Tag: mutual fund

Rs 10,000 invested in this mutual fund has become Rs 3.2 lakh in 19 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ICICI Prudential Value Discovery Fund, among the most popular value funds in the market, has completed 19 years. With assets under management (AUM) of Rs. 32,659.44 crores, the fund accounts for nearly 30 percent of the total AUM in the value category.

The scheme started operations on August 16, 2004. The scheme is managed by Sankaran Naren and Dharmesh Kakkad. However, the scheme name has become synonymous with Sankaran Naren, who has been managing this fund since January 2021. The benchmark of this scheme has been revised from Nifty 500 Value 50 TRI to Nifty 500 TRI w.e.f. January 01, 2022.

The scheme went through a long tough time a few years ago but managed to make a strong comeback. Since its inception, the scheme has managed to offer a CAGR of 20 percent in the last 19 years. Hence, a lump sum investment of Rs 10,000 at the time of inception, would have become approximately Rs 3,20,000.

Also, a lump sum of Rs 10 lakh at the time of inception, as of July 31, 2023, would be worth approximately Rs 3.1 crore i.e. a CAGR of 20 percent. This return is considerably higher than the Nifty 50 index. A similar investment in Nifty 50 would have yielded a CAGR of 15.6 percent at approximately Rs. 1.5 crore.

The scheme follows a value investment style by investing in a diversified portfolio of stocks that have attractive valuations but are quoting at a discount to their intrinsic value.

“The greatest of the investing gurus, be it Warren Buffett, Seth Klarman, Joel Greenblatt etc. are all proponents of value investing as the way to build long-term wealth. We at ICICI Prudential AMC Ltd believe value as an investment style is here to stay as investors are increasingly becoming aware of what constitutes value and why it must be followed diligently. But the caveat here is that value can test one’s patience at times. We may have to wait for a long time for value to deliver on its promise,” said Nimesh Shah, MD & CEO of ICICI Prudential AMC.

“Through the journey of ICICI Prudential Value Discovery Fund, we have endeavoured to prove that value as a style works well in India as well. We are happy to note that the Scheme over the years has helped patient investors create long-term wealth.”

“Globally as well as in the scheme, there have been patches of time when value investing has not done well. However, if an investor is ready to be patient, then value investing will deliver sizeable returns over the long term,” said S Naren, ED & CIO, ICICI Prudential AMC Ltd.

“This is because the thesis of value investing is about buying stocks that have attractive valuations but are quoting at a discount to their intrinsic value,” Naren added.

He said, “Given the approach, it is advisable that investors should consider investing through the SIP route for the long term, especially during times when the past return is very good. On the other hand, when the past returns are low, we recommend investors to consider lump sum investing.”

Also Read:UTI Nifty Midcap 150 ETF opens for subscription: Should you invest?

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sebi sets new exit option timeline for mutual fund unitholders for change in control of AMC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Capital markets regulator Sebi on Friday came out with a new timeline for the exit option window period given to the mutual fund unitholders for change in control of asset management company (AMC).

Under the new timeline, a change in control of the AMC cannot be made unless the unitholders of the mutual fund would be given the option to exit on the prevailing Net Asset Value (NAV) without any exit load within a period of at least 15 calendar days from the date of communication. Earlier, this timeline was at least 30 days.

However, in case of change in control resulting in consolidation or merger of schemes, the unitholders would be given the option to exit on the prevailing NAV without any exit load within a time period not less than 30 calendar days from the date of communication, Sebi said in a circular.

Considering that growth in technological communication has enabled faster dissemination of information to unitholders, a request was received by Sebi from the mutual fund industry to review the timeline for the exit option window.

Among other requirements for change in control of a mutual fund are prior approval of the trustees and Sebi, a written communication about the proposed change to each unitholder and an advertisement in the newspaper about the proposed changes.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CRISIL mutual funds’ ranking for June quarter: A deep dive into ratings and key scenarios

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the world of investment, understanding how a fund’s performance is evaluated is crucial for both investors and fund managers alike. CRISIL has brought an unique perspective to fund ranking that goes beyond traditional performance metrics. Jiju Vidyadharan, Senior Director-Funds and Fixed Income at CRISIL Market Intelligence & Analytics, recently shared the distinctive approach employed by CRISIL in assessing funds’ success.

CRISIL’s approach to fund ranking sets it apart from conventional evaluations. Unlike other ranking systems that solely focus on performance, CRISIL delves deeper into both performance-based and portfolio-based parameters.

Jiju Vidyadharan emphasized that CRISIL’s methodology is tailored to each specific category of funds. This approach acknowledges that different fund categories have distinct investment objectives and risk profiles, necessitating a customized evaluation.

“We look at parameters which are relevant from a specific category,” he said.

One intriguing aspect of CRISIL’s assessment is its consideration of portfolio turnover, as illustrated by the HDFC Midcap Opportunities Fund. The fund’s significantly lower portfolio turnover indicates a prolonged holding period for its constituent stocks. This deliberate approach showcases the portfolio manager’s conviction in the selected stocks, implying a strong belief in their long-term potential.

Jiju Vidyadharan acknowledged that a fund’s performance is a composite outcome of well-timed sectoral calls and strategic investments in specific companies. The success of HDFC Midcap Opportunities Fund, for instance, was attributed to a mix of favorable sectoral movements and astute investments.

“The fund has come on top primarily driven by the performance which is a factor of both sectoral calls that have paid off as well as specific investments into companies or scrips,” he said.

This fusion of sectoral analysis and individual stock selection showcases the multifaceted approach that CRISIL embraces.

In recent times, the Quant Midcap Fund faced a challenge in its CRISIL ranking due to its unique exposure profile. Unlike the industry average, the fund exhibited a larger exposure to large-cap stocks and minimal exposure to small-cap stocks, a segment that had demonstrated robust performance. Jiju Vidyadharan pointed out that these exposure factors played a role in the fund’s ranking adjustment, underscoring CRISIL’s keen attention to portfolio composition.

“These two factors have contributed to the fund falling a notch in the CRISIL rankings,” he said.

For more details, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CAMS aims for 14.5% market share in non-MF business by year-end, says MD & CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chennai-based Computer Age Management Services (CAMS) reported earnings for the April-June quarter with significant improvement in revenue both sequentially as well as year-on-year (YoY). The company has witnessed high systematic investment plan (SIP) registrations and inflows. Its non-mutual fund business has also witnessed strong growth.

Established in 1988, CAMS operates as a transfer agency for mutual funds, catering to Indian asset management firms.

Anuj Kumar, MD and CEO of CAMS, said in an interview with CNBC-TV18 post result announcement that the company has set an ambitious goal to capture a substantial share of the non-mutual fund market, aiming for a remarkable 14.5 percent stake by the end of the current financial year (FY24).

He said, “We expect that non-mutual funds should continue doing better. We are at about 12.5 percent now. We expect that by the end of the year, this should get to about 14-14.5 percent of the total market.”

Key Highlights of Computer Age Management Services Q1FY24 Results

• The company’s revenue stood at Rs 261.30 crore, marking a growth of 10.4 percent compared to the same period last year.
• Profit before tax (PBT) reached Rs 101.91 crore, reflecting a year-on-year increase of 17 percent.
• The profit after tax (PAT) amounted to Rs 76.34 crore, indicating a growth of 17.9 percent compared to the previous year.
• The PAT margins were recorded at 28.2 percent, underlining the company’s profitability.

Kumar also shared insights into the company’s strategic initiatives and their impact on its financial landscape.

Highlighting that the businesses that have been effectively scaled are contributing a remarkable 40 percent of the company’s total revenue, he said;  “Our scaled businesses are delivering 40 percent to the EBITDA, which means our alternate business delivers that much; payments deliver about 30 percent.”

CAMS is now not only focused on adapting to changing market dynamics but also actively pursuing innovative opportunities. By targeting a substantial share of the non-mutual fund business, the company is positioning itself as a versatile player in the financial services industry.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Common mistakes Indians are making in Mutual Fund investing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mutual funds are popular investment vehicles that offer individuals the opportunity to diversify their portfolios and achieve long-term financial goals. However, like any investment, mutual fund investing comes with its own set of risks and challenges. To maximize your chances of success and avoid unnecessary pitfalls, it’s crucial to be aware of common mistakes that investors often make. This article aims to highlight some of these mistakes and provide insights on how to avoid them.

1. Neglecting Research: One of the most significant mistakes investors make is not conducting thorough research before investing in mutual funds. Neglecting research can lead to investing in funds that don’t align with your financial goals or have subpar performance.

To avoid this mistake, take the time to research and evaluate different mutual funds. Review the scheme information documents and fact-sheets to gain a comprehensive understanding.

2. Chasing Past Performance: Another common mistake is solely relying on past performance when selecting mutual funds. While historical performance can provide valuable insights, it’s not a reliable indicator of future performance. Funds that have performed exceptionally well in the past may not necessarily continue to do so.

Also Read: Direct versus regular mutual funds: Understanding pros and cons

Instead of chasing past performance, focus on a fund’s consistency, long-term track record, and investment strategy. Look for funds that have consistently achieved their objectives and demonstrated stability in various market conditions.

3. Impatience and Comparison to Equities/Stocks: Avoid the mistake of impatience and comparing mutual fund investing to stock market. Mutual funds are designed for long-term goals, so expecting immediate results or comparing them to direct stock investments can lead to unrealistic expectations and impulsive decision-making. Practice patience and keep in mind that mutual funds are meant for consistent growth over time.

4. Ignoring Asset Allocation and Diversification: Proper asset allocation and diversification are essential for managing risk and optimising returns. Some investors make the mistake of putting all their money into a single mutual fund or investing heavily in a specific asset class, such as equities or bonds.

To avoid this mistake, create a well-diversified portfolio by allocating your investments across different asset classes, such as stocks, bonds, and cash equivalents. Consider your risk tolerance, investment goals, and time horizon when determining the appropriate asset allocation mix.

Also Read: Income tax return: List of income sources you should include while filing ITR

5. Failing to Monitor and Rebalance: Investing in mutual funds requires ongoing monitoring and periodic rebalancing to ensure your portfolio remains aligned with your goals. However, many investors make the mistake of becoming complacent and neglecting this crucial step.

Regularly review your mutual fund investments and assess whether they are still in line with your investment strategy. Rebalance your portfolio by selling or buying funds as needed to maintain the desired asset allocation.

To conclude, mutual fund investing offers individuals a convenient way to participate in the financial markets and build wealth over time. By avoiding common mistakes, such as neglecting research, chasing past performance, ignoring asset allocation and diversification, and failing to monitor and rebalance, you can enhance your chances of success in the mutual fund arena. Remember to consult with an investment advisor to get personalised advice tailored.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Max Life Insurance prefers largecap indices over mid & smallcaps for comfortable growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Max Life Insurance Company on Wednesday said it prefers large-cap indices over mid and small-caps for comfortable growth.

In an exclusive interview with Mihir Vora, director, and chief investment officer (CIO) of Max Life Insurance, Vora pointed out the substantial inflow of money into mutual funds and portfolio management services (PMS). This influx of investments indicates a growing confidence among investors in these financial instruments.

The mutual fund industry’s popularity has been on the rise, driven by ease of investment, professional management, and potential for attractive returns. Similarly, PMS, catering to the needs of high-net-worth individuals, has also witnessed significant interest due to personalized investment strategies and tailor-made portfolios, he said.

“The fact is that so much money is coming into mutual funds and the PMS, alternative investment funds (AIFs), most of them are focused on mid and smallcap space. So, retail and HNI investors are chasing performance which is not necessarily a good idea at all times. If I look at the overall valuations and growth equation, the large-cap indices like the Nifty or Sensex give me more comfort,” Vora said.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Unlocking luxury: Mastering financial strategies to make your dream bag affordable and attainable

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Luxury handbags are often associated with exclusivity and high price tags, making them seem out of reach for many individuals. However, by adopting strategic financial approaches, such as investing in mutual funds, you can make your dream bag not only affordable but also attainable. We will explore how leveraging mutual funds can help unlock the world of luxury, allowing you to fulfil your desires without compromising your financial well-being.

Define your dream bag and set financial goals

The first step in making your dream bag attainable is to define the bag you desire and set clear financial goals. Research different brands, styles, and price ranges to identify the bag that truly captures your heart. Once you have a specific bag in mind, determine a realistic timeframe for your purchase and set a target budget. Having a clear goal in mind will help you stay focused and motivated throughout the process.

Create a dedicated savings plan

To afford a luxury handbag, it’s essential to have a structured savings plan. Start by analysing your current financial situation and identifying areas where you can cut back on expenses or make additional income. Consider creating a separate savings account specifically for your dream bag and automate regular contributions to it. Small but consistent savings over time can add up significantly and bring you closer to your goal.

Invest regularly and systematically

One of the key principles of mutual fund investing is to invest regularly and systematically. Through systematic investment plans (SIPs), you can contribute a fixed amount of money at regular intervals, such as monthly or quarterly. By consistently investing in mutual funds, you can harness the power of compounding and potentially grow your investment over time.

Choose the right mutual funds

Selecting the right mutual funds is crucial to achieve your financial goals. Consider funds that offer a balanced mix of equity and debt instruments, providing both growth potential and stability. Research various mutual fund categories, such as large-cap, mid-cap, or diversified funds, and assess their historical performance, investment advisor expertise, expense ratios, and risk profiles. Seek guidance from a financial advisor if needed.

Acquiring a luxury handbag doesn’t have to remain an unattainable dream. By implementing these financial strategies, you can navigate the world of luxury fashion while maintaining a budget. Remember, patience, persistence, and careful planning are key. Stay focused on your goal and enjoy the journey towards owning your dream bag. With the right strategies and financial mindset, luxury can

Long-term perspective

Investing in mutual funds for luxury bag acquisition requires a long-term perspective. Understand that the investment journey may span several years, allowing your money to grow and compound. Avoid succumbing to short-term market fluctuations and focus on the broader investment horizon. Over time, the potential returns from your mutual fund investments can help you finance your dream bag.

Unlocking luxury and making your dream bag attainable through mutual fund strategies is an effective and disciplined approach. By investing regularly, choosing the right funds, and maintaining a long-term perspective, you can leverage the potential growth of financial markets to accumulate the necessary funds. Stay focused, stay disciplined, and watch as your mutual fund investments pave the way to the luxury you desire.

Start your investment journey today. Click here to know more

Note: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

(This is a partnered post)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Quant Healthcare Fund opens for subscription: Should you invest?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Quant Mutual Fund on Tuesday launched a Quant Healthcare Fund (QHF) focusing on life sciences, insurance, and wellness companies. The fund will be open for subscription till July 11. This is the second sectoral fund by the fund house within a week, after the Quant BFSI Fund that was launched on June 20.

Individuals can invest under the scheme with a minimum investment of Rs 5,000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

More about the fund

This is an open-ended equity scheme investing in the healthcare sector. The investment objective of the scheme is to seek long-term capital appreciation by investing in equity/equity-related instruments of companies from the healthcare sector. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved, the fund house said.

The benchmark to the scheme is S&P BSE Healthcare TRI and will be investing across market capitalisations to optimise risk-return payoffs.

The fund managers of the scheme are Sandeep Tandon, Ankit Pande, Sanjeev Sharma, and Vasav Sahgal.

Allocation of assets

Investment strategy

According to Tandon, this is the best time to launch sectoral or themed product funds.

“The markets may correct at any time, and post-correction the first sector that is expected to emerge is BFSI. After that healthcare will emerge, and then technology and manufacturing will emerge,” he said.

However, it must be noted that the scheme is mentioned as a “Very High Risk” one as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. Experts say investors should consult their financial advisors if they doubt whether the product is suitable for them.

It must also be noted that the healthcare sector has historically been a decent long-term investment, but it has also been volatile in the short term. One should know that performance in the past year is not necessarily indicative of future performance.

A look at the performance of other healthcare funds

(Source: Moneycontrol)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Small Cap Fund to stop accepting lump sum investments from July 1: What it means for investors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Mutual Fund has decided to stop accepting lump sum amounts and switch-in investments in Tata Small Cap (TSC) Fund from July 1, 2023. The fund house, however, said that they would continue accepting investments through systematic investment plans (SIPs) and systematic transfer plans (STPs).

The move will stay effective until further notice, the asset management company said.

The trigger

According to Anand Vardarajan, Business Head – Banking, Alternate Products & Product Strategy at Tata Asset Management, the mentioned fund had been doing very well but due to the illiquid nature of small caps, deployment takes time, as one has to wait for the right opportunities.

He said chasing the stocks might drive up the price, thereby, defeating the very purpose of investing and that they wanted their investors to have a good investment experience.

Typically, fund houses restrict subscriptions in the scheme when they do not find enough opportunity to deploy the cash. This practice is employed to maintain the overall investment strategy and protect the interests of existing investors.

What happens now

The fund house has said that the lump sum and switch-in investments in Tata Small Cap Fund would be accepted until the cut-off time of June 30, 2023. After this, investors would not be able to invest via these modes.

However, all existing SIPs and STPs will continue and investors can also register new ones. There will be no restrictions on redemptions and switch out of the scheme.

For existing investors, experts say that those who are bullish on growth opportunities may continue to remain invested. But, it’s better to wait till the restrictions are lifted to deploy fresh capital. Alternatively, they can opt for the SIP route.

About the fund

Launched in November 2018, Tata Small Cap Fund invests 86 percent in domestic equities, of which 65 percent is invested in small-cap stocks and the remaining in large- and mid-cap stocks, besides debt instruments and REITs and InvITs. Chandraprakash Padiyar and Satish Chandra Mishra manage the scheme.

The fund has delivered 43 percent return in the last three years and has assets under management (AUM) of Rs 4,400 crore. Huge inflows and delay in deployment have led to a cash holding of 14 percent in the scheme.

Small-cap funds

Association of Mutual Funds in India (AMFI) data has recently revealed that investors chasing returns are flocking to small-cap funds, Of the total net flow of Rs 1.46 lakh crore into equity-oriented schemes, 15.1 percent or Rs 22,104 crore was invested in small-cap funds in FY23. This trend continued in FY24 (April and May) when of the total net flow of Rs 9,721 crore, a net flow of Rs 5,465 crore was into small-cap funds.

Here’s a look at some of the small-cap funds and their returns:

(Source: Moneycontrol)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow