Skip to main content

FT India Life Stage FoF – The 40s Plan

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 

Franklin Templeton India Life Stage FoF – The 40s Plan

 

Investors looking for some kicker returns from equities without too much exposure to the asset class can consider investments in FT India Life Stage Fund-of-Fund – The 40s Plan (FT India 40s Plan).


FT India 40s Plan delivered 11.3% since its launch in late 2003. Its return in the last 3 and 5 years bettered its category average as well as its benchmark – a blend of Sensex, CNX 500 and Crisil Composite Bond index.

Suitability


FT India 40s plan is a debt-oriented fund-of-fund which invests in a mix of equity and debt funds from the Franklin India stable. It has about 35% exposure to equity funds and rest in debt funds. That means it has higher exposure to equities than most debt-oriented MIPs (which have about 20-25% in equities). To this extent, the fund tends to take a bigger hit than MIPs in down markets. Conversely, in rallying markets, it performs better.

The fund is suitable for investors who have tested waters in mutual funds and wish to slowly up exposure to equities. We would prefer beginners to hold MIPs over this fund.

Although named the 40s Plan, the fund is suitable for investors with any age profile as long as they wish to keep exposure to equities to about a third. An investor looking for higher equity exposure than this would be better off with a balanced equity-oriented fund.

Being a debt-oriented fund, FT India 40s Plan will be subject to long capital gains tax for holding over a year as well (short-term capital gains if held less than a year). Investors can consider phased exposure in the fund through the SIP route, given that its equity component will provides opportunities to average cost.

Performance


With a return of 15.3% in the last 1 year, FT India 40s Plan delivered better than MIPs. Yet it was a notch lower than its blended benchmark index return of 16.1%. Clearly, the fund could not keep up with the equity rally, given its restricted holding and that too predominantly in large-cap funds.

That said, the fund has a consistent track record of beating its benchmark. On a rolling one-year return basis, for data taken in the last 3 years, the fund bet its blended benchmark 95% of the times.

FT India 40s Plan also did better than funds in the debt-oriented category, especially in rallies. This was evident in years such as 2005, 2007, 2009 and 2010. But in bear markets such as 2008, FT 40s Plan fell as much as 19% even as category peers such as HDFC MIP LTP contained fall to less than 9%.

Clearly, the additional equity exposure can cause some damage in a market rout. It is for this reason that during longer periods of volatility (as is the case in the last 3 and 5 years), FT 40s Plan would score only next to HDFC MIP LTP or Reliance MIP on a risk-adjusted return basis.

Portfolio


In its equity pie, FT India 40s Plan held about 20% in Franklin India Bluechip, a large-cap fund with a consistent long-term record. It held close to 10% in Franklin India Prima for some mid-cap exposure and about 5% in Templeton India Growth. The last-mentioned fund follows a value-oriented approach.

In its debt holding, Templeton India Income fund saw a 35% exposure while Templeton India Income Builder Account received about 30%. The former is a medium-term debt fund with portfolio maturity of a little over 4 years. It did not hold any gilts as of April.

The latter is a more aggressive fund with close to 50% in gilts and with a longer portfolio maturity. This combination works well to tap opportunities across the yield curve. The 1-year return of these 2 funds stood at 12% and 15% respectively.


The fund is managed by Anand Radhakrishnan, Sachin Padwal-Desai and Pallab Roy.

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 Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest 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 MutualFunds Invest 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

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
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