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| Birla Sun Life MIP II Savings 5 Posted: 05 Oct 2015 05:06 AM PDT Birla Sun Life MIP II Savings 5 - Invest Online
Have you traditionally been a debt investor but now wish to test waters in equities? Then, debt-oriented funds such as Birla Sun Life MIP II Savings 5 (Birla Savings 5), which have limited exposure to equities, may fit your requirement.
The fund appears well poised to capitalise on a falling interest rate scenario and has increased the average portfolio duration of its debt instruments in recent times. Suitability The latter funds hold a record of delivering superior returns in the long term, buttressed by a higher equity exposure of 20-25 per cent. Birla Savings 5, on the other hand, has restricted equity exposure to less than 10 per cent in volatile markets and at best goes to 15 per cent in rallying equity markets. Use the fund as a launch pad into equities and hold a 2-3 year time frame while investing through SIPs. If you have a longer time frame of say five years or over, then lump sum investments can also be considered. Performance
As a result, its five year record is actually even better than top peers. But that also meant losing out on equity opportunities in years such as 2012. Hence, over a three-year period, the fund is next only to peers from HDFC and Reliance fund houses. In fact it marginally lagged its benchmark over a period of one year as a result of lower equities in 2012. Still, in the last 3 years, on a rolling one-year return basis, it did not see any declines at all, even as its peers did, suggesting that it is suitable for investors wanting to contain falls. While the fund has bucked the category trend in earlier years too, it did so by taking some risks in the debt component. In 2008 for instance, when most other MIPs and debt-oriented funds fell into negative territory, the fund managed a whopping 28 per cent return. This return was possible not merely by avoiding equities, but by taking aggressive debt calls when rates fell (and long dated gilt instruments rallied). This did entail some risk. But since then, the fund has not been too bold with its debt exposure. Portfolio
The fund has a majority of its assets in AAA-rated bonds. About 12 per cent of its assets are in government bonds and about 9.7 per cent of them in equities. Its equity portfolio has an eclectic mix of large-cap stocks such as ITC, Reliance Industries and NTPC, as well as mid- and small-cap stocks such as V-Mart Retail, City Union Bank and Jyothy Laboratories. The fund has a track record since 2004 and is managed by Satyabrata Mohanty and Kaustabh Gupta from June 2009. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| Posted: 05 Oct 2015 04:26 AM PDT Mutual Fund Riskometer  Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
| Posted: 05 Oct 2015 02:22 AM PDT If you are starting out on a long-term portfolio or are looking for participation in equity, albeit with less volatility, you can consider investing in ICICI Pru Balanced Fund. This equity-oriented fund, with about two thirds of its assets in equities and the rest in debt, has a track record of delivering 19 per cent annually in the last 5 years. That's not only a good 5 percentage points higher than the balanced fund category average, but it is also superior to the average returns of diversified equity funds by a similar margin. Suitability ICICI Pru Balanced has a long track record, having been launched in the last quarter of 1999 and witnessing several market ups and downs. Over the same period, the average equity exposure ranged between 65 per cent and 75 per cent. Equity levels in the portfolio are determined using an in-house Price to Book Value (P/BV) model in which current market levels are compared to the fair value range to determine under or over valuation of the market. A lower Price to Book Value than the fair value range triggers an increase in equity levels and vice versa. The rebalancing of the equity portion is reviewed on a weekly basis. You can expect this fund to contain declines better than diversified equity funds. It is also managed conservatively compared to the other balanced funds. Dividend Payout Option: ICICI Pru Balanced has a unique option that may help even relatively conservative investors looking for regular payouts. The fund has a half-yearly dividend payout option. Started in September 2014, the first dividend is yet to be announced (expected by March 2015). Hence, for a retired investor with investments diversified across other fixed income products, this fund could be a good option to take little exposure to the equity class. Performance
Had you started a Rs. 10,000-a-month Systematic Investment Plan (SIP) in ICICI Pru Balanced 15 years ago, you would have a handsome Rs. 81.2 lakh today. That's an annual yield of 18 per cent. The benchmark Crisil Balanced Fund Index, on the other hand, would have fetched just Rs. 52 lakh; that's an Internal Rate of Return (IRR) of 13 per cent annually. The fund also consistently beat its benchmark. On a rolling one-year return basis for the last 3 years, the fund beat its benchmark 98 per cent of the times. The fund has the ability to generate consistent returns even in choppy markets as was seen in 2011 and 2013. These qualities were displayed to the best effect in 2011. When the index fell by 14 per cent, this fund contained losses to 9 per cent. In 2013, the fund rose by 11 per cent, while its benchmark had delivered just 6 per cent returns. Portfolio
ICICI Pru Balanced Fund looks at a blend of large and mid-cap stocks. While large cap stocks represent established enterprises with a track record, the mid-caps are smaller businesses with a long-term growth potential. The fund maintained the average equity exposure of 70 per cent in the last 5 years. Large cap stocks averaged at 50 per cent of the equity exposure (i.e., 35 per cent of the overall portfolio). ICICI Pru Balanced Fund also invests in fixed income securities, which offer reasonable accrual with a credit rating of 'AA' and above, and tactical allocation to longer maturity papers. The fund seeks to manage actively the debt portion and currently aims to gain from duration play, as the view on interest rates are positive. As of January 2015, close to half of the fund's total equity holdings were in large-cap stocks with a market cap of over Rs. 10,000 crore. The rest were in mid and small-cap stocks. The fund has adequately diversified its portfolio by holding 51 stocks from 19 different sectors. Its top 10 holdings account for 24 per cent of its portfolio. Infosys, HDFC Bank, Dr. Reddy's Lab, L&T and Maruti Suzuki India Motors were some of the top picks in the large cap space. Balkrishna Industries Ltd., Amara Raja Batteries Ltd., Repco Home Finance, and TVS Motors were some of the top picks in the mid & small-cap space. Yogesh Bhatt and Manish Banthia manage the fund. Stock strategies The fund invested in ING Vysya Bank (in May 2014), much before the announcement of acquisition by Kotak Mahindra Bank. The merger would likely have delivered handsome returns. The fund exited ING Vysya Bank in January 2015. Similarly, it invested in Raymond in May 2014 and exited in August 2014 by booking handsome profits in 3 months, suggesting that it takes short-term calls actively as well. The fund also has a sound exit strategy. It exited Sun TV in July 2014, much before the steep fall on October 2014 by cutting losses on time. In the last 3 months, the fund has taken many short-term calls in stocks such as SKF, Pfizer and United Breweries. For instance, it took some minor exposure to United Breweries on December 2014 and exited the very next month by booking short term profits. Of course the fund has a long-term strategy in place for majority go stocks and the above simply provide some kicker returns. *Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not indicative of future results. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1.ICICI Prudential Tax Plan 2.Reliance Tax Saver (ELSS) Fund 3.HDFC TaxSaver 4.DSP BlackRock Tax Saver Fund 5.Religare Tax Plan 6.Franklin India TaxShield 7.Canara Robeco Equity Tax Saver 8.IDFC Tax Advantage (ELSS) Fund 9.Axis Tax Saver Fund 10.BNP Paribas Long Term Equity Fund
You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds
Invest in Tax Saver Mutual Funds Online - For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 --------------------------------------------- Invest Mutual Funds Online Download Mutual Fund Application Forms from all AMCs |
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