Prajna Capital |
- HSBC Tax Saver Equity Fund
- What are the investment options available under Section 80C?
- UTI Opportunities Fund
| Posted: 13 Oct 2012 02:18 AM PDT Download Tax Saving Mutual Fund Application Forms Tax-saving funds (also referred to as Equity Linked Savings Schemes - ELSS) are well suited for investors willing to take risk. However, at the same time it also provides an opportunity to create wealth in one's tax-saving portfolio. Moreover, the lock-in period of 3 Years encourages long-term investing, which is a pre-requisite for fruitful return on equity investments. A well managed tax-saving fund can serve a dual purpose i.e. provide tax benefits (under Section 80C of the Income Tax Act, 1961) and assist investors' to accumulate wealth over the long-term. But to do so, the key lies in selecting a well-managed tax-saving fund with a long term horizon.
Investment Objective and Proposition
The fund's primary investment objective is "to provide long term capital appreciation by investing in a diversified portfolio of equity & equity related instruments of companies across various sectors and industries, with no capitalization bias. The Fund may also invest in fixed income securities."
Equity Portfolio
As indicated by the table above, HTSEF Top-10 equity portfolio constitutes only of 'A' group stocks. As on December 31, 2011 the fund held in all 33 stocks in portfolio out of which 'A' group stocks accounted for 90.9% and the rest 9.1% were the 'B' group ones. Top-10 stocks comprised of 48.3% of the portfolio while top-5 sector concentration stood at 43.6%.
· The fundamentals of the business
· The industry structure
· The quality of management
· Corporate governance trends
· Sensitivity to economic factors
· Key earning drivers
· The financial strength of the company
Moreover, while selecting stocks from various sectors the fund is watchful of business cycles, competitive advantage and regulatory framework among others.
How HTSEF has fared vis-à-vis its peers
The table above reveals that HTSEF has been an average performer, in the category. Over a 3-Yr time frame the fund, has clocked returns of 24.0% CAGR, but as seen above the returns are lower than the return of 25.7% CAGR clocked by its benchmark BSE-200 during the same time frame.
Fund Manager Profile
Performance of HSBC Tax Saver Equity Fund looks appealing on standalone basis however when compared with its category peers the same looks average. Having said this, thrust on large caps and lower portfolio churning makes it less risky than its peers. We believe that those investors who have invested in HTSEF may remain invested. However any fresh exposure should be avoided. One may prefer better performing funds with a proven track record.
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| What are the investment options available under Section 80C? Posted: 12 Oct 2012 09:17 AM PDT Download Tax Saving Mutual Fund Application Forms a. Life Insurance Premiums b. Contributions to Employees Provident Fund (EPF) c. Public Provident Fund (PPF) d. National Savings Certificates (NSC) e. Unit Linked Insurance Plan (ULIP) f. Repayment of Housing Loan (Principal) g. Equity Linked Savings Scheme (ELSS) of Mutual Funds h. Fixed Deposit (FD) with Banks having a lock-in period of five years i. Pension Funds Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online
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| Posted: 12 Oct 2012 08:38 AM PDT Download Mutual Fund Application Forms Opportunities funds, as the name suggests, invest in stocks of companies across market cap segments (i.e. large cap, mid cap, small cap) and across sectors. Due to their fluid investment style, these funds stand a better chance, of benefiting from attractive investment opportunities in various market cap segments as well as sectors. In practice, this depends mainly on the fund manager's expertise in identifying and tapping on investment opportunities well before others. A well-managed opportunities fund can add significant value to an investor's portfolio over the long-term. UTI Opportunities Fund (UOF) is one such open-ended diversified equity fund from the stable of UTI Mutual Fund, which follows a fluid style of investing. UOF is primarily mandated to invest in equities and equity-related securities of Indian companies along with debt and money market instruments. Launched in July 2005, the fund has completed a little over 6 years of existence now. The fund's primary investment objective is "to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equity-related instruments. The main focus of this scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change." The fund is mandated to invest 90% - 100% of its total assets in equity and equity-related instruments, and the rest (upto 10%) in domestic debt and money market instruments, to manage its liquidity requirements and as defensive stance. Over the past one year, taking a view of the markets and opportunities therein, UOF has skewed its portfolio largely towards the large cap segment (64% - 74%), thus attempting to be defensive in its stance, in a scenario where markets have been turbulent but valuation wise they have seemed attractive. In the mid and small cap segment on the other hand the fund has taken a much lesser exposure ranging from 17% - 25%, thus refraining from going aggressive while citing opportunities therein. But a noteworthy point is that in both – large cap as well as mid & small cap segment the fund has held been consistent in its holding. The fund's exposure to debt and cash over the past one year has not been more than 12% which indicates its tilt towards staying invested in equities, and abstinence from taking aggressive cash calls as well.
Equity Portfolio
As indicated by the table above, UOF's top-10 equity portfolio constitutes only of 'A' group stocks. Even its latest portfolio (which has 39 stocks in total) discloses the dominance (89.7%) of the 'A' group ones, while holding 'B' group ones have diminutive composition of 7.7% of its portfolio. It also has a petite exposure to a 'Z' group stock.
How UOF has fared vis-à-vis its peers
The table above reveals that across time frames, UOF's performance is quite inspiring, where over a 3-Yr and 5-Yr time frame the fund has clocked appealing returns of 29.9% CAGR and 12.9% CAGR respectively in the peer group. Such a performance reveals UOF has been successful in citing attractive investment opportunities for its portfolio, which has thus rewarded its investors.
Fund Manager Profile
UTI Opportunities Fund has been successful in citing attractive investment opportunities for its portfolio, which has thus rewarded its investors. The inspiring risk-adjusted returns generated by the fund without indulging in aggressive in portfolio churning, encourage us to advise you to hold onto your investments in this fund.
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Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Fund Application Forms
Best Performing Mutual Funds
Invest in Tax Saving Mutual Funds Download Any Application Forms Buy Mutual Funds Online Invest Online Buy Gold Mutual Funds Invest Now  |
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