Jain took over the fund, her investments in select stocks from the banking, basic materials, and industrial sectors paid off well. But the performance was underwhelming in 2015 as Jain’s bets based on economic turnaround didn’t pan out as expected. In 2016, her investments in stocks from the financial services and energy sectors helped the fund to outperform the category average and benchmark index.

This year’s average performance is due to investments in stressed sectors like technology and healthcare.

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com h

Closed End Funds

Best SIP Funds to Invest Online

While AMCs vigorously promote closed-end schemes, here is what they will strictly keep under wraps

Even five years ago, everyone associated with the Indian mutual fund industry – AMCs included – was convinced that open-ended mutual funds are the future of the industry and that closed-end funds are dinosaurs of the past. But closed-end funds have risen phoenix like from the ashes to make a comeback in the last three years. If you look at the line up of new fund offers this month, closed-end funds easily outnumber open-ended funds, with over eight new schemes set to tap the market in the next couple of months.

What AMCs say
If you ask AMCs why they’ve gone back to closed-end equity funds, they have many pat explanations to offer.

By locking in your money for three years, closed-end funds make sure that you stay invested long enough for equities to pay off. As retail investors are behaviourally inclined to jump into equities in bull markets and pull out in panic during market dips, closed-end funds save investors from such wealth-destroying behaviour.

Without the distractions of inflows and outflows, the fund manager gets to buy and own long-term picks in his portfolio without worrying about short-term performance.

Lately, there’s also the argument that closed-end equity funds allow managers to own concentrated positions in high-conviction bets, a strategy which is getting harder to implement in many of the jumbo-sized open-ended schemes.

But if all these arguments are tempting you to apply for some of the recent closed-end NFOs, you should first be aware of the following aspects of closed-end funds, which AMCs and advisors may not like to talk about.

Timing problem
Most fund houses in India warn that timing the market is a dangerous sport. Not only do most AMCs refuse to time the market in their own schemes, they also persuade investors to take the SIP route so that they aren’t hurt by bad timing.

But closed-end funds, by offering you only a limited window of opportunity, force you to make a lump-sum investment and not an SIP. If you lack the flexibility to take the systematic route while investing in closed-end funds, you also have the same problem when the units are redeemed.

As closed-end funds are not permitted to automatically convert into open-ended schemes at maturity, both your investment and your exit from the fund are timed to a specific market level. Your returns will heavily depend on point-to-point performance between the fund’s opening and closing dates.

Steep expense ratio
If their small size helps closed-end funds hold concentrated portfolios, the flip side of a tiny size is a high expense ratio. While SEBI sets clear limits on the maximum expense ratio that funds may charge from their investors, its slab structure allows AMCs to charge their highest expense ratios to their smallest funds, with the expense limit shrinking as fund size increases.

Given that closed-end funds often collect very small sums in relation to their open-ended peers, they often end up with high expense ratios. Sifting through the expense ratios of closed-end funds on the Value Research database, the average ratio worked out to a steep 2.62 per cent, with over half a dozen schemes easily topping the 3 per cent mark.

Levying these high costs helps AMCs in two ways. One, they can offer high upfront commissions to distributors to market their closed-end funds. Two, the AMC gets to pocket a much larger fee by managing 10 closed-end funds of Rs 100 crore each than one Rs 1,000 crore open-end scheme!

No skin in the game
Three years ago, SEBI ushered in an important new rule to ensure that AMCs and fund sponsors had a sufficient stake in the schemes they managed. It required all AMCs or sponsor companies to invest either 1 per cent of the assets or Rs 50 lakh in every fund that they launched. This very sensible rule was designed to make sure that sponsors and AMCs had their own skin in the game when they sold any fancy new schemes to investors.

For some reason though, this rule was made applicable only to open-ended funds and not closed-end funds. Ever since the skin-in-the-game norms have come into force, closed-end scheme launches have really picked up in number vis-a-vis open-end schemes.

Black-box working
With open-ended funds, you can do a real-time comparison of any scheme with its peers and benchmarks and exit it if it fails to deliver the goods. Closed-end funds are constrained on both. Given that closed-end funds are not open to investors after their initial offer period, most independent ranking agencies do not include them in their rating exercises. Sporadic disclosures from closed-end funds also make analysis of their metrics difficult. Because most closed-end funds have a definite start date, they don’t lend themselves to a rolling-return or trailing-return analysis. This lack of scrutiny can lead to complacency for the managers of closed-end schemes.

Worst of all, while investor pressure and frenetic competition have forced AMCs to clearly define their mandates and investment strategies for their open-ended schemes and to stick more closely to their labels, closed-end schemes enjoy a free hand both in naming and loosely defining their mandates. In fact, with vague names like ‘Equity Opportunities’, ‘Focused Equity’, ‘Capital Builder’, ‘Long-Term Advantage’ and so on, you are hard pressed to gauge a closed-end fund’s mandate from its name. The presence of multiple schemes under a series from the same AMC also compounds the confusion on mandate and performance.

No SEBI clean-up
SEBI has recently mooted a very important set of rules to tighten the labelling norms for mutual funds, enforcing truth in labelling and simplifying the roster of schemes by consolidating similar ones. But as these norms don’t apply to closed-end schemes, they may continue with their black-box style of working!

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

DSP BLACKROCK MICROCAP FUND

Now Its called DSP BLACKROCK Small CAP FUND

DSP BLACKROCK MICROCAP FUND suspended fresh sales a few months ago after witnessing a surge in inflows on the back of chart-topping performances in recent years.

It was facing a challenge in building decent-sized positions apart from limited number of opportunities at prevailing valuation. To accommodate the higher corpus, it has had to expand its portfolio from around 60 stocks in December 2015 to 80-odd stocks, resulting in a longer tail in the portfolio and diluting exposure in its top bets. The fund has cut exposure to over-priced stocks and tapped cheaper bets, while ensuring that liquidity position is comfortable.

It may not be able to sustain earlier alpha (margin of outperformance over the benchmark), but continues to offer a superior risk-reward profile in its category.

17_04_2017_124_005_007.jpg

17_04_2017_124_005_008.jpg

17_04_2017_124_005_009.jpg

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2017 – 2018

Best 10 ELSS Mutual Funds to Invest in India for 2017

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund

3. Birla Sun Life Tax Relief 96

4. ICICI Prudential Long Term Equity Fund

5. Invesco India Tax Plan

6. Franklin India TaxShield

7. Reliance Tax Saver (ELSS) Fund

8. BNP Paribas Long Term Equity Fund

9. Axis Tax Saver Fund

10. Sundaram Diversified Equity Fund

Invest in Best Performing 2017 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

HDFC Top 100 Fund

This Fund is now called HDFC Top 100 Fund

HDFC Top 200 Fund

  • Fund Manager: Prashant Jain
  • Process: A research-driven process that focuses on quality growth stocks.
  • Performance: Over the long haul, the fund boasts a stellar track record across the risk and return parameters.
  • Expense Ratio: 2.25%
  • Minimum Investment: Rs 5,000

Manager Prashant Jain is sticking to his guns. He continues to have faith in the financial services sector, particularly in State Bank of India. In 2015, the public sector bank’s fluctuating fortunes (following a rise in nonperforming assets and poor results) had an impact on the fund’s showing. However, it performed well in 2016 and the fund made a promising comeback.

The bank continues to feature as Jain’s top pick and we aren’t surprised. He has long favoured public-sector banks in his portfolios, believing that they will be major beneficiaries of India’s long-term structural growth. His conviction in SBI stems from confidence in its core operations, ability to raise inexpensive monies, and attractive valuations. Indeed, given his investment style, this is how we expect him to act.

Research is central to the investment style, with Jain effortlessly combining top-down and bottom-up analysis (with more emphasis on the latter) to identify companies with strong balance sheets and business models. He pays heed to valuations while picking stocks, freely combining relative and absolute valuation methods. Despite largely investing in S&P BSE 200 stocks, he has shown immense flair with portfolio positioning. His in-depth research has given him the confidence to take meaningful variances from index weights at both stock and sector levels. It is noteworthy that over the years, Jain has demonstrated considerable skill in navigating the fund across market conditions and delivered pleasing long-term results.

Admittedly, the process has its biases. The valuation consciousness coupled with aversion to speculative fare may cause the fund to lag peers in momentum-driven markets. Further, in a downturn, Jain’s policy of staying fully invested could lead to underperformance versus peers that get their cash calls right. Yet, we believe the process will hold long-term investors in good stead.

Our reasons for liking the fund–a supremely skilled manager, a robust process, and one of the best asset managers–remain intact.

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

HDFC Prudence Fund

Now This fund is called HDFC Balanced Advantage Fund

Equity-oriented products of mutual funds have seen their strongest-ever investor appetite in the past year, but one scheme has stood out in the inflow deluge. HDFC Prudence Fund, an equity oriented balanced scheme, has seen assets under management soar 250% or `17,000 crore in the last 15 months to `24,479 crore. The balanced fund category’s assets increased 147% in the period. The jump in assets has made HDFC Prudence the largest scheme that is taxed as an equity product in the domestic mutual fund industry .

So, what makes the 23-year-old product so special?

The fund, managed by Prashant Jain, widely regarded as one of the most competent money managers, has delivered an annualised return of 19.42% since its inception. In the last 10 years, the fund has returned 14.4% annually against the category average of 10.9%. A balanced fund invests in a mix of equity and debt. This product enjoys the taxation benefit of an equity scheme if it invests at least 65% in stocks.

While higher returns by the fund has been a draw for investors, another reason that has resulted in heightened interest in the product has been its dividend payout.

Wealth managers said the scheme’s assets saw a spike after it started offering a monthly dividend payout option since January 2016.Since then, the fund has been paying a dividend of `0.3 monthly which on a face value of `10, translates into a yield of 12% per annum.

It is clear that ever since the fund started its monthly dividend option in 2016, the AUM has seen a sharp jump. The other good fund in its sta ble, HDFC Balanced, which does not have a monthly dividend option, did not see such a sharp jump in AUM

HDFC Prudence, which had been paying an annual dividend every year since 1999, changed the option to monthly dividend in 2016. Since dividend income is tax free in hands of investors and bank deposit rates were on a downward trend, many schemes were offering monthly dividends, to attract investors.

Between March 2015 and January 2016, a lot of fund houses started to offer dividend plan in their hybrid schemes. However, HDFC Prudence has been beneficiary of this trend due to their high monthly dividend yield

Other funds in the category Canara Robeco Balance, ICICI Prudential Balanced Fund, L&T India Prudence and Tata Balanced too have been paying monthly divi dends, said wealth managers.

Monthly tax-free dividend of 12% attracted both savvy HNIs as well as retirees HDFC Prudence. Jain’s strategy of betting on an industrial recovery along with interest rates heading lower has helped the fund return 27% over the last year, further attracting investors.

Advisors say investors with a time frame of five years and above can hold on or buy balanced funds, but those buying it merely with the objective of earning high dividend should be ready for lower dividends in case the markets correct.

Fund houses can pay regular dividends only out of the distributable surplus. Investors’ depending on balanced funds for regular dividends may be caught on the wrong foot if the market changes track and moves in a southward direction for some time

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Franklin India Prima Plus Fund

Best SIP Funds Online

Franklin India Prima Plus Fund scheme aims to provide growth of capital and regular dividend from a portfolio of equity, debt and money market instruments and focusing on wealth creating companies across all sectors and market cap ranges.

Consistency has been prime attribute of this 20-year category veteran, which has earned it a four- or five-star rating for much of the last five years.

With a 65-75 per cent allocation to large-cap stocks, 20-30 per cent to mid caps and a marginal small-cap allocation, the fund hunts for growth at a reasonable price. Currently, the fund has a higher weight to large caps at over 75 per cent of the portfolio.

Franklin India Prima Plus Fund invests in wealth-creating companies whose competitive advantages are likely to translate into a superior return on capital. The research focuses not only on the track record of companies but also on their future strategies and their ability to generate wealth on a sustained basis. The fund avoids taking cash calls. Its mandate is to find equity opportunities in all kinds of market conditions.

Within the multi-cap category, the fund’s large-cap allocations have been higher than those of its peers. These have also been upped in the last one year.

Franklin India Prima Plus Fund three- and five-year returns are 4-5 percentage points ahead of the benchmark returns and 1-2 percentage points higher than the category returns. The fund has been a good risk manager and has contained losses much better than the category in every bear market, be it in 2008 or 2011. In runaway bull markets, like 2007 and 2009, this fund has lagged behind its benchmark. In the recent bull market, though, it has been an outperformer, both in 2014 and 2016.

Franklin India Prima Plus Fund is A fund you can rely on to deliver over market cycles.

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com