Will L&T Equity Fund Make You a Multibagger Investor?

Investing in equity markets is not as easy as it looks, investors go through bad phases before reaching to the best outcome. The same is happening with L&T Equity Fund. The fund has delivered many benchmark-beating performances in the past, but currently, it is going through its bad days. The fund and its strategies have been researched by the financial analysts of MySIPonline, to help the investors generate wealth, and the details of which have been provided below:

Fund Overview

Launched in the year 2004, L&T Equity Fund (G) is an open-ended scheme, which invests across the market caps. A multi-cap category fund has an AUM of 2,689 Cr as on Jun 30, 2018, with an expense ratio of 2.01%. The fund’s portfolio significantly comprises equity and equity-related securities with 98% of it. The secondary investment of the fund is in debt instruments, to maintain the limited required liquidity.

The average market capitalisation of the fund is Rs 69,658.30 Cr as on Aug 1, 2018. This capital is invested 52.39% in giant companies, 19.13% in large-cap companies, 21.35% in mid-cap, and 7.13% in small-cap companies. The fund is biased towards large-caps as they have positive growth.

Currently, it is investing in 64 companies from various sectors which majorly include finance and banking, construction, technology, services, FMCG, engineering sector, etc. The top five companies have 25.82% of total assets which are HDFC Bank, Larsen and Toubro, HDFC, IndusInd Bank, and Kotak Mahindra Bank.

Past Performance Analysis

L&T Equity has delivered the returns of 17.55% since its launch. The highest annualised returns of the fund were in the year 2009 with 86.14%. The fund has generated negative alpha on the basis of the past three years, which is -1.55%, as provided on 30 June 2018 by the financial experts of MySIPonline. 

The compounded returns of the fund for the past three, five, and seven years were 9.77%, 18.99%, and 13.38%, respectively. The fund has outperformed its benchmark, S&P BSE 500 TRI Index in the five and seven years compounded returns. However, it has underperformed the category’s average in all the years’ compounded returns.

The annualised returns of the fund for the year 2014 were 50.27%, 0.29% in 2015, 3.58% in 2016, and 34.19% in 2017. It has underperformed its benchmark in the past two years. Though, the fund has the capability to provide good returns in the long run.

Fund Manager

L&T Equity Fund Growth has been co-managed by Mr. S N Lahiri and Mr. Karan Desai. Mr. Lahiri has been associated with the fund since 2012. He is the Chief Investment Officer of equities in the L&T Mutual Fund. His convictions of taking a risk in companies with a strong background, high growth make it distinct from other fund managers. He follows the bottom-up approach of investment, keeping the growth companies in its portfolio.

Mr. Desai has been looking after the foreign investments of the fund. He has been associated with the fund since 2017. Both the fund managers use to invest in approximately 60 to 70 companies most of the time, with considerable diversification which helps them to gain profits.

The NAV of L&T Equity Fund G is Rs 84.748 as on Aug 1, 2018. The investors who have an appetite of tolerating a moderately high-risk should invest in the fund. The ideal investment horizon in the fund for an investor looking for wealth creation is five years or more. For more information regarding the fund and investment in the mutual fund, connect with our experts at MySIPonline.

How to Axe Your Tax Problem with TATA India Tax Savings Fund?

Paying tax is inevitable. It is basically the fee that you pay for living in a country, for using their facilities, and for being called their citizens. When such an important fee is evaded or delayed, the government is tempted to take strict actions. But why would one not pay his taxes properly? While one of the reasons that could be given for such a bold step is the high tax rates, lack of proper knowledge has a bigger role in triggering such steps.

Hence, to ensure that the Indian citizens are paying their taxes properly and are not cheating their government, TATA India Tax Savings Fund was introduced. This fund is the answer to all the tax problems that you might have, as it provides a horde of benefits. MySIPonline greatly admires the fund for its outstanding servility and performance that has lured many people to adopt legal ways of paying their taxes, rather than trying to evade it.

In this write-up, many interesting facts about TATA India Tax Savings Fund (G) have been given, which will make you wonder why you didn’t know them before. So, let’s get started!

The Introduction 

TATA Mutual Fund, one of India’s oldest and largest asset management companies, have always been known for providing superb solutions to the investment problems. In a country like India where tax is seen as a significant issue, TATA India Tax Savings Fund (G) acts as a pain reliever. It is an ELSS plan that qualifies for the many benefits allowed by the law, which are discussed later in this article. By giving phenomenal performances and helping innumerable people in sorting their taxes out, the fund has scored the rare four star rating from CRISIL which it has been holding on to for past many years. 

The Advantages

Investing in TATA India Tax Saving Fund Growth via an SIP plan purchased through MySIPonline is the ultimate pathway to a glorious investment plan. There are many advantages attached to investing in this fund as described below: -

• Tax Advantage :Section 80C of the Income Tax Act, 1961 states that an investment in an ELSS plans (and other authorised alternatives) can fetch a combined deduction of Rs. 1,50, 000 from the annual taxable income. This in turn will lead to a saving of Rs. 46, 800 from the annual tax bill, which is a superb saving. Imagine the amount you would have saved on your taxes in the next five to ten years!
  
• Excellent Rewards : Besides helping in axing the taxes, TATA India Tax Savings Fund (Growth) also provides handsome rewards. In the recent past, the fund has scored results that were as high as 20.86%, beating the benchmark performance (15.30%) and the peer returns (19.57%). Further, with this number the fund stands amongst the top five returns churners in the ELSS category.
  
• Least Lock-in : 
  Out of the many resorts available for saving taxes, ELSS plans are considered to be the best. This is because they provide the highest returns and also have the least lock-in period. Hence, TATA India Tax Savings Fund – Regular Plan (G) provides an opportunity for inculcating healthy investments habits, since the lock-in of three years doesn’t let you withdraw your funds prematurely and also saves you from paying the exit load.  

Hence, if you are facing a lot of trouble in controlling your soaring tax bills, then you must invest in TATA India Tax Savings Fund. Buy an SIP plan in this fund via MySIPonline for a flawless start to tax saving.

Uncover Hidden Opportunities with L&T India Value Fund

Every scheme in the mutual fund market brings with it opportunities some hidden and some known. What an experience it would be to explore the hidden opportunities for growth by investing in a scheme? Wondering if there is a scheme like that? L&T Mutual Fund launched L&T India Value Fund on January 08th, 2010, that helps you do so by focusing specially on investing in undervalued securities. It helps an investor earn long-term capital appreciation by investing in the equity and equity related instruments in the Indian market. It may also invest additionally in the foreign securities in international markets.

The Masterminds Who Are Handling L&T India Value Fund

This fund is jointly managed by Mr. Venugopal Manghat and Mr. Karan Desai. Mr. Venugopal Manghat has been managing the fund since November 2012. He has done B.Sc in Mathematics and holds a master’s degree in Business Administration with specialization in Finance. He was working with Tata Asset Management Ltd. before joining L&T Mutual Fund. Apart from this scheme, he has been simultaneously managing many other schemes such as L&T Conservative Hybrid Fund, L&T Equity Saving Fund, L&T India Large Cap Fund, etc. Mr. Karan Desai has been managing this fund since February 2017. He has done B.Com. from University of Mumbai and M.Sc in Investments from Birmingham University. Before joining L&T Mutual Fund, he was working with L&T Investment Management. Other schemes that he is handling along with this one are L&T Equity Fund, L&T Hybrid Equity Fund, L&T Business Cycles Fund, etc.

Who Should Invest in This Scheme?

L&T India Value Fund is for those investors who are willing to park their money to earn long-term capital appreciation through investment in equity and equity related instruments in Indian and International market with focus on undervalued securities. The principal amount invested in this scheme is under moderately high risk which means that only those who have such risk bearing appetite should invest in it.

Facts About L&T India Value Fund Growth

L&T India Value Fund NAV as on July 23rd, 2018 was Rs. 35.438. The minimum initial application amount with which a new investor may start investing in this scheme is Rs. 5000 and the minimum additional application amount with which an existing investor may invest is Rs. 1000. There is no entry load which an investor needs to pay. If an investor redeems within one year of investment from the date of allotment, then he becomes liable to pay 1% as exit load. It invests 80% to 100% of its assets in equity and equity related instruments and up to 10% in foreign securities including overseas ETFs with the risk involved being medium to high. It also invests in debt and money market instruments up to 20% with low to medium risk involvement.

To invest in L&T India Value Fund by L&T Mutual Fund, log on to MySIPonline, an online platform that displays information about schemes after in-depth research. Make sure that it is in sync with your portfolio requirement, in case of any doubt consult a financial expert absolutely free of cost.

Get the Value for Your Money With ICICI Prudential Value Discovery Fund (G)

Value type mutual fund schemes are gaining popularity among investors and the reason behind that is their investment style and the value for money they provide on long-term investments. Value schemes basically select stocks which are trading at low levels but have good fundamentals and scope for growth. Today, we are going to discuss one such value scheme that has gained the trust of millions of investors over the years, and the scheme is ICICI Prudential Value Discovery Fund.

A Brief Introduction of Scheme

This scheme was launched on Aug 16, 2004, under the value-oriented equity category, with the objective to provide investors with good long-term returns by investing in a diversified portfolio of value stocks. This scheme has gained a large number of investors because of its consistent performance over the years and is currently managing an asset size of Rs 16,130 crore (as on Jul 11, 2018). ICICI Prudential Value Discovery Fund NAV as on Jul 11, 2018, is Rs 144.3 and the expense ratio that will be charged annually is 2.32% (as on Jun 30, 2018) of your principal amount. It has provided returns of 6.97%, 8.23%, 22.46%, and 19.72% in 1, 3, 5, and 10 years respectively. The scheme has beaten its benchmark and category in long-term returns of 5 and 10 years, but due to the volatility of 2017-18, it has failed to beat the benchmark in 1 and 3 years returns.  You can start investing in this scheme with a minimum investment of Rs 1000 and can start a SIP for as low as Rs 500.

Asset Allocation

ICICI Prudential Value Discovery Fund invests around 92.36% of its total investment in equity instruments and the rest in debt instruments. As for equities, it invests predominantly in large-cap stocks. It has 82.60% of total equity investment in large caps, 13.90% in mid caps and 3.49% in small caps. The major sectors that the scheme invests in are energy, technology, healthcare, finance, automobile, and engineering. The top value stocks that the scheme invests in are Sun Pharmaceutical Industries, Infosys, Wipro, Mahindra & Mahindra, ITC, State Bank of India, HDFC Bank and Larsen & Toubro. All these stocks were trading really high till the end of Jan 2018 but due to past volatility are trading at very lower levels now. All these stocks have great fundamentals and are expected to reach their intrinsic values soon. For a detailed portfolio of this scheme, you can visit MySIPonline.

Who can Invest?

ICICI Prudential Value Discovery Fund is an equity scheme so the risk involved is moderately high. As we can see, the fund is not performing well due to the current market volatility. So investors who are looking for short-term investments should stay away from it. On the other hand, if you are looking for an investment of 5-7 years and have moderate risk appetite then this is one of the best options for you. Investors who are new to the mutual fund market should stay away from this scheme for some time.

So this covers all the basic information about the fund that you will need to know if you are planning to invest in ICICI Prudential Value Discovery Fund. This scheme has given some of the finest long-term returns and is expected to perform likewise in future. To make an investment in this or any other scheme you can visit MySIPonline and can enjoy the hassle-free process.

Franklin India Smaller Companies Fund - Invest To Earn Big

Franklin Templeton Mutual Fund has launched a number of investment schemes for its investors. One of these schemes was launched on January 13th, 2006, in the form of Franklin India Smaller Companies Fund which focuses on investing predominantly in the stocks of small-cap companies that have high growth factor and are likely to become market leaders, thus leading to capital appreciation. You may invest in this scheme by logging on to MySIPonline.

Are You the Right Person To Invest in Franklin Smaller Companies Fund?

1. This scheme is for those investors who are ready to accept and bear moderately high risk on their principal amount, i.e., the aggressive ones.
2. If you are an investor who is looking for a scheme to add to your portfolio that can help you earn long-term capital gain, then you may invest in it.
3. Those investors who wish to gain by investing in the small-cap companies that are anticipated to perform very well in future are the right ones who should be investing in franklin India smaller companies fund growth scheme.

Who Are the People Behind Franklin India Smaller Companies Fund Growth?

This fund is jointly managed by three fund managers as follows:

• Mr. Hari Shyamsunder - He has been managing the fund since May 2016. He has done Mechanical Engineering from NIT, Tiruchirapalli and holds a Post Graduate Diploma in Management from IIM. He has also done CFA. Before joining Franklin Templeton Mutual Fund, he was working with BG India Pvt. Ltd.
• Mr. R. Janakiraman - He is an engineer and hold a Post Graduate Degree in Business Management. He has worked with companies such as Indian Syntans Inv. Pvt. Ltd., UTI Securities Exchange Ltd., and Citicorp Information Tech Ltd. before joining Franklin Templeton Mutual Fund. He has been managing this fund since February 2008.
• Mr. Srikesh Nair - He has done B.S. Marine Engineering from BITS Pilani and holds a PGDM from Management Development Institute, Gurgaon. Before joining this company, he was working with Goldman Sachs Services Private Limited. He has been managing the fund since May 2016 and is looking after investments in foreign securities.

Did You Know These Little Details About Franklin Smaller Companies Fund?

1. Franklin Smaller Companies Fund NAV is Rs. 57.4353 as on July 11th, 2018 and the assets under management were worth Rs. 7114 crores as on June 30th, 2018.
2. The minimum investment amount for the investors making investment in this scheme for the first time is Rs. 5000. The additional investment amount for the existing investors is Rs. 1000.
3. There is no entry load that is to be incurred by investors investing in it. If an investor redeems units within one year from the date of allotment, then he becomes liable to pay 1% as exit load. After completion of one year this amount too is nullified.

Hope you now understand what Franklin India Smaller Companies Fund is all about. If you wish to know more or compare it with other such schemes, log on to MySIPonline which is a one-stop solution for all that you are looking for!

Things You Should Know Before Investing in Liquid Funds

Liquid funds are among one of the safest investment options in the mutual fund market. People who previously used to invest in FDs and RDs are slowly shifting toward these schemes and the main reasons behind that are the difference in returns that these schemes have and the low-risk factor associated with them. In this post, we are going to discuss this category and will have a look at the performance these schemes have shown over the years.

What Are they?

Liquid funds are mutual fund schemes that fall in the debt category. These schemes share a common objective of providing moderate returns with low risk and high liquidity by investing in a mix of short-term debt and money market instruments. In simple terms, these are the funds in which you can invest your amount for short period of time without worrying about lock-in period or exit load charges. Liquid mutual funds invest mainly in debt instruments which have a maximum maturity of 91 days. These funds are one of the safest investment options available today as they invest only in high rating instruments. As for the liquidity factor, you can redeem your investment after 24 hours of allotment of units and the amount will be transferred to your bank account within a single day. Some AMCs (eg. Reliance Mutual Fund) have also provided investors with debit cards through which investors can redeem their money instantly. Some of the top performing schemes from this category are Reliance Liquid Fund, Aditya Birla Sun Life Liquid Fund, and ICICI Prudential Liquid Fund. To see other top performing liquid funds, you can visit MySIPonline.

Performance Analysis

Liquid funds have been providing consistent returns over the years. The average trailing returns given by the category in 1, 3, and 5 years are 6.86%, 7.29%, and 8.03%, respectively (as on Jul 06, 2018). These schemes showed a drop between Jun 2009 and Jun 2010 but recovered from it soon.

Risk Associated

Liquid Mutual Funds are the least risky, but not risk-free. As we know that it invests in debt instruments like bonds, debentures, FDs, etc., with a maturity period of 60 to 91 days. Now, let's say an instrument fails to pay up the interest even after the maturity is over, in that case, the ratings and market price of the instrument drop will also affect the NAV of the associated scheme. But this thing is highly unlikely to happen as most of the instruments are sponsored by government and top-notch brands. Other than this there is no particular risk involved. So investors who are new to mutual market can also consider investing in these schemes, without worrying about losing their principal amount.

With the above information, now you have the idea of what liquid mutual funds are and what kind of returns you can expect from such schemes. So if you are the kind of investor who wants to play safely in the mutual fund market and is looking for short-term investment, then liquid funds are what you need. For making investments in liquid mutual funds, you can visit MySIPonline and can enjoy our hassle-free process.

All You Need to Know About Reliance Growth Fund

Reliance Mutual Fund is a name which has proved its worth from time to time. This AMC has provided many top schemes in equities as well as debt categories. Today, we are going to discuss about one such top-notch scheme from this fund house and that scheme is Reliance Growth Fund.

Let’s have a look at what this scheme holds for its investors.

Key Parameters

This scheme was launched on Oct 08, 1995, under the diversified equity category and with the objective to provide investors with long-term capital appreciation through research based investments in equity and related instruments. Currently, NAV of Reliance Growth Fund is Rs 1060 (as on Jul 03, 2018) and an expense ratio of 1.95% (as on May 31, 2018). The assets under management as recorded on May 31, 2018, are Rs 6873 crore. As for the load charges, there is no entry load, but a 1% of exit load will be deducted if you redeem your investment before 1 year. The fund is currently being managed by Mr. Manish Gunwani, who holds several years of experience in the capital market. The minimum amount required for investment in this scheme is Rs 5000 for lump sum and Rs 100 for starting a SIP.

Fund Allocation

Reliance Growth Fund being a hybrid scheme invests in a mix of different market caps, but mid-caps are the most favored ones. The scheme has 16.15% of its total equity investment in large-caps, 71.46% in mid-caps, and 12.39% in small caps. As for sector allocation, finance is the most favored sector and holds around 27% of the total equity investment. Other top sectors that the scheme invests in are services, FMCG, health care, engineering, and energy. The top equity holdings of the fund are Varun Beverages, Muthoot Finance, Cyient, Bharat Financial Inclusion, Vardhman Textiles and many other. For viewing a detailed portfolio of this scheme, you can visit MySIPonline.

Performance Analysis

This scheme has shown some really good growth over the years. Reliance Growth Fund has given returns of 3.14%, 9.15%, 19.71%, and 13.75%, in 1, 3, 5, and 10 years, respectively. Though the short-term returns are not that good, a really good improvement can be seen in long-term returns provided by the scheme. A great drop was observed in the scheme between Mar 13, 2000, and Mar 13, 2001, which it started recovering from in starting of 2003. You can visit MySIPonline for a complete performance analysis.

Who Can Invest?

Reliance Growth Fund G is a great option for investors who are looking for investment in mid-cap oriented hybrid equity schemes and are ready to take a moderately high risk with their investment. This scheme is highly affected by the volatility of equity market, so investors should keep in mind to check that before making a final decision.

Above is all the information that you are going to need about this fund. Just keep in mind to do a self research and to always consult your financial adviser before making an investment. To get expert views on mutual fund schemes, you can get in touch with us at MySIPonline.