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How to use FundsIndia’s weekly fund reviews

November 9, 2012 . Vidya Bala

FundsIndia sends recommendations / reviews of various mutual funds on a weekly basis. This service has been launched with an aim to help you make an informed decision with your investments. Through this service, we seek to keep you informed about the performance of a fund that you may hold or one that you may wish to invest in.

As investors, you would need to take a call on whether to invest in a fund based on your current portfolio and your risk appetite. Not every fund that is recommended through this column needs to be added to your portfolio. Such a move may lead to over-diversification or duplication of holding.

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55 thoughts on “How to use FundsIndia’s weekly fund reviews

    1. A suggestion, While going through these Market place – fundsindia, Suggest you to put it in inverse chronological order so that current appear at top and last appear at the bottom. You may find it appropriate.

        1. Anand Kumar: if you mean safety in terms of equity markets, it is as safe or as risky as the Indian equity markets but perhaps less volatile than ours. As for safety with regard to investing through international funds, the same laws with regard to the AMC apply to these funds. HEnce they are not any riskier.
          Your investment will be made in rupees the final returns are shown in rupee terms (NAV is in Rs). But since they are invested in dollar-denominated investments, you will be impacted by a fall or raise in the dollar against the rupee. This is already adjusted in the NAV. If the dollar appreciates against the rupee you stand to gain and vice-versa. Vidya

  1. @Vidya: For evaluating the returns on investment in mutual funds, I use the XIRR function in excel. I put the outflows with negative sign and inflows with positive sign along with the dates. I then use the XIRR function to determine the return. Could you let me know if this is the correct method of evaluating returns?

    1. Wishes for a great year from Team FundsIndia Ramkumar. It is correct to use XIIR function. Date, outflows and final inflow is what is needed. Every month there will be outflow (which would be shown as a negative sign) So at the end of the period, say the 60th month (if you have a 5-year SIP), you need to show the outflow for that month and also the inflow (positive) in the line below it. So its is only in the month of you last installment made, would you have an inflow. Vidya

  2. My mother aged 59 yrs wants to invest approx Rs.1 lac.She wants to take benefit of the high rate of interest prevailing now by locking for a time horizon of 3-5 yrs.Which is the best option amongst SCSS,NSC,Reliance MIP or any other which you recommend.Bottomline is returns should be good with minimum tax implications and high net yield.

    1. Anurag, you have not mentioned whether your mother needs a regular income stream. If she needs regular and assured income then Post Office Senior Citizens scheme is a good option. While interest income is taxable, the investment made is eligible for Sec 80C benefit in the year of investment. The current interest of 9.3% (for investments made before march 31) is good and is assured. If she can spare this money for a longer time frame, does not depend on this for her monthly income and also take some risks only then should she go for an MIP. Even in MIP she should prefer less riskier funds such as HDFC MIP LTP if she cannot take volatility.
      NSC is suitable only for those who can lock in their money for 5 years or 10 years. Interest is not paid out in NSC until maturity.

  3. Hi Vidya, i would like to understand how do we calculate earning on Debt instruments. When someone says interest rate is x% but annualized income is y%, how do we evaluate total earning on the Debt scheme?

    1. Hi Neha,the interest rate mentioned in any debt product is an annual payout. When these advertise about annualised return (typically higher than the interest rate mentioned), it would due to any of the following:
      1. interests that are cumulative on a half yearly or quarterly basis may provide higher yield as the interest earned more frequently is further compounded. for instance, a deposit with 9% interest and interested cumulative half yearly will have an annualised return of 9.2%.
      2. Where these debt products have income tax benefit on the principal, then the cash outflow saved on such tax is also considered for calculation of return purposes.
      Hence your return would be any of these mentioned. But remember many of these return may not be next of the taxes you pay on your interest income. Do take that in to account when you see high annualised returns advertised by debt products.

    1. Hello sir,

      Jaiprakash group is a listed company and not a NBFC. Ratings companies rate only NBFCs for their deposit products. An investor would thus need to go by the strength of balance sheet when it comes to investing in non-NBFC corporate deposit products such as Jaiprakash group.

      From an advisory standpoint, we are neutral on Jaiprakash deposits.

      thanks,

      Srikanth

        1. Hello sir,

          I would recommend that you go with more proven deposit offerings such as Shriram Transport.

          thanks,

          Srikanth

  4. as per you it is good to invest in bsl floating rate ftp, dsp br liquidity, hdfc cash management saving plan for periods less than 12 montgs. but when i asked advice for a liquid fund to invest my premium amount for a period upto nov 2013 starting mar 2013 (total 10 months), your advisor recommended tata floater fund. can you clarify the dichotomy in the two viewpoints from the same advisors.

    1. Hello Mr Kunal, there is no dichotomy here. The 3 funds mentioned by you are liquid funds. Tata Floater is an ultra short-term fund. That means it is meant for a slightly longer holding period of say 6-12 months. You would have been given this since your holding period is 10 months. It works to your advantage as ultra-short term funds can earn slightly better returns than liquid funds. Tata Floater is one of the superior funds in the ultra-short-term category.
      We nornally suggest funds based on the individual’s needs such as – liquidity, period of holding as well as STP needs – when they seek our advice. When writing an article, however, we cannot distinguish individual needs and hence state funds that serve the immediate liquidity purpose.
      Rest assured that the funds recommended have gone through filters before making the cut. – Tks Vidya

  5. Hi,
    I have opened my fundsindia account in December,2012 and have been waiting to get KC status since then. I am not sure is getting the KYC status is so hard from NDML.

    I have been reading your articles, but of no use as cannot invest. Please let me know if you can help in anyway on this. Thanks

  6. Hello Vidya,
    Thanks for your article. How do you identify the fund whether it is liquid fund or ultra short term liquid fund or debt fund?.

    Regards,
    Arun.

    1. Hi Arunprasad,

      You simply have to check under what category the fund is stated in the fund house’s website. As for characteristics there are multiple features that set them apart.

      Thanks
      Vidya

  7. Hello Vidya, I want to invest a lumpsum in Birla sunlife liquidity fund & later when market falls i want to switch some amount to Equity funds through STP. Could you please suggest which liquid fund is better from Birla sunlife & how much returns may expect from STP. I prefer Birla sunlife as we may get addtnl benfit of insurance.

    REgards,

    venkata

    1. Hi Venkata Krishna, We offer fund recommendations through our portfolio advisory route. Our portfolio advisory services are available free of cost if you use the ‘Ask Advisor’ feature in your activated FundsIndia account. Kindly click the help tab to use this feature once your account is activated. Thanks.

  8. Hi ,
    Madam I am new here I want to deposit systematic investment plan which will be diversified .
    Can you help me about this monthly SIPs will be 5000/- and duration 14 yr to16 yrs.
    And I want to know about stock market how is work ? If I want to invest directly in their What I have to do in daily/weekly/monthly ? Pl give me helpful suggestion about stock market>

    1. Hi Sangram, You seem like a first time investor with fundsIndia and we would be glad to help you with an advisor call (this is free of cost). I shall ask one of our advisors to contact you.This will help us know your exact requirement before we suggest you funds. In future too, you can use the ‘Ask Advisor’ feature available in your account (click the help tab and you will see this) for any portfolio query. Thanks.

  9. I have an (Individual) account with Funds India since 2 years. I would like to open another account of HUF. Since I have the same e-mail ID, the opening is not accessible. Please guide or send me a mail to open the HUF account.

    Secondly, I am 62 years old. I was blessed with a grand daughter. I would like to start create a wealth on her name for a longer period of 15 to 20 years. How to invest? Please guide me.

      1. I also have a individual account, and I want to open a HUF investment account and need advise on how to open, invest & manage.

  10. hi, i am a fundsindia investor. of the following two which investment will be best in terms of only (r) only interest rate returns for a period of 5 yrs.
    (a) bank fd for 5 yrs with a avg int rate of 9.5% OR
    (b) postal mis of 5 yrs wherin the interest is reinvested in post rd of 5 yrs.
    1. what would be the net interest rate for each type on maturity after 5 yrs.
    2. as i am in 30% tax braket, which will be better investment of the above two.
    Thankx

  11. I m a government employee (27600 monthly). I want to start a sip of 5000 for 3 years AND later plan to increase upto 10000 for 10 to 15 years. Make me a best diversified portfolio.
    Requirements based on background situations:
    A child of 1 year old(long term profile), Around 60 year old parents want to send monthly income like pension on their account(permanent income), house loan expection a minimum capital, an education loan already had nearly 1L. If i have to incrase the amount of sip…give some best sugission.

    1. HI Vijay Kumar, Thanks for writing to us. Portfolio advice is given to all investors who have a FundsIndia account. The blog is more of a discussion forum. Pl. open an account with FundsIndia (there are no charges) to enable us to help you. thanks, Vidya

    1. Hello Eshan, It depends on your risk taking ability. In general a combination of these nuilt as a portfolio will help generate optimal returns. If you need a portfolio to be built, base don your requirements, savings or goals please use your FundsIndia account (if youa re our investor) and write to us using advisor appointment feature (in help tab). Our advisors explain the difference and help you allocate optimally. thanks, Vidya

  12. Pl suggest mix of debt funds portfolio for 3 yrs perspective…part funds we can withdraw when we lock good returns like 12 to 15%. Thanks.

    1. Dilip, your return expectations are a bit high for debt funds. While this returns will come by for a short while when rates are cut and there is a rally, it is not sustainable. For recommendations on debt funds, please use your FundsIndia account if you are an investor and write in your query (through the advisor appointment feature in help tab) and our advisors will help you choose the funds. thanks, Vidya

  13. @vidya my question for my father in law. He has idel money of 450000. He is 50+ of age and a son studying in 12th. He want to invest his money for son’s education. So where he should invest his money for 5+ year of time horizon. Kindly relply soon. Regardss

    1. Hello,

      A part of the portfolio can be invested in moderate-risk equity funds and the rest in debt, given the high priority of the goal. For specific allocations and funds, please contact your FundsIndia advisor or set up an appointment (Help tab in your FundsIndia account). These are very portfolio-specific queries, and we are restricted from providing such advice on this forum.

      Thanks,
      Bhavana

  14. I heard that If I get kyc compliant by karvy I can’t invest in AMC listed under camskra. Is it true?

    1. Hello Mohammad Idrish,

      That is incorrect. If your KYC has been SUCCESSFULLY processed by any KRA, you will be able to invest in any mutual fund on any platform. Problems only arise if your KYC has been put on hold, has been rejected, etc.

      Warm regards,
      Team FundsIndia

  15. Dear Vidya Bala,

    Please advice SBI Blue chip and DSP black rock micro fund. Should be buy now. Market is on peak

    1. Hello,

      If you have a lump sum to invest today, invest in liquid funds and systematically transfer it to equity funds over the next 10-12 months. If you want to start a SIP, then go ahead but ensure you run it for the long term. Both STP and SIP will help you avoid the problems of market timing. SBI Bluechip is a quality large-cap fund. DSPBR Microcap is a small-cap fund. While it is a good fund, it is very risky. The fund is also closed for fresh SIP and lump sums, so you will not be able to invest now in the fund. If you’re a FundsIndia investor, please contact your advisor (Advisor Appointment feature under Help) to know which funds you can invest in.

      Thanks,
      Bhavana

  16. hello Vidya,
    what is ur advice on “HDFC Equity Saving fund”. I want to invest lump sum (3.5L). as market is in peak, instead of investing in equity funds, Can I invest lump sum in this fund? can I get better return then Dept funds? and How safe is this fund?

    1. Sorry for the delayed response. The fund does not have sufficient track record for us to backtest and have a view. If you are investing for the logn term, why restrict it to these funds? Do a STP into equity funds so that you are not worried abouut market timing. Thanks, Vidya

  17. dear vidya,
    -How do i register with Funds india
    -i have to invest short term(3yr) and long term (3-5yr)
    how do i proceed
    regards
    manish

    1. Manish, Thanks. You need to go to the home page, go to the start here box on the right (for sign up) and fill the 4 fields there for registering. You will then receive a call from our team. Alternatively, if you wish to share your number here, I shall pass it on to the onboarding team.

      thanks
      Vidya

  18. Hi Vidya,

    It’s a nice blog.
    I am a fundsindia user…and would like to know more about debt funds .. which actually meet my requirement .

    Any chance of contacting you or your team through funds India…

    P.S from my current advisor, I always got suggestions about mutual funds but never got info why they are selected among others..

    Thank you,
    Narendra

    1. NArendra,

      Thanks for writing to us. Debt funds are complex and their choice requires understanding of fund’s strategy and risk. What advisors give you is the list of funds that we have already fitlered using a large number of research criteria. HOw we do it is publicly disclosed and can be seen here: https://blog.fundsindia.com/blog/advisory/fundsindia-ratings-criteria-and-methodology/10276

      I also recently wrote why it is not easy to choose debt funds: https://blog.fundsindia.com/blog/advisory/fundsindia-views-why-you-need-help-choosing-debt-funds/12037

      Other than this we have explained every concept of debt fund possible and the links to it are given below. If you have specific queries, on why X fund was chosen over Y fund etc. please ask the advisor to escalate it to research if you are unhappy with their response. As the advisor concerned does not compare every fund out there and goes by research rules, he/she may not always have the answer, although we try to equip them. Broadly, in debt, credit risk, chances of negative returns, volatility and consistency in returns are considered for choice of funds. Of course they need to have min. track record and AUM as well. All those are mentioned in the research methodology link I shared above.
      Please go through the following links at leisure to learn more about debt funds and the different choices. You can search for many such articles on anything on MFs under the label ‘Simply Important’ on the blog.

      https://blog.fundsindia.com/blog/general/fundsindia-explains-what-are-debt-funds/8982
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-debt-fund-jargon/11338
      https://blog.fundsindia.com/blog/general/fundsindia-explains-accrual-and-duration-in-debt-funds/12033
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-why-debt-fund-returns-are-not-fixed/10313
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-what-are-liquid-funds/10903
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-what-are-ultra-short-term-funds/11403
      https://blog.fundsindia.com/blog/general/fundsindia-explains-short-term-and-income-funds/11124
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-dynamic-bond-funds/11172
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-credit-opportunity-funds/11200
      https://blog.fundsindia.com/blog/mutual-funds/fundsindia-explains-short-term-and-long-term-gilt-funds/11093

      Hope this helps.

      thanks
      Vidya

  19. Pingback: ICICI Prudential Focused Bluechip Equity – Paras Kenia

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