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| Franklin India Taxshield Fund Online Posted: 16 Aug 2016 04:22 AM PDT Invest Online Franklin India Taxshield Fund The scheme seeks medium to long term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments. A fund which has stayed determinedly large-cap tilted, even in a category crowded with multi-cap funds, Franklin India Taxshield has delivered good-enough returns to retain four- to five-star ratings for much of the last eight years. The fund's year-to-year returns don't always beat its more aggressive peers, but its performance adds up to very handsome returns over the long term. A fund which allocates a minimum 60 per cent of its portfolio to large caps, it has pegged up this exposure even higher, to 75 per cent in the last one year.
Mid and small caps now make up a fourth of the portfolio, shielding the fund from any valuation meltdown in this segment of the market. The fund also avoids momentum stocks and sticks to bottom-up fundamentals-based investing. Though this fund is from a growth-style fund house, it tends to be quite valuation conscious. The fund doesn't take cash calls and remains fully invested through cycles.
Outpacing the benchmark in 12 of the last 15 years, this fund has proved more adept at containing losses in bear markets than in really acing its peers in runaway bull phases. The last two years, however, have seen the fund widen its outperformance vis-a-vis the benchmark and the category. The fund's bottom-up picks in automobiles and ancillaries, ports and pharma may explain part of this, as also its underweight positions in PSU banks, metals and energy.
It's a top choice for risk-averse investors seeking ELSS benefits. ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 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 ------------------------------ |
| Sundaram Select Focus Fund Dividend Posted: 16 Aug 2016 03:11 AM PDT Invest Online Sundaram Select Focus Fund   ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 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 ------------------------------ |
| Posted: 15 Aug 2016 06:22 PM PDT Debt Fund Investing Online Debt fund investing is not as easy as pie. Keep these factors in mind while evaluating your debt portfolio Given the nasty surprises that the Indian debt market has sprung on mutual-fund investors in the last couple of years, what should they now do? Well, they should rethink their debt-fund portfolios based on the following heads. Timing matters for duration This pretty much holds good for income funds and dynamic bond funds, too, as both the categories of funds have been almost as aggressive as plain vanilla gilt funds in adding duration in the last couple of years.
To find out the extent of volatility in long-term debt-fund returns over the last ten years, we ran a rolling-return analysis (three years at a time) of the top ten schemes based on the performance from gilt funds, income funds and dynamic bond funds, the fund categories which usually take duration calls, at monthly intervals. The results are eye-opening.
For investors who held on for three years at a time, long-term and medium-term gilt funds have delivered returns that could range anywhere between 1.78 per cent CAGR and a 15.1 per cent CAGR in the last ten years (Figure 1).
The range of returns was narrower for income funds. But their three-year rolling returns still varied from 4 to 12.7 per cent.
Dynamic bond funds, which are supposed to navigate rates more smoothly, also saw quite a lot of volatility in their returns; they ranged from 3.75 per cent to 11.6 per cent. In fact, even gilt funds of the short-term variety saw their returns fluctuating from 3.4 to 10.1 per cent!
What this suggests is that if you enter duration funds at the wrong time, there's a good chance you'll be earning much less than bank-FD returns that all retail investors like to target.
One way to avoid this, if you are a savvy investor, would be to track the ten-year G-sec quite closely. History suggests that the G-sec has usually peaked out at about the 9 per cent mark in recent rate cycles and bottomed out at 6 per cent or so. Therefore, if you are looking to add big exposure to long-term gilt or income funds, doing it closer to the 9 per cent mark may yield you better returns. The closer market yields get to the 6 per cent mark, the better it may be to avoid these funds.
The shorter the better
Short-term, ultra short-term and liquid funds offer a pretty good deal. A rolling-return analysis of these categories for the last ten years shows that the maximum returns they have managed for three-year periods are 10.9, 9.6 and 9.5 per cent, respectively (Figure 1).
While these returns may not be sustainable (they may decline if interest rates in the economy fall further), the good part is that the minimum returns they have managed are 6.2 per cent, 7.9 per cent and 6.9 per cent. Two factors favour short-term and liquid debt funds. One, due to their focus on very short-term instruments, these funds take less of a hit from an unexpected spike in interest rates. They also carry lower credit risk than credit or income funds as they stick to very short-term corporate instruments. Two, the expense ratios for these funds also tend to be much lower than those for gilt, income or credit funds.
This comparison suggests that for conservative fixed-income investors who are looking for more 'fixed' returns, short-term-fund and liquid-fund categories are the best bets.
Cautious on credit
But recent episodes of rating downgrades and their impact on some debt funds like the ones run by JPMorgan AMC show that the risks carried by a credit-opportunities fund are not readily visible to investors.
If higher volatility due to market swings is the bane of funds which take duration calls, investors in credit-opportunities funds can suffer sudden jolts to the NAV as a result of rating downgrades. The poor liquidity in the Indian bond market and the fact that most institutions like to invest only in AAA-rated or sovereign bonds also enhances the risks in such funds. Should they face any incidence of sharp downgrade, open-ended funds may find it not so easy to exit their lower-rated instruments at the quoted price.
Therefore, investors who have hitherto been tempted by the relatively high returns of credit funds should recognise that there's no free lunch in the bond markets, just as there's none in the equity markets. If a fund is consistently delivering higher returns from credit calls, that probably goes with a matching risk profile.
This again calls for higher due diligence from investors willing to play this game. Rather than investing solely on the basis of past returns, factors such as the rating profile of a fund's portfolio, the yield to maturity (the higher it is, the riskier the fund) and the concentration in individual bonds and sectors must be considered.
If you are one of those investors who often bet on lower-rated corporate FDs in the hope of earning higher interest rates, credit-opportunities funds are a better bet for you as they offer better diversification and risk control.
But a plain vanilla bank-FD investor may not be prepared for the risks in these funds.
Stretch your holding period
In fact, the rolling-return analysis shows that quite a few categories of debt funds delivered fractional returns or even losses for some one-year periods. But holding them for three years at a time not only helped investors avoid losses on such ultra-low returns, it also propped up their return experience over the long term. ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 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 ------------------------------ |
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