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| What Is This Reverse Mortgage? Posted: 22 Dec 2013 02:05 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India) One knows that the reverse mortgage is a loan taken against ones home which does not need to be paid back for as long as one lives there. This is available only to senior citizens above 60 Years of age .However one needs to own a residential property whose title is in his/her own name and needs to occupy or reside in that property. The property needs to be self occupied with no other loan against it. In a reverse mortgage operation the owner of the home ,a senior citizen generates cash flows from his home by borrowing against his home and continues to stay in his home. The amounts are obtained as a lump sum or as a regular monthly cash advance like a salary. A certain processing fee is charged while sanctioning the reverse mortgage loan amount which might be 1% of the loan amount sanctioned. The maximum monthly payments made by the bank cannot exceed INR 50000 per month. The lump sum cannot be more than 50% of the total eligibility amount with a ceiling of INR 15 Lakhs. The loan can be availed in a limit up to 60% of the value of the house. The maximum loan amount along with interest is restricted to a Crore of Rupees. The bank might make an assessment of the property based on the circle rate or the market rate, strength of the structure and the general maintenance of the property. Higher quantum of loans in the range of 60% of the value of the property can be obtained if one is around 70 Years of age. The rate of interest charged is around 12-15% per annum. One can avail of this facility as long as one does not sell the house, permanently move out of the house or as long as one is alive. In a typical home loan one needs to have a certain minimum salary to have that home loan sanctioned. In the case of reverse mortgage even if one does not have an income one can qualify for this kind of a loan.
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--------------------------------------------- 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
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------------------ Best Performing Mutual Funds
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| Posted: 22 Dec 2013 01:34 AM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
SBI Blue Chip Fund
SBI Bluechip is an equity diversified fund with monthly average assets under management at Rs 799 crore, as on June 30, 2013. The fund's portfolio has a tilt towards large cap companies. The fund was launched on January 2006 and it has been benchmarked against the S&P BSE 100.
Performance
The fund's performance is excellent in the one and three year period, the fund has in fact been part of the first quartile. Looking at the performance in the five year period the fund is in the second quartile and has outperformed both the average and its benchmark. The fund is lagging its benchmark in the since inception category.
Figures in % as on July 31, 2013; Returns above 1-year in CAGR (Compounded Annual Growth Rate) terms
The fund has consistently outperformed its benchmark in four out of the last five calendar years, this exception was in 2010. Against the peer-set, equity diversified category, the fund's performance has been very shaky.
During calendar years 2008 and 2009 the fund was in the second quartile among its peer-set of equity diversified funds. Then the fund started lagging during the calendar year 2010 and 2011, it fell to fourth and third quartile. And it improved its rank during 2012 to second quartile within the category.
The monthly performance of the fund shows underperformance against its benchmark during the last two months -- June and July. Among the peer-set, the fund was in the first quartile till March 2013. Since April its has featured among the second and third quartile funds of the category.
Had an investor been investing through SIPs between Jan 2008-Aug 2013, the fund would have given returns of 9.14 per cent and if someone would have made SIP between Jan 2011- Aug 2013 then the return would have been 10.18 per cent. Though it would have outperformed its index in the same period as well, S&P BSE 100 gave returns of 6.71 per cent between Jan 2008-Aug 2013 and 5.25 per cent returns between Jan 2011- Aug 2013, there are other funds that have given higher returns with consistency.
Risk and risk-adjusted returns
In terms of measures of risk such as standard deviation and beta (measured over last three years), the fund has a mix result. Meanwhile in terms of measures of risk-adjusted return such as Treynor ratio and Sharpe ratio (measured over last three years), the fund has given a higher risk-adjusted returns compared to the category median.
The fund has an expense ratio of 2.70 per cent. This is 17 basis points higher than the median for the diversified-equity category (2.53 per cent). It doesn't have any exit load; therefore, investors can invest for as little as a day without having to worry about the exit load.
Processes
The scheme is a pure equity diversified fund. The fund has defined stock universe as equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalised stock of BSE 100 Index. This will allow the fund manager to tap into the 74.94 per cent market cap of the BSE Market Cap. The scheme can also invest up to 30 per cent in debt instruments or in money market instruments.
The general process that has been described in the SID: "There is also a process of approval of transactions, this is done by the investment team comprising of Chief Investment Officer (CIO), Vice President (Investment Risk & Process Control) and all Fund Managers. The committee also invites the Compliance Officer and Head of Research in its meetings."
Based on the way the fund's committee's various activities has been written about, the impression is clear that the fund manager is given autonomy in constructing the portfolio as long as they adhere to the internal guidelines set for them.
The fund also has an active tracking error constraint –a max of 8 per cent active weight on a sector (vis-Ã -vis the benchmark) and 4 per cent on a stock.
Portfolio
As of June 2013, the fund had exposure to 47 stocks in its portfolio against the category median of 42. Its average portfolio allocation over the last five years has been 47 stocks.
In the last five years, the fund has had an average exposure of 84 per cent to large-cap companies. During this period average exposure to mid-cap companies was at 5 per cent and no exposure to small caps, although it has flexibility to invest up to 20 per cent in mid-sized company. Meanwhile, its average exposure to cash and cash equivalents (which includes CBLO) during this period has been seven per cent, the maximum permissible cash limit for the fund is 10 per cent.
The top five sectors in the portfolio as of June 30, 2013 had an allocation of 56.67 per cent. These include Banks, Software Consumer Non Durables, Petroleum Products and Pharmaceuticals; within banks Private Banks appear to have a higher proportion. In the last 12 months (July 2012-June 2013) a total of 20 stocks have appeared in all months, and together they have accounted between 52-to-64 per cent of the portfolio.
HDFC Bank, ITC, ICICI Bank, Housing Development Finance Corporation were the top four stocks and each one has accounted for four-to-eight per cent of the in the portfolio over the past 12 months.
Cyclical stocks had exposure levels of 48-to-61 per cent over the last 12 months. Meanwhile exposure to Services and Defensive stocks moved between 15-to-23 per cent and 15-to-26 per cent respectively.
Fund Manager
Sohini Andani has been managing SBI Bluechip Fund since September 2010. She has more than 16 years of experience in the area of financial services. Prior to joining SBI Funds Management Pvt. Ltd., she worked for ING Investment Management Pvt Ltd as Senior Analyst and was responsible for assisting Fund Managers and the CIO in their equity investment decisions. Presently she also manages SBI Magnum Midcap Fund.
View
Although the fund has consistently outperformed its benchmark but this was by a very thin margin. However, it has given an outstanding performance in 2012. The biggest advantage this fund has over its peers is the exit load. The fund has 'nil exit-load'. It is noteworthy that the AMC has one more large-cap oriented fund – SBI Magnum Equity. The fund manager has a conservative style. Those who are looking for an aggressively managed large cap fund need to look elsewhere.
If you have a short term view that the market will witness a momentous rally in the large-cap fund then you can invest through this fund. This fund is also suitable for investors with long-investment horizon who would want to outperform the S&P BSE 100.
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: 21 Dec 2013 06:11 PM PST Invest In Tax Saving Mutual Funds Online Call 0 94 8300 8300 (India)
Tax efficient liquid funds could prove to be more stable if the interest rates are raised
Liquid funds could prove to be a stable fixed- income asset class if the interest rates are raised again. With inflation still on the higher side — consumer price inflation for October stood at 11.24 percent — and economic conditions sluggish, with Index of Industrial Production lower at 1.8 per cent, the Reserve Bank of India at its next monetary policy meeting is quite likely to raise the repo rate by 25 basis points to eight per cent, from the present 7.75 per cent. Any rate increase would hit the debt market. Liquid funds, however, could prove to be a stable category in this current fluid environment, as liquidity has eased. These funds' net asset values are not impacted, as much of the rates are increased in the future. Returns too, are higher.
At this time, one of the great products to buy is a liquid fund, as it provides total flexibility to an investor. It also offers higher yields, which might not last and it probably has the best risk- reward ratio in the market. Both, interest rate risk and credit risk, are lower in this category of funds. One can reduce risk by buying more money market assets or by buying higher- rated bonds. This category of funds have the best of both for now.
On the other hand, the 10year g- sec yield crossed the nine per cent market more often in the past month, with a corresponding increase in risk levels of other debt fund categories. But, as liquid funds are largely buying debt paper that matures in a few days or weeks, risk is lower in this category.
Overnight money- market rates are hovering around eight per cent. The RBI would probably increase rates. So, in longer- term tenures, you could still see some pain, and hence it's better to have more exposure to liquid funds. You could choose between two types of money- market funds, liquid or ultra- short- term. As the names suggests, these invest in short- term corporate debt paper, certificates of deposits, commercial paper and government T- bills in order to generate higher returns on your investments and, at the same time, maintain high liquidity. Debt paper held by these funds usually mature within a month; sometimes, within a few days.
Average returns from liquid funds in the past one year have come at about 8.77 per cent, with many funds giving returns of little over nine per cent, according to data from Value Research. Average one- month returns have also been 0.77 per cent, which translates to 9.24 per cent per annum.
Besides, parking money in liquid funds is more tax efficient than putting your money in a savings bank account. In a growth option, these types of funds offer long- term capitalgains tax if held for over a year. In a dividend option, the fund has to deduct at source the dividend- distribution tax, though dividends are tax- free in the hands of an investor. In a one- year option, returns work out to twice as much as keeping money in asavings account. An investor would earn around 8.9 per cent (post- tax) if the investment were in the money- market fund (growth option), compared to 3.38 per cent in a one- year savings deposit, according to a report by Crisil study.
Parking money in liquid funds is more tax efficient than putting your money in asavings bank account. In a growth option, these types of funds offer long- term capital- gains tax if held for over a year
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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