Tuesday, October 18, 2016

Sensex is down 5% but your MF may not be so...How?? Find out

Dear Investor,

Sensex has touched all time high of 29,045 on 8th September 2016 closing, as far as this year is concerned. From that level till yesterday it falls 1,516 points which is -5.22%.

In the same time, BSE Midcap falls only -1.24%, whereas BSE Small cap delivered 2.27% higher.

This will be hardly noticed by the common investor, some of our IFA community as well.

Markets are always dynamic and if somebody keep looking at the number, they will be in a better position to understand what is moving and what is not, which is very important when it comes to fund selection.

I have listed down 50 funds across the category which is normally advised by many of my IFA friends.

Reliance Small cap
DSPBR Microcap
L&T Emerging Business
MOSL Focused Long Term
L&T Midcap
Sundaram SMILE
Mirae Emerging Bluechip
Kotak Midcap
BSL Pure Value Fund
DSPBR Small & Midcap
BSL Equity
Invesco Mid N Small
L&T India Value
Sundaram Select Midcap
Franklin Smaller Co
Mosl Midcap 30
UTI Midcap
Principal Emerging
IDFC Sterling
SBI Magnum Balanced
Mosl Multicap 35
Franklin Prima
DSPBR Balanced
HDFC Midcap Opp
IDFC Premier
L&T India Prudence
BSL Balanced 95
HDFC Prudence
ICICI Pru Balanced
Tata Balanced
IPru Balanced Adv
ICICI Pru Multicap
DSPBR Equity
Reliance Reg Savings Bal
IDFC Classic
IDBI Diversified
SBI Bluechip
Franklin Balanced
Mirae India Opp
HDFC Equity
DSPBR Focus 25
Franklin Prima Plus
UTI Opportunities
HDFC Top 200
DSPBR Top 100
BSL Frontline
IPru Value Discovery
Franklin Bluechip
IPru Focused Bluechip
IPru Select Largecap

Some Interesting Observation

1. Small cap and Microcap fund has delivered more return than small cap index, though mentioned funds are not exactly belonging to this index.
2. Midcap index is down by -1.24%, whereas many midcap funds delivered positive return.
3. Sensex falls -5.22%, all the large cap fund falls lesser than the index.
4. Balanced fund delivered FLAT to -1.5%, which is very good as far as, those who seek monthly cash flows are concerned.
5. Multi cap protected downside as well as delivered good returns. Somebody wants stable return.
6. ICICI Pru Value discovery is lagging compared to BSL Pure Value and L&T India Value Fund. BSL and L&T is continuously getting momentum in that category! One of the reason could be size, it is always debatable.
7. When am writing around 9.30 am today, the market is already 200 points up. As long as your waiting period is 3 plus years, don't bargain for minimal correction, sometime you were forced to buy at high level or you will never buy also!
8. Still small cap are trading at discount to the 2008 peak and everyone is worried about the valuation. More than the cap, stock selection is the key. Many fund houses have increased their research analyst head count in the recent past.
9. Rise and falls are very quick in the bull market, instead of looking for news, micro and macro data, numbers at various point will give you better clarity I believe. This data will help you to do lot of strategy going forward.
10. Last, but not the least "No fund manager is keeping the same stock for longer years in their portfolio due to volatility of the stock performance. In some cases, if it grows bigger than they expected they have to reduce their weight to comply regulation. In some cases, they have to match their performance with the peer group. These kind of data really helps to take better informed decision than ever before.

I thank Mr.
B. Padmanaban, CFPCM 
of www.fortuneplanners.com  for his help in generating the article. 

Srikanth Matrubai,   CEO, SriKavi Wealth 

Mobile: 9972520155

Friday, October 14, 2016

Don't delay your Investment

The cost of delaying your savings/investment is deadlier than even inflation.
The earlier you put your money to work, the more it earns for you. The earlier you invest, the earlier your money starts working for you.
So, instead of investing more money later in your life, invest small now to achieve the same desired target corpus.

Tuesday, October 11, 2016

Take charge of Your Financial Future

I wish I had learnt more about the power of compounding – I am paying the price for not learning about compounding. this meant I have less money
I did not BOTHER to learn the difference between Savings and Investments so I just saved did not invest
I did not BOTHER to learn that Income funds helps one to defer tax by a huge time and that would be smarter
I did not BOTHER to learn about medical insurance so ended up footing the whole bill myself
I did not BOTHER to tell my ……..that I will help them only for essentials NOT FOR extravagant functions/festivals
I did not BOTHER telling my relatives about medical insurance – so I   had to bear their medical expenses/emergencies
I did not BOTHER to find out that LIC policies were good for the agent and not for me
I did not BOTHER to find out what my broker was doing so I actually do not know whether he cheated me or it was my GREED
I did not BOTHER to sit and calculate and tell my wife how much we need for our other GOALS – so we bought a big house
I did not BOTHER to tell my wife and children what kinda wedding / education we could afford
IT HURT MY EGO to tell my daughter that I could not pay her fees for studying abroad
Till I saw your blog (which was when I turned 43) I did not know that my PF was not ENOUGH for retirement
Simple message: Take responsibility. Take charge of your money. Take charge of your money life. Get a Good Advisor

Friday, September 16, 2016


Home Loan @ 0% Interest

Dear friends,

You all must be paying home loan EMI for your dream home....
Have Ever thought of a way to get all the principal and interest back when u finishes ur EMI....
No na...
Is it possible.
Lets find out...

Invest 10% extra of your Home Loan's EMI in mutual fund Equity SIP and all your home loan principal and interest will recovered with profit in 20 years.

Example: For Home Loan of 20 Lac for 20 Years with ROI 9.5%( assumed)
EMI will be Rs. 18863/- ( image attached below for ref)

In 20 Years one will pay total towards Home loan will be
Rs. 44,74,320=00

Principal: 20,00,000=00 &
Interest:   24,74,320=00
Total -       44,74,320=00
Image attached....

Saving of just 2200/- per month in  addition to ur EMI for 20 Years with a return of 18% CAGR
u will get. 51,55,672/-

( SIP in Diversified MF has given avg return 20% plus in Last 20 years from 1995 to 2015)

Sip of 2200*240= 5,28,000

Principal: 20,00,000=00
Interest:   24,74,320=00 &
SIP amt:  05,28,000=00
Total -      50,02,320=00

Thus you get back all your principal and interest back...plus earn a cool profit too!!!
Kool na🍻
So start ur SIP now...

🎯 Start your SIP now and enjoy interest free home loan.

FOR THEM, I calculated at 15% CAGR....

So here goes...
 If you avail Home loan of 10 lacs for 20 years with an interest rate 9.5% your.....

Monthly EMI: Rs. 9,321.31/-
Principal Amt : Rs. 10,00,000/-
Interest Payable : Rs. 12,37,144/-
Total Amt Payable: Rs.22,37,115/-

πŸ’’ Now to get back your interest you just have to keep aside 0.20% of your home loan amount.
ie 0.10% of 10,00,000/- is 2,000/- per month till the tenure of your home loan.

Start an SIP Till the tenure of your home loan with the amount you are keeping aside. (ie Rs. 2,000/-)

πŸ’’what will be value of Rs. 2,000 pm @15% if invested through SIP❔

After 20 years➡

 Principal Amt: Rs. 4,80,000/-
Value@ 15%: Rs. 26,54,147/-

In Home Loan you pay an Interest + Principal of Rs. 22,37,144/- in 20 years.

While in Mutual fund SIP you generate a wealth of Rs. 26,54,147/- which is more than the Interest amount you are paying in next 20 years.

🎯 Start your SIP now and enjoy interest free home loan.

Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Saturday, July 2, 2016

RELIANCE ANYTIME MONEY CARD (ATM CARD) - Truly Revolutionary with New Features

With new Features that are going to be added to the RELIANCE ANYTIME MONEY CARD (popularly known as RELIANCE ATM CARD), a revolution is on cards with funds expected to pour into Liquid Funds from SB A/c.
Lets get to know these features but before that let us try to understand whether we need Liquid Funds at all.


I have always advocated that EVERY investor regardless of his Financial Stature should mandatorily have a Liquid Fund in his portfolio. This fund could be for his Emergency, for his Day to day expenses, anything that is needed at a short notice.

Why Liquid fund and not a SB A/c?
We have discussed this many times before but still I would like to do so one more time for the new readers that keep pouring into my Blog every day.

There has been and there will always be a gap of 1% in FAVOUR of Liquid Funds.
In fact, majority of Liquid funds have giving returns on par with Fixed Deposits and we all know that FD returns are more than SB A/c returns.

Liquid Funds invest in Very Short Term Market instruments and thus are the least risky and least volatile category of Funds

It is only when you have LARGE amount (like in excess of Rs.1 lakh) that some Banks offer you higher interest (6% or so) where as Liquid Funds irrespective of your investment give you the same return without any bias.

And now, coming to RELIANCE MONEY MANAGER FUND (the ATM facility is however, available for ALL RELIANCE MUTUAL FUNDs), the advantage over Savings Bank Account is that you not only get all the Convenience of a Regular SB A/c but also potential Higher Returns!

Actually RELIANCE MONEY MANAGER FUND and RELIANCE LIQUID FUND is treated as Primary Fund and all the other funds you have invested in Reliance AMC schemes (like say Reliance Pharma Fund, Reliance Growth Fund) will be secondary funds.


Clicking on the reliance mutual website https://www.reliancemutual.com/investor-services/innovative-products/reliance-any-time-money-card will give you a long lengthy list of features being given but some of the prominent ones which made me personally put my money in RELIANCE MONEY MANAGER FUND are : 

1. Cash withdrawal Facility at any Visa enabled ATMs
2. Purhase Transactions at Merchant Establishments
3. Withdrawal of upto 50% of Balance in Primary Scheme (say, Reliance Money Manager Fund) or Rs.50,000 (whichever is lower)
There is absolutely no charges for using this Card Facility.

HOWEVER LIKE A "SONE PE SUHAGA" Reliance AMC has gone ahead and made some changes and added new ones which has made the RELIANCE ANYTIME MONEY CARD an absolute MUST HAVE in any investors portfolio.

The new features are :

1. The Withdrawal Limit has now been enhanced from Rs.50,000 by 4 times to Rs.2,00,000
Wow! Keeping with the times., eh

2. If the investor is redeeming the money from Reliance Mutual Fund's app SIMPLY SAVE (which is so easy to transact), the investor can redeem upto 95% of his investment with just a click of button on his Mobile!
How more simple can redeeming your funds can get??!!

3. Third and the BIGGEST feature that has been added is that about the Redemption.
Normally, in any Liquid fund, the redemption proceeds get credited to your Account the Next Working Day (T+1).
But, now, Reliance has promised that your Redemption Proceeds from the RELIANCE MONEY MANAGER fund will get credited to your SB A/c within 30 minutes (yes, you read it right, within Thirty minutes)....How fast can it get?

The new Features introduced in Reliance ATM Card has made the product more appealing.
I am no salesman for Reliance Mutual Fund but I am ready to become one simply due to this amazing features that Reliance AMC added.
So, what are you waiting for???
Switch your money laying in the Savings Account to RELIANCE MONEY MANAGER FUND/RELIANCE LIQUID FUND right now and enjoy.

So, in a nutshell, the new features are :

Reliance Mutual fund has introduced instant redemption in flagship fund Reliance money manager fund. Investor will receive credit in their account within 30 Mts of submitting redemption request through Reliance website. It works 365 days and 24x7. Bank should be IMPS enabled.
Maximum amount is 200000/- or 50% of the current value whichever is lower.

Maximum redemption amount is lower of
95% of fund value in Reliance Money Manager OR
Rs.2 lakhs

As usual, you are requested to contact your Financial Advisor before taking any Investment Decision and the Author is not liable for losses arising out of any Transaction taken due to the above article or any material published in this blog. The information shared here is only a point of view and for information purose only.