Prajna Capital |
- Mirae Asset India Opportunities Fund Invest Online
- Edelweiss Diversified Growth Equity Top 100 Fund Invest Online
- What is CPPI? - Constant Portfolio Protection Insurance
| Mirae Asset India Opportunities Fund Invest Online Posted: 17 Feb 2014 04:15 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Mirae Asset India Opportunities Fund Invest Online
Fund: Mirae Asset India Opportunities Fund
When one looks at the name, it would appear to be a very aggressive offering. The notion of opportunities funds are such that they rapidly churn their portfolio in a bid to make a quick buck and take dominant positions where possible.
However, that is not the case with Mirae Asset India Opportunities Fund. This is a diversified equity offering with no bias to theme or sector. It claims not to have a market capitalization bias but there is no denying the tilt towards large-cap stocks. Over the past few years, exposure to large caps has hovered around 80%.
The fund’s assets under management are not huge. Being a relatively small fund, the number of stocks it holds fluctuates between 47 and 57. This makes for a very diversified offering and not one where you will see strong stock bets. The fund managers are not conservative but neither are they overly aggressive. It would right to say that they sort of take the middle road and are judicious in their investment calls.
The fund follows a dual strategy of core and tactical allocation. In its core portfolio, which should cover around 70-75% of the portfolio, the fund managers tend to stick to a buy-and-hold philosophy. They look for quality of businesses (businesses with scalability and sustainable competitive advantage with strong pricing power, high return on investment and strong earnings growth), management competency and, of course, valuations.
Where the tactical allocation is concerned, the fund managers attempt to capitalize on short-term movements in the market but prefer sticking to large-cap names because liquidity is the key concern here.
The fund completed 5 years yesterday and its performance has got it noticed. Launched in the market mayhem of 2008, it appeared doomed from the start. In fact, its numbers were not impressive during the three quarters of 2008. Since then, it has outperformed its benchmark every single calendar year. Even when the market fell in 2011, this one’s fall was less than that of its benchmark.
In its very first calendar year (2009) it trounced the competition with a return of 109%, way ahead of the benchmark’s 88%. A prime reason being that it was fully invested at the start of the rally in March that year. Though it could also be attributed to being underweight on few of the underperforming sectors like Real Estate, Construction and Capital Goods. What makes this performance so impressive is that the fund managers put up such a number despite maintaining a low exposure to Auto (BSE Auto delivered 204% in 2009).
Last year was not noteworthy since the fund managed to outperform the benchmark by just around 2.28%. Put it down to missed bets in Oil and Infotech. Though the fund has never beaten the benchmark by its wide margin of 2009, it continues to be a persistent outperformer. We have no doubt concerning the quality of this offering. In 2012, this fund made an entry in our recommended performers list. We continue to recommend it. The fund’s track record shows that it can handle down markets as well as bull runs and consistently outperform its benchmark.
Those on the look-out for a fairly non-aggressive and well diversified offering with a large-cap tilt should seriously consider this fund.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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 Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
| Edelweiss Diversified Growth Equity Top 100 Fund Invest Online Posted: 17 Feb 2014 03:16 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Edelweiss Diversified Growth Equity Top 100 Fund Invest Online
Edelweiss Diversified Growth Equity Top 100 Fund (EDGE Top 100) debuted a little over four years ago. Going by its name, one can see immediately that it is a large-cap offering. What you will get here is a diversified portfolio of at least 50 quality stocks. But do note, the fund won’t be a pure large-cap offering at all times. The investment mandate does give the leeway to dabble in mid-cap stocks. So smaller fare can touch around 20% of the portfolio while the debt / cash allocation can move up to 35%. Though the fund aims to stay invested at all times, there have been instances otherwise. March 2012 is a case in point where the debt/cash allocation touched 18%.
The quant model designed by the asset management company will throw up the selected stocks and their respective weightages based on input variables.
The stock selection will be done on various parameters that are keyed into the system – growth, valuation, performance (in terms of price) and consistency (in terms of margins).
The weightage to a stock will be based on its volatility, quality and liquidity.
A co-relation matrix is also in place to ensure that not too many highly co-related stocks are dominating the portfolios. The co-relation will be ascertained on various parameters. To cite an example, if the parameter is interest rates, three sectors with a strong co-relation would be banking, auto and real estate.
Finally, a constraint is also in place to ensure that the actual allocations are not completely defiant to the weight in the index.
What this does is eliminate the individual fund manager bias and prevent him from going gaga over “favourite” stocks.
On the flip side, the common argument against quant funds is that one can lose out when the market suddenly changes direction or behaves unpredictably. Point taken! But when investing in equity, one has to take a long-term view. And where this fund makes a case is by its consistency of returns.
Its performance in 2010 and 2012 has not strayed too far from the Nifty, its benchmark. And its fall in 2011 was significantly less. But if one looks at its current 1-, 2- and 3-year trailing returns, it does leave its benchmark a good distance behind. When stacked up against its large-cap peers, it boldly and consistently features amongst the top four in all three time periods.
There is one point worth mentioning though. Just because the fund uses a quant model to make its picks, don’t assume that the portfolio is, by and large, static. If we look only at the portfolios from the start of this calendar year, there are some interesting observations in the top 10 stocks. The allocation to each does not stay constant and there is a fair amount of shuffling. Let’s look at some examples (this data only refers to the top 10 stocks of the January 2013 to June 2013 portfolios).
ITC made an appearance only from February onwards and its allocation has fluctuated somewhere between 4.55 to 6.70% of the portfolio. Though it was not in the top 10 in January, it was the second highest holding in February. Sun Pharma and Yes Bank featured only in April. On the other hand, HDFC Ltd made an appearance every month except April. SBI appeared only in January and April.
So if there are any doubts as to this fund not being an actively managed fund, this should clear the air. This is a diversified equity fund that falls in the large-cap space. It just tends to rely more on its software to design the portfolio. And looking at its track record, it has been doing a fine job.
Fund: Edelweiss Diversified Growth Equity Top 100 (EDGE Top 100) Fund
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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 Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
| What is CPPI? - Constant Portfolio Protection Insurance Posted: 17 Feb 2014 02:09 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
CPPI means Constant Portfolio Protection Insurance. CPPI is a more refined / advanced version of a simple capital protection strategy that is usually adopted in Capital Protection Oriented funds that we see in the market. It's aim is to try and maximise the upside from the portfolio, while sticking to the basic principle of downside protection that is a necessary feature in any capital protection strategy.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
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 Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
| 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