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Showing posts with label sip. Show all posts
Showing posts with label sip. Show all posts

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.


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








Real Estate vs Mutual Funds-Which one is Better Investments?


Mutual Funds Vs Real Estate is a very interesting question that seems to haunt most of the 20+ and 30+ somethings (including yours truly). My answer to your question is both.

Real Estate is a seriously long term where your minimum term maybe around 10-20 years before you make some serious money of it. Only in very specific cases, there is appreciation in short term, but that's a minority. If you are talking about serious money, then you need to bide your time.

One rejoinder to the above point is that when we talk of Real Estate, we should be talking of investment and not the appreciation that the flat (where one resides) undergoes. That's paper money and can't/shouldn't be liquidated. What good is an investment if one doesn't have a roof over the head?

MF is good in the short, medium and long term. The advantage of MF is its adaptability (it's not easy to sell one site and buy another as compared to selling one MF and buying another), Liquidity and ease of operation.

Since whether to invest in mutual funds or real estate was daunting me also I wanted to write about it from a long time and 2 things suddenly happened in a week which made me write this post, first, one of my reader suggested to me to write an article on mutual funds vs real estate and second is I wanted to change the perception of investors that real estate is the best investment which I realized after having conversation with one of my friend.

If you’re in your twenties or thirties, it makes more sense to invest in equity or balanced mutual funds instead. Not convinced? Here’s why.

So here is what happened in last week of month of June 2016 which made me write this post.

One of my close friend staying in my locality in western Suburbs of Mumbai named Borivali West(It could be any locality the pick one and compared it with MF) ,was discussing how he purchased his 2BHK (985 Sq Ft) flat at Rs 85 Lakhs (78 Lakhs Price + 7 Lakhs Including Stamp Duty, Registration fees, brokerage etc) way back in 2008 and the best part (according to him) was "His flat is now worth Rs 1.65 Cr and his investment has given him double the returns in 8 years".

After the explanation of CAGR, he was surprised to see that in terms of returns it is very less but still he stood on his argument. On further digging, I came to know that he took a home loan of Rs 45 lakhs and paid Rs 40 lakhs from his savings in order to buy his home.
It was the home in which he was staying so by no means it can be considered as an investment.
We both literally went into a tussle to prove our point,
He was of the opinion that investing in Real Estate Vs Mutual Fund was better and I was of the opinion that investing in Mutual Funds VsReal Estate was better.
With all facts and figures on tables finally, I won the argument which is listed below which was an eye-opener for me and it may be for you.


As on Jul 2016, his outstanding loan is 35,78,000 and he got a tax exemption of 2,00,000 from Interest which can be claimed as a deduction under Section 24 (Rs. 150000/- up to A.Y. 2014-15).
Since I selected Equity Linked Savings Funds the interest which heclaimed in Section 24 does not have an impact in my MF calculation, this is the only area where he gets an upper hand.

Let me begin with the investment strategy suggested by me which is a mixture of STP & SIP
Since he had 40 Lakhs as his investment at the time of purchasing the home it was decided to transfer the amount in Birla Sunlife Cash Plus liquid fund and an STP amount of Rs 40000 to Birla Sun Life Tax Plan. (I would have selected Axis Long Term Equity ELSS fund but in order to create a realistic scenario BSL Tax Plan was taken as it has given moderate returns.)


Transferor Scheme: Birla Sun Life Cash Plus - Growth
Transferee Scheme: Birla Sun Life Tax Plan-Growth Option
One Time Invested Amount: Rs 40 Lakhs
STP First Date: 25th of every month from 25-03-2008 till 17/07/2016
Transfer Amount: Rs 40000

By Investing Rs 40 Lakhs in 2008 in STP your money would have grown to Rs 99.37 Lakhs in 2016 at a CAGR of 12.05%
On the other hand, since he had a loan of Rs 45 Lakhs and an EMI of Rs 40000 it was suggested that he remain invested via SIP in Large Cap fund of HDFC Top 200 for Rs 40000 a month. The reason for the selection of HDFC Top 200 is because it was one the best fund recommended by most of the MF distributors.


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

Kotak Mahindra MF Announces Quarterly dividend under its schemes


Kotak Mahindra Mutual Fund has announced 20 September 2019 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be:
  • Kotak Equity Savings Fund - Regular Plan - Quarterly Dividend - 0.1529
  • Kotak Equity Savings Fund - Direct Plan - Quarterly Dividend - 0.1700
  • Kotak Debt Hybrid - Regular Plan - Quarterly Dividend - 0.2736
  • Kotak Debt Hybrid - Direct Plan - Quarterly Dividend - 0.3036
  • Kotak Gilt Investment PF & Trust Plan - Regular Plan - Quarterly Dividend - 0.2673
  • Kotak Gilt Investment - Regular Plan - Quarterly Dividend - 0.3282
  • Kotak Dynamic Bond Fund - Regular Plan - Quarterly Dividend - 0.2172
  • Kotak Dynamic Bond Fund - Direct Plan - Quarterly Dividend - 0.2301
  • Kotak Credit Risk Fund - Regular Plan - Quarterly Dividend - 0.2513
  • Kotak Credit Risk Fund - Direct Plan - Quarterly Dividend - 0.2597
  • Kotak Medium Term Fund - Regular Plan - Quarterly Dividend - 0.2194
  • Kotak Medium Term Fund - Direct Plan - Quarterly Dividend - 0.2409



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

Invest in Mutual Funds in India – But read these common mistakes first


Many of us invest in Mutual Funds in India. However, we may hardly learn the stories of those who already invested and their problems, mistakes or issues. Let me share a few of them with you.

With the advent of the internet and online advisory portals in the investment world, many of Mutual Fund investors by default think that they are capable of handling their portfolio on their own and claim themselves as Do It Yourself or DIY investors.
A typical journey of Mutual Fund investor in India starts as soon as he starts to earn. However, in many cases what I found is that their first entry into equity market is not through Mutual Funds but through DIRECT stocks. Because he hears a lot of success stories through their colleagues, relatives and again so-called media.
After burning their hands by experimenting in direct stocks, futures and options, they feel equity mutual funds are the best choice. Because by that time, they start to read about Investment Gurus like Warren Buffet or Charlie Munger. After learning the basics of investment and the tags like BUY RIGHT and SIT TIGHT, they enter into the world of Equity Mutual Funds.
But do you feel by jumping into equity mutual funds their investment mistakes vanish within a day? Sadly NO. The reasons are as below.
You must invest in Mutual Funds in India, but learn the basics of investing at first. Once a young or fresh energetic investor decided to jump into the Mutual Fund world, they start to search their answers in Google BABA. Google will provide you wonderful Crores of results for your one keyword research. Slowly new investors start to look for readymade answers. Because he or she does not have time to learn and digest and then invest.
Their first priority is that they MUST invest in Mutual Funds which are BEST and will remain BEST forever. Because who wants a BAD choice? We are human and we run behind BEST only. But sadly they forget what one must do before Invest in Mutual Funds in India. They jump into my fund choices and invest BLINDLY. Along with mine, they also dig into other finance blogs, portals like Moneycontrol or Valueresearch rating. Finally, they start with the BEST and STAR rated funds.
This will go for a few months or years. Suddenly they notice that a finance expert or a few online portals which he is following has recommended a few more funds due to the changed scenario or based on India Growth stories. This makes the new investor that if I do not invest in such a solid fund which is currently a trend and many are recommending, then I may lag behind others or my returns may be lesser than others. Hence, let us add this or these new funds in my investment.
Slowly the start with 2-3 funds now increased to 7-8 funds. Because they need all the BEST recipe available in the Mutual Fund industry. They feel fear if one best performing fund or 5 star rated fund is not in their portfolio means a HUGE LOSS or a MISTAKE.
Hence, they go on adding new funds based on INFORMATION provided by Google BABA. Finally, their portfolio consists of 10+ funds.
By this time, it does not mean they are running the monthly investment (SIP) in all such 10+ funds. They simply stop the ongoing SIPs and start afresh SIP in a new fund which makes them eye-catching. Hence, even though they may be holding around 10+ funds, their monthly investment is only in 4-5 funds. But due to their doubt on their own decisions and the laziness, they never come out from the existing funds. One more reason why they don’t want to switch is that they want to come out from funds only with PROFIT, not with LOSS.
Finally, their mutual fund portfolio ended with these below mistakes.
# No Goals
While investing in Mutual Funds, they just looking for fancy returns but sadly they never set their financial goals. This should be the first step of any investor. However, around 99% of so-called mutual fund investors will hardly bother about investing based on financial goals.
# No Asset Allocation
When you did not set any financial goals, then no question of thinking about debt to equity asset allocation. Hence, many of these investors portfolios are highly linked to equity funds. They may be holding Liquid, Abirtrage or other types of debt funds but not for the purpose of asset allocation but with the purpose that someone suggested them that they beat the FDs in long run and better than Bank FDs or other alternatives of debt part.
# Fancy Funds
If you look into their portfolio, you notice that they are holding all those FANCY, top RATED or sector funds. One thing is common that they are holding all those fancy funds to create a good recipe of the portfolio.
# Overexposed to the sector or particular market cap
They usually exposed highly towards one or two particular sectors or heavily invested in Mid and Small Cap without bothering the Large Cap. Because they noticed that sector funds, Mid Cap Funds or Small Cap Funds have given around 15% to 25% returns RECENTLY. They forget for a moment that by doing this activity, they are risking their money and they never bothered about overlapping.
# Not ready to reduce the fund numbers
It may be due to laziness or feeling uncomfortable to invest only in 3-4 funds. Because as per them, lessor the funds means higher the risk as this approach will not provide a proper asset allocation.
# For many of them switching to another fund under LOSS means a REAL loss
When your fund is underperforming and it is under loss, then when you switch to another fund, then there may be a certain loss for taxation purpose. However, as an equity investor, it is not a REAL loss but I call it as a notional loss. Because you are not coming out of equity, but simply shifting from one fund to another fund. Hence, whatever the loss in such activity is a notional loss but not the real loss. But sadly many are reluctant to do this. Because they decided that by hook or crook, they have to come out with PROFIT.
Investing in Mutual Funds nowadays is like buying a product in Amazon or Flipkart. But do remember that in Amazon or Flipkart, you are buying a product to consume but not for investment. Hence, never compare the ease of buying products on Amazon or Flipkart with your online mutual fund buying.

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
  

Mutual Fund industry wants new govt to act on consumption, investment



Asset managers Thursday said Prime Minister Narendra Modi should focus on ways to boost investments and also the "soft" private consumption

The industry welcomed Modi's win for a second term, saying this will ensure policy certainty.

The market will focus on steps taken by the government to encourage investment and give a push to consumption, which is hitting a soft patch," Kotak Mahindra Mutual Fund's Managing Director and Chief Executive Nilesh Shah said in a statement.

He added that the voters have shown a "maturity" in voting the same government, which will help do away with the policy uncertainty.

Industry body Amfi's Chief Executive N S Venkatesh said he expects the political stability to drive pro-reform economic agenda.

"We now look forward to the new government creating a conducive investment environment for the financial asset class," he said.

The new government will have to "deftly" handle issues like headwinds like growing oil prices and global trade wars which are being faced by the economy, LIC Mutual Fund's Head of Product and Business Development Lav Kumar said.

He added pace of reforms in various sectors will gain pace and the growth rate will also accelerate.

As per the results and trends available, the National Democratic Alliance is set to retain power, with the BJP alone having a single-party majority.


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

6 Points to Remember Before You Review Your Mutual Fund Portfolio





1. Tenure: 

For Example, While going through Krishna's portfolio, I realized his first investment was in the ELSS fund. He had done SIP in an ELSS fund from the last 12 months. ELSS funds have a lock-in period of 3 years. So if he plans to move his present funds to any other ELSS fund, he has to wait for the next 3 years. If he keeps switching between ELSS funds every year, his portfolio will be full with a bunch of ELSS funds.

2. Index Funds: 

Index funds are a very crucial part of a long term investment portfolio. Krishna portfolio had a missing component of index investing. So, I explained to him Index Investing and how to make the best use of Index funds in investment. I personally prefer investing through Index ETF. Index Funds Returns, in the last 20 Years - NASDAQ 100 is up +468%, DOW JONES is up +191%, GERMAN DAX is up +163%, S&P500 is up +158% and most surprising is India Sensex return. It is up a whopping +928%.


3. Direct Mutual Funds: 
Krishna's portfolio had all regular funds. TER of direct mutual funds is lower than regular mutual funds. TER (Total Expense Ratio) has a direct bearing on your returns massively through the power of compounding. For example, Rs 1 lakh over 10 years at a rate of 15 percent will grow to Rs 4.05 lakh. But if we consider an additional expense ratio of 1.5 percent, your actual total returns would be Rs 3.55 lakh, nearly 14 percent less compared to direct funds. So, the selection of direct mutual funds over regular mutual funds is very important.


4. TER (Total Expense Ratio):

We have already discussed TER in the above point. But, even in the direct fund, TER keeps on fluctuating and communicated to investors through Change in Base TER (Total Expense Ratio) notice/mail from funds. This change must be keenly checked, to align your investment projections and monitor your return impact.



5. Change in Mutual Fund scheme name and changes of fundamental attributes:  
Change in Mutual Fund scheme name and changes of fundamental attributes can have an adverse impact on your investment projection and returns. This might change your overall reason for holding a particular fund.

6. Goal

Last but not least, GOAL. In investing, the goal is your idea of the future projected return combined with investment strategy and timelines. Before mutual fund portfolio review, check whether your goals are changes. In the case of Krishna, he had a change in goal duration and amount. 

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

Reliance Mutual Fund Introduces New Hybrid Schemes and Side Pocketing In Its Debt

Reliance Asian country Life plus Management Company declared the modification of its theme info documents (SIDs) during a host of its debt and hybrid funds. The schemes during which a aspect pocketing provision has been introduced area unit seventeen in variety as well as Reliance radical Short length Fund, Reliance Strategic Debt Fund, Reliance Short Term Fund, Reliance Prime Debt Fund, Reliance securities industry Fund, Reliance Low length Fund, Reliance Liquid Fund, Reliance financial gain Fund, Reliance Hybrid Bond Fund, Reliance Floating Rate Fund, Reliance Equity Hybrid Fund, Reliance Equity Savings Fund, Reliance Dynamic Bond Fund, Reliance Credit Risk Fund, Reliance Banking and PSU Debt Fund, Reliance Balanced Advantage Fund and Reliance Arbitrage Fund. Investors are given associate degree exit-load free window of one month to exit the schemes in question which is able to endwise twenty-fourth Sep 2019. This exit amount has got to incline as a result of the introduction of an aspect pocketing provision constitutes an amendment of basic attributes of a fund theme.


Side pocketing is that the creation of segregated portfolios in the role of debt once there's a downgrade in paper control by a theme below investment grade or once there's a default. A pocket permits associate degree capitalist to exit the remaining unsullied a part of the debt theme at the can and still take pleasure in any recovery within the debt later. this can be impracticable if the AMC simply writes off the debt. it's associate degree possibility given to fund homes by the Securities and Exchange Board of Republic of India (SEBI). Fund homes nowadaysdon't seem to be mandated to use this procedure if a credit event happenswhat is more, investors ought to note that the present action of the fund home is simply associate degree sanctionative provision. It doesn't essentially mean that Reliance fund can plow ahead and implement aspect pocketing within the involved theme. Finally, aspect pocketing has got to be done on the day of the credit event and thus it can not be wont to retrospectively for past downgrades/defaults. bound debt schemes of Reliance fund were exposed to debt issued by Reliance Home Finance and Reliance industrial Finance that was downgraded to default in April-May 2019 and also the paper in question was written down.


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

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Investors can directly buy mutual funds on stock exchange

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