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.

 

top funds

Wondering where to invest? Top 3 funds in 2019 with >18% past returns

“Return Kitna Milega?”

How much returns will I get? Is this the first question that you ask your relationship manager at a bank or your financial advisor? Are you postponing your mutual fund investments due to lack of a ready-made list of highest return yielding funds? If so, you have arrived at the right place.

MyWay Wealth’s research methodology is powered by proprietary scientific-financial models & historical market data while ensuring an excellent track record not just in past 3-5 years but also in both bull & bear markets. These are the top 3 mutual funds (for three different risk appetites: high, medium, low) based on past performance, that yield more than 18% returns:

Fund name & ReturnsIdeal audience
SBI Small Cap Fund (Gr/Dir)
★★★★★

+20.32% (Past 5Y Returns)
Small-cap fund for investors who expect more returns at a higher risk.

Recommended investment duration: minimum 5 years.
Mirae Asset Emerging Bluechip Fund (Gr/Dir)
★★★★★

+19.13% (Past 5Y Returns)
Multi-cap fund (invests in small+mid+large cap companies) for investors with moderate risk appetite.

Recommended investment duration: minimum 3-5 years.
IDFC Government Securities Fund-Constant Maturity (Gr/Dir)
★★★★★

+20.71% (Past 1Y Returns)
Gilt (debt) fund for investors with low risk appetite.

Recommended investment duration: minimum 1 year.

As an example, if you started a SIP of just Rs. 5000 in any of these 3 recommended funds 5 years ago, then today your corpus would be worth Rs. 4.88 lakhs (for a total SIP deposit of just Rs. 3 lakhs). That’s Rs. 1.88 lakhs in returns in 5 years!

Raksha-Bandhan

Celebrate this Raksha-Bandhan with Digital Gold

Direct vs Regular

Earn upto 1.5% more returns with Direct Plans, find out how!

Do you search for online restaurants that offer home delivery at zero charges? Even Direct Plans of Mutual Funds charge 0% commissions.

Every mutual fund has 2 variants: Direct and Regular Plans:

  • In Regular Plans, mutual fund intermediaries charge 0.5-1.5% as commissions or distribution fee.
  • On the other hand, Direct Plans eliminates the brokers/intermediaries and thus charge zero commissions. Instead, this is reflected back in your portfolio in the form of 0.5-1.5% additional returns.

Let’s have a look at the returns from a one-time lump sum investment of Rs. 2 lakhs in Direct and Regular plans for 20 years:

Direct vs Regular example

Assuming a Regular plan of a specific mutual fund with ~15% returns, we will get upto 9.6 lakhs extra returns in the Direct Plans of the same fund (thanks to additional 0.5-1.5% returns combined with compounding effects in the long-term).

Start your investment journey with “Build Wealth”:

“Build Wealth” feature on MyWay Wealth is powered by proprietary Smart Recommendation Engine (backed by robust research methodology, scientific-financial models & historical market data). This engine recommends funds specifically for your personal financial goals and risk appetite while ensuring that the recommended funds have an excellent track record (for past 3-5 years as well as in both bull & bear markets).

Check out the funds recommended by Smart Recommendation Engine:

Top Rated Mutual Funds

Here is a list of top-rated Mutual Funds that yield >18% returns and are rated 5 stars by Morningstar
<img class=”alignnone size-medium wp-image-4839″ src=”http://mywaywealth.com/wp-content/uploads/2019/01/Flat-Design-Character-business-woman-300×150.gif” alt=”” width=”300″ height=”150″ />
Here is a list of top-rated Mutual Funds that yield &gt;18% returns and are rated 5 stars by Morningstar

CategoryFund detailsReturns (CAGR)Intended for investors with
Small/ Mid-CapSBI Small Cap Fund Direct Plan-Growth
★★★★★
+19.97%- Higher risk appetite and can stay invested for 5 years and
- Wants to invest in small/medium-sized companies.

Invest

Multi-Cap Mirae Asset Emerging Bluechip Fund- Direct Plan-Growth
★★★★★
+19.45%- Moderate risk appetite and can stay invested for 5 years and
- Wants a diversified portfolio by investing in small, medium and large-sized companies

Gilt Medium & Long Term IDFC Government Securities Fund- Investment Plan- Direct Plan Growth
★★★★★
+18.07%- Lower risk appetite and can stay invested for a short period i.e., 1-3 years
- These funds provide returns twice more than a Fixed Deposit can offer you within a one year tenure

What are you waiting for?

save tax

Find out the secret to save tax

There are various reasons why people invest their money. Some invest to earn returns for their Children’s education/ marriage, some to buy a house or vehicle and some invest to save for their retirement. Now amongst these are people who want to invest so that they can “Save Tax”. Various investment options are available to save tax such as Public Provident Fund (PPF), Employees’ Provident Fund (EPF), Sukanya Samriddhi Yojana (SSY), and so forth. However, amongst these, one of the most recommended and promising options is Equity Linked Savings Schemes (ELSS).

What are ELSS Funds?

The only mutual fund eligible under 80C deductions is Equity Linked Savings Schemes, commonly known as ELSS. It falls under the category of equity mutual funds and invests at least 80% of its total assets in equity and equity-related instruments. It is one of the best schemes that offer tax benefits. Let’s find out!

Why is ELSS better?

1. Tax Benefits

  • Under the Section 80C of the Income Tax Act, ELSS funds are eligible for tax exemption up to a maximum of Rs. 1,50,000.
  • Tax-free returns on long term capital gains (LTCG) up to Rs. 1 lakh. ( 10% tax on returns > Rs. 1 lakh).

2. Better Returns

ELSS Funds not only provide tax advantage but also try and generate higher returns, anywhere between 15%-17%, because they leverage the benefit of equity markets. These are also safe for investors rather than investing directly in the stock market. So if you are wondering how to have equity exposure for your investments, it’s simple, opt for ELSS funds. However, remember to remain invested for a long period (over and above five years) that’s the secret of getting high returns with equity funds.

3. Less Risky

ELSS Funds are safe for investors than investing directly in the stock market. Also, the fund managers make sure to choose securities of companies which have a high growth prospect. However, remember to remain invested for a long period (over and above five years) that’s the secret of getting high returns with equity funds.

4. Lock-in Period

ProductsReturnsLock-in Period
ELSS Mutual Funds~15%-16%3 years
Bank Tax Saving FD7%-8%5 years
National Saving Certificate8%5 years
Insurance Policy4%-5%10 years
Public Provident Fund8%15 years

The above table clearly shows that amongst the tax saving products (under Section 80C), ELSS has the shortest lock-in period after which you can redeem or reinvest. However, since ELSS is equity-linked, investors who have long term goals and are willing to remain invested are likely to benefit the most from ELSS funds.

5. Flexibility

Most of the tax saving instruments say for example tax saving FDs accept only lump sum deposits/ one-time investment. However, ELSS funds give you the flexibility to choose One-time or Systematic Investment Plans. For investors who want to cultivate the habit of regular investments and are comfortable to deposit small amounts, ELSS funds are the best option. All that you need is an investment as low as Rs. 500 and you can start SIPs with ELSS Funds.

So if you are wondering how to:

  • Have equity exposure for your investments
  • Save a substantial amount of salary from taxes
  • And get high returns for your long term financial goals, then

  it’s simple, opt for ELSS Funds!

Retirement

Are you ready to retire?

At a point when individuals retire, they will either receive no salary or encounter a decrease in it. Without accurate planning, you might have to alter your lifestyle. In fact, it’s difficult to compromise on your comforts and expenditure. On the other hand, we all wish to have financial freedom when we retire; it gives us the confidence to lead our lives according to our will and not depend on family (children or relatives).
As a solution, opting a pension plan would help you to save a good corpus for your old age, thus providing financial security and one such scheme that we help you do so is the “NATIONAL PENSION SYSTEM.”

What is NPS?

The National Pension System is a Government initiative, intending to provide pension opportunity to every Indian (Resident or Non- Resident) and to inculcate the habit of saving, especially for retirement. It was rolled out on January 2004 for new Government recruits and has been made mandatory for all central government employees and some state government employees. This scheme is not compulsory for Government Employees who have joined before January 2004; however, they can always opt for it if they want to. As for the private sector employees, they have a choice to choose between Employees’ Provident Fund Organization and NPS.

Am I eligible for NPS?

Any person between the age of 18 – 65 years can open an NPS account, provided you choose the right type:

Types of NPS :

1. Tier 1
It is a mandatory account for all those who opt for NPS.

  • The Government employees have to contribute 10% of their salary (salary = basic + DA), and the government will make equal contributions as well.
  • For others opting this scheme, the initial contribution is Rs. 500/- at the time of account opening and minimum annual contribution is Rs. 1000.

2. Tier 2
Not a compulsory account like Tier 1. You can withdraw funds at any time, and hence, it provides high liquidity. There are no contributions from the government or the employers and include no tax exemptions either. There are three critical points to make a note of:

  • The minimum amount required to open this account is Rs. 1000/-
  • Minimum monthly contributions amount to Rs. 200/-
  • Necessary to hold a minimum balance of Rs. 200/- every financial year.

How do I exit from NPS?

If you retire at 60:

  • 40% of withdrawals are free from tax.
  • From the balance 60%, 40% minimum has to be used to purchase an annuity. The remaining 20% can be used to either buy an annuity or withdrawn by paying tax according to the tax slab.

If you retire before 60 years:

  • You would use 80% of your corpus to buy an annuity.
  • And withdraw the remaining 20% by paying the amount taxable according to the tax slab.
    Remember, the taxation of the amount via annuity is according to your tax slab. In the event of the account holder’s death, the nominee receives the entire amount.

Do I get tax benefits?

  • Tax deductions up to Rs. 1.5 lakh per annum under Section 80CCD of the Income Tax Act.
  • Additional tax deduction up to Rs. 50,000 under Section 80CCD(1B) in a financial year. (only Tier 1 accounts are eligible, not Tier 2)
  • At term completion or 60 years, 40% of the amount received is free from tax.

Who are the Pension Fund Managers for NPS?

  • HDFC Pension Management Company.
  • ICICI Prudential Life Insurance Company.
  • Kotak Mahindra Asset Management Company.
  • LIC Pension Fund.
  • Reliance Capital Asset Management Company.
  • SBI Pension Funds.
  • UTI Retirement Solutions.
  • Birla Sun Life Pension Management.
    These fund managers invest funds in varying proportions of equity, corporate debt, and government securities out of which:
  • Equity come with maximum risk but has higher chances to earn maximum returns.
  • Government securities come with minimum risk and least returns.

What investment options do I get?

1. Active- choice:- With this investment option, an investor gets to mix equity, corporate debt, and government securities as per his/ her choice. However, the allocation of equity can be a maximum of 50%.
2. Auto- choice:- Allocation is done as per the investor’s age.

EquityTill the age of 35, the equity portion is 50%, post which it reduces 2% yearly till it becomes 10% by the age of 55.
Corporate DebtTill the age of 35, the corporate debt is 30 %, post which it reduces 1% every year until it becomes 10% by the age of 55.
Other Options1. Aggressive life-cycle fund - begin with an equity allocation of 75%
2. Conservative life-cycle fund - start with an equity allocation of 25%
Reduce as per the investor’s age advances.

Hopes these details help you in your journey with NPS. After all,
“The best way to predict your future is to invest in it.”

Term Insurance

Term Insurance vs Other Insurance Policies

The life insurance you buy is the security blanket you carry for your family. There are many types of life insurance policies in India. Let’s take a look at them and understand why Term Insurance is the best option when it comes to life insurance:

1. Endowment Plan [Insurance plus Savings]

This life insurance plan gives you a combination of insurance and saving. The premium you pay is divided into two where a certain amount is kept for life cover, while the rest is invested by the insurance company. Sounds amazingly attractive right? Because here if you outlive the policy term, the company will offer a maturity benefit. Moreover, these plans promise to offer bonuses periodically, which are paid either on maturity or to the nominee under death claim. It sounds like it concentrates more on what you get when you live rather than what your loved ones get when you die, which is the whole point of life insurance in the first place. But on death, the maturity is payable to the nominee. But how much is the question!

Let’s say that you take an endowment plan for 30 years for which you pay a premium of Rs 20,000 – Rs. 25,000. What do you get in the end? The maturity sum received would be Rs. 10 lakhs approximately. Would that take care of all the troubles?

Hence it’s important to remember that the whole purpose of a life insurance policy is not to make returns rather, to protect your family in the event of your untimely death. It’s best not to mix life insurance with investment options. To make returns there are other options like Mutual Funds, that help you to earn substantial returns by making investments that are based on your financial goal and risk appetite.

2. Unit-linked insurance plan (ULIP)

This particular combination of insurance and investment is a comprehensive life insurance products that look to provide productivity towards the money invested. The premium you pay towards a ULIP goes partly as your risk cover (insurance) while the rest is invested in funds. You can invest in various funds (bonds, equities, debts, market funds, hybrid funds) offered by the company based on your risk appetite.

For instance, you take a ULIP for 20 years with premium payouts of 20,000 every year, and you have assured a sum of Rs 2 lakhs along with whatever amount you receive on an investment. The great thing about it is that you are putting your money to good use, but you might as well earn the returns through Mutual Funds that give you more flexibility as per your risk appetite and have the freedom to invest with complete transparency in secure platforms like MyWay Wealth.

3. Money Back – Periodic returns with insurance cover

A unique kind of insurance package, wherein a specific portion of the sum assured is paid to the insured on periodic intervals as a survival benefit. It serves like a source of income in a way along with the eligibility to receive the bonuses declared by the company from time to time. This is a way for you to meet your short-term financial goals.

For example, you take on a Money-back Policy for 20 years with Rs.20,000 – Rs.25,000 as your premium each year. You have been assured a sum of Rs.5 lakh which will be paid to you on regular intervals along with accrued bonuses

4. Whole Life Insurance – Life coverage to the life assured for whole life

Unlike the term insurance, which is for a specified term, whole life insurance covers you for your whole life, or in some cases, up to the age of 100 years. The sum of coverage is decided at the time you purchase the policy and is paid to the person you nominate the time of claim along with bonuses if any. But say you were to outlive the age of 100 years, the company would pay you the matured coverage amount.

In comparison to term plans, the premiums are much higher but it offers the facility for partial withdrawals after the premium payment term.

3. Term Plan [Pure risk cover] – Recommended

This is true life insurance. Unlike other life insurance products, this concentrates on one thing alone, covering for the loss of your life. This plan assures the dependants a specific sum of coverage with no hassles whatsoever. There is an option to widen up the coverage. The death benefit can be payable as a lump sum, monthly payouts, or a combination of both as per your choice. The only catch is that there is no payout if the life assured outlives the policy term.

For instance, let’s say you are a non-smoker male looking for a term life plan of Rs.1 crore cover. It will cost you approximately Rs.6, 800 to Rs.10, 500 every year. Doesn’t seem too costly, does it? Term insurance is best known for delivering high assured coverage at low premium rates. Say you’re the breadwinner of the family, in the case of your untimely death, your family is supported with an enormous amount of money which helps them to replace the loss of your income. Moreover, the money could be utilized to pay off loans, monthly household expenses, child’s education, child’s marriage, etc.

Now that you know Term insurance is the best form of life insurance. Don’t hesitate to buy a Term Insurance Plan with MyWay Wealth today.