Here is our recommendation list of aggressive hybrid mutual fund schemes in the new year. We are continuing with our 2019 recommendations this year, as all the schemes in the list are performing well. The three aggressive hybrid mutual fund schemes that were on the list managed to retain their slots. As per Sebi norms, aggressive hybrid schemes have a mandate to invest 65-80% of their corpus in equity and 20-35% of the corpus in debt. These schemes are considered as equity mutual fund schemes for the purpose of taxation. That means, investments held in aggressive hybrid mutual funds for more than a year qualify for long-term capital gains tax of 10% on long-term gains of over Rs 1 lakh in a financial year. For newcomers, do not take the term 'aggressive' literally. Ironically, these aggressive schemes are considered ideal for `conservative' equity investors and new equity investors. However, a word of caution: there is a lot of difference between `conservative equity investors' and … [Read more...] about Best aggressive hybrid mutual funds to invest in 2020
The biggest advantage is, it gives the investor an opportunity to invest in different schemes managed by different fund managers. At times, this approach may work better since different fund managers might have have different expertise in terms of investing in large-caps, small-caps or mid-caps. With a single FoF, the investor will be able to benefit from the diverse investment approach. While most MF houses invest in their own schemes through an FoF, there are some that also invest in other fund houses’ schemes thereby offering more diversity. For instance, the FoF scheme of Quantum Mutual Fund invests in schemes managed by Kotak MF, ICICI Prudential MF and Aditya Birla Sun Life MF. … [Read more...] about Diversifying risk with Fund of Funds
Several mutual fund houses have filed draft papers for their upcoming index funds and ETFs. AMC s like Mirae Asset and ICICI Prudential Mutual Fund have recently launched two passive funds: Mirae Asset Nifty Next 50 Fund and ICICI Prudential Midcap 150 ETF. AMCs like Nippon, ICICI Prudential, UTI, L&T, JM and IDFC are in queue to launch passive schemes ranging from bank ETFs and IT ETFs to mid and small cap index funds. At least 10 passive funds are in line to get Sebi’s approval. However, mutual fund advisors believe that this rush doesn’t mean passive funds have taken over the active management. “We believe that the good performance of large cap passive schemes in the past two years has paved way for all the AMCs to launch passive schemes in all segments to complete their bouquet of offerings. The sudden rise in new passive funds doesn’t make them more suitable for retain investors in this market,” says Vishal Dhawan, Founder, Plan Ahead Wealth … [Read more...] about Mutual fund houses are busy lining up index funds. Should you invest?
I have been investing in the Aditya Birla Sun Life Equity Fund via SIP for the past one year. The scheme has given negative returns. I am considering switching the SIP to Kotak Standard Multicap Fund, given its better performance, slightly lower expense ratio, and lower exposure to small caps. Should I switch to Kotak Standard Multicap Fund? Or should I consider any other mutual fund in this category? I am already investing in Axis Bluechip Fund, so I want to avoid Axis Multicap Fund. --Rohan JainChokkalingam Palaniappan, Director, Prakala Wealth Management, responds: The Kotak Standard Multicap Fund has performed better than ABSL Equity Fund in the past. However, ABSL Equity Fund is also a decent peformer. Since you have recently started the SIP, it is better to continue with the fund. Give it some more time and then take a call. You have to live with a fund for at least one full cycle to reap the benefits of a fund manager’s actions. Small and mid cap stocks in a fund brings … [Read more...] about Should I switch to Kotak Standard Multicap Fund?
I have been investing Rs 1 lakh every year in ICICI Prudential Bluechip Fund for the last two years. Its current value is Rs 1.73 lakh. Should I continue to invest? --Amit KushwahaPrableen Bajpai, founder & managing partner, Finfix Research & Analytics, responds: You have not mentioned why you have invested in the scheme, your other financial goals and risk profile. An investment should be linked to a financial goal, like buying a car, retirement corpus, or children’s education. It can also be wealth creation or any other goal. It will help you to define the time you have in hand to achieve your goals. If you do not have any specific goals or investment horizon, you should invest in equity schemes only if you are ready to stay invested for five to seven years. If you can hold your money for five to seven years, you should continue with your investment. You can even top-up your investment. However, instead of parking your money at one-go every year, I would ask you to … [Read more...] about Should I continue to invest in ICICI Prudential Bluechip Fund?