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| HDFC Mid-Cap Opportunities Fund Posted: 25 Jul 2013 07:08 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) HDFC MidCap Fund If you are looking for mid-cap exposure but with limited volatility, you can consider phased investments in units of HDFC Mid-Cap Opportunities. With a return of 14 per cent compounded annually in the last three years, the fund is neck-to-neck with established peers such as IDFC Premier Equity.
Suitability
Performance
At 20 per cent annually (IRR), the fund's SIP returns over the last five years is about the same as IDFC Premier Equity and is marginally higher than others such as DSP BR Small and Midcap and Religare Midcap. But it is worth noting that the HDFC MI-Cap Opportunities' SIP return is lower than the 27 per cent managed by SBI Magnum Emerging Businesses over this period.
Portfolio
In 2011 for instance, when funds such as IDFC Premier Equity went as low as 75 per cent in equities, HDFC Mid-Cap continued to hold 92-95 per cent in this segment. This is also one strategy that we prefer in the fund compared with IDFC Premier Equity. We have taken the later for most comparison purposes because IDFC Premier Equity too, does not heavily invest in very small companies. But then given its growing asset size, IDFC Premier has higher exposure to larger companies compared with HDFC Mid-Cap Opportunities.
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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| ICICI Prudential Focused Bluechip Equity Fund Posted: 25 Jul 2013 05:57 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
ICICI Focused Bluechip Equity Fund
If you wish to start building an equity portfolio with mutual funds, then ICICI Pru Focused Bluechip Equity (ICICI Pru Bluechip) can be a good fund to start your core portfolio. A basket made up of the top large-cap companies in the listed universe, active fund management that throws in a few mid-cap stocks for returns and a bit of derivatives to hedge the portfolio from market volatility have all worked in favour of this fund since its launch in May 2008.
Had you invested in the fund since its inception using the SIP mode, it would have delivered 15.7%, higher than the 9.5% return of its benchmark CNX Nifty.
But a point-to-point return would suggest that the fund lagged its benchmark by less than a percentage point. This is simply because the Nifty had fallen quite a bit by mid-2008, while the fund, just launched and starting off with cash, did not have such a low base to contend with.
Suitability
If you are a very conservative investor and want a tryst with equities without getting hurt, then balanced equity-oriented funds will be a better route.
Opt for the growth strategy and have a time frame of at least 3-5 years. Consider an SIP of not less than 3 years to average costs well. If you are building a long-term portfolio then have longer SIPs. If you become familiar with markets, buy this fund with a small lump sum (besides the regular running SIPs), in market corrections of 5-10%.
Performance
It is also worth noting that the sudden rally in the later half of 2012 may have caught the fund unaware, especially given that it uses a bit of derivatives. While the fund management did change hands in 2012 (from Prashant Kothari to Manish Gunwani), we do not see any fundamental change in the strategy or performance of the fund that warrants concern.
ICICI Pru Bluechip has a risk-adjusted return superior to older large-cap funds such as Franklin India Bluechip and HDFC Top 200 in the last three years.
That said, it has limited room to maneuver outside of the large-cap stocks. Hence, HDFC Top 200 may overtake the fund in rallies that are not very large-cap focused.
But to its credit, its returns do not deviate much from its mean and it also contains declines better than most other large-cap peers, thanks to its occasional use of derivatives, sometimes using the index futures and at other times more stock-specific futures for hedging purposes.
Portfolio
The usual large-cap performers, HDFC Bank, ICICI Bank and SBI, besides Kotak Mahindra Bank together accounted for a fifth of the portfolio.
While IT sector was the second largest holding, FMCG stocks interestingly saw an increase in exposure in the space of a year, with United Spirits and Nestle coming in, even as Marico exited the portfolio, in the later part of 2012. Auto and auto ancillaries too were in the top 5 sector exposures.
Energy stocks such as Petronet LNG, Cairn India and PGCIL offer some balance in terms of 'value' exposure, against the otherwise 'growth-heavy' portfolio.
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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| Posted: 25 Jul 2013 04:14 AM PDT Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) UTI Mastergain Fund
For the conservative investor
You may be quite familiar with UTI Opportunities and UTI Dividend Yield, the popular funds from the UTI stable. But UTI Equity may not strike a chord. This fund is not a topper in the performance chart, but has consistently maintained its position in the top quartile of the performance chart of equity funds.
Earlier known as UTI Mastergain, the fund beat peers such as HDFC Equity, DSPBR Equity and ICICI Pru Top 100 over the last three years. It also outperformed its benchmark by a good 6 percentage points over this period (see chart for returns).
Suitability
If you are a conservative investor looking for limited volatility, content with a predominant basket of large-cap stocks and have moderate return expectations, then UTI Equity may fit your bill. The fund contained declines well both in 2008 and 2011 suggesting that it is a good option to hold in down markets. But you may not witness equally good performance in rallies. While it comfortably beat its benchmark as well as the equity category average by 3-8 percentage points in the 2007, 2009 and 2010 rallies, funds such as HDFC Equity did a better job in delivering returns in swift market run-ups.
Invest in the fund, if you already hold top schemes such as ICICI Pru Bluechip and Quantum Long Term Equity. Hold with a minimum five-year horizon and use the SIP route. Investments through SIPs in the past five years delivered an internal rate of return of 14.3 per cent, twice as much as the returns through lump sum investment; as a result of opportunity to average in 2008.
Performance
UTI Equity's consistency is demonstrated in its rolling returns. We calculated the fund's one year returns on a daily basis and compared the same with the fund's benchmark returns. Over a three-year period, UTI Equity's rolling returns beat its benchmark a good 87-percent of the times. This suggests that your chance of outperforming the benchmark is very high, irrespective of when you enter the fund. A similar record for HDFC Equity, with its own benchmark CNX 500, stood at 79 per cent.
UTI Equity's returns too, does not deviate much from its average (measured by standard deviation) compared with peer funds including the likes of DSPBR Equity and Fidelity Equity. But as mentioned earlier, that also means that the fund will not swing too far from its average in case of market rallies. Therefore, expect consistency, not chart topping returns from this fund.
Portfolio
UTI Equity has a diversified portfolio of about 70 stocks. But with well over four fifth of its assets in large-cap stocks with market capitalisation of over Rs 10,000 crore, its portfolio is not particularly exciting.
Yet, the fund took tactical calls in sectors over the past year and also held a few niche picks in the small-cap segment. Like most funds, it increased exposure to the financial sector in the last one year. But even as peers pruned their consumer goods holding, the fund increased it. Top stock in
this space, ITC, delivered well for the fun d. Compared with its benchmark, the fund had higher exposure to stocks such as Cairn India, Bosch and Nestle and afforded lower weights to stocks of Tata Motors, HDFC and Reliance Industries. Some of the smaller stocks in the portfolio include WABCO, Divis Laboratories and Tube Investments of India.
The fund is managed by Anoop Bhaskar.
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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