Top Mutual Fund Picks for 2017

Every individual wants to fly at the start of their career as it is the time when a lot of our financial habits start forming but not everyone knows that “Rome was not built in a day”.

It all depends upon the consistency and perseverance. Savings & Investments play the vital role in a human’s life, it doesn’t mean to put money in savings account or Fixed deposit which fails to even beat the inflation rate.

 

For parking money, one has to go through tough choices depending on their risk appetite. At times, you may question some of your financial decisions which is quite normal as everyone is not an expert in this industry.  

Also, an important thing to keep in mind is that one should not choose a particular day for investment depending upon tarot cards, astrology or even timing the market. Rather than that, the best time to invest is when you have the money and then give time to your money.

Despite of being in the 21^st century, we believe in Karma and hard work, but a little bit of advice and caution never hurt anyone. So make the most of your prime years by being financially responsible with your funds. 

As 2016 draws to a close, we believe we can help you get your finances in order and be more prepared for the New Year. To welcome the next year with more confidence, here’s a list of interesting funds which shall turn the upcoming year fruitful for us. 

Below is the list of funds which are the top picks for 2017 and the ball is in your court to make the best choices as per your risk bearing abilities and financial goals - 

The best  Equity Funds:

1)      Birla Sun Life MNC Fund

2)      ICICI Prudential Value Discovery Fund

3)      L&T India Value Fund

4)      Canara Robeco Emerging Equities Fund

The best Balance Funds:

1)      L&T India Prudence Fund

2)      ICICI Pru Balance Advantage Fun

The best Debt Funds:

1)      ICICI Corporate Bond Fund

2)      Birla Sun life Dynamic Bond Fund

The best ELSS Funds:

1)      Birla Sun Life Tax Relief 96 Fund

2)      Axis Long Term Equity Fund

Get the most out of it and make your Investments turn into Return Gaining Portals with our very own Experts and Innovative Research. Also get Monthly updates and advisory on your Investments FREE.


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Mutual Funds v/s Fixed Deposits

In India, Fixed Deposit is one of the most popular investment avenue when it comes to providing regular income along with less risk. 

Being a financial instrument provided by the bank, FD’s provides much better returns than a normal saving account however one forgets the taxes which are charged on the interest. 

Despite providing advantages such as low risk and regular income, the interest rate provided by the banks on FD is quiet less also tax is charged on interest which further reduces the returns provided by FD.  There are number of other investment avenues in the financial market which provides much better return than Fixed Deposits.

Mutual Funds is among such investment avenues. When compared with FD’s there are number of reason why one should prefer investing in mutual fund rather than investing in Fixed Deposits.

The below Info-Graph show an unbiased comparison between Mutual fund and Fixed Deposits which can help you to choose a better investment instrument –

Pic Courtesy – FINTRAKK.COM

The below illustration may provide you a better picture between which investment instrument is better –

Pic Courtesy – PersonalFN Research

To get more insights in this context, click HERE 

ETF v/s. Mutual Funds – The Battle of Heavy weights

In recent times ETF has gain a lot of attention as an investment avenue and is giving a good competition to Mutual Funds. Exchange Traded Funds have been one of the cost effective means of investment worldwide and the impact is slowly being seen in India. But not Mutual funds has been the main medium of investment for many investors due to which the question arises that should one invest in Mutual Funds or ETFs.

One can get the answer to this question by understanding similarities and difference between ETF and Mutual Fund -

Similarities Between ETF and Mutual fund:

• Diversification: ETF and Mutual funds provides benefit of diversification as both invest in different stocks, sectors, bonds, commodity etc. 
• Professionally Managed: Both ETF and Mutual funds are managed by professionals. However some ETF’s are passively managed.

Difference Between ETF and Mutual fund:

• Trading and pricing: ETF are traded much like stocks since they are listed on the stock exchange also the price of ETF’s keeps on fluctuating just like stocks. Whereas Mutual funds are priced once a day after market close. 
•  Professional management: There are two kinds of ETF one which is actively managed by the professionals and another which is passively managed. Passively managed ETF do not aims to beat the benchmark index. Contrary to this most of the Mutual funds in India are actively managed by the professionals.
• Expenses: ETF’s are less expensive than mutual funds this is because ETF do not have exit load and operating expenses are also less when compared to mutual fund. 
• Tax Efficient: When compared to Mutual fund, ETF are considered to be more tax efficient. This is because ETF are traded on the stock exchange and you buy and sell ETF’s and not the underlying securities.

One can decide their suitable investment avenue according to the investment objective. However investment in both Mutual fund and ETF will be a good option as both have the capability to provide better returns to their investors.

ETFs are a useful and different source of investment. If they are clubbed with Mutual Fund benefits, they can definitely create wonders in your portfolio.

Know more about it in detail and get your Investments started along with us with our very own Elliott Wave Research and Expert Advisory. 

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Mutual Fund - A Good Bargain

Value investing is an investment strategy where stocks are selected that trade for less than their intrinsic values. Value investors actively seek stocks they believe the market has undervalued.

It is a magic formula to  turn the losses into profits. The below infograph shows the whole picture of Value Investing and its features that benefits your Portfolio and shape it to a valuable portal of gaining profits. Have a look – 

 

Know more and get valuable strategies to invest in Mutual Funds –  Click HERE

Small-Mid Caps - The “sweet spot” for long term investors!

Lets discuss some Pros and Cons of Small and Mid Cap Funds – 

Pros:

1)  Happy medium: They are the biggest winning stocks of past decade and can balance the two extremes stability and growth potential.

2) Tomorrows Large-Cap:  One of the major reason to invest in small & mid cap companies is that they have potential to become a large cap companies. In 2005 Yes Bank was considered as a mid cap company but during a span of few years Yes Bank as turned out to become one of the biggest private sector bank in the world. 

Cons:

1)  High Volatility: The mid & small cap companies are highly volatile when compared to large cap stock. Due to its high volatile nature they can result into major fluctuations in shorter span which might be wounding.

2)  Uncertain Outcomes: The struggle associated with such firms is high because at initial stages maintaining stability is a task which not all can fulfill. However putting your money in them is like betting on a Dark Horse the more the risk the healthier the rewards. They are the best suitable to the risk seekers.

The best way to get rid of the risk associated with this fund is to generate a cushion for it by investing into the large caps or debt funds which will give balance to the fund and also diversify the investment.

Canara Robeco Emerging Equities Fund: Daily Chart

Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2^nd by CRISIL. It aims to generate long term capital appreciation through investing in diversifies mid-cap stocks which have higher probability to turn into bigger corporate in the coming future.

Portfolio Analysis: As per the sectoral holdings Banking & Finance have been most favored sector for this fund as it is contributing 13.33% to the entire portfolio followed by Engineering & Capital Goods and Chemicals Sector. Top Holdings and Sector Allocation for this fund are shown below - 

Risk Profile: The risk associated with this fund is too high because the total investment is focused on the stocks from small caps and midcaps sector. During the corrective phase or bad times this scripts do not have any lower limits to fall which can turn into capital loss. However every coin has 2 sides as these small size companies have potential to turn large which once happens can add bumper returns to your corpus. It is suitable to investors having high risk bearing ability within the age of 20-40 years.

Investment perspective: This fund has maximum exposure to equity and as per our outlook on Indian Equity markets more of corrective action is still left. Parking through sip route is the best option as of now.

Invest NOW in Canara Robeco Emerging Equities Fund online – Click HERE