Understanding Waiting Periods Waiting periods in health insurance can be a complex topic, but understanding them is crucial to make informed decisions about your coverage. In essence, waiting periods are specific timeframes during which certain types of claims, such as those related to pre-existing diseases or specified illnesses, are not covered. Pre-Existing Diseases (PEDs) Defined by IRDA , Pre-Existing Disease means any condition, ailment or injury or related condition(s) for which there were signs or symptoms, and I or were diagnosed, and I or for which medical advice I treatment was received within 48 months prior to the first policy issued by the insurer and renewed continuously thereafter. Simple words , A pre-existing disease is any condition diagnosed or treated within 48 months before purchasing your health insurance policy. Examples include: High blood pressure Diabetes Asthma Thyroid conditions Chronic obstructive pulmonary disease (COPD) Kidney disease Impact of PEDs on Health Insurance Higher Premiums: Insurers may charge higher premiums to cover the increased risk associated with pre-existing conditions. Waiting Periods: Many policies impose waiting periods for claims related to PEDs. This means you’ll need to wait a specific period before coverage kicks in. Policy Denial: In severe cases, the insurer might deny coverage altogether. Permanent Exclusion: The insurer may permanently exclude coverage for the pre-existing disease and related conditions. Should You Hide Pre-Existing Conditions? Absolutely not! Disclosing pre-existing conditions is crucial. Hiding them can lead to claim denials later, causing significant financial hardship during a medical emergency. Specified Diseases Specified diseases are a list of pre-defined illnesses covered under a specific policy. These often include: Cancer Heart diseases Kidney diseases Liver diseases Paralysis Major organ transplants Multiple sclerosis Alzheimer’s disease Parkinson’s disease Maternity Newborn cover Impact of Specified Diseases Waiting Periods: Similar to PEDs, health policies may have waiting periods for specified diseases. Strategies for Managing Waiting Periods Start Early: Purchase health insurance when you’re young and healthy to benefit from lower premiums and shorter waiting periods. Low Waiting Period Plans: Look for policies with shorter waiting periods for PEDs and specified diseases. Plan Comparison: Carefully read the policy wording to understand how it handles waiting periods. Reduced Waiting Period: Some policies allow you to decrease the waiting period by paying an additional premium. Policy Continuation: Avoid discontinuing your existing health insurance plan to avoid starting fresh with waiting periods. Portability: If switching insurers, utilize the portability feature to transfer your existing policy. By understanding waiting periods and implementing these strategies, you can make informed decisions about your health insurance coverage and protect yourself from unexpected financial burdens. Get Expert Advice Have questions about navigating waiting periods in your specific situation? Feel free to reach out for a consultation. Book Your Free consultationÂ
Gold, a precious metal with a lustrous yellow hue, has captivated humanity for millennia. It has lasted over civilization from Ancient Egyptian to the Aztec Civilization. Its allure extends beyond its aesthetic appeal, making it a coveted asset for both personal adornment and financial investment. As a tangible asset, gold has proven to be a reliable store of value, weathering economic storms and geopolitical upheavals throughout history. Indians particularly had an inclination towards gold. Of the available instruments for investment the two instruments which had always got the most attention had been Real estate Gold Here in this research we are going to talk about the benefit of gold investing in the current scenario. Historically Looking Gold since 1981 has delivered 9.03% the growth is represented by the chart given below. Another measure to check the growth of any investment instrument is to look at the rolling returns of the we consider 10 years rolling returns and 15 years rolling returns. Once, we combine above 3 charts for gold returns over the years here are few observations Gold as a safe asset class is established with only 1 year period in 10 years rolling returns, where it was negative. T The 15 year rolling returns year it was never negative The gold had sub par returns till 2007 -2008, where it was in range of 3-8%, below its average long term returns. It was only after the global financial crisis that gold as an asset class was established world over. Establishing Gold As hedge It was during this time that gold became an edge against the downturn and more discussion from a perspective of diversification , asset allocation started. Factors which affect the Gold prices Before moving the discussion any further lets us understand the factors that move the gold. And try to see what is the current situation and how the gold can react to that. Central bank Reserves Gold is the most important reserve that the central bank keeps to strengthen its currency. Rupee, the Indian Currency is backed by Gold, (https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=3158#:~:text=All%20banknotes%20issued%20by%20RBI,33%20of%20RBI%20Act%2C%201934). So, more gold helps countries to have a currency which is strong as compared to other currencies for trade in the world. In recent years, we have seen more gold by 3 countries: Russia , China , India and Turkey, Which has led to an increase in the prices of Gold and what situation we are in currently . The current Situation : The gold buying by the central banks have started because of the Russia – Ukraine war. Since then the central banks have been trying to diversify their foreign reserves through Gold. Central banks are also trying to unlink currencies from US denominated trades and that can be only done through gold These situations have added to central banks buying more gold in the markets and this situation is not going to improve. US dollar : The price of the US dollar and gold are inversely related. Current Situation : The rate of Interest would lead to fall would lead to weakening of dollar , as dollar weakens the gold prices would appreciate. Increase Demand for Gold The gold is metal which has industrial uses as well as the household. India has been a buyer of physical gold for Jewelry purposes , during the festive seasons, weddings. Women Buyers have affinity for the yellow metal. Current Situations: The coming months we are heading to festivals and wedding seasons. This would lead to high gold buying and this pressure on the demand side. Rate of interests Gold as an asset class does not bear any interest, it was because most financial experts , include Mr. Warren buffet had advised against investing in gold. How does gold prices affect the rate of interest? If interest rates rise, people are interested to invest in an investment which would give higher returns like, FD , Debt instrument rises thus causing people to invest in interest bearing instruments. Whereas vice versa happens when interest rates move down. Current Situations :  Since last week, US Fed chairman Jerome Powel had stated in his statement that it was time to cut the rates. This would be followed by a world over central banks rate cut. Which forms the basis that as the rate of interest would decrease instruments which are non interest bearing would lose attractiveness. Hedge Against Inflation : Inflationary pressures have reached unprecedented levels in recent decades, prompting investors to seek strategies to preserve their wealth. Savings accounts, despite offering marginally higher interest rates than in previous years, often fall short of mitigating the erosion of purchasing power caused by inflation. This disparity between interest earned and rising prices results in negative real returns. Gold, historically recognized as a reliable inflation hedge, has emerged as a compelling investment option. By offering a counterbalance to the devaluation of currency, gold helps safeguard investors’ assets from the adverse effects of inflation, ensuring that their purchasing power remains relatively intact. Gold, a tangible asset with intrinsic value, has historically served as a reliable store of wealth. While the purchasing power of fiat currencies can diminish during periods of inflation, gold maintains its value, making it a sought-after investment for those seeking to protect their assets from the eroding effects of rising prices. Current Scenario : We are definitely in a high interest rates scenario , the world over inflation was never an issue in the developed world, which is an issue they are not able to deal with. Safe haven Economic Downturn This asset class serves as safe haven in case of economic downturn , It was observed that during the years of downturn Gold have performed exceptionally , the performance of gold during the years FY 2009, FY 2012 , FY 2016 and FY 2020 . The performance of Gold has been better than the volatile asset class like equity . What Do Experts Say ? According to Thedailygold.com, Gold in FY 26 might trade in the range of $5000
Gold has been a popular investment choice for centuries, offering potential diversification, inflation protection, and a safe haven during economic uncertainty. There are several ways to invest in gold, each with its own advantages and disadvantages. Asset Allocation: Gold as has been discussed was discussed as an asset class only after the 2008 recession, when for the first time it made sense in allocation. Any person investing in Gold should understand few things The maximum allocation of gold should be 10-15% Gold is to be used as a hedge not as a primary tool for wealth creation, that would always be equity. Gold bought for jewellery purposes is not considered as investment. How to invest in Gold ? Physical Gold : A person can buy coins, bars etc. Storage : You have to store the physical gold in a safe locker or place at home. Risk : Risk of theft and burglary. Cost : Cost of actual buying and additional cost if you are storing it in a safe place. Liquidity : High can be sold to the jeweller anytime. Sovereign Gold bonds: are government securities denominated in gold. They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds offer a unique opportunity to invest in gold without the physical risks associated with holding gold bullion with maturity of 7 years and cab be reddemed after 5 years. Get interest payment every year of 2.5% . Storage : No storage required . can be in demat or any other form Risk : No risk as backed by the government of India. Taxation : They were tax free on maturity. Liquidity : Bit low since it was not you cannot sell it to government but can trade online. But since last tranche in the month of february the government has not issued any bonds and it seem they won’t issue any more bonds in future( this is still not known) Gold ETF : is a gold exchange-traded fund (ETF) that tracks the price of domestic physical gold in India. It offers a convenient and efficient way to invest in gold without the need to purchase and store physical gold. Storage : The ETF is stored in dematerialised format so you do not have to worry on the storage of physical gold.You need a demat account Risk : Risk of burglary is zero. Cost : You have to bear the management expenses and brokerage fees. Also since it was bought on stock exchange so you have to look at the price you are buying. Liquidity : Highly liquid can be sold on stock exchange. Gold funds : Gold funds are mutual funds that invest primarily in gold or gold-related securities. Offer investors a convenient and diversified way to participate in the gold market without the need to purchase and store physical gold. Storage : The gold fund units are allocated to the person buying them , Demat account is not necessary . Risk : Risk of burglary is zero. Cost : The fund manager expenses are borne by the customer. Liquidity: Highly liquid as can be sold back to MF company. Taxation : Another important discussion is on the taxation . With the new tax regime in place the taxation has improved , and it makes a stronger case for you to invest in this asset class. Instrument Holding period Units acquired Prior to April 01,2023 Units acquired on of after April 01, 2023 Short- term Capital Gains Tax Long Term Capital Gain Tax Short-Term Capital Gains Tax Long- Term Capital Gains Tax Units Redeemed between July 23, 2024 and March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* Income’s Income Tax Slab rate* Gold FOF 24 Months Units redeemed after March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* 12.5%* Gold FOF 24 Months Source: India Budget. *Surcharge and Health & Education Cess as applicable. In view of the individual nature of the tax consequences, each investor is advised to consult his/ her own professional tax advisor. Top Fund list : How have the fund performed so far. 1 Year 3 Year 5 Year 10 Year Axis Gold Fund (G) 16.74 14.84 12.04 11.09 SBI Gold Fund Reg (G) 16.54 14.7 11.82 11.14 HDFC Gold Fund (G) 18.09 15.03 12.03 11.17 UTI Gold E T F FoF Reg (G) 16.41 0 0 0 Kotak Gold Fund (G) 16.14 14.16 11.45 11.04 we have considered SIP returns for this fund and looked at the top performing fund. We over the last few year the GOLD has given returns in comparison to the equity investment. Conclusion : To check weather, the gold investing make any sense to your diversification you can look at the asset allocation. Contact us to know what is that you need rather than just falling prey to wrong plans. You can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
What does Term insurance not mean or what it is not ? Cash Value: Unlike whole life or universal life insurance, term insurance doesn’t build cash value over time. This means you can’t borrow against the policy or receive a cash payout if you surrender it before the end of the term. Maturity Benefit: If you outlive the term of your insurance policy, you won’t receive a lump sum payment at the end. Term insurance is designed to provide coverage for a specific period, and there’s no payout if you don’t need it. Investment Returns: Term insurance isn’t an investment vehicle. While it provides protection, it doesn’t offer any potential for growth or returns. Guaranteed Premiums: While some term insurance policies offer level premiums, others may increase over time. This means your premiums could go up as you get older, even if you maintain good health. Real Life Scenario : What happens in real life scenario is people are mis selling or they themselves think since the money they have paid is not being return its not a good financial planning instrument. So two most common plans are sold in the market. Endowment plans Are a type of life insurance policy that combines life insurance coverage with an investment component. This means that in addition to providing a death benefit to your beneficiaries if you die during the policy term, endowment plans also offer a maturity benefit if you outlive the policy term and provides guaranteed returns ULIP ( Unit-Linked Insurance plans) is a type of life insurance plan that combines life insurance coverage with an investment component. They provide an opportunity to participate in the market or bonds. Unlike traditional endowment plans, ULIPs offer more flexibility and potential for higher returns. But the question is why mis-selling happens? Higher Commission: Your agent/ Bank gets a higher payout for selling. Guaranteed returns : It’s easier for agents to sell something with a guaranteed word , so they don’t have to spend a lot of time explaining Pressure : Banks sell these plans through their employees , they have a lot of pressure to sell. Is it that bad at all lets see this from the case of Endowment plans from real life scenarios Case Study : Customer who was looking to buy insurance cover was approached by bank to with the following two proposition instead of term plan The customer was pitched by his regular bankers to invest in this plan Called HDFC Sanchay plus ( this is not just limited to HDFC, it is all ICICI, LIC, Max etc. whatever policy you buy it would be the same.) His banker was really persistent on him to buy this plan that he used to call him daily , putting all tactics for him to purchase . After so many pressure calls he had almost given in when i got in discussion with him and showed him the reality. So let’s study the plan. HDFC Sanchay Plus Current age : 30 Years Policy term : 20 Years Premium payment term : 10 years Premium amount 1st year : Rs 5,22,500/- Premium 2 nd year onwards : Rs 5,11,250/- SI :Rs 64,37,500/- to Rs 1,27,58,919/- Policy Year Single/ Annualized Premium Guaranteed Non Guaranteed Survival Benefits / Loyalty Additions Other benefits (if any) Maturity Benefit Death Benefit Min Guaranteed Surrender Value Special Surrender Value 1 522500 0 0 0 64,37,500 0 0 2 511250 0 0 0 64,37,500 3,09,000 3,09,000 3 511250 0 0 0 64,37,500 5,40,750 5,40,750 4 511250 0 0 0 64,37,500 10,30,000 10,30,000 5 511250 0 0 0 64,37,500 12,87,500 6,83,148 6 511250 0 0 0 64,37,500 15,45,000 8,95,482 7 511250 0 0 0 64,37,500 18,02,500 11,41,343 8 511250 0 0 0 69,23,763 32,35,879 15,59,667 9 511250 0 0 0 74,10,026 37,68,008 20,82,332 10 511250 0 0 0 78,96,289 50,72,637 27,28,108 11 0 0 0 0 83,82,552 57,33,516 31,99,868 12 0 0 0 0 88,68,815 58,79,395 37,36,072 13 0 0 0 0 93,55,078 60,25,273 43,42,778 14 0 0 0 0 98,41,341 61,71,152 50,30,514 15 0 0 0 0 1,03,27,604 63,17,031 58,08,267 16 0 0 0 0 1,08,13,867 64,62,910 66,87,510 17 0 0 0 0 1,13,00,130 66,08,789 76,78,686 18 0 0 0 0 1,17,86,393 67,54,668 87,95,972 19 0 0 0 0 1,22,72,656 69,00,547 1,00,54,714 20 -11729523 0 0 11729523 1,27,58,919 70,46,426 1,14,71,419 Returns 5.78% The policy seemed so attractive that he would make Rs 1,17,29,523/- in 20 Years. but he forgot he had invested almost Rs 50,00,000/ and got just double the invested. A simple IRR calculation shows he would earn 5.78% IRR on this investment. Lower than your FD returns. We could argue that it was meant for protection but let’s see how much would he have paid if we just took SI of Rs 1,30,00,000/- from day one for 20 years , which in this case is applicable in 20 years. The same company offers us Term insurance plan for SI – Rs 1,30,00,000/- Payment Term : 10 Years Policy term 20 : 20 years. Premium : Rs 23,464/- And now the funny part if we take this Policy Year Single/ Annualized Premium Guaranteed Non Guaranteed Survival Benefits / Loyalty Additions Other benefits (if any) Maturity Benefit Death Benefit Min Guaranteed Surrender Value Special Surrender Value 1 499036 0 0 0 64,37,500 0 0 2 487786 0 0 0 64,37,500 3,09,000 3,09,000 3 487786 0 0 0 64,37,500 5,40,750 5,40,750 4 487786 0 0 0 64,37,500 10,30,000 10,30,000 5 487786 0 0 0 64,37,500 12,87,500 6,83,148 6 487786 0 0 0 64,37,500 15,45,000 8,95,482 7 487786 0 0 0 64,37,500 18,02,500 11,41,343 8 487786 0 0 0 69,23,763 32,35,879 15,59,667 9 487786 0 0 0 74,10,026 37,68,008 20,82,332 10 487786 0 0 0 78,96,289 50,72,637 27,28,108 11 0 0 0 0 83,82,552 57,33,516 31,99,868 12 0 0 0 0 88,68,815 58,79,395 37,36,072 13 0 0 0 0 93,55,078 60,25,273 43,42,778 14 0 0 0 0 98,41,341 61,71,152 50,30,514 15 0 0 0 0 1,03,27,604 63,17,031 58,08,267 16 0
Understand the Concept in simplest way  A term insurance/ Life Insurance is a type of insurance which provides for financial cover during a set period chosen by the life insured. Why do we need term insurance ? Term insurance is a crucial financial tool that offers a safety net for you and your loved ones. Here are some key reasons why you might need it: Protection for Dependents: If you have dependents, such as children or a spouse, term insurance can provide financial support in the event of your untimely death. The death benefit can help cover expenses like mortgage payments, education costs, and living expenses. Debt Coverage: If you have significant debt, such as a mortgage or student loans, term insurance can help your family repay those debts. This can prevent financial strain and ensure a more comfortable future. Financial Planning: Term insurance can be a valuable component of your overall financial plan. It can help you protect your assets and ensure that your loved ones are financially secure, regardless of unforeseen circumstances. Affordability: Term insurance is generally more affordable than other types of life insurance, making it a good option for those on a budget. Flexibility: Term insurance offers flexibility in terms of coverage and duration. You can choose a policy that meets your specific needs and adjust it as your circumstances change. What does Term insurance not mean or what it is not ? Cash Value: Unlike whole life or universal life insurance, term insurance doesn’t build cash value over time. This means you can’t borrow against the policy or receive a cash payout if you surrender it before the end of the term. Maturity Benefit: If you outlive the term of your insurance policy, you won’t receive a lump sum payment at the end. Term insurance is designed to provide coverage for a specific period, and there’s no payout if you don’t need it. Investment Returns: Term insurance isn’t an investment vehicle. While it provides protection, it doesn’t offer any potential for growth or returns. Guaranteed Premiums: While some term insurance policies offer level premiums, others may increase over time. This means your premiums could go up as you get older, even if you maintain good health. How to Know Your Sum Insured ? By annual income method: Determine your annual income: This includes your salary, bonuses, and any other sources of income. Choose a multiplier: The multiplier is a number that determines the amount of coverage you need. Common multipliers range from 5 to 10 times your annual income. A higher multiplier provides more coverage, but also increases the premium. Calculate the sum insured: Multiply your annual income by the chosen multiplier. Human Life Value (HLV) method is another popular approach to calculating the sum insured in term insurance. This method focuses on the financial value that an individual brings to their family through their income. How HLV works: Estimate your remaining working years: Determine the number of years you expect to work before retirement. Calculate your average annual income: Estimate your average annual income over your remaining working years, considering potential salary increases and promotions. Factor in inflation: Adjust your average annual income for inflation to account for the rising cost of living over time. Determine the discount rate: This is the rate at which future income is discounted to its present value. It’s typically based on the rate of return you could achieve on your investments. Calculate the present value of your future income: Multiply your adjusted average annual income by the present value factor, which is calculated using the discount rate and the number of remaining working years. Conclusion : To consult for the best plans and understand the requirement of Term plan needs you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
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 
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
The category of Large and Mid cap fund has been long in existence but as the mid cap were under performer for long duration this category did loose its steam and was out of flavour for long period. The Last few years growth in mid cap fuelled its growth. But he category had few leaders like Mirae asset large & Midcap fund and Kotak Equity opportunities fund which were found to be in lots of portfolio even now. Fund Name Year Of Inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Turn over Bandhan Core equity fund 2005 5 4,394.78 1.89 21.22 71% ICICI Pru large and midcap fund 1998 5 13,117.39 1.72 18.99 58% Quant large and midcap fund 2006 5 2,535.89 1.96 20.52 179% Motilal oswal large and Midcap equity fund 2019 4 4,036.22 1.86 36.02 69% HDFC large and midcap fund 1994 4 18,691.62 1.7 19.06 2% Kotak Equity opportunities fund 2004 3 21,495.8 1.62 21.52 16% SBI large and midcap fund 1993 3 22,689.5 1.65 22.99 52% Axis Growth Opportunities fund 2018 3 12,096.56 1.7 27.56 23% Canara Robeco emerging equities fund 2005 2 21,508.53 1.63 21.64 19% Mirae asset large & Midcap fund 2010 2 34,974.46 1.55 19.30 52% Bandhan Core equity fund : Bandhan core equity is a 5 star rated fund, it has kept a very high turnover ratio, fee is bit on higher side , it has decent PE as on date. ICICI Pru large and mid cap fund : ICICI Pru large and mid cap has a decent fund size, the expense ratio is also decent. Even the PE 18.99 shows the fund has wise stocks selection. Quant large and mid cap fund : Quant is the smallest fund in the list , so has the highest expense ratio, highest turnover which is normal for quant AMC. Decent PE of 20. Motilal oswal large and Midcap equity fund : Motilal Oswal large and midcap equity fund has small fund size , high expense ratio and turn over ratio , the fund seems the same as that of bandhan Core equity fund but the PE of 36.02 is very high. HDFC large and mid cap fund :One of the oldest funds, HDFC Large and Mid cap fund has decent fund size, The expense ratio is normal in line with the fund size. The fund has kept its turnover at just 2% and a great PE of 19%. Kotak Equity opportunities fund : Kotak Equity Opportunity fund is one of the biggest funds in the category. It used to be a favorite investment option a while back. Low expense ratio , low turnover and the PE seems in line with the category. But very low turnover in the stocks. The fund is 3 rated SBI large and mid cap fund : Another giant fund in the category with low expense ratio. The fund is Crisil rated 3 at the moment, Decent turnover ratio of 52% and low expense ratio.The PE of 23 is a bit on the high side.  Axis Growth Opportunities fund : Axis Growth opportunity fund 3 star rated fund with decent fund size , expense ratio is also decent, high PE is seems quite dangerous. Low turnover ratio. Canara Robeco emerging equities fund : Another Giant fund in the category is the Canara Robeco emerging equities fund, it is a 2 star rated fund. Expense ratio is Low. PE seems in line with the fund category. Turnover is low. Mirae asset large & Midcap fund : The Mirae asset Large & mid cap fund has been the biggest fund now earning a rating of 2 star. Lowest Expense ratio. Low PE and turnover is decent.  Trailing Returns : 1 year Trailing Return : Quant large and MidCap lead the category with 67.55% return, Second quartile with 54.86% of Bandhan Core Equity fund and Motilal Oswal large and Midcap fund 51.39%. Third quartile HDFC Large and mid cap fund , ICICI Pru Large & Mid Cap fund and Kotak Equity Opportunities fund Fourth quartile was the lowest star rated fund Canara Robeco Emerging Equities and Mirae Asset Large and Midcap fund. Last quartile for our discussion was taken by SBI large & MidCap fund and Axis growth Opportunities fund. 3 year Trailing Return : Quant Large & Midcap were the leader again in the category with 28% return. Second quartile range between 24-26% ICICI Pru Large & Midcap fund, Motilal Oswal Large & MidCap fund, HDFC Large & MidCap fund , Bandhan Core Equity fund Third Quartile was taken by SBI Large & Midcap fund and Kotak Equity Opportunities fund. Last in the category was the Axis growth Opportunities fund, Canara Robeco Emerging Equities and Mirae Asset Large & Midcap fund. 5 year Trailing Return : Quant Large & Midcap Was the leader in 5 years trailing return Next in Quartile for returns above to between 22-23% HDFC large & MidCap and ICICI Pru Large and Midcap 3rd quartile 21-22 % Kotak Equity Opportunities fund, Bandhan Core Equity fund, Axis growth Opportunities fund. 4th quartile of 20-21% SBI large & MidCap fund and Mirae Asset Large & Midcap fund Last were below 20% Canara Robeco Emerging Equities Motilal Oswal Large & MidCap fund was not launched 10 year Trailing Return : Top quartile is maintained by Quant Large & Midcap fund and Mirae Asset Large & Midcap fund. The 2nd quartile is Canara Robeco Emerging Equities and Kotak Equity Opportunities fund. 3rd quartile 15-17% SBI large & MidCap fund, Bandhan Core Equity fund, ICICI Pru Large & Mid Cap fund. 4th quartile HDFC Large & MidCap fund 14.46%. Motilal Oswal Large & MidCap fund and Axis growth Opportunities fund do not have that long history. General observation : This category has been very unique in the sense, if we look at the returns in the last 1 or 3 years, the returns are very divergent but the they tend converge in range