Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit load Bank of India Mfg & Infra Gr 2010 5 528.69 cr 2.42 22.53 1.00% – 0-1 years ABSL Manufacturing Equity Reg Gr 2015 – 1255.43 cr 2.22 33.51 1.00% – 0-90 days ICICI Pru Manufacturing Fund 2018 – 7041.78 cr 1.80 23.34 1.00% – 0-1 years Kotak Manufacture in India Fund Reg Gr 2022 – 2617.97cr 1.96 19.75 1.00% – 0-1 years Quant Manufacturing Fund Reg Gr 2023 – 1090.88 cr 2.17 28.41 1.00% – 0-15 days 0.00% – >15 days Axis India Manufacturing Reg Gr 2023 – 6517.72 cr 1.76 20.50 1.00% – 0-12 months Baroda BNP Paribas Manufacturing Fund Reg Gr 2024 – 1533.19 cr 2.04% 20.06 1.00% – 0-1 years Canara Robeco Manufacturing Reg Gr 2024 – 1767.98 cr 2.03% 35.13 1.00% – 0-1 months 0.00% – >1 months HDFC Manufacturing fund Reg Gr 2024 – 13630.95 cr 1.67% 17.90 1.00% – 0-1 months 0.00% – >1 months Invesco India Manufacturing Fund Reg Gr 2024 – 800 cr 2.27% 42.97 0.50% – 0-3 months 0.00% – >3 months Mahindra Manulife Manufacturing Fund Reg Gr 2024 – 884.52 cr 2.21% 19.12 0.50% – 0-3 months 0.00% – >3 months Motilal Oswal Manufacturing Fund Reg Gr 2024 – 678.53 cr 2.37% 46.83 1.00% – 0-3 months 0.00% – >3 months Bank of India Mfg & Infra Gr: The earliest of the funds in India, launched in 2010, this fund falls into two themes: Manufacturing and infrastructure. The fund is 5 star rated by Crisil. The fund size is very small at 528.69 cr. High expense ratio of 2.42. PE of the fund is 22.53. The fund has exit load of 1% for investment upto 1 year. ABSL Manufacturing Equity Reg Gr : The fund was launched in the year 2015, was able to garner decent fund size of 1255.43 cr. The fund is 2.22 of expense ratio The PE is bit on the higher side 33.51. Exit load of 1% 0-90 days. ICICI Pru Manufacturing Fund : This fund was launched in the year 2018, has the second highest fund size in the category at 7041.78 cr. The Expense ratio is limited at 1.80. PE Aligned with the category at 23.34. Exit load is 1% for upto 1 year. Kotak Manufacture in India Fund Reg Gr: The fund was launched in the year 2022, It was able to garner decent fund size of 2617.97 cr. The Expense ratios of 1.96 and the PE of the fund is at 19.75 is quite great. The exit load is 1% for upto 1 year. Quant Manufacturing Fund Reg Gr : This fund was launched last year, 2023, fund size is 1090.88 cr. The fund has a high expense ratio of 2.17. High PE of 28.41. Exit laid for the fund is 1% for 15 days . Axis India Manufacturing Reg Gr : The fund was launched in the year 2023, the fund size is quite good of 6517.72 cr. The expense ratio is quite low at 1.76. The fund PE is 20.50 which again is decent. Exit load of the fund is 1 % for 12 months Baroda BNP Paribas Manufacturing Fund Reg Gr : The fund was launched in the year 2024, fund size of 1533.19 cr. The expense ratio is 2.04%. The PE is good at 20.06. The exit load of the fund is 1% for 1 year. Canara Robeco Manufacturing Reg Gr : The fund was launched in 2024, with a small fund size of 1767.98 cr. The expense ratio of 2.03. The fund has a very high PE of 35.13%. Exit load of the fund is 1% for 1 month. HDFC Manufacturing fund Reg Gr : The fund was launched in the year 2024, but it garnered the highest fund of 13630.95 cr. The expense ratio is 1.67% . The fund PE is decent at 17.90. Exit load of 1% before 1 month. Invesco India Manufacturing Fund Reg Gr : The fund was launched in 2024, with a small fund size of 800 cr. The expense ratio of the fund is 2.27%. The fund has a very high PE of 42.97%. Exit load of the fund is 0.5% before 3 months. Mahindra Manulife Manufacturing Fund Reg Gr : The fund was launched in 2024, Small fund size of 678.53 cr. The fund has a high expense ratio of 2.37%. PE is very high at 46.83. The fund has an exit load of 1% for 3 months. Trailing Returns : Scheme 1 month 3 months 6 months 1 year 3 years 5 years 7 years 10 years Bank of India Manufacturing and Infrastructure Fund (G) -0.04 -0.71 13.53 46.83 25.01 30.26 18.29 17.06 Aditya Birla SL Manufacturing Equity Fund Reg (G) -0.72 2.82 16.98 46.35 17.38 20.41 12.7 ICICI Pru Manufacturing Fund Reg (G) -1.71 -2.4 10.63 48.04 24.75 26.92 Kotak Manufacture in India Fund Reg (G) -1.11 -1.76 12.13 41.26 Quant Manufacturing Fund Reg (G) -2.22 -3.09 13.18 52.18 Axis India Manufacturing Fund Reg (G) -2.54 -0.79 15.35 Baroda BNP Paribas Manufacturing Fund Reg (G) -1.53 -0.53 Canara Robeco Manufacturing Fund Reg (G) -1.19 0.56 17.99 HDFC Manufacturing Fund Reg (G) -2.56 -1.78 Invesco India Manufacturing Fund Reg (G) 2.76 Mahindra Manulife Manufacturing Fund Reg (G) -2.05 -2.03 1 months Trailing 1st quartile : 3.75 to 6 : Motilal Oswal Manufacturing Fund Reg (G) 2rd quartile : 1.5 to 3.75 : Bank of India Manufacturing and Infrastructure Fund (G), Invesco India Manufacturing Fund Reg (G) 3rd quartile: – 0.75 to 1.5 : Aditya Birla SL Manufacturing Equity Fund Reg (G), 4th quartile : -3 to -0.75 : ICICI Pru Manufacturing Fund Reg (G), Kotak Manufacture in India Fund Reg (G), Quant Manufacturing Fund Reg (G), Axis India Manufacturing Fund Reg (G), Baroda BNP Paribas Manufacturing Fund Reg (G), Canara Robeco Manufacturing Fund Reg (G), HDFC Manufacturing Fund Reg (G), Mahindra Manulife Manufacturing Fund Reg
In today’s fast-paced world, financial planning has become a necessity, not a luxury. As a wealth manager, I often encounter individuals with diverse financial goals, ranging from buying a dream home to securing a comfortable retirement. People have a mix of various short, medium and long term financial goals  It involves setting clear financial goals, budgeting wisely, and investing strategically.While traditional investment avenues like fixed deposits and savings accounts offer stability, they may not always generate the desired returns, especially when adjusted for inflation ( how inflation effects read the blog : inflation the silent thief). This is where mutual funds step in as a powerful tool to help you achieve your financial aspirations.Let’s delve deeper into how mutual funds can be your trusted companion on this journey. Set SMART Goals: To ensure your financial aspirations are well-defined and achievable, consider the SMART framework: Specific: Clearly articulate your financial goals, providing detailed descriptions. Measurable: Quantify your goals using metrics like “how much” or “how many.” Achievable: Set goals that are realistic and attainable, aligning with your investment capacity and market realities. Relevant: Ensure your goals are pertinent to your overall financial objectives and the investments you’re making. Time-bound: Establish specific start and end dates for each goal to maintain focus and accountability. By adhering to the SMART principles, you can create a robust financial plan that empowers you to achieve your long-term objectives. Understanding Mutual Funds and how they are beneficial A mutual fund is a professionally managed investment pool that collects money from various investors and invests it in a diversified portfolio of stocks, bonds, REITs, Commodities or other securities. By pooling resources, mutual funds offer several advantages:  Diversification: Mutual funds spread your investments across various assets, reducing risk. Professional Management: Experienced fund managers handle your investments. As an individual you do not have to worry which is the best asset to buy. Liquidity: You can easily buy or sell mutual fund units. Very easy access Affordability: You can start investing with small amounts through Systematic Investment Plans (SIPs). Low Cost : Mutual funds are low cost instruments which are regulated by the SEBI. Asset allocation : Through Mutual fund you can invest into multiple asset class , thus help you to create and manage better asset allocation or diversification , you can invest in Domestic equity, debt both government , corporate , or long , medium and short term, Gold, silver , Real estate Tax Efficiency : Mutual funds are very tax efficient instruments, the returns are taxed only at redemption according to the underlying asset class.  Use Cases: How Mutual Funds Can Help You Retirement Planning: Goal: Accumulate a substantial corpus for a comfortable retirement. Strategy: Invest in equity-oriented mutual funds for long-term growth and debt funds to balance risk and provide steady income. Example: A 30-year-old with a monthly investment of Rs. 10,000 in an equity mutual fund with an average annual return of 12% could accumulate over Rs. 2 crore in 30 years. Child’s Education: Goal: Save for your child’s higher education expenses. Strategy: Invest in a mix of equity and debt funds to balance risk and return. Consider tax-saving options like ELSS funds. Example: A couple starting to save for their child’s education at birth with a monthly investment of Rs. 5,000 in an ELSS fund with an average annual return of 12% could accumulate over Rs. 50 lakh in 18 years. Home Purchase: Goal: Build a significant down payment for a home. Strategy: Invest in a combination of debt funds and balanced funds. Example: A young couple saving for a down payment with a monthly investment of Rs. 10,000 in a balanced fund with an average annual return of 8% could accumulate over Rs. 30 lakh in 5 years. Wealth Creation: Goal: Grow your wealth over the long term. Strategy: Invest in a diversified portfolio of equity and debt funds. Example: A 25-year-old with a monthly investment of Rs. 15,000 in a diversified equity fund with an average annual return of 15% could accumulate over Rs. 3 crore in 30 years. Conclusion : Risk Tolerance: Assess your risk appetite before choosing mutual fund schemes. Diversification: Spread your investments across different asset classes and fund categories. Regular Review: Monitor your portfolio and rebalance it periodically. Consult a Financial Advisor: Seek professional advice to tailor your investment strategy to your specific needs. How to choose best of the funds you can refer the blog : How to chose the best mutual fund By understanding your financial goals and selecting the right mutual fund schemes, you can embark on a journey towards financial security and prosperity. Remember, consistency is key, and time is your ally in achieving your aspirations.
Retirement planning is often overlooked, especially by younger individuals. It is a key area of financial planning under wealth management. Most people would start to think about this in their late 40’s or mid 50’s. And this is the time when people have a lot of Financial responsibilities . The children are reaching higher education, they are planning to buy a house, etc.  However, starting early can significantly benefit your future financial security. Here are seven compelling reasons to begin planning for your retirement as soon as possible: 1.The Power of Compound Interest Albert Einstein said, “Compound interest is the eighth wonder of the world, he who understands it, earns it, he who doesn’t, pays it. The Earlier, the Better: The earlier you invest, the more time your money has to grow. The Magic of Compounding: Your initial investment earns interest, and then that interest earns interest, creating a snowball effect. Long-Term Gains: Over decades, this compounding effect can turn modest investments into substantial wealth. Case Study : Mr Raj, he is early bird Age: 25 Time till Retirement : 35 Years Monthly Savings for Retirement: Rs. 5,000 By the age of 60, i.e. 35 years hence , he would have accumulated a corpus of ₹1,69,93,955 at ROI @10% Mr Anil Age: 45 Time till retirement : 15 years Monthly Saving for Retirement : Rs 15,000 By age of 60, i.e 15 years hence he would have accumulated a corpus ₹60,24,318.27 ROI @ 10% Key Takeaway : Though Mr Anil invested 3 times the amount of Mr Raj the early bird achieved a corpus of 2.5 times that of Mr. Anil. 2.Lower Monthly Contributions Spread the Load: Smaller, regular contributions over a longer period are less burdensome than larger lump sums later. Consistent Savings: Automate your savings to make it effortless and consistent. Case Study : If Mr Anil had to also achieve a corpus of lets say Rs ₹1,69,93,955 he would have to have to increase his SIP amount to ₹42,313 that 2.8 times at a time when his children would be going higher educations and all the responsibilities Key Takeaway : The earlier you start for the same amount you have to lower the amount , in this case Raj is investing just Rs 5,000 whereas Mr Anil has to invest about ₹42,313. 3.Reduced Investment Risk Time is Your Ally: A longer investment horizon allows you to ride out market fluctuations. Diversification: Spreading your investments across various asset classes reduces risk. Case study : Mr Anil is not able to increase his investment amount as he has other financial commitments , Home loans , car emis, Education of children. So he has asked if we increase the returns. TO keep the amount at the same he needs to increase his returns by 22%. But as he is 45 he does not want to risk much. He now needs his money to be stable rather than volatile. But Mr Raj at such a young age can bear the risk he can increase his retirement corpus. Key takeaway : As you grow old you cannot take risk in your portfolio, you would not want to risk your capital at any cost. A young person can take more risk , and have a more volatile portfolio. 4.Achieving Financial Independence Early Retirement: With sufficient savings, you may be able to retire earlier than planned. Flexibility: Early retirement can provide more freedom and opportunities to pursue passions. Case Study : Mr Anil is not to increase his investment amount nor his risk profile, so he has to work longer to achieve his financial goal or retirement. Whereas Mr Raj, he can increase his risk and even amounts of investment with time and reach his goal early. He can plan to retire at age of 50, and he can keep on investing the same amount at an ROI of 16%. And this can be achieved since he has age on his side. Key takeaways: Early starters can retire early , late starters have to increase the time and work for more time. 5.Social Security Benefits or Absence In India we do not have any social security benefits , a government or PSU officer may be invested through pension scheme or NPS, and private sector employees may be doing EPS / NPS, but the corpus formed may not be sufficient though these. A self-employed person would only get an option to PPF. and some other schemes which are not sufficient to hold your investment in the later stage of life. Case Study : Dr Sandeep is a well known physician at a well established hospital, for his retirement he needs a corpus of Rs 5,00,00,000/- after 15 years. He looks at various options and finds that he does not have many options to invest and grow money and even none of the security benefits would be able to fulfill his retirement plan. Key takeaway :  Start your retirement planning early in India. We do not have many special security benefits options to take care of you. 6. Increasing Average Life Expectancy The life expectancy for India in 2023 was 70.42 years, a 0.33% increase from 2022. The life expectancy for India in 2022 was 70.19 years, a 0.33% increase from 2021. The life expectancy for India in 2021 was 69.96 years, a 0.33% increase from 2020. The above shows that life expectancy is increasing. Start early as you would live more and you would require more money to get you in your golden years Plan how much would be required as after retirement you would not have sources of income. Key Takeaway : As life expectancy has increased for human beings , we need to be prepared for that increased life as you won’t have any other source of income to support you. 7. Avoiding Financial Stress Secure Future: A well-planned retirement can alleviate worries about financial security in your later years. Enjoyment of Life: Financial freedom allows you to enjoy retirement without
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load Quant Multi Asset Fund (G) 2001 _ 2983.94 cr 1.88 20.42 1% for redemption within 15 days ICICI Pru Multi Asset Fund (G) 2002 _ 50495.58 cr 1.48 19.11 For units in excess of 30% of the investment, 1% will be charged for redemption within 365 days UTI Multi Asset Allocation Fund Reg (G) 2008 _ 4059.6 cr 1.9 18.36 1% for redemption within 30 days HDFC Multi Asset Fund (G) 2005 _ 3701.65 cr 1.93 18.87 For units in excess of 15% of the investment, 1% will be charged for redemption within 365 days SBI Multi Asset Allocation Fund Reg (G) 2005 _ 6257.72 cr 1.48 22.83 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Axis Multi Asset Allocation Fund Reg (G) 2010 _ 1311.75 cr 2.11 22.34 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Nippon India Multi-Asset Allocation Fund Reg 2020 _ 4343.57 cr 1.52 19.52 For units in excess of 10% of the investment, 1% will be charged for redemption within 12 months Tata Multi Asset Opportunities Fund Reg (G) 2020 _ 3400 cr 1.87 19.16 For units in excess of 12% of the investment, 1% will be charged for redemption within 365 days Quant Multi Asset Fund (G) :  The fund was launched in the year 2001, currently has a portfolio size of 2,983.94 cr. The fund has PE of 20.42. The fund has an expense ratio of 1.88. Fund has a very low exit load of 1% within 15 days of investment. ICICI Pru Multi Asset Fund (G) : The fund is the largest by size in the category with fund size of 50,495.58 cr. The fund was launched in 2002. The fund has a low expense ratio of 1.48. PE of the fund is 19.11. UTI Multi Asset Allocation Fund Reg (G): This fund was launched in the year 2008, but still has a low fund size of 4,059.6 cr. The expense ratio of the fund is 1.9. PE of 18.36. Exit load of the fund is low at 1% within 30 days. HDFC Multi Asset Fund (G): The fund was launched in the year 2005. The fund again has a very small fund size of 3,701.65 cr. The fund has PE of 18.87. The expense ratio is 18.87. The exit load of the fund is 15% units are exit load free within 365 days , 1% for units above 15% units for 365 days. SBI Multi Asset Allocation Fund Reg (G) : This fund was launched in the year 2005. The fund size is 6,257.72 cr. The expense ratio of 1.48%. The PE of the fund is high at 22.83 as per the category. Exit load of the fund is units exceeding the 10% would be charged at 1% within 365 days of redemption. Axis Multi Asset Allocation Fund Reg (G): This fund was launched in the year 2010. A low fund size of 1,311.75 cr. HIgh expense ratio of the fund 2.11. The fund has a high PE of 22.34. Exit load of the fund is units exceeding the 10% would be charged at 1% within 365 days of redemption. Nippon India Multi-Asset Allocation Fund Reg : This was launched in 2020, and was able to garner a fund size of about 4,343.57 cr. The fund has an expense ratio of 1.52. The PE of the fund is stable at 19.52. Exit load of the fund is units exceeding the 10% would be charged at 1% within 365 days of redemption. Tata Multi Asset Opportunities Fund Reg (G) : Another multi asset fund to be launched in the year 2020, the current fund size is 3,400 cr. The expense ratio of the fund is 1.87. The PE of 19.16. Exit load of the fund is units exceeding the 12% would be charged at 1% within 365 days of redemption. Trailing Returns : Scheme 3 months 6 months 1 year 3 years 5 years 7 years 10 years 12 Years 15 years Quant Multi Asset Fund (G) 2.71 8.93 46.39 21.28 29.04 21.75 17.53 15.7 13.8 ICICI Pru Multi Asset Fund (G) 2.82 10.47 29.57 19.13 22.23 16.41 15.02 16.8 15.3 UTI Multi Asset Allocation Fund Reg (G) 4 12.34 38.6 18.11 16.96 12.28 10.5 10.22 10.24 HDFC Multi Asset Fund (G) 2.6 10.17 24.67 12.57 16.4 12.3 11.16 11.39 11.06 SBI Multi Asset Allocation Fund Reg (G) 1.79 9.68 25.17 14.16 15.2 12.22 11.51 11.7 10.91 Axis Multi Asset Allocation Fund Reg (G) 3.63 14.36 25.99 7.39 13.97 11.78 10.78 10.22 Nippon India Multi-Asset Allocation Fund Reg 2.79 13.14 34.17 15.54 Tata Multi Asset Opportunities Fund Reg (G) 1.29 10.06 25.75 13.55 – – – – – 1 year trailing 1st quartile : 39- 47%- Quant Multi Asset Fund 2rd quartile : 31-39% – UTI Multi Asset Allocation Fund Reg (G), Nippon India Multi-Asset Allocation Fund Reg, 3rth quartile : 23- 31% –ICICI Pru Multi Asset Fund (G), HDFC Multi Asset Fund (G), SBI Multi Asset Allocation Fund Reg (G), Axis Multi Asset Allocation Fund Reg (G), Tata Multi Asset Opportunities Fund Reg (G) 4th quartile : 15- 23% – Non of the funds in discussion was in the bottom 3 years trailing return 1st quartile : 18.25- 22% – Quant Multi Asset Fund , ICICI Pru Multi Asset Fund (G) 2rd quartile : 14.5 – 18.25% – UTI Multi Asset Allocation Fund Reg (G), Nippon India Multi-Asset Allocation Fund Reg 3rth quartile : 10.75 – 14.5% – HDFC Multi Asset Fund (G), SBI Multi Asset Allocation Fund Reg (G), Tata Multi Asset Opportunities Fund Reg (G) 4th quartile : 7- 10.75%, Axis Multi Asset Allocation Fund Reg (G) 5 years trailing returns 1st quartile : 24.5- 30% – Quant Multi Asset Fund 2rd quartile :
Inflation, the sneaky increase in prices over time, can quietly erode your hard-earned money. Let’s dive into a real-life example to see how it works. Scenario: Imagine you have ₹50 lakhs (5 million rupees) and decide to invest it in a fixed deposit (FD) with SBI Bank for 10 years. They offer you a rate of 6.50%, and you opt for a cumulative deposit (interest gets added to the principal). Without Inflation: After 10 years, SBI would pay you ₹95,27,793.77. That’s an effective return of 6.66% per year. Looks great, right? Inflation’s Impact: But here’s the catch: inflation has been steadily increasing. Using the Consumer Price Index (CPI) for FY 2023-24, we can calculate that the inflation rate was around 4.88%. Real Returns: When we factor in inflation, your effective return is reduced to 1.697%. This means that while you earned ₹95 lakhs in total, the purchasing power of that money is significantly less than it was 10 years ago. The Bottom Line: Inflation can silently steal a significant portion of your investment gains. In this example, inflation took away ₹36,11,476.97 of your potential earnings. To protect your wealth from inflation, consider investing in assets that can appreciate faster than the inflation rate, such as stocks, gold, mutual funds, real estate, or inflation-indexed bonds. Would you like to explore other investment strategies or learn more about inflation’s effects on the economy? Reach Us to help you protect your savings from inflation  : https://wa.me/message/LC5W5ZNTPSJ5L1
The stock market is inherently volatile, fluctuating between periods of growth and decline. While the adage “buy low, sell high” is commonly understood, it’s essential to consider the specific context of your investment goals and risk tolerance. Traders vs. Investors Traders and investors approach the market with distinct strategies. Traders often seek short-term profits through frequent buying and selling, taking on higher risks in the process. Investors, on the other hand, focus on long-term wealth creation and are generally more patient. Systematic Investment Plans (SIPs) Many investors opt for SIPs, a disciplined approach where a fixed amount is invested regularly. This strategy helps average out costs over time, reducing the impact of market fluctuations. Timing the Market: Is it Worth the Effort? While attempting to “time the market” by buying low and selling high might seem appealing, it’s often challenging and can lead to missed opportunities. Our analysis of two hypothetical investors, Mr. Lucky and Mr. Unlucky, demonstrates that even with perfect timing, the difference in returns over a long period is relatively minimal. First investor is Mr Lucky. Whatever day he choses in a month , the Sensex is the lowest day of the month. Second Investor, Mr Unlucky, Whatever day he chooses is the day the sensex is at its peak in that month. They both had agreed to invest Rs 50,000/- Every month Starting April 2014 till date , and we checked the fund value they were able to create. Mr Lucky , today value is Rs 14,092,799.41 , he grow his wealth at XIRR of 13.85% Mr Unlucky ,value stood at Rd 13,328,799.56, he grew his wealth at XIRR of 13.66% with a wealth difference of Rs 763,999.85/- or in percentage terms 0.19% over the 10 years period. The point to understand is that neither can we be Mr Lucky nor We can be Mr Unlucky, We would be somewhere between. Key Takeaways: Long-term Focus: For wealth creation, a long-term perspective is crucial. Consistent Investment: Regular investing through SIPs can be a disciplined approach. Avoid Overthinking: Excessive focus on market timing can be counterproductive. Conclusion While timing the market might provide occasional short-term gains, it’s not a reliable strategy for long-term wealth creation. Consistent investing, coupled with a well-thought-out investment plan, is often a more effective approach.
The allure of early retirement has captured the imagination of many, fueled by stories of financial independence and the freedom to pursue passions. However, the pursuit of quick returns and short-term gains often overshadows the importance of long-term financial planning. In this article, we’ll delve into the misconceptions surrounding early retirement and highlight the critical factors to consider for a secure and fulfilling financial future. The Changing Landscape of Retirement Gone are the days when people settled into their careers at a young age and worked until retirement. Today, the desire for early retirement has become increasingly prevalent, driven by factors such as increased life expectancy, technological advancements, and a desire for greater flexibility. However, this shift in mindset has also led to a focus on short-term gains and a neglect of long-term financial planning. These mind shifts have been furthered by Influence of Media and Social Media: The constant bombardment of investment news and success stories can create unrealistic expectations. People may believe that it’s easy to make quick money through investing, leading them to take unnecessary risks. Lack of Financial Knowledge: A lack of understanding about financial concepts, investment strategies, and risk management can lead to poor decision-making. People may be swayed by advertisements or tips from friends without conducting proper research. Overconfidence: Overconfidence in one’s ability to make sound investment decisions can lead to risky behavior. People may underestimate the potential for losses and believe they can consistently outperform the market. The Pitfalls of Short-Term Thinking While the pursuit of high returns can be tempting, it’s essential to consider the long-term implications. Chasing after quick profits without a solid financial plan can lead to several pitfalls: Increased Risk: The search for higher returns often involves taking on more risk, which can result in significant losses if the market turns sour. Lack of Diversification: A focus on short-term gains may lead to a lack of diversification, exposing investments to unnecessary risks. Emotional Decision-Making: The pursuit of quick profits can cloud judgment and lead to emotional decision-making, which can be detrimental to long-term financial success. The Importance of Long-Term Financial Planning To achieve a secure and fulfilling retirement, it’s crucial to adopt a long-term perspective. Here are some key factors to consider: Starting Early: The earlier you start saving for retirement, the more time your investments have to grow. Even small contributions can make a significant difference over the long term. Realistic Expectations: Set realistic expectations for your retirement income and lifestyle. Avoid making assumptions based on short-term market trends. Risk Tolerance: Assess your risk tolerance and align your investment strategy accordingly. A balanced approach that considers both growth and preservation of capital is often recommended. Diversification: Spread your investments across different asset classes to reduce risk and improve returns over time. Professional Advice: Consider seeking advice from a qualified financial advisor to help you create a personalized retirement plan. Case Study: The Impact of Early Retirement To illustrate the importance of long-term planning, let’s consider two individuals: Person A: Earlier a person used to settle around when he was 22- 23 years of age and work till his retirement at age 58. He had a total of 36 years to grow that wealth. He would eat from that corpus for the next 23 years. Lets understand this : Current age : 24 Retirement age : 58 Life expectancy : 80 Inflation: 6% Growth rate of corpus : 12% Current Monthly Expenditure : Rs 1,00,000/- Corpus Required : ₹109,857,502.92 Monthly Investment : ₹21,917.20 Person B: Starts earning at the age of 26-27. Now they want to retire early by the age of 50. So the growth period for this corpus is for 24 years,But life expectancy has increased to 85. He would eat into this corpus for 35 years. Lets understand this : Current age : 26 Retirement age : 50 Life expectancy : 85 Inflation: 6% Growth rate of corpus : 12% Current Monthly Expenditure : Rs 1,00,000/- Corpus Required : ₹74,292,841.37 Monthly Investment : ₹50,976.61 Despite similar incomes, Person A is likely to have a significantly larger retirement corpus due to the power of compound interest and a disciplined approach to saving. Also even though the requirement corpus required is high person A is able to achieve the same with low investment amount. Conclusion While the allure of early retirement may be strong, it’s essential to approach it with a long-term perspective. By understanding the pitfalls of short-term thinking and adopting a disciplined approach to financial planning, you can increase your chances of achieving a secure and fulfilling retirement. Remember, the journey to financial independence is a marathon, not a sprint. Reach us to help you planning for your retirement you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
Fund Name Year Of inception Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load HDFC Non-Cyclical Consumer Fund Gr 2024 764.46 Cr 2.37% 52.58 1% within 30 days Tata India Consumer Reg Gr 2015 2247.42 Cr 2.01% 50.11 0.25% for redemption within 30 days BARODA BNP PARIBAS India Consumption Fund Reg Gr 2018 1457.85 Cr 2.09% 38.13 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Mahindra Manulife Consumption Fund Reg Gr 2018 280.75 Cr 2.3% 26.75 1% for redemption within 3 months Nippon India Consumption Reg Gr 2004 1410.64 Cr 2.14% 46.49 1% for redemption within 30 days UTI India Consumer Reg Gr 2007 700.29 Cr 2.43% 31.32 1% for redemption within 30 days Mirae Asset Great Consumer Reg Gr 2011 4069.29 Cr 1.80% 26.03 1% for redemption within 365 days ICICI Pru Bharat Consumption Gr 2019 2613.48 Cr 2.08% 36.88 1% for redemption within 90 days SBI Consumption Opportunities Reg Gr 2013 2679.47 Cr 2.01% 46.97 0.1% for redemption within 30 days Canara Robeco Consumer Trends Fund Reg Gr 2009 1694.43 Cr 2.08% 22.62 1% for redemption within 365 days HDFC Non-Cyclical Consumer Fund Gr: HDFC Non-Cyclical consumer fund is a relatively new entrant that came out in 2024, the fund aims to invest only in sectors related to consumption which are not cyclical in nature. High PE of 52.58. The fund has a small portfolio size of 707cr. High expense ratio of 2.37% Tata India Consumer Reg Gr : Launched in 2015 the fund has been able to garner 2247 cr in total AUM.The PE is high as suggested by the category of 50.11. The expense ratio is about 2.01% which is good for the category. BARODA BNP PARIBAS India Consumption Fund Reg Gr The fund was launched in the year 2018, has AUM of about 1457 cr in total AUM. The PE is around 38.13 which is in the mid range of the category. Expense Ratio of 2.08%. Mahindra Manulife Consumption Fund Reg Gr Launched in 2018, the fund has a very small size 280 cr, smallest in the category. The fund’s PE is excellent and needs to be looked at further at 26.75. The expense ratio is of 2.3% Nippon India Consumption Reg Gr Nippon India Consumption fund is one of the oldest funds in the category, launched in 2004. With AUM of 1410.64 Cr. Expense ratio of 2.14%. PE of the fund is at 46.49. UTI India Consumer Reg Gr The fund was launched in 2007, has a small AUM of 700 cr. The PE of fund is 31.32 and high expense ratio of 2.43% Mirae Asset Great Consumer Reg Gr The fund was launched in the year 2011. The AUM of the fund is 4069 cr , which is highest in the category. The fund has a great PE of 26.03. Which is lowest in the category and needs to be understood further. ICICI Pru Bharat Consumption Gr The fund was launched in the year 2019, has AUM size of 2613.48 cr, which is a decent size fund. Expense Ratio 2.08%. The fund PE is 36.88. SBI Consumption Opportunities Reg Gr The fund was launched in 2013. AUM has size 2679.47 Cr, a decent fund size. The fund PE 46.97 Canara Robeco Consumer Trends Fund Reg Gr The fund was launched in 2009. AUM of the fund 1694.43 Cr. The fund has a very low PE of 22.62 lowest in the category. Trailing Returns : 1 year trailing Quartile 1 : > 44% , HDFC Non- Cyclical consumer trends fund and Mahindra Manulife Consumption fund have starred in this category with returns above 44%. Quartile 2 : 43% -44%- Baroda BNP paribas India Consumption fund , Nippon India Consumption Fund, TATA India Consumer Fund have been the next category. Quartile 3 : 42%- 43% – Mirae Asset Great Consumer fund, UTI consumer fund make it 3rd quartile Quartile 4 : 40%-42% : Canara Robeco Consumer Trends Fund, ICICI Pru Bharat Consumption fund and SBI consumption fund are in 4th quartile. The funds have performed so close in the last 1 years it seemed futile to put any one in any quartile. But still we have put them in quartiles. 3 years trailing return Quartile 1: >28% : Only SBI India Consumption fund could make the list Quartile 2: 24-28% : ICICI Pru Bharat Consumption fund, Nippon India Consumption fund made it 2nd quartile. Quartile 3: 22-24% :Mirae Asset Great Consumer fund, Mahindra Manulife consumption fund, TATA India Consumer fund delivered in 22% range. Quartile 4: 18-22% : Baroda BNP paribas India Consumption fund, Canara Robeco Consumer Trends Fund and UTI consumer fund were in 3rd quartile , but UTI consumer fund was very low in the returns at 18% HDFC Non- Cyclical consumer did not exist 3 years before. 5 years trailing returns Quartile 1 : >26%, Nippon India Consumption fund, SBI India Consumption fund made in top in 5 years period Quartile 2: 24-26 : Canara Robeco Consumer Trends Fund, Mirae Asset Great Consumer fund Quartile 3: 22-24% : Baroda BNP paribas India Consumption fund, ICICI Pru Bharat Consumption fund, TATA India Consumer Fund Quartile 4: 20- 22%: Mahindra Manulife Consumption fund, UTI consumer fund were the lowest HDFC Non- Cyclical consumer did not exist 5 years before. 7 years trailing returns Quartile 1 : > 19%, Nippon India Consumption fund Quartile 2: 18-19%, Canara Robeco Consumer Trends Fund, Mirae Asset Great Consumer fund, SBI India Consumption fund Quartile 3: 17-18%, TATA India Consumer Fund Quartile 4: < 17% , UTI Consumer fund was at 14.42 HDFC Non- Cyclical consumer , ICICI Pru Bharat Consumption fund, Mahindra Manulife Consumption fund and Baroda BNP paribas India Consumption fund were not launched 10 years ago. 10 years trailing returns Quartile 1 : >18% Canara Robeco Consumer Trends Fund,SBI India Consumption fund Quartile 2: 17-18%, Mirae Asset Great Consumer fund Quartile 3: 16-18%, Nippon India Consumption fund Quartile 4: <16% ,UTI Consumer
Gold, a precious metal with a lustrous yellow hue, has captivated humanity for millennia. It has lasted over civilization from Ancient Egyptian to the Aztec Civilization. Its allure extends beyond its aesthetic appeal, making it a coveted asset for both personal adornment and financial investment. As a tangible asset, gold has proven to be a reliable store of value, weathering economic storms and geopolitical upheavals throughout history. Indians particularly had an inclination towards gold. Of the available instruments for investment the two instruments which had always got the most attention had been Real estate Gold Here in this research we are going to talk about the benefit of gold investing in the current scenario. Historically Looking Gold since 1981 has delivered 9.03% the growth is represented by the chart given below. Another measure to check the growth of any investment instrument is to look at the rolling returns of the we consider 10 years rolling returns and 15 years rolling returns. Once, we combine above 3 charts for gold returns over the years here are few observations Gold as a safe asset class is established with only 1 year period in 10 years rolling returns, where it was negative. T The 15 year rolling returns year it was never negative The gold had sub par returns till 2007 -2008, where it was in range of 3-8%, below its average long term returns. It was only after the global financial crisis that gold as an asset class was established world over. Establishing Gold As hedge It was during this time that gold became an edge against the downturn and more discussion from a perspective of diversification , asset allocation started. Factors which affect the Gold prices Before moving the discussion any further lets us understand the factors that move the gold. And try to see what is the current situation and how the gold can react to that. Central bank Reserves Gold is the most important reserve that the central bank keeps to strengthen its currency. Rupee, the Indian Currency is backed by Gold, (https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=3158#:~:text=All%20banknotes%20issued%20by%20RBI,33%20of%20RBI%20Act%2C%201934). So, more gold helps countries to have a currency which is strong as compared to other currencies for trade in the world. In recent years, we have seen more gold by 3 countries: Russia , China , India and Turkey, Which has led to an increase in the prices of Gold and what situation we are in currently . The current Situation : The gold buying by the central banks have started because of the Russia – Ukraine war. Since then the central banks have been trying to diversify their foreign reserves through Gold. Central banks are also trying to unlink currencies from US denominated trades and that can be only done through gold These situations have added to central banks buying more gold in the markets and this situation is not going to improve. US dollar : The price of the US dollar and gold are inversely related. Current Situation : The rate of Interest would lead to fall would lead to weakening of dollar , as dollar weakens the gold prices would appreciate. Increase Demand for Gold The gold is metal which has industrial uses as well as the household. India has been a buyer of physical gold for Jewelry purposes , during the festive seasons, weddings. Women Buyers have affinity for the yellow metal. Current Situations: The coming months we are heading to festivals and wedding seasons. This would lead to high gold buying and this pressure on the demand side. Rate of interests Gold as an asset class does not bear any interest, it was because most financial experts , include Mr. Warren buffet had advised against investing in gold. How does gold prices affect the rate of interest? If interest rates rise, people are interested to invest in an investment which would give higher returns like, FD , Debt instrument rises thus causing people to invest in interest bearing instruments. Whereas vice versa happens when interest rates move down. Current Situations :  Since last week, US Fed chairman Jerome Powel had stated in his statement that it was time to cut the rates. This would be followed by a world over central banks rate cut. Which forms the basis that as the rate of interest would decrease instruments which are non interest bearing would lose attractiveness. Hedge Against Inflation : Inflationary pressures have reached unprecedented levels in recent decades, prompting investors to seek strategies to preserve their wealth. Savings accounts, despite offering marginally higher interest rates than in previous years, often fall short of mitigating the erosion of purchasing power caused by inflation. This disparity between interest earned and rising prices results in negative real returns. Gold, historically recognized as a reliable inflation hedge, has emerged as a compelling investment option. By offering a counterbalance to the devaluation of currency, gold helps safeguard investors’ assets from the adverse effects of inflation, ensuring that their purchasing power remains relatively intact. Gold, a tangible asset with intrinsic value, has historically served as a reliable store of wealth. While the purchasing power of fiat currencies can diminish during periods of inflation, gold maintains its value, making it a sought-after investment for those seeking to protect their assets from the eroding effects of rising prices. Current Scenario : We are definitely in a high interest rates scenario , the world over inflation was never an issue in the developed world, which is an issue they are not able to deal with. Safe haven Economic Downturn This asset class serves as safe haven in case of economic downturn , It was observed that during the years of downturn Gold have performed exceptionally , the performance of gold during the years FY 2009, FY 2012 , FY 2016 and FY 2020 . The performance of Gold has been better than the volatile asset class like equity . What Do Experts Say ? According to Thedailygold.com, Gold in FY 26 might trade in the range of $5000
Gold has been a popular investment choice for centuries, offering potential diversification, inflation protection, and a safe haven during economic uncertainty. There are several ways to invest in gold, each with its own advantages and disadvantages. Asset Allocation: Gold as has been discussed was discussed as an asset class only after the 2008 recession, when for the first time it made sense in allocation. Any person investing in Gold should understand few things The maximum allocation of gold should be 10-15% Gold is to be used as a hedge not as a primary tool for wealth creation, that would always be equity. Gold bought for jewellery purposes is not considered as investment. How to invest in Gold ? Physical Gold : A person can buy coins, bars etc. Storage : You have to store the physical gold in a safe locker or place at home. Risk : Risk of theft and burglary. Cost : Cost of actual buying and additional cost if you are storing it in a safe place. Liquidity : High can be sold to the jeweller anytime. Sovereign Gold bonds: are government securities denominated in gold. They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds offer a unique opportunity to invest in gold without the physical risks associated with holding gold bullion with maturity of 7 years and cab be reddemed after 5 years. Get interest payment every year of 2.5% . Storage : No storage required . can be in demat or any other form Risk : No risk as backed by the government of India. Taxation : They were tax free on maturity. Liquidity : Bit low since it was not you cannot sell it to government but can trade online. But since last tranche in the month of february the government has not issued any bonds and it seem they won’t issue any more bonds in future( this is still not known) Gold ETF : is a gold exchange-traded fund (ETF) that tracks the price of domestic physical gold in India. It offers a convenient and efficient way to invest in gold without the need to purchase and store physical gold. Storage : The ETF is stored in dematerialised format so you do not have to worry on the storage of physical gold.You need a demat account Risk : Risk of burglary is zero. Cost : You have to bear the management expenses and brokerage fees. Also since it was bought on stock exchange so you have to look at the price you are buying. Liquidity : Highly liquid can be sold on stock exchange. Gold funds : Gold funds are mutual funds that invest primarily in gold or gold-related securities. Offer investors a convenient and diversified way to participate in the gold market without the need to purchase and store physical gold. Storage : The gold fund units are allocated to the person buying them , Demat account is not necessary . Risk : Risk of burglary is zero. Cost : The fund manager expenses are borne by the customer. Liquidity: Highly liquid as can be sold back to MF company. Taxation : Another important discussion is on the taxation . With the new tax regime in place the taxation has improved , and it makes a stronger case for you to invest in this asset class. Instrument Holding period Units acquired Prior to April 01,2023 Units acquired on of after April 01, 2023 Short- term Capital Gains Tax Long Term Capital Gain Tax Short-Term Capital Gains Tax Long- Term Capital Gains Tax Units Redeemed between July 23, 2024 and March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* Income’s Income Tax Slab rate* Gold FOF 24 Months Units redeemed after March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* 12.5%* Gold FOF 24 Months Source: India Budget. *Surcharge and Health & Education Cess as applicable. In view of the individual nature of the tax consequences, each investor is advised to consult his/ her own professional tax advisor. Top Fund list : How have the fund performed so far. 1 Year 3 Year 5 Year 10 Year Axis Gold Fund (G) 16.74 14.84 12.04 11.09 SBI Gold Fund Reg (G) 16.54 14.7 11.82 11.14 HDFC Gold Fund (G) 18.09 15.03 12.03 11.17 UTI Gold E T F FoF Reg (G) 16.41 0 0 0 Kotak Gold Fund (G) 16.14 14.16 11.45 11.04 we have considered SIP returns for this fund and looked at the top performing fund. We over the last few year the GOLD has given returns in comparison to the equity investment. Conclusion : To check weather, the gold investing make any sense to your diversification you can look at the asset allocation. Contact us to know what is that you need rather than just falling prey to wrong plans. You can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)