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Reliance Multi-Cap Fund Can Be Your Ticket to Become a Millionaire

2019-07-26T09:55:54.622Z

The article explains how Reliance Multi-Cap Fund can make you a millionaire if a long term disciplined investment is carried out.

Gaining wealth from investment in a mutual fund is a long term process but for the disciplined investors, it is the most convenient way to achieve their financial objective. In the equity market, any category of stocks can surge under any trends as it is uncertain and unpredictable. Hence a mutual fund that can take advantage of rise and fall in any category of stocks can be highly productive for the long term investment. Reliance Multi-Cap Fund is one such mutual fund that can grab the wealth gain opportunities under any market conditions and is ideal for disciplined long term investment. Read to know why the fund has the potential to make you a millionaire in the long term.

What is Reliance Multi-Cap Fund?

It is a consistent performer in the category of multi-cap funds which aims to deliver long term capital gains to the investors from a diversified portfolio involving stocks of large, mid, and small-cap segment. The fund manager Mr Shailesh Raj Bhan takes concerned calls according to the market conditions and prospective trends in the equity market. It is a largely chosen scheme which has delivered impressive returns to the investors in the past and has the ability to deliver better returns in the long term. It was launched in 2005 and has maintained annualised returns since inception as 17%. By investing for the long term in Reliance Multi-Cap Fund in a disciplined manner, one can become a millionaire conveniently.

To Own a Million

Your dream to own a million rupees can become a reality if you make disciplined investment in Reliance Multi-Cap Fund for the long term. For the last 10 years, it has maintained trailing returns of more than 16% while the benchmark and category average have stayed low at 11.26% and 12.44% respectively. Due to volatile trends in the equity market for the last few years, the trailing returns for the short term does not look impressive but are still far better than the peers and index. The fund has the potential to deliver better gains than peers as Mr Bhan has always taken better calls to enhance the long term gains for the investors. For the long term, investors can expect annualised returns between 12-16% and to own a million, one needs to make the following investment.

It can be observed from the table above that the objective to own a million can be achieved in multiple ways if the fund delivers expected returns. The actual returns and wealth gain can be different and can even be more than 16%.

Why to Invest?

You might be wondering that out of a wide variety of mutual funds in India, what makes Reliance Multi-Cap Fund a better choice to achieve the target. The answer lies in the investment style and market conditions. Reliance Multi-Cap Fund can invest across any equity segment and grab the opportunity under any trend. Historically, the dynamic shifting of allocation has also been witnessed. Currently, the large-cap stocks are trading at their higher levels while the mid and small-cap stocks are beaten down. As the large-caps are currently having limited growth opportunities and the small and mid-cap are available at an attractive valuation, the manager is slowly increasing the holdings in the aggressive stocks. Similarly, multi-cap funds take better advantage of equity trends as they have a flexible mandate and can invest dynamically.

Reliance Multi-Cap Fund is a promising scheme for the long term but there exists a moderate risk in the short term and the potential investors must be ready to tolerate trivial fluctuations. The fund can be highly beneficial in the long term and can make you a millionaire with very little effort.

Franklin India Smaller Companies Fund; Is it Time to Focus on Small-Caps?

2019-07-26T07:07:20.761Z

The small-cap segment of the equity market has been going through an extended downtrend for a long term. Due to this, many of the small-cap mutual funds including Franklin India Smaller Companies Fund have been providing depressed returns for a while. However, experts are expecting that the recovery is nearby as the trends in the market are showing signs of a surge in the small-cap category and this can also boost the small-cap mutual funds which are struggling to maintain positive returns for a while. Let’s find out what the experts at MySIPonline suggest on this.

Why Invest in Small-Cap Fund?
Due to continuous under-performance, it is a tough task to invest in small-caps knowing that they haven’t performed well for a long time. Small-cap industries have faced resistance to prosper in the current market condition due to multiple reasons. But the things are likely to change in the upcoming years. The government is taking steps to support the growth in the small and mid-cap segment. We can expect a comeback in the emerging segment in the next few years. Apart from this, the stocks are available at very attractive valuation as they are trading at very low levels. The price to earning ratios of most of the small-cap stocks have turned out to be very attractive and any upward movement is likely to deliver phenomenal returns to the investors. Investment should be continued with discipline at current levels to gain better wealth in the long term.

Investors need to understand that to gain better returns from mutual fund investment, it is essential to continue investing when the NAV is low. If the investment is only done whenever the concerned mutual fund is performing well, it won’t be able to deliver adequate returns.

Why Choose Franklin India Smaller Companies Fund?
Franklin India Smaller Companies Fund has a well-diversified portfolio and the corpus is spread out in a large number of stocks from multiple sectors. This gives enough diversification to the investors and reduces the risk. Small-cap stocks are volatile and their performance can highly fluctuate due to any reason hence selection of stocks is the most difficult task for any small-cap mutual fund. Franklin India Smaller Companies Fund is managed by the professional fund managers at Franklin Templeton Mutual Fund. Currently, Mr Hari Shyamsundar and Mr R Janakiraman handle the portfolio who have decades of experience in the asset management business. Under their management, the fund has delivered outstanding returns in the favourable market trends. The trailing returns for the last 7 years are more than 20%.

Conservative Investors Should Skip Small-Caps
Small-cap funds like Franklin India Smaller Companies Fund have the ability to provide highest returns but these funds cannot resist the volatile trends in the equity market. small-cap funds are considered to be highly volatile in the short term. Investment in such schemes should only be done for the long term. Any investment for less than 7 years must be avoided in small-cap funds.

The current market conditions are anticipating better growth in the small and mid-cap category but we know that nothing is certain in the world of equities. However, investing for the long term in Franklin India Smaller Companies Fund can yield high returns to investors. SIP investments can be less risky than lump-sum investment. To know whether you should invest or not or for any other details regarding Franklin India Smaller Companies Fund, connect with the financial experts at MySIPonline.

Axis Long Term Equity Fund; Why Does Government Allow Tax Deduction on ELSS?

2019-07-25T09:15:53.493Z

Equity Linked Savings Scheme is a branch of mutual funds which is specifically chosen for tax deductions. The government of India allows taxpayers to reduce the tax liability every year by investing in Axis Long Term Equity Fund and other ELSS schemes. But have you ever wondered why does the government allow it? What is the benefit of a nation and government when investment is done in any of the ELSS mutual fund? Let us find out how the investment done in top performing ELSS schemes can be helpful to the country.

The Working of ELSS Mutual Funds

The equity linked savings scheme is a category of mutual fund which delivers long term capital gains to the investors and also allows tax deduction under section 80C. Investors can reduce the tax liability by up to Rs 46,800 every financial year by reducing a maximum of Rs 1.5 lac from the taxable income every year. The investments made in ELSS mutual funds are redirected to pure equity instruments selected by the fund manager to deliver capital appreciation on investment. These funds have a lock-in period of 3 years for every investment and are currently the most productive means of tax saving investment in India.

ELSS reduces tax liability but why? Find out why government allows tax deductions on Axis Long Term Equity Fund.

Why Does Government Gives Tax Benefits?

The government exempts tax liability for every individual in India regardless of the wealth possession and income of individuals. The aim is to increase the participation of individuals in equity market. By choosing the path of mutual funds is the ultimate mean for involvement in equity as the investments of the fund is handled by a professional manager. The government is always focused to encourage long term equity investments and by giving a tax deduction every year, it attracts more number of investors.

Any amount invested in an ELSS scheme goes to the equity of various firms which will eventually gain strength for internal and external economic activity. This enhances the growth of companies which possess better growth potential and better management as the stocks are selected after comprehensive analysis by the fund manager. Any investment made in the equity is eventually contributing towards growth of the nation provided it is done for long term. Due to the same reason ELSS mutual funds have a lock-in period of 3 years. Apart from this, the investment made also allows the investor to gain wealth and by financially strengthening more individuals, the government hopes to build a stronger nation.

Why is Axis Long Term Equity Fund a Better Choice?

Axis Long Term Equity Fund is the most chosen ELSS scheme in India as the fund has always delivered best gains to the investors. It has an impressive track record as the fund manager Mr Jinesh Gopani has always utilised the market conditions to deliver best gains to the investors. The fund holds a gigantic AUM along with the trust of millions of investors. Axis Long Term Equity Fund Growth can be considered as the best ELSS fund in India as it has excelled in almost every respect of comparison. This fund can possibly be the best platform to grab the advantage of tax deduction under section 80C.

By investing in Axis Long Term Equity Fund, you are eventually contributing towards development of the nation and the government is rewarding you for that in terms of tax deduction. The best part is the invested amount gets compounded returns from the best equity instruments and in the long term, one can gain outstanding returns on the invested amount. Due to multiple benefits, Axis Long Term Equity Fund can be the best place to invest if you are a taxpayer. Potential investors must note that it is an equity scheme and can go through temporary downturn but the returns in the long term are impressive. The fund must be chosen according to the risk appetite and investment objective.

Avoid Chit Funds, Invest in Tata Balanced Fund Instead

2019-07-22T05:59:28.599Z

Read the article to know why investing in Tata Balanced Fund is a far better alternative of chit funds.

In the Indian financial system, chit funds have been used on a large scale for more than 100 years. These days, it is a common practice among housewives, friends, relatives, neighbours who also use it as an activity for a get together every month. Chit funds work on a lottery basis but even for the best-case scenario, you can get far better returns if you use a promising mutual fund scheme like Tata Balanced Fund. The working of chit funds may sound decent but if you look at it from an economic point of view, you may never want to use such schemes.

What is the Chit Fund?

For those who are not familiar with chit funds, it is an activity that can be commonly seen in the kitty parties and small get together. A small group of 10-12 people collect a fixed amount from every member every month which is collectively given to one out of them. The winner is selected on the lottery basis and the name of every winner is removed from the next lotteries. In this way, by the end of 12 months, all the 12 members would have received the winning amount. We can understand it better with the help of an example.

For example, there is a group of 10 members and every member contributes Rs 10,000 every month. A lottery is drawn for the first month between 10 members and one out of them will receive the collected Rs 1 lakh. In the next month, the money will be deposited by every member but the name of the winner for the first month will be removed from the lottery. The same will continue for the succeeding months until every member receives the winning amount once.

Why it Should be Avoided?

If you bring in the concept of the time value of money into chit funds then you will realise how this is reducing the buying power of your money. At the end of the complete cycle, each player has contributed a small amount and everyone has received the same amount that has been deposited. There exist no benefits. If we consider the inflation rate which is increasing constantly, there is a loss for everyone involved as the amount of money you still hold is same as the amount that you had one year ago. Meanwhile, inflation played its part and the same amount you had one year ago is slightly less valuable now. Due to the concept of the time value of money, chit funds are a waste of time and money. People involved in it can use multiple alternatives to smartly get benefits from the same amount in the same tenure.

Alternatives of Chit Funds

The best alternative is to use the SIP in a promising mutual fund which can deliver decent capital appreciation without taking higher risk. Tata Balanced Fund can be an ideal scheme for such purpose. As contributing to chit funds will not deliver any return, SIP can be much rewarding and can provide capital gains. The SIP can also be used in a collective way to gain better returns.

Collective SIP

Instead of taking out a lottery for every month. The winning amount can be invested in Tata Balanced Fund every month. After the completion of 1 year, the invested amount, as well as wealth gain, can be distributed among each contributor. In this way, everyone will receive a bit of capital gains.

Win First Gain First

If you want to keep the thrill of the lottery system, chit funds can be used in the traditional way but those who win first can invest the winning amount as a lump sum in Tata Balanced Fund which will yield better gains until the cycle is completed. In this case, the one who wins first will gain the most while the one who wins in the end, won’t get any benefits from chit funds.

Chit fund is a very old practice which was commonly used when there were no banks. However, with advancements in every field and inflation rate surging, it is high time for individuals to identify better opportunities to deal with finances. Wealth management is an extremely important part of life and your financial growth is dependent on how well you handle your finances. Stay woke stay smart & choose the best mutual funds for yourself.

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

2019-07-16T07:33:52.680Z

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.

Can Investing in HDFC Mutual Fund Help Me Achieve My Goals?

2019-07-12T07:06:51.753Z

The mutual fund industry is one of the fastest growing industries in the world. Every year, billions of dollars are poured into this industry across the globe. In India, there are more than 2500 active schemes available in a wide range to accustom the needs of different investors. However, identifying the best funds from the plethora of options available is a real challenge. Most people do not know which schemes they should buy, which ultimately leads to poor investment decisions.

To avoid any weak points, it is always recommended to go with established names such as HDFC Mutual Fund. This fund house is a household name in India, and has hundreds of options to offer to its clients. Let’s see what all does the fund house hold in its womb to offer.

The Preface

HDFC Mutual Fund is one of the largest fund houses in India. It was founded in 1999, and has since served more than 100, 000 clients. It is committed towards providing unmatched investment solutions to the investors, laced with high performance features. The parent organisation of the fund house is Housing Development Finance Corporation, better known as HDFC, and is headquartered in Mumbai.

The Investment Philosophy

Profit for the Investors
Creating value and achieving capital appreciation is the primary objective of HDFC MF. The AMC works for the betterment of the investor community, by identifying the best sources of wealth creation and applying the invested capital for long-term. The target areas are selected on the basis of a tight scrutiny, where the likely profitability is analysed and only then an investment is initiated.
Research & Analysis
The market is an ever-changing place. And to ensure that the investments plough maximum yield, constant change is imperative. HDFC Mutual Funds has its own research and development team which is constantly working on designing advanced products accustomed to the market changes. There is a constant monitoring of the schemes by the fund managers, who are vested with the task of taking corrective actions, whenever required, and keep the schemes functional under all market conditions.
Controlled Risk Exposure
For an investment to be fruitful, it is essential that it is not exposed to unusually high degrees of risks. If the risk factor is not properly handled, your investments can get hurt and the wealth creation process will be put on hold. To avoid such a scenario, the fund managers of HDFC Mutual Funds in India constantly modify the internal construction of the portfolio, so that the funds never succumb to the high risks and keep reaping high returns from the market.

The Types of Products Available

The population of mutual fund investors is very diverse. Investors can be aggressive and conservative, which makes it even more important to release schemes in a diverse range. In order to cater to the discrete needs of the investors, HDFC Mutual Fund provides schemes in a very diverse range. Let’s take a look at the variety of options available at this fund house: -

Equity – These funds are the favourite choice of aggressive investors. They are known for their aggressive persona and the quality of reaping high returns from the market. A top-performing equity fund can give out results as high as 35%, and thus, accelerate the wealth creation process.
Debt – For those who do not like aggressive investing, debt funds are the perfect choice. They are more mature than equity funds and carry a lower risk quotient. The underlying portfolio is usually built with short-term, low risk debt options that are perfect for short to medium range investments.
Hybrid Funds – If you can’t really figure out which kind of investor you are, then hybrid funds shall be your first choice. These funds are a blend of equity and debt instruments, which makes the investment both aggressive and defensive at the same time. There will be good earnings from these funds, without heavy exposure to risks.

Thus, the above write-up makes it clear that investing in HDFC Mutual Fund is a perfect way to make goal-oriented investments. Sink in yourself a bit and find out which kind of funds will suit you. Happy investing!

Read this article to get a first-hand information on HDFC MF.

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

2019-07-11T05:49:28.924Z

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: -

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.
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!

HDFC Balanced Advantage Fund – The Secret Ingredient of a Healthy Plan

2019-07-10T09:59:11.576Z

The pathology report is regarded as the mirror of a person’s health. With the help of this report, a person can literally have an in-depth scan of his internal organs and find out the problems, if any. Similarly, the mutual fund portfolio acts as a pathological report for a person’s financial plan. If studied closely, the portfolio can reveal the strengths and weakness of the plan, thus helping to take corrective measures, if required.

To create a strong portfolio that works in your favour, you need to add funds such as HDFC Balanced Advantage Fund to it. It is a powerful combination of growth and wealth creation that can take your investment game plan to a whole new level.

Let’s learn some intriguing facts about this fund, which are penned down in this article.

A Preface to HDFC Balanced Advantage Fund

HDFC Balanced Advantage Fund – Regular Plan (G), erstwhile HDFC Prudence Fund, is basically a hybrid equity fund that is primarily engaged in wealth building and capital appreciation. It is a giant fund with an estimated net worth of ₹42, 592 crore (as on 31st May 2019), which took over HDFC Growth Fund – one of the top-performing schemes of HDFC Mutual Fund. Owning such a huge asset base has crowned the fund as one of the wealthiest, most powerful fund in the Indian investing regime. Thus, an investment here will surely open doors for rapid wealth creation for the investors.

The Investment Philosophy

Although there are many factors that govern the success of a mutual fund, but the investment philosophy is paramount. This involves the section of stocks, the industries to which they belong, and also the timely curation of the portfolio to align it with the latest market advancements. Hence, in order to be sure that the fund that you have selected possesses all these merits, it’s important to give a close study to the portfolio.
HDFC Balanced Advantage Fund – Regular Plan (G) follows a unique style of investing. It has a dynamic portfolio assorted with different kinds of stocks, which makes it an even more fertile option for wealth building. Let’s check out the current portfolio standings of the fund: -

There are both equity and debt instruments present in the portfolio. While the former adds energy to it, the latter takes care of the risk cover from the market volatility.
The portfolio is equity-oriented, since 83.03% of the assets are in equity and related instruments.
For the sake of diversification, investment has been made in multiple industries which includes big players of the market, such as Financial & Banking sector, Energy sector, Technology sector, Construction sector, and Chemicals sector.
The portfolio is confined within 67 stocks, which range from small to large cap stocks. The top 10 holding – which includes companies like State Bank of India, ICICI Bank, Infosys, Larsen & Toubro, and Reliance Industries – hold 54.06% of the assets of the fund.
The companies mentioned above have P/E ratios in a wide range that stretches from 8.86 times to a whopping 142.10 times. However, thanks to the fine fund management team of HDFC Balanced Advantage Fund, the average P/E ratio of the fund is kept at a low level of 15.74 times.

The Impact of the Portfolio on the Performance

Like the way our diet greatly impacts our body, the portfolio of a fund impacts its performance. Since HDFC Balanced Advantage Fund (G) carries a diverse portfolio in its belly, the resulting numbers are quite appealing. In the last five years, the fund’s performance stood at an average of 10.21%, whereas the average since inception was noted at 18.61%. This is a phenomenal streak of performance, which testifies that this fund will perfectly sit in a high performing portfolio geared towards high wealth building and steady income generation.

Hence, if you are aspiring to create a mutual fund plan for your future goals, then you must add HDFC Balanced Advantage Fund in your plan. Its dynamic portfolio will help you to reach at your desired goals in an efficient manner.

Read out the essentials of HDFC Balanced Advantage Fund (Growth) which are described in this article.

How TATA Retirement Savings Fund can Secure Your Post-Work Life?

2019-07-09T06:07:01.213Z

This article discusses some major highlights about TATA Retirement Savings Fund. Investors can opt for this fund and start saving good money to be used in their retirement period.

Everybody wants to live a comfortable life. People literally burn their youngest, prettiest years to build wealth for their future. But not many people think about the life that follows after they might quit working. We are talking about the retirement period. Yes, people do a lot of hard work, but that suffices only till their hands are working. So, what should they do to make their retirement period more comfortable?

There are many “schemes” out there that claim to make your post-work life a charmer. But beware that there is nothing as good as TATA Retirement Savings Fund. This plan is specially tailored for the purpose of fulfilling the retirement goals, and help people to live a comfortable life even when they are not actively working.

A Brief Insight into the Fund

TATA Retirement Savings Fund – Regular Plan (G) is an open-ended, equity mutual fund. It belongs to the aggressive hybrid category, which means that the underlying portfolio comprises of both the equity and the debt instruments. This fund has been specially designed to let people save for their retirement period and achieve their long term goals. Started in 2011, it is one of the best options available to cater to the retirement needs of an investor.

The Salient Features

• The Pricing

Before investing in a fund, it is important to have a basic idea about the cost of investment. This will help you to set a budget and proceed accordingly with your investments. A unit of TATA Retirement Savings Fund (G) was selling at ₹30.2218 on 1st July 2019. This value was achieved after the fund witnessed and escalation of 0.53% in the value of its net assets. Since, this price sits in an affordable range, you should proceed with an investment at the earliest.

• The Wealth

Having a huge asset base is a boon for not only the fund but also for the investors. If a fund dwells a big asset pool, then the chances for further expansion multiply. TATA Retirement Savings Fund (Growth) dwells a decent AUM of ₹1,101 crore, which was last noted on 31st May 2019. With an increased number of investors wanting to save for their future, an investment in the fund has increased massively in the last 3 years. Hence, it is expected that the asset size of the fund will increase by manifold in the coming years.

• The Fund Management

The fund management is a key attraction of TATA Retirement Savings Fund. The fund managers recruited by the fund hold good experience in asset allocation and portfolio management. This provides a sense of trust that the investors’ money will not be misused and will be placed in promising ventures.

The Advantages

• High Yield

When you are planning to save for your retirement, you’d obviously want a decent regular income till maturity. And, by investing in TATA Retirement Savings Fund (Growth), you can achieve a regular pay. The past performance of the fund was superb, which testifies that an investment in this fund is going to be very profitable. The past five year yield was averaged at 14.08%, while the returns earned by the fund since inception have a rough average of 15.51%.

• Disciplined Investing

One of the main things to remember while making value based investment is to give proper time to your funds to grow. Many people make the mistake of redeeming their funds at an early stage, which not only hurts their investment value but also sabotages the chance of a higher income. Under TATA Retirement Savings Fund (G), you will be required to make investments for at least a period of 5 years. This is because any redemption made within this period can attract exit load of 1%, which will shrink the value of your investments.

These were some of the major highlights of TATA Retirement Savings Fund (Growth). This fund is highly recommended for those who are looking forward to secure their retirement and live comfortably in their post-work life.

New Managers Appointed for Reliance Vision Fund; Can We Expect a Comeback?

2019-07-06T05:13:05.030Z

Read the article to know whether Reliance Vision Fund can make a comeback or not along with valid reasons.

Reliance Vision Fund is one of the oldest schemes of Reliance Mutual Fund which has a glorious past of providing phenomenal returns to the investors. The historic top performing large and mid fund has been facing controversies in the last few years and questions have been raised upon the management staff due to lower returns. After giving enough opportunity to fund manager Mr Ashwani Kumar for rectifying the performance stats, the AMC decided to appoint new managers for the scheme in May 2019. The decision has been welcomed by the investors and experts and improvements in the performance can already be witnessed.

Why Reliance Vision Fund was Unable to Perform Well?

Reliance Vision Fund follows the mandate of large and mid-cap mutual fund and the ex fund manager Mr Ashwani Kumar included aggressive mid-cap stocks in the portfolio. A blend of growth and value investment style was followed and the growth-oriented stocks were targeted at attractive valuations. The mid-cap stocks have failed to deliver the expected gains in the last few years and the large-cap stocks selected by the manager were unable to balance the returns of Reliance Vision Fund. The fund has an impressive history of delivering exponential returns, but the trailing returns for the last 1, 3, 5, and 10 years are below the category average and benchmark. The ratings of the fund have been dropped to 1 star by every rating agency and investors have been avoiding the scheme for the last few years. Many investors have deserted away from the scheme to switch to a better performing fund while a few are still invested in hope of a comeback.

Expectations From New Managers

After giving enough opportunities to ameliorate the performance stats, Reliance Mutual Fund decided to change the manager in May 2019. Mr Ashwani Kumar has been replaced by the duo of Ms Meenakshi Dawar and Mr Sanjay Doshi. Reliance Mutual Fund, as well as investors of Reliance Vision Fund, have high hopes from the newly appointed managers. However it is not easy to mitigate the beaten down returns of long term but within 2 months after appointment, the rankings of the returns can already be seen to improve. It may be too early to judge the performance of newly appointed fund managers but the stats have been improvising due to change in the investment style and strategy. If things go similarly for the next 1-2 years, we can expect the fund to regain the ratings it had in the past.

Both the fund managers are highly talented and have impressive records for asset management. Ms Meenakshi Dawar is a B.Tech from IGIT New Delhi and PGDM from IIM Ahmedabad. She was previously associated with IDFC Mutual Fund and is highly experienced in handling equity investments. Mr Sanjay Doshi has more than 11 years of experience in the capital market and worked with various financial firms. He is ACA, MBA, and CFA.

What did They Change the Investment Strategy?

After getting appointed, the fund managers increased the proportion of holdings in large-cap stocks as the current market conditions have been favouring the market leaders. In terms of sectoral allocation, holdings in the financial and technology sectors have been reduced while the construction and engineering companies have witnessed an increase in the holdings. Bharat Electronics and Reliance Industries are the new entrants in the portfolio due to strong growth potential.

Can We Expect a Comeback?

The fund managers are highly experienced and the portfolios managed by them previously have delivered impressive returns. They make better calls according to the market trends and investment objective and in the near future, investors can expect correction as the returns have been gaining momentum in the last 2 months. The long term deprived performance cannot be rectified in the short term but for the new investors, this can be the right time to start an investment as the fund is getting back on track.

Whenever the stock selection range is wide, the strategies and abilities of the fund manager play a vital role in shaping the outcome from the scheme. As Reliance Vision Fund can have any stock in the portfolio from the top 250 stocks traded on Indian stock exchange, the stock selection strategy of the fund manager is majorly responsible for performance. The strategies of Mr Ashwani Kumar were not helping out the investors but the new fund managers can bring Reliance Vision Fund back on the top performers' chart in the Indian mutual fund industry.