Mutual Fund NFO – Indiabulls Equity Hybrid Fund details and review

New Fund offer by Indiabulls, let us have a look at the details of the offer.

Mutual Fund	Indiabulls Mutual Fund
Scheme Name	Indiabulls Equity Hybrid Fund
Objective of Scheme	The Scheme seeks to generate periodic return and long-term capital appreciation from a judicious mix of equity and debt instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.
Scheme Type	Open Ended
Scheme Category	Hybrid Scheme - Aggressive Hybrid Fund
New Fund Launch Date	22-Nov-2018
New Fund Earliest Closure Date	06-Dec-2018
New Fund Offer Closure Date	06-Dec-2018
Indicate Load Separately	Entry Load: Not Applicable Exit Load: •
Minimum Subscription Amount	Rs. 500 and in multiples of Re. 1 thereafter

Source - Amfi 

What is a Mutual Fund NFO - A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.

Did you choose your car insurance or just bought it? 

Important part of the SID Scheme Information Document

Check SID document in detail

Type of scheme - An open ended hybrid scheme investing predominantly in equity and equity related instruments. Hybrid Fund would have an equity allocation of 65% - 80% & debt allocation of 20% - 35%. The scheme aims at providing dual benefit of Wealth generation through investment in equities and lower volatility through investment in debt.

Investment Objective -  To generate periodic returns and long term capital appreciation from a judicious mix of equity and debt instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.The scheme will offer both direct and regular opton

Where will the scheme invest?

·         In the equity segment, fund intends to invest in Automobile, Banking, Financial Services, Metals and Energy. In the defensive side, it intends to invest in FMCG, IT and Pharma.

·         In the debt segment it intends to buy AA and above rated debt papers. The portfolio allocation likely to be 20-35%

Who will manage the fund?

The fund management includes the following team members-

Fund Manager	Brief Experience
Sumit Bhatnagar Head Equity (For Equity Segment) Age – 40 years Qualification - MBA (Univ. of Toronto), CFA (USA)	Mr. Sumit has 15 years of experience in Banking & Capital Markets. Prior to joining Indiabulls, he has worked with SEBI for close to 4.5 years in Investment Management Department. He has also worked in Banking Industry in retail and corporate assets. Sumit has been with Indiabulls since February 2009.
Vikesh Gandhi Age – 41 years Qualification – M.Com, University of Mumbai, MBA (Finance & Accounting), University of Hartford, USA	Mr. Veekesh Gandhi has more than 10 years of experience in the field of finance. He was earlier associated with DSP Merrill Lynch Ltd, SSKI Securities and Motilal Oswal Securities, wherein he was responsible for tracking the BFSI sector and research on investment ideas.
Malay Shah Age – 39 years Qualification – B.Com, MMS Finaance	Mr. Malay Shah has 15 years of experience in the field of finance. He has exposure to Debt – Dealing and Fund Management. Prior to joining Indiabulls Mutual Fund, he was working in the capacity of Head – Fixed Income with Peerless Funds Management Co. Ltd, managing all the debt Schemes.

Mymoneystreets Take –

Indiabulls Mutual Funds, is one of the fast-growing young Mutual Fund company with an AUM of about 10 thousand crore. Indiabulls Mutual Fund was launched in the year 2008. Indiabulls Mutual Fund has 4 existing equity funds and 7 debt-oriented funds in the kitty. The fund is suitable for investors with moderate to high-risk appetite with an investment outlook of 5-8 years horizon, highly recommend the SIP mode for the investment.

This category has many funds who are doing well. It is just one more addition. However, Fund managers well equipped to get good value to the investors. The view on investing this fund is neutral.

Read the SID carefully before investing, if you are a new investor, take suggestions from a financial advisor.

NFO – Review – DSP Blackrock Healthcare Fund closing on 26th November

Mutual Fund NFO Details - DSP Blackrock Healthcare Fund 

Mutual Fund	DSP Mutual Fund
Scheme Name	DSP Healthcare Fund
Objective of Scheme	The primary investment objective of the scheme is to seek to generate consistent returns by predominantly investing in equity and equity related securities of pharmaceutical and healthcare companies. However, there can be no assurance that the investment objective of the scheme will be realized.
Scheme Type	Open Ended
Scheme Category	Equity Scheme - Sectoral/ Thematic
New Fund Launch Date	12-Nov-2018
New Fund Earliest Closure Date	26-Nov-2018
New Fund Offer Closure Date	26-Nov-2018
Indicate Load Separately	Entry Load: Not Applicable, Exit Load (as a % of Applicable NAV) Holding period from the date of allotment:<= 12 months – 1%, > 12 months – Nil. Note: No exit load shall be levied in case of switch of investment from Regular Plan to Direct Plan and vice versa.
Minimum Subscription Amount	Rs. 500/– and any amount thereafter.
For Further Details Please Visit Website	www.dspim.com

Source - Amfi 

What is a Mutual Fund NFO - A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. Mutual funds are one of the most common new fund offerings marketed by an investment company. The initial purchasing offer for a new fund varies by the fund’s structuring.

Did you choose your car insurance or just bought it? 

Important part of the SID Scheme Information Document

Type of scheme - An open ended equity scheme investing in healthcare and pharmaceutical sector

Investment Objective - The primary investment objective of the scheme is to seek to generate consistent returns by predominantly investing in equity and equity related securities of pharmaceutical and healthcare companies. However, there can be no assurance that the investment objective of the scheme will be realized.

Where will the scheme invest?

-          It will invest in Equity and equity related securities, government bonds, NCDs, short term deposits, InvITs, REITs

-          a sector specific Scheme, shall focus on investing in pharmaceutical, healthcare and associated companies as mentioned earlier, keeping ‘S&P BSE Healthcare Index’ comprising of 64 stocks.

Who will manage the fund?

The fund management includes the following team members-

Fund Manager	Brief Experience	Other schemes
Aditya Khemka Age – 37 years Qualification - B.Com, M Sc Finance, MBA from MDI (Gurgaon)	Over 11 Years of experience. October 2015 to present: Assistant Vice President - DSPIM. From February 2014 - October 2015: Pharma Analyst – Ambit Capital Private Limited. From November 2013 to February 2014: Pharma Analyst - Antique Stock Broking From April 2008 to November 2013: Pharma Analyst – Nomura Structured Financial Services	Nil
Vinit Sambre Age – 43 years Qualification – B.Com, FCA	Over 19 Years of experience from January 2010 to present: Vice President - DSPIM. From July 2007 - December 2009: Assistant Vice President - DSPIM. From November 2005 to June 2007: Assistant Vice President - Global Private Client with DSP Merrill Lynch	Co-Fund Manager - DSP Small Cap Fund and DSP Mid Cap Fund
Jay Kothari (Dedicat ed Fund Manager for overseas investments) Age - 37 years Qualification - Bachelor in Management Studies (BMS) Mumbai University MBA (Finance) - Mumbai University	Over 14 years of experience as detailed under: From 2010 to present – Vice President in Equity Investments and a Product Strategist at DSPIM From 2005 to 2010 – Mumbai Banking Sales Head at DSPIM From 2002 to 2003 - Priority Banking division at Standar	Fund Manager for DSP World Agriculture Fund, DSP World Mining Fund, DSP World Energy Fund and DSP World Gold Fund Co-Fund Manager for DSP Focus Fund, DSP US Flexible* Equity Fund, DSP Equity Savings Fund, DSP India T.I.G.E.R. Fund (The Infrastructure Growth and Economic Reforms Fund), DSP Regular Savings Fund, DSP Equity Opportunities Fund, DSP Global Allocation Fund, DSP Natural Resources and New Energy Fund, DSP Midcap Fund, DSP Small Cap Fund, DSP Top 100 Equity Fund.

Mymoneystreets Take –

DSP has a proven track record in India. Their funds DSP Tax Saver, DSP Midcap small cap is known best for the prudent fund management approach. However, Blackrock has sold their stake in DSP this year and we need to keep a watch on the performance. However, they have a decent asset size, moderately aggressive approach in the fund management. Additionally, Pharma sector in last 2 years has seen a bumpy ride and company with quality balance sheet and operational efficiency trading at an attractive PE. The stocks are trading 20-30% lower than their yearly high

Word of caution - This is a thematic fund, sector concentration is very high. Investors who already has existing exposure in diversified equity such as Large-cap/ Mid-cap – small cap funds and balanced funds can look for an extra exposure. Other than market related risks, the sector funds are cyclical in nature and gives a volatile return, ideal for 3- 7 years exposure and in SIP format.  Also, diversification is a key to good healthy portfolio.

Take on Fund manager

The fund is managed by first time fund manager Aditya Khemka, supported by Vinit Sambre with 20 years of experience, also fund-manager for the star fund – DSP Small cap fund.  The third manager has a big portfolio of many funds as well as dedicated fund manager for overseas investments.

Read the SID carefully before investing.

Systematic Withdrawal Plan will be the instrument to fight Long Term Capital Gain Tax

Its been about a week that our finance minister read out the budget to the nation, but I still cant get out of the angst of levying 10% tax on #long term capital gain on equity and mutual funds investments. 

Though the markets have reacted in the expected lines by shading about 500 points on Nifty, I expect it to settle at some point in about few months depending on the course of action decided by the large institutional investors. The sudden shock of introducing #LTCG after 14 years on Equity will be hardest on the small investors, who have been told continuously over the years that equity is the best investment option and investing through #SIP in Mutual Funds is the best option.

What is long term capital gain tax on equity - When an investor buys and keep his equity investment over a year and withdraws, the profit generated on the investment is subject to taxation if it is above Rs. 1 lakh. This is applicable to all investors including individual, HUF, FPI. Mutual Funds have been exempted for this, as this is taxable in the hands of Investors.


Also, Mutual Funds will levy 10% dividend distribution tax on dividend options under various equity schemes.

(Short term tax on equity and equity based mutual funds stand at 15%)

#SWP Calculator

Things were different until 5 days back, when capital gain tax was zero over 1 year, but now we have to learn and adjust to the new normal. What we understand basis the announcement is if we make profit over 1 lakh in a financial year on equity or equity based mutual funds, we have to pay tax on the money over 1 lakh on the long term capital gain (over 1 year). Refering to the chart below on illustration, the tax is applicable to the profit generated over and above 1 lakh. Also, as the budget will only come into effect from April 1, returns above 1 lakh wont be taxed.

Long term capital gain calculation sheet

Investment	Investment amount	Entry date	Exit date	Gain = Amount - Investment (Hypothetical)	Tax applicable	Net Profit
Stocks	1,00,000	1st Jan 12	1st Mar 18	3,00,000	None	3 lakh
Stocks	1,00,000	1st Jan 12	1st Mar 22	6,00,000	10% of 5 lakh = 50 thousand	5.5 lakh
Equity MF	1,00,000	1st Jan 12	1st Mar 18	2,50,000	None	2.5 lakh
Equity MF	1,00,000	1st Jan 12	1st Mar 22	5,00,000	10% of 4 lakh = 40,000	4.6 lakh

Incase of #SWP,  profit will be spread per unit basis. Spreading out the withdrawal over a period will be beneficial for tax saving.

What is SWP?


SWP Is a disciplined approach towards investments withdrawal. From a mutual fund scheme investor can chose to withdraw a fixed sum of money or pre-decided number of units of units every month. (This is not dividend scheme). This is nothing but selling investments, booking profit but just in staggered manner.

Recommend highly as post-retirement earning or for people on sabbatical. It also work out well for second income generation. To illustrate the benefits on a table, I have taken a hypothetical investment of Rs. 5 lakh in 2013, in an equity scheme. 

I have made an illustration on SWP for better understanding on the same. The table is drawn with an assumption that the fund value has grown to Rs. 10 lakh. The sum of Rs. 15 thousand to be withdrawn from the period of April 2018 to March 2019. 

In the above case, the investor have to pay any tax on 10% Tax on three thousand eighty three that is Rs. Three hundred and eight only on his withdrawal.  

By no mean I am portraying tgat you can escape LTCG Tax completely by following this method. It can be used as a method if you dont require the money at one go. It can work like a pension and can be withdrawn to be tax efficient. One may also consider having other pension options which are tax efficient in nature. 

The benefits of SIP have been spoken about a lot. It is about time that we start taking a view on SWP as a tool for withdrawal to make most of the mutual funds investments. SWP Mutual Funds reminds us time and again about discipline. It can beautifully work as a pension or work like extended salary in time of need. It is not required to be a market specialist to invest in it. Choose an equity fund and keep investing for the long term.

This is only applicable to open ended equity and equity based hybrid mutual funds.

systematic withdrawal plan, SWP Calculator, 

Keep investing!!  

Tweet me at debashree_ad for any clarification.

Top 5 tax saving mutual fund schemes (ELSS) for 2017

As we approach year end, our search for the best tax saving instrument under 80c ends at tax saving #ELSS mutual fund schemes. By far the best investment tool with triple exemption benefit (no tax to be paid for buying, accumulation, redemption) with the lowest lock-in period of 3 years and maximum exposure to the capital market for young professionals or anyone who wishes to focus on long-term wealth creation through equity market. For the beginners, ELSS is an actively managed equity fund by an experienced fund managers with an equally equipped equity research team. Over last 5 years, ELSS category has given over 12% tax-free annualised return on an average which is way higher than any other tax saving tools. Hence, it is my favourite tax saving instrument.

Top 10 reasons to invest in ELSS schemes –

1.  Minimum investment for a monthly investment is Rs. 500
2.  No obligation of repeat investment in the same fund every year
3.  No maturity/redemption obligation on completion of 3 years (unless specified by the   fund/scheme), can withdraw anytime once the lock-in period is over
4.  It can be held as long as the investor wants, giving it a chance to build long-term wealth
5.  The fund is managed by able fund management teams
6.  Low fee structure and expenses, about 2-2.5% yearly
7.  No long term capital gain tax
8.  Investor has an option to chose between dividend or growth fund
9.  The dividend earned on these funds are tax-free
10.  SIP method of investing would help in cost averaging

Some point of concerns –
As it is a pure equity investment, it carries market risks, highly volatile

The SIP mode of investment signifies each purchase will have a separate lock-in period of 3 years

Top 5 #Taxsaver #ELSS schemes for 2017

ELSS Schemes	AUM in crore	Returns for 3 Years	Returns for 5 years	Ratings
#DSP-BR Tax Saver Fund	1420	25.5	20.8	5star
#Reliance Tax Saver	5579	29.2	21.3	3star
#Axis Long Term Equity Fund	9956	24.1	21.6	3 star
#Birla SL Tax Relief 96	2308	24.1	19.8	4star
#Franklin India Tax Shield	2196	22.9	17.9	3 star

I have listed 5 top ELSS scheme based on 5 parameters–

1. Funds with over 7 years existence

2. AUM over Rs. 1000 crore

3. Among top 10 fund house

4. Return analysis over 5 years

5. Rating consistency by CRISIL/ Value Research

#DSP-BR Tax Saver Fund

This fund is out an out consistent over last 10 years. It has consistently beaten the index over 1 year, 3 year, 5 years return. This fund has out ranked most other funds in ELSS category in the period. Investment details – The fund aims to generate medium to long-term return on majority investment in equity and equity related instruments. The fund has over 20% exposure in banking and finance sector however invested mostly in private sector banks, so less chance of getting affected by NPA. It has some quality cyclic stocks.

#Reliance Tax Saver Fund

ELSS fund with over 10 years existence, AUM over 5.5 thousand crore comes from a good pedigree. Rated 3 stars by CRISIL, the fund has beaten indices over 3 years and  5-year trailing returns. In the 1 and 2 year category, has been below the indices in many cases. It is a good investment with high-risk appetite. It has also given the highest return in the SIP for 10 years category. Investment details – This is a mid-cap, small-cap heavy fund, aims to generate wealth over long term. Fund manager looks for value buy of stocks with bottom-up stocks picking approach. The portfolio is well-diversified and spread across sectors. 

#Axis Long Term Equity Fund

With an AUM over 9,900 crores as of 20^th Jan 2017, it leads the ELSS scheme in the top position. It has lagged in last 1 year in comparison to its peers and indices, but over 3 years, 5 years returns it is in the top 5 ranks. 

Investment details – The scheme aims to generate regular long-term capital growth from a diversified portfolio of equity and related securities. It invests in companies with strong growth and sustainable business model. It has equity exposure up to 95%, given some trailing returns in the short-term but expected to even out over long term. It is still a good choice. It avoids buying companies which have excessive business uncertainty on account of cyclical, regulatory, political risks.

#Birla Sunlife TaxRelief 96   

A fund with good pedigree has a defined track history over20 years has a AUM of 2.3 thousand crore belong to good fund pedigree. In last 1year, it is trailing the index. While in 2, 3, 5 years returns, it has beaten indices return with significant margin. It has generated over 100% return over years. Investment details- It is a multicap fund with well-diversified portfolio. However, fund has a cyclical stock bias, which has its own effect on return cycles. Well diversified in its approach, the top 5 holdings only account for 26% of the portfolio.

#Franklin India Tax Shield

A fund with a track record over 7 years has been at par with index returns for 1 year and for over 2,3 and 5 years it has performed well above indices. This fund tends to be less volatile compared to its peers. Investment details- The process of the fund house is robust. This fund is known for having conservative approach, bottom-up style of stock picking and having growth style of investing. The fund with a large-cap bias which accounts for almost 60% of the portfolio has a 25% exposure in mid-cap, small-cap category.  Well diversified in portfolio construction, the top 5 holdings accounts for only 26% of the portfolio. 

Don’t break your head over minute investment return details, it is a game of sector allocation, Mkt-cap of companies and economic cycles. Choose a fund with a basic research and your investment style as criteria. #ELSS is nothing but an equity mutual fund and over long-term it is expected to give good returns, which also provide #tax benefits under income tax act, section 80C. However, it is advised to consult a professional financial planner before investing.

http://www.mymoneystreets.com/2016/11/include-dynamic-asset-allocation-funds.html