5 Tips to Handle Reliance Value Fund in Market Volatility

Established on June 2005, Reliance Value Fund has been categorized under the equity value-oriented fund category. The primary objective of this scheme is to produce consistent returns and capital appreciation by investing in a mix of equity, fixed income, and money market instruments. Mr Meenakshi Dawar has recently joined the scheme and replaced Mr Sanjay Parekh and Amit Tripathi as the fund manager. The AUM of the scheme is Rs 3,124 crore (as on 30th Nov 2018). It creates a saving option for investors by actively managing the equity portfolio with a value-based investment approach. Here are 5-tips to handle this fund during the market volatility.

Follow a Disciplined Mode of Investment

Systematic Investment Plan (SIP) is a great way to make investors disciplined with their investments. Further, this regular savings helps the investors in achieving the financial goal. Reliance Value Fund G invests approximately 97.56% corpus in equity and equity related instruments. As equity category has a high risk-appetite and nature to swing by the market volatility, the investor can utilise this behaviour and get the advantage of the market downturn as well. When the market is up, as an investor, you purchase fewer units of Reliance Value Fund through regular SIP, whereas, when the market is correcting, you can purchase more units, and that too at lower NAV. In the market downturn, there is an option of additional purchase as well to take advantage of this situation.

With this scheme, you can start with as minimum as Rs 100 through SIP and make an additional purchase of minimum Rs 500.

Don’t Worry About Daily Market Volatility

You are required to understand that volatility will pass in some weeks or months or years. So, if you are investing in Reliance Value Fund, you should be calm as the market swings as what you are watching today will pass, just like it did in the past. However, you can consider the performance of the fund in different market swings in longer duration to predict the expected returns.

Stay Updated with Go-Around

Reliance Value Fund follows a value investment style in choosing the stock. The investor is required to be updated with the latest information regarding the stocks in the portfolio to predict the market in advance. It also helps the investors to sustain the market swings as he/she understands the reason behind that.

Stay Invested for a Long-Term

Reliance Value Fund Growth is good to invest for a long-term duration. Such a long tenure helps the scheme to produce risk-adjusted returns and survive through the market volatility.

In last 5, 7, and 10-years, it has produced 16.74%, 16.73%, and 18.18% annualised returns, respectively, and outperformed the benchmark. Considering the long-term returns, you can expect a higher growth from the fund over a time horizon of 5-years and more.

Maintain Diversified Portfolio

To maintain a diversified portfolio to sustain the market volatility, the investors are required to invest some portion of assets in debt and liquid funds as well. The diversification not only helps the investors in sustaining the market volatility. but also generates better risk-adjusted returns in long-term.

All the five tips as mentioned above are useful to sustain the market volatility in Reliance Value Fund growth and generate risk-adjusted returns over a time horizon. If you have any query regarding the regular plan, you can mention in the below-provided link to get further assistance from experts at MySIPonline ASAP. https://goo.gl/WofRJm

How Is Reliance Equity Savings Fund Better Than FDs?

Mutual funds have been gaining momentum in India over the past few years. As per the information provided by AMFI, there are nearly 25.2 million SIP accounts in the mutual fund industry. Further, around 9.74 lakh SIP accounts have been averagely added per month during the financial year 2018-19. With the increasing attractions towards mutual funds, investors are searching for more options to park their money with savings purposes. Reliance Equity Savings Fund also aims to provide savings option by investing in equity, debt, arbitrage opportunities, and money market instruments for capital appreciation. It was launched on 30th May 2015 with a focus on maintaining adequate returns to the investors.

Here are some benefits of Reliance Tax Savings Fund G over fixed deposits that make it a better savings options and return a generator.

Extra Tax Savings Returns

Most of the equity saving schemes have been launched after the 2014 Union Budget when the holding period changed from 1 to 3-years for capital gains in debt funds. The industry has introduced tax friendly mutual fund products, equity savings fund, for the investors to provide tax savings benefits in shorter as well as longer period. Reliance Equity Fund has adequate exposure to equity instruments to provide the advantage of equity tax saving benefits instead of debt taxation. 

Reliance Equity Savings Fund Growth is also one of them to provide risk-adjusted returns and tax savings benefits for the investors. It invests in a mix of debt and equity securities which provide tax benefits and savings option.

The portfolio of this scheme holds 46.33% equity instruments, 23.42% debt instruments, and around 30.25% cash equivalents.

Beat the Inflation

Even the experts at MySIPonline suggest parking your money in Reliance Equity Savings Fund G instead of fixed deposits. They give the reason that the interest earned on fixed deposits is not sufficient to beat inflation in long-term. The equity savings fund provide predictable returns along with little risk by maintaining a diversified portfolio.

With the investment in equity instruments, Reliance Equity Savings Fund generates higher returns against the inflation in long-term. Although it has higher exposure to equity as compared to debt instruments, it is a better option to generate higher returns with the low-risk measure.

Active Equity Allocation

The active equity exposure in the portfolio of Reliance Equity Savings Fund maintains a diversified portfolio of different market caps and sectors. Apart from this, it has a large-cap exposure as well to reduce overall risk in the portfolio. If you are looking for an option which can generate higher and inflation-adjusted returns than FD interest rates, this active equity portfolio is suitable to help in generating additional returns.

Fixed Income Exposure

Reliance Equity Savings Fund has a significant exposure to debt instruments, however, less than equity instruments, to enjoy equity taxation benefits. It invests majorly in unrated papers to get benefits of credit rating improvements.

Hedging Benefits

Arbitrage profits generated from hedge positioning makes Reliance Equity Savings Fund produce additional risk-free returns.

Reliance Equity Savings Fund is a good option over fixed deposits considering hedging benefits, active equity exposure, fixed income assets, high returns, and tax savings benefits. If you have any query regarding the above information or regular plan, you can mention it in the below-provided link to get assistance ASAP. https://goo.gl/WofRJm

Top Performing ELSS Mutual Funds for Tax Saving in 2019

Everyone likes getting free stuff on the purchases they make. The joy of getting multiple things for the price of one is just overwhelming. This is one of the major reasons, the popularity of the ELSS mutual funds have increased in the past 1 decade. By investing in these schemes, an investor can enjoy dual benefits of high growth from equity instruments, as well as tax saving benefits on investments up to Rs. 1.5 lakhs. But, a lot of investors are confused regarding the right scheme from this category that can be chosen for optimal growth. So today, we will see the ELSS - Tax Saving schemes, which you can invest in to enjoy great growth.

Aditya Birla Sun Life Tax Relief 96’ Fund (G)

This scheme is one of the oldest schemes of this category and since the inception has secured a position in the top performing mutual funds list. The biggest proof of its exceptional performance is the average annualized return of more than 24% that it has provided since its inception. A great choice for investors with a long-term investment horizon and moderately high risk appetite.

Axis Long Term Equity Fund (G)

This scheme is a perfect tax saving solution for investors who want a stable growth. In the past 1 year, even during extreme volatility, this ELSS scheme showed a great performance by providing Year to Date return of 4.09%. One of the best features of the scheme is its high turnover ratio, which allows it to change the portfolio allocation based on the equity market conditions. This scheme too has been among the top performing ELSS mutual funds from a very long time.

L&T Tax Advantage Fund (G)

This scheme is a great pick for investors who want to invest in a diversified portfolio of equities. L&T Tax Advantage Fund has also shown exceptional performance in the long-term, by providing annual average returns of more than 18% in the past 10 years. One of the main reasons behind its consistency is the exceptional management skills of Mr. Soumendra Nath Lahiri, who is also managing other top performing mutual funds from L&T, such as L&T Midcap Fund, L&T Emerging Businesses Fund, and many others.

DSP Tax Saver Fund (G)

A great choice in the current market phase and the reason for that is its high allocation in the finance sector (38.10%). Now, as you may know, a lot of experts are holding convictions for the growth of this sector in the next 1 year and with the enhancement of cash inflows by the government in PSU banks has increased the chances. So, by investing in this top performing mutual fund scheme, you can enjoy the growth of this sector firsthand. 


These were top performing schemes that you can invest in for saving taxes up to Rs. 43,650 in the year 2019. An added benefit of these schemes is the lock-in period of just 3 years, which is the lowest among all the 80C instruments. So, don’t wait anymore and start your investments now. For hassle free investments in these top performers, you can visit MySIPonline. You can also check the top performing mutual fund schemes from other categories and can create a full fledged portfolio for optimal long-term growth.

Long-Term Goal? Invest in HDFC Top 100 Fund via MySIPonline

MySIPonline provides the important information about HDFC Top 100 Fund to help investors in their investment decision. HDFC Top 100 Fund was launched on 3rd Sept 2018 with an investment objective to invest significantly in large-cap companies to generate long-term capital appreciation. The asset under management of HDFC Top 100 Fund is Rs 14,699 crore as on 31st Oct 2018. Mr Prashant Jain is the fund manager of the scheme since Jan 2002. Before joining HDFC Mutual Fund, he has worked with SBI Mutual Fund and Zurich AMC. Here is the detailed information about HDFC Top 100 Fund.

Detailed Portfolio

HDFC Top 100 Fund is a pure equity fund which invests purely in equity instruments. There is a total of 49 stocks in the portfolio of the fund as noted on 29th Nov 2018. The top 10 stocks consist 60.66% assets. Coming to the asset allocation based on the market capitalisation, HDFC Top 100 Fund invests majorly (approximately 88.92%) in stocks of large-cap companies, and the remaining around 11.07% in mid-cap companies.

The portfolio of HDFC Top 100 Fund suggests that a strong large-cap exposure will help the fund to sustain in the market volatility and generate long-term capital appreciation for investors.

When it comes to sector allocation, HDFC Top 100 Fund G invests majorly in the financial sector which consists around 36.39%. The top 3 sectors in the portfolio measure for 74.40%.

Performance

The fund has generated exceptional returns at 19.87% annualised rate for investors since inception as noted on 29th Nov 2018. Since last one year, the fund is not performing well, but for long-term investment goal, this underperformance is not to worry about as our experts at MySIPonline suggest.

The fund has generated 11.60% returns in 3-years and outperformed the category’s average, although benchmark return has not been touched. Considering long-term returns, HDFC Top 100 Fund has produced 15.06% trailing returns which are higher than the category’s average (13.34%) and benchmark (14.22%). In the last 10-years, the fund has generated returns at 18.14% and outperformed the category’s average (15.51%) and benchmark (17.20%).

During unfavourable market conditions in 2008 and 2011, the fund was able to maintain the losses below the benchmark and category.

Risk-Appetite

As HDFC Top 100 Fund G invests in equity instruments, we could suggest that the portfolio of the fund will be risky. Apart from this, the equity exposure to large-cap companies implies that HDFC Top 100 Fund will be stable during unfavourable market conditions than small-cap and mid-cap funds. Experts at MySIPonline recommend investing in this fund for a long-term horizon to mitigate overall risk in the portfolio and get risk-adjusted returns.

Overall, HDFC Top 100 Fund is for investors who want to invest in for a long-term horizon in equity instruments of large-cap companies with moderate to high risk and return expectation. If you have any query regarding SBI Dynamic Bond Fund and any other regular plan, you can mention in the below-provided link where our experts are ready to provide related suggestion to your queries. https://goo.gl/WofRJm

Why Is Reliance Retirement Fund Wealth Creation Scheme a Perfect Beginning

Retirement planning is an integral part of the financial planning of every investor, as this is what decides that if the later years of a person will be as smooth as the present ones. Now, to get a good corpus for your retirement, the most important factor is a good start, and one such scheme that can provide a great beginning to your investment journey is Reliance Retirement Fund Wealth Creation Scheme. Let’s see what makes this fund stand out from the other retirement planning options.   

A Perfect Blend 

This scheme is a perfect blend of various combinations, and they are stated as below:

• The first and foremost combination it follows is the blend of value and growth investment style. This helps the scheme in providing stability as well as growth to the investors, as with value style of investing, it picks the opportunities that generate in the market and with growth style of investing, it picks stocks that can provide undeterred returns. It is one of the best strategies to enjoy long-term growth.
• The second is Reliance Retirement Fund Wealth Creation Scheme Growth Plans’ investment across different market caps, which will allow it to show stability during the market downside and high growth during the market upside. As of now, it has 77.09% investment in large-caps, 16.52% investment in mid-caps, and 6.40% investment in small-cap companies. Due to the volatility and correction prevailing in the mid and small cap space, the investment in these has been decreased which show the capability of the fund to adapt to the market trends.
• The third one is the blend of sectors in which Reliance Retirement Fund Wealth Creation Scheme invests in. At present, it has an investment in a total of 14 sectors from which finance, construction, energy, automobile, and technology holds the major allocation. This is another factor which will help the fund in generating stable returns during the variable market cycles.

Backed By Reliance Mutual Fund

This is yet another reason to choose this scheme. Reliance Retirement Fund Wealth Creation Plan is backed by one of the largest AMCs of India and some of the best minds are working together to move this fund to the top. This fund house is currently sponsoring a lot of great schemes right now, some of which are Reliance Small Cap Fund, Reliance Large Cap Fund, Reliance Liquid Fund, etc. With this exceptional management, the fund is expected to reach new heights in the coming years.

Available at Lower Price

Reliance Retirement Fund Wealth Creation Scheme is a little more than 3 years old and due to its flat performance during the yesteryears, the NAV has not increased that much and as of now it’s NAV is just Rs. 12.66 (As on Nov 21, 2018), which is just a little more than its face value of Rs. 10. So, this means that by investing now you can accumulate a great number of units even with small investment amounts. Now, this will help you greatly in the next few years as after the recent market downfall of October, it has shown a great stability and looking at it a jump in NAV can be expected in the next few months, providing you with a great growth.


So, these were some reasons to start your retirement planning with Reliance Retirement Fund Wealth Creations Scheme Growth Plan. Also, remember that for a perfect retirement corpus, the one thing you should always remember is that go for the long term investment and don’t guide your investments by getting affected by the volatility of the market, as ups and downs are a part of the equity market and this is what helps the funds to book profits.

What Are the Chances of Tata India Pharma & Healthcare Fund to Grow in Future?

Tata India Pharma & Healthcare Fund was launched on 28th Dec 2015 with an aim to generate capital appreciation for the investors by investing 80% to 100% in equity & equity related instruments and 0 to 20% in debt & money market instruments. The fund focuses on investment in Pharma & healthcare companies in India. Currently, Mr Sailesh Jain and Ms Meeta Shetty are handling the portfolio of Tata India Pharma & Healthcare Fund since Nov 2018. As Tata India Pharma & Healthcare Fund is a thematic fund which invests majorly in Pharma sectors, it makes the portfolio of the fund risky. Since launch, the fund has generated an annulised rate of returns at -4.01% because of underperformance of the Pharma & Healthcare sectors due to many reasons.

The experts at MySIPonline have analysed the fund and find out the chances of fund’s growth in future considering the following factors.

Mid-cap Investment

The fund has a well-diversified portfolio where the fund managers invest around 41.07% in mid-cap companies. Such a big portion of assets in mid-cap companies show that the fund has high growth chances in future. Although mid-cap companies also increase volatility to the portfolio, we can expect that with a growing Pharma sector, the mid-cap companies of Pharma will start growing and producing favourable returns.

Stable Portfolio

Sticking to the investment objective, the fund managers invest around 94.52% assets in equity and the remaining in the cash equivalent. From the equity instruments, Tata India Pharma & Healthcare Fund (G) invests approximately 50% of the assets in stocks of large-cap companies which bring stability to the portfolio. Although due to Pharma sector’ slowdown, the fund does not perform accordingly, with the improvement of the Pharma sector, the fund will start growing as well.

Improving Pharma & Healthcare Sector

Since 2015, the Pharma sector has been underperforming due to US FDA strict regulations and slowdown in exports. Further, GST regulations have also impacted the Pharma sector; however, now the saturation is coming to the Pharma sector. With the resilience in the US FDA regulation and approval to exports, we can expect that Tata India Pharma & Healthcare Fund will start growing.

Sun Pharma Gets USFDA Nod

Tata India Pharma & Healthcare Fund has a prominent assets allocation in Sun Pharma (around 15%). Recently in 2018, Sun Pharma received the US FDA (Food and Drug Administration) approval) in cancer treatment injection, prostate cancer drug, plaque psoriasis drug, and eye drug Xeplros. The approval of drugs to the US shows increasing product range of Sun Pharma and future growth of Tata India Pharma & Healthcare Fund. Some other top holdings such as Dr Reddy’s Lab, Abbott India, Aurobindo Pharma are showing improvement which may help Tata India Pharma & Healthcare Fund to grow in the future.

Last One-year Performance

The scheme was launched in Dec 2018, so we have a record of 1 to 2-years performance only. We couldn’t track the record of last 3, 5, and 10-years returns of the scheme. Considering the previous 1-year returns, the fund has generated 6.23% returns which are higher than the category’s average and benchmark. In 2017, the fund has shown positive returns against a negative benchmark.

Overall, the experts at MySIPonline have discussed the chances of Tata India Pharma & Healthcare Fund to grow in future. If you have any query regarding the regular plan, you can mention in the below-provided link to get assistance from experts at MySIPonline ASAP.  https://goo.gl/WofRJm 

ABSL Focused Equity Fund: A Pro Tip To Stay Safe During the Market Fall

We all work like crazy the whole month, deny ourselves of so many things so that we can save money, and have a financial safety in later years. It’s not easy earning bread, but at least the money leaves you with a nice fuzzy feeling when it grows. Though it may also give you pain if you do not save it in a proper way, it can even provide a good percentage of cushion against inflation as well as the market up-downs. Therefore, for saving your hard-earned money, the financial experts of MySIPonline have bought a pro-tip which can provide you with high risk-adjusted returns from the equity market, and that is, ABSL Focused Equity Fund. The fund has been maintaining a concentrated portfolio after new mandate ordered by SEBI and will try to provide stable returns by managing the overall risk.

Glorious Past:

Aditya Birla Sun Life Focused Equity Fund which was launched in 2005 has given annualised returns of 14.01% since then. From the past many years, it has been performing consistently, out starring its benchmark as well as other funds in the category. It has also managed to cap the losses better than its index and peers in the bearish markets of 2008, 2011, and 2015. This all has added more glory to the fund, as it has provided high returns to its investors in the long run. These returns can be seen in the graph provided below:

(*as on Nov 16, 2018)

These returns show that investors can invest in it with an investment horizon of 5 years or more to get the most of the equity market through the fund. The investors investing in the fund should have an appetite of tolerating moderately high-risk as it is allocating its assets in the equity market.

Focused Investment Approach

The decade-old fund will need to restrict its exposure to only 30 stocks which are listed at the top of the market and have the capability to change the market with their performances. Aditya Birla Sun Life Focused Equity Fund Growth Plan with this attentive approach of investment helps it to provide high returns even in the market downfall because these companies can manage ups and downs effectively. This concentrated portfolio helps it in bearing on the overall risk and the return potential. The fund also invests in the multinational companies among the top 30, because they have more experience of managing the market and economic changes globally.

How it Will Save You from the Market Hits?

ABSL Focused Equity Fund G primarily invests in companies with sound corporate management and prospects of the good future growth. The fund management team invests in companies with a track record of superior performance as well as have good corporate governance. This investment strategy of the fund manager, Mr Mahesh Patil helps it to provide high returns to the investors by adjusting risk in the market downturn . So, if you are interested in investing in bluechip companies, you can register yourself at MySIPonline and start your investment journey.

You can also connect with us regarding investment in ABSL Focused Equity Fund- Regular Plan via call or email or post it here https://goo.gl/WofRJm, and we will get back to you soon.

How Investing in ICICI Balanced Advantage Fund Beneficial in Market Volatility?

There is a famous saying in America that the time to prepare for a perfect storm is not when the wind is tearing the roof off your house, but before the storm hits. This saying works fit for the financial market which is highly volatile as of now, and investors should balance their portfolio by investing in diversified assets. This will help them to protect their capital and work for long-term capital appreciation. One such fund in the category that is analysed by the financial analysts of MySIPonline is ICICI Prudential Balanced Advantage Fund. The fund has adopted the dynamic asset allocation approach which helps the investor to increase diversification in their portfolio.

An Overview of ICICI Prudential Balanced Advantage Fund

How Can Re-Balancing Portfolio Downside Risk?

The dynamic asset allocation of ICICI Prudential Balanced Advantage includes such portfolio which manages physical securities such as stocks or bonds, or implementing overlay-based strategies including arbitrage opportunities. This replaces the complexity for the investors as well as reduces their overall risk.

At the same time, the risk measures of the fund also show that it is less volatile than its category. The SD of the fund is lower than its peers as well as the benchmark. Higher Sharpe ratio also shows that the fund can manage to offer risk-adjusted returns which make it one of the best funds in the category.

As per the financial analysts of MySIPonline, the fund has performed well than other funds which is cleary seen through its alpha that is negative, but outperforming its category. All these facts show that it is a good fund that helps the risk-averse investors to downside risk in their portfolio by re-balancing capital in multiple assets.

Besides this, if we look at the overall performance of the fund, it has performed well in the overall market cycles. When in the year 2014 and 2015, the market was going through bull and bear phase, both and Sensex had delivered the CAGR of 5.4%, but it has given the CAGR of 15% approximately.

These returns depict that the fund keeps the technique to perform well even when the market takes a downturn. This also reduces the overall risk for the investors, as the fund management team has the calibre to offer sustainable returns by reducing the volatility.

Benefits in Volatile Market

ICICI Prudential Balanced Advantage Fund Growth Scheme invest across various assets on the basis of the market conditions. It increases or decreases its exposure to the equities on the basis of the market valuations and volatility. It uses price to book value (P/BV) measure to decide its allocation strategy and changes allocation in equities and debt depending on the P/BV ratio prevailing in NIFTY. This investment strategy diminishes the volatility in the portfolio of the fund and helps investors to minimise risk.

In sharp corrections also, a mix of debt and equity portfolio would face lower volatility than a pure equity fund. As per the financial analysts of MySIPonline, this mix of assets will give a good experience to the one who is not penchant to high-risk as well as novice investors.

Therefore, the investors who have invested in equity funds or don’t want to invest in pure equity schemes due to the volatility can invest in ICICI Prudential Balanced Advantage Fund G, which will limit the downside risk without hitting returns too much.

For more information regarding this fund, you can connect with us via call or email. You can also submit your queries regarding investment in the regular plan of ICICI Pru Balanced Advantage submit it here https://goo.gl/WofRJm, and we will get back to you as soon as possible. 

Why Should You Invest in SBI Magnum Low Duration Fund?

There are a number of ways in which you can invest, the one trending these days is investment in mutual funds. There are numerous options present in the market in the form of innovative investment schemes. SBI Magnum Low Duration Fund by SBI Mutual Fund is one among the many suitable for conservative investors.

The investment objective of this scheme is to help investors earn regular income by investing in debt and money market instruments by providing liquidity at all times. This is an open-ended scheme with the macaulay duration of the investment lying between 6 to 12 months. Formerly, this scheme was known as SBI Ultra Short Term Debt Fund.

Top Four Reasons to Invest in SBI Low Duration Fund Growth

Below reasons, as to why one should invest in this scheme, have been shortlisted by the experts at MySIPonline after conducting intensive research.

1. Asset Diversification - This scheme has invested across different low duration securities which include AAA, A1+, AA, cash equivalent, etc. Diversifying the assets across a variety of instruments is a right decision as it leads to diversification of risk. The correct selection of the investment portfolio also increases the chances of better earnings.

2. Good Returns - In one year time period, the rate of return generated by this scheme is 6.63% which is more than both its category and benchmark CCIL T Bill Liquidity Weight. In three years time, the returns generated by this scheme is though more than that generated by its benchmark but less than its category’s returns. Talking of the five years time period, it has again succeeded in surpassing the return rate of both the others.

3. Robust Risk Management System - The standard deviation of this scheme is more than its benchmark’s SD but less than its category’s standard deviation. The Beta of the scheme is again less than that of its category. This states that the scheme is less likely to fluctuate in response to the market conditions. The Sharpe ratio of this scheme is 1.27 which is greater than both its benchmark and category’s ratio. This confirms that it has generated good return with the risk taken.

4. Consistent Performer - Talking of consistency, this scheme has generated continuous returns for one, three, five, and seven year in the form of 6.63%, 7.33%, 8.09%, and 8.38%. Looking at these rate of returns, it can be estimated that the performance of this scheme is consistent. Below is the performance graph showing the trailing returns for the period of October 2017 to September 2018.

A Final Note

Investors who wish to park their money for a short-term may invest in SBI Magnum Low Duration Fund by SBI MF. From the above description, it can be estimated that this fund seems to yield optimum and consistent returns with proper risk management and asset allocation. You may invest in it via simple online investment procedure at MySIPonline. In case you have any query regarding regular funds, feel free to post the same here.