Skip to main content

PineBridge India Short Term Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Investors with limited risk appetite and looking for opportunities in the debt product spectrum can consider investing in PineBridge India Short Term Fund. This fund has adeptly shuffled its portfolio to deliver 9.9 per cent in the last one year, higher than benchmark Crisil Short-Term Bond index' return of 8.8 per cent.


Its three-year return of 8.6 per cent annually is also superior to the benchmark's return of 7.4 per cent and category average of 8.1 per cent. While this is a short-term fund, that it has maintained a superior record for a longer period of three years, is an indication of well-timed moves, both in rising and falling interest rate scenarios.

Suitability


PineBridge India Short Term fund is suitable for investors with a time frame of 15-18 months and willing to take higher risks than liquid or ultra short-term funds. Consider investing lump sum in the fund now, if you have a goal at least 1.5 years away.


Among other short-term funds, a few such as Templeton India Short Term Income Plan and JP Morgan Short Term Income have delivered superior returns in the past and may do so again given their higher portfolio maturity.


But such higher average portfolio maturity and elevated exposure to bonds/debentures entails assuming higher risks.


While the said funds also remain investment worthy, our choice of PineBridge India Short Term Fund stems from the fund's high exposure to less risky and more liquid certificates of deposits (CDs) from banks. That CDs may see a rally over the next month or two (read on to know how), enhances the fund's chances of delivering well.

Added to this, PineBridge India Short Term is perhaps one of the few short-term funds that do not have an exit load. Simply put, you can exit any time, like you would with a liquid fund. That said, it would nevertheless be safer to stick to the time period mentioned by us, to reduce any impact of volatility and also enhance your returns.
Like all other debt funds, the fund would be taxed at your income tax slab for short-term capital gains of less than a year and at 10 per cent without indexation (20 per cent with indexation) for holdings of over a year.

Opportunity in the short end
Typically, when interest rates peak, most debt market institutional investors prefer to take exposure to long-end gilt funds, which will gain from a price rally, when rates fall. But we believe this may be a good time to play the short-end of the curve for the following reason: RBI data suggests that the liquidity pressure in the banking system remains; both Central and state government borrowing in the month of February only adds to the pressure.


Liquidity requirement is also set to be higher in the Month of March on account of advance tax payment by companies. Banks too, have been drawing down their liquidity as deposit growth has been lower than credit growth thus far this fiscal.


All this is likely to add to the pressure on short-term liquidity. That means run-up in the yield of short-term instruments such as CDs. More importantly, Indian banking system has been traditionally short of liquidity in the run up to March and the condition slowly eases post April. Such a trend is obvious when one looks at the bank CD rates from January – April of every year in the past few years. The rates typically start rising post January and ease post April. Tightening rates are already visible now with 12-month CD rates rising to 9.35 per cent (mid-February) from 8.8 per cent a month ago.


The data suggests that CD rates ease around April, thus providing some capital gains as rate declines trigger a price rally. Rate cuts, if any, in April, can also be expected to accentuate such a decline. But what if liquidity remains stiff and rates hold? Even then, the less than one-year bank CD holdings of PineBridge India Short Term are likely to ensure good accrual income (interest income from the CDs) if the fund simply holds them to maturity.

Portfolio and performance


The fund held 66 per cent of its assets in bank CDs as of January, higher than top short-term funds from the Templeton and JP Morgan stable. Its average portfolio maturity (including bonds and commercial paper) was 1.62 years, as against the 2-plus years for a good number of peers. A lower portfolio maturity not only reduces risk but helps participate in gains arising from liquidity easing.


The fund holds only P1+ and AAA-rated instruments – these ratings being the top in each category.


PineBridge India Short Term Fund beat its benchmark 94 per of the times on a rolling one-year return basis for the past three years. The fund was launched in March 2008 and is managed by Mr Vikrant Mehta.

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