Birla SunLife Cash Manager Fund

BSL Cash Manager Fund Online

In this fund we have been running a modified duration in the range of ~1 year for the last couple of months. In the 1-2 year bonds space the spreads and carry currently look attractive to us owing to the liquidity position of the economy now & as expected to be in future with RBI’s efforts towards moving to a neutral liquidity position from a the current deficit one. We believe that the RBI’s efforts on infusing liquidity into the system to move it from deficit liquidity to neutral liquidity is going to ease short term rates going forward. Hence, it is only justified to benefit by investing in 1-2 year segment now and benefit going forward when the yields come down.

Owing to this strategy, the fund is at the higher end of its duration band (0.5 – 1.25 yrs) and hence, the credit risk taken in the fund at this time is limited.

Bank Accounts for Mutual Fund Investments

Invest Mutual Fund Investments Online

You need only one bank account to transact in any mutual fund

There is no such requirement for you to open a different bank account or hold multiple accounts to be able to invest in different mutual funds.

With just one bank account you can invest in and redeem your money from all mutual funds.

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Invest UTI Short Term Income Fund Online

UTI Short Term Income Fund Online

The fund seeks to generate steady and reasonable income, with low risk and high level of liquidity from, a portfolio of money market securities and high quality debt with maturity upto 4 yrs.

A fund which has managed a near 9.5 per cent CAGR over five years, this three-star fund uses a combination of sovereign and corporate bonds to earn short-term returns. The direct plan has managed returns that are 50-60 basis points ahead of the institutional plan in the last three years.

The fund is among the most conservative funds in the category in terms of taking on credit risk, given that nearly 90 per cent of the portfolio is parked in G-secs or A1+ or AAA corporate bonds. The fund does not shop below AA-rated corporate bonds for better returns. Instead, it takes a limited exposure to long duration G-secs to make the most of rate falls. The average maturity of the portfolio has hovered at three-four years on occasion but stood at a moderate 2.2 years by April 2016 end. This indicates that the fund takes rate risks to a limited degree.

SBI Magnum Equity Fund

Invest SBI Magnum Equity Fund Online

Earlier known as Magnum Multiplier Plus ’90, the scheme seeks capital appreciation through investments in diversified portfolio of equities of high growth companies. The scheme was made open-ended in January 1998.

This fund has managed strong outperformance of the index for the last one year and three years. It has managed a steady climb in the rankings in the last ten years. A consistent show has helped it retain a four-star ranking in almost all of the years since 2007, no mean achievement in choppy-market conditions during this period. This fund is focused on the top 100 companies in terms of market cap and on outperforming the benchmark over a one- to three-year period. The idea is to outperform the benchmark so that the fund also beats the category average automatically. The objective is good risk-adjusted returns with an eye on the tracking error. The fund is now invested in a mix of growth and cyclical stocks.

The good show for one year has lifted the three- and five-year returns too to result in a strong outperformance of the category by 2-3 percentage points on a CAGR basis. On an annual basis, this long-standing fund has outperformed both its benchmark and category for 11 of the last 13 years, which is a remarkable achievement. Year 2008 proved to be difficult for the fund, with the NAV taking higher losses than the benchmark in the bear market. But since then it has proved good at managing downside in the down market of 2011. The same manager, R Srinivasan, has been at the helm since 2009, imparting stability to the fund’s style and strategy. The fund invests 85-90 per cent of its assets in large caps, with a slightly higher mid-cap bias than the category.

The fund has a good long-term record and improving returns.

E-CAS for Mutual Funds

The consolidated account statement (CAS) consists of record of transactions and holdings of an investor in demat accounts held with NSDL and or CDSL, and in units of mutual funds. Of late, the CAS has also been including insurance policies held in e-insurance accounts. CAS is sent to the investor in the month following the month in which an investor carried out a financial transaction with respect to investments.

Paperless CAS

Instead of receiving CAS in hard copy, investors can sign up with NSDL to receive their consolidated account statement by email on their registered email id by using the E-CAS facility.

Link

Investors can access https:nsdlcas.nsdl.com and click on NSDL E-CAS to sign up for this facility.

CAS ID

In order to subscriber for e-CAS, one needs to know the CAS ID. CAS ID can be found out by clicking on the “Know your CAS ID“ tab. The investor is prompted to provide his PAN, DP Name and ID and Client ID. Once the fields match, the CAS id is displayed on the screen. This id may be noted for future reference.

Subscribing to E-CAS

Once the CAS ID is known, the investor can subscribe to E-CAS by entering the CAS id and the PAN. On clicking the “Submit“ button, the investor is prompted to choose the mobile number on which the one-time password can be sent for authentication.OTP received on the mobile must be entered to authenticate and proceed. Further the investor’s Email id is registered. The investor is required to accept the terms and conditions for e-CAS. On completion of all these steps, this service gets activated.

If the investor wants to go back to receiving the CAS in physical mode, he can approach the depository to get this done.

The E-CAS is a password-protected file and one needs to enter PAN in capital letters as password to open the file.

Invest IDFC Corporate Bond fund Online

Invest IDFC Corporate Bond fund Online

Performance :

Income Short Returns As on 12-September-2016
Short Term Funds Regular NAV / Index Value Average Maturity

(in Years)

Expense

Ratio

Monthly
AUM
(Jul-16)
1 Week 2 Weeks 1 Month 3 Months 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years YTD FYTD Since Inception
IDFC Corporate Bond Fund – Reg – Growth 3037.7 10.74 3.83 0.48 12.93 13.15 9.07 14.33 13.37 N.A N.A N.A N.A N.A N.A 12.21 11.07

Save Tax and also get better Return

2017 Season of Tax Saving investment has started

If you are salaried then your EPF and your life insurance premiums are already qualified as an eligible investment option to get the benefit under Section 80C. Rest of the money you may invest either into the 5 years bank FD, PPF, NSC or ELSS. Except ELSS all other tax saving instruments will generate the fix return which might not even be sufficient to give you the cover against inflation.

Apart from the Life insurance policies premium and EPF, PPF is the most preferred choice of investor for investing for 80©. While PPF has many merits including the assurance and safety along with the stable return, it lacks when it comes to inflation adjusted better return. To get the comfort of assured and stable return you need to sacrifice the chance of earning the higher return.

While on the other hand, ELSS (Equity Linked Savings Schemes) has a very good track record in terms of giving the better inflation adjusted return than PPF in longer run; it is still not very popular due to the fact that it doesn’t give you any assurance and predictability of returns.

Investing into the ELSS may give you the dual benefit of tax saving and higher return. You can get the investment option where you get the higher probability of getting far better return than the PPF in longer run. Though in short run ELSS can be much more volatile and unpredictable due to the fact that it invests into the equity and equity related instrument which are connected to market movement.

ELSS can be a very good alternative compared to PPF, because minimum investment cycle of PPF is 15 years i.e. very long term.

ELSS vs PPF

Let’s look at the historical performance of the ELSS vs PPF.

In case of ELSS return is market driven. As on 31st March, 2015 the average return for last 12 years of all ELSS schemes is 24.66%. Following is the comparison of the return of ` 100000/- invested every year into ELSS vs. PPF. Analysis gives you an idea about minimum, maximum and average returns generated by any ELSS schemes out of all available ELSS schemes as on 31st March, 2015. Returns generated by even the worse performing ELSS schemes have given the better returns than PPF as on the given date.

Years 5 10 12
Investment 500000 1000000 1200000
Maximum (ELSS) 11,66,023 30,93,292 70,50,286
Minimum (ELSS) 8,12,305 21,58,779 35,70,806
Average (ELSS) 9,29,566 26,26,812 51,43,643
PPF 6,44,940 15,97,279 20,93,487

Also apart for the return ELSS is better in terms of least lock in period i.e. 3 years from the date of investment.

So why just to save only tax ,you can save tax & also earn better returns. Invest into the Save Tax Get Rich recommended list of ELSS schemes and grab this combo.

Top ELSS Funds

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Reliance Medium Term Fund

Reliance Medium Term Fund Online

The primary investment objective of the scheme is to generate regular income in order to make regular dividend payments to unitholders and the secondary objective is growth of capital.

This is a veteran fund in the category. The regular plan’s returns are just a tad above that of the category average, with the five-year CAGR at 9 per cent plus. The direct plan is about 40 basis points ahead of the regular plan on annualised returns.

Despite its label, the fund runs a very short duration portfolio, with an average maturity that has seldom crossed 1.5 years in the last five years. This is far lower than the category and materially reduces the interest rate risk taken by the fund. The fund takes minimal exposure to G-secs and has mostly invested in corporate bonds and commercial papers.

The corporate bond portfolio leans towards safety. AAA and AA+ papers make up 62 per cent of the assets by April 2016. The fund has invested 13 per cent of its portfolio in lower-rated bonds, though not lower than AA-. However, risks are contained through a diversified portfolio, with individual bonds making up no more than 6 per cent of assets.

The expense ratio of the regular plan is 0.64 per cent while that of the direct plan is 0.24 per cent.

US focused Mutual Funds

Given an uncertain global financial environment, US-focused equity funds offer good returns compounded by the advantage of a strong dollar

Brexit seems to have pushed global uncertainties to a new high. In such a scenario, stepping out of the domestic market could appear a tad adventurist. Is it? Let’s see what a US-focused fund can bring to your investment portfolio.

INSURE YOUR PORTFOLIO

With historical annualised return in excess of 15% over 15-20 years, Indian stock markets have satisfied long-term investors. However, the slowdown over the past few years has shown that these returns cannot be taken for granted. And, even for those who believe that the Indian economy is about to turn a corner, continuing to ignore the US market may not be a wise move. Having some dedicated exposure to US equities will provide a buffer to your portfolio. The US is home to global corporate giants. Even though India has its share of high-quality, highgrowth businesses, none offer the kind of global reach and scale as some of the US multinationals-Google, Facebook, Apple, Microsoft, among others.

The single biggest reason, however, for you to consider a US-focused fund is to negate the impact of a depreciating rupee on your portfolio. Heightened global uncertainties are likely to further strengthen the dollar which is seen as a safe haven. When you invest in a US-focused fund, besides earning returns from the equity market, you also benefit from the currency market–given the likelihood of a strengthening dollar and weakening rupee.Consider how the benchmark index Sensex has fared relative to the US benchmark index Nasdaq in rupee terms. Over three years, the Nasdaq has clocked 15% compared to the Sensex close to 12%. Over five years, the Nasdaq, in rupee terms, generated a whopping 21% against the Sensex’s meagre 7.5%. Over three and five years, the appreciation in the dollar has added 14% and 51%, respectively, to the actual returns from US centric equity funds.

While on the one hand, the depreciating rupee will hurt your finances owing to higher price of crude oil and other commodities, your dollar-denominated portfolio will offer you some protection. It is essentially a partial insurance for your entire portfolio. For in dividuals who expect to incur some dollar based expenditure in the future, owing to children’s higher studies or other wise, the underlying cur rency expo sure from US focused funds can prove beneficial. Such individuals can allocate upto 20% of their portfolio to US equity funds. Others may limit their allocation to around 10% of the overall portfolio.

Bala insists, however, that investors should not get too adventurous with these funds, and hold them for the long term. A longer time hori zon is advisable for these funds since these are not tax-efficient, if held for the short term. Any gains realised within three years of purchase are added to income and taxed at the applicable tax slab. Gains realised after three years are taxed at 20% after indexation.

WHERE TO INVEST

The choice of a US-focused fund, as is the case with domestic funds, is critical. Bala reckons investors seeking US exposure should do so through a Nasdaq-focused product, since it mostly comprises technology-related firms, whose global exposure is tilted towards the emerging markets. It does not include financial and investment firms. The Motilal Oswal MOSt Shares Nasdaq-100 ETF provides direct access to this index. Being a passively managed fund, it also carries a lower expense ratio of 1%. This is the only fund with a five-year performance track record. The actively managed funds in this arena, such as the Franklin India Feeder US Opportunities Fund, Kotak US Equity Standard Fund and DSP BlackRock US Flexible Equity Fund are mostly feeder funds–invest in an offshore parent fund–and carry a much higher expense ratio. ICICI Prudential US Bluechip Equity and Reliance US Equity Opportunities are actively managed funds that invest directly in US stocks and could be possible investment options.

Best US focused Mutual Funds to Invest

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HDFC MF Debt Funds

Invest HDFC MF Debt Funds Online



Recent credit policy review was along our expected lines with the MPC reducing policy repo rate by 25bps in a surprisingly unanimous decision. In its post policy conference call RBI highlighted that the current 1.50% to 2.00% real neutral rate is a time bearing concept and with decline in global real rates the more appropriate real neutral rate for India is around 1.25% to 1.75%. This is a significant positive announcement and in our view will provide space for further easing of rates going forward.

Additionally, still high real yields, low and stable level of core inflation, continuing weak private investments, and potential of strong capital flows from debt FPIs are all supportive of lower yields going forward. In line with the above, our recommendation to investors would be to remain invested in duration funds.

Below bubble chart for positioning of our Debt Funds wrt Average Maturity of our Funds Vs AAA/G-Sec exposure. Size of bubble represents AUM as on 30th Sept’16. Also, refer subsequent reckoner for our products positioned as Low maturity/ Accrual strategy and High maturity/ Duration strategy

YTM APM MD AUM (Rs.cr) AAA* Below AAA* Cash* G-Sec / T- Bills CD/CP/BRDS Exp. Ratio Exit Load Load period (m)
7.99% 4.86 3.37 1,793 32.0% 37.3% 2.9% 27.9% 1.10% 0.25% 1
7.49% 3.57 2.84 6,885 75.8% 0.9% 23.3% 0.0% 0.36%
7.87% 3.46 2.53 1,565 60.6% 28.9% 10.5% 5.8% 0.65%
9.02% 3.79 2.88 8,811 20.7% 74.4% 3.3% 1.4% 1.75% 2% / 1% / 0.5% 12 / 24 / 36
8.87% 2.02 1.69 3,584 23.2% 71.1% 1.0% 2.2% 10.0% 1.52% 0.75% 12
7.45% 1.67 1.44 7,719 72.4% 9.7% 3.3% 14.6% 2.9% 0.36%
High Maturity / Duration Strategy Yield & Maturity Corpus Portfolio Concentration Expenses & Loads
Scheme Name YTM APM MD AUM (Rs.cr) AAA* Below AAA* Cash* G-Sec / T- Bills CD/CP/BRDS Exp. Ratio Exit Load Load period (m)
7.10% 15.99 8.21 2,579 -0.1% 100.1% 0.77%
7.38% 17.07 8.59 2,605 4.0% 11.3% 2.0% 82.7% 1.95% 0.50% 6
7.50% 13.12 7.30 1,908 5.0% 14.4% 2.1% 78.5% 1.52% 0.50% 6
6.76% 4.75 3.57 386 21.9% 78.1% 0.38%