Friday, April 14, 2017

Mr Consistent in the Volatile Environment

Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 3rd 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. 
NAV of this fund has moved from 45 levels to 80 levels within a time span of 3 years and has provided more than 36% returns. It outperformed despite of the volatility in the market and has performed better than its benchmark index. 

Canara Robeco Emerging Equities Fund: Daily Chart

Portfolio Analysis: As per the sectoral holdings Banking & Finance have been most favored sector for this fund as it is contributing 18.57% to the entire portfolio followed by Chemical and Engineering Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top Holdings:
% Assets
Minda Industries
CCL Products
Engineers India
Sector Allocation:
Banking & Finance

Returns as on 12th April, 2017
1 Year
3 Year
5 Year

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 medium term outlook is positive. Parking through SIP route is the best option as of now.

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

Friday, April 7, 2017

Top 5 reasons why one should invest in ELSS Funds this year

An individual has number of Tax-Saving option available for himself to claim his/her tax deduction. Out of this multiple option investment in ELSS Mutual fund proves to be the best alternative as it provides number of advantages along with good returns. ELSS (Equity Linked Saving Scheme) is ideal for those investors who wish to save tax. ELSS Fund is a kind of mutual fund scheme that invest majority of its corpus in Equity or Equity linked products.


Following are the 5 key reasons why one should prefer ELSS funds -
1)      Tax Benefit: Investment in ELSS fund are eligible for Tax Deduction under 80C section of income tax act 1961 this become one of the primary reason to invest in ELSS fund.

2)      Lock in period: ELSS funds as a lock in period for 3 years which is lower when compared t other tax saving investment option as PPF has a lock in of 15 years while Tax saving FD’s as a long for 5 years and NPS until 60years of age

3)      Benefit from equity exposure: ELSS allows to reap the benefits of stock market as majority of their corpus is invested in Equity and Equity leaked product.

4)      Investment through SIP: An investor can invest in ELSS fund with the help of SIP’s of as low as 500 Rs per month. Since there’s a lock in period of 3 years, if you start an SIP in Equity Linked Saving Schemes, the returns for your SIP amounts will be generated every month after 3 years of the first investment.

5)      No maturity date: ELSS funds don’t have a maturity date. This is a big advantage because you can continue investing in them even after the lock-in period has expired. Your investment in an ELSS fund can be continued with or without further contributions.

Birla Sun Life Tax Relief 96 – Growth Weekly Chart

Birla Sun Life Tax Relief 96 is an open ended Equity Linked Saving Scheme (ELSS) with 98.31% exposure to equity.

Portfolio Analysis: The fund aims to generate returns by investing in complete equity with maximum exposure to Banking/Finance and Automotive sector. 

Risk Profile: This fund is considered as “Risk Fund” due to complete exposure to equity instruments, therefore it’s suitable for investors who are looking for Tax benefits.

Taxation Perspective: Birla Sun Life Tax Relief 96 is ELSS fund is where investor is eligible for tax exemptions up to 150,000 INR under section (u/s) 80C of the Indian Income Tax Act, 1961 if they stay invested for three years or more. ELSS Funds are also eligible for Long Term Capital Gains which will be treated tax free as the holding will be more than one year. The Dividend earned from ELSS funds is also treated as tax free.

Investment Rationale: Birla Sun Life Tax Relief 96 fund has shown some outperformance despite of no clear trend in the Indian Equity Markets.  We can expect the same in this fund to continue for next few weeks and one leg is still pending on downside which should provide excellent buying opportunities for lump sum investors.

Invest NOW in Birla Sun Life Tax Relief 96 Fund online – Click here