Skip to main content

IDFC SSI Medium Term Fund Plan A

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

IDFC Medium Term Fund

In recent months, gilt funds have kindled the interest of investors looking to participate in a possible rally in the debt market, when interest rates fall. But the illiquid nature of many of the government securities, their long-term maturity and the ensuing volatility make pure gilt funds less suitable for retail investors who cannot time their way in and out of these products.

But if you are still keen on taking some exposure to this segment of debt with relatively lesser risks than pure gilt funds, then IDFC Super Saver Income Fund Medium Term (IDFC SSI Medium Term) may be a good option. With a return of 9.3 per cent compounded annually over the last five years, the fund comfortably beat its benchmark Crisil Short Term Bond index return as well as category average return of 7.5 per cent annually. This return is also higher than Crisil 10-year Gilt index return of 6.1 per cent, suggesting that pure gilt may not return too well in the long term.

Suitability

Despite limited exposure to long-term gilt, IDFC SSI Medium Term requires some risk appetite on your part. For one, about a fourth of the portfolio is exposed to gilt. Any volatility in this segment or wrong forecast on interest rates can hurt fund returns. Two, the fund has a portfolio maturity of three-plus years. Instruments with longer maturity are more sensitive to interest rate movements. Three, the fund has a high proportion (60 per cent) in corporate bonds. While these have a rating of AA+ and above, they are not free of risks and do not have any sovereign guarantee.Overall, the fund will have a higher degree of interest rate risk, although it exhibits lower credit risk.The fund is suitable for investors with a time horizon of over two years. Ideally, we would prefer this fund to be part of your long-term portfolio. The fund has an exit load if you redeem within 9 months.

Performance

 

IDFC SSI Medium Term's rolling return record in the last three years was top notch, with the fund beating its benchmark 100 per cent of the time. That means, irrespective of when you had invested in the fund in the last three years, you would have beaten the benchmark. While the fund cannot boast of a similar record since its inception in 2003, to its credit, it has not had any negative-return stints on a one-year rolling return basis.

In the past year, quite a few income funds have managed 11-13 per cent one-year returns compared with IDFC SSI Medium Term's 10.2 per cent. Templeton India Income Builder is an example.

But the latter has managed this by not only donning a longer maturity profile but having instruments with slightly lower credit ratings compared with IDFC SSI Medium Term. That means those funds take on both interest rate risk and credit quality risk to generate higher returns.

On a rolling return basis though, IDFC SSI Medium Term's average one-year return (over three years) of 8.6 per cent is higher than some of the current chart toppers. This suggests that the current out-performance by peers may not always be sustained.

IDFC SSI Medium Term can be expected to benefit from any gilt rally that may happen before March 2013 if interest rate cuts happen.

Portfolio

The fund currently has 24 per cent of its assets in government bonds and 60 per cent in corporate bonds. The rest are in commercial papers and other short-term debt.

A good 86 per cent of the instruments held are AAA-rated. A number of corporate bonds are from PSUs such as REC and PFC, besides other NBFCs such as L&T Finance and Mahindra & Mahindra Financial Services. The fund is managed by Mr Anupam Joshi.

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

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more

Am you Required to E-file Tax Return?

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   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Health for Wealth - How to buy Health Insurance ?

Tax Saving Mutual Funds Online Current open Infra Bond Application form   HEALTH insurance is a relatively new phenomenon in India. Hence, it is not on the top of the mind for most people to make a conscious commitment towards health insurance. However, it is imperative for each one of us to plan for better health for our families and ourselves. There's no better way than to start with making health your top priority this year. So, your health insurance resolution charter would look something like: ■ Invest in health for wealth: Timely investment in health insurance can help build a security net and hedge sudden dilution of another financial asset class in the event of a health emergency, making it imperative to opt for a comprehensive health insurance plan. ■ Buy a comprehensive health cover that fu lfills your health needs for life: Buy a personal health insurance cover even if you have an employee cover because 'employer provided' health insuranc...
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