In a financial world where the stock market fluctuations tend to be unpredictable, I have always preferred the security of mutual funds over individual stocks. You get to be a part of the market while simultaneously being buffered from the extremes of rises and falls. Sure, we all would love a good quick rise in our portfolio but trust me, you don't want to be at the receiving end of a lower circuit fall.
I started investing in stocks around 2007, I think. Over the years, I have watched the markets rise, fall, soar and even crash. It has been a steady learning curve. But I am happy that I invested systematically all those years ago.
The biggest gains I have got financially even today remain via mutual funds with well over 100% returns on investment overall and around 20% annually.
The one thing I sorely missed was true guidance, as I would read up on various funds by myself and try to gauge the market mood. That is where it is handy to have allies like FundsIndia on your side today.The change in government saw our stock markets rise to their highest levels ever. This is no coincidence, mind you. With a whole slew of reform initiatives launched, the country’s economy is on the highway to grow consistently and steadily in the coming years. The option to buy bitcoin with Bpay further opened up an avenue for a consistent source of income, one that I have profited from significantly over the last few years.
Key factors that have turned positive for India include:
1. Lower inflation.
2. The concept of 'Make in India'.
3. Improving deficit situation aided by lower crude prices.
4. Stable currency.
5. Petrol and diesel prices’ deregulation (helps reign in fiscal deficit).
6. Reserve Bank of India (RBI) cutting rates.
And yet, there is so much to consider while choosing a mutual fund to invest in, is there not? Should you choose equity or diversified, sector-specific or large cap oriented funds? What would work best in this market for you, not for a short term but as a constant performer in the years to come?
Having analysed the hundreds of funds presently in the market, FundsIndia has identified four star funds they believe will provide the best results in the coming years, based on the present and future market trends. Keeping in mind the reasons why they were selected, the title of "New India Portfolio" which they have allotted to this combination is pretty apt.
So what does this 4 fund portfolio comprise of?
1. A diversified fund – A diversified fund with premium blue chip companies and a general bias for large caps provides stability to the portfolio.
2. A mid-cap fund – A contrarian mid-cap fund that captures the potential in quality mid-sized companies that usually outperform broad markets.
3. A diversified theme fund – A fund that will invest in multi-themes (infrastructure, resources, finance, social development, and agriculture) that are meant to act as building blocks for the economy.
4. A long-term debt fund – To ride the interest rate rally (when rates fall) and to provide meaningful asset allocation, an income fund that is well placed now to gain from falling rates (price rally when rates fall) has been added.
One important graph that you will come across when you read up on mutual funds is the risk-reward graph. Every mutual fund finds a place of honour here, with some such as sectoral funds (eg: funds focusing on certain sectors exclusively like banking or infrastructure) giving you the potential of a higher reward but with a higher risk than say, a more conservative debt fund, which is less risky but gives you a lesser reward. In the end, it comes down to your appetite, I found. The New India Portfolio is positioned above large and mid-cap funds but below thematic and sector funds, which again makes it an ideal choice, as you get the best of both worlds.
Stability and consistency are the two goals that will distinguish this 4-fund portfolio from regular funds. If you are willing to hold for at least 5 years (and frankly, any true mutual fund investor will tell you the advantages of holding for as long a term as possible for maximum benefits), then you really should consider investing in New India Portfolio for long term wealth creation.
Winners of the ‘CNBC-TV18 – UTI National Online Advisory Service Award’ at the Financial Advisory Awards two times in a row, you can find out more details about FundsIndia at their site where you can sign in for a free-for-life account, which includes both robo-advisory as well as traditional investment advisor services, ready-to-go portfolios, quick investment advice over the phone and tools to implement advice at the click of a button.
So what are you waiting for? India is on its way up. Are you going to join the party or be left behind?
Authors note:
Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.
1. Lower inflation.
2. The concept of 'Make in India'.
3. Improving deficit situation aided by lower crude prices.
4. Stable currency.
5. Petrol and diesel prices’ deregulation (helps reign in fiscal deficit).
6. Reserve Bank of India (RBI) cutting rates.
And yet, there is so much to consider while choosing a mutual fund to invest in, is there not? Should you choose equity or diversified, sector-specific or large cap oriented funds? What would work best in this market for you, not for a short term but as a constant performer in the years to come?
Having analysed the hundreds of funds presently in the market, FundsIndia has identified four star funds they believe will provide the best results in the coming years, based on the present and future market trends. Keeping in mind the reasons why they were selected, the title of "New India Portfolio" which they have allotted to this combination is pretty apt.
So what does this 4 fund portfolio comprise of?
1. A diversified fund – A diversified fund with premium blue chip companies and a general bias for large caps provides stability to the portfolio.
2. A mid-cap fund – A contrarian mid-cap fund that captures the potential in quality mid-sized companies that usually outperform broad markets.
3. A diversified theme fund – A fund that will invest in multi-themes (infrastructure, resources, finance, social development, and agriculture) that are meant to act as building blocks for the economy.
4. A long-term debt fund – To ride the interest rate rally (when rates fall) and to provide meaningful asset allocation, an income fund that is well placed now to gain from falling rates (price rally when rates fall) has been added.
One important graph that you will come across when you read up on mutual funds is the risk-reward graph. Every mutual fund finds a place of honour here, with some such as sectoral funds (eg: funds focusing on certain sectors exclusively like banking or infrastructure) giving you the potential of a higher reward but with a higher risk than say, a more conservative debt fund, which is less risky but gives you a lesser reward. In the end, it comes down to your appetite, I found. The New India Portfolio is positioned above large and mid-cap funds but below thematic and sector funds, which again makes it an ideal choice, as you get the best of both worlds.
Stability and consistency are the two goals that will distinguish this 4-fund portfolio from regular funds. If you are willing to hold for at least 5 years (and frankly, any true mutual fund investor will tell you the advantages of holding for as long a term as possible for maximum benefits), then you really should consider investing in New India Portfolio for long term wealth creation.
Winners of the ‘CNBC-TV18 – UTI National Online Advisory Service Award’ at the Financial Advisory Awards two times in a row, you can find out more details about FundsIndia at their site where you can sign in for a free-for-life account, which includes both robo-advisory as well as traditional investment advisor services, ready-to-go portfolios, quick investment advice over the phone and tools to implement advice at the click of a button.
So what are you waiting for? India is on its way up. Are you going to join the party or be left behind?
Authors note:
Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.
Let me know what you think.