Skip to main content

Mutual Fund is the best Route to Invest in Multiple Asset Classes

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

This explains why asset allocation funds are best suited to help you create wealth in the long term by taking exposure to gold, equity and debt

Gold has lost some of its glitter lately. The price of the metal in rupee term is down 10% in the last six months. Strangely, investors have poured in money into gold and various products with allocation to gold during the same period. Money managed by gold ETFs has grown to . 12,057 crore on January 31, 2013, from . 9,614 crore on January 31, 2012.
However, this doesn't capture the whole story. Investors have also put their money in mutual fund schemes with exposure to gold in a big way. Riding on the gold prices in the past few years, some of these products were launched as recently as the second half of 2012, and investors have responded positively to them. The largest among them -- Axis Triple Advantage Fund-- manages an average monthly AUM of . 884 crore. And these schemes are disparate: there are monthly income plans (MIP) investing in gold along with debt and equity; debt funds with some allocation to gold; and some multi asset funds investing in varying mix of gold, equity and debt. According to investment experts, investors are gradually moving towards these funds because of the ability of these schemes to contain the downside risk in volatile markets. Gold-based MIP and asset allocation funds have gained assets in last couple of years. Axis Triple Advantage Fund and Taurus MIP Advantage have seen prominent increase in their asset base. With diverse mandates, risk and reward associated with each of these products changes, and that makes the choice tougher for investors. Limited performance history is another handicap. Investment objective and asset allocation of the scheme is an important factor and it should match the investor's financial goal.


If you are a conservative investor, you can consider MIP products with allocation to gold. If you are a growth-oriented long-term investor, consider asset allocation funds with exposure to gold.


To begin with, take a closer look at these schemes. The first sub-segment includes monthly income plans or MIPs investing in debt, equity and gold. A word of caution before proceeding: these products will have portfolios that would generate some distributable surplus at regular intervals, say, monthly; but don't bank on it as they are not guaranteed. Most of the money (around 65%) is invested in debt and the rest is invested in equity and gold exchange traded funds.


These products are conservative and are suitable for investors with low risk appetite. These schemes are expected to cater to the income needs of an investor. Religare MIP Plus and Taurus MIP Advantage are the schemes in this segment. Second sub-segment includes hybrid funds where the scheme invests in debt and also has an exposure to gold. Debt allocation is pegged at minimum 65% of the assets. Canara Robeco Indigo and BNP Paribas Income and Gold are the schemes in this segment. The purpose of these funds is to earn regular income from debt investments and investments in gold exchange traded funds. The third sub-segment includes funds that invest in multiple asset classes. The difference between these funds and the monthly income plans is the asset allocation. A monthly income plan is a debt heavy product by default. But the multi-asset fund allows the fund manager relatively more allocation to equities and gold. In some cases, the fund managers can invest up to 65% of the money in equities. Mutual funds such as IDFC, Morgan Stanley, Axis and Quantum have launched products in this segment.

 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...
Read more

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now