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Showing posts with label growth mutual funds. Show all posts
Showing posts with label growth mutual funds. Show all posts

Sebi Finalises Graded Exit Load Structures For Liquid Funds

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The Securities and Exchange Board of India (Sebi) finalized the graded exit load structure on liquid funds on Tuesday. Sebi informed the structures of exit loads in a letter to the Association of Mutual Funds in India (AMFI). The proposal on graded exit loads was earlier made by Amfi in a letter to Sebi on October 11.

According to the letter that Sebi sent to Amfi, the graded exit load has been set at 0.0070% on redemption on day 1, 0.0065% on day 2, 0.0060% on day 3, 0.0055% on day 4, 0.0050% on day 5, 0.0045% on day 6 and 0.00% from day 7 onwards. Sebi also said that the load structure will be changed annually based on the interest rates in the system.


Earlier, Sebi had mandated liquid funds to introduce an exit load for investors who exit the fund within seven days. This directive was aimed at minimizing the impact of frequent inflows and outflows by institutional investors. The movement of big money used to leave smaller investors vulnerable.


Sebi, in its letter also asked AMFI to inform the asset management companies about the new rules pertaining to graded exit load structures. Sebi has also asked the AMCs to communicate the new structure to their respective investors. The letter also says that no changes should be made in the exit load structure without consulting Sebi.




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Mutual Fund Inflow Hits 4-Month Low On Profit Booking

  • Investors continue to invest in equity mutual funds through SIPs while lumpsum flows remain a mixed bag
  • Despite the decline in inflows, the asset base of equity mutual funds increased to ₹7.57 lakh crore
Equity mutual funds witnessed a net inflow of around ₹6,489 crores in September, the lowest in the last four months, due to profit-booking by investors after a rally in markets following a reduction in corporate tax.

According to data by the Association of Mutual Funds in India (Amfi), open-ended equity schemes witnessed an infusion of ₹6,609 crores, while there was an outflow of ₹120 crores from close-ended equity plans, translating into a net equity inflow of ₹6,489 crore in September.

In comparison, net inflows in equity and equity-linked saving schemes stood at ₹9,090 crore in August.

Among debt-oriented schemes, liquid funds -- with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon --- saw an outflow of ₹1.41 lakh crore.

Besides, gold exchange-traded funds witnessed an infusion of ₹44 crores against an inflow of ₹145 crores in August.

The outflow has pulled down the asset base of the MF industry, comprising 44 players, by 4 percent to ₹24.51 lakh crore in September-end from ₹25.47 lakh crore at end-August.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Investors Are Moving From Real Estate To Mutual Funds For Higher Returns

The wealth management area in the Republic of India has witnessed vital changes terribly the very short span of your time. To begin with, the important estate sector that was undeniably one in every of the foremost wanted investment choices until recently has lost its former shininess.

One of the explanations cited for this is often demonetization. However besides this, they come on investments from the important estate had already been on a gradual slump even  within the most favorable Indian cities.


Investors are invariably moving towards higher alternatives to spice up their overall returns. One clear winner during this regard has been the mutual funds business. Investment company finance has seen enhanced capitalist engagement lately. The convenience and ease of finance, in conjunction with the likelihood of a comparatively higher come on investment may be attributed to its quality. As per the AMFI information, assets managed by the Indian investment company business underwent a growth of 7.72% from July 2018 to July 2019 to square at Rs 25.81 trillion; quite half that belonged to individual investors.

Several factors are the same to be chargeable for this alteration. additionally to AMFI's 'Mutual Fund Sahi Hai' campaign, aspects just like the ease and access to investments thanks to digitization have additionally helped in boosting participation during this business. 


Not too long ago, mutual fund investment was perceived to be for the rich alone. But now with ample awareness around the subject, the focus has shifted to make it a more inclusive affair. The growing penetration of smartphones coupled with affordable high-speed internet has made investing simple and convenient for the masses. In addition to this, the entry of big players in this market backed with digital channels to penetrate the B30 cities has helped bring MF investing to the masses.

The notion that one required a large sum of money to be able to start investing has been thwarted with the offering of investment options that now start with amounts as low as Rs 100. This initiative by the Asset Management Companies (AMCs) has enabled first-time investors and investors from B30 cities to participate extensively in mutual funds. Such was the impact of this move that in July 2019, nearly 23 percent of the individual mutual fund assets were registered from the B30 cities of India.

Initiatives by AMFI and Investment Advisors to promote direct plans have worked well to instill investor confidence. Investor education and awareness programs run parallelly by the AMFI have enabled the financial services ecosystem to change with investors deconstructing their investing habits and taking on direct investing plans. This is evidenced by the increased investments in direct plans by retail investors which grew by 2 percent to stand at 12 percent in July 2019 as compared to the previous year, as per AMFI.

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5 Things To Visualize Whereas Compare and Filter Mutual Funds

You should continuously perceive the parameters through that you'll compare and filter mutual funds out of the massive universe of offerings.

1. Investors realize it a small amount troublesome once it involves scrutiny a theme with another one. Veteran investors have conjointly accepted that mistakes do happen over and over whereas choosing funds for creating investments. However, one continuously learns from past mistakes. allow us to perceive the parameters through  that one will  compare and filter and choose the correct mutual funds out of the monetary universe

2. Review fund managers skills | 1stmeasure the past performance of the fund manager with their individual benchmarks and check if they need to be performed fairly. Next, having through with the analysis of the fund manager, check what's the broader investment kind of the theme.




3. Understand the fund’s investment objectives | it's necessary to appear into the funds’ investment vogue (Growth, intermingled or value) as each fund has its distinctive identitya number of the ways are:-

a) worth investment
b) Growth strategy 
c) intermingled strategy

4. Compare returns in an exceedingly right means | you ought to attempt to watch the past performance of the fund. it's a vital consider analyzing an open-end investment companyhowever past performance isn't everything, because it might or might not be sustained within the future and thus, it shouldn't be used because the sole parameter to pick out an open-end investment company.


5. Four risk parameters to envision between funds -

a) variance - that measures the volatility of the returns from an open-end investment company theme over a selected amount
b) Sharpe ratio- that measures however well the fund has performed vis-a-vis the chance is taken by it. 
c) Alpha - the surplus comes of a fund compared to its benchmark index. 
d) Beta - measures a fund's volatility compared to it of a benchmark.

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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
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RBI slashes rates for 5th consecutive time; top 10 takeaways from MPC statement

The Reserve Bank of India’s monetary policy committee, as expected, slashed policy rates for the fifth time in a row on October 4, but the quantum was lower than market expectations.

The Indian rupee and bond prices fell after the RBI announced a cut in repo rates by 25 basis points to 5.15 percent. The Indian market also pared gains, while rate-sensitive stocks turned negative. But, the big takeaway is that the central bank and the government are in sync on the policy response to revive faltering growth in Asia’s third-largest economy.


“RBI has once again proved to be well ahead of the curve in unleashing monetary efficacies to combat the economic slowdown, in perfectly complementing the fiscal initiatives,” Dr K. Joseph Thomas, Head Research-Emkay Wealth Management

“In conformity with this aggressive approach, RBI is likely to continue with its campaign for more rapid transmission of the benefits to credit users, through lower rates to a large extent linked to the base rate.”

Top 10 takeaways from the fourth bi-monthly monetary policy statement, 2019-20:

1.       Rate cut
2.       Stance
3.       Inflation
4.       GDP growth
5.       Majority decision
6.       Monetary Transmission
7.       Lending limit increased for NBFC-MFIs
8.       Offshore rupee markets
9.       Liquidity support for NEFT
10.   Internal ombudsman for large non-bank Prepaid Payment Instrument (PPI) issuers


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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
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Index Funds vs Actively Managed Mutual Funds

There is an ongoing debate in India about Index Mutual Funds Vs Actively Managed Mutual Funds. Is the debate worth it? Which type of Mutual Funds are better for Indian market? Is Indian market mature enough to switch to Index Funds across all segments of Mutual Funds? Who is the winner?


What are Index Funds?

Index funds, as the name suggests, are the funds or the schemes that invest in a particular index. These funds purchase all the stocks in the same proportion as the index it is bench-marked to. This means the scheme will perform in tandem with the index it is tracking. For example, if an index fund is bench-marked to Nifty 50, it will buy all the 50 stocks in the Nifty index in the same proportion as Nifty 50.

Some examples of popular Index Funds include NSE Nifty 500 TRI, S&P BSE 100 TRI, NSE Midcap 100 TRI, S&P BSE Small cap TRI. Big institutions such as the Employees Provident Fund Organisation (EPFO) also invest through index funds rather than actively managed funds. Such funds are process driven rather than person driven. And the reason is obvious. These funds invest in an index and the manager doesn’t have to choose the stocks to invest. These are, therefore, also known as Passive Funds.

What are Actively Managed Funds?

Actively Managed Funds or Active Funds, or simply referred as 'Mutual Funds' are just the reverse of Passive Funds. These are the most preferred route for Mutual Fund investments in India as on date. In an active fund, the fund managers choose the stock to invest based on the goal of that fund. Here, the manager tries to beat the market by choosing better stocks. Nevertheless, the problem with active funds is that the return on these funds depends on the goal and efficiency of the fund manager. Moreover, even if you are able to find a good fund with a coherent manager, still there is some danger of what might happen in the case the manager quits and moves to some other company. Tracking the manager along with the fund becomes a headache for many investors. Since these funds have more freedom and flexibility on investments, they are expected to outperform the index funds.

There are hundreds and thousands of Actively Managed Funds to chose from. Some of the examples are ICICI Pru Value Discovery Fund, Reliance Small Cap Fund etc.

Why Index Funds are preferred?

1/ Low Total Expense Ration (TER)

These funds incur significantly lower expenses than actively-managed funds. For example, UTI Nifty Index Fund has an expense ratio of 0.20 per cent, whereas actively-managed funds may charge around 1 per cent on direct plans and around 2 per cent in regular plans.

2/ No dependency on Fund Manager

In the index funds, the stocks are not picked by the fund managers. These funds are merely copying the index. That’s why even if the fund manager of an index fund quits, it won’t create any havoc (unlike actively managed funds).
3/ Easy Selection of Funds
For the active funds, you need to read and understand the reason why the fund manager believes any stock can perform well in future. And this can be a very tedious job. On the other hand, the stock selection in the index fund is quite straightforward.



Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

SBI Fixed Maturity Plan (FMP) - Series 19 (1115 Days) Floats On

SBI Mutual Fund has unveiled a new fund named as SBI Fixed Maturity Plan (FMP) - Series 19 (1115 Days), a close-ended debt scheme. The tenure of the scheme is 1115 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 30 September 2019 to 07 October 2019.


The investment objective of the scheme is to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme.

The scheme offers a regular and direct plan. Both the plans will have growth option and dividend payout will be default facility.

The scheme will invest 60%-100% of assets in debt and invest up to 40% of assets in money market securities with low to medium risk profile.

The minimum application amount is Rs 5000 and in multiples of Re. 1 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme.

Entry and exit load charge will be nil for the scheme.

Benchmark Index for the scheme is CRISIL Medium Term Debt Index.

The fund manager of the scheme is Ranjana Gupta.


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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

Know About Open-Ended and Closed-Ended Mutual Funds

Mutual funds are differentiated using a lot of factors, one of which is categorizing it structure-wise. That divides mutual funds into 2 categories; Open-ended and closed-ended. The fundamental difference between the 2 arises when we talk about flexibility and ease of sale. Here’s what they are;

Open-ended Mutual Funds

These are the kind of mutual funds that do not trade in the open market. They don’t carry any limit as to how many units they can issue. Their NAV changes every day according to the market and the prices of the stocks and shares in the fund. These funds are traded on-demand at their NAV which depends on its underlying securities and is estimated at the end of each day. If you want to buy its units you need to buy it directly from the fund. Open-ended fund investments are priced at the fair market value which is the closing market value of listed public securities. Also, these funds don’t have any fixed maturity period.


Why open-ended mutual funds are beneficial;

● They are highly liquid since you can redeem them anytime.
● The past performance of these assets is easily available, so you can easily make a well-informed decision of investing in these.
● It is a good option for salaried employees since these can initiate SIPs into the fund of your choice.

Closed-ended Mutual Funds

Closed-ended mutual funds issue a fixed number of units that are then traded in the stock market. These are launched through NFO and then bought or sold in the stock market like a regular stock. The value of this kind of a mutual fund is based on the NAV, but the actual price is decided by demand and supply since it is traded at a higher or lower price than its real value. So these funds can be bought and sold at premiums or discounts to their NAVs. The units are bought and sold through a broker and have a fixed maturity period.

Here are a few advantages of dealing in closed-ended mutual funds;

● The investors are not allowed to redeem closed-ended mutual funds except when the maturity date expires. Hence, it helps investors have a stable asset base which does not have any frequent redemptions. This helps the investor make a profitable investment strategy without having to worry about inflows and outflows.

● These funds trade in the market almost like equity shares. This gives an opportunity to the investors to buy or sell the units at the real-time price which can be above or below the NAV. In order to trade, investors can also use stock trading strategies like margin trading or limit orders.

● The investors can enjoy both liquidity and flexibility with closed-ended funds. That can use real-time prices to sell and buy their funds according to the market. Also, since real-time information is available of all the stocks, the investors have the flexibility to decide what to do with their investments.


We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

Motilal Oswal Large and Midcap Fund Floats On - 26-Sep-2019

Motilal Oswal Mutual Fund has launched a new fund named as Motilal Oswal Large and Midcap Fund, Large and Midcap Fund - An open-ended equity scheme investing in both large-cap and mid-cap stocks). The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 27 September 2019 to 11 October 2019.

The investment objective is to provide medium to long-term capital appreciation by investing primarily in Large and Midcap stocks.


Presently, two options are available under the scheme viz. growth and dividend option (with dividend payout and dividend reinvestment facility).

The scheme would allocate 35%-65% of assets in Equity and equity-related instruments of large-cap companies with medium to high-risk profile, invest 35%-65% of assets in equity and equity-related instruments of mid-cap companies with medium to high-risk profile, invest up to 30% of assets in equity and equity related instruments of other than above with medium to high risk profile, up to 30% of assets would be allocated to units of liquid/ debt scheme, Debt, Money Market Instruments, G-Secs, Cash and Cash at call, etc. with low to medium risk profile and invest up to 10% of asset in units issued by REITs and InvITs with Medium to high-risk profile.

The minimum application amount is Rs 500 and in multiples of Re. 1/- thereafter.

The minimum additional amount is Rs 500 and in multiples of Re. 1/- thereafter.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period.

Entry Load: Nil

Exit Load: 1%- If redeemed on or before 15 days from the date of allotment.
Nil- If redeemed after days from the date of allotment.
Benchmark Index for the scheme is BSE 200 TRI.
The fund managers of the scheme are Aditya Khemani and Abhiroop Mukherjee.

We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
Capitalstars is a SEBI registered investment advisor. Schedule a call with Capitalstars investment consultant or drop a mail at backoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927

Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

Axis MF Announces Quarterly & Half Yearly Dividend under its schemes

Axis Mutual Fund has announced 25 September 2019 as the record date for declaration of dividend under the dividend option of following schemes. The amount of the dividend (Rs per unit) on the face value of Rs 10 per unit will be:


  • Axis Dynamic Bond Fund - Quarterly Dividend Option: 0.20
  • Axis Dynamic Bond Fund - Direct Plan - Quarterly Dividend Option: 0.25
  • Axis Dynamic Bond Fund - Half Yearly Dividend Option & Direct Plan - Half Yearly Dividend Option: 0.50 each.
  • Axis Strategic Bond Fund - Quarterly Dividend Option: 0.05
  • Axis Strategic Bond Fund - Direct Plan - Quarterly Dividend Option: 0.25
  • Axis Strategic Bond Fund - Half Yearly Dividend Option & Direct Plan - Half Yearly Dividend Option: 0.30 each.
  • Axis Regular Saver Fund - Direct Plan - Quarterly Dividend Option: 0.25
  • Axis Regular Saver Fund - Direct Plan - Half Yearly Dividend Option: 0.25
  • Axis Gilt Fund - Half Yearly Dividend Option & Direct Plan - Half Yearly Dividend Option: 0.50 each.
  • Axis Money Market Fund - Regular Plan - Quarterly Dividend Option & Direct Plan - Quarterly Dividend Option: 6.5 each.



We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
Capitalstars is a SEBI registered investment advisor. Schedule a call with Capitalstars investment consultant or drop a mail at backoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927

Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

Top 3 ELSS or Tax Saving Mutual Fund to Invest in 2019


Lets explore the top 3 Tax Savings Funds in India and I have not selected Axis Long Term Equity Fund the only reason being fund has almost reached AUM of Rs 9291 Cr, the bigger the size of fund scheme bigger the problem of fund manager. Here is a post where in i have mentioned how large AUM impact the fund returns click here to read the post

Funds selected are on basis of

Alpha Ratio
Risk - Reward Ratio
Rolling Returns calculation for 3 years
Out-performance in SIP Returns for 5 Years
Out-performance in Lump Sum returns compared to benchmark for 5 years
Funds in existence from 2008 which has seen the bear phase of global recession and bull phase later
Funds AUM below 5000 Cr
Funds provided returns more than 15% CAGR


# 1 : Reliance Tax Saver Fund

The Fund has consistently outperformed its benchmark (S&P BSE 100) and the ELSS category across various times. The fund marginally under-performed the benchmark and the category during the bull phase of 2003 to 2007. It did picked up pace in December 2007 and thereafter consistently outperformed both the benchmark and the category across all market phases.



Performance : Lumpsum Rs 1,000 invested in the fund on 08/07/2011 would have grown to around Rs 21771 (XIRR return of 16.82 per cent) as on July 8th 2016. A similar investment in the benchmark would have grown to Rs 14881 (8.27 per cent).

A monthly systematic investment plan (SIP) of Rs 1,000 for a period of five years from 08/07/2011 to 08/07/2016 (on a principal of Rs 60,000) would grow to around Rs 101913, delivering an CAGR return of 16.9% per cent where as the same SIP in benchmark fund would grow to 78992 with a CAGR of 8.4%


# 2 : Franklin India Tax Shield Fund

Franklin India Tax Shield manages an AUM of 2146 Cr as on 30/05/2016. Fund is highly invested in Banks and Financial Services Stocks,Automobiles and technology. It should be a top choice for risk averse investors seeking ELSS benefits.



Performance : Lumpsum Rs 1,000 invested in the fund on 07/08/2011 would have grown to around Rs 2073 (XIRR 15.67%) as on July 8th 2016. A similar investment in the benchmark NIFTY 500 would have grown to Rs 1528 with a modest XIRR of 8.83%

A monthly systematic investment plan (SIP) of Rs 1,000 for a period of five years from 07/08/2011 to 07/07/2016 (on a principal of Rs 60,000) would grow to around Rs 97845, delivering an XIRR return of 19.6% per cent where as the same SIP in benchmark fund would grow to 82443 with a XIRR of 12.5%

It is from the above data we can clearly identify the fact that Franklin Tax Sheild fund has clearly outperformed benchmark NIFTY 500 in Lumpsum as well as SIP returns.

# 3 : Birla Sun Life Tax Saver Plan

After a bad patch from 2008-2010,Birla Sun Life Tax Plan has made a big comeback in the last five years, with a good run since 2014. If you check the rolling returns graph below, after 2014 fund has outperformed benchmark index S&P BSE Sensex. The fund's overweight positions in engineering and capital-goods majors has paid off in the first part of 2015. So did its underweight positions in financial services and energy.



Performance : Lumpsum Rs 1,000 invested in the fund on 07/08/2011 would have grown to around Rs 2170 (XIRR 17.06%) as on July 8th 2016. A similar investment in the benchmark Sensex would have grown to Rs 1602 with a XIRR of 10.06%

A monthly systematic investment plan (SIP) of Rs 1,000 for a period of five years from 07/08/2011 to 07/07/2016 (on a principal of Rs 60,000) would grow to around Rs 99318 with a XIRR returns of 20.2% and SIP of Rs 1000 for same period in benchmark BSE SENSEX would have grown to 76670 with a CAGR of 9.6%

If you would like a fund which has proved itself across not one but multiple market cycles, this one fits the bill.

Points to remember while investing in ELSS

 Money invested in ELSS are directly related to stock market, risk is involved.
Subsequent investment is also locked for 3 years. For Example you invested via SIP on 01/06/2016 & 01/07/2016 then on 01/06/2019 your units purchased on 01/06/2016 will be available for redemption
And lastly, you should consider that you can’t reduce the impact of market fall, as you can’t switch or redeem investment before 3 years




Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com








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