Choosing Direct Plan of L&T Emerging Businesses Fund Can be Fatal

The mutual fund awareness campaign in India has been doing a tremendous job as the inflows in the equity mutual fund has been increasing at a great pace in recent months. AMFI launched the “Mutual Fund Sahi Hai” campaign to inform the mass about the benefits of mutual funds. But in many of the banners and advertisements, AMFI can be observed promoting direct plans over regular ones. No doubt direct plans will give you more benefits but for those making an investment for the first time that too in an aggressive scheme like L&T Emerging Businesses Fund, the direct plan can be hazardous. If you do not believe it, your thoughts might change at the end of this write-up.

What are Direct and Regular Plans?

Before moving any further it is important to clear the myths and confusion regarding direct and regular plans. Direct plans of mutual fund allow investors to invest on their own without the help or assistance of any external source. The investor needs to do all the formalities on himself and select the mutual fund scheme, tenure, amount everything on his own. On the other hand, if money is invested through an advisor or distributor after recommendation and suggestion, it is invested in the regular plan where a majority of the formalities are done by the registered mutual fund provider. Direct plans are advantageous in terms of returns by a slight margin as the expense ratio or the amount charged by AMCs is lower for direct plans compared to regular plans. The expense ratio generally differs by 1-1.5%.

Is it a Smart Move to Choose Direct Plans?

Direct plans certainly are a better choice to invest in mutual funds provided that you are well aware of every little aspect of mutual funds. To gain better returns from mutual funds through direct plans, you need to know which segment or category will be most suitable to achieve your objective. What would be more beneficial according to the trends in the market and what can be the probable outcome in the future. Apart from that, you should also keep an eye on your holdings to see if the portfolio needs any revamping on a regular basis. If you can guess everything on your yourself than choosing direct plans over regular ones is definitely a smart choice as investors can gain nearly 1% more returns on the invested amount. However, if you are blindly going for the 1% return without proper knowledge about investing in mutual funds, you might be putting your hard-earned wealth and your financial objective at a greater risk.

Read the article to know why choosing direct plans over regular plans of L&T Emerging Businesses Fund can be dangerous.

L&T Emerging Businesses Fund - Regular vs Direct

L&T Emerging Businesses Fund is a high-risk fund which might have provided better gains in the past but investing in the fund without prior knowledge about the scheme would be a mistake. Direct plans of high-risk funds should be avoided by those who lack basic knowledge about mutual funds. L&T Emerging Businesses Fund is a small-cap fund that invests in stocks of emerging businesses which are prone to frequent fluctuations. The fund has a high standard deviation and is ideal only for long term goals of more than 7 years. A trusted advisor can let you know whether the fund is ideal for you or not. The market conditions are also responsible for the performance of the scheme as for some rolling tenures, it has provided more than 70% returns in a year while the worst performance for a year is below 19% in negative. If you plan to invest in such volatile scheme without basic knowledge you may have to face fatal consequences.

Direct plans are better than regular plans only if you are well aware of every aspect of mutual funds. It is just like taking medicines on your own and taking prescriptions from a doctor. If you can select the most optimum medicines for yourself, you don’t have to pay to the doctor. But we don’t do that because we don’t want to take a risk with our health. So why do we take unnecessary risk in finances? Is it not important? However, paying a very little proportion to experts for rigorous efforts of research and analysis for your betterment is not a bad idea at all.

Yesterday
by MySIPonline
0
1
Mutual Fund Investment

Can Sundaram Rural and Consumption Fund Save You From Getting Poor?

India is developing at a superfast rate, and is ranked among the fastest growing economies in the world. In terms of wealth, it stands at the number 6 spot, with an estimated wealth of nearly $8,500 billion dollars. But in spite of all these glinting facts about our country, we are still considered among the poorest living beings on earth.

While there could be many factors contributing to this defaming statement, a large section of society living in poor, rural conditions can be cited as the main culprit.
Investing in Sundaram Rural and Consumption Fund is a small step that you could take for the betterment of your own living, as well the living standard of the country at large. The fund is designed specifically for the purpose of uplifting the poorer sections of the society, by acting as a direct medium between the rural companies and the people capable of funding them.

Learn how investing in Sundaram Rural and Consumption Fund (G) can help the economic conditions of an individual as well as the nation.

The Economic Condition of India

While being the sixth wealthiest country in the world might seem very appealing, it is actually not a very charming reality. The U.S. is the wealthiest country in the world, with a total wealth of a whopping ₹63,000 billion which is nearly 8 times the current net worth of India. But, it shall be noted that the U.S. has a population of nearly 320 million, which means that there is a wealth of $197 dollars (approx.) per person. On the contrary, India has a wealth of merely $62 billion out of which, majority are government reserves. This is a major setback for our economy, as the wealth appears huge only in totality and not in terms of per person.

Launching Sundaram Rural and Consumption Fund

The launch of Sundaram Rural and Consumption Fund in March, 2006 played a pivotal role in strengthening the country’s economy. As of today, nearly 70% of the population lives in rural or semi-urban areas. Here, the average income per person is alarmingly low, which is acting as a crippling agent in between the country’s growth. The mission of Sundaram Rural and Consumption Fund (G) is to fill this hole in the economy, by encouraging more industrialisation in the rural areas. After the release of the fund, many investors showed high interest in investing their money for a long period, which in turn propelled the operations of the rural industries. This has also paved new paths of wealth creation for the investors, as they can achieve their goals in a disciplined way through sector based investments.

The Investment and their Outcomes

Generally, people are reluctant to spend a large sum of money at once. This makes it even more difficult for the companies to source capital, which in turn greatly affects their growth operations. Hence, to fix this problem SIP investments were introduced that provide an opportunity to make relaxed investments. Here are some of the major benefits that you can achieve through SIPs: -

  1. Easy Investment – pay just ₹250 a month to buy a stake in Sundaram Rural and Consumption Fund. Since the NAV of the Fund is running at ₹41.2077 (as recorded on 2nd July 2019), you can buy a big chunk in this fund at a reasonable price.
  2. Rupee Cost Averaging – Since you are buying the units at different prices, you have a window to streamline the overall cost of investment. Hence, you can get more units at a cheaper price in comparison to a lump sum investment.

If you choose to invest in Sundaram Rural and Consumption Fund – Regular Plan (G), then you can unlock high rewards for yourself. The performance of the fund in the last five years was staggering, as it yielded 13.61% on an average. This was far better than what the benchmark and the peers earned, whose average yield stood at 10.55% and 11.70%, respectively. Hence, by choosing this fund for your portfolio, you can catapult your wealth creation process and achieve all your financial aspirations. So, don’t waste time thinking any further! Plan an investment today!

July 11, 2019
by MySIPonline
0
2
Mutual Fund Investment

Gain Victory on Your Financial Aspiration by Investing in Axis Midcap Fund

When buying an investment, it is imperative to take some precautions. No doubt mutual funds are a great source of wealth building and can help you to achieve your goals, but all this doesn’t come very easily. You have to be very particular about your choices, and proceed with a systematic plan in order to achieve your goals.
Talking about best-performing funds, Axis Midcap Fund is one of the great choices available in the market. You can make high energy plans with this fund and can conquer big goals with a disciplined approach of investment.

Read this article to find out about the importance of Axis Midcap Fund in wealth building.

Axis Midcap Fund – The Biography

The Indian investing community is huge. There are millions of investors, particularly in the age group of 25-50 years. Thanks to the rigorous awareness programs launched by many AMCs, many people are now taking interest in making mutual funds. However, not everybody has the same requirements. Hence, diversity of options is a must to ensure a regular flow of money in the market.

Axis Midcap Fund – Regular Plan (G) was launched with an objective of providing a platform specifically designed for creating long range investments. Being a midcap fund in nature, it is most suited to aggressive investors, since the risks are slightly higher in these funds as compared to large cap funds. However, the higher risks doesn’t bar the conservative investors from investing in it. They can definitely use this option for the purpose of adding diversification to their portfolio, and make a strong financial plan to achieve their future endeavours.

The Attributes

The AUM

Axis Midcap Fund – Regular Plan (G) was launched in 2011. However, it has achieved enormous success in a short time span, which has placed it in the league of top-performing mutual funds in India. The fund accumulated an AUM of ₹2, 549 crore, thus becoming one of the fastest growing funds in the midcap segment. One of the main advantages of having such a huge AUM is that there are superb growth opportunities in the future for the investors, which can help them to attain maximum wealth creation.

The Fund Management

For a fund to be successful, it is imperative that the fund management is A-grade. Fortunately, the fund management team of Axis Midcap Fund Growth comprises of veteran fund manager Mr. Shreyash Devalkar, who is an Engineer and an MBA with over 4 years of experience in fund management. Prior to joining Axis Mutual Fund, he worked for many big asset management companies such as BNP Paribas Mutual Fund, IDFC Capital, and JP Morgan Services. Hence, you can be sure that your funds are in safe hands, and you won’t have to worry about their improper use.

The Past Score

The past performance of Axis Midcap Fund has been quite applaudable. In the last five years alone, it was able to grasp returns worth 12.46% every year. This yield is even higher than what was achieved by the benchmark and the peers, which stayed at 10.84% and 12.33%, respectively. As a result of these numbers, the fund is rated among the top midcap funds to invest in India, and stands at number 8th position in the category. Hence, it will be a great option for any investor that wants to make money through aggressive investing.

The Investment

Investing in Axis Midcap Fund is very convenient and approachable. With just ₹5000 in hand, you can subscribe to this fund and relish its benefits. The SIP plans start at ₹100, hence you can fix any budget and start an investment here to accomplish your financial goals. But make sure that you are planning for a long-term investment, as there is an exit load of 1% in case you are redeeming your funds within 365 days, in excess of 10% of the amount that you initially invested.

Axis Midcap Fund (Growth) is a superb investment option if you are looking for aggressive wealth building. Toss this fund in your portfolio and see your wealth growing to the next level. Don’t forget to keep your financial advisor posted for achieving best investment planning.

July 5, 2019
by MySIPonline
0
4
Mutual Fund Investment

How to Maximise Your Wealth with UTI Midcap Fund?

Starting mutual fund investments at an early age, say when you are in college or have just started your first job, can double the benefits. Many financial experts these days suggest that the earlier you start planning for your future, the better your chances will be to build wealth and retire rich. Besides your main profession, it is very important to find alternative sources of income. This will enhance your chances of achieving success, and you’ll never have to face any downturns in case your main profession fails.

This article describes some important aspects of UTI Midcap Fund in brief, which will be very helpful for creating a robust financial plan.

Investing in UTI Midcap Fund is one of the best ways to earn good money. This fund has been rated well by many expert credit rating agencies, and is also recommended by financial experts. For a high energy wealth-oriented portfolio, this fund is a must in your financial plan.

The Features of UTI Midcap Fund

For making a strong financial plan, it is essential to have a clear understanding of the fund that you choose to invest in. Following are some of the important details that you ought to keep in mind before placing your money in UTI Midcap Fund – Regular Plan (G): -

  1. The Category : As the name suggests, UTI Midcap Fund Growth is a midcap fund of the equity origin. It was launched way back in 2004, with an ambition to provide high growth platform to the investors. The main objective of the fund is to invest in the top 100 midcap companies that are selected on the basis of their past performance and market cap. The invested amount is rested for a long period of time, usually 5 years, to grind the maximum profit. This way, the fund makes huge progress in wealth building and bestows great results upon its patrons.
  2. The Cost : Buying a stake in UTI Midcap Fund is quite affordable. Due to an efficient fund management team, the expenses of the fund are well-managed which affects the overall cost of its units. The NAV of the fund was last recorded on 28th June 2019, on which day it was standing at a value of ₹98.9511. This value arrived after slipping by 0.22%. As per the expert opinion, the NAV of UTI Midcap Fund (G) is running fair, and aspiring investors should make an investment as early as possible before the prices go steep.
  3. The Investment Philosophy : Pinning the wealth in a particular area exposes it to huge risk, which is one of the main reasons why most mutual funds fail to pay high rewards. Keeping this in view, the makers of UTI Midcap Fund believe in a diversified approach of investing. The portfolio of the fund comprises of both equity and debt instruments, so that there is a good balance between risk and returns and the fund can function for a long period of time. Being a midcap fund, the fund is heavy on midcap stocks which are present at an intensity of 79.67%. Also, small cap stocks are included in the portfolio to the tune of 14.59%, for infusing extra momentum in the fund.
  4. The Report Card : Analysing the past performance is perhaps the foremost step that you should take while planning an investment in mutual funds. If you are unaware of the past results, then there is a high chance that you might be putting your money on high risk. Thankfully, the numbers secured by UTI Midcap Fund in the past are awesome. In the last five years alone, the fund ground out 11.18% worth of profits from the market, which is a good yield in comparison to what the benchmark and the peers earned. As a result of such high scores in the past, the fund was ranked among the top 20 midcap funds to invest in India, which further confirms that an investment here will be worth of high value in the future.

So, if you are planning to build a good corpus in the quest to make your future secure, then you must invest in UTI Midcap Fund (Growth).

#mutualfunds #planning #financialfreedom #finance #wealthgoals #money #management #investing #UTImutualfund #UTI #UTImidcapfund #portfolio #performance #nav

July 2, 2019
by MySIPonline
0
2
Mutual Fund Investment

SBI Bluechip Fund – A Power Pack Plan for Wealth Building

Want to invest in SBI Bluechip Fund? It’s time to get an in-depth knowledge now.

Are you planning an investment in mutual funds? Have you been watching a lot of business news lately? Are you in a desperate search for a mutual fund option that could give you stability and high earnings? Then, your search is over! Here in this article, you’re going to read about one of the large cap fund options in India, SBI Bluechip Fund, which is a combo of high energy and stability. This fund can help you to accomplish your goals and plan a disciplined investment for life.

Let’s check out some points about SBI Bluechip Fund (G) that makes it one of the best large cap options to invest today.

What is SBI Bluechip Fund?

SBI Bluechip Fund – Regular Plan (G) is an equity-oriented, large cap mutual fund that has its origin from one of the largest fund houses in India, SBI Mutual Fund. The fund was introduced in the market in 2006, and has since been operating successfully in the market. Today, the fund holds a combined wealth of ₹22,754 crore which was recorded on 31st May 2019. This makes it one of the most powerful funds in the large cap category, if we talk in terms of the asset size alone.

How is it build up?

As apparent from its category, SBI Bluechip Fund Regular Plan G is heavy on large cap stocks. However, for the sake of diversity the fund managers have also mixed various other stocks in the portfolio, in order to make it more energised and poised to perform in the long run. As per a recent analysis, the following data was revealed regarding the portfolio built which will further provide meaningful information about how this fund. Operates. Let’s have a look: -

As seen from the above table, SBI Bluechip Fund (G) has a heavy investment in giant & large cap funds, which together form nearly 90% of its portfolio. Further, midcap stocks have been given a light exposure to ensure that there is sufficient energy in the portfolio, and that it doesn’t get worn out by the market movements. All in all, SBI Bluechip Fund has a very diverse portfolio that can help you to create a robust portfolio aimed for long-term goal achievement.

How it has performed in the past?

The past performance is one of the most important areas that you should scour before picking up any fund for your portfolio. This record will help you to determine how the funds has reacted to the market forces, and how good it can perform in the future. In a recent analysis of SBI Bluechip Fund, it was revealed that the fund has given decent performance in the last five to 10 years. Being a large cap funds, it has scored numbers that are hard to achieve in this volatile market. For a better understanding, the details of the past performance has been summed up in the table below through which you can get a quick view of the statistics. Go ahead, take a gander!

As it is evident from the table above, SBI Bluechip Fund – Regular Plan (G) has given phenomenal results in the last five years. Also, the fund’s average yield till date stands at an impressive score, placing it among the best five large cap funds to invest in India.
Hence, to make a powerful portfolio that offers high risk protection and a chance to grow huge wealth, you must add SBI Bluechip Fund – Regular Plan (G) to your portfolio. The fund can be subscribed with an initial investment of just ₹5000. So don’t just stare at the screen! Go ahead, plan an investment!

June 27, 2019
by MySIPonline
0
1
Mutual Fund Investment

Is SBI Magnum Global Fund Still Struggling to Adapt Thematic Mandate?

Read the article to know why SBI Magnum Global Fund has been unable to impress the investors after the change in the investment mandate in May 2018.

The 25-year-old scheme of SBI Mutual Fund has been facing constant challenges to live up to the expectation and reputation it has created over the years. The fund previously followed the mid-cap mandate but due May 2018, it became a thematic fund. SBI Magnum Global Fund currently is an MNC thematic fund that invests in the stocks of the companies which have their business in more than one nation. It has a lineage of producing significant returns to the investors and has been trusted by a large number of investors but the current conditions under new mandate are unsatisfactory. Read to know what are the expectations and reasons for the underperformance.

Why is it Unable to Perform?

The erstwhile mid-cap scheme was a consistent performer for a long time but after the re-classification, the new fund manager Mr Anup Upadhyay invests in stocks of the multinational corporation. After the change, the market conditions have been unfavourable for the scheme as MNCs have failed to impress the investors. The mid and small-cap indices have recorded negative returns by a notable margin which also played a major role in downgrading the ratings of SBI Magnum Global Fund. The fund has more than 55% of the corpus allocated in the stocks of mid and small-cap companies which have their business in multiple countries. Due to higher allocation in mid and small-cap stocks, the fund has been unable to deliver expected gains.

The slump in the MNC themed funds has occurred due to various national and international economic imbalances. Due to continuous trade issues between the US and China, consumption slowdown, slowing GDP in India and many other reasons have resisted the MNCs to flourish in the last 1 year. However, the returns of the scheme in the category have been highest but are still negative.

Is it the Right Time to Invest?

The mid and small-cap industries are expected to make a recovery in the near future but we don’t know when will it take place. The expectations are positive for the upcoming year as anticipated by the experts but the investors should be prepared to face volatile trends. SBI Magnum Global Fund has an aggressive portfolio and the investments must be done for the long term. Advantages of dips can be taken but investors should avoid timing the market as the performance of the scheme depends on multiple reasons and the future is unpredictable. The fund has been unable to perform well under new mandate but has the ability to deliver the highest returns in the favourable market conditions due to the involvement of aggressive stocks.

Who Should Invest?

SBI Magnum Global Fund comes from a prominent fund house and is managed by professional fund managers. As the stocks are of multinational companies, the performance also gets the influence of international market although the market conditions of India are majorly responsible for the performance. The fund is ideal for experienced investors who can track the market and take high risk in mutual fund investments. The risk is slightly higher than peers due to higher involvement of small and mid-cap stocks and hence the investment must be done for the long term. New investors and conservative investors can skip this scheme. The assistance of financial experts must be taken before investment.

As the fund is constantly suffering from under-performance after the change in the mandate, nothing can be guaranteed in the future. However, due to the higher proportion of small and mid-cap stocks, better gains can be expected when the market conditions favour emerging businesses. The 25-year-old scheme might be struggling to adapt to the new mandate but the market conditions have played a key role in resisting the growth of SBI Magnum Global Fund.

June 25, 2019
by MySIPonline
0
1
Mutual Fund Investment
Show more