Top-5 Equity Mutual Funds
Even as the Sensex has shown a positive growth of 8.62 per cent in the past one year beating inflation comfortably, some of the equity mutual fund schemes have given as high as 35 per cent during the period. These mutual funds were in the category of ‘High Risk' and ‘Very High Risk' under the ‘Direct Growth' plans.
Quant Small Cap Fund Direct Plan Growth has given a growth of 37.74 per cent in the past one year since August 17, 2022, till today (August 17, 2023). Its net asset value (NAV) a year ago was Rs 136.34, which has increased to Rs 186.49 now. The equity mutual fund's size is Rs 6,779.64 crore. The minimum SIP amount is Rs 1,000 per month for this scheme.
ICICI Prudential Commodities Fund Direct Growth has provided a 20.58 per cent return in the past one year since August 17, 2022. Its NAV a year ago was Rs 26.07, which has increased to Rs 31.29. The equity mutual fund's size is Rs 1,079.22 crore. The minimum SIP amount required is Rs 100.
Nippon India Small Cap Fund Direct Growth has given a 33.43 per cent return in the past one year. Its NAV a year ago stood at Rs 42.13, which has now jumped to 127.63 as of August 17, 2023. Its equity mutual fund's size is Rs 34,468.92 crore. The minimum SIP amount required was Rs 100.
Axis Small Cap Fund Direct Growth has given a 20.36 per cent in the past one year. Its NAV a year ago had stood at Rs 83.60. Its fund size was Rs 15,025 crore. The minimum SIP amount is Rs 100.
HDFC Small Cap Fund Direct Growth has provided 37.63 per cent return in the past one year. Its NAV a year ago had stood at Rs 39.43, which has now surged to Rs 111.32. Its fund size is Rs 21,066 crore. Its minimum SIP amount is Rs 100.
Market experts said the mutual funds are subject to market risks and these funds are under ‘very high risk' and ‘high risk' category. “Investors should assess their risk-taking capacity and financial goals before deciding on their investment strategies."
Mutual Funds Are Trending
A mutual fund is a type of investment vehicle that pools money from multiple investors and uses that money to purchase a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional investment managers or fund managers. Mutual funds are a popular way for individuals to invest in a diversified portfolio of assets without directly buying and managing individual securities.
Also Read: Investing SOS: Missed Mutual Fund SIP? Must Read What Happens After That
Who Manages Mutual Funds?
Mutual fund investments in India are managed by Asset Management Companies (AMCs). AMCs are financial institutions that are licensed by the Securities and Exchange Board of India (SEBI) to raise money from investors and invest it in securities such as stocks, bonds, and money market instruments.
SEBI is the regulatory body that oversees and regulates the securities and capital markets in the country.
Investors in mutual funds entrust their money to these AMCs, which in turn manage the investments on their behalf. The AMC charges a fee, known as an expense ratio, for managing the fund, and this fee is deducted from the fund's assets.
The AMCs create and manage mutual fund schemes on behalf of investors. Each mutual fund scheme is typically structured around a specific investment objective, such as equity, debt, hybrid, or thematic funds, and they are managed by professional fund managers employed by the AMC.
Who Handles Mutual Funds In AMCs?
AMCs in India typically have a team of fund managers who manage mutual fund investments on behalf of investors. The fund managers make investment decisions for the various mutual fund schemes offered by the AMC. The role of the fund manager is crucial in determining the performance of the mutual fund schemes.
Fund managers in AMCs are experienced professionals with expertise in specific asset classes. They conduct research, analyse market conditions, and select appropriate securities to achieve the investment objectives and strategies of each mutual fund scheme.
Investors & Fund Managers
Investors rely on the expertise and decision-making skills of the fund managers when they invest in mutual funds. The performance of the fund manager and their ability to generate returns in line with the fund's stated objectives are important factors that influence investors' choices.
It's important to note that the specific fund manager(s) responsible for a mutual fund scheme may change over time. Investors should review the fund manager's track record and the fund's historical performance before making investment decisions.
It's important for investors to research and choose mutual funds managed by reputable AMCs with a track record of performance and adherence to regulatory guidelines. Additionally, they should consider their own financial goals and risk tolerance when selecting mutual funds to invest in.
Readers must note that mutual fund investments are subject to market risks and they must read the scheme information document and statement of additional information carefully before investing. These documents provide detailed information about the mutual fund scheme, including its objectives, strategies, fees, and other important terms and conditions.
This Mutual Fund Claims It Converted A Rs 10
Investing in the stock market can be quite daunting and stressful sometimes but investing in mutual funds can be a stress-free way. With a proven track record, mutual funds are much safer options that offer an exciting opportunity for investors. While the returns may not be as high as directly investing money in stocks, mutual funds have the potential to turn small investments into a large corpus over a long period of time.
One such fund namely Aditya Birla Sun Life India GenNext Fund has claimed that it has converted a SIP of Rs 10,000 into a whopping amount of Rs 1.1 crore. Yes, you heard that right. Starting in August 2005, the Compound Annual Growth Rate (CAGR) of this company has been 16.20 per cent. The company is claiming an offer that if someone invested a lumpsum of Rs 10,000 in it in 2005, today that amount would have become Rs 1.55 lakh. Furthermore, the company added that if Rs 10,000 had been added to its fund every month since then, the amount would have been Rs 1.1 crore as against an investment of Rs 21.50 lakh.
Aditya Birla Sun Life India GenNext Fund is an open-ended equity scheme following a contrarian investment strategy. The Net Asset Value (NAV) of the fund as of August 02, 2023, is Rs 159.60 for the growth option of its regular plan. It's important to note that the fund's asset under management (AUM) was valued at Rs 3,855.80 crore as of June 30. This scheme focuses on investing money in those stocks/companies whose target audience is youth.
Other than that, the portfolio includes ITC, Hindustan Unilever, ICICI Bank, HDFC Bank, Axis Bank, Bharti Airtel, Maruti Suzuki India, United Spirits, Nestle India and Tata Motors. However, the largest portion of its portfolio is in ITC at 6.88 per cent.
Experienced professionals Chanchal Khandelwal and Dhawal Joshi manage the Aditya Birla Sun Life India GenNext Fund. It is interesting to note that Chanchal Khandelwal has been a part of the Aditya Birla Group for the last 15 years, while Joshi brings 15 years of equity research and investment. Moreover, before joining the Aditya Birla Group, Dhawal Joshi worked with Sundaram Mutual Fund.
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5 SIP Mistakes You Must Avoid In Mutual Funds Investment Published 2 hours ago
Systematic Investment Plan (SIP) is a popular investment method where individuals invest a fixed amount regularly in mutual funds over a period of time. While SIPs can be a great way to build wealth over the long term, there are several mistakes that investors should avoid to ensure optimal results. Before you invest in a SIP, make sure you understand the fund's investment objective, risk profile, and fees.
Also Read: Investing SOS: Missed Mutual Fund SIP? Must Read What Happens After That
Here are some SIP mistakes to avoid;
Remember that investing in mutual funds, including through SIPs, carries inherent risks, and past performance is not indicative of future results. It's a good idea to consult with a financial advisor to create a well-rounded investment strategy that aligns with your individual financial goals, risk tolerance, and time horizon.
Zerodha Gets Final Approval For Mutual Fund Business
Online brokerage Zerodha has got the final approval for its mutual fund business, Zerodha Fund House, which will be established in partnership with Small Case, said Zerodha founder and CEO Nithin Kamath. Industry veteran Vishal Jain will be the new CEO of the AMC business.
In April, both Zerodha and Smallcase announced that they would set up a joint venture to launch the Zerodha AMC business.
“We just received the final approval for the @ZerodhaAMC we are building in partnership with @smallcaseHQ," said Kamath on Friday evening on the X platform, formerly known as Twitter.
He said his motivation to start a mutual fund was twofold. The first was that the biggest challenge and opportunity for Indian markets is the shallow participation. He said that even after all the growth over the past three years, there are maybe 6-8 crore unique mutual fund and equity investors put together.
“The second was that if we had to bring in the next 10 million investors, they needed simple products they could understand, and mutual funds were a perfect instrument. We aim to be index-only and create simple funds and ETFs that all investors can understand and invest in for all their goals," Nithin Kamath said.
Vishal Jain, who has been part of the entire passive investing journey in India from Day 1, has joined us as a chief executive officer (CEO) to build the asset management company (AMC). “So yeah, keep an eye out for our first NFO (new fund offer)," Kamath said.
On Thursday, Helios Capital also received Sebi's approval to launch a mutual fund business. Old Bridge Capital Management Pvt Ltd is awaiting Sebi's final nod for a mutual fund licence. Besides, applications of three companies — Unifi Capital Pvt Ltd, Alpha Alternatives Fund Advisors LLP and Wizemarkets Analytics Pvt Ltd — are under the regulator's consideration as of June 2023, data with Sebi showed.
The Securities and Exchange Board of India (SEBI) had given in-principle approval to Zerodha in 2021 for its mutual fund application.
Sequoia-backed smallcase offers people a chance to invest in the stock market through portfolios of stocks or exchange-traded funds (ETFs). The company had earlier collaborated with Zerodha for thematic investment in 2016. The thematic investments included portfolios holding between 10-20 stocks. The themes were based on long term trends, policy reforms by the government, sectoral shifts, technology, demographics and culture.
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