Reliance Small Cap Is Under-Performing. What Should I Do?

This is one of the most common queries which is bothering many mutual fund investors from the past few months, and to such an extent that a large number of them are selling their units in panic mode. Reliance Small Cap Fund, a mutual fund scheme which used to give annual returns of 20%-25% is now giving returns in negative. So what to do now? Well, before getting to this question, let’s see why this scheme is underperforming.

Why Is Reliance Small Cap (G) Not Performing Well?

Most of us are aware of the downfall that equity market faced right after the announcement of the Union budget in February. Now what people don’t know is that small-caps and mid-caps were the market capitalization that got most affected by this volatility. This caused a slip in NAV of mid-cap and small-cap mutual funds. Reliance Small Cap Fund NAV as on Jan 01, 2018, was Rs 47.41, and right now (as on Aug 14, 2018) it is Rs 43.04, which means that in past 7 months, the unit price took a toll of around 9%. In simple terms, the investments made in January are now around 9% less, and past 6-months return of -7.96% (as on Aug 14, 2018) conveys the same. So now that we know the reason behind the fall, let’s see if you should stay invested or initiate a new investment in it or not.

What Should You Do?  

Mutual fund experts always say this, “If you want to enter the mutual fund market, then stay in it for a long-term, otherwise don’t,” and the reason behind that is the power of averaging that helps investors in making an exceptional profit in the long run, and the same is applicable with Reliance Small Cap Fund. Let’s see how.

As we discussed above the NAV of Reliance Small Cap in Jan was Rs 47.41, and now it is Rs 43.04. So, investing now means you will be buying more units with the same amount that you used to invest regularly. For e.g., let’s say you have a monthly SIP of Rs 4000, which you started in January. Now in that month, the total units you bought for Rs 4000 are 84.37, and in August the total units you bought with the same amount are 92.93. So, investing now means you will be buying the units at much lower levels and as the NAV will start recovering, the profits you make will be exceptional.

So, the answer to the above question is- don’t panic and keep accumulating, and stay invested in this scheme for the next 3-5 years at least, to enjoy the maximum benefits of Reliance Small Cap Fund growth plan.

Now you know that what you have to do with your Reliance Small Cap Fund. This scheme has maintained a rating of 4 stars and above, and at a time has provided annual returns of more than 30%. However, before making the final decision, do consult your financial adviser. If you have any more query about this scheme or want to get latest recommendations on mutual fund investments, then feel free to contact our experts at MySIPonline.

How SWP in ICICI Equity and Debt Fund will Beat Inflation?

How SWP in ICICI Equity and Debt Fund will Beat Inflation?

Providing balanced portfolio by investing in the various market caps through equity and debt, ICICI Prudential Equity and Debt Fund has shown impressive growth. The fund offered by the ICICI Prudential Mutual Fund has now reached the AUM of Rs 28,633 Cr as on Jul 31, 2018. The expense ratio of the fund is 2.13%. Many investors come with the query regarding the Systematic Withdrawal Plan from ICICI Prudential Balanced Fund; therefore, the financial analysts of MySIPonline have made research that whether the fund is right for SWP or not. All the details of the fund and withdrawal from the fund have been provided in the write-up further:

A Brief About ICICI Prudential Equity and Debt Scheme:

Launched in the year 1999, the fund invests its 60% of corpus in equities, 30% in debt instruments, and the rest 10% in money market instruments. This all provides the diversification to the fund. Providing high exposure to energy and financial sector, the fund managers Mr Sankaran Naren and Mr Manish Bhanthia have delivered 16-20 per cent returns in the past three and five-year periods.

Following the contrarian investment philosophy, the fund management team has majorly invested in large and mid-cap companies. Among debt holdings, ICICI Equity and Debt Fund has been providing the highest exposure to A1+ and cash equivalents. The fund has been selecting the stocks through the blend of value and growth investment strategy, investing in 75 companies in Aug 2018. The top five companies where it has a holding of 22% are ICICI Bank, NTPC, ITC, State Bank of India, and ONGC.

Is SWP a Good Option in ICICI Prudential Equity and Debt Fund (G)?

A popular service that is offered by the mutual funds is a systematic withdrawal plan. Investors can use the SWP to withdraw a specific amount from the fund on weekly, monthly, quarterly, half-yearly, or annually basis. SWP helps the investors and defeats the inflation if a person is invested for the long run.

For example, if an investor has invested the amount of Rs 10,00,000 in ICICI Pru Equity and Debt Fund in the year 2000, then the current value of the investment would be Rs 38,39,325. If a person withdrawal the amount of Rs 8,000 on a monthly basis, the number of installments have been 216.

The total amount that has been withdrawn by the investor would be Rs 17,28,000, which was grown at the rate of 13.32%. The post-tax returns of the fund are inflation adjusted, which help the investors beat the inflation without affecting the lifestyle. All these calculations have been performed by the financial experts of MySIPonline.

Being an aggressive hybrid fund, ICICI Prudential Equity and Debt Fund growth has provided the returns of 14.47 since its launch. Its NAV is Rs 128.93% as on Aug 16, 2018. It has provided the compounded returns of 18.73% in the past five years outperforming its benchmark, CNX NIFTY as well as its category’s average.

SWP could be a good alternative for an investor who wants regular income by investing in ICICI Equity and Debt Fund G. The past performances of the fund are consistently better than its benchmark, however, its future returns may differ which depends on various parameters. So, if you are looking for the investment in the fund, you must check whether it fits your risk profile and provide you with enough period.

What are the Best Results Achievable with TATA India Consumer Fund?

India has a gigantic consumer market. With the size of more than 1.3 billion people, you can imagine the potential available in the consumer products industry. This is the reason why almost every international brand of consumer products can be found in India. These brands have swelled very rapidly, for obvious reasons, and investing in them can be a viable option for securing your future. Considering this opportunity, TATA Mutual Fund came up with the idea of launching TATA India Consumer Fund. This fund is a congregation of the stocks of consumer based industries, thus establishing a promising platform for the buyers to achieve high growth through mutual fund investments.

Launched recently in December 2015, TATA India Consumer Fund (G) has been rated as a flagship fund due to its capacity to capture high energy from the market, through a well-lit portfolio precisely designed for Indian subscribers. The fund has accommodated all the top consumer products companies in its portfolio, thus creating a hub of growth and returns in a single venture. This article will throughout explain many details attached to TATA India Consumer Fund (Growth) which are important for you to get hold of to create a good investment plan.

Why to Invest in this Fund?

Let’s start with the most important question; why should you invest in TATA India Consumer Fund – Regular Plan (Growth)? One of the major arguments in favour of an investment in this fund is that it has a tremendous growth potential in it. The graph recently published by the AMC has sent shockwaves across the market, stunning the spectators as well as the critiques. Let’s have a look: -

As you can see from the graph here, the growth of TATA India Consumer Fund (the black line) is angled much higher than that of the benchmark (the red line). This distinction clearly portrays that the fund is indeed a high end product in terms of growth, perfect for anybody who is desirous to fly higher.

There are certain other reasons that may compel you to invest in this fund. Some of the most relevant ones have been shortlisted and jotted down here by the expert team of MySIPonline: -

• Excellent Rewards: Apart from being good on growth, TATA India Consumer Fund – Regular Plan (G) remains undisputed as far as the returns are concerned. Started less than year ago, the fund has gripped itself in the market with handsome returns that mount up to 26.75%, since inception. Also, the average annual returns in the short-term period (one year) have achieved a record-breaking level of 30.55%. 

• Tighter Exit Load Policy: One of the major mistakes that investors make is a premature redemption. They do not allow their funds to grow fully, and hence, suffer a great loss. As against the normal exit load duration of 365 days, TATA India Consumer Fund (Growth) has kept the tenure to 540 days, thus discouraging any premature redemption. This way, it promotes healthy investment by making the investor stay put for a longer period.

How to Invest?

Normally, you are offered two ways of investment – lump sum and SIP. But, to avail the maximum benefits you shall always adopt an SIP plan, because it lets you invest in smaller amounts over your investment horizon rather than requiring you to pour all your money at once. An SIP plan with MySIPonline will be the best possible measure for you to start investing. 

So, if you are eager to score success at mutual fund investing, then start an SIP investment in TATA India Consumer Fund via MySIPonline.

How To Get The Most Out Of Tata Digital India Fund?

Some mutual fund schemes are good, some are great, and then comes Tata Digital India Fund (G). The performance which this scheme has shown has even surpassed the highest expectations an investor can have with a fund. So, today we are going to discuss the basic details of this scheme and will see that is it a right time to make an investment in it.

All About the Scheme

This is an equity-technology sector fund which was launched on Dec 28, 2015, as an open-ended scheme and with the objective to provide investors with high capital growth by investing majorly in stocks of IT companies of India. This scheme gained huge popularity when it gave an annual return of 49.90% (as on Aug 02, 2018) and topped its respective category. Now, the main reason behind the instant fame was that it was the newest scheme in its respective category and had the lowest AUM, and despite that, it gave an excellent performance. Now, let's have a look at the basic detail of the scheme.

As of now, Tata Digital India Fund NAV is Rs 14.64, and the assets under management as recorded on Jun 30, 2018, are worth Rs 197 crore. It invests its fund in a diversity of different market caps and currently has 60.32% investment in large-caps, 33.70% in mid-caps, and 5.98% in small-cap companies. This diversification helps the fund in providing stable returns even when a particular market-cap is not performing well. As for additional charges, an annual expense ratio of 2.82% (as on Jun 30, 2018) will be charged from your principal amount and you will have to pay an exit load of 0.25% if you redeem your investments before 90 days.

Why & How Should You Invest?

Well, the first reason you should invest in this fund is the current portfolio allocation. The top 5 holdings of the scheme include top-notch companies like Infosys, Tata Consultancy Services, Tech Mahindra, NIIT Technologies, and Tata Elxsi. All these stocks have shown great performance even during equity market volatility, which shows the quality of the holdings.

The second reason is the returns of 3.72%, and 4.73%, which it has given in the past 1 and 3 months. This show that this scheme has started showing recovery and in the coming time will give a great performance.

Now we come to the second question, “How to Invest?.” Well, the common mistake which many investors make with sector funds is that they put all their investment in a single fund, which is totally wrong. To get the full benefit of this scheme, you should diversify your funds. For e.g., if you want to start a monthly SIP of Rs 10,000, then invest Rs 4000 in a large-cap scheme, Rs 4000 in a multi-cap scheme, and the remaining Rs 2000 in Tata Digital India Fund. So, even if this scheme does not perform well, other funds will give stability to your investments.

Now, you know that what Tata Digital India Fund is and how you can get the most out of it. But before investment, do consult your financial advisor as the risk involved with this scheme is very high. If you have any investment-related query, then you can contact us at MySIPonline.

See Your Wealth Grow with HDFC Mid-Cap Opportunities Fund (G)

Mid-caps are showing a recovery after a year of underperformance. This calls for the time to make an investment in these schemes. But, the most common question that arises is, in which scheme one should make an investment to mark good profits? Well, today MySIPonline presents you one such great scheme that has shown good performance even during volatile markets and the name of the scheme is HDFC Mid-Cap Opportunities Fund.

What Is So Special About this Scheme?

Launched on Jun 25, 2007, as an open-ended scheme, it follows the objective of generating long-term capital appreciation by investing predominantly in mid-cap stocks which show great possibilities for future growth. After the re-categorization, it is stated that the mid-cap schemes can only invest in stocks that rank between 101-250 in term of market capitalization. Currently, it has 86.10% of total equity investment in mid-caps, 10.71% in small-caps, and 3.19% in large-cap equities. The scheme also has a small portion of 4.23% of the total investment in debt instruments.

As for sector allocation, HDFC Mid-Cap Opportunities Fund has a major investment of 24.03% in the finance sector. The other sectors which hold a good amount of investment are engineering (12.35%), chemicals (8.76%), automobile (8.42%), cons durable (7.54%), and technology (7.22%). The top 10 holdings of the fund are from the above sectors include prime companies like Sundaram Fasteners, Cholamandalam Invest. & Finance, Balkrishna Industries, Hexaware Technologies, Voltas, RBL Bank, City Union Bank, Aarti Industries, Exide Industries, and Edelweiss Financial Services. For viewing a more detailed portfolio of this scheme, you can visit MySIPonline.

Basic Scheme Parameters

HDFC Mid-Cap Opportunities Fund NAV as on Jul 27, 2018, is Rs 57.001 and the value of the assets as recorded on Jun 30, 2018, is Rs 19,990 crores. The huge asset size shows the trust that lakhs of retail investors have in this scheme. The expenses that you have to pay annually is 2.26% of your principal amount and an exit load of 1% will be charged if you redeem your investments before 365 days. The minimum investment required to enroll for hdfc mid-cap opportunities fund growth scheme is Rs 5000 and you can start a SIP at MySIPonline for as low as Rs 500.

Past Performance

HDFC Mid-Cap Opportunities Fund has provided returns of 6.17%, 14.57%, 27.42%, and 20.59% in 1, 3, 5, and 10 years, respectively and has outperformed its benchmark at all occasions, which has shown returns of 3.35%, 13.24%, 22.82%, and 14.41% in the same time period. The scheme has also outperformed its category and is ranked 1st with respect to 10-year returns. It gave its worst performance during the bearish market of 2008, which it recovered from soon and gave an all-time best performance between March 2009- Mar 2010.

Why Choose This Scheme?

HDFC Mid-Cap Opportunites Fund currently has one of the best portfolios in the mutual fund industry. As discussed above, the scheme has a major investment in finance sector which has started showing recovery and will soon reach new heights, and when that happens the fund will start giving some of the best returns.

This covers our topic for today. HDFC Mid-Cap Opportunities Fund is a great scheme and has never disappointed any of its investors. However, you should consult your financial advisor before making the final decision to know that if this scheme suits your risk appetite. If you have any question about this or any other mutual fund scheme, then you can contact our experts at MySIPonline.

How SBI Bluechip Fund Beating Street Estimates of Investors?

When a fund stands out at various fronts, then definitely an efficient fund manager is supervising it. Therefore, the financial analysts of MySIPonline have researched about SBI Bluechip Fund (G), which has been performing consistently well from past many years. This review has been provided with full details in the article further as under:

About the Fund:

SBI Bluechip Fund has started its journey in the year 2006 and had reached to one of the largest AUMs of the category with Rs 19,064 Cr as on Jun 30, 2018. The expense ratio of the fund is 2.44%.
The open-ended large-cap category fund, its average market capitalisation is Rs 104,048.37 Cr as on July 28, 2018. This capital is invested 61.18% in giant companies, 26.19% in large-cap companies, 11.61% in mid-cap and 1.02% in small-cap companies. The asset allocation of the fund is 93% in equity, 5% in money market securities, and 2% in debt instruments.

The fund is holding stocks in 58 companies of diversified sectors, which majorly include finance and banking, automobile, construction, FMCG, healthcare sector, etc. The top companies, where it is investing are HDFC Bank, Larsen & Toubro, Mahindra and Mahindra, ITC, and Nestle India.

Past Performance Analysis:

Following S&P BSE 100 Index, SBI Bluechip has delivered the returns of 11.56% since its launch. The fund has beaten its benchmark and category average in the five and seven years compounded returns. These returns were 19.25% in the five years and 15.47% in seven years.

The alpha generated by the fund in the past three years as provided on June 30, 2018, by the financial experts of MySIPonline was 0.10%. The highest returns of the fund were in the year 2009 with 87.9%. The last two years returns of the fund for the years 2016 and 2017 were below the benchmark, but higher than the category average.

The also incurred less losses in the year 2011 bearish market as well as in 2015, when the benchmark and category both were in negative, but it has given better returns to investors.

Fund Manager:

The fund manager and her convictions both are working magnificently towards SBI Bluechip Fund Growth. Ms Sohini Andani follows the blend of growth and value investing as well as the top-down and bottom-up approaches of investing. She used to keep track of various sectors, where she can invest to make the fund grow faster.

Ms Andani joined SBI fund management team in 2007 as the Head of Research. She has an overall experience of 23 years in the financial space, portfolio management, equity research and fund management. Under her guidance, the fund has shown high growth, as she gets associated with the fund in the year 2010. Her confidence in the financial sector, where she invests most leads the fund to better growth.

The NAV of SBI Bluechip Fund G is Rs 39.053 as on July 28, 2018. It is suitable for the investors who have an appetite of tolerating a moderately high-risk on their principal amount. Investors who want to achieve goals of wealth creation should invest in the fund for 5 or more years.