What moved my market? (Issue #4: MyWay Weekly Updates)

The recent Melbourne Mercer Global Pension Index 2018 reflected the Indian pension system’s standing against economies like China (close peer), Netherlands and Denmark (considered to have the best pension scenario).

What’s interesting is that India surpasses China on parameters like integrity and sustainability but lags on a key parameter – adequacy.

This begs the question – is it time we Indians reconsider our pension investment options? Maybe, yes.

While EPF and NPS command a higher selection among investment options, the returns are less than just adequate. Options like retirement mutual funds have started gaining attention as people realize the benefits.

Here are a few retirement mutual funds and their historical returns vis-à-vis EPF returns of 8% p.a.

Retirement Mutual Funds

Meanwhile, shares of Indiabulls Housing Finance have gained the most this week by as much as 27.28% during this week. Almost all arbitrage funds have emerged as the biggest beneficiaries of the uptick.

Indiabulls Housing Finance Share Price

Fund pick of the week:

On a trailing basis, L&T India Value fund has delivered more than ~20% for the 5 year period when the category average stood at ~17.34%. The fund is a good addition to investor portfolios with a 5 years+ horizon and high-risk appetite.

Fund News:

  • Motilal Oswal Mutual Fund has decided to revise the exit load in Motilal Oswal Focused 25 Fund, Motilal Oswal Midcap 30 Fund, Motilal Oswal Multicap 35 Fund, Motilal Oswal Dynamic Bond and Motilal Oswal Equity Hybrid Fund to 1% if redeemed within 15 days with effect from November 01, 2018. Previously it was 1% if redeemed within 1 year.
  • ICICI Mutual Fund has decided to change the minimum monthly SIP amount to INR. 100 for all available funds with effect from Nov 01, 2018.

See you again same time next week. As always, if you have any concern, please write to us at ask@mywaywealth.com or call at +918048039999, we would be happy to answer your questions.

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