Showing posts with label Equity Mutual Funds. Show all posts
Showing posts with label Equity Mutual Funds. Show all posts
Saturday, April 19, 2014
Thursday, July 26, 2012
Sunday, July 01, 2012
Monday, April 16, 2012
Sunday, January 23, 2011
India on a roll...12 MF schemes feature in Best 25 list
That India is on the move is a well articulated fact. And, when an economy consistently does well for a number of years, naturally there is a cascading effect on the capital market as well. India is no exception to that age-old economic rule. Its stock market has gained substantially in terms of market cap as well as in its stature among the world's top markets in the world. Last year's record FII inflow and the huge interest in new issues is ample proof of that.
Monday, September 20, 2010
Sunday, September 12, 2010
Friday, September 03, 2010
Mutual Fund industry's AAUM up 3% in August
The Indian mutual fund industry had a better August with the average assets under management (AAUM) of the industry growing by a respectable 3.30%.
The AAUM of the Indian Mutual Fund industry increased to Rs6.87 lakh crores in August from Rs6.65 lakh crore in July, according to data published by the Association of Mutual Funds in India (Amfi).
Tuesday, August 24, 2010
Tuesday, August 17, 2010
Thursday, June 17, 2010
Sunday, January 03, 2010
Mutual Funds Investment Picks - 2010
The year 2009 started off on a subdued note for equity investors but by year-end both the BSE Sensex and Nifty were trading 80 per cent higher. With the markets trading at a price-earning multiple of well over 21 times from 11 times at the start of year, the upside in the indices may be limited from here on. So equity investing in 2010 may require greater stock selection skills. Why not select actively managed diversified funds for your portfolio?
In emerging markets such as India there are several diversified funds that have managed to deliver better-than-index returns. However, these funds, even if they deliver better returns, may also, at times, take on higher risk.
While comparing the top performing equity schemes whose returns are identical, investors can look at additional factors such as beta and expense ratio to gauge the risk return profile. Investors planning to take exposure to equity funds should, of course, pick funds with a proven track record over an entire market cycle.
Here there are three funds from the large and mid-cap space that investors can consider for long-term wealth creation.
HDFC Top 200: This fund is among the few to consistently remain on the buy list due to its steady returns across market cycles. Its performance over the year has validated our recommendation.
HDFC Top 200, which invests in the top 200 companies by market capitalisation, despite its ever growing asset size (Rs 5,781 crore) continued to maintain its tempo and beat its benchmark BSE 200 by a wide margin.
For instance, over a three- and five-year period, the fund outpaced its benchmark by 10 percentage points. Even during the market meltdown in 2008 the fund contained the losses better.
In 2008 when most of the funds preferred to move in to cash to protect their portfolios, the fund had the grit to stay invested. This helped in a neat recovery from the market lows; the fund went on to generate returns of 96 per cent over a one-year period and was one among the top ten performers over this time frame. In its November portfolio, the fund's preferred sectors were banks, pharma and consumer non-durables. Despite its huge asset base the fund adopts a buy and hold strategy. To prop up its return, the fund invests 10-15 per cent of the assets in mid-cap stocks (with market capitalisation less than Rs 7,500 crore).
DSP BlackRock Equity: DSPBR Equity and DSPBR Top 100 more or less has similar investment strategy in selecting sectors. But the former invests sizable assets in mid- and small-cap stocks while the latter sticks to its mandate of investing in large caps. The advantage of DSPBR Equity is that the fund prefers to stay invested in equities irrespective of the market condition and despite the presence of the mid and small-cap stocks (this segment being more prone to volatility). This demonstrates the fund's conviction in its investment strategy. Even during 2008, with reasonable exposure to mid and small-cap stocks and lesser cash position it withstood the market correction and contained losses. Clearly, stock-picking strategy has held the key. Though the fund is benchmarked against Nifty, one-third of the assets are invested outside the Nifty basket.
For the risk it has assumed the fund compensated its investors and concurrently outpaced its benchmark by over 10 percentage points over three and five-year periods. Good stock selection strategy and a lower beta than its peer DSPBR Top 100 were key reasons for DSPBR Equity being a better choice for your portfolio. In its November portfolio the fund's top sectors were software, consumer non-durables and pharma.
Birla Sunlife Midcap: A consistent performer across the market cycles, this fund outpaced its benchmark over a three and five-year period by a good margin and can lend support to one's portfolio returns. It is therefore worthy of a place in your core portfolio.
Having said this, some large cap funds with lower risks generated returns as good as the top performing mid-cap funds over the past five years. Midcap funds such as Birla Midcap generated very good returns during the bull phase of the market compared with lesser “beta” stocks, implying that they have the ability to identify the winner ahead of market rallies.
The fund also dilutes its holding risky sectors once there are signs of over-heating and moves to defensive sectors to protect its portfolio.
The fund's one-year performance emphasises that it has timed its sector calls well during this ongoing rally. However, given the extraordinary gains that this fund generates during bull phases, investors would do well to occasionally book profits to cash in on such rallies. In its November portfolio the top three sectors were banks, power and finance which together accounted for less than 30 per cent of the assets. The fund has a well diversified sector allocation and its assets are spread across 22 sectors.
via BL
Saturday, January 02, 2010
Thursday, August 13, 2009
Thursday, August 06, 2009
Monday, April 27, 2009
Tuesday, January 20, 2009
Friday, December 26, 2008
The great mutual fund crisis
Srinivas Chittaluru is not the kind of man who reads four pink papers with his morning coffee and then devours research reports with breakfast. With around Rs 10 lakh in the market, you'd think this 41-year-old software engineer would be far more tense than he is about the state of the markets. But Chittaluru, who has been investing since 1995, has seen the market rise and fall and knows it will ultimately stabilise. More importantly, he has not put his money in stocks and has chosen to invest only through mutual funds. Unlike stocks, mutual fund investment is less risky and offers scope of diversification, he says. And he's tested this for himself. He moved his equity investments to debt funds this January, and has also branched out into gold and new thematic funds, which he hopes will pay out over the next three years or so. Chittaluru could be the poster-boy for the Indian mutual fund industry savvy and unfazed by temporary swings.
But why are there so few of them in the country? Retail participation in mutual funds in India is pathetically low; less than 3% of household savings go to MFs, compared with over 15% in the developed countries. So where do people invest if not in funds? They swing wildly between two extremes safe and poorly paying bank accounts on the one hand, and direct equities on the other. The reason why funds are not on the preferred list of retail investors is largely due to the way in which fund houses in India operate.
Wednesday, December 17, 2008
Monday, October 06, 2008
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