Prajna Capital |
- SBI Magnum Global Fund
- Mirae Asset India Opportunities Fund
- Government plans ordinance to curb chit-fund ponzi scams
| Posted: 19 Jul 2013 07:04 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
If you have been associated with the world of mutual funds for more than a decade, chances are that you would have had some tryst with SBI Magnum Global, the star performer of the early and mid 2000s. Like quite a few other funds launched in the 1990s, this fund too had its hey days, under the tutelage of then ace fund manager Sandip Sabharwal, but fell by the wayside in its success journey.
But the fund is now on a redeeming act, after R Srinivasan, the fund manager of the now popular Magnum Emerging Businesses fund, took over the helm in 2009. While its return of 6.3% annually in the last 3 years may not per se look good, that's comfortably higher than category average return of just 0.6% a year. It is also far superior to the -4.2 per cent return annually of its benchmark CNX Midcap.
SBI Magnum Global holds a portfolio of domestic stocks with a predominantly mid-cap bias. It cannot strictly be said that the fund has a mandate of investing in mid-cap stocks; as even up to 2003, the fund had a good dose of large caps. But since then, its consistently high exposure to the mid-cap market segment has led to the scheme being stamped as a mid-cap fund.
Suitability
You may also wonder how this fund is different from its sister from the same stable, SBI Emerging Businesses. The latter is a more aggressive mid and small-cap fund with more concentrated bets on stocks. That means it sports a higher risk-return profile when compared with Magnum Global.
Performance
Over a 5-year SIP period, the fund delivered 8.6% annually, compared with 8% for HDFC Mid-Cap Opportunities and 8.4% for IDFC Premier Equity. This, of course, suggests that the fund's NAV provides enough opportunities to averages costs quite well. That happens only when its NAV is much more volatile than the peers. So Magnum Global can be good candidate for investing through SIP.
On a rolling one-year return basis between 2010 and 2013, the fund beat its benchmark 88% of the times, suggesting reasonable consistency.
More recently, in 2011 as well as on a year-to-date basis, the fund has stayed remarkably stable amidst heavy volatility in the mid-cap space. It fell 14% in 2011 as against category average of 25%. In 2013, thus far, it lost just 6.4% as against 13.4% by peers. Magnum Emerging Businesses lost 15% over the same period. Clearly, the latter is the more aggressive one, going by portfolio and performance.
Portfolio
It is because of its more diversified and less concentrated approach, that SBI Magnum Global may fall less in downturns compared with its sister fund. That said, this can also cap the kind of gains that the sister fund may enjoy.
The sector choices between the 2 funds are also vastly different. Sectors such as industrial manufacturing are hardly present in SBI Emerging Businesses while it was among the top 3 sectors held by SBI Magnum Global as of May. Right now, Magnum Global holds a good number of 'growth stocks' but some of which look like 'value' in a down market.
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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| Mirae Asset India Opportunities Fund Posted: 19 Jul 2013 04:41 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Seeking opportunity with measured risk
Mirae Asset India Opportunities (Mirae opportunities) is a good diversifier for investors seeking market opportunities without taking on undue risks. With a return of 10.5 per cent in the last three years, the fund comfortably beat its benchmark BSE 200 return of 3.4 per cent. While the fund seeks to tap opportunities across market capitalization segments, it has largely stuck to large-cap stocks. It is for this reason its risk profile will seem altered compared with other 'opportunity' funds.
Suitability
Mirae Opportunities is suitable for investors whose risk appetite is not high. You may consider the fund to be one notch higher than large-cap funds in terms of its risk-return profile and lower than other opportunity funds like Reliance Equity Opportunities. UTI Opportunities too, in recent times, sports a more large-cap biased portfolio.
That said, Mirae Opportunities still has a less-than-five-year record, having been launched only in March 2008. It may not have witnessed the full magnitude of the 2008 fall as it held 15-20 per cent in cash in the initial months after launch. Also, it has not tested spectacular rallies like the one in 2006-07. Still, its robust return in 2009 and ability to contain declines in 2011 speak for the fund. While the fund need not be your core holding, you can consider limited exposure of less than 10 per cent of your holdings in the scheme. Opt for growth plan and invest through SIPs with at least a three-year perspective.
Performance
Mirae's one-year returns, calculated every day (on a rolling basis) since its launch suggests that the fund beat its benchmark 100 per cent of the times. That is a sound record. Also, its average one-year returns based on rolling it daily is 27 per cent, as against 6 per cent by BSE 200. This record means that the fund can generate benchmark-beating returns irrespective of when you invest. Over the last three years, Mirae beat most opportunity funds except Reliance Equity Opportunities.
The latter's three-year returns was 6 percentage points higher. Higher exposure to mid and small-cap stocks by Reliance is the primary reason. Reliance holds less than half of its assets in large-cap stocks of over Rs 10,000 crore market cap as against Mirae's holding of 75 per cent. Mirae kept pace with UTI Opportunities over a three-year period, what with UTI too, turning to large-cap stocks. In fact, Mirae managed to beat UTI Opportunities in the 2009 and 2010 rally, suggesting that Mirae has a higher correlation with market movements compared with UTI Opportunities. Simply put, it may deliver more in rallies compared with UTI. In a fall (such as the one in 2011) though, while it did exceedingly well in containing declines, UTI did a better job. Portfolio
Mirae has a fairly diversified portfolio and holds about 55 stocks on most occasions. It seldom moves to cash and tries to stay fully invested in equities (at around 94-96 per cent).
Over the last one year, the fund stocked up on banking scrips, some of which delivered well and reduced stakes in FMCGs. But it increased exposure to another defensive sector, pharma. Software sector was also pruned, while auto and auto ancillaries were increased. While the usual suspects such as ICICI Bank, HDFC Bank and ITC returned well, other interesting picks such as Titan Industries and Zee Entertainment Enterprises also propped performance.
The fund is managed by Neelesh Surana and Gopal Agrawal. Its asset size has steadily grown and now stands at Rs 257 crore.
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 )
------------------ Best Performing Mutual Funds
|
| Government plans ordinance to curb chit-fund ponzi scams Posted: 19 Jul 2013 12:03 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
The Cabinet will also discuss proposed amendments to the Sebi Act and Securities Law & Depository Act in this meeting. Sources say companies, which have collected over Rs 100 crore for CIS, to come under SEBI Act.
The market regulator is likely to get power to question non-securities institutions. It will also be able to share information with overseas agencies. The move will enable Sebi to give disgorgement orders.
Sources say disgorgement proceeds will be used to compensative investors. Moreover, Sebi will not be required to get a magistrate's prior nod for future probes.
Also on the agenda of the Cabinet meet is the extension of validity of Mumbai Railway Vikas Corp. It will also consider the cadre review of central labour service and refund of National Pension Scheme (NPS) corpus with inadequate pension wealth.
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 )
------------------ Best Performing Mutual Funds
|
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