Skip to main content

IDFC Super Saver Income - Medium Term Review

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

IDFC Super Saver Income - Medium Term

IDFC Super Saver Income-Medium Term (SSI-MT) is a long-term income fund. Its current asset size of Rs 2240.34 crore assets under management (AUM) is higher than the category median of Rs 1457 crore. The fund was launched in June 2003 and is benchmarked against the Crisil Short Bond Index.

Peer Group. We have used a set of income funds (excluding dynamic bond funds and credit opportunity funds) with an average modified duration of more than 24 months in the last three years. There were 26 funds that fulfilled our criteria.

Objective. The scheme seeks to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities.

Returns.

Scheme Name

6 Months

1 Year

3 Years

5 Years

YTD

Since Inception

IDFC SSIF-MT-Reg(G)

4.73

9.74

8.62

9.41

1.36

7.39

Crisil Short Term Bond Fund Index

4.12

8.77

7.39

7.58

1.12

6.47

Category Average

5.58

10.39

8.33

8.08

1.90

All figures in % as on February 28, 2013; Returns above 1-year in CAGR terms

The fund has outperformed its benchmark but underperformed its category average over the six-month, one-year and three-year horizons. Its return since inception is also higher than that of its benchmark. Over the five-year horizon, the fund has beaten its benchmark and its category average.

2008

2009

2010

2011

2012

IDFC SSIF-MT-Reg(G)

15.20

5.98

6.66

9.16

9.95

Average

16.37

0.84

4.67

8.25

10.41

Crisil Short Term Bond Fund Index

9.39

6.62

4.61

7.85

9.10

All figures in %

In terms of calendar year returns the fund has done better than the category average in 2009, 2010 and 2011. It underperformed compared to the category average in 2008 and 2012, when there was marginal underperformance. In comparison to its benchmark it outperformed in 2008, 2010, 2011 and 2012 while it underperformed only 2008 and 2010.

Interest-Rate Risk. The current modified duration of the fund is 33.84 months or 2.82 years. The category median is 60 months or 5 years. Thus, the fund is less aggressive on duration compared to its category.

Credit Risk. The fund has a portfolio that has a relatively less credit risk compared to the category average. (Refer to the appendix below to see the top holdings of the fund)

Ratings

IDFC SSI - MT

Category Average

AAA

45.16

20.68

SOV

23.63

53.13

AA+

22.50

9.29

Cash & Equivalent

4.11

10.94

A1+

3.65

10.60

AA

0.95

4.82

AAA(SO)

1.16

As on Jan 31, 2013

YTM. The fund's yield to maturity (YTM) currently stands at 8.82 per cent. The category median is 8.33 per cent. The average YTM for the fund over the last 12 months has been 9.34 per cent and over the last 24 months this has been at 9.43 per cent.

Portfolio. Over the past one year 2012, the fund maintained a portfolio that was heavily dominated by corporate debt. The fund has also maintained a lower allocation to government securities than the category average.

Portfolio: Average holding over last 12 months as on January 31, 2013

Asset Type

IDFC SSI MT

Category

Cash & Cash Equivalents

3.22

11.46

Certificate of Deposit

9.92

21.44

Commercial Paper

3.79

6.81

Corporate Debt

63.49

45.66

Deposits

0.62

Floating Rate Instruments

6.94

Government Securities

17.56

34.45

PSU & PFI Bonds

11.68

6.39

PTC & Securitized Debt

1.74

Treasury Bills

2.59

Change in the portfolio: Over the last one year the fund's portfolio has reduced its corporate debt allocation. Allocation to government securities was 11.55 per cent in February 2012 and then this was reduced to nil by June 2012 and it was re-introduced to the portfolio by August at 23.80 per cent. The fund manager may have done so since interest rates are expected to soften in 2013, and for this the exposure to certificate of deposit was reduced.

Asset Type

Feb-2012

Jan-2013

Change in Asset Type

Government Securities

11.55

23.63

12.08

Corporate Debt

60.94

68.61

7.67

Commercial Paper

3.61

3.61

Cash & Cash Equivalents

3.85

4.11

0.26

PSU & PFI Bonds

6.45

-6.45

Certificate of Deposit

17.21

0.04

-17.17

Expense Ratio. The fund has an expense ratio of 1.38 per cent which is higher than the category median of 1.25 per cent. A high expense ratio is a negative for investors in a debt fund where returns are already much lower compared to equity funds.

Exit Load. The fund has an exit load of 0.60 per cent on or before nine months. This is less restrictive when compared to most of the other funds in this category which have an exit load applicable up to one year.

Fund Manager. Anupam Joshi is the Fund Manager for IDFC SSI Medium Term Plan since March 19, 2009. He also manages IDFC Money Manager Fund - Treasury Plan, IDFC Money Manager Fund - Investment Plan, IDFC Cash Fund and IDFC Ultra Short Term Fund. He has over 10 years of experience in Portfolio Management & Dealing. Prior to this, Anupam Joshi was working with Principal PNB Asset Management Company.

Conclusion. The fund has outperformed its benchmark in four of the last five calendar years and also it has a low exit load, making it easier for redeployment. Its performance could have been even better if the expense ratio was more in line with the category median, but considering that the fund has a better risk-return profile there is still a strong case for investors with 2-3 year horizon to invest with the fund.

Appendix

Instrument name

Type

Returns

08.15% GOI - 11-Jun-2022

SOV

16.76

08.19% GOI - 16-Jan-2020

SOV

6.87

Sterlite Industries (India) Ltd. 9.24% (20-Dec-22)

AA+

4.68

Sesa Goa Ltd. -365D (22-Nov-13)

A1+

3.61

Net Current Asset

Cash & Equivalent

3.60

LIC Housing Finance Company Ltd. 9.9% (8-Apr-15)

AAA

3.34

Power Finance Corporation Ltd. 9.63% (15-Dec-14)

AAA

2.95

Sterlite Industries (India) Ltd. 9.4% (27-Nov-22)

AA+

2.94

Sterlite Industries (India) Ltd. 9.4% (25-Oct-22)

AA+

2.94

Power Finance Corporation Ltd. 8.85% (15-Oct-14)

AAA

2.91

 

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.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

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
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