SBI small cap fund

18.75% returns (past 5Y) in SBI Small Cap Fund. Invest Now!

SBI Small Cap Fund – Direct Plan

★★★★★ (Morningstar Rating)

Ranked #1 in Small-Cap category by last 5Y returns

Return Capacity: High
Risk level: Moderately High
Category: Open-ended and Equity: Small Cap
Last 5 yr returns: 18.75% (as of August 22, 2019)
Minimum SIP Amount: Rs. 500

To boost total returns of your financial portfolios, our Registered Investment Advisor recommends you to take some risk by allocating at least 5-10% of the total portfolio in small-cap funds. SBI Bluechip Fund (rated 5 stars both from Morningstar & Value Research) is the perfect choice for the same.

  • Even though markets are down in past months (causing this fund’s benchmark, S&P BSE Small-Cap, to give 5.83% 5Y returns), SBI Small Cap Fund has yielded excellent CAGR of 18.75% (past 5Y), which is 12.92% more than the returns of its benchmark.
  • To reduce the risk that comes with equity exposure, the fund is well-diversified between small-/mid-/large-cap stocks (out of it’s 88.16% investment in Indian stocks, 3.09%/14.55%/67.67% is in large-/mid-/small-cap stocks respectively.
  • Fund manager’s insistence on diligence and long enough time perspectives have helped the fund in delivering consistently high returns with this fund when compared with other funds in the small-cap category.
top funds

पिछले 5 सालों मे 18% से ज़्यादा रिटर्न देने वाले 2019 के टॉप 3 म्युचुअल फंड

“रिटर्न कितना मिलेगा?”

क्या आप भी अपने फाइनेंसियल एडवाइजर या बैंक मैनेजर से यही सवाल पूछते हैं, जब भी वह कोई नया इन्वेस्टमेंट प्लान लेके आपके पास आता हैं ? क्या आप सर्वाधिक रिटर्न देने वाले म्यूच्यूअल फंड्स नहीं पता होने की वज़ह से अपने म्यूच्यूअल फंड के निवेश को टाल रहे हैं? यदि हाँ, तो आप सही जगह पर आ गए हैं |

मायवे वेल्थ की अनुसंधान प्रणाली (जो की उन्नत वित्तीय मॉडल्स और बाजार के पुराने आंकड़ों का उपयोग करके बनी हैं ) के अनुसार 2019 के टॉप 3 म्यूच्यूअल फंड्स (पिछले 1-5 साल के रिटर्न्स के हिसाब से) इस प्रकार हैं :

फण्ड का नामरिटर्न्स और किन निवेशकों के लिए उपयुक्त
एसबीआई स्मॉल कैप फंड (ग्रोथ/डायरेक्ट)

SBI Small Cap Fund

★★★★★
+20.32% (पिछले 5 साल का औसत सालाना रिटर्न)

स्मॉल कैप फंड, ज़्यादा रिस्क लेने की क्षमता रखने वाले निवेशकों के लिए उपयुक्त

निवेश की उचित अवधि: कम से कम 5 वर्ष
मिरै असेट इमर्जिंग ब्लू चिप फण्ड (ग्रोथ/डायरेक्ट)

Mirae Asset Emerging Bluechip Fund

★★★★★
+19.13% (पिछले 5 साल का औसत सालाना रिटर्न)

मध्यम रिस्क लेने के इक्छुक निवेशकों के लिऐ मल्टी कैप फण्ड

निवेश की उचित अवधि: कम से कम 3-5 वर्ष
आईडीएफसी गवर्नमेंट सिक्युरिटीज - कांस्टेंट मेचुरीटी फण्ड (ग्रोथ/डायरेक्ट)

IDFC Government Securities Fund-Constant Maturity

★★★★★
+20.71% (पिछले 1 साल का औसत सालाना रिटर्न)

कम रिस्क लेने के इक्छुक निवेशकों के लिए गिल्ट (डेब्ट) फंड

निवेश की उचित अवधि: कम से कम 1-3 वर्ष

क्या आपने ध्यान दिया की यह तीनो फंड्स पिछले 1-5 सालों मे फिक्स्ड डिपाजिट (एफ डी) से दोगुना से भी ज़्यादा रिटर्न्स दे चुके हैं?
दूसरे शब्दों मे, यदि आपने 5 साल पहले इन 3 फंड्स में से किसी एक फण्ड में महज 5000 रुपये की एसआईपी (SIP) चालू करी होती, तो सिर्फ 3 लाख रुपये की जमा राशि के बदले आपको 4.88 लाख रुपये का रिटर्न मिलता (18% के औसत सालाना रिटर्न के हिसाब से), मतलब आपको पूरे 1.88 लाख रुपयों का फ़ायदा होता |

19.10% returns (past 5Y) in Mirae Emerging Bluechip Fund. Invest Now!

Mirae Asset Emerging Bluechip Fund- Direct Plan

★★★★★
Morning Star Rating as on July 31, 2019

Category: Open-ended and Equity: Large & MidCap
Risk level: Moderately High
Return Capacity: High
Last 5 yr return: +19.10% (as of August 19, 2019)
Fund Manager: Neelesh Surana (since Jan’13) and Ankit Jain (since Jan’19)

  • Mirae Asset Emerging Bluechip Fund has yielded 19.10% CAGR (past 5Y), which is 8.68% more than the return of its benchmark Nifty Midcap 100 index in the same 5Y duration (at 10.42%).
  • It maintains a diversified portfolio by investing 52.34% is in large-cap stocks, 34.51% in mid-cap stocks, and 12.79% in small-cap stocks.
  • Suitable for investors with moderately high-risk appetite (due to mid/small-cap exposure of this fund).
  • Recommended investment tenure: Minimum 5 years.
  • According to the fund manager Neelesh Surana, disciplined approach, focus on quality along with diversification has helped them in maintaining standards with this fund.

 

loan default

What happens when a borrower fails to repay a loan?

There are critically two significant consequences of failing to repay your debt.
The first one is that your credit score will take a beat. All credit-related information of the owner and credit card user is sent to CIBIL and other credit rating agencies. They would know your credit history from head to toe. We all know that every loan nowadays is been approved based on the credit history of the borrower. While if you are defaulting your payments, your credit score will take a hit. And this will make it difficult for you in the future if you would want to apply for a loan again.

Second, the lender can auction the property which was used as collateral for the loan after following the due legal process.
The bank will send first notice to the borrower mentioning the due amount with interest. If the bank realizes that the customer is willingly delaying the repayment, then it could lead to legal proceedings. The follow up from the bank will start soon as a single repayment is missed. The legal procedures will not emerge when the customer is willing to repay the amount after a break. (Sometimes there are situations like death, illness, or accidents that can cause a break in the repayment of the loan amount. So, in this case, banks will give holidays to the customer or his family. Also, as per the guidelines of the Reserve Bank of India, banks should provide time to the customers to pay the loan amount. And should not use their muscle power to recover the loan amount.)

(more…)

Raksha-Bandhan

Celebrate this Raksha-Bandhan with Digital Gold

Health-Insurance

Reasons to buy a Health Insurance

“The task we set for ourselves is not to feel secure but to be able to tolerate insecurity.”
-Erich Fromm.

Health insurance is essential for every individual. A medical emergency can devastate anyone, anytime and impact an individual emotionally and financially. It is advisable if you to buy a health plan early in life. Here are the top reasons to convince you to purchase health insurance:

1. Start early

The health insurance premium is highly dependent on age, and there is a pitch in the premium slab post 30. For instance, if you purchase a health plan of Rs. 5 Lakh at the age of 25 years, then you need to pay a premium of Rs. 5000 but the same policy would cost you more at the age of 35, even with a change in your health indicators. Hence, buy a policy as early as possible to pay a lower premium.

2. Incidence of illnesses have increased

You don’t have to be 60 to buy health insurance. Inactive lifestyle has increased the occurrence of lifestyle disorders involving heart, cancer, lung conditions and stroke, stress-related hypertension is affecting young corporates who have no idea how unhealthy they are until something severe happens, and they wake up to reality. Moreover, health insurance policies offer annual health checks ups to encourage health awareness. Also, preventive services include counseling, screenings, and vaccines that help you to manage your health better.

(more…)

rebalancing

Rebalancing your portfolio

Before understanding this topic, let’s know what to do with a money box. In simple terms, fill it, shut it, forget it’ once in a year. Your situation may change, or the products may get worse or better, but one should clean their money box once in a year.

What is portfolio rebalancing?

Rebalancing is the process by which an investor restores their portfolio to its target allocation. The rebalancing process is reinvesting the profits taken from some of the outperforming investments and putting them in underperforming assets. Rebalancing brings your portfolio back to the desired asset mix.

Why is rebalancing important for an individual person who has invested?

(more…)

Save Tax and Grow Wealth with ELSS

ELSS

Those who pay the taxes will be familiar with this product called Equity-Linked saving schemes. If you are the person who is looking to save and invest to save the tax, ELSS could turn out to the best rewarding investment option. The ELSS funds have been superior to the other tax saving investment options.

If you invest in certain products like premium of life insurance policy, Public Provident Funds or units of an ELSS scheme, you can get a tax deduction on your taxable income. Thus, ELSS is a type of Mutual Fund which has a lock-in period of 3 years along with the tax exemption under section 80C of the Income Tax Act.

How is ELSS better than other tax saving instruments?

Here is a comparison of ELSS with other tax saving investments options.

  • Lock-in period: ELSS has a minimum lock-in period of 3 years when compared with the other tax saving instruments.
Instruments Lock-in period
ELSS 3 years
FD 5 years
NSC 5 years
PPF 15 years
NPS Till retirement

 

  • Returns: ELSS have the potential to generate good returns when compared with other instruments.
Instruments Returns earned
ELSS 15-18%
FD 6-8%
NSC 7-10%
PPF 8-10%
NPS 9-11%

 

  • Taxation: Like all other tax saving instruments, the amount invested in ELSS is tax deductible under section 80C of the Income Tax Act and allows a maximum deduction of Rs 1,50,000. Unlike other tax saving instruments, the returns generated through investment in ELSS and NPS are partially taxable and are not fully taxable. Capital gains on ELSS up to 1 lakh is exempted from tax.
  • SIP option: In a few tax saving instruments like FD and NSC, only a lump sum amount is acceptable. Whereas you can invest in ELSS through SIP(Systematic Investment Plan) which allows you to deposit a small amount at regular intervals (weekly, monthly, quarterly, yearly) which can be as low as Rs 500.
  • Risk: ELSS will involve a higher amount of risk when compared with the other instruments because they are Equities are subjected to market fluctuations.

Screen_Shots

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Now that you know ELSS is better than other tax saving instruments and start investing through MyWay Wealth.

Expose your money to Equity!

Equity investment earns you the best returns when compared with the other investment options. Now, let’s understand the true nature of all the investment options.

Investment options Initial investment Finally earned

(principle+returns)

Fixed deposit 1 lakh 19.35 lakhs
Gold 1 lakh 16.10 lakhs
Public Provident Fund 1 lakh 32.78 lakhs
Equity 1 lakh 2.3 crores

 *A period of investment is considered as 30 years for all the investment options.

Then what are these Equities?

Equities are the stocks/ shares that are listed in the stock exchanges which are traded at the market price. You can invest in Equities in two ways:

  1. Direct investing in Equities-You will directly purchase stocks of listed companies through a demat account.
  2. Investing in Equities through mutual funds.

Why one should not buy Equities directly?

Think, how do you know which companies equities to buy?

Because, if you are new to investing, then opting for the wrong equities will cost your money and peace of mind. When you decide to buy equities through mutual funds, you outsource your decision to the Stock Experts. As an investor, one only needs to invest the desired amount and become a part of the fund holdings, and the professional managers will do this job.

Key advantages of investing in Equities through mutual funds:

  • They are professionally managed by expert professionals spend quality time in researching about the future performance of companies.
  • You get an exposure to various stocks when you are invested in an equity mutual fund scheme
  • They offer you an opportunity to redeem your investments at any time (Except for Equity Linked Saving Schemes-‘ELSS’ which has a lock-in period of 3 years).
  • Equity mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP).

How to invest in equity mutual funds through?

You can start investing in Equities Mutual funds through MyWay Wealth. MyWay Wealth provides you smart recommendations to build your wealth scientifically and financially.

MyWay Screen shot

Thus, be smart in choosing your investment option. Always opt for investment that matches your financial goals and risk appetite, choose the scheme that matches your profile. Equities will end dependency on gold, real estate, and FDs.

It is not market timing but time in the market that matters!

Equity Mutual Funds

Equity funds

Equity is the best asset class among the Mutual funds which offer higher returns of different market caps (large, medium and small caps). Equity funds buy the stock of companies listed in the stock market and offer a variety of equities with greater flexibility.

Why not buy Stocks Directly?

This is the next question that hit a mind when you speak on “Equity funds”. Firstly, think about how you would know which stock to buy? Because, if you are new to investing, then opting for the wrong stock will cost your money and peace of mind. When you decide to buy a mutual fund, you outsource your decision to the Stock Experts.

There is “Fund House” where a team of specialists and analysts track the companies, markets, politics and interest rates to predict the future of stocks. Based on their reports, AMC (Asset Management Company) will help you to build your portfolio on stocks.
You can invest in equity mutual funds through a direct plan. Every mutual fund investment you make will have two variant- direct plan and regular plan. While Regular Plan bears a commission and direct plans are absolutely commission free. Hence, you get more returns on your investment with a direct plan.
You can invest in MyWay Wealth- Direct Plan Mutual Funds where it provides you an advantage of Zero Commission and Zero Fees.

Who needs to invest in Equity funds?

Your decision on investing Equities will depend on the factors like risk-bearing capacity, investment horizons, return expectation.
Suppose you want to make an investment for a period of 5 years or more, then you can buy Large-cap equity funds because your returns do not fluctuate more and it best suits for the investors who are risk-averse.
If you are willing to take a greater risk than as compared to large cap, you may invest in mid/small caps.

Things you need to consider as an investor before investing in Equities:

  • Objective: Be sure about your objective, decide whether your objective is income generation or wealth creation. Income generation is required for a near-term goal and you will stay invested in fixed-rate products.
    For wealth creation, you have to hold assets for a long period and wealth creation depends on the quality of asset and price others willing to pay.
    Fund type: There are a variety of classes in Equity (small-cap, mid-cap, and large-cap). Each class has a different level of risk and returns associated.
  • Cost: Your Equity fund charges an expense ratio to manage your funds. SEBI has set up an upper limit of expense ratio as 1.05%.
    Financial goal: You’re establishing these funds because to meet your future goals. Your goals can earn higher returns, early retirement planning. Children marriage, etc.

How do you Evaluate Equity funds?

Based on certain parameters, you will evaluate the Equity funds:

  • Fund performance based on return on investment which is considered as an important parameter for the selection of funds.
  • The fund you select should have a clean and long history of 5 years because to ensure that the fund has seen all the market cycles and,
  • The risk-return ratio becomes an important factor to select the fund and “Sharpe Ratio”, the higher the ratio, the better the risk-adjusted returns for that funds.
    (Sharpe Ratio: how much excess returns you can receive for bearing extra risk)

MyWay Wealth

You can invest in hand-picked funds through MyWay Wealth which is India’s most trusted Mutual fund app. However, remember to choose the right investment option that is based on your risk appetite and investment goal.

It’s never too late to make the right choice!