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| Successful Mutual Fund investing Posted: 12 Nov 2012 01:56 AM PST Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Despite being one of the most versatile investment options for investors with varied risk profile, time horizon, needs and goals, mutual funds (MFs) have not been able earn their rightful place in the investment universe. While every investor hopes all the funds in his portfolio to do well at all times, in reality, the performance of some may slip for different reasons. Apart from a natural phenomenon called volatility, the portfolio performance may also get adversely impacted by wrong selection of funds, ignoring nonperformance, redeeming funds in a hurry and following illogical strategies. Here's how you can get better results from your MF investments:
Invest in quality funds
If you choose a good quality fund, your investment is likely to appreciate steadily over time, overcoming most temporary setbacks. Besides, your MF portfolio should always be aligned with your risk profile by ensuring the right balance in terms of exposure to different market segments, that is, large-cap, mid-cap and small-cap.
Despite taking all precautions you may still have to face erratic performance. However, if the fund falls in line with its benchmark index as well as its peer group, it should not be much cause for concern. Remember, a good quality portfolio always makes a comeback.
Ensure the right balance between risk and reward
Tracking performance of your portfolio on a regular basis, is essential to ensure success. Ideally, to analyse performance, you must consider returns as well as the risks taken to achieve those returns.
Therefore, the questions you need to address are how much risk did the fund manger subject you to and did he give you an adequate reward for taking that risk. If the portfolio composition of a fund takes you beyond your defined risk-taking capacity, don't hesitate to get rid of such a fund.
Follow a strategy to sell your funds While there is no set formula for determining the perfect time to sell a mutual fund investment, or for that matter any investment, it pays to have a strategy in place to make selling decisions. Here are some of the guidelines:
You may consider selling a fund when your investment plan calls for a sale rather than doing so for emotional reasons.
You may consider exiting from a fund if its performance has seriously lagged its peers for a period of one year or so.
You may consider selling a fund when it no longer meets your needs. If you have done a good job of selecting the fund initially, this will only be the case if the fund changes its objective or investment style, or if your needs change.
Avoid investing in a fund just before the dividend is paid
Many investors believe investing in an equity fund just before the dividend payment is a smart strategy. If you are one of those, think again. When you invest in a fund just before the dividend payment, you receive a part of your own capital back as dividend. Besides, by keeping your focus on dividend, you may end up investing in a fund that doesn't merit an investment. Remember, dividend payment is an ongoing process of distributing gains to its unit holders and only those who remain in the fund for a considerable period benefit from it in the real sense. Therefore, to invest in a fund where the immediate dividend payment is the main attraction is not a smart strategy after all. The right way to invest is to carefully select funds based on the quality of portfolio, consistency in performance and suitability of the fund according to your asset allocation
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--------------------------------------------- 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
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| Posted: 12 Nov 2012 12:50 AM PST Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)
Payout from DSP BlackRock MF DSP BlackRock Mutual Fund has announced dividend under the dividend payout option of DSP BlackRock FMP series 14-12M. The quantum of dividend will be the entire distributable surplus.
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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) 1.ICICI Prudential Tax PlanInvest Online 2.HDFC TaxSaver Invest Online 3.DSP BlackRock Tax Saver Fund Invest Online 4.Reliance Tax Saver (ELSS) Fund Invest Online 5.Birla Sun Life Tax Relief '96 Invest Online 6.IDFC Tax Advantage (ELSS) Fund Invest Online 7.SBI Magnum Tax Gain Scheme 1993 Invest Online 8.Sundaram Tax Saver Invest Online Best Performing Mutual Funds
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| Principal Emerging Bluechip Fund Posted: 11 Nov 2012 09:41 PM PST Call 0 94 8300 8300 (India)
Mid cap stocks are the companies which fall below the large caps but above the smaller companies in the market capitalisation pyramid. These are the companies which are not as established as the large cap ones. But unlike mature large caps, such companies tend to have a higher growth potential. They are often less researched and hence, more often, available at a discount to the large caps. However, these companies are well established as compared to smaller companies and have the greater reach and revenues. Investment in mid-caps can be rewarding over a longer term, as these companies need considerable time to grow in size. Though midcaps are often referred as the future large caps; very few companies actually manage to zoom past the competitors. These companies are not as stable as the large sized companies and tend to show fluctuations in profits and at times struggle to sustain when the going gets tougher. For this reason, investment in mid-caps is considered risky but it could be well rewarding too.
Equity Portfolio
As far as the portfolio is concerned, while investing predominantly in the mid and small cap domain, PEBF follows a bottom-up approach. Moreover, the fund does not refrain itself from investing in Initial Public Offerings (IPOs) which would constitute a part of the CNX Midcap Index. As a defensive consideration the fund also invests a moderate (upto 30%) portion of its total assets in the large cap space.
How PEBF has fared vis-Ã -vis its peers
The table above reveals that so far the performance of PEBF has been quite luring. Over a 3-Yr time frame, the fund has clocked a return of 27.6% CAGR, thereby outperforming its benchmark by a substantial margin.
Fund Manager Profile
As seen above Principal Emerging Bluechip Fund has been able generate luring returns by exposing its investors to average risk, thus resulting in it achieving a satisfying risk-adjusted return. Hence we think those investors who already have exposure to this fund can continue to hold the same. However it is noteworthy that decision of investing in a particular fund should not be taken only based on its 1 or 3 year performance. One should instead prefer the fund which shows consistency across market phases and qualifies based on other performance parameters too.
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
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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