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)
Thematic fund : A thematic fund is a type of equity fund that invests in stocks of companies aligned with a specific theme or idea. Unlike traditional mutual funds categorized by market capitalization or investment style, thematic funds focus on a predetermined theme. These funds are more broad-based than sectoral funds, as they pick companies and sectors united by an idea eg. of themes could be manufacturing, infrastructure , transportation etc. Here we are going to discuss consumption funds as an investment proposition. What are consumption funds ? Consumption funds are a type of thematic mutual fund that focuses on companies benefiting from increased consumer spending. As the name suggests, these funds invest in businesses that cater to the growing needs and desires of consumers. So what would the consumption as theme entails as in sectors. The Nifty India Consumption Index is designed to reflect the behavior and performance of a diversified portfolio of companies representing the domestic consumption sector which includes sectors like Consumer Non-durables, Healthcare, Auto, Telecom Services, Pharmaceuticals, Hotels, Media & Entertainment, etc. All these sectors have products or services which are consumed by an individual This theme is driven by macroeconomic trends, structural shifts in consumer lifestyles and preferences. These funds typically invest in companies operating in sectors like: Fast-moving consumer goods (FMCG): Companies producing everyday essentials like food, beverages, personal care products, etc. Most people think that FMCG is the only sector which these funds would invest in but that is exactly not the case. Automobiles: Manufacturers and dealers of various vehicles. Telecom: The rise of mobile, mobile data, WIFI connections at home etc. Consumer durables: Producers of long-lasting consumer goods like electronics, appliances, furniture, etc. Retail: Companies involved in selling products directly to consumers.  Restaurants and hotels: Businesses catering to consumer spending on food and lodging. The list is still not exhaustive, this is just a glimpse of sectors which the fund manager can look into. A consumption fund provides investor access to varied diversified sectors in the economy. Why Invest in Consumption Funds? India’s Growing Middle Class:  India has a burgeoning middle class with increasing disposable income, driving consumption growth In recent years, more than 250 million citizens have transitioned out of poverty and joined the neo-middle class According to current projections, the middle class is expected to reach 41% of the country’s citizenry by 2031 As 140 million households move into the middle class and another 20 million move into the high-income bracket, they will spend 2-2.5x more on essential categories (food, beverages, apparel, personal care, gadgets, transport and housing) and 3-4x more on services (healthcare, education, entertainment and household care). Upper Middle-income and high-income entrants will drive a 15-20% increase in the ownership of durables (washing machines, refrigerators, TVs and personal vehicles) Urbanization:  The shift towards urban living fuels demand for consumer goods and services. Rising aspiration of the youth Increased mobile data penetration has further increased the aspiration levels of the people. This aspiration is driving them to explore a variety of lifestyle products and experiences, including international travel, premium electronics, and luxury goods. Rising Income Levels: India’s young and growing population, with a median age of 28.6 years, is a major driver of consumption growth. Unlike many ageing nations in the West and East, India will remain a nation of the young with a median age of 31 in 2030, India is well-positioned to reap the benefits of its demographic dividend. This young population is also more likely to adopt new technologies and trends, fueling consumption growth further. According to research by the World Economic Forum, growth in income will transform India from a bottom-of- the-pyramid economy to a truly middle-class one, with consumer spending growing from $1.5 trillion to nearly $6 trillion by 2030. Digital Revolution: India has witnessed a significant digital revolution in recent years, with the proliferation of smartphones and affordable internet access. This has led to a surge in e-commerce and online services, further boosting consumption. Online shopping, digital entertainment, and various app-based services have become an integral part of the consumer experience. Risks Involved Economic Downturns: Economic slowdowns can impact consumer spending and, consequently, fund performance. A situation like COVID, recession hinders people from spending and companies which are consumer facing face a downfall. Inflation: High inflation can erode purchasing power, affecting consumer demand. This reduces consumers’ ability to buy as much with their money, dampening overall consumption. Additionally, high inflation creates uncertainty, leading people to save more and spend less, further impacting consumption. Competition: A recent flux into thematic funds have created a large amount of money into thematic funds. But it is important to understand which would make sense to you. Reach out to us so we could help you with the same. Last not least for any investment a person should follow his asset allocation guidelines https://wealthinn.in/asset-allocation-guideline-for-investment/ You can reach us to help you design the best fund portfolio , so that you get best results according to your need and assessment.( 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 Asset allocation: Guideline for investment
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
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE Exit Load UTI Large & Mid Cap Fund (G) 1993 4 3,976 1.96 18.91 1.00% – 0-1 years 0.00% – >1 years HDFC Large And Mid Cap Fund Reg (G) 1994 4 23,485 1.66 19.68 1.00% – 0-1 years 0.00% – >1 years ICICI Pru Large & Mid Cap Fund Reg (G) 1998 4 17,120 1.69 24.82 1.00% – 0-1 months 0.00% – >1 months Canara Robeco Emerging equities Reg (G) 2005 2 24,108 1.59 33.76 1.00% – 0-1 years 0.00% – >1 years Bandhan Core Equity Fund Reg (G) 2005 5 6,917 1.79 24.75 Exit Load 1.00% – 0-365 days 0.00% – >365 days Quant Large and Mid Cap Fund (G) 2006 3 3,709 1.87 23.84 1.00% – 0-15 days 0.00% – >15 days Invesco India Large & Mid Cap Fund (G) 2007 5 6,149 1.8 32.63 1.00% – 0-1 years 0.00% – >1 years Mirae Asset Large & Midcap Fund Reg (G) 2010 1 38,166 1.51 17.36 1.00% – 0-365 days 0.00% – >365 days HSBC Large & Mid Cap Fund (G) 2019 3 3,609 1.93 38.91 1.00% – 0-1 years 0.00% – >1 years Motilal Oswal Large and Midcap Fund Reg (G) 2019 5 6,840 1.78 49.1 1.00% – 0-1 years 0.00% – >1 years UTI Large & Mid Cap Fund (G): This one of the oldest funds in the list started in 1993, CRISIL has rated the fund 4 star. The fund is not very large given its vintage, just 3976 cr. Expense ratio of 1.96 and PE of 18.91. And exit load of 1 year 1%. HDFC Large And Mid Cap Fund Reg (G): The fund was launched in 1994, one of earliest funds in the industry, With 4 star CRISIL rated, A decent fund size of 23,485 cr. Expense ratio of 1.66. PE of 19.68. The load on the fund is 1% for 1 year. ICICI Pru Large & Mid Cap Fund Reg (G): The fund was launched in the year 1998, Currency rated as 4 star. The fund size of 17,120 cr. Expense ratio of 1.69. The fund has a high PE of 24.82. The exit load of 1% for 1 month. Canara Robeco Emerging equities Reg (G): This fund was launched in 2005, Currently rated as 2 star, It has a good fund size of 24,108 cr second highest fund size in the funds under discussion. The fund has a PE of 33.76.The fund is 1.00 % for 1 year. Expense ratio of the fund is 1.59. Bandhan Core Equity Fund Reg (G): The fund was launched in 2005, it is currently CRISIL rated 5 star, though the fund size is not large, just about 6,917 cr. The Expense ratio is 1.79. The fund has PE of 24.75. Exit ad if 1% for 1 years. Quant Large and Mid Cap Fund (G): The fund was launched in the year 2006, currently rated 3 star by CRISIL. The fund size is not big with about 3,709 cr . The expense ratio for the fund is 1.87. PE of the fund is 23.84. The fund has an exit load of 15 days for 1%. Invesco India Large & Mid Cap Fund (G): The fund was launched in the year 2007, Currently rated as 5 star by CRISIL. Not a very big fund size at 6,149 cr. The expense ratio of the fund is 1.8. The fund has a high PE of 32.63. The exit load of the fund is 1% for 1 year. Mirae Asset Large & Midcap Fund Reg (G): The fund was launched in the year 2010, it has the highest AUM among the funds under discussion of 38,166 cr. The fund is rated as 1 star by CRISIL. The expense ratio of the fund is 1.51. The PE of the fund is 17.36. Exit load of the fund is 1% for 1 year. HSBC Large & Mid Cap Fund (G): The fund was launched in 2019, not a big fund size of 3,609 cr. The fund is rated as 3 star by CRISIL. The expense ratio of the fund is 1.93. The PE of the fund is 38.91. Exit ratio of the fund is 1 % for 1 year. Motilal Oswal Large and Midcap Fund Reg (G): The fund was launched in the year 2019, rated as 5 star by CRISIL. The fund size is 6,840 cr. The fund has an expense ratio of 1.78 and PE of 49.1. The exit ratio of 1% for 1 year. Trailing Returns : Scheme 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 15 Year UTI Large & Mid Cap Fund (G) 36.16 31.07 22.14 24.62 16.11 14.34 13.61 HDFC Large And Mid Cap Fund Reg (G) 27.51 28.34 21.7 24.41 17.28 14.23 12.66 ICICI Pru Large & Mid Cap Fund Reg (G) 28.86 26.36 21.53 24.09 16.57 14.88 14.82 Canara Robeco Emerging equities Reg (G) 33.9 25.16 16.96 22.43 15.78 16.94 19.78 Bandhan Core Equity Fund Reg (G) 37.73 32.56 24.58 24.42 16.78 16 13.67 Quant Large and Mid Cap Fund (G) 27.52 24.29 20.69 26.06 17.45 18.53 16.66 Invesco India Large & Mid Cap Fund (G) 44.75 33.65 23.16 22.2 17.32 16.1 15.54 Mirae Asset Large & Midcap Fund Reg (G) 24.95 23.14 15.29 21.75 16.78 18.63 – HSBC Large & Mid Cap Fund (G) 45.03 33.73 21.59 22.76 14.91 14.5 15.1 Motilal Oswal Large and Midcap Fund Reg (G) 49.4 40.64 27.25 27.03 – – – 1 year trailing 1st quartile : 43-50%- Invesco India Large & Mid Cap Fund (G), HSBC Large & Mid Cap Fund (G), Motilal Oswal Large and Midcap Fund Reg (G) 2rd quartile : 36-43%-UTI Large & Mid Cap Fund (G) 3rth quartile : 29- 36%-Canara Robeco Emerging equities Reg (G), Bandhan Core Equity Fund Reg (G) 4th quartile : 22-29 %-HDFC Large And Mid Cap Fund Reg (G), ICICI Pru Large
Maximize Returns, Minimize Taxes – Your Wealth, Reimagined! Save big on taxes while securing your future! Explore ELSS for up to 12% returns and tax-saving benefits under 80C. Get health insurance under 80D. 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. Lets Look at some of the best ELSS Funds Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios HDFC ELSS tax saver fund Regular Growth 1996 4 15934.95 1.71 20.97 Franklin India ELSS tax saver fund 1999 4 6832.69 1.80 18.65 Quant ELSS tax saver fund 2000 3 10979.71 1.72 26.52 Kotak ELSS Tax Saver Fund – Growth 2005 3 6148.14 1.76 21.39 HSBC ELSS Tax Saver Fund (G) 2006 4 4253.1 2.47 25.42 SBI long term equity Regular Growth 2007 5 27559.31 1.6 16.72 DSP ELSS tax saver fund 2007 4 16841.49 1.64 17.90 JM ELSS Tax Saver Fund (G) 2008 5 180.9 2.39 26.30 Bank of India ELSS Tax saver fund regular Growth 2009 3 1435.9 1.96 18.32 Axis ELSS Tax saver fund 2009 1 36533.13 1.52 27.75 Motilal Oswal ELSS tax saver fund 2015 5 4073.72 1.83 47.17 Parag Parikh ELSS Tax Saver Fund (G) 2019 3 4273.94 1.72 16.0 HDFC ELSS tax saver fund Regular Growth : The fund was launched in 1996 , a very old fund in the category. The fund is 4 star rated . The fund is managing a decent fund size of 15,934 cr. An expense ratio of 1.71. Fund is decent PE of 20.97. Franklin India ELSS tax saver fund: The fund was launched in the year 1999, Rated at 4 stars. The fund size is very small at 6,832.69 cr. Expense ratio of the fund is 1.8. A great PE of 18.65. Quant ELSS tax saver fund : The fund was launched in the year 2000, The fund is CRISIL rated 3 stars, the fund is decent size now 10,979 cr. The expense ratio of 1.72. The PE of the fund is 26.52. Kotak ELSS Tax Saver Fund – Growth: The fund was launched in 2005, rated as 3 star by CRISIL, fund is small size of 6148.14cr, the expense ratio for the fund is 1.76. The PE of the fund is 21.39. HSBC ELSS Tax Saver Fund (G): The fund was launched in the year 2006, The fund is 4 star rated as per CRISIL. Very small fund size of 2.47. HIgh PE of 25.422 and expense ratio of 2.47. SBI long term equity Regular Growth : The fund was launched in the year 2007, it is currently rated 5 star. Fund size of 27,559.31 cr. Expense ratio of 1.6 . Very low PE of 16.72. DSP ELSS tax saver fund: The fund was launched in 2007. It is currently rated as 4 star by CRISIL. Decent fund size of 16,841 cr. Expense ratio of 1.64. PE of 17.90. JM ELSS Tax Saver Fund (G): The fund was launched in the year 2008, Currency CRISIL rated 5. Very very small size of 180 cr. High expense ratio of 2.39. PE of 26.30. Bank of India ELSS Tax saver fund regular (G): The fund was launched in 2009. Crisil has rated the fund as 3 star. Small fund size of 1435.9 Cr. Expense ratio of the fund is 1.96. PE of the fund is 18.32. Axis ELSS Tax saver fund (G) : The fund was launched in the year 2009, Currently rated as 1 star by CRISIL. The fund has one of the largest fund sizes of 26,533.13 cr. With a 1.52 expense ratio. The PE of the fund is 27.75. Motilal Oswal ELSS tax saver fund (G) : The fund was launched in 2015, it is rated 5 star by CRISIL. The fund size is not too large at 4,073.73 cr. The PE of the fund is 47.17. Expense ratio is 1.83. Parag Parikh ELSS Tax Saver Fund (G) : The fund was launched in the year 2019. Currently rated as 2 star. The size of the fund is not big at 4,273 cr. The PE of the fund is 16. And the Expense ratio is 1.72. Trailing Returns : Scheme 1 year 2 year 3 years 5 years 7 years 10 years 15 years Quant ELSS Tax Saver Fund (G) 23.87 19.71 17.56 29.85 21.11 20.84 14.9 Parag Parikh ELSS Tax Saver Fund (G) 27.28 22.09 17.91 23.11 0 0 0 SBI Long Term Equity Fund Reg (G) 40.99 33.58 23.6 24.25 16.48 14.66 14.52 Motilal Oswal ELSS Tax Saver Fund Reg(G) 50.78 37.72 24.49 23.11 17.03 0 0 Franklin India ELSS Tax Saver Fund (G) 32.99 25.33 18.19 20.51 14.7 13.8 15.24 HDFC ELSS Tax saver Reg (G) 34.7 26.84 21.65 20.89 13.53 12.72 13.82 Kotak ELSS Tax Saver Fund (G) 29.67 22.29 16.57 19.99 15.25 14.5 13.87 DSP ELSS Tax Saver Fund Reg Fund (G) 36.95 26.81 18.66 21.48 16.17 15.88 15.88 Bank of India ELSS Tax Saver Fund Reg (G) 33.03 27.1 18 24.92 17.3 16.28 14.32 JM ELSS Tax Saver
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
Section 54F of the Income Tax Act, 1961 provides a welcome tax break for 1. Individuals and 2. Hindu Undivided Families (HUFs) looking to invest the profits from selling long-term capital assets into a new residential property. Let’s delve deeper into the conditions and benefits of this section. Capital Gains Eligible for Exemption: This section applies specifically to long-term capital gains, which arise when you sell a capital asset other than a house property and have held it for more than two years. Common examples include Mutual funds, stocks, bonds, gold, jewellery, and even certain types of business assets. By reinvesting the proceeds from these sales into a new residential property, you can potentially offset the capital gains tax liability. Investment Requirements and Timeframes: To claim the full exemption, the taxpayer must invest the entire net sale proceeds from the original capital asset into the new residential property. The Act offers some flexibility regarding the timing of this investment: Purchase: The rule is clear: You can purchase the new house within one year before or two years after selling the original asset. Construction: If the taxpayer intends to build a new residence, construction must be completed within three years from the date of sale. Partial Exemption and Other Considerations: If you’re unable to reinvest the entire capital gains amount into the new property, the exemption is available proportionately. For instance, if you invest only 70% of the proceeds, you’ll receive a tax exemption on 70% of the capital gains. It’s important to remember that you shouldn’t own more than one residential house at the time you sell the original asset to claim the exemption under Section 54F. Additionally, selling the newly acquired house within three years of purchase can lead to a reversal of the exemption. The capital gains from that sale would then be taxed. Maximizing the Benefit of Section 54F: Given the intricacies involved, consulting a tax advisor is highly recommended. They can assess your specific situation, ensure you meet all the eligibility requirements, and help you strategise the investment process to maximize the tax benefit offered by Section 54F. By carefully planning your investment and adhering to the timelines, you can significantly reduce your tax burden while making a significant investment in a new residential property. Saving on taxes is half the battle. The other half is living on less than you make