Skip to main content

Thematic funds – Sectorial Mutual Funds

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

 

AN INVESTOR, who is not stock market savvy or is a sceptic, usually plays the market through the mutual funds route as seen in the past many years. But, quite often, when the market is in a bullish mode, mutual fund houses try to ride the sectoral theme in order to catch the flavour of the season.

For instance, healthcare and FMCG shares were the darlings of the investors in 2011, while banking disappointed last year due to tightening of interest rate and concerns about deteriorating asset quality. Similarly, the infrastructure theme did well in 2006 and 2007, but has underperformed significantly in 2010 and 2011.


What are thematic funds?


Broadly, thematic funds operate on themes ranging from multi-sector, international/multi-economy and commodities, to name a few.

So, should one take exposure to these thematic funds at a time when volatility in the equity market continues to remain high and most of the underlying risks have not yet subsided?

In the past that thematic funds have done well when markets are on the up move. Thematic funds are a function of market cycle, function of risk and time horizon calculated by an investor. It is a high-risk, high-return investment and if an investor has an investment horizon of three-four years, these investments would fetch him decent returns.

For novice investors identifying the right theme could be a Herculean task. These investors should invest in mutual funds and ideally, they should stick to diversified equity mutual funds, said an analyst with a mutual fund house, who spoke on condition of anonymity.

Risk profile: Thematic funds by nature are more prone to risk and volatility. The performance of these funds is dependent on the performance of a particular set sector or a theme, unlike a diversified fund that moves in line with the broader markets, said the analyst.

In the past one year, Reliance Diversified Power Sector Fund gave a negative return of 11.59 per cent, while UTI Energy Fund was down 2.7 per cent. Similarly, Sundaram Entertainment Opportunities Fund Retail Growth has delivered a negative return of nearly 16 per cent and Sundaram Capex Opportunities has fallen 10 per cent in the past one year.

Some sector/themes that do well in one year may underperform in another year.
In this case, it is difficult for a retail investor to forecast which theme/sector will do well, on a consistent basis. In that case, investors are better off investing in a diversified equity fund, where they leave that call to an experienced fund manager who can, perhaps, take a better sectoral call, and over/underweight those sectors accordingly.

Options: On the other hand, returns from diversified funds and index-based funds eked out positive returns in the past one year. HDFC Mid-Cap Opportunities Fund registered positive return of 16.4 per cent, followed by Religare Mid & Small-Cap Fund (up 10.1 per cent), DSP BlackRock Top 100 Equity Fund (6.6 per cent), UTI Opportunities Fund (12.9 per cent) and HDFC Top 200 Growth Fund (3.2 per cent).

Investment in mutual funds should be more diversified, if an investor is looking at a one-year point of view. Even, if the market remains upbeat for a longer period in a year, an investor should not go for investing in a particular sector because during correction times, these theme-based funds fall in tandem with the market due to their exposure to a particular theme,.

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

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

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in 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]
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