Ask
any of the Financial Planner for a disciplined investment for long term wealth
building. Answer would be investment in SIP scheme. What it means is Systematic
Investment Plan (SIP) in a good Mutual fund for a long term plan is opted by
most of the professionals. And, not just for long term but also for short term
savings.
Systematic
Investment Plan is a scheme where investor can invest a fixed amount on monthly
bases. SIP also generates saving habits in investors. It allows buying of units
of a particular fund on the amount invested. It is more preferable for equity.
SIPs
are always beneficial to the investor as when the market is positive the
returns are good whereas when the market is down it make more profit. After
investing in this scheme, one can get a return of 12-15% annually.
The
benefits don’t stop here, if Mutual fund helps to diversify the investment in a
basket of securities, in addition SIP helps to diversify the time of investment
as well. This is one of the key element focused while investing. Many small
investors fail to adopt the advantage of investing in SIP. Destroying the whole
purpose of SIP scheme by stopping the SIP scheme during market slump. The investor
forgets the chance to buy more units at a lesser price.
In
short, SIP (systematic investment plan) is far better than your valuable funds
RIP (Rest in Pockets). Choice is yours.
ICICI
Prudential Value Discovery Fund: Daily Chart
ICICI Prudential Value
discovery fund is an open ended diversified equity fund, which aims at stock
which are available at a discount to their intrinsic value through a process of
‘discovery’ this process is called as Fundamental research. This process involves
indentifying companies that are well
managed, fundamentally strong and are available at bargained price.
Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most
favored sector for this fund as it is contributing 20.94% to the entire
portfolio followed by Engineering and Technology Sector. Top Holdings and
Sector Allocation for this fund are shown below.
Top Holdings:
|
Company
|
PE
|
% Assets
|
|
Larsen
&Tourbo
|
27.17
|
6.29
|
|
ICICI Bank
|
15.85
|
6.11
|
|
NTPC
|
12.75
|
5.69
|
|
Infosys
|
17.92
|
4.96
|
|
Sun Pharma
|
42.87
|
4.79
|
Sector Allocation:
|
Sector
|
%
|
|
Banking/Finance
|
20.94
|
|
Engineering
|
12.22
|
|
Technology
|
8.68
|
|
Pharmaceuticals
|
8.06
|
|
Automotive
|
7.84
|
Returns as on 01
August, 2016
|
Performance
|
Fund
|
|
1 Year
|
3.91
|
|
3 Year
|
36.15
|
|
5 Year
|
20.41
|
Risk
Profile: The risk is moderate in this fund as the investment is diversified
among various assets. Average returns can be expected from this fund as the
corrective phase of the market looks to be complete now we need to wait for
prices to confirm. Investors looking forward for good returns with moderate
risk should consider this fund for investments in staggered fashion or through
SIP route.
In a nutshell,
corrective action in this fund looks to be complete so investments in staggered
fashion is advisable and SIP should turn out to be the best way as it will
provide excellent cost averaging opportunities.
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