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

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.
Read more

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
Read more

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
Read more

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
Read more

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]
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