Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio Exit Load JM flexi cap fund 2008 5 star 5,012 1.81% <30 days 1% ; >30 days 0% HDFC Flexi cap 1995 4 star 66,344 1.42% <1 year 1% ; >1 year 0% Franklin India flexi cap fund 1994 4 star 17,947 1.70% 1.00% – 0-1 years  0.00% – >1 years Motilal Oswal Flexi Cap fund 2014 5 Star 13,162 1.72% 1.00% – 0-1 years 0.00% – >1 years Parag Parikh flexi cap fund 2013 4 Star 87,539 1.33% 2.00% – 0-365 days 1.00% – 365-730 days 0.00% – >730 days Kotak Flexi Cap 2009 2 star 50,426 1.47% 1.00% – 0-1 years 0.00% – >1 years DSP Flexi Cap 2007 3 Star 11,569 1.72% 1.00% – 0-12 months 0.00% – >12 months ABSL Flexi Cap fund 1998 3 Star 22,174 1.68% 1.00% – 0-90 days 0.00% – >90 days PGIM India flexi cap fund 2015 1 star 6,354 1.78% 0.50% – 0-90 days 0.00% – >90 days Quant Flexi cap fund 2008 – 7,185 1.80% 1.00% – 0-15 days 0.00% – >15 days Invesco India Flexi Cap 2022 – 2,576 1.96% 1.00% – 0-1 years 0.00% – >1 years JM flexi cap fund : The fund was launched in the year 2008, Currently CRISIL rated 5 , The fund has an expense ratio of 1.81% as the current fund size is very low. The exit load of the fund is 1% for less 30 days. 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 66,344 cr , with a low expense ratio of 1.42%. Exit load is 1% for redemption less than 1 year. 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 17,947 cr , expense ratio is 1.70%. Exit load is 1% for redemption less than 1 year. Motilal Oswal Flexi Cap fund : The fund was launched in 2014, it is rated by Crisil as 5 star. The fund has a fund size of 13,162 cr with expense ratio of 1.72%. Exit load of the fund is 1% for less than 1 year. Parag Parikh flexi cap fund The fund was launched in 2013, Currently CRISIL rated as 4 star, has the highest AUM in the category of 87,539 cr, the lowest expense ratio of 1.33%. The fund has exit load 2% for redemption before 1 year and 1% for redemption before 365-730 days. Kotak Flexi Cap The fund was launched in the year 2009, currently CRISIL rated as 2 star. It has AUM of 50,426 Cr, 3rd largest AUM in the category. Low expense ratio of 1.47% . 1% for redemption before 1 year. DSP Flexi Cap The fund was launched in the year 2007, Currently CRISIL rated 3 star. The current AUM is 11,569 Cr, with expense ratio of 1.72%. 1% for redemption before 1 year. ABSL Flexi Cap fund Another fund with a long history launched in 1998, Currently rated 3 star. The portfolio size of 22,174 cr, expense ratio is 1.68% . Exit load of the fund is 1% for 90 days. PGIM India flexi cap fund The fund was launched in 2015, currently rated as 1 star. The fund has a small fund size of 6,354 cr. Expense ratio of 1.78%.Exit load 0.5% for the 90 days. Quant Flexi cap fund The fund was launched in 2008 , currently not rated by CRISIL. The fund has AUM Of 7,185 Cr. Expense ratio of 1.80%. Exit load for the fund is 1% before 15 days of investment. 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. Expense ratio of 1.96%. Exit load for the fund is 1% before 1 year of redemption. Trailing Returns : Scheme 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 15 Year JM Flexi Cap Fund (G) 18.21 34.2 23.28 22.28 18.09 16.14 13.99 HDFC Flexi Cap Fund Reg (G) 18.52 26.74 21.59 22.61 16.12 14.45 15.26 Franklin India Flexi Cap Fund (G) 14.92 25.2 16.36 20.78 14.77 13.48 15.29 Motilal Oswal Flexi Cap Fund Reg (G) 27.66 34.12 19.31 16.06 11.74 13.59 – Parag Parikh Flexi Cap Fund Reg (G) 18.18 26.84 17.58 23.73 19.36 17.55 – Kotak Flexi Cap Fund Reg (G) 13.43 19.55 13.36 15.12 13 12.74 14.71 DSP Flexi Cap Fund Reg (G) 15.02 23.46 13.59 16.55 14.47 13.13 13.94 Aditya Birla SL Flexi Cap Fund Reg (G) 13.65 21.33 12.94 16.02 12.68 13.03 13.91 PGIM India Flexi Cap Fund (G) 13.49 17.84 8.58 18.85 14.43 – – Quant Flexi Cap Fund (G) -1.29 24.25 15.68 30.19 19.32 18.05 12.28 Invesco India Flexi Cap Fund Reg (G) 21.62 29.83 – – – – – 1 year trailing 1st quartile : 21-28% : Motilal Oswal Flexi Cap Fund Reg (G), Invesco India Flexi Cap Fund Reg (G) 2rd quartile : 14-21% : JM Flexi Cap Fund (G), HDFC Flexi Cap Fund Reg (G), Franklin India Flexi Cap Fund (G), Parag Parikh Flexi Cap Fund Reg (G), DSP Flexi Cap Fund Reg (G) 3rd quartile : 7- 14% : Kotak Flexi Cap Fund Reg (G), Aditya Birla SL Flexi Cap Fund Reg (G), PGIM India Flexi Cap Fund (G) 4th quartile : <0-7 % : Quant Flexi Cap Fund (G) 3 years trailing return 1st quartile : 19.75-24% : JM Flexi Cap Fund (G), HDFC Flexi Cap Fund Reg (G) 2rd quartile : 15.5- 19.75% : Franklin India Flexi Cap Fund (G), Motilal Oswal Flexi Cap Fund Reg
Fund Name Year Of Inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load ICICI Pru blue chip fund 2008 5 63,938 1.45 19.11 1% for redemption within 365 days Nippon India large cap fund 2007 5 35,313 1.57 20.13 1% for redemption within 7 days JM large cap fund 1995 4 495 2.36 20.52 1% for redemption within 30 days HDFC Large Cap fund 1996 4 36,587 1.61 16.44 1% for redemption within 365 days Aditya birla Frontline equity 2002 3 29,323 1.65 19.69 1% for redemption within 90 days Canara Robeco Bluechip Equity fund 2010 3 14,824 1.66 22.14 1% for redemption within 365 days SBI blue chip Fund 2006 2 50,502 1.5 22.52 1% for redemption within 365 days Mirae asset large cap fund 2008 1 39337 1.52 10.47 1% for redemption within 365 days DSP Top 100 Equity Fund Reg (G) 2003 4 4,530 1.93 15.76 1% for redemption within 364 days WhiteOak Capital Large Cap Fund Reg (G) 2022 – 661 2.33 21.74 1% for redemption within 30 days Invesco India Large cap Fund (G) 2009 4 1,317 2.09 22.88 0 ICICI Pru blue chip fund : The fund has the highest AUM in the category , launched in the year 2008, The fund enjoys CRISIL 5 star rating. The fund size is 63,938 cr, Low expense ratio of 1.45. The fund has PE of 19.11. The exit load of the fund is 1% before 365 days. Nippon India large cap fund : The fund was launched in the year 2007, is Crisil 5 star rated fund, with portfolio size of 35,313 cr. Expense ratio of 1.57. The PE of the fund is 20.13. Exit load is 1% for redemption within 7 days. JM large cap fund The fund was launched in the year 1995, Is CRISIL 4 star rated fund, with portfolio size of just 495 cr and high expense ratio of 2.36. The Current PE of 20.52. Exit load of the fund is 1% for redemption within 30 days. HDFC Large Cap fund The fund was launched in 1996, It is CRISIL rated 4 star. The fund enjoys a good portfolio size of 36,587 cr. The expense ratio of the fund is 1.61. The PE of the fund is 16.44. Exit load 1% for redemption within 365 days. Aditya birla Frontline equity The fund was launched in 2002, CRISIL rated 3. It has a good fund size of 29,323 cr. The expense ratio of the fund is 1.65. PE of the fund is 19.69. Exit laid of the fund is 1% for redemption within 90 days. Canara Robeco Bluechip Equity fund The fund was launched in 2010, Currently rated as 3 star by CRISIL. The fund size is 14,824 cr. The expense ratio of 1.66. The PE of the fund is 22.14.Exit load is 1% for the redemption within 365 days. SBI blue chip Fund The fund was launched in the year 2006, This is the second largest fund in AUM at 50,502 cr. The fund is CRISIL rated at 2. The expense ratio of the fund is 1.5. PE of the fund is 22.52. Exit load of the fund is 1% for redemption within 365 days. Mirae asset large cap fund The fund was launched in 2008, CRISIL rated 1 star. This is the 3rd largest fund by AUM in the category 39,337 cr. The expense ratio of the fund is 1.52. The PE of the fund is 10.47. Exit load of the fund is 1% for redemption within 365 days. DSP Top 100 Equity Fund Reg (G) The fund was launched in 2003, CRISIL rated 4 star. The fund size is 4,530 cr. The Expense ratio is 1.93. The PE of the fund is 15.76. Exit load of the fund is 1% for redemption within 365 days. WhiteOak Capital Large Cap Fund Reg (G) The fund was recently launched in 2022, no CRISIL rating. The fund size is 661 cr. The expense ratio is 2.33. The PE of the fund is 21.74. Exit load of the fund was 1% for redemption for 365 days. Invesco India Large cap Fund (G) The fund was launched in 2009, CRISIL rated 4 star. Fund size of 1,317 cr. The expense ratio is 2.09. The PE of the fund is 22.88. The does not have any exit load. Trailing Returns : Scheme 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Nippon India Large Cap Fund (G) 12.23 16.78 18.12 13.73 13.51 13.9 ICICI Pru Bluechip Fund Reg (G) 12.11 13.83 17.41 13.63 13.46 14.11 JM Large Cap Fund (G) 7.99 12.09 16.26 12.2 10.53 9.56 HDFC Large Cap Fund (G) 7.26 13.96 15.99 12.34 11.97 12.45 Aditya Birla SL Frontline Equity Fund Reg (G) 10.79 10.96 15.52 11.58 11.9 12.6 Canara Robeco Bluechip Equity Fund (G) 12.7 10.35 16.08 14.35 13.05 – SBI Blue Chip Fund Reg (G) 9.51 10.42 15.22 11.8 12.49 12.61 Mirae Asset Large Cap Fund Reg (G) 8.33 7.91 13.45 11.25 12.73 13.96 DSP Top 100 Equity Fund Reg (G) 16.74 13.41 13.9 11.5 10.86 10.91 WhiteOak Capital Large Cap Fund Reg (G) 15.09 – – – – – Invesco India Largecap Fund (G) 13.8 11.04 16.31 12.97 12.51 12.19 1 Year Trailing return 1st Quartile : 14-17% – DSP Top 100 Equity Fund Reg (G), WhiteOak Capital Large Cap Fund Reg (G) 2nd Quartile : 11-14% – Nippon India Large Cap Fund (G), ICICI Pru Bluechip Fund Reg (G), Canara Robeco Bluechip Equity Fund (G), Invesco India Largecap Fund (G) 3rd Quartile : 8- 11%  –JM Large Cap Fund (G), HDFC Large Cap Fund (G), Aditya Birla SL Frontline Equity Fund Reg (G), SBI Blue Chip Fund Reg (G), Mirae Asset Large Cap Fund Reg (G) 4rth Quartile : 5- 8%  – no fund 3 Year Trailing Return 1st quartile  : 14-17%- Nippon India Large Cap Fund (G) 2nd quartile : 11-14%-ICICI
Choosing the right investment avenue can be a daunting task, especially when considering long-term financial goals like retirement or a child’s education. Two popular options that often come into the spotlight are Equity-Linked Savings Schemes (ELSS) Public Provident Fund (PPF). Both offer tax benefits, but they differ significantly in terms of risk, return potential, and liquidity. In this article, we’ll delve into the key differences between ELSS and PPF to help you make an informed decision. We are not going to discuss here the products, as i think people are aware of the features of both The question was why do people prefer Public provident fund ( PPF) Offer Guaranteed returns Tax benefit under section 80C, when you invest The interest earned was tax free The maturity is tax free As an advisor I have been an advocate of PPF, BUT PPF has underperformed ELSS in a big way. Lets look at the returns made over the years , if person deposits Rs 1,00,000 every year on 31 March , since 2000 to 31 March 2024 , a close 25 years of investment For our article’s sake I have taken the HDFC tax Saver fund Growth Regular plan. The Outperformance 15 years – PPF made Rs 27,78,383.76 vs ELSS Rs85,28,783.14 i.e 3 times of PPF amount 20 Years – PPF made you Rs 47,16,594.97 Vs ELSS Rs 1,68,92,247.22 i.e 3.5 times of PPF amount 25 Years – PPF made Rs 72,73,968.04 vs ELSS Rs 3,80,31,702.24 i.e 5 times of PPF . In my experience people who are investing in PPF Continue with even after maturity, but even 3 times outperformance is just mind boggling The myth of Guaranteed returns vs not guaranteed In this period equity markets had 2 down turns. The lines highlighted in yellow are those years lets see how much did ELSS made you lose in this year vs PPF 10th year – PPF was at Rs 1,464,093.39 vs ELSS Rs 27,80,241, Ohh Still ahead of PPF by 1.89 times of ELSS 21th Year- PPF 51,90,620.96 vs ELSS Rs 1,14,65,714.48 , Again Outperformance by 2.2 times Even during the worst downturns we have seen the ELSS outperformed the PPF. What Next ? The PPF rates at 7.1% are bound to come down in future as and when the rate cuts would start to set in. So the future may hold less earning ELSS provide better liquidity, which missed here ( even though not recommend) ELSS you have to pay tax lets see if tax payment makes it less attractive , equity being taxed at 12.5% , so 15 years – PPF made Rs 27,78,383.76 vs ELSS Rs 74,62,685.12 i.e 2.6 times of PPF amount 20 Years – PPF made you Rs 47,16,594.97 Vs ELSS Rs 1,47,80,716.12 i.e 3.1 times of PPF amount 25 Years – PPF made Rs 72,73,968.04 vs ELSS Rs 3,32,77,739.25 i.e 4.5 times of PPF . Conclusion : Any person who is looking to make an investment in PPF for 15 years should consider how much money he/she is losing in the when he is going to invest in PPF for 15 years .  Learn more about Best ELSS funds.Â
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)