Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now

Monday, June 27, 2016

Balanced Funds Online

Invest Balanced Funds Online


Equity-oriented balanced funds have outperformed large-cap funds across one, three, five & 10-year periods
 
Investors would have made more money in mutual fund schemes that invest in a mix of stocks and debt rather than products betting only on blue-chips in the last 10 years. Equity-oriented balanced funds, which invest 65% of their corpus in equities and the balance in debt instruments, have outperformed large-cap funds in periods of one, three, five and 10 years.

In the last three years, balanced funds have returned 15.65%, while large-cap schemes have fetched 13.13%. For the five-year period, returns from balanced funds were 9.75% against 6.7% from large-cap funds. The category has returned 9.7% in the last 10 years against 8.46% by large-cap funds.

Equity-oriented balanced funds maintain their equity allocation between 65% and 75%. So when the markets go up, the equity allocation increases and the fund man ager is forced to trim it. "These funds automatically sell highs and buys lows," says Pradeep Gokhale, senior fund manager, Tata Mutual Fund. Large-cap funds remain invested in equities only , and, hence, have underperformed.

Some believe the debt component has enabled these funds to outperform. The debt component consistently delivered 9-10%, while equities lagged behind, which helped their outperformance.

As a result, balanced funds fell less than large-cap schemes in the past year. Balanced funds have lost 3.82% in the past year, while largecap funds have lost 10.84%.

As per distributors, high volatility in equities is driving retail inves tors to balanced funds.

Data from AMFI show balanced funds have seen an inflow of `19,665 crore during the financial year compared to `8,335 crore in the previous financial year. The assets under management (AUM) of balanced funds have surged to `39,104 crore compared with `26,507 crore a year back.

Investors look at funds like L&T India Prudence Fund, SBI Magnum Balanced and Tata Balanced fund, for a time frame of three years and above.

With valuations high and earnings taking time to recover, wealth managers are recommending firsttime investors to invest through balanced funds.

The Nifty is trading at a PE of 20.73, while the Nifty Midcap 150 trades at a PE of 27.09. Balanced funds have a lower volatility than plain vanilla equity mutual funds because of their exposure to debt.

Tax benefits are another reason for increased flows into balanced funds. Post the new tax rules for debt funds, investors in the high tax bracket are putting money in this category as these funds are treated as equity funds from a tax perspective.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

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

Post a Comment
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now
Related Posts Plugin for WordPress, Blogger...

Popular Posts

Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now