Tuesday, August 12, 2014

Prajna Capital

Prajna Capital

Religare Invesco Contra Fund - Invest Online

Posted: 12 Aug 2014 05:11 AM PDT

 

Religare Invesco Contra Fund

 

Investment Objective

 

The scheme seeks to generate capital appreciation through means of contrarian investing. It intends to identify potentially undervalued stocks across sectors utilising both top down and bottom up approach and then incubating such stocks for a while before they find favour with rest of the market.

 

Analysis

2008 was the first full year that Religare Invesco Contra Fund operated and since then, it has underperformed the S&P BSE 500, it's benchmark, twice, out which one was a marginal 0.5 per cent lag in 2012 when the fund's returns were 31 per cent. Overall, it has overhauled the benchmark by a cumulative 20 per cent since launch. Returns since launch are 10 per cent every year, while its five year returns are a healthy 20 per cent per annum, compared to the benchmark's 4.4 per cent over the same period.

The fund has maintained a consistent three or four star rating over its history, with a lifetime average rating of 3.8. This indicates a high propensity to maintain and deliver high risk-adjusted returns.

Like some of the other funds in this selection, Religare Invesco Contra is only incidentally a multi-cap fund. As its name indicates, the plan is to generate returns through 'contrarian' investing. As the fund company defines it, Contrarian investing involves picking 'neglected stocks' with strong asset values as well as focusing on high potential under owned sectors. The aim is to have a first mover advantage by investing into out of favour sectors or stocks thus increasing out-performance prospects utilising both top down and bottom up approach.

As it happens, a contrarian strategy is very likely to have more of a mid-cap and small-cap bent than standard diversified funds, because smaller companies are more likely to find themselves in what could be called contrarian situations. Except for a period in 2011 when it was heavier on large caps, the fund has always been more mid-cap oriented.

Over the last two years, its large cap exposure has been more than 15 per cent below the multi-cap category average. That it has held its own during the period shows a quality of fund management that should make investors rest easy about the prospects of their investments.

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

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Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

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Best Performing Mutual Funds

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      1. DSP BlackRock Top 100 Fund
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      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

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D. Small and MicroCap Funds Invest Online

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CPOF Funds - Can Protect Your Principal Amount

Posted: 12 Aug 2014 03:20 AM PDT

 

CPOFs Can Protect Your Principal Amount

 

Capital protection oriented funds allow even risk-averse investors to make gains from bull runs

While investing their hard earned money, most investors think about ways to protect their initial investments. Making profit comes to their mind only after they have protected their starting amount. To address this attitude of a large number of investors who are mostly risk-averse to some extent, fund houses have come out with schemes that try to protect investors' initial investments. These schemes are called Capital Protection-Oriented Funds (CPOFs).

The reason these funds are not called capital protection funds but the word `oriented' is added is because rules governing mutual funds in India do not allow fund houses to float schemes that guarantee investors' initial capital will be protected. Hence, the name capital protection-oriented funds.

 

CPOFs are closed-ended funds in which once you invest, you need to stay invested for the whole duration of the scheme. One of the major advantages for CPOFs is that these schemes allow even the risk-averse investors to participate in the upside of the equity market.

 

These funds are ideal for those investors who are more concerned about protection of their initial investment. So naturally these funds do no create large wealth for the investors. For example, if an investor had invested in a pure equity fund for five years, and got a compounded annual return of 20%, he would have more than doubled his initial corpus during this period. If another investor had invested in a five-year CPOF with 20% exposure to equity , he would get just about 4% annually in the equity part.


Thus overall, the investors' return would be limited to about 22% over the same period of time on his/her total investment. In the first instance, if the equity market had given a negative return, the investor's total investment could have turned negative as well. However, for the second investor who invested in the CPOF, his/her investments will not be negative and is sure to get back his/her initial corpus.

The fund managers of CPOFs usually invest their corpus in government securities and other highly rated debt papers. They also deal in the equity derivatives market for full exposure in the equity market.


Through the derivatives market, paying a margin, they leverage their positions to get a higher exposure and give superior returns to their investors from equity market. Some even invest part of their corpus in frontline stocks.


An alternative: MIPs/hybrid funds An alternative to CPOFs are the monthly income plans (MIPs), which also, mostly , protect investors' money but there is no unofficial guarantee that the initial investments will be protected. In MIPs, the fund manager in vests the money in such a way that he/ she is able to distribute some profits to investors on a regular basis, preferably on a monthly basis.


Here, according to an investor's risk taking ability, one can select either a debt-oriented MIP or an equity-oriented MIP .

Another category of fund for risk averse investors is the hybrid funds.
These are schemes for those investors who are not very sure whether to invest in debt or equity, but are surely looking to not lose their hard-earned m o n e y. H y b r i d schemes are those that invest part of their money in debt and part in equity. Here, the ratio of debt to equity may vary over time and, depending on the same, the taxation structure also varies.

A few years ago, some fund houses also launched hybrid funds that invested in gold. But such funds were launched to capture the bull run in the yellow metal and, with the gold rally now subdued, debt-equity-gold oriented hybrid funds are not taking off any more.

Some financial planners are also of the opinion that even individual investors can replicate CPOFs in their own portfolio. However, if you are not experienced enough to have a portfolio that can protect your investments, it's better to take the mutual fund route where, for a small fee, experienced fund managers would do the job for you.

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

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

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



Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Reliance Capital Builder Fund - Series B

Posted: 12 Aug 2014 12:34 AM PDT

 Reliance Capital Builder Fund - Series B NFO will be opening for subscription from 12th Aug 2014 to 26thAug 2014. The key features of the scheme are as mentioned below:
 
 

Type of Scheme

A Close Ended Equity Oriented Scheme

Benchmark

S&P BSE 200 Index

Fund Manager

Mr. Sailesh Raj Bhan & Ms. Jahnvee Shah

New Fund Offer (NFO) Period

12th Aug 2014 to 26th Aug 2014.

Minimum Application Amount

Rs. 5000 and in Multiples of Rs.1 thereafter

Plans/ Options Offered
  1. Growth
  2. Dividend (Payout Option)

Liquidity

To bel listed

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

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

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



Invest in Tax Saving Mutual Funds Download Any Application Forms
Buy Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

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