Should I Invest in the Top Ranking Mutual Funds?

‘Rumors are meant to be spread,’ those who actually mislead others with the wrong information, believe this line. That is why they keep on spreading the incorrect information about different things. In case of mutual fund investments too, there is a big confusion among the investors that they should invest in the top ranking funds or not. And, it is because of having incorrect knowledge.

Some investors say that one should not trust the rankings of mutual funds, while some say that investment in top ranking mutual funds can be a good bet. But when we approach them with a question ‘Why?’ they have nothing to explain. It is because people easily believe what they hear from others rather than digging into the facts. Let’s know what our experts say about investing in the top ranking mutual funds: 

Neither you should completely believe in the mutual fund rankings, nor you should ignore them. Yes, you can consider investing in them if the investment profile is matching to that of yours. For the best results, it is suggested to consult a financial expert before choosing any scheme. However, it is not that all the top ranking schemes are good for you. There are many blockbuster movies which you don’t like because they do not belong to the category that you enjoy watching. Similarly, all the mutual funds have different style, objective, portfolio, performance, etc. You need to select the one on the basis of your investment profile and objectives. Now, out of those selected ones, you can consider the ratings to know which one has performed superior. Remember one thing that not to compare the schemes of different categories on the basis of star ratings.

What Is Mutual Fund Star Rating? 

Mutual fund star rating is an indicator of the overall performance of the scheme. More precisely, it shows that how the scheme has performed over a certain period of time. There are some rating agencies which provide star ratings to the mutual fund schemes considering the various parameters such as performance, asset class, category, etc. CRISIL is one of the rating agencies that rates the mutual fund schemes and provides them star ratings. For instance five stars means 1st rank to the scheme that has performed excellently, for the performance level little down, it gives a four-star rating. And so on till the one star and no ratings if the scheme is unable to match the criteria of the agency. 

Here’s the List of Some of the Top Ranking Mutual Funds to Invest in India:

1. L&T Emerging Business (G)
2. Aditya Birla Sun Life Small&Midcap Fund (G)
3. Reliance Small Cap Fund (G) 
4. Aditya Birla Sun Life Top 100 Fund (G)
5. L&T Midcap Fund (G)
6. Motilal Oswal MOSt Focused Multicap 35 Fund - Regular Plan (G)
7. Sundaram Rural India Fund (G)
8. Tata Equity PE Fund (G)
9. ICICI Prudential Long Term Fund - Regular Plan (G)
10. HDFC Small and Mid Cap Fund (G)

The schemes which mentioned above are the 1st rank holders by the CRISIL for the quarter ended September 2017. In the list, the schemes of different classes and categories are mentioned.

The mutual fund rating agencies rate the different schemes on the various parameters. Still, it is never suggested to depend on them completely. It is better to consult a financial planner. You can check out the top ranking mutual funds on our portal, i.e., MySIPonline, and consider them for investment after consulting with your advisor.

Buy Right and Sit Tight with Motilal Oswal Mutual Fund!

In today's world where technologies are doing unbelievable maneuvers every day, there has been a drastic change in our everyday living due to new innovations creeping in that have provided prolonged betterment to our lifestyles. With such commendable evolutions taking place in the technological industry, investing in mutual funds have never been simpler. Emergence of such technical reforms have opened new pathways for constructing lucrative investment schemes including Motilal Oswal Mutual Fund, which is one of the most rewarding funds in India and has recast the performance trend in the financial industry. In this write-up, you’d get to know about the various features of this fund house, and will be able to determine whether you should hand over your hard-earned money to it. Keep reading and grab the opportunity of multiplying your wealth with one of India's best mutual funds. 

Getting Started

Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company that came to life on November 14, 2008, and is registered under the Companies Act, 1956. The AMC is also a duly certified portfolio manager registered with SEBI under the SEBI (Portfolio Managers) Regulations, 1993. Apart from providing world-class mutual fund products, it is also engaged in offering a horde of other management and advisory services to offshore funds, financial consultancy and exchange of research on commercial basis, all subject to approval of the regulators and its trustees, and ensures that such services do not conflict with the activities of the mutual fund.

Investment Philosophy 

Motilal Oswal MF follows the policy of 'Buy Right – Sit Tight' in applying public wealth to several industry sectors. 'Buy Right' simply means investing in companies that have a promising future, and 'Sit Tight' means holding your investments in them for a longer period to reap the full growth potential of the funds. Let's further discuss this philosophy in detail:

Buy Right: Q-G-L-P Approach in Buying the Perfect Funds

• Q: Quality in business administration and execution
• G: Growing exponentially in terms of earning and return on investments
• L: Longevity in the competitive stake by achieving economies of scale
• P: Price for which a business acquired is fairly lower than the expected future earnings

Sit Tight : Focus and Discipline

A company may be in business for decades and may have acquired a mark in the industry, but it's obvious that the prospects of the company change frequently, sometimes even on daily basis. Thus, one needs to stay invested for considerably long period to unlock the full advantage of investments in the best mutual funds. 

• Focus: Motilal Oswal Mutual Fund encompasses portfolios with high conviction, soaring up to 20-25 different fund schemes. It duly acknowledges that over-diversification may result in dilution of the returns and can also aggravate the market risk for the investors. 
• Discipline: The fundamental principle on which this AMC works is choosing the best performing funds in the market, and benefiting the investors by letting the invested capital pass through the complete growth cycle. Following such disciplined ideology is what made Motilal Oswal as one of the most trusted brands in the fiscal industry.

Investing in mutual fund is reasonably tricky, and you are sure to face some difficulties in making right investing decisions. However, fund houses like Motilal Oswal MF ften come up with exceptional products and let you choose the correct alternative for your wealth to multiply. Get instant solutions to all your financial queries at MySIPonline and achieve your objectives.

Sundaram Diversified Equity: A Long Term Tax Saver Fund

Sundaram Mutual Fund is one of the most trusted asset management companies in India which was launched in the year 1996. It is a part of the one of the oldest and well-known financial groups, i.e., Sundaram Finance Limited Group. Spreading the expertise in the industry of mutual fund and making the dreams of the investors come true, this AMC has been consistently stepping toward new heights of success. Moreover, it offers various types of mutual fund schemes which have the potential to fulfil the different financial needs of the investors. Among the many, one of a kind is the long-term tax saving scheme. The tax saving scheme of Sundaram Mutual Fund helps the investors to avail the tax benefits u/s 80C of the Income Tax Act. Here’s all you need to know about the scheme in detail so that you can plan your tax saving route for the upcoming financial year ending:

An Overview: It was launched in the year 1999, and has faced many ups and downs of the market swings. It has recorded the mark at 18.30% as returns since launch. While providing the tax benefits to the investors, it also offers them attractive returns from the investments in equities. Its performance is measured against the benchmark, S&P BSE 200. The fund has a good record of trailing returns in the cycle of three, five, and seven years which are tracked at 14.15%, 17.44%, and 10.40% respectively as on November 09, 2017. The NAV of sundaram diversified equity A long term tax saver fund scheme has amounted to Rs. 102.45 as on November 09, 2017. The total assets under management are amounting to Rs. 2,088 crore as on September 30, 2017. Altogether, it shows that this scheme has provided excellent growth to the investors.

Portfolio Allocation: Being a diversified equity scheme, this fund invests in the mix of small, mid, and large-cap stocks in the proportion of 6.80%, 38.23%, and 54.98% respectively. Therefore, it also diversifies the risk involved in investing in a particular stock. The below table shows the top ten holdings of this scheme which hold almost 30% of the total capital:

From the top ten holdings of this scheme, you can have an idea of the overall portfolio asset allocation strategy of the fund manager. It aggressively invests in the stocks of the companies in the financial sector which amounts to nearly 30.35%.

In the bottom line, there is no doubt in saying that you can choose this scheme to invest in. The year-end is approaching, and you must get ready to avail maximum benefits in your tax. To know more about how you can earn profits by investing in mutual funds, get associated with us right away at MySIPonline.

Tata Mutual Fund: This Is What You Should Know Before Choosing its Schemes

The growing awareness of mutual fund investments is helping the novice investors to reap exceptional benefits from their investments. But, still, there are many who are left out from the amazing exposure of MF. They don’t even have the idea about the excellently rewarding world of mutual funds.

There are more than forty asset management companies and many other regulatory bodies which are indulged in the working of the mutual fund investments. All are spreading awareness in one or the other way to promote financial literacy amongst the investors. Tata Mutual Fund is one of the best and trusted AMCs in India that is putting in effort towards educating the people to help them invest in and earn big returns.

It is helping the investors to get an adequate information about their capital investment and have transparency between the fund house and the investor. In this way, this company keeps the investors’ interest at priority. This fund house offers a wide range of investment solutions to the investors and provides them adequate details about the schemes in which they can invest in. If you have decided to invest in the Tata Mutual Funds, then you must check the following points:

1. Know the Investment Style: You should know the investment nature of the fund in which you are deploying your hard-earned money. For instance, if you are an aggressive investor and unknowingly you chose a conservative scheme, then you will not enjoy more profits as the conservative fund will not allow you to stretch your investments at the fullest to earn high profits. 
2. Know Your Risk: Although the Tata Mutual Fund has gained a big brand name and won the trust of millions of investors by providing them good returns on their investments, it is not necessary that all the funds of this AMC are safe. Actually, various schemes of this fund house have different risk profiles depending on their investment style and objectives. You must analyze how much risk you can take and accordingly invest in the most suitable fund. 
3. Know the Expenses: A certain amount of expense which is known as the exit-load is charged to the investors by the AMC as a fee for the management of the scheme. The time you invest in any mutual fund, you also hire the services of fund manager, who is liable to manage the movements of the scheme for the best possible results. So, the AMCs charges a small amount from the investors as a fee to fund manager. You can choose to invest in the scheme which charges less exit load. 

Other than the above-mentioned points, there are many other things that you must know before investing in any mutual fund scheme in order to get a hassle-free investment experience. If you want to know about the most suitable fund for you by comparing the various details of the different funds, then visit us right away as we, at MySIPonline, offer amazing investment services to our clients.

A Deep Dive Into the Various Benefits of the Mid Cap Funds

Don’t you want to invest in a scheme which can help you to reach your investment goals while maintaining a balance between growth and value? If yes, then there is a way which can lead you towards your financial target efficiently. Mid cap category of mutual funds justifies the requirements of the investors who desire to walk on the path of wealth creation while maintaining both value and growth. Therefore, it stands among the best choices of the investors. However, the sub-categories make differences in the choices due to the varying nature of the investments and portfolio holdings. So, before you invest in any mid-cap fund, you must have an adequate understanding about them.

What Are Mid Cap Funds?

The schemes which invest in the stocks of the companies having the market capitalisation ranging from Rs. 500 crore to Rs. 10,000 crore are termed as mid cap fund. Generally, the investors of these funds need to stretch the investment duration for a longer period as compared to the large-cap ones due to the nature of the companies. They are known for the benefits they provide from the excellent combination of the returns and capital appreciation. As the mid-cap companies are those which already have traveled through the phase of a start-up and heading toward the way to become a large company, they provide benefits of both the small-cap and the large-cap funds.

When comparing the small-caps with the mid-cap category, the latter one get least affected by the market volatility because they have strong presence. Moreover, the mid-caps enjoy more growth opportunities than that of the large-cap peers as the latter one are well established and grown up and have less ways to stretch its versatility.

Some Major Benefits of the Mid-Cap Mutual Funds:

• They adopts the innovations and changes in the market faster as they are adequately diversified in their products or services and specialised in their niche. 
• Mostly, the mid-cap stocks tend to beat the performance of the other two categories in terms of growth and value in the long run.
• For the investors who are ready to stay invested for a longer investment tenure, this category serves the best benefits of big returns. 

There are several more advantages of deploying the hard-earned money in the schemes of mid-cap space. You too can reap them by investing in the most suitable one. We, at MySIPonline, have plenty of the best performing mid-cap mutual funds. If you want to fetch the excellent benefits of investing in them, then visit us right away and start on a good way toward the achievement of your financial dreams.

Do you want to save tax while investing?

All of us aspire to get something extra within the same price that we pay for a single good. This is a common human tendency which makes us choosy and we search for avenues which can provide maximum satisfaction to our needs according to the money spend for them. But, when it comes to tax planning, we follow the advice of a tax-planner blindly or go by mouth publicity, which is a wrong practice. Investing along with tax saving is a difficult task for all the clients and needs to be taken care of very efficiently. Thus, to resolve the turmoil mutual fund experts have launched a scheme which allows the clients to save their taxes and at the same time enjoy capital appreciation within a single scheme. The scheme is known as ELSS (Equity Linked Saving Scheme). It allows the clients to access a scheme which abides by all the rules defined under the Section 80C of the Income Tax Act.

Understanding ELSS in a better way

Tax saving is an intricate task for the clients who fall into a higher tax bracket. They are confused about the investment mechanisms which will allow them to save tax and provide higher returns on their savings. The general tax saving mechanisms known to people are PPF and NSC. Both these schemes are government sponsored and gives a rate of interest to the clients. These are similar to having a bank account but differ a little bit. But, with two restrictions, namely, restriction on withdrawal and a minimum amount to be deposited every year. On the contrary, mutual funds have launched ELSS with a view to embracing twin benefits to the clients. ELSS allows the clients to invest in mutual funds and avail the benefits of tax saving. ELSS fund enables the client to invest a sum of Rs. 1.5 Lac, which is the permissible tax rebate limit. This means that the clients can invest Rs. 1.5 Lac from the total taxable income of the clients.

How tax rebate is applicable?

ELSS is a scheme defined under the Section 80C of the Income Tax Act. As per this Section, the clients have the right to save tax up to Rs. 1.5 Lac if their annual income exceeds Rs. 2.5 Lac. The clients are free to invest either the entire amount in ELSS scheme or they can diversify their investments between different tax saving options. For example, a client’s annual income is Rs. 5 Lac. The limit on which a client need not pay taxes according to the tax slab is Rs. 2.5 Lac. Tax is chargeable on the remaining Rs. 2.5 Lac. From this sum the client can save extra Rs. 1.5 Lac, so he will have to pay tax on the remaining 1 Lac which will be less as compared to the tax that has to be paid on Rs. 2.5 Lac. The client will benefit the most if he invests the entire amount in the ELSS fund, as it will provide him with better benefits as compared to any other scheme. All government sponsored schemes provide a rate of interest as low as 8% while ELSS scheme provides a return rate of 15%. Along with having a lock-in period of three years ELSS scheme has been rated as one of the tax savers which has a less lock-in period as compared to any other plan.

Thus, investing in mutual funds will not only save your tax but will also enable you to create a corpus for your future needs on the whole. So, if your income falls under the taxable slab then you can surely opt for ELSS scheme. You can also take up the online ELSS investment through My SIP online which will allow you to monitor your funds and investment in a simple manner.

Mutual Fund News: BSE Sensex Lost 1,270 Points on Wednesday

The longest losing streak of 2017 in the past seven days. The BSE Sensex went down to 31,154.03 on September 27 from 32,432.76 on September 18. Big amount wiped out from the market leaving behind the investors in the sense of shock. The listed companies under BSE loosed over 6.18 lakh crore in their capitalisation. The Sensex has lost 1,270 points in the last few days witnessing to a great fall in the market. This southward flow has laid significant impact on the behavior of the mutual fund investors too. Questions are floating rapidly in the air and queries are being frequently made. Investors are willing to know that whether they should wait for the market to go deeper or it will take the turn from this point. Let’s know some of the parameters which are making the bulls to run away from the market:

Weak Rupee: A sharp fall in the rupee is one of the reasons for this market drop. It weakened for a fifth straight session to hit a fresh six-month low on September 27. The foreign investors don’t like deploying their capital in the weakening currency. Rather, they look for the market which has strong fundamentals and expectation of growth in the value of the currency. Therefore, the falling rupee made the FIIs pull their investment back creating a fall in the market.

Crude Oil Price: The steady rise in the price of crude oil is one of the significant reasons for the recent decline of the market. The rising price of crude oil has an inverse impact on the Indian equity market, and with the crude sweltering at a 26-month high, the rate is expected to reach $60 per bbl soon. This expectation does not indicate good picture for the Indian equity. Due to its inverse correlation with the Indian capital market, the boiling price making the equities sweaty.

Apart from the two mentioned above, there are several other factors which have their impact in the recent fall of the equity market in India. For the mutual fund investors, the market is open to big opportunities. Many uninformed investors spread this myth that one should not invest in the market downfall. But, the astute one knows that southward going market has the best opportunities for the investors and potentially provides high growth in future.

Therefore, it can be concluded that the equity market is on the best mode to invest in it. The investment made now will allow you to purchase more units of the underlying asset upon which the future growth will provide you added benefits. One must not miss the chance to reap the big profits from the down market. If you are willing to take the advantages of this market condition, you can start right away at the various online mutual fund platforms available like MySIPonline.com.