Bharti AXA Life Young India Plan

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FEATURES: Bharti Axa Life Young India Plan is a regular premium and traditional participating plan. This plan is specially designed for the young and offers life cover risk till the insured reaches retirement age of 60.

The policy matures at 60 years of age.

ENTRY AGE: You need to be at least 18 years old to buy this policy and not more than 40 years. The minimum annual premium is Rs 8,000.

COVERAGE: You have an option to increase the sum assured or life cover at two important milestones, to be decided by you, such as marriage or childbirth. However, you will have to shell out additional premium for the additional coverage. Additional sum assured cover will terminate when policyholder attains 50 years of age.

For example, for a 25-year-old male, for a base sum assured of Rs 2,00,000 premium will be Rs 11,678. In case he opts to increase life cover at the first milestone after his wedding at the age of 31 by Rs 8,00,000, he will be charged an additional annual premium of Rs 1,688. If he chooses to raise his life cover by Rs 40,00,000 at the second milestone of childbirth, the additional annual premium will be Rs 9,440.

MONEYBACK: Money can be claimed after completion of three policy terms. The amount will depend at the time the claim is made. The minimum amount will be 10 per cent and the maximum is 29.5 per cent of the base sum assured.

SURRENDER BENEFITS: Surrender benefits are available only after completion of three years. The insurer is obligated to pay only 30 per cent of the premium paid (excluding first-year premium). It could also pay a special surrender value. Bonus accumulated will be paid.

DISCOUNT: You get a marginal discount of 5 per cent on premium if you choose a base sum assured of Rs 5,00,000 lakh or more.

MATURITY BENEFIT: The policy matures when you turn 60 years. At maturity, you will receive 200 per cent of the base sum assured plus accrued bonuses, if any.

LOAN: A loan can be availed against this policy, provided the first three years' premiums have been paid in full and the policy has acquired surrender value.

Anyone who has financial responsibility must buy a term plan with significant life cover so that in case of an unfortunate event in the future, the interest of the family can be safeguarded. There are no maturity benefits in a term plan. This plan has limitations because the additional life cover terminates at 50 years, which is hardly a time when all responsibilities are met.

Considering the premium paid, the returns on the premium paid may not be very satisfying.

 

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1. Largecap Funds        Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds     Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds    Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds             Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds              Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Gold Mutual Funds             Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

Capital Protection Funds - A closed ended debt mutual fund

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Capital protection funds are back. ICICI Prudential Mutual Fund and Tata Mutual Fund have recently launched these schemes. These funds are coming at the right time when volatility is the order of the day on Dalal Street, and many investors are desperate to preserve their capital. Look at these numbers: S&P CNX Nifty returned 2.9% in the past five years, making investors revisit their assumptions of long-term investing. A weak rupee and the credit crisis in Europe have made it even more difficult to guess the future course of the market. This is where the capital protection schemes enter the scene. Capital protection oriented funds make good investment option in volatile markets. The fixed income portfolio ensures that investors get their money back at maturity and the equity allocation brings the return kicker.

How They Work?

A capital protection oriented fund (CPOF) is a closed-ended debt mutual fund that aims to invest a significant amount of money in top-rated fixed income instruments and rest in equities. The tenure of the scheme can be one, three or five years. This investment along with the interest would ensure that the investor gets his capital back on maturity. The modest equity component is expected to be the icing on the cake.

Assume there is a three-year CPOF. The fund manager gets 8% interest per year on three-year AAA-rated papers. Around 80% of the money deployed in such AAA-rated papers ensures that investors get their money at the end of the third year, as interest on these investments accumulate. According to CRISIL default study 2011, from 1988 to 2011, no AAA-rated instrument defaulted over one-, two- or three-year period. This makes a strong case that the money comes back to investors at the end of the third year. Rest 20% of money is invested in equities. If over three years this investment appreciates 20%, the portfolio value becomes 124 (fixed income portfolio worth 100 plus equity portfolio of 24) over three years, a CAGR of 7.43%. If equity investment doubles over the three-year period, investors take home 40% point-to-point return, or a CAGR of 11.87%.

As the tenure of the scheme increases, allocation to equities also goes up as less money is required to ensure the capital at the end of the tenure, compared to a scheme with a shorter tenure.

Should You Invest?

Markets have been range bound with downward bias for the past couple of years. Most of the negatives are already in the price. The attractive valuations of Indian equities make good investment case with a three-year view. If you are keen on investing in stocks, but really worried about the downside risk, you can consider investing in a capital protection oriented fund. These funds make sense for risk-averse investors looking for options to invest in equities, provided they are willing to remain invested throughout the term of the scheme.

Downside

But capital protection oriented funds have some disadvantages as well. Being a closed-ended scheme, it is listed on the stock exchange and there is little chance that you will get to exit at fair value because of the poor liquidity of most such products listed on the exchanges. The second big disadvantage is that these funds are taxed like debt mutual funds. Long term capital gains are taxed at 10.3% without indexation or 20.6% with indexation, whichever is lower. Also, according to mutual fund experts, the performance of these schemes has been a mixed bag. There are 45 capital protection oriented funds across 11 fund houses listed on the stock exchanges.


If you do it yourself, you need not sacrifice liquidity all together and can bring down the tax impact, too. You can pick up a combination of three-year fixed maturity plan from a reputed fund house and an equity fund with good track record. Decide your extent of investment in the FMP by looking at the prevailing yields for that tenure and invest the rest in equities. For example, in case of the three-year tenure, if the yield for the three-year paper is around 8%, you should put 80% of your corpus in FMP. For 7% and 9% the share of FMP should be 82% and 77% in your money. Rest of the money goes into an equity fund. Here the tax impact will be lower than CPOF, but money invested in the FMP won't be liquid. If you are in the lowest tax bracket, you can also consider investing in a combination of a bank fixed deposit and an equity fund. But if you don't have time to zero in on the right schemes and find mathematics difficult, opt for a CPOF. 

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Best Performing Mutual Funds

1. Largecap Funds                           Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds              Invest Online
1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
3. Mid and SmallCap Funds          Invest Online
1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
4. Small and MicroCap Funds        Invest Online
1. DSP BlackRock MicroCap Fund
5. Sector Funds                                 Invest Online
1. Reliance Banking Fund
2. Reliance Banking Fund
6. Gold Mutual Funds                     Invest Online
1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

 

Bharti AXA Regular Return Fund - Change in Fund Manager

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Bharti AXA Mutual Fund has changed the fund manager of Bharti AXA Regular Return Fund, with effect from May 21, 2012. Now, Mr. Alok Singh, Chief Investment Officer-Fixed Income will be designated as the fund manager in place of Mr Ramesh Rachuri & Mr Gaurav Kapur

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Invest Mutual Funds Online

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Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online
1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online
1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online
1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online
1. Reliance Banking Fund
2. Reliance Banking Fund
5. Gold Mutual Funds Invest Online
1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

 

Know your Insurance objectives

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THERE are a few assumptions that need to be changed when it comes to the area of insurance. Looking at these details while taking an insurance decision will help in deciding the list of policies to build the required insurance cover, as well as tackle the changing situation over a period of time. Here is a look at some of these areas for a proper decision when required.

 

Insurance and returns: One of the first things that most people want is some form of return from their insurance policy.

This is not necessary as there are different types of policies with different set goals. If there is a savings policy, it will generate some returns, but when it comes to other types of policies like a term plan, there is no question of any returns.

Term policies are meant for the general protection of the family members or dependents in case of death of the breadwinner of the family and, hence, there will be a large payout of premium. Thus, the nature of the policy has to be seen to measure the returns.

 

Higher insurance is required: One of the things that a lot of people believe in is that there has to be a high insurance cover present, but this is not always the case. If there is just a single dependent on the individual, and the financial condition is such that a certain amount of insurance cover would be required, then the moment the amount requirement is fulfilled, there is no need to undertake any more action.

In many cases, even though the total insurance cover is adequate, just because there is a need to generate higher business, there is advice given to the individual to take another insurance policy to increase the total figure. This can lead to a situation where they will actually have more insurance than what they actually require.

 

All goals can be achieved through insurance: There is also a tendency among people to look at objectives and then try and achieve the same by using insurance policies.

 

Think about the fact as to whether you use equities or gold for every goal that you want to achieve, and the answer would be no. Similar should be the condition when it comes to insurance. There is a way in which the insurance policies are structured and positioned, but this does not mean that the individual has to use them in that particular way. What is important is that the person has to see the actual use to which the policies can be put to, and then match what can be done with what is available.

 

Think long term: Another thing to consider while taking an insurance policy is to look at the long term situation, and not just think about the next three or five years. Once this kind of perspective is available, it would be easier to decide on the insurance policies, for your different needs. This will also help in realising the true benefits of the instrument, and in getting the best out of the situation.

--------------------------------------------- Invest Mutual Funds Online Transact Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Fund Application Forms Best Performing Mutual Funds Largecap Funds        Invest Online DSP BlackRock Top 100 Fund ICICI Prudential Focused Blue Chip Fund Birla Sun Life Front Line Equity Fund Large and Midcap Funds     Invest Online ICICI Prudential Dynamic Plan HDFC Top 200 Fund UTI Dividend Yield Fund Mid and SmallCap Funds    Invest Online Reliance Equity Opportunities Fund DSP BlackRock Small & Midcap Fund Sundaram Select Midcap IDFC Premier Equity Fund Small and MicroCap Funds             Invest Online DSP BlackRock MicroCap Fund Sector Funds              Invest Online Reliance Banking Fund Reliance Banking Fund Gold Mutual Funds             Invest Online Relaince Gold Savings Fund ICICI Prudential Regular Gold Savings Fund HDFC Gold Fund

 

 

ICICI Prudential US Bluechip Equity Fund from ICICI Mutual Fund

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ICICI Mutual Fund floats India's first US-dedicated equity fund

A first-of-its-kind product, ICICI Prudential Asset Management on Tuesday announced the launch of the country's first US dedicated equity fund, ICICI Prudential US Bluechip Equity Fund.

The fund will be investing in widely diversified bluechip companies listed on the New York Stock Exchange and Nasdaq, top company officials said at a news conference.

"We would be allocating funds in companies listed on S&P 500, with market capitalisation in excess of $4 billion" said Nimesh Shah, MD and CEO at ICICI Prudential AMC.

The new fund offer, which will be open for subscription from June 18 to July 2, will

give an opportunity to Indian investors to diversify their portfolio by investing in companies in the US, representing more than 33 per cent of the world market capitalisation.

"We are interested in companies which have competitive advantage in the world such as Microsoft, Yahoo! and pharma companies like Pfizer," said Himanshu Pandya, VP and head – products and communication, ICICI Prudential AMC.

Additionally, the fund provides an opportunity to Indian investors to sectors like semiconductors, aerospace, which may not be available in India, the company said in a media release.

ICICI Prudential AMC has also entered into a tie up with Morningstar, which will provide research inputs on the US firms.

Among the other benefits, the fund offers diversification advantage as it would invest in a low correlated market, while offering an exposure to global currency like the US dollar.

The present US market reflects political stability, strong corporate governance, sound financial accounting and fewer challenges than in other parts of the world. The fund also offers investors the option to invest through a systematic investment plan (SIP).

New product ICICI Prudential US Bluechip Equity Fund will invest in firms listed on the NYSE and Nasdaq Investors can invest in sectors like semiconductor, aerospace, which may not be available in India The new fund offer for the scheme will be open for subscription from June 18 to July 2

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Invest Mutual Funds Online

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Download Mutual Fund Application Forms

Best Performing Mutual Funds

1. Largecap Funds        Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds     Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds    Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds             Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds              Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Gold Mutual Funds             Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund

 

ING Large Cap Equity Fund

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Large cap stocks are the leaders having higher market caps. They enjoy an edge over their mid-sized peers as they are well established, have stable revenues, usually well researched and are more predictable compared to highly volatile mid caps. The most noteworthy of them is their ability to provide stability to the investor's portfolio, during turbulent stock market conditions. Large cap funds are mandated to invest in large cap stocks and tend to outperform the funds in other category during uncertainty of the equity markets. Large cap funds are thus favoured during turbulent times of the equity markets as they are capable of providing stability to one's portfolio.

ING Large Cap Equity Fund (ILCEF) (erstwhile known as ING Nifty Plus Fund), is one such open-ended equity fund from the stable of ING Mutual Fund. It follows a blend style of investing. ILCEF predominantly invests in equity and equity related securities of large cap companies in India, along with money market instruments to manage its liquidity requirements. The fund was launched in February 2004 and has been in existence for a little over 7 ½ years now.

It is noteworthy that the fund has undergone changes in its fundamental attributes from March 25, 2011. Earlier the fund was classified as an open ended index linked equity Fund while now it is classified as an open ended equity fund.

Primary investment objective of the fund is "to seek to provide long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities constituted in the S&P CNX Nifty Index. There can be no assurance that the investment objective of the Scheme will be realized".

The fund is mandated to invest predominantly in stocks forming the S&P CNX Nifty and a small portion of the net assets may be invested in the stocks falling outside the index. The fund abides itself to invest minimum 70% of the corpus in equities including the maximum exposure of 20% to stocks falling outside S&P CNX Nifty. Fund may also invest in cash and money market instruments to manage liquidity with maximum exposure of 30% of its corpus.

 

Equity Portfolio

Holdings	June 2011	July 2011	Aug 2011	Sept 2011	Oct 2011
ITC Ltd.	6.5	7.3	8.7	8.9	9.1
Reliance Industries Ltd.	6.6	6.7	6.9	7.0	7.2
ICICI Bank Ltd.	8.3	9.5	6.9	5.6	6.7
Infosys Ltd.	7.7	8.0	6.4	7.1	6.2
HDFC Bank Ltd.	4.7	5.0	6.3	6.5	5.5
Tata Consultancy Services Ltd.	3.7	3.9	3.9	4.0	4.1
Tata Motors Ltd.	2.1	2.2	2.1	2.2	3.8
HDFC Ltd.	5.2	4.0	5.3	4.2	3.3
Bharti Airtel Ltd.	1.9	2.3	3.4	3.3	3.2
Larsen & Toubro Ltd.	4.6	4.8	4.9	4.3	2.7

 

The table above reveals that ILCEF' portfolio holds some of the most liquid large caps. Its latest portfolio (as on October 2011) comprises of 36 stocks, of which mere 6% are the 'B' group stocks while the rest (94%) are the group ones. The investment mandate of the fund attempts to minimise the risk arising from the poor stock selection and invests predominantly in widely researched index stocks along with derivatives in order to hedge the portfolio, thereby enhancing investors' interest.

The top-10 stocks account for 51.77% of its total holding, whereas the top-5 sectors account for 48.26% of the portfolio. The fund manager refrains from churning the portfolio quite often as revealed by the portfolio turnover ratio of 0.81 times.

 

How ILCEF has fared vis-à-vis its peers?

Scheme Name	6-Mth (%)	1-Yr (%)	3-Yr (%)	5-Yr (%)	Std. Dev. (%)	Sharpe Ratio
Principal Large Cap(G)	-11.5	-19.8	28.4	8.1	7.66	0.24
Franklin India Bluechip(G)	-6.1	-11.2	27.2	9.4	6.73	0.25
Birla SL Frontline Equity(G)	-8.9	-17.1	25.6	9.8	7.47	0.22
ICICI Pru Top 100(G)	-7.8	-13.8	21.9	6.1	6.47	0.21
ING Large Cap Equity(G)	-8.4	-16.8	20.5	4.7	7.36	0.17
Reliance Vision-Ret(G)	-16.0	-25.4	18.9	5.0	7.48	0.18
S&P CNX Nifty	-9.3	-17.6	20.8	5.1	7.76	0.17

The table above reveals that ILCEF's performance has not been very luring so far. Even though over a 3-Yr and 5-Yr time frame, the fund has clocked a return of 20.5% CAGR and 4.7% CAGR respectively, the fund has underperformed its benchmark – S&P CNX Nifty Index and most of its peers under both these time frames.

On the volatility front ILCEF has certainly exposed its investors to low risk (as revealed by the Standard Deviation of 7.36%), but the risk-adjusted returns (as revealed by the Sharpe Ratio of 0.17) clocked too have been middling and nothing to vie for when compared to its peers.

 

Fund Manager Profile

Name of the Fund Manager	Mr. Ramanathan K.
Total Work Experience	Over 12 years
Managing the fund since	May-11
Qualifications	CFA,PGPM, B.E(Mech)

ILCEF's performance has not been very luring so far. Even though over a 3-Yr and 5-Yr time frame, the fund has clocked a return of 20.5% CAGR and 4.7% CAGR respectively, the fund has underperformed its benchmark – S&P CNX Nifty Index and most of its peers under both these time frames. Despite having a flexibility of investing up to 20% of its assets in non-index stocks fund has failed to outperform the S&P CNX Nifty. Moreover, it has not generated any risk adjusted returns in excess of those generated by S&P CNX Nifty. It defeats the principle of active fund management. The high expense ratio of 2.50% has also eaten into the returns generated by the fund.

Merely investing in a large cap fund neither assures you success in mutual investing nor it exposes you to lesser risk. But selection made after doing in-depth analysis certainly enhance your chances of generating competitive returns at lower risk.

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Download Mutual Fund Application Forms from all AMCs

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Best Performing Mutual Funds

1. Largecap Funds:
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds
1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
3. Mid and SmallCap Funds
1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
4. Small and MicroCap Funds
1. DSP BlackRock MicroCap Fund
5. Sector Funds
1. Reliance Banking Fund
2. Reliance Banking Fund
6. Gold Mutual Funds
1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund