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.

Tata Digital India Fund - Bumpy Ride in 2019 by The Top Performer of 2018

Tata Digital India Fund was among a few schemes which delivered outstanding returns in 2018 as the market conditions were decent. It was the best performing mutual fund in 2018 and nearly provided 25% annual gains. Not only in 2018 but this particular scheme has always been an apple of the eye for the sectoral investors. However, the journey of this high rated scheme in 2019 has been full of ups and downs. The market conditions have been volatile but this scheme has weathered volatility since inception so why not now? Keep reading as the experts at MySIPonline explain the key reasons and the expectations from the scheme in the near future.

A Must Know for IT Investors

India is the largest exporter of IT in the world. According to the data released by NASSCOM, 79% of the total revenue of the Indian IT companies come from the exports. This does not mean that the IT sector is insignificant in the domestic market. The technological sector accounts for 40% of India’s GDP. The IT sector is highly dependent on national as well as international market conditions. The strength of INR against USD greatly affects the stocks of IT sector companies.

For the same reasons, the professionally handled IT sectoral mutual funds like Tata India Consumer fund, have enjoyed pleasant conditions even in the bearish trends of the domestic equities. In 2018, when a majority of the mutual funds struggled to maintain positive returns, Tata Digital India Fund provided nearly 25% gains in the calendar year of 2018. Weakness in rupee was a prominent reason that aided the IT sector growth. In 2019, the market has been turbulent in the international as well as domestic market due to general elections, fluctuations of crude oil prices, US-China trade war, etc. Due to which, the IT sector is also facing inconstant conditions.

About the Performance in 2019

For Tata Digital India Fund, the start of the year was perfect and superior gains were provided by the scheme in the initial months. However, the market turned volatile in later trends and so was the NAV of Tata Digital India Fund. Nothing can be predicted as of now as the general elections and trade war between US and China will be deciding factors.

What Should You Do?

According to the experts at MySIPonline, Tata Digital India Fund is a prominent sectoral scheme which has been a top performer under every market condition. It is focused only over IT stocks and possesses high risk. Investments must be done for the long term while opportunities to maximise the gains can be grabbed by purchasing more units when the NAV falls. The fund is more suitable for experienced investors as it is highly dependent on market conditions. New investors must take suggestions from an expert before investing. India has a great scope in IT sector and long term investments in Tata Digital India Fund can be quite rewarding for the investors.

Tata Digital India Fund is a late entrant in the category but has beaten all the peers under right market conditions. It is operated by supreme management staff at Tata Mutual Fund and is one of the best sectoral mutual funds in India. To start your investment now, download the MySIPonline app and become a successful investor. 

Does the Rising Pharma Sector Signaling Better Investing Opportunities for Us?

India enjoys a dominating position in the pharmaceutical market, sharing almost 50 per cent of the global supplies of medicines and sundries. The advanced countries like the US and the UK depend upon India’s chemical excellence for the betterment of their medical advancements, thus making India the largest supplier of generic drugs worldwide. In addition, the country homes one of the largest group of scientists and engineers who dwell the capability to steer the medicinal industry in the near future.

Amidst all this advancement in the pharma sector, mutual fund companies have gathered a new venture for expanding their product line. Many fund houses have initiated sector-based investing primarily pinning on the pharma sector, thus sharing the success of the industry with the investors. Online marketing and investment facility have further accelerated investments in the pharma driven mutual funds, thus making it one of the most likable option in investment.

Rising Online Investing in India

MySIPonline – North India’s leading online investment brand – provides top investment products and an easy online pathway to invest in them. Though just a few years old, the company has taken an enormous lift and has become the favourite spot for mutual fund shopping in India. The fund experts and reviewers heading MySIPonline are known for unbiased opinions on market and its periphery, and have helped thousands of people realise their financial goals. Let’s check their view on the pharma industry in India, and what it holds for the investors in future.

The Reality of India’s Pharma Industry

As discussed above, Indian pharma brands are topping the charts worldwide in exports of various medicinal goods, be it bulk drugs, intermediary supplies, surgical equipment or sundries. In the year 2017, the Indian pharma industry was valued at more than $30 billion, with an expected rise of 22% by the year 2020. Further, the turnover in the domestic market grew by 9.4% like clockwork from a value of $17.87 billion in 2017 to $18.12 billion in 2018. This figure is expected to rise to a whopping $100 billion by 2025, given the fast pace technological advancements and friendly market conditions.

Acceleration in Subscription of Pharma Mutual Funds

With an epic rise in the pharma industry, there has been a substantiate growth in the number of subscribers of pharma mutual funds. Statistics suggest that investors today prefer at least one sector based fund in their portfolio, which mostly pertains to the pharma sector only. As a result of the surge in the pharma industry, the mutual funds in this sector have also showcased outstanding performance in the last five year. Report say that the top performing pharms sector mutual funds have yielded returns as high as 14%, thus becoming one of the most promising investment sectors in India.

The Word of Caution 

Though pharma sector is a high paying industry, the scenario is not always a very profitable one. Like any other industry, pharma sector too is sensitive to government policies which tend to change according to the global market scenarios and current domestic condition. Hence, it is recommended that you should step forward to make an investment in this sector only after taking due information, and shall select funds that match your investing profile. If you are sceptical about your profile or are apprehensive about your fund choices, then taking the assistance of MySIPonline’s support team is highly recommended. Besides getting free advices on making the best portfolio plan, MySIPonline provides free online portal to submit your funds into various avenues.

So, what are you waiting for? Join the league of successful investors today! Pick your phone and dial MySIPonline, now!