Prajna Capital |
| Posted: 22 Jul 2013 04:02 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) UTI Mastershare
UTI Mastershare Unit Scheme (UTI Mastershare) is certainly not one of the top performing funds in the large-cap diversified equity category. Yet, the fund has been a consistent performer if you consider a 10-year period. Its most noteworthy feature is that it declared dividends every year in the past 26 years, post its launch in late '86. The fund's return of 19% since inception is evidence to its long-term steady performance. Suitability
The fund is only suitable for investors who are looking for limited risk and more importantly would like to get some steady returns from their fund by way of dividends. While the dividend payout strategy will not help build long-term wealth, such a strategy is for investors who do not like to leave their money on the equity table and prefer to sweep some money off every year.
Performance
Simply put, that UTI Mastershare stays away from the mid- and small-cap segment has meant that its returns are capped to a good extent, when compared with its benchmark. The Sensex or the Nifty may be a better reference point when comparing this fund's performance. Still, in the last 5 years, UTI Mastershare beat its benchmark 73% of the times on a rolling one-year return basis. While this is not outstanding performance, it is still noteworthy. The fund contained declines better than its benchmark in down markets and in markets that lacked direction (like 2010). It also beat the category average return over three and five-year periods. The most noteworthy feature of the fund is its ability to declare dividends in all market phases. In bull markets such as 2007, it neatly timed dividends a few months ahead of the peak. In down markets such as 2008 too, its dividends, albeit low, served as a good confidence booster for its investors.
Portfolio
In terms of stock picks, the fund made some smart moves in recent times, picking beaten stocks such as IDFC and Adani Port & Special Economic Zone. This helped make some quick gains. That said, overall portfolio turnover remained low over the course of the year with the fund adopting a buy and hold approach in many of the stocks.
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
|
| Posted: 22 Jul 2013 12:35 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Are you looking to add some equity funds to your portfolio? If you already hold a basket of well-diversified funds, then Religare Mid N Small Cap fund can be a good addition to provide some returns kicker to your portfolio. With a return of 17 per cent compounded annually over the last three years, this mid and small-cap focused fund convincingly beat its benchmark CNX Midcap's performance of 5.3 per cent. Its rather offbeat portfolio of both mid and small-cap stocks can provide you with exposure to the lesser known stocks in the smaller market-cap segment in the market.
Suitability
Religare Mid N Small Cap fund cannot be your core holding. Its limited track record (launched in March 2008) and small asset size adds to its risk. You can at best hold this fund as a diversifier and limit exposure to 5-10 per cent of your portfolio. Invest through the systematic investment plan route to avoid the risk of ill-timing the market. A 3-5 year perspective can help average costs well and earn optimal returns.
Performance
Religare Mid N Small Cap delivered 10.3 per cent annually since its launch in March 2008. The returns may not seem extraordinary; but is still higher than its benchmark return of 6.1 per cent and the equity category average of 6.5 per cent.
Its return since inception could have been even better had the fund stayed fully invested in equities in the rally following the March 2009 lows. It had a fifth of its assets in debt and cash then. Still, by 2010, the fund found its feet well in the markets. It managed 35 per cent that year, well above the equity category average of 20 per cent.
In the volatile year of 2011 too, it fell 7 percentage points lower than the category, what with some offbeat picks that did not have high correlation with the market as well as defensive FMCG stocks. Religare Mid N Small Cap fund scores well on the risk front too. Its risk-adjusted returns, measured by the sharpe ratio, is as good as its larger peer IDFC Premier Equity over a three-year period. But HDFC Mid-Cap Opportunities still remains a notch better.
The fund has also been a consistent performer, beating its benchmark, three-fifths of the time in the last three years.
Portfolio
Like most other funds, banking and financial sector remains Religare Mid N Small Cap's top pick. While the sector was not an outperformer last year, the fund's picks such as City Union Bank, ING Vysya Bank and Federal bank managed decent gains. In the sector holding chart given, chemicals, hotels, consumer durable and trading fall in the 'other 50 per cent' category.
Some of its other offbeat picks that delivered well include Tree House Education and Accessories, Eros International Media and Kaveri Seed Company. The last-mentioned stock trebled in price in the past year.
The fund is managed by Vinay Paharia. The fund house has stated that there will be no change in the fund management team as a result of a recent investment it received from a U.S company.
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
|
| Posted: 21 Jul 2013 09:51 PM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Franklin Build India
If you are tired of watching the off-putting performance of infrastructure funds, then Franklin Build India may be one to provide you with some hope. While this multi-thematic fund's three-year performance remains uninspiring, the fund has made itself conspicuous in the last one year, beating the broad equity market. The fund managed 17.7% in the last one year.
This is not only better than its benchmark CNX 500 by 5 percentage points but is far superior to the diversified fund category average of 9.5%. Other infrastructure funds managed an average 3%.
Investors who already have exposure to this fund can continue to hold it. If the India growth story were to find traction even a year later, this fund could be among the early beneficiaries, given its exposure to key themes, without taking excessive exposure to specific sectors.
Investors can watch its performance over the next 2-4 quarters before considering any fresh exposure. We have a hold call on this fund at present.
The fund
You might think that's pretty much what a diversified fund would invest in. That's true to an extent. In fact, the fund has classified itself as a diversified fund and set itself a broad index – CNX 500 as its benchmark. We would also prefer not to compare the fund merely with other infrastructure funds, given its wider universe.
While it may not be wrong to say this fund's universe is rather diversified, you are unlikely to see this fund take very high exposure to software, consumer themes or those that piggyback on the consumption story. Also, it is likely that this kind of fund would have more intense exposure to infrastructure, energy, engineering or cement sectors than pure diversified funds.
On the other hand, while financial services exposure will be its key theme, it may not go over-board on this theme, the way most diversified funds do.
In all, you might want to see this fund as much more than a regular infrastructure fund but short of being called a fully diversified equity fund. It other words, it will play multiple themes.
Performance
Interestingly, the fund did a good job of containing declines thus far in 2013, falling only 2.7%. This, despite a third of its assets being held in mid- and small-cap stocks of less than Rs 10,000 crore market capitalization. As a result, its one year return now looks better than many top diversified funds.
While these signs of improvement are encouraging, the fund's three-year record, like most infrastructure theme funds, remains lack luster. Its rolling one-year return since its launch in September 2009 suggests that it beat its benchmark 67% of the times. While that record is decent, it is not sufficient to prove consistency in performance.
Portfolio
While stocks such as JK Lakshmi Cement and MindTree doubled over the course of the last one year, others such as Idea Cellular, Bayer Crop Science and Federal Bank also put up a strong performance and boosted portfolio returns. But stocks such as Amara Raja Batteries or Petronet LNG, failed to impress.
If you see equity markets ticking steadily upward, that would be the time to watch how this fund picks up. That would also be a good time for the fund to build itself a track record.
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
|
| You are subscribed to email updates from Prajna Capital - An Investment Guide To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment