What does Term insurance not mean or what it is not ? Cash Value: Unlike whole life or universal life insurance, term insurance doesn’t build cash value over time. This means you can’t borrow against the policy or receive a cash payout if you surrender it before the end of the term. Maturity Benefit: If you outlive the term of your insurance policy, you won’t receive a lump sum payment at the end. Term insurance is designed to provide coverage for a specific period, and there’s no payout if you don’t need it. Investment Returns: Term insurance isn’t an investment vehicle. While it provides protection, it doesn’t offer any potential for growth or returns. Guaranteed Premiums: While some term insurance policies offer level premiums, others may increase over time. This means your premiums could go up as you get older, even if you maintain good health. Real Life Scenario : What happens in real life scenario is people are mis selling or they themselves think since the money they have paid is not being return its not a good financial planning instrument. So two most common plans are sold in the market. Endowment plans Are a type of life insurance policy that combines life insurance coverage with an investment component. This means that in addition to providing a death benefit to your beneficiaries if you die during the policy term, endowment plans also offer a maturity benefit if you outlive the policy term and provides guaranteed returns ULIP ( Unit-Linked Insurance plans) is a type of life insurance plan that combines life insurance coverage with an investment component. They provide an opportunity to participate in the market or bonds. Unlike traditional endowment plans, ULIPs offer more flexibility and potential for higher returns. But the question is why mis-selling happens? Higher Commission: Your agent/ Bank gets a higher payout for selling. Guaranteed returns : It’s easier for agents to sell something with a guaranteed word , so they don’t have to spend a lot of time explaining Pressure : Banks sell these plans through their employees , they have a lot of pressure to sell. Is it that bad at all lets see this from the case of Endowment plans from real life scenarios Case Study : Customer who was looking to buy insurance cover was approached by bank to with the following two proposition instead of term plan The customer was pitched by his regular bankers to invest in this plan Called HDFC Sanchay plus ( this is not just limited to HDFC, it is all ICICI, LIC, Max etc. whatever policy you buy it would be the same.) His banker was really persistent on him to buy this plan that he used to call him daily , putting all tactics for him to purchase . After so many pressure calls he had almost given in when i got in discussion with him and showed him the reality. So let’s study the plan. HDFC Sanchay Plus Current age : 30 Years Policy term : 20 Years Premium payment term : 10 years Premium amount 1st year : Rs 5,22,500/- Premium 2 nd year onwards : Rs 5,11,250/- SI :Rs 64,37,500/- to Rs 1,27,58,919/- Policy Year Single/ Annualized Premium Guaranteed Non Guaranteed Survival Benefits / Loyalty Additions Other benefits (if any) Maturity Benefit Death Benefit Min Guaranteed Surrender Value Special Surrender Value 1 522500 0 0 0 64,37,500 0 0 2 511250 0 0 0 64,37,500 3,09,000 3,09,000 3 511250 0 0 0 64,37,500 5,40,750 5,40,750 4 511250 0 0 0 64,37,500 10,30,000 10,30,000 5 511250 0 0 0 64,37,500 12,87,500 6,83,148 6 511250 0 0 0 64,37,500 15,45,000 8,95,482 7 511250 0 0 0 64,37,500 18,02,500 11,41,343 8 511250 0 0 0 69,23,763 32,35,879 15,59,667 9 511250 0 0 0 74,10,026 37,68,008 20,82,332 10 511250 0 0 0 78,96,289 50,72,637 27,28,108 11 0 0 0 0 83,82,552 57,33,516 31,99,868 12 0 0 0 0 88,68,815 58,79,395 37,36,072 13 0 0 0 0 93,55,078 60,25,273 43,42,778 14 0 0 0 0 98,41,341 61,71,152 50,30,514 15 0 0 0 0 1,03,27,604 63,17,031 58,08,267 16 0 0 0 0 1,08,13,867 64,62,910 66,87,510 17 0 0 0 0 1,13,00,130 66,08,789 76,78,686 18 0 0 0 0 1,17,86,393 67,54,668 87,95,972 19 0 0 0 0 1,22,72,656 69,00,547 1,00,54,714 20 -11729523 0 0 11729523 1,27,58,919 70,46,426 1,14,71,419 Returns 5.78% The policy seemed so attractive that he would make Rs 1,17,29,523/- in 20 Years. but he forgot he had invested almost Rs 50,00,000/ and got just double the invested. A simple IRR calculation shows he would earn 5.78% IRR on this investment. Lower than your FD returns. We could argue that it was meant for protection but let’s see how much would he have paid if we just took SI of Rs 1,30,00,000/- from day one for 20 years , which in this case is applicable in 20 years. The same company offers us Term insurance plan for SI – Rs 1,30,00,000/- Payment Term : 10 Years Policy term 20 : 20 years. Premium : Rs 23,464/- And now the funny part if we take this Policy Year Single/ Annualized Premium Guaranteed Non Guaranteed Survival Benefits / Loyalty Additions Other benefits (if any) Maturity Benefit Death Benefit Min Guaranteed Surrender Value Special Surrender Value 1 499036 0 0 0 64,37,500 0 0 2 487786 0 0 0 64,37,500 3,09,000 3,09,000 3 487786 0 0 0 64,37,500 5,40,750 5,40,750 4 487786 0 0 0 64,37,500 10,30,000 10,30,000 5 487786 0 0 0 64,37,500 12,87,500 6,83,148 6 487786 0 0 0 64,37,500 15,45,000 8,95,482 7 487786 0 0 0 64,37,500 18,02,500 11,41,343 8 487786 0 0 0 69,23,763 32,35,879 15,59,667 9 487786 0 0 0 74,10,026 37,68,008 20,82,332 10 487786 0 0 0 78,96,289 50,72,637 27,28,108 11 0 0 0 0 83,82,552 57,33,516 31,99,868 12 0 0 0 0 88,68,815 58,79,395 37,36,072 13 0 0 0 0 93,55,078 60,25,273 43,42,778 14 0 0 0 0 98,41,341 61,71,152 50,30,514 15 0 0 0 0 1,03,27,604 63,17,031 58,08,267 16 0
Understand the Concept in simplest way  A term insurance/ Life Insurance is a type of insurance which provides for financial cover during a set period chosen by the life insured. Why do we need term insurance ? Term insurance is a crucial financial tool that offers a safety net for you and your loved ones. Here are some key reasons why you might need it: Protection for Dependents: If you have dependents, such as children or a spouse, term insurance can provide financial support in the event of your untimely death. The death benefit can help cover expenses like mortgage payments, education costs, and living expenses. Debt Coverage: If you have significant debt, such as a mortgage or student loans, term insurance can help your family repay those debts. This can prevent financial strain and ensure a more comfortable future. Financial Planning: Term insurance can be a valuable component of your overall financial plan. It can help you protect your assets and ensure that your loved ones are financially secure, regardless of unforeseen circumstances. Affordability: Term insurance is generally more affordable than other types of life insurance, making it a good option for those on a budget. Flexibility: Term insurance offers flexibility in terms of coverage and duration. You can choose a policy that meets your specific needs and adjust it as your circumstances change. What does Term insurance not mean or what it is not ? Cash Value: Unlike whole life or universal life insurance, term insurance doesn’t build cash value over time. This means you can’t borrow against the policy or receive a cash payout if you surrender it before the end of the term. Maturity Benefit: If you outlive the term of your insurance policy, you won’t receive a lump sum payment at the end. Term insurance is designed to provide coverage for a specific period, and there’s no payout if you don’t need it. Investment Returns: Term insurance isn’t an investment vehicle. While it provides protection, it doesn’t offer any potential for growth or returns. Guaranteed Premiums: While some term insurance policies offer level premiums, others may increase over time. This means your premiums could go up as you get older, even if you maintain good health. How to Know Your Sum Insured ? By annual income method: Determine your annual income: This includes your salary, bonuses, and any other sources of income. Choose a multiplier: The multiplier is a number that determines the amount of coverage you need. Common multipliers range from 5 to 10 times your annual income. A higher multiplier provides more coverage, but also increases the premium. Calculate the sum insured: Multiply your annual income by the chosen multiplier. Human Life Value (HLV) method is another popular approach to calculating the sum insured in term insurance. This method focuses on the financial value that an individual brings to their family through their income. How HLV works: Estimate your remaining working years: Determine the number of years you expect to work before retirement. Calculate your average annual income: Estimate your average annual income over your remaining working years, considering potential salary increases and promotions. Factor in inflation: Adjust your average annual income for inflation to account for the rising cost of living over time. Determine the discount rate: This is the rate at which future income is discounted to its present value. It’s typically based on the rate of return you could achieve on your investments. Calculate the present value of your future income: Multiply your adjusted average annual income by the present value factor, which is calculated using the discount rate and the number of remaining working years. Conclusion : To consult for the best plans and understand the requirement of Term plan needs you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
Fund Details : Fund Name Year Of Inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios ICICI Pru blue chip fund 2008 5 54,904.23 1.49 19.18 Axis blue chip fund 2010 1 33,351.61 1.56 20.88 ICICI Pru blue chip fund : ICICI Pru blue chip fund is one of the large funds of the category , 5 star rated fund. The has expense ratio in line with the category and Low PE of 19.18. Axis blue chip fund : Fund made entry in 2010, is currently rated as 1 star. The fund has a very decent size , as it was also favoured by a lot of people. Low expense ratio of 1.56 . The fund PE 20.88 is very decent. Trailing Returns : 1 Year Trailing return ICICI large cap is beating the axis large by big margin 3 Year Trailing Return ICICI Pru large cap has a whooping margin lead on Axis blue chip fund . Axis blue chip gave a return of 10% but ICICI blue chip was 20% almost double. And this has been the rally years. 5 years trailing returns ICICI Pru large cap again has been 7% higher in 5 years trailing returns. 10 Years Trailing returns ICICI blue chip gave a returns of 15.37% Axis Blue chip gave return of 13.58 % Since the difference in terms of percentage is just 1.78 , we check the value of investment after 10 years of investment if we had invested Rs1,00,000/- ICICI blue chip gave a returns of Rs 4,17,762/- Axis Blue chip gave return of Rs 3,57,288/- Difference of Rs 60,474 approx 60% of the invested value. 13 Years Trailing returns ICICI blue chip gave a returns of 15.8% Axis Blue chip gave return of 14.38% Since the difference in terms of percentage is just 1.42% , we check the value of investment after 10 years of investment if we had invested Rs1,00,000/- ICICI blue chip gave a returns of Rs 6,73,304/- Axis Blue chip gave return of Rs 5,73,523/- Difference of Rs 99,781 approx 99.7% of the invested value. Rolling returns : We have considered rolling returns of 3 years since 2012 , as a large cap Any fund with 12% should be good enough. The recent run up has added to a little push in returns so 15 % is what we see in the first category of stability returns. >15% Rolling returns ICICI Pru BlueChip cap fund was able to deliver results in this category for 49.83% of times as compared to Axis Blue Chip fund 38.56 % of times. >12% Rolling returns ICICI Pru Bluechip fund was 71.77% times delivered results in 12% above whereas as Axis blue chip was able to deliver 65.62% <than 8% ICICI Pru Blue chip was 10.3% times less than 8% and even negative zone in period of 3 years rolling returns. The Axis Bluechip fund was 3.83% of time in this zone. VS benchmark : Fund Name 1-Yr Ret (%) Beat the benchmark 3-Yrs Ret (%) Beat the benchmark 5-Yrs Ret (%) Beat the benchmark 10-Yrs Ret (%) Beat the benchmark ICICI Pru blue chip fund 36.97 Yes 20.47 Yes 23.13 Yes 15.37 Yes Axis blue chip fund 28.24 No 10.74 No 14.99 No 13.48 No NIFTY 100 TRI 30.49 – 16.39 – 18.99 14.22 Axis blue has not been able to beat the index in trailing returns.  Ratios: Fund Name Alpha 3 yr Alpha 5 yr Beta 3 yr Beta 5 yr Std deviation Sharpe Ratio Sortino Ratio ICICI Pru blue chip fund 4.26 1.97 0.87 0.94 11.54 1.27 2.8 Axis blue chip fund -5.01 -1.15 0.97 0.82 13.25 0.49 1.04 ICICI Pru blue chip fund : The fund has generated a decent Alpha, and risk adjust sharpe ratio as per category is decent. The fund has a beta of 0.87 which it has improved to 0.94 and std deviation of 11.54 , which shows the fund is very stable. Fund has a great downside protection ratio of 2.8. Axis blue chip fund : Fund is negative alpha for both 3 yr and 5 yr . Low risk adjusted returns. High volatility , high market correlation at beta 0.97 for 3 years and 0.82 at 5 years and std deviation at 12.82 . Sortino ratio is low. Fund managers Longevity : ICICI Pru blue chip fund : The fund is being managed by 3 fund managers ,Anish Twakely deputy CIO of the ICICI Pru amc and has been managing the fund for about 6 years now. Other managers are 3 and 2 years old in the fund. Axis Blue chip fund : The Axis Blue chip fund is being managed by 3 fund managers. Mr Shreyash Devalkar, the head of equity for Axis MF has been managing the fund for last 8 years. Along with the two fund managers. Portfolio :  Fund Name Strategy Top Sectors Top Stock No of Stocks Portfolio Churn Caps Allocation ICICI Pru blue chip fund Growth Financial : 25.79 Energy : 12.59 Automobile : 12.02 Industrial : 11.17 ICICI Bank Ltd. : 7.85% Reliance Industries Ltd. : 6.96% Larsen & Toubro Ltd. : 5.12% HDFC Bank Ltd. : 5.12 64 27% Large Cap : 89.29% Mid Cap: 0.87% Small Cap : 0% Cash :9.73% Axis blue chip fund Growth & Quality Financial services- 30.58 Automobiles and components – 13.97 Technology – 10.50 Consumer defensive – 10.15 HDFC Bank Limited 8.71% ICICI bank ltd. 7.73% Reliance Industries Limited 6.31% Avenue Supermarts Limited 4.97% 55 39% Large Cap: 95.59 % Mid Cap: 0.0% Small cap: 0% Others : 4.41% As in line with the index the financial makes the highest contribution to the funds and HDFC makes a major chunk of that allocation. The allocation to consumer defensive and avenue supermart is leading, The portfolio from ICICI Pru makes much more sense and seems they are placing bets very according to the cycles as of now. HDFC highest allocation may
The Union Budget 2024 ushered in significant changes to the taxation of capital gains in India. These modifications have far-reaching implications for investors across various asset classes. Let’s delve into the key alterations: Harmonisation of Long-Term Capital Gains (LTCG) Tax Rate Uniform rate:The most prominent change is the introduction of a uniform LTCG tax rate of 12.5% for all asset classes, including property, gold, and equity. Previously, these assets had different tax rates No indexation benefit:The government has eliminated the indexation benefit, a provision that allowed taxpayers to adjust the purchase price of an asset for inflation. This means higher taxable gains. What were the major the major announcements Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate. Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year. Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates. ( Refer : https://www.indiabudget.gov.in/) Impact on Different Asset Classes Property: While the LTCG tax rate has reduced from 20% to 12.5%, the removal of indexation might offset this benefit, especially for older properties. Gold: Similar to property, the lower tax rate is counterbalanced by the absence of indexation. Equity: While the LTCG tax rate has increased from 10% to 12.5%, the exemption limit has been raised from Rs. 1 lakh to Rs. 1.25 lakh. Short-Term Capital Gains (STCG) Tax Higher rate: The STCG tax rate on equity-related investments has been increased from 15% to 20%. Asset Class Holding Period STCG LTCG Shares/ Equity (Listed) 12 months 20% 12.5% Equity MF 12 Months 20% 12.5% Bonds ( Listed ) 12 Months 20% 12.5% REITs/ InVITs 12 Months 20% 12.5% Silver/ Gold ETF 12 Months Slab 12.5% Gold Funds 24 Months Slab 12.5% Stock( Unlisted ) 24 Months Slab 12.5% Foreign Shares 24 Months Slab 12.5% Overseas Equity Fund 24 Months Slab 12.5% Gold 24 Months Slab 12.5% Real Estate 24 Months Slab 12.5% Debt MF/ MLD NA Slab Slab Debt ETF NA Slab Slab Bonds ( Unlisted) NA Slab Slab Key Takeaways Simplification: The new regime aims to simplify the tax structure for capital gains. Higher tax burden: For many investors, especially those with older assets, the overall tax burden might increase due to the removal of indexation. Strategic planning: Investors need to carefully evaluate the impact of these changes on their portfolios and investment strategies. Conclusion The changes in capital gains tax introduced in Budget 2024 mark a significant departure from the existing tax regime. While the intent might be to simplify the tax structure, the practical implications for investors are complex. It is crucial to consult with a tax professional to understand the full ramifications of these changes on your personal financial situation. You can reach us to help you design the bets fund portfolio , so that you get best results according to your need and assessment.( you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1) Do set you asset allocation and understand which fund would suit you the best 
Large-cap funds are a type of mutual fund that invests in stocks of companies with the largest market capitalizations. These companies are typically well-established and have a long history of profitability. Large-cap funds are generally considered to be less risky than other types of equity funds, such as mid-cap and small-cap funds. This is because large-cap companies are more likely to be able to weather economic downturns. However, they also tend to offer lower potential returns than other types of equity funds. Here are some of the benefits of investing in large-cap funds: Lower risk: Large-cap stocks are generally less volatile than stocks of smaller companies. This means that the value of your investment is less likely to fluctuate significantly over time. Steady returns: Large-cap companies have a long history of paying dividends to shareholders. This can provide you with a steady stream of income from your investment. Diversification: Large-cap funds typically invest in a variety of different companies across different sectors of the economy. This can help to reduce the risk of your investment being affected by a downturn in any one sector. This category faces the biggest competition with the index funds with index fund companies always promoting their funds as if they do not carry risk, which is not the true case, the index has the same amount of risk as these funds. Fund Name Year Of Inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios ICICI Pru blue chip fund 2008 5 54,904.23 1.49 17.01 Nippon India large cap fund 2007 5 26,137.65 1.61 18.40 JM large cap fund 1995 5 144.17 2.41 15.36 HDFC top 100 fund 1996 4 33,170.08 1.62 14.53 Aditya birla Frontline equity 2002 3 27,192.15 1.66 17.70 Canara Robeco Bluechip Equity fund 2010 3 12,830.12 1.69 17.66 Kotak Blue chip fund 1998 3 8,027.99 1.76 20.44 SBI blue chip Fund 2013 2 45,410.51 1.53 24.12 Axis blue chip fund 2010 1 33,351.61 1.56 17.92 Mirae asset large cap fund 2008 1 37,631.07 1.53 19.98 Bank of india Bluechip cap fund 2021 – 144.86 2.46 18.65 Quant Large cap fund 2022 – 997.48 2.17 20.53 ICICI Pru blue chip fund : ICICI Pru blue chip fund is one of the large funds of the category , 5 star rated fund. The has expense ratio in line with the category and Low PE of 17. Nippon India large cap fund : The fund is a 5 star rated fund. The fund size is not that large. The fund expense ratio is a bit on the higher side because of the small size. Decent PE of 18. JM large cap fund : It is one of the oldest funds in the category with 5 star rating. The fund size is very small, just 144 cr. Since the size is small the expense ratio is 2.41 and PE very low at 15.36. HDFC top 100 fund : It’s another oldest fund of the category , and is rated 4 star. The fund has a decent fund size. The Expense ratio is in line with the category. The fund has the lowest PE in the category. Aditya birla Frontline equity : Once a darling of all the investment advisors , the fund now is rated 3. Fund size is decent and not too large. Expense ratio in line with category. PE of 17.70 is also decent. Canara Robeco Bluechip Equity fund: The fund was launched in 2010, so fairly new in the category is now rated 3 star. Fund size is not big. Expense ratio is a bit high . PE of 17.66 Is decent. Kotak Blue chip fund: Is another old fund, currently rated as 3. Not a big size fund. The expense ratio is a bit high at 1.76. The PE is also high of 20.44. SBI blue chip Fund : This is the second largest fund of the category as the name and distribution muscle of SBI can be seen. The fund is just 2 star rated. Size of above 45,000 cr. Very low expense ratio in the category. The PE of 24.2 seems in line with the index and a bit of concern. Axis blue chip fund : Fund made entry in 2010, is currently rated as 1 star. The fund has a very decent size , as it was also favoured by a lot of people. Low expense ratio of 1.56 . The fund PE 17.92 is very decent. Mirae asset large cap fund : Made its debut in 2008, the fund is rated as 1. The fund has a very decent size in the category and was also favoured by lot advisors. Fund has a low expense ratio. PE 19.98 is a bit high. Bank of India Bluechip cap fund : A very new entrant to the category in 2021 , launched during covid times, so the fund is still not rated. Very small size of just 144 cr. Of Course the expense ratio is very high. The PE is at 18.65 is decent. Quant Large cap fund : Launched in 2022, it’s the latest one in the category. Not rated yet. Small fund size of about 997.48. Expense ratio is high of 2.17. High PE of 20.53 Trailing Returns : 1 Year Trailing return First quartile,> 46% as always is taken by none other than Quant Large Cap fund 2nd quartile, 44-46% we have BOI Bluechip fund and JM Large Cap fund. 3rd quartile , 35-40%, ICICI Pru Bluechip fund and Nippon India Large cap fund 4th quartile, 30-35%, HDFC Top 100 fund, Kotak Bluechip fund, Aditya Birla SL Frontline Equity, Canara Robeco Bluechip Equity Fund. 5th quartile 25-30%, Axis bluechip fund , SBI blue Chip fund 6th quartile 20-24%, Mirae asset Large cap fund 3 Year Trailing Return 1st Quartile, >24% Nippon Large cap fund took lead in the last 3 years 2nd quartile 20% -24% , The lead was taken by JM large cap fund, ICICI Pru Bluechip
Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80 per cent of its assets in equity and equity-related instruments. ELSS can be open-ended or close ended. Tax Deduction under Section 80C: This is the main tax benefit of ELSS. Up to ₹1.5 lakh of your investment in ELSS can be deducted from your taxable income under Section 80C of the Income Tax Act. Think of it as reducing your taxable income by the amount you invest in ELSS. This translates to a lower tax bill. Lock-in Period: There’s a catch – you can’t withdraw your ELSS investment for at least 3 years. This is called the lock-in period. It’s important to consider your investment horizon (how long you plan to invest) before choosing ELSS. It’s best suited for long-term financial goals. Potential for Higher Returns: ELSS invests in the stock market, which carries risk but also has the potential for higher returns compared to other tax-saving options like PPF or FDs. Fund Name Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Turn over HDFC ELSS tax saver fund 5 14,474.85 1.73 19.86 22% SBI long term equity 5 23,411.67 1.62 20.09 15% Quant ELSS tax saver fund 4 9,360.89 1.76 17.73 130% Bank of India Tax saver fund 4 1,297.72 2.11 17.73 73% Motilal Oswal ELSS tax saver fund 4 3,402.11 1.85 35.02 74% Franklin India ELSS tax saver fund 4 6,383.38 1.81 21.59 20% Kotak ELSS tax saver fund 3 5,608.21 1.77 19.21 13% DSP ELSS tax saver fund 3 14,859.56 1.66 16.59 35% Mirae Asset ELSS tax saver fund 2 22,471.76 1.57 21.18 84% Canara Robeco ELSS Tax Saver Fund 2 7,760.97 1.76 23.08 24% Axis ELSS Tax saver fund 1 35,641.94 1.53 34.07 17% Trailing Returns : 1 Year Returns : Quant ELSS tax saver , Bank of India ELSS, SBI long term Equity fund and Motilal oswal ELSS tax saver had been the front runner in one year above 50% . HDFC ELSS tax saver, Franklin India Tax saver, Kotak ELSS tax saver and DSP ELSS tax saver were the next category to have returns in the range of 40%. Canara Robeco ELSS tax saver, Mirae Asset ELSS tax saver fund , Axis ELSS tax saver were the last range of 30% 3 Years Returns : SBI long term Equity Fund , Quant ELSS tax saver, HDFC ELSS tax saver returns were in range 26-27%. Next close were Motilal oswal ELSS tax saver and Bank of India ELSS fund which came close to 23-24% range Franklin India Tax saver fund , DSP ELSS tax saver fund and Kotak ELSS tax saver fund were returns 20-21% Mirae Asset ELSS tax saver fund, Canara Robeco ELSS tax saver fund gave return in 16% Axis ELSS tax saver fund were the last in the category 10% 5 Years Returns Quant ELSS tax saver was leader in 5 years return with 31.53% followed by not to close but at 25% Bank of India ELSS fund. SBI Long term equity and Motilal Oswal ELSS tax saver were in next category to give returns 20% DSP ELSS tax saver fund, Kotak ELSS tax saver fund and Mirae Asset ELSS tax saver fund gave 19% returns. Canara Robeco ELSS tax saver, HDFC ELSS tax saver, Franklin India Tax saver fund gave returns of 18% Axis ELSS tax saver fund gave return of 13.75% 10 Years Returns Quant ELSS tax saver in 10 years returns had the given the 24.79% Bank of India ElSS fund was next in the category 18.34% DSP ELSS tax saver and Kotak ELSS tax saver gave return of 17% SBI Long term equity fund ,Franklin India Tax Saver fund, Canara Robeco ELSS tax saver and Axis ELSS Tax saver fund around 15-16 % HDFC ELSS tax saver fund was around 14.09 Motilal Oswal ELSS tax saver , Mirae Asset ELSS tax saver fund did not have that much history. Rolling returns : We have considered rolling returns of 5 years as ELSS has a lock-in of 3 years . As an ELSS we generally consider returns above 15% to be a good return delivered by the fund, So any fund which have been able to generate rolling return for 5 years period of 15% and above, for maximum times should be considered a stable fund   We see Quant ELSS Tax saver fund and Mirae Asset ELSS tax saver are in the first quartile, also the Negative side has been limited for both of these funds. Bank of India ELSS , Canara Robeco ELSS tax saver , DSP ELSS tax saver and Kotak ELSS managed to be above 50% of times in the above quartile. They also managed to be not negative in this period. Franklin India ELSS Tax saver ,Axis ELSS tax saver fund could keep this returns for almost close to 50% of times. Franklin did Deliver negative return but Axis managed to avoid the negative. SBI Long term equity, Motilal Oswal ELSS tax , HDFC ELSS fund saver fund have not been consistent in the category of 15% above. HDFC ELSS and SBI long term equity funds had delivered negative returns. The negative return percentage might be ignored since it was very low.So in this category we need to see which funds are maintaining the highest number in 0-12% . Motilal Oswal ELSS tax fund , HDFC ELSS Tax Saver fund, SBI Long term fund and Franklin India ELSS Tax Saver for close to 50%of times delivered returns in range of 0-12% . Which shows they have not been very consistent in return. Axis ELSS tax saver was for at least 30% of time in this range. Bank of India Tax saver fund , Kotak ELSS Tax saver fund , DSP ELSS tax saver were close to 25 % times in this range . Canara Robeco ELSS tax saver was almost 20% of the time in this range. Quant ELSS tax saver and Mirae Asset
In the aftermath of the COVID-19 pandemic’s economic disruptions, the Indian market has embarked on a remarkable recovery journey. This article delves into the nature of this resurgence, explores investor behavior, and examines the investment channels currently favored by Indian participants. A Post-Pandemic Bull Run The Indian market has witnessed a sustained uptrend since the second quarter of FY2022, marking a clear departure from the initial pandemic-induced downturn. This bull run, lasting for at least three years, signifies a robust recovery and renewed investor confidence. Investor Behavior: Responding to the Uptrend The market’s positive trajectory has influenced investor behavior. We’ve observed a surge in investor activity, with individuals actively seeking investment opportunities to capitalize on the growth potential. This shift reflects a growing risk appetite and a willingness to participate in the market’s upswing. Market Performance: Year Opening Closing %antage  2023-24 58,991.52 73,651.35 24.85 2022-23 58,568.51 58,991.52 0.72 2021-22 49,509.15 58,568.51 18.30 2021-22: This year marked a strong rebound for the Indian stock market after the initial shock of the COVID-19 pandemic. It delivered a return of 18.30%, indicating a significant bull run. 2022-23: The market performance in this year was more subdued compared to the previous year. It witnessed a flat return of around 0.7%, suggesting a period of consolidation or slight correction. 2023-24: The market regained momentum in this year, delivering a robust return of 24.85%. This signifies a continuation of the bull run that began in 2021-22. FY 2021-22 The year after covid, FY 2021-22 the following the gains were delivered by the market Index Opening Closing Return % Sensex 49,509.15 58,568.51 18.30 Nifty 50 14,690.70 17,102.55 16.42 Nifty Bank 33,303.90 36,373.60 9.22 Nifty Midcap 100 23,693.15 29,692.30 25.32 Nifty Small cap 100 8,113.15 10,436.25 28.63 Broader Market Performance It’s important to consider how the broader market performed beyond just the headline index. While you mentioned a point-to-point return, including specific details (e.g., percentage increase) would offer a more complete picture. Did all segments outperform the previous year, or were there any variations? Did smaller or mid-cap stocks outperform large-cap stocks, indicating broader market participation? Government Stimulus and Inflation Injections of money into the economy by governments worldwide likely played a significant role in the stock market’s initial rebound after the pandemic. However, such a stimulus can also contribute to inflation if not carefully managed. The observation about inflation not being felt in 2020-21 but rising in 2021-22 aligns with this notion. The effects of stimulus programs often take time to manifest, and the rising US inflation by year-end 2021 (at 8.5%) suggests a potential consequence of the earlier measures. The article above states how the US Fed reserve helped to create cash and help the country from going into recession (https://www.brookings.edu/articles/fed-response-to-covid19/). Which was invariably linked to high inflation in the countries. But there were many reasons why the inflation increased in the economy , As discussed the world over we are discussing a few reasons which caused the inflation All-in money printing totaled $13 trillion: $5.2 for COVID + $4.5 for quantitative easing + $3 for infrastructure. The money supply normally grows about 7% per year but quantitative easing (QE) of more than $4 trillion has increased money supply by 14% per year over the past decade. The $5 trillion in COVID relief increases the money supply by 27% and does so very quickly – the floodgates are open. Quantitative Easing did not bring inflation as measured by the Consumer Price Index (CPI), so that experiment has been declared a success, but the reality is that QE did inflate stock and bond prices, so there was inflation but not in the usual metric. By contrast, much of the COVID relief money will go directly into the hands of the consumer, so CPI will increase. Supply Side bans imposed on China by the US on manufacturing of Semiconductor , led to rising commodity prices, while at the same time caused a serious disruption of the world’s supply chain. There were the shipping snarls and bottleneck in global supply chain industry caused by Covid-19, worker shortages , the labor market tightened during 2021 and 2022, core inflation rose as the ratio of job vacancies to unemployment increased, The spikes in energy and food prices caused by the invasion of Ukraine Russia The multiple reasons stated above lead to inflation. Inflation started increasing after the first quarter of the financial year in the world. First of all it was thought to be transient in nature due to shipping bottlenecks which were created , towards the latter part of the year the other issues also caught up. Towards the end of this year the inflation has reached its highest levels and even the major conflict dented the sentiments which caused markets to close at level lower in the last few months. FII Equity inflow But we see that during the year the FII were net sellers throughout the year, and toward the end of the year the maximum outflow happened. The selling pressure further intensified as the oil prices increased towards the year end as war signals intensified. So even with the high selling from FII, the DII continued buying throughout. And the market was supported by the heavy DII and retail buying. So the question that we need to answer in context of Indian market for the year 2021-22 Why did FII were net sellers in the Indian Market ? One reason was tapering in the US market – It was only in the November 2021 meeting that the Fed took a decision and began reducing the monthly pace of its Treasury purchases by $10 billion and its MBS purchases by $5 billion in November and December. The Fed doubled the pace of tapering at its December 2021 meeting, and Fed Chair Jerome Powell confirmed in January 2022 that the plan is to end asset purchases in early March 2022. The Fed has made clear that tapering will precede any increase in its target for short-term interest
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load ITI Mid Cap Fund Reg (G) 2021 5 1,085.02 2.13% 25.50 1% for redemption within 1 year Motilal Oswal Midcap Fund Reg 2014 5 14,445.55 1.66% 57.08 1% for redemption within 1 year HDFC Mid Cap Opportunities Fund 2007 4 75,382.3 1.39% 23.55 1% for redemption within 1 year Nippon India Growth Fund 1995 4 32,970.78 1.59% 30.36 1% for redemption within 30 days Edelweiss Mid Cap Fund 2007 4 6994.17 1.75 33.31 1% for redemption within 90 days SBI Magnum MidCap Fund Reg (G) 2005 3 21,127.45 1.66 40.57 1% for redemption within 1 year HSBC Midcap Fund Reg (G) 2004 3 11,882.09 1.72 37.31 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Quant MidCap Fund 2008 3 9,282.92 1.73% 31.19 0.5% for redemption within 90 days Kotak Emerging Equity (G) 2007 3 50,601.84 1.42 30.57 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Axis Mid cap fund(G) 2011 2 30,854.63 1.57 35.59 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days PGIM India Mid Cap Opp Fund Reg (G) 2013 1 11,216.06 1.7% 41.54 0.5% for redemption within 90 days ITI Mid Cap Fund Reg: The fund is currently 5 star rated , and has a very high expense ratio of 2.13% with low portfolio size 1,085 cr. The fund is a very recent entry in th category in 2021. Current PE of the fund is 25.50. MotilalOswal Mid cap fund: Crisil has rated this 2014 launched fund as 5 star. The fund has a decent size of 14,445 cr with an expense ratio of 1.66%. It has the highest PE among the funds considered. HDFC Mid Cap Opportunities Fund : The fund was launched in 2007, Currently rated as 4 star by CRISIL. This is the biggest fund in the category at 75,382 cr. The lowest expense ratio of 1.39%. The fund has PE 23.55 inline with the category. Nippon India Growth Fund : This is one of the oldest funds in the category 1995. Currently rated by CRISIL as 4 star. The fund is 3rd highest fund size in the category with 32,970 cr. The expense ratio is decent with 1.59%. PE is bit high with 30.36 Edelweiss Mid Cap Fund : The fund was launched in 2007. CRISIL has rated it as a 4 star fund. FUnd size small at 6994.17cr. So the expense ratio is high at 1.75%. The fund PE is 33.31 a bit high. SBI Magnum MidCap Fund: The fund was launched in 2005, Currently CRISIL rated 3. A decent fund size of about 21,127 cr. With expense ratio of 1.66. Fund PE of 40.57 is a bit high. HSBC Midcap Fund : The fund was launched in 2004, CRISIL rated as 3. Portfolio size of 11,882.09 cr with expense a bit high of 1.72%. PE is high on 37.31. Quant MidCap Fund: The fund was launched in 2008, it was run by escorts mutual fund under the name of escort opportunities fund. It was changed to quant AMC took over the business of escorts , in 2018. The fund size is small 9,282 cr. With a high expense ratio of 1.73%. Currently CRISIL is rated as 3 star. The fund has a bit high PE of 31.19 Kotak Emerging Equity : The fund was launched in 2007. Currency CRISIL rated as 3 star. The fund is Second largest fund size of Rs 50,601,84 cr. Low expense Ratio 1.42. Current PE of 30.57. Axis Mid cap fund Fund: The fund was launched in the year 2011. Currently CRISIL is rated as 2. This is the 4th largest fund size in the category with a size of 30,854.63. The Fund has a high PE of 35.59. PGIM Mid cap fund Fund: The fund was launched in the year 2013, CRISIL rated as 1, The fund size is low at 11,216 cr. High expense ratio 1.7%. High PE of 41.54 Trailing Returns : Scheme 1 month 3 months 6 months 1 year 3 years 5 years 7 years 10 years 15 years 20 years Axis Midcap Fund (G) 7.18 11 27.29 44.72 18.62 26.54 20.6 18.09 Edelweiss Mid Cap Fund Reg (G) 9.08 15.29 28.84 57.53 26.95 32.74 21.34 20.71 21.23 HDFC Mid Cap Opportunities Fund (G) 4.89 10.98 20.1 46.64 29.04 31.24 20.04 19.68 21.53 HSBC Midcap Fund Reg (G) 7.21 10.47 24.22 56.55 23.96 27.21 16.52 18.67 18.75 19.56 ITI Mid Cap Fund Reg (G) 5.55 7.88 24.81 62.87 24.46 Kotak Emerging Equity (G) 7.25 12.95 29.65 47.54 24.16 30.6 20.19 20.62 19.91 Motilal Oswal Midcap Fund Reg (G) 7.15 21.07 33.24 61.92 37.28 34.58 22.26 21.35 Nippon India Growth Fund (G) 5.93 12.25 25.84 51.06 27.46 32.12 21.29 19.57 17.6 21.44 PGIM India Mid Cap Opp Fund Reg (G) 6.4 12.5 20.71 33.35 16.2 32.56 19.51 17.26 Quant MidCap Fund (G) 2.34 0.52 13.91 51.46 29.7 37.15 24.75 20.2 16.31 14.24 SBI Magnum MidCap Fund Reg (G) 6.08 10.81 20.98 36.09 23.07 30.08 17.97 18.04 18.21 1 year trailing 1st quartile : 55.5- 63%: ITI Mid Cap Fund Reg (G), Edelweiss Mid Cap Fund Reg (G), HSBC Midcap Fund Reg (G), Motilal Oswal Midcap Fund Reg (G) 2rd quartile : 48- 55.5% : Nippon India Growth Fund (G), Quant MidCap Fund (G) 3rd quartile : 40.5- 48% : HDFC Mid Cap Opportunities Fund (G), Kotak Emerging Equity (G), Axis Midcap Fund (G) 4th quartile : 33- 40.5 % : PGIM India Mid Cap Opp Fund Reg (G), SBI Magnum MidCap Fund Reg (G) 3 years trailing return 1st quartile : 32.5-38 %: Motilal Oswal Midcap Fund Reg (G) 2rd quartile : 27%- 32.5%: HDFC Mid Cap Opportunities Fund , Nippon India Growth Fund (G),Quant MidCap Fund (G) 3rd
What are flexi cap Lets start with the definition, Flexi Cap mutual funds offer several advantages for investors, making them a compelling option for many. Here’s a breakdown of their key benefits and how they compare to other mutual fund schemes: Advantages of Flexi Cap Funds: Diversification and Risk Management: Flexi caps invest across companies of all market capitalisation (Large, Mid, and Small). This spreads your investment across different segments, mitigating risk compared to focusing on a single cap size. If a particular market segment (like small caps) underperforms, the fund’s exposure to other segments can help balance the portfolio. Growth Potential: Flexi caps allow you to tap into the potential of high-growth mid and small-cap companies alongside the stability of large caps. This combination can offer the potential for better returns compared to pure large-cap funds. Flexibility for Fund Managers: Unlike multi-cap funds that have mandated allocations across market caps, Flexi caps offer more flexibility. Fund managers can dynamically adjust the portfolio based on their assessment of different companies and sectors. This allows them to capitalize on opportunities across the market spectrum. Comparison with Other Schemes: Large Cap Funds: Provide stability and consistent returns but may limit growth potential. Mid Cap Funds: Offer higher growth prospects than large caps but come with increased volatility. Small Cap Funds: Even higher growth potential but with significant volatility and risk. Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios JM flexi cap fund 2008 5 star 3,855 1.83% 21.32 HDFC Flexi cap 1995 4 star 61,572 1.45% 20.85 Franklin India flexi cap fund 1994 4 star 16,677 1.72% 17.40 Motilal Oswal Flexi Cap fund 2014 4 Star 11,466 1.74% 45.70 Parag Parikh flexi cap fund 2013 3 Star 75,956 1.33% 16.55 Kotak Flexi Cap 2009 3 star 53,783 1.44% 22.14 DSP Flexi Cap 2007 3 Star 11,879 1.72% 21.70 ABSL Flexi Cap fund 1998 2 Star 22,792 1.66% 24.95 PGIM India flexi cap fund 2015 1 star 6,418 1.77% 29.94 Quant Flexi cap fund 2008 – 7,436 1.76% 22.21 Invesco India Flexi Cap 2022 – 1,985 2.03% 28.29 JM flexi cap fund The fund was launched in the year 2008, Currently CRISIL rated 5 , The fund has an expense ratio of 1.83% as the current fund size is very low. The PE of the fund is 21.32 HDFC Flexi cap This is one of the oldest funds in the category launched in 1995, So a long history for the fund. Currently CRISIL is rated 4 Star. The fund enjoy’s one of the highest portfolio size of 61,572 cr , with a low expense ratio of 1.44%. The current PE of the fund is 20.85. Franklin India flexi cap fund This is the oldest fund in the category launched in 1994, Crisil rated 4 star. Due lack of distribution and loss of reputation during the debt crisis the fund size is low 16,677 cr , expense ratio is 1.72%. With a very good PE of 17.40. Motilal Oswal Flexi Cap fund The fund was launched in 2014, it is rated by Crisil as 4 star. The fund has a fund size of 11,466 cr with expense ratio of 1.74%. The current PE is 45.70 Parag Parikh flexi cap fund The fund was launched in 2013, Currently CRISIL rated as 3 star, has the highest AUM in the category of 75,956 cr, the lowest expense ratio of 1.33%. THE current PE of the fund is 16.55. Kotak Flexi Cap The fund was launched in the year 2009, currently CRISIL rated as 3 star. It has AUM of 53,783 Cr, 3rd largest AUM in the category. Low expense ratio of 1.44% . The current PE is 22.14 DSP Flexi Cap The fund was launched in the year 2007, Currently CRISIL rated 3 star. The current AUM is 11,879 Cr, with expense ratio of 1.72%. Current PE is 21.70 ABSL Flexi Cap fund Another fund with a long history launched in 1998, Currently rated 2 star. The portfolio size of 22,792 cr, expense ratio is 1.66% . The Current PE is 24.95. PGIM India flexi cap fund The fund was launched in 2015, currently rated as 1 star. The fund has a small fund size of 6,418 cr. Expense ratio of 1.77%. PE of the fund is 29.94 Quant Flexi cap fund The fund was launched in 2008 , currently not rated by CRISIL. The fund has AUM Of 7,436 Cr. Expense ratio of 1.76%. PE of the fund is 22.21 Invesco India Flexi Cap The fund is a recent addition to the category, launched in the year 2022. Currently not rated by CRISIL . The fund size is small of 1,985 cr. The PE of the fund is 28.29. Trailing Returns : Scheme 1 month 3 months 6 months 1 year 3 years 5 years 7 years 10 years 15 years 20 years Aditya Birla SL Flexi Cap Fund Reg (G) 1.45 11.61 17.85 39.16 17.24 20.98 14.36 15.46 15.01 DSP Flexi Cap Fund Reg (G) 1.59 11.62 21.74 37.53 16.94 21.92 16.4 15.51 15.23 Franklin India Flexi Cap Fund (G) 1.59 11.05 18.44 44.68 23.46 24.9 16.83 16.44 16.38 19.1 HDFC Flexi Cap Fund Reg (G) 0.55 9.06 17.06 43.12 27.8 24.62 17.94 15.69 16.36 19.79 Invesco India Flexi Cap Fund Reg (G) 2.99 12.72 21.91 52.08 JM Flexi Cap Fund (G) 0.23 12.28 23.93 62.01 30.85 27.98 19.71 19 14.82 Kotak Flexi Cap Fund Reg (G) -0.44 6.42 18.06 36.84 17.99 19.48 14.73 15.82 15.13 Motilal Oswal Flexi Cap Fund Reg (G) 2.24 12.58 24.14 58.07 18.68 18.62 12.4 16.82 Parag Parikh Flexi Cap Fund Reg (G) 2.03 8.46 14.14 39.97 19.45 26.47 20.66 18.61 PGIM India Flexi Cap Fund (G) 2.45 11.66 15.28 29.91 12.48 23.42 15.9 Quant Flexi Cap Fund (G) -0.58 7.56 14.81 57.42 27.08 37.05 22.85 21.42 13.81 1 year trailing 1st quartile : >54, The first was JM flexi cap fund, Motlia
Most firms have set up a war room to triage their immediate response to the crisis. But the lack of visibility around future demand complicates efforts to restart stalled portfolio companies…
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