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!

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?

Direct vs Regular

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

Usually, when we place orders online, we come across two products, those that don’t charge for delivery and the other that charge for the same. We usually opt or like the ones that provide “Free Delivery.” Right? The simple reason being we do not incur additional charges for our purchase, and that reduces the burden of our expenses.
Even Direct Plans and Regular Plans of Mutual Funds work on a similar concept.

Regular Plans are mutual funds that you buy through an intermediary such as an advisor, distributor, agent, or broker. These agents charge commission, trail, or distribution fee for the service they provide, thus increasing the expenditure for your investment. And not always do brokers or intermediaries intent to sell plans that suit your financial needs, their primary objective would be to push the scheme and earn their share of profit.

Now let’s look at funds that are like the delivery of free online products.
SEBI made new regulations with regards to Mutual Funds, which was made effective on January 1, 2013, i.e. Introduction of Direct Plans. Direct Plans are those mutual funds in which investors can directly invest with Asset Management Companies (AMC) who do not involve intermediaries and do not charge any agent or broker fees.

The advantage of Direct Plans:

  • Direct Plans do not involve intermediaries, and hence, Fund Managers can generate better returns by reducing their expense ratio.
  • The Net Asset Value (NAV – per share market value of a fund) is more when compared to Regular Plans implying that the returns that you can make are higher by approximately 0.5% for equity funds and 0.2% for debt funds.
  • Investors can earn 1-1.5% more returns with Direct Plans. Additionally, a difference of 1% can be a huge gap with the compounding effect in the long-term.

Let’s look at a simple example:
An investment of 2 lakhs in each Direct, as well as Regular plans for 20 years, yield different returns.

 

Direct Vs Regular

Direct Plans offer 42.2 lakhs, which are 16.5% returns, whereas Regular plans help you earn 32.7 lakhs, which are approximately 15% returns. It is a clear example that the Direct Plan is more beneficial and hassle-free than Regular Plans.

Which one is better?
It’s simple!

 Direct Plans = Higher Returns

However, each investor’s risk appetite is different, and so is their knowledge or expertise about Mutual Funds. So if you are a newbie to investing and have no prior knowledge of mutual funds, then initially you can opt for Regular Plans. However, once you have gathered enough experience and expertise, it’s highly recommended that you quickly switch to Direct Plans.

Think Smart! Think Investments!

SIP Investments - Karan Batra

What is Systematic Investment Plan (SIP)?

Systematic Investment Plan, commonly referred to as an SIP, is used by investors to invest regularly a fixed sum in your favorite mutual fund scheme(s). In SIP, a fixed amount is automatically deducted from your bank account every month & it is invested in a mutual fund of your choice. You can start with a SIP of as low as Rs. 100 or Rs. 500 per month.

Mutual fund

Types of Mutual Funds

“Embrace those things that make you unique”

Absolutely! We are unique and so are our financial needs. Someone might want to build a house, while someone would want to save for their child’s education or marriage. Some might want to build a corpus for their retirement, and some might just want to invest to save and get better returns. When investment needs are so different, how can they all be served through a Bank FD or RD? We definitely need flexible plans that blend and suit our financial requirement. And this is possible with Mutual Funds. Mutual Funds have various categories of funds that serve different needs and this article will throw light on them.

The broad category of Mutual Funds includes:

  1. Equity Funds: Equity Funds invest in shares of companies that have different market-capitalization. They are meant for investors that have a long investment horizon i.e 5 years or more. Equity Funds generate high returns, which also indicate high risk, thus it’s important for investors with higher risk tolerance to opt for Equity Funds. Since investors under this category remain invested for a long period of time, there is sufficient time for the fund to overcome the market fluctuations.
  2. Debt Funds: Although Debt Funds have no guarantee of returns, they primarily invest in treasury bills and corporate bonds, therefore the returns earned by debt funds are most often predictable thus making them a less risky option than Equity Funds. Conservative investors who have a lesser risk appetite, looking for moderate returns and have a financial goal that is either short term ( 3 months – 1 year) or medium term (3 – 5 years), can opt for this option.
  3. Hybrid Funds: Hybrid Funds invest both in equity and debt instruments. They form a perfect combination, meaning they provide better returns than Debt Funds and at the same time are less riskier than Equity Funds, thus avoiding excessive risk and providing both income and capital appreciation. Investors who have a lesser risk appetite, but at the same time want their investments to have equity exposure, can opt for this option.

Mutual Funds can also be categorized based on Market Capitalization:

  1. Large Cap Funds: Large-cap funds are those that invest primarily in companies that have a large market capitalization, these are companies that fall into the top 100 ranks (as per SEBI). Investors who have a lesser risk appetite can opt for this option as these funds have fewer fluctuations when compared to Mid Cap and Small Cap funds. However, it is recommended that investors remain invested for a long period of time, say 5 – 7 years or more.
  2. Mid Cap Funds:  Mid-cap funds invest in companies that have mid-market capitalization i.e. companies that fall between the rank 101 – 250 (as per SEBI). In short, mid-cap funds lie between Large Cap and Small Cap funds. So investors who have higher risk tolerance and are willing to face higher market volatility than large-cap funds can go for mid-cap funds. However, first-time investors are not recommended to choose this option.
  3. Small Cap Funds: Small-cap funds are the riskiest and most prone to market fluctuations when compared to Large Cap and Mid Cap Funds. Investors who have high-risk tolerance and want aggressive returns can choose this option. However, it is highly recommended that investors only invest a portion of their portfolio in small-cap funds.

This is not all: Mutual Funds can further be classified on the basis of Risk levels, structure, asset classes, investment objectives, or even expense ratios. But the right way to choose a Mutual Fund must be based on the investor’s profile:

  • Investment horizon: duration of the investment
  • Risk Appetite: The level of risk an investor can tolerate
  • Returns: The percentage of returns an investor expects from an investment
  • Financial Goal: the objective of the investment

 

Invest Yourself on MyWay Wealth

mutual funds

Aren’t Mutual Funds Risky?

Although Mutual funds are regulated by the Securities and Exchange Board (SEBI) of India,  people are skeptical of investing their money in Mutual Funds. The reason for this phenomenon is “Safety of your investments”. Since Mutual Funds are linked to the market, investors doubt the safety of their funds and the guarantee of their returns. This article addresses the concern and lists out reasons to prove that investments in Mutual Funds are safe even though they are risky:

Regulated

As stated before, SEBI regulates Mutual Funds with the intention to protect the interests of the investors. SEBI sets guidelines that help investors in comparing various funds and also have categorized Mutual Funds into – Equity, Debt, Hybrid, Solution Oriented, and Others. This makes the entire system simplified and uniform.

Diversification

Mutual funds have definitely capitalized on the quote “Don’t put all your eggs in the same basket”. Mutual funds wisely invest your funds in various instruments such as stocks, bonds, company shares, etc. Thus reducing the risk that could arise from investing in a single stock.

Reduces Risk

Mutual Funds are managed by Professional Fund Managers. They make decisions regarding the buying and selling of funds based on research and abide by the standards set by SEBI. They constantly evaluate the investments and address risk by diversifying asset portfolios.

Inflation-beating returns.

Mutual Funds account for inflation. The inflation rate in India has been between 4% – 7% and with Mutual Funds, investors have the potential to earn more than 15% in returns, which easily beats inflation. Thus the real interest rate (i.e. nominal interest rate – inflation i.e. 15% – 7%) is more in Mutual Funds when compared to FDs.

Flexibility   

Emergencies such as accidents or health issues are uninvited guests in anyone’s life. One way to face them is to be able to access your money easily. With Mutual Funds, you can withdraw your funds anytime and the amount gets credited to your bank account. Also with MyWay Wealth, you can invest for a specific goal (retirement, child’s education/ marriage, vacation) or just park your money aside with 3-year investments.

A fund for every investor.

Investment decisions have to be made based on the investor’s risk appetite & investment horizon and with Mutual Funds that is possible. Mutual Funds provide tailor-made funds that suit your financial needs. Right from short term funds to long term funds, Equity Funds (High risk, high returns) to Debt Funds (low or moderate risk and returns), you can find them all under one roof of Mutual Funds.

“Everything you want is on the other side of fear” Jack Canfield

Now that we know Mutual Funds are not as risky as they seem to be, let’s overcome the fear. Don’t Delay – Invest Today!