Rating : 2 star Fund size : 7332.91 cr Expense ratio : 1.72% , seems a bit higher Trailing Returns Based on the past returns we see that it has been giving good returns Rolling Returns Rolling returns show that for around 77% of times the fund has given returns more than 12 % and around 50% of times returns more than 15 % for a rolling period of 5 years. Which is a normal result. It is to be observed that the fund has never given negative returns in 5 years period. The average returns is also decent for the fund at 14% Benchmark return : The fund is benchmarked against S&P BSE 500 TRI. The fund started with weak performance but had recovered since then. And has been above the benchmark for all these years. Vs Other ELSS fund : When we see the performance compared with other funds we see that the fund is not performing as compared Ratios The fund has std. deviation of 12.46 which shows the returns are stable, the beta is high of 0.91 but the fund has not been able to deliver any alpha, which is negative. The Sortino ratio which shows how much the downside the fund can protect is not good. Fund manager : The fund had a lot of changes in fund manager till 2020 , which may have caused a lot of trouble for the fund. The new fund manager seems to be loaded with a lot of funds to manage . Only Vishal Mishra even though new is trying to manage the fund. But his fund performance is still below the benchmarks. Fund strategy and fund style : Fund is growth oriented fund with fair orientation to large caps , limited allocation to id cap and very small allocation to small. So it may be one reason that it has underperformed the other ELSS funds in the market. This is the reason for the fund to be much more stable. The sector allocation of the fund is aligned with the benchmark to financial , technology and Automobiles. Conclusion The fund has some stable results and can be part of portfolio if you do not want to take much risk in your portfolio. But still better ELSS fund are available in the market.
Ben Graham the inventor of the phrase “margin of safety” defined investment as “ An investment operation is one which, upon thorough analysis, promises safety of principle and satisfactory returns. Operations Not meet these requirements are speculative” Investing can be an exciting journey that allows you to grow your wealth and achieve your financial goals. But before you dive in, it’s essential to equip yourself with a solid understanding of core investment principles. These fundamental concepts provide a roadmap for navigating the financial markets, making informed decisions, and building a successful investment portfolio. Whether you’re a seasoned investor or just starting out, a grasp of these core principles empowers you to take control of your financial future and make smart choices with your hard-earned money The fundamentals are very easy to grasp and may work as a guiding principle for anybody investing. They do not change for your Mutual fund investing too. Assigning goals: Every investment you make should be tied to a specific financial goal. This goal could be as simple as growing your money by a certain percentage over time, or it could be something more substantial like buying a house, funding your children’s education, or securing a comfortable retirement. Risk : Understanding your risk tolerance is crucial before investing. Mismatching your risk profile with an investment’s risk level can lead to a negative experience. Imagine a conservative investor placed in a small-cap fund, like the Nippon Small Cap Fund, which experienced a significant downturn of -36.19%. This could cause them considerable anxiety and potentially derail their investment plans. Conversely, an aggressive investor stuck in an equity-saving fund during a strong market might feel frustrated watching others earn higher returns . Horizon : Time horizon in investing refers to the amount of time you plan to hold onto an investment before you need to access the money. It’s a crucial factor in determining your investment strategy and risk tolerance Common Time Horizons: Short-Term (0-3 years): Focuses on preserving capital with minimal risk. Examples include savings accounts, money market funds, and short-term bonds. Medium-Term (3-10 years): Aims for a balance between growth and stability. Examples include balanced funds, index funds, and some corporate bonds. Long-Term (10+ years): Prioritizes long-term growth with the ability to handle volatility. Examples include growth stock funds, small-cap funds, and real estate investments. Current asset allocation: Having your asset allocation analyzed is a critical step in successful investing. This process helps you understand the current makeup of your portfolio and how different assets within it have historically behaved. By analyzing your asset allocation, you can identify any areas where you might be overweight or underweight in certain asset classes. This knowledge empowers you to make informed decisions and potentially adjust your portfolio to better align with your risk tolerance and financial goals( i have written about the concept in my blog https://wealthinn.in/asset-allocation-guideline-for-investment/ Diversification : Diversification in investing is a fundamental strategy that involves spreading your investments across various asset classes, industries, and even geographical locations. The core principle is to avoid putting all your eggs in one basket. By diversifying, you aim to reduce the overall risk of your portfolio without sacrificing potential returns. Asset allocation tends to take care of your diversification needs Emergency planning : Building an emergency fund is a crucial principle of sound financial planning. It’s a safety net that can cover unexpected expenses, such as job loss, medical bills, or car repairs. Aim to save 6-12 months of your living expenses in this fund. This amount can be adjusted based on your circumstances. For example, if you have a steady job and good health insurance, you might target 6 months. Conversely, if you’re self-employed or have high healthcare costs, consider saving closer to 12 months. You can store your emergency fund in a highly liquid account like a Fixed deposit account or a money market fund. Remember to regularly review and adjust your emergency fund as your income and expenses change. Insurance planning : Insurance planning is the process of strategically choosing insurance policies to financially protect yourself, your loved ones, and your assets in case of unforeseen events. It’s about identifying potential risks and finding insurance plans that can mitigate the financial burden they might cause. You should at least run one term plan and one health insurance policy apart from your corporate policy if you are salaried . These profiles prepare you and arm you with necessary steps to investment, i always say that products are last to be selected. Once the profile is clear things are done we can move to look into the products and select the products as per the guidelines given below Past performance : Past performance is a tricky concept in investing. While it can provide some insights, it’s not a guaranteed predictor of future results. But we do need to check how the funds are performing as compared to other funds in the category. Rolling returns : Rolling returns are a valuable tool for investors looking to understand the historical performance of an investment over various holding periods. Unlike traditional point-to-point returns, which show the change in price from one specific date to another, rolling returns provide a more nuanced picture. Benefits of Rolling Returns: Provides a Smoother Picture: Rolling returns smooth out short-term fluctuations, offering a better understanding of how an investment performs over different holding periods. Helps Analyze Risk: By analyzing rolling returns across various holding periods, you can gain insights into the investment’s potential volatility and risk profile. Informs Investment Decisions: Understanding how an investment has performed for different holding periods can help you make informed decisions about your own investment horizon and risk tolerance. Ratios : Mutual fund ratios are like little keyholes that give you a glimpse into the inner workings of a fund. They offer valuable insights into a fund’s performance, cost structure, and risk profile. Here are some key ratios to understand: Expense Ratio: This is the annual fee a fund charges investors to cover
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
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio Exit Load Quant small cap fund 1996 3 26,645 cr 1.59 1% for redemption within 365 days Bandhan Small cap fund 2020 4 7,534 cr 1.74 1% for redemption within 365 days Hdfc Small cap fund 2008 3 33,894 cr 1.57 1% for redemption within 365 days Nippon India small cap fund 2010 4 62,260 cr 1.42 1% for redemption within 365 days Axis Small cap fund 2013 2 24,766 cr 1.61 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days HSBC Small Cap fund 2014 4 17,306 cr 1.68 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days SBI small cap fund 2009 3 34,217 cr 1.56 1% for redemption within 365 days DSP small Cap fund 2007 1 16,705 cr 1.7 1% for redemption within 364 days Kotak Small cap Fund 2005 3 18,287 cr 1.64 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Mahindra Manulife Small Cap Fund Reg (G) 2022 – 5,478 cr 1.79 1% for redemption within 3 months ITI Small Cap Fund Reg (G) 2020 5 2,415 cr 1.93 1% for redemption within 365 days Quant small cap fund : One of the oldest performing funds in the category, enjoying 3 star rating, but of course it was not launched by quant but had been taken over by quant, with a decent portfolio size of 26,645 cr , expense ratio of 1.59. Bandhan Small cap fund : Launched in 2020 , bandhan small cap enjoys 4 star rating , Portfolio size is small at 7,534 cr, high expense ratio of 1.74. Hdfc Small cap fund: Launched in 2008 , the fund enjoys a 3 star rating . It has a decent fund size of 33,894 cr, and seems like a lot of people liked it . The expense ratio is very low 1.57. Nippon India small cap fund : Launched in 2010, the category leader enjoys a 4 star rating. Highest fund size of 62,260 cr, managed by sunil singhania before exit. Lowest expense ratio of 1.42% . Axis Small cap fund : Launched in 2013 , the fund enjoys a 2 star rating. Even with this rating the fund has a decent portfolio size of 24,766 cr , as it was favorite at some point in time. 1.61% expense ratio is very decent. HSBC Small Cap fund : Launched in 2014, the fund was very much in demand in its earlier times. It enjoyed a rating of 4. Portfolio size of 17,306 cr . Expense ratio is a bit high 1.68%. SBI small cap fund : Launched in 2009, with the distribution power of SBI bank , the fund is the 3rd highest fund size of 34,217 Cr. Fund is 3 star rated. Low expense ratio of 1.56%. DSP small Cap fund : Launched in 2007, the fund is 1 star rated. Fund size is 16,705 cr. High expense ratio of 1.64%. Kotak Small cap Fund : The fund was launched in 2005. Currently rated as 3 star. Has garnered a decent fund size of 18,287 cr. Decent expense ratio of 1.64% . Mahindra Manulife Small Cap: The fund launched in 2022, so the fund is not rated till now. Very Small fund size of 5,478 cr. High expense ratio of 1.79%. 7 ITI Small Cap Fund Reg (G): The fund was launched in 2020, is highest rated as of now at 5. The fund size is not too big 2,415 cr. The expense ratio is 1.93 . Trailing Returns : Scheme 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Bandhan Small Cap Fund Reg (G) 59.88 26.44 0 0 0 0 Kotak Small cap Fund (G) 36.99 19.06 31.17 20.07 19.97 18.93 HSBC Small Cap Fund Reg (G) 36.45 25.81 30.69 18.71 21.04 14.36 Axis Small Cap Fund Reg (G) 32.9 20.96 27.3 21.5 19.86 0 Mahindra Manulife Small Cap Fund Reg (G) 45.25 0 0 0 0 0 Nippon India Small Cap Fund (G) 39.97 28.75 35.78 22.63 22.85 0 DSP Small cap Fund Reg (G) 32.45 21.83 30.55 17.54 19.76 20.97 ITI Small Cap Fund Reg (G) 46.97 20.36 0 0 0 0 SBI Small Cap Fund Reg (G) 32.25 20.38 27.97 19.42 22.53 21.16 Quant Small Cap Fund (G) 43.97 25.67 45.81 26.28 20.84 17.94 HDFC Small Cap Fund (G) 27.17 22.48 28.22 18.88 19.25 17.52 Even though in the market the past returns are no guarantee of future returns but let us understand how in this rising market these funds have performed. Well we do have trailing returns history for last 24 years since only one fund was present at that moment we would consider the following 13 years trailing ,we see that looking at 1year/ 3 years / 5 years /7 years /10/15 years returns 1 year trailing 1st quartile : 51.25 – 60% – Bandhan Small Cap Fund Reg (G), 2rd quartile : 42.5 – 51.25 % – Mahindra Manulife Small Cap Fund Reg (G), ITI Small Cap Fund Reg (G), Quant Small Cap Fund (G) 3rth quartile : 33.75 – 42.5 % – Nippon India Small Cap Fund (G), Kotak Small cap Fund (G), HSBC Small Cap Fund Reg (G), 4th quartile : 25 – 33.75 % – Axis Small Cap Fund Reg, DSP Small cap Fund Reg (G), SBI Small Cap Fund Reg (G), HDFC Small Cap Fund (G) 3 years trailing return 1st quartile : 25 – 29%: Bandhan Small Cap Fund Reg (G), HSBC Small Cap Fund Reg (G), Nippon India Small Cap Fund (G), Quant Small Cap Fund (G) 2nd quartile: 21- 25%: DSP Small cap Fund Reg (G), HDFC Small Cap Fund (G) 3rd quartile : 17 – 21% : Kotak Small cap Fund (G), ITI Small Cap
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…