Outflows Increasing in Hybrid Funds; Is the Debt Crisis Haunting Hybrid Portfolios?

The growth in the combined AUM of hybrid mutual funds is in negative for quite a while. In June 2019, hybrid portfolio witnessed net outflows of more than Rs 2,300 crore. Not only in June but the downtrends in the AUM of hybrid schemes has been going down since a couple of months. The debt crisis in many of the trusted NBFCs might be a major reason for that but the experts at MySIPonline suggest there might be more reasons for investors to step out of the mixed portfolio.

NBFC Crisis Is a Major Reason

The outflows in hybrid schemes have been overpowering the inflows for a long time now. The downtrends in AUM of hybrid schemes started to ignite after the introduction of Dividend Distribution Tax in March 2018. However, in the last few months, more investors have been going away from hybrid schemes and are switching towards pure equity scheme. Clearly the defaulting of fixed income securities issued by various prominent non-banking financial institutions have feared the investors of debt as well as hybrid mutual funds. The net outflows in the liquid fund for the last month were over Rs 1.5 trillion but the equity mutual funds witnessed tremendous inflows. Hence, it can be clearly observed that the investors have been avoiding the fixed income securities and are shifting focus towards pure equities. The debt crisis is the most influential factor due to which the investors have been losing interest in the hybrid funds.

Other Supporting Reasons

Those who invested in hybrid mutual funds for regular dividends have deserted as the fund managers have stopped paying regular dividend after the introduction of dividend distribution tax.
The equity market is not doing well in the last few years and its effect can be seen on the performance of hybrid schemes as well. Due to continuous under-performance, many investors have stopped investing further.

Should you Stop Investing in Hybrid Funds?

Absolutely not. Hybrid mutual funds are chosen for risk-adjusted returns from a mix of debt and equity instruments. The factors that are responsible for outflows in hybrid schemes are temporary and must have no effect on the mentality of long term investors. These funds are chosen by a large number of investors. Market trends are lesser effective on the performance of hybrid schemes. Suitable investors should keep investing regardless of inflows or outflows in the category.

What are the Top Performing Hybrid Schemes?

Many hybrid schemes have been doing a great job in the recent market and the investors can choose best in different sub-categories of the hybrid mutual fund.

1. Aggressive Hybrid: ICICI Prudential Equity & Debt Fund, Mirae Asset Hybrid Equity Fund, Reliance Equity Hybrid Fund
2. Conservative Hybrid: ICICI Prudential Retirement Fund, Aditya Birla Sun Life Regular Savings Fund, UTI Regular Savings Fund 
3. Equity Savings: HDFC Equity Savings Fund, Kotak Equity Savings Fund,  Axis Equity Saver Fund 

Those investors who are planning to move away from hybrid schemes need to re-check their investment objective. Some hybrid schemes are still performing better than many of the pure equity schemes and if the investment objective is not looking within reach, then re-structuring of the portfolio can be done under a financial expert. These funds aim to provide risk-adjusted returns from a mixed portfolio of different asset class and the investors can enjoy capital gains from multiple assets. This feature is not available in pure equity or debt scheme. Following are the best performing hybrid funds which can be chosen to make a better investment plan in mutual funds. To get the best recommendations regarding mutual fund investment, connect with the experts at MySIPonline. 

How Sundaram Rural and Consumption Fund is Helping India Getting Rich?

India is one of the most populous countries in the world. Nearly 70% of the population still lives in rural areas. As a result, the country is ailing with problems like unemployment, poor infrastructure, improper sanitation, and depleting quality of life. The government has been working with full force to eradicate these problems and build a stronger, happier society where every person gets the best of life.

Promoting industries in the backward sections of the society is an important step in ruling out the above mentioned problems. And with mutual funds such as Sundaram Rural and Consumption Fund, this task has become even more possible. This fund is specially designed to source more capital from the market and inject in the rural based companies.

Understanding the theme

MySIPonline – India’s leading online investment brand – has put out a detailed outlet of Sundaram Rural and Consumption Fund (G). It will help you to understand how this fund can work for the betterment of the investors and the society at large. Let’s see how it all works.
Sundaram Rural and Consumption Fund – Regular Plan, previously known as Sundaram Rural India Fund, is a thematic fund that direct its capital in rural based companies. It strives to create wealth by promoting these companies and helping them to achieve better yields, every year. In other words, it works as a bridge between the providers and seekers of the capital with an aim to promote and develop the poorer sections of India.

The Bio Data

When investing in a fund, it is important to take note of its key highlights. Sundaram Rural and Consumption Fund (G) is aimed at a noble cause, but from a business point of view this reason is not enough for initiating an investment in it. Hence, the experts of MySIPonline have penned down the main details about this fund that will help you to gauge if it deserves your money. Let’s take a look at these details: -

1. The Age : Sundaram Rural and Consumption Fund is working since 2006. It is geared towards promoting rural areas and creates capital through diversified equity portfolio. Normally, a fund is considered fit to invest if it has passed at least 5 years in the market. Since Sundaram Rural and Consumption Fund G has been in the market for over a decade, it suffices this requirement. 
2. The Wealth : Over the years, Sundaram Rural and Consumption Fund (Growth) has accumulated a wealth which is worth ₹2, 347 crore as valued on 31st May 2019. This is a sufficient corpus to initiate further expansion and can lead to better future prospects. 
3. The Expenses : The fund expenses is an inevitable part of any mutual fund. However, it should not exceed the maximum limit set which is 3%, currently. In case of Sundaram Rural and Consumption Fund (G), this ratio sits at the value of 2.17%. This tell-tales that the expenses are well under control and the resources are utilized optimally. 
4. The Returns : In the past, Sundaram Rural and Consumption Fund – Regular Plan (G) has given attractive returns, surpassing the performance of the benchmark (NIFTY 500 TRI) and the peers. The last five-year yield sits an average of 14.51%, while the yield to date average out at 11.52%. 

On the basis of the above information, it will be justified to say that Sundaram Rural and Consumption Fund (G) is indeed a good investment option. By investing in it, you can grow yours as well as the country’s wealth in a few years. For making the best financial plan, take assistance from MySIPonline. 

Why Axis Focused 25 Fund is in the Top Recommendations of Wealth Experts?

The equities hold a very large share in the mutual fund market. There are tonnes of products of various genres in the market, ready to be tapped for growth and returns. However, it is reasonably difficult to identify and decide which equity funds – large caps, mid-caps and small caps – hold correct valuation and will perform well in the future.

Axis Focused 25 Fund, being an equity-oriented multicap fund, provides the liberty to enrich the portfolio with the prowess of all types of equity stocks. This then allows the freedom of balancing the stocks on the basis of various merits, including their market valuation. This fund is best for creating a robust portfolio set in the long-term, which can provide capital appreciation and achievement of goals.

Why Experts are Recommending Axis Focused 25 Fund (G)?

From the point of view of MySIPonline’s experts and other market gurus, multicap funds hold a superior position in comparison to other funds, as far as valuation of the funds is concerned. Normally, each category fund has to be valued separately to decide which fund will perform better. However, this drill is easier in multicap mutual funds since not many but only one fund has to be valued. Also, there is a flexibility of adjusting the stocks (large cap, midcap and small cap) in accordance with the market so as to ensure that the portfolio is devised in the best possible manner and no overpriced stocks are included in it.

What was the Past Performance of the Fund?

Besides having the flexibility to involve multiple stocks, Axis Focused 25 Fund Regular Plan Growth won the experts’ recommendation on the basis of its past performance. The fund has given remarkable returns in the past and has also been able to keep a steady growth. If we calculate average yield produced toll date by the fund it comes out to 16.24%, which is a decent figure. The fact that the fund has been recently introduced in 2012 further complements its performance capability, since it is a remarkable achievement in such short time. Also, a comparative analysis of the fund reveals that it has stayed well ahead of the peers and has also beaten the benchmark. The comparison is shown below in the table for your reference: -

Who can Invest in Axis Focused 25 Fund (G)?

The doors of multicap funds are open for all, since they are a conglomeration of all kinds of stocks and do not focus on a particular style of investing. They follow a universal approach for investing and find the best prospects across different segments of mutual funds. Axis Focused 25 Fund – Regular Plan (G), being a top class multicap fund, harbours these benefits of universal investing. There is no special reservation for one or two stocks, and an assorted pool of stocks together form the portfolio of the fund. Hence, on the basis of these merits it can be concluded that all kinds of investors can place their money in Axis Focused 25 Fund. There is no bar on the entry, and the prospects are positive for anybody who invests in this fund.

Therefore, if you are looking for an ideal investment option for achieving your objectives, then you are suggested to invest in Axis Focused 25 Fund (G). MySIPonline’s easy investment services will allow you to buy a slice of this fund in no time. So, stop thinking and start acting. Invest today! 

SBI Small Cap Fund – Good or Bad for My Portfolio?

It is really interesting to see how diverse the investor community has become. People from all walks of life are showing interest in mutual fund investing, putting their discrete requests before the AMCs thus forcing them to launch products tailored according to their needs.

While it is obvious that what may be suitable for an investor may not work for another, it is important to know which parameters help us detect such qualities. Today, we are going to review SBI Small Cap Fund, which is one of the bestselling small cap fund in India. The details are brought to you by the expert reviewer of MySIPonline, who preserve vast experience in fund analysis and investment guidance.

Taking the Basics

1. The Fund House : SBI Small Cap Fund (G) is one of the many top performing funds issued by the fifth largest asset management company in India, SBI Mutual Fund. This AMC is known for its commendable contribution towards changing the face of the Indian investment industry, and is also credited for bridging the gap between investors and better opportunities. 
2. Scheme Type : SBI Small Cap Fund – Regular Plan (G), as apparent from its name, is an equity oriented, open-ended mutual fund. Being an open-ended scheme, the fund has the freedom to transact in shares at any time of the year. However, investors do not have any direct participation in buying shares, as the same is merged in the units obtained by them of the fund. 
3. Fund Objective : The primary objective with which SBI Small Cap was launched in the market was to provide a platform to the investors to invest in avenues that could help them magnify their riches and achieve their long-term goals. 
4. Current Wealth : Operating in the market since 2009, SBI Small Cap Fund Growth has successfully managed to garner a huge wealth from its subscribers. Today, the fund stands worth ₹1, 992 crore as recorded from the files dated 30th April 2019.

Discussing the Suitability

Small caps are aggressive in nature. In fact, their volatility factor tends to be the highest among all other products of equity nature. Hence, it is advised that investors should do a thorough introspection of their profile before panning any investment in SBI Small Cap Fund. You can follow these tips to know if this fund suits you: -

• Check the Past Performance : As told earlier, SBI Small Cap is a volatile fund owing to its inherit portfolio dabbed with small cap stocks. Hence, the past performance is quite unstable. There have been instances where the fund has skyrocketed yielding 60% returns; and there have been times when the performance has slipped to 6.5% returns. So, if you’re ok with this oscillation, then you’re good to go!
• Check the Investment Philosophy : The investment philosophy adopted at SBI Small Cap Fund (G) is very dynamic. Though it is biased towards small caps (57.36%), considerable preference has been given to other stocks such as mid-caps (37.58%) and others. This mix of stocks ensures that the fund doesn’t get hurt by excess risk, and everything stays under control.
• Give a Cursory Look at the Top Holdings : The top 10 stocks of the fund hold about 36% of the wealth of the assets. These stocks belong to rising industries such as FMCG, Engineering, Financial & Banking, and Textiles. These industries together construct a robust pool of assets working together for a common goal. 

So, if you’re okay with some risk in return for a good reward, then SBI Small Cap Fund (G) is definitely a good plan for your portfolio. In case you need more assistance, feel free to call MySIPonline. We’re here to help!

How Can Reliance Liquid Fund Help You During Financial Emergency?

After reading the title many people might argue that why to go on a route of liquid funds when savings account provides the best liquidity as the amount from a bank account can be withdraw in seconds. The argument stands a chance only in terms of faster redemption but not in terms of returns. Your amount will earn better returns through liquid funds than the once sitting ideal in your bank account. And, Reliance Liquid Fund is one such scheme that have always grabbed the top spot in terms of returns. With almost double the returns, an investor can obviously compromise with the redemption period.

Reliance Liquid Fund: At a Glance

The liquid fund of Reliance Mutual Fund was launched on 9th December, 2003 with an investment objective to provide long term capital appreciation to the investors along with high liquidity. The AUM of Reliance Liquid Fund is Rs. 34,422 Crore (as on 30th April, 2019) which is diversified in the instruments having high credit quality and low interest rate sensitivity. An investor can begin investing in this debt fund of Reliance MF with a minimum amount of Rs. 500. The scheme has an expense ratio of 0.23% (as on 30th April, 2019) which further aids in gaining high profit. Moreover, the scheme comes with a zero lock-in period which makes it a suitable fund for emergency as an investor can make the redemption any time in a day.

Reliance Liquid Fund: Style of Investment

The fund manager, Ms. Anju Chhajer follows a very focused approach and parks the investors money largely in A1+ credit quality instruments. In general, the debt and money market instruments in which the cash is ploughed have a maturity period of 0.13 years. The fund invests in the instruments having low maturity period which makes it one of the best mutual fund for the investors who want to invest in the mutual fund market for a shorter period of time and withdraw their money easily without paying the exit load.

Reliance Liquid Fund: Best Scheme During Emergency

The emergency fund of Reliance Mutual Fund has given exceptional returns in the past. Thus, by starting the SIP plan in this mutual fund, an investor can achieve good profits on the invested amount. Furthermore, L&T Midcap Fund comes with zero exit load therefore when an investor is in need of urgent amount then he can make the redemption quickly from the scheme. In this way, an investor can generate high returns on the invested amount along with high liquidity. Also, an investor can make quick redemption of up to Rs. 50000 in a day or 90% of the invested amount, whichever is low, and the remaining amount will be redeemed on the next working day.

About the Fund Manager of Reliance Liquid Fund

Ms. Anju Chhajer: She is a B.Com graduate and a CA. Ms. Chhajer joined the Reliance Mutual Fund in 2007 and holds 16 years of experience in the debt market. She manages the debt mutual funds of the AMC and is associated with the firm as Debt Fund Manager. Through her in-depth research and analysis, she has never failed to meet the expectations of the investors.

This brings us to the end of the write-up. Investors are always looking for the best investment plan that can act as a saviour during financial emergency and a perfect example of such plan is Reliance Liquid Fund. Thus, investors should park their surplus cash in this liquid fund of Reliance Mutual Fund for better gains.

Kotak Mutual Fund: Best Schemes for Planning Your Child’s Future

Holding the child for the first time is a special feeling. The tiny eyes which are ready to see the world should not hold any unfulfilled dreams is the effort of every father. Every parent wants his child to be financially secure and Kotak Mutual Fund is ready to help such parents. The fund house has some of the best performing mutual funds that can help an investor in planning a secured child’s future. In this write-up, three phases of a child’s life is discussed along with the best scheme. Give a read to know more.

1. Child Planning: 
Everything should be perfectly planned for the tiny creature. Moreover, the newly born will bring along with him a lot of expense. The price of clothes, toys, doctor’s fees will be enough to break a sweat. To cope with the expenses an investor should park the money in the large cap fund of Kotak MF, i.e., Kotak Bluechip Fund. Moreover, the large cap funds have a stable growth rate which can help you in diluting the risk.

 The fund has been a consistent performer and have achieved remarkable growth in the past. Thus, start your SIP plan in this scheme.

2. Child’s Education:
With the inflation rate reaching heights, the education expenditure has also grown up. To give your child the best education, you will need a hefty amount which can be achieved by investing in the midcap fund of Kotak Mahindra Mutual Fund. Kotak Emerging Equity Scheme fund invests in the midcap stocks of the companies having higher growth prospect in future. For an investors in his 30’s, this will be the best SIP plan. 

The mutual fund has given tough competition to the benchmark and category’s fund. The scheme has given good capital appreciation in the long term tenure which makes it one of the best mutual fund investment in India.

3. Child’s Marriage:
To see the child in a fancy ‘Sherwani’ is a dream of many parents. However, a decent marriage will again require a good amount of cash. Also, at your child’s marriage you will be in your 50’s and thus, you can’t afford to take high risk in the mutual fund space. Therefore, in this scenario, the best scheme of Kotak Mutual Fund would be Kotak Standard Multicap Fund Regular Plan. Below is an overview about the fund. 

By diversifying the assets in a combination of large cap, small cap, and mid cap stocks this multicap fund has provided stable returns to the investors in the long term.

A mutual fund investment requires proper nourishing similar to a child. The schemes of Kotak Mutual Fund are one of the best mutual fund investment that can help you in planning the future of your child well. Thus, start your SIP plan in these funds ASAP.
You can easily find these schemes at www.mysiponline.com which is a leading online platform for mutual fund investment. 

5 Things About Equity Mutual Funds that Experts Don’t Want You to Know

Financial experts of equity mutual funds are considered next to God whenever an mutual fund investment is to be made. Investors blindly follow the path as preached by the experts and obviously they can’t deny their prophecy regarding a mutual fund as they have already idolized them as Gurus. But if this is the case then why each year we see several underperforming funds in the line up. The investors who lose their money in such funds must have also followed the wordings of experts.

In short, mutual fund universe is an unpredictable environment and no one can time the market. Here are 5 things about equity funds that experts don’t want you to know.

5 Golden Rules to Know Before Investing in Equity Market

1. AUM Are Just Numbers, Ignore Them: A mutual fund having AUM in thousand crores will yield good returns is a common misconception among the investors. But the reality lies far away from the myth. An AUM is just a number that portrays the assets parked by the investors in the fund. Agreed that a top performing equity mutual fund will attract more investors and thereby, the AUM will increase but with great AUM comes great responsibilities for the fund manager to manage the fund. To beat this, an investor should always keep an eye on returns rather than AUM.
2. NFOs Will Earn Good Profit, Not Always True: Every year we see several investors in queue to grab the opportunity of buying a unit of NFO at an NAV of Rs. 10 which in turn lures them to buy more units at lesser price. However, it will take seconds to Google the list of several NFOs who are performing drastically. Moreover, if thought logically then what is the need to open a new equity mutual fund when the fund house already has schemes in every category. In simple terms, a scheme having vast AUM becomes hectic to manage and the management team delivers the same dish in a new packing.
3. Mutual Fund Is a One-Bet Game, Think Again: Investing in equity mutual fund is not a poker game and its high time that investors should get this fact in mind. The wealthy investors whom you admire haven’t won a lucky draw, it is the work of their sheer patience and right calls. A long term investment prospective is always required to achieve the financial goals. Also, no one can time the market...agreed, but an investor can always make a right call.
4. Diversification means Including More Schemes- False!: Financial experts always suggests to maintain a diversified portfolio but the question of how to construct a diversified portfolio remains unanswered many a times. Investors generally include all the top performing equity schemes in the portfolio and wait for the ‘returns’ shower to happen. But this is not the correct way, a powerful portfolio should include the schemes from different categories which are in line with your financial goal, investment horizon, and risk appetite.
5. Past Performance for Scheme Selection, A Big No: An exceptional past performance doesn’t guarantee high performance in the future. For instance, Sachin Tendulkar is one of the classiest batsman the world have even seen but he also got out several times without scoring a run. Applying the same logic here, a scheme can be top performing based on the past performance, but no one can predict what the future holds for the equity mutual fund. Furthermore, an investor should always look at the portfolio allocation of a mutual fund to get some hint about the future growth aspect of the scheme. If the fund has included some of the top stocks from different sectors then the scheme can help you in generating good profits.          

If you are reading this line then you must have known the important things to keep in mind before investing in equity mutual funds. Moreover, if you require any other assistance related to the mutual fund market then feel to reach us at- www.mysiponline.com or call us at- 9660032889.