Sundaram Select Midcap Fund: A Consistent Performer in its Category

Carrying over 20 years of experience in fund management, Sundaram Asset Management Company has been strengthening its roots in the mutual fund industry by gaining the trust of investors. It delivers multifarious investment solutions according to the various investment objectives of the investors. Among all those products, the one which is catching the attraction of most investors and to-be-investors with its consistent Sundaram Select Midcap Fund g performance. As the name suggests, it belongs to the midcap space of mutual funds. It aims to attain monetary growth by investing in equity and equity related securities of mid and small-cap companies. It has defined 'mid-cap' as a stock whose market cap should not exceed the market cap of the 50th stock listed with the NSE. 

Fund Manager and the Investment Strategy

The fund is managed by S. Krishna Kumar since November 2012, who is a B.Tech from National Institute of Technology, Trichy and an MBA from LIBA Chennai. Prior to joining this AMC, he has worked with Anush Shares and Securities. He is an experienced and capable fund manager who has acquired an expertise in managing mid-cap funds and invests principally in sound stocks that have the potential of growth in future, good pricing power, and stable cash flows. Mr. Kumar is highly conscious about stock valuation and invests in the stocks with above average qualities at a reasonable price. The in-house research and investment team implements a bottom-up approach for stock selection while adhering to the ‘buy and hold’ philosophy. Mr. Kumar has got a deep knowledge about the companies and their background, and he buys the stocks of only those quality companies which possess higher valuations if long-term growth prospectus is taken into account. There had been a sudden modification in the structuring of the investment team as they have now been allocated the roles that reflect their strength areas.

Past Performance Overview

The fund was floated in the mid of the year 2002, and since then it has delivered 28.63% average annual return to its investors, hence becoming an exemplary of success among its peers. Its NAV has risen to Rs.525 as on April 19, 2018, which shows its worth in the market. To keep track of its growth trajectory, its past years’ returns are compared to that of its benchmark, i.e., S&P BSE Mid-cap. Let us have a look at its calendar year returns.

Source: MySIPonline Research Desk

The major years when the fund underwent the hard test of market downfall were 2008 and 2011. It did incur huge losses during those years to its investors, but still did not underperform its benchmark. In 2009, it did set a new standard for itself by proffering annual return of 114.63%. And if we keep aside fund’s last year’s performance, it has almost every time beaten its benchmark, hence becoming a consistent performer. Although it gave high exposure to large-cap funds last year, it continues to remain true to its mandate and invests maximum part in mid and small-cap stocks. Based on its performance and investment strategy, it has been awarded analyst rating of Bronze by Morningstar.

Who Can Invest?

Those investors who are looking forward to investing in mid-cap funds, and can stomach moderately high risks can invest in this fund. 

MySIPonline is the investment platform that can help you build a bright future by assisting you in making investment in mutual funds. If this write-up has been able to provide you with a brief of Sundaram Select Midcap Fund, then you can reach out to our experts at MySIPonline and they will guide you throughout the investment process.

Bid Farewell to Your Tax Worries with SBI Magnum Tax Gain Fund

So, the last quarter of financial year 2018 is over and its time to run the tax formalities. It is the time when even the most positive person on the planet falls prey to the tax worries; How much am I going to pay this year? Will the bill ever get easy on my pocket? What if I am not able to pay off my liability? Will I face prosecution?; these are some of the most common issues that make us loose our sleep. But not anymore! With SBI Magnum Tax Gain Dividend Fund, you can devise a full-proof tax saving plan and put a check on your soaring tax liabilities. Let’s learn more about this fund and understand how exactly does it work.

The Initials
SBI Tax Gain (D) is an equity-oriented, tax-saving plan of the ELSS category. It was launched more than two decades ago in 1993, and has ever since served thousands of customers and helped them save on their tax bills. It belongs to one of the largest and most respected fund houses of India, SBI Mutual Fund. MySIPonline and other big online investment portals have listed this scheme on their recommended page on many occasions, which testifies that it is indeed one of the glorified schemes to invest in India.

How Does it Work?
Usually, a dividend plan is chosen by an investor to meet the inevitable routine expenses, because he gets paid in the form of dividend at regular time intervals. SBI Magnum Tax Gain Fund - Dividend Plan invests in the stocks of the companies that pay profits to its potential stakeholders in the form of dividends. The dividend so distributed by the companies is then passed on by the AMCs to its unit holders.

Do These Dividends Get Taxed?
Yes. With the amendment brought in by the finance minister in the latest budget, dividends paid on equity-oriented mutual funds will now be taxed to the tune of 10% of the total income distributed on or after 1st April, 2018. Thus, if you were to receive a dividend of Rs. 1000, you’ll now receive a post-tax amount of Rs. 900 in your bank account.

How Does the Fund Help in Tax-Saving?
As discussed earlier, SBI Magnum Tax Gain Scheme is an ELSS mutual fund, and thus qualifies for the deduction available in Section 80C of the Income Tax Act, 1961. According to this section, any investment made in the modes stated thereunder will automatically get qualified for a maximum deduction of Rs.1,50,000 from the annual taxable income. This means you can easily save up to Rs. 46,350 on your taxes. Further, there is an inherited lock-in of three years in this scheme which doesn’t allow any withdrawal or redemption before your investment hits maturity. Thus, you can stay carefree about the exit load expenses.

How Much Do You Need to Spend?
Not much. The SBI Magnum Tax Gain NAV stands at only Rs. 42.406 as per the data released on 18th April, 2018, which is a decent price for a fund that provides both regular income and tax benefits.

Hence, if you are amongst those who aren’t willing to take a lot of risk for their investments, are desperate to find a solution for their soaring tax liabilities and also don’t want to run behind on their rent, then SBI Magnum Tax Gain (D) is just made for you. However, be informed that this fund is a dividend scheme and not a growth option. So, if you are looking forward to build wealth over the course of your investment, then it is suggested that you pick growth schemes as dividend plans do not have the compounding feature. There are tons of high quality schemes available on MySIPonline. Check them out today!

Attain Twin Advantages with ICICI Prudential Balanced Fund

ICICI Prudential Balanced Fund is a well-known product of ICICI Prudential Mutual Fund which seeks to generate long-term capital appreciation and regular income option for its investors. It invests in equities and related securities as well as fixed income and money market securities. It is a balanced category scheme which is known for its conservative nature of investing due to mixed asset allocation to debt and equities. The fund is ideal for defensive players in the investment ground which include newbies and even the ones with a less risk appetite.

To get an insight into this scheme of ICICI Pru Mutual Fund, read this write-up to the end. Also, see if this matches to your investment objectives.

An Overview of the Fund House 

ICICI Prudential Asset Management Company is one of the most respected and trusted fund houses in the country. It mainly focuses on covering the distance between savings & investments and generating long-term wealth for its customers through a discreet range of simple, yet robust investment solutions. ICICI Prudential MF proposes an extensive band of retail and corporate investment solutions running through various asset classes - Equity, Fixed Income, and Gold.

Since its humble beginnings, the fund house has continuously worked towards achieving the target of providing its investors with financial solutions to help them achieve their life goals. It has always kept itself on the forefront of innovation and developed numerous products shaped to meet the clients’ needs, thus giving birth to a well-diversified portfolio of about 50 mutual fund products, both equity and debt. The victory of the various endeavors taken by ICICI MF is evident from its investors’ lot which has experienced tremendous growth in the recent past.

Fund’s Insights & Key Benefits of Investing in it 

ICICI Pru Balanced Fund is an open-ended balanced fund which is an ideal product for those who are seeking long-term wealth creation solutions along with regular income option. Thus, the investors get to enjoy the benefits of both ends including growth from equities as well as steady income from debt markets. Being a fund from the balanced funds’ basket, it lowers volatility of returns and risk through diversification.

Asset Allocation 

The fund has traditionally featured a high equity allocation, hovering at well over 70 percent, which is higher than the allocations of its peers. But in the last one year, the allocation has been moderated from 78-79 percent levels to 66-67 percent of the portfolio. Typically, its allocation to equities ranges in between 60 to 80 percent with a minimum of 51 percent, whereas the approximate debt allocation is 40-49% with a minimum of around 21 percent.

The scheme practices some degree of tactical allocation which is based on market valuations. Within the equities segment, over two-third is parked in large-cap stocks, which is again higher than its peers’ allocations. Talking about its investment style, the fund follows a blended approach of growth and value. Fund manager believes in relying more on duration than credit calls to improve the percentage of returns.


Risk Measures 

Fund’s Performance 

While going through the table mentioned above, we can see that the fund has outperformed its benchmark as well as the category in the long-term horizons of five, seven, and ten years. Analyzing the longer history of the fund suggests that after the bad period in 2007, 2008, and 2009 proved to be turning points for this scheme. Currently, the fund manager Mr. Sankaren Naren is following a value-conscious approach with a good mix of cyclical and growth plays. However, considering the debt portion, he believes in taking aggressive duration calls. The successful strategies that the fund has been following throughout have made it collect Rs. 27,801 crore assets under its watch.

We hope after going through the insights about the fund, you must be planning to vest in this scheme of ICICI Prudential Mutual Fund. For more information about this fund, visit us at MySIPonline or connect directly with our experts.

Why is Mahindra Mutual Fund Catching a Lot of Heat in the Market?

We have all heard the famous quote, “Failing to plan is planning to fail”, and when it comes to investing in mutual funds, it becomes much more important to bring this quote in the equation. Since there’s money involved in the investment game, you ought to be quite cautious about the choices that you make, and may have to drain a lot of energy towards making what is called a concrete plan. Hence, investing in the products of Mahindra Mutual Funds will provide you the much needed leeway in your financial planning and help you attain your objectives.

The easiest and smartest way of getting associated with this fund house is through the online investment portal, MySIPonline, where you’d find impeccable investment assistance that will help you chart the best course for achieving your goals and objectives. Apart from serving as an online informative tool, this website also acts as a medium to get your funds installed in the products of this AMC in a painless & hassle-free manner.

The Inside Story
Mahindra MF is an integral arm of Mahindra and Mahindra Financial Services Ltd. (MMFSL), one of the leading NBFC in the rural sectors of India and ranked amongst the top financing companies offering a wide range of financial products to the consumers. This NBFC operates from more than 1000 offices spread across the nation, and handles a fleet of more than 50 lac customers.

Mahindra Mutual Fund started its full-fledged operations in July 2016, with an initial seed capital of Rs. 120 crores. It is formed with an aim to provide the best financial services possible to the clients by offering eminent investment products. It mainly works towards its primary objective of developing the investment habits in rural as well as semi-urban areas, to promote healthy lifestyle and generate alternate sources of income.

The Investment Solutions
Mahindra Mutual Fund aims for uplifting the lives residing in the less developed sectors of the nation. Its target is to serve more than 10 million customers in total by 2022. And for achieving this target, it has come up with some of the best schemes in the market belonging to different categories, so that the discrete needs of the clients get satisfied. Following are the schemes offered by Mahindra Mutual Fund available online at MySIPonline: -

• Mahindra Liquid Fund - Regular (G): Investing in liquid funds is the modern-day approach for multiplying your idle money, and this scheme offered by Mahindra makes the most of your invested funds. So, bid goodbye to the old school methods of flushing your money into the bank accounts and post offices, and choose this more rewarding and contemporary method. 
• Mahindra Kar Bachat Yojana - Regular (G): It’s a tax-saving, ELSS scheme and a boon to all those who are scratching their heads to find out a way to melt their tax liabilities. An investment in this scheme make syou entitled of the deduction available in Section 80C of Income Tax Act, 1961, and can help you save as much as Rs. 46,350 on your taxes.
• Mahindra Dhan Sanchay Yojana - Regular (G): This diversified equity fund is one of the best ways to employ diversification in your investment portfolio. This fund is only over a year old in the market, but has been performing quite efficiently and helping the investors build their wealth. 

With so many thriving products to its name and several more to come in the near future, Mahindra Mutual Fund has definitely scored a special place amongst the investors. So, all of you highly determined people aspiring to enjoy the riches of life, it’s time to abandon worry and place your trust in this AMC. Log on today to MySIPonline and start a fruitful investment venture in the wonderful scheme offered by Mahindra MF. 

The Inside Story of One of the Best Balanced Funds, HDFC Prudence Fund

Out of the many varieties of mutual fund products available in the market, balanced funds hold a special spot. Not only are they capable of pulling down a handsome reward for the investor, but they also provide much better security than pure Equity funds. And out of the many schemes present in this category, HDFC Prudence Fund wins the gold. It holds the record of being one of the most promising balanced funds in the Indian market, yielding solid returns for the investors and safeguarding their wealth against any mishaps in the market.

In this article, some of the major points have been discussed that are the reasons for the enormous success of this scheme in the market. Once you are done reading, you’ll have enough reasons to not to take your eyes off of this scheme and add this to your cart for building what’s called a “Blockbuster Portfolio”. For anything that still needs clearance, you can always visit MySIPonline, where you’ll get both online and offline support for any queries that you may have regarding your investments. But for now, let’s answer the most common questions that often hit the investor’s mind - Why, When and How to invest in a fund?

Why Should You Choose HDFC Prudence Fund (G)?
The most important thing to remember while investing in mutual funds is to justify yourself why you are actually investing in the scheme or schemes that you have chosen. To help you add fuel to your reasons for investing in HDFC Prudence Fund (Growth), we have chalked down some of the biggest advantages of staying close to this scheme:-

• Kill Two Birds with One Stone - Smooth Returns and High Protection : Balanced Funds are a well-structured conglomeration of Equities and Debt, where the major portion is reserved for the former and the remainder is occupied by the latter. This provides the fund the energy of the Equity to churn handsome rewards, plus the shielding feature of the Debts against untimely market manoeuvres. 
• Add the Benevolence of Diversification : As the famous saying goes, “Don’t put all your eggs in one basket”, you should never suffice with one or two kinds of funds in your investment basket. Adding HDFC Prudence Fund (Growth) to your portfolio will add an adequate dose of diversification, thus letting your investments grow stronger and steadier overtime. 
• A Reputable Benefactor : HDFC Prudence Fund is a proud holder of a remarkable returns streak. Since inception, it has fetched returns as high as 18.95% for the investors which is a solid number in the money market. 

When Should You Invest in this Scheme? 
The golden rule for achieving success in mutual fund investments is to start an SIP in the best funds available, ASAP. With even a year of delay, you could be sure of loosing a lot of opportunities that you would have otherwise grabbed if you’d have respected the time involved. Hence, it’s suggested that you get in touch with your financial advisor, figure out how much you can currently spend on your investments, and start pouring your money into HDFC Prudence Fund Regular Plan Growth right away.

How Shall You Proceed to Invest in HDFC Prudence Fund (G)?
Surprisingly, this is the easiest part. All you need to do is log on to MySIPonline, add this fund to your cart and click the ‘Buy’ button. And you’ll be done in no time.

Hence, HDFC Prudence Fund (G) is one of the handful schemes in the market that have been tried and tested by many, and yet it hasn’t failed to surprise with its phenomenal performances. So, what are you waiting for? Visit MySIPonline today, and begin the journey of a prosperous investment.  

Earn High Returns with HDFC Infrastructure Fund

Mutual Fund advisers and financial planners have been recommending infrastructure mutual funds to their clients lately. Based on the research, experts quote that the infrastructure category will be offering satisfactory returns in the coming years. According to them, it can be a safe bet for those investors who are willing to invest in sector-specific schemes. Adding to this, the experts have also advised investors to invest with a minimum horizon of seven years. This is because these sector-specific funds are considered risky as their investment is highly concentrated in a particular sector. If you have too much affinity towards HDFC AMC and want to park your money there only, then MySIPonline’s research desk, after undertaking deep research and analysis process, suggests you HDFC Infrastructure Fund which is a product of HDFC Mutual Fund.

HDFC Infrastructure Fund: An Outline
Being an open-ended infrastructure-centered scheme, it aims to invest majorly in equity and equity related securities of those companies which are either involved in or are expected to benefit from the growth and development of infrastructure. It can invest maximum up to 35% of the fund in non-infrastructure related companies and minimum 65% in infrastructure companies.

Portfolio Composition
The fund has an average market capitalization of Rs.14,685.05cr with an allocation of 33.82%, 7.83%, 19.70%, 37.16%, and 1.49% in giant, large, mid, small and tiny-sized companies, respectively. It is too much exposed to the sectors such as construction and engineering as compared with NIFTY 500 taken as its benchmark. It is broadly comprised of three regions of investments which are:

• Asset Financiers- Banks and Infrastructure Financing Companies
• Asset Creators- Engineering and Construction Companies
• Asset Owners and Developers- Companies that own infrastructure projects

Let’s have a look at the percentage breakup of the sector allocation of the fund as compared with its benchmark.

Sector Allocation in %

Source: Value Research

Performance Talks
The fund is being managed by Mr. Srinivas Rao Ravuri who has over 22 years of experience in financial markets, primarily in equity research and fund management. It was launched on March 10, 2008, and since then it has proffered 6.52% average annual returns. Soon after its launch in 2008, the fund took full advantage of the bearish market of 2009 and bestowed investors with a whooping return of 95.63%.

But, it couldn’t bear the major downfall of 2011 and incurred comparatively more loss to its investors as its benchmark. Again the years 2013, 2015, and 2016 were the years of breakdown for the investors. If we look at the years when the fund performed well, it can be clearly seen that it has prosperously outperformed its benchmark by catering remarkable returns.

Why Invest in Infrastructure Fund?
With the growing Indian economy, infrastructure sector too is now on a structural and sustained uptrend. Also, the government of India has now started focusing more on developing the infrastructure areas which include roads, railways, metros, defense, urban infrastructure, housing projects, manufacturing, etc. Further, the ‘Make in India’ project started by the Prime Minister Narendra Modi has created a favorable environment and greater scope of development for infrastructure. This, in turn, will assist in gathering improved profitability and generating lower finance costs. Hence, MySIPonline will suggest you to invest in HDFC infrastructure Fund, if you can bear moderately high risk and have investment tenure of at least seven years.

Why Should L&T Tax Advantage Fund be on Your List When You Think of Tax Saving?

Most of us have already heard the closing bells of the financial year 2017-18, and there might be even some of us who were planning to make last-minute tax saving investments, but failed badly. Choosing the right product for yourself in such a short span is not an easy errand. This is because there are several investment options with varying features and tenures. And, in our rush to select the best financial product, we often miss out on expenditures that can be claimed to save tax instead. 

However, if the experts in the field tell you the way to reach your tax saving goals without letting you wander here & there in search of a reliable option, then the process will become a smooth sail. Well, yes! You heard us right and here is our recommendation. We, at MySIPonline, suggest you to go with L&T Tax Advantage Fund if you wish to make any new investment to save tax for the next fiscal year. 

Now, the question arises, what are the factors that make us so confident about this scheme? If you wish to find out, then go through this post to the end. 

L&T Tax Advantage Fund: Creating Big Differences 

L&T Tax Advantage Fund is an open-ended equity linked savings scheme which is more than a decade old. It has started its journey way back on February 27, 2006, and since then it has managed to provide consistent returns to its investors. The primary objective of the fund lies in generating high gains and long-term capital growth from a diversified portfolio of equities and equity-related securities. The NAV of the scheme amounts to Rs. 54.065 as on March 28, 2018. The total assets under its watch amount to Rs. 2989 crore as on February 28, 2018. The trailing return percentages of one, three, and five years are 18.04%, 13.75%, and 19.66%, respectively. The L&T tax advantage fund has been successful in beating the returns delivered by its benchmark (S&P BSE 200) as well as the category. 

Talking about its asset allocation, more than 97.83% of its net assets are invested in equities and equity-related securities which posses high risk but are capable of delivering an excellent boost to the returns. The remaining percentage is invested in debt instruments and cash & cash equivalents. 

Coming to its portfolio aggregates, the fund’s significant allocation is done in giant and large-cap companies which is around 57.06% of its total equity investments. Here, the mid-cap companies score 32.06%, whereas the small-cap companies consume approximately 10.34% of the total allocation. 

Fund Manager & Investment Strategy 

The fund is successfully managed by Soumendra Nath Lahiri who has over 20 years of experience in the similar field and has been managing and advising on the portfolio for more than nine years now. His distinct style of investment makes him stand out among its peers, but that also adds an element of key-person risk. The investment strategy is such that the fund manager finds companies through bottom-up stock picking approach. The portfolio depicts his high-conviction stock picking style which majorly includes companies backed by strong promoters and that are efficient capital allocators. 

Key Advantages of Investing in L&T Tax Advantage Fund 

1. Dual Benefits: Being a tax saving option, it acts as an excellent tax saver under Section 80C of the Income Tax Act of India, 1961. Secondly, it is considered as a smarter investment option for the future. 
2. Three-years Lock-in Period: This period being much-shorter than most of the investment options that qualify for tax saving deduction under Section 80C makes L&T Tax Advantage Fund an attractive option for the investors. The lock-in helps the fund manager to maximize potential returns from equities.
3. Small Investments, Big Profits: In this ELSS scheme of L&T Mutual Fund, the investment installments can be planned as a part of the monthly budget by opting the route of SIP. 
4. Greater Diversification for Better Risk Control: The fund manager of L&T Tax Advantage Fund believes in following ‘go anywhere’ approach. Thus, he has shown no bias towards any sector, style, or capitalization. 

What Should an Investor Do?

Although there is nothing wrong with saving tax through involuntary expenses or means, it's always rewarding to have a financial plan in place and choose tax-saving options in sync with your goals. After all, saving for a long-term goal by using the tax breaks is what you should do. Further, you should ideally start tax-saving at the beginning of the financial year. So, this scheme can be an ideal choice for investment for all those who are willing to seek profits by saving taxes in the next financial year. 

In case you wish to seek a personalized recommendation on this, connect with us via email or phone call. We, at MySIPonline, will be happy to serve you with all we have.