Asset allocation

Asset allocation is like the engine behind your investment journey. It’s not just about picking the “best” fund, but about spreading your money across equity, debt, and other categories in a mix that matches your goals and risk appetite. Equity can fuel growth, debt can bring stability, and liquidity keeps you flexible. By balancing these smartly, you can reduce the impact of market ups and downs while still staying on track for your long‑term plans. Think of it as designing your own portfolio recipe—measured, balanced, and made for you. 

Smart investing = balanced investing.

Right mix of equity + debt keeps you steady even in market swings.

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Ritesh Sheth | myfundguide.com | AMFI Registered Mutual Fund Distributor (ARN-0209)

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Flexicap funds

Flexicap funds are like giving your fund manager a free pass to explore opportunities across large, mid, and small-cap companies. Unlike multicap funds where allocation to each category is fixed, flexicaps allow shifting between segments depending on where growth potential looks stronger. This flexibility can help investors ride different market cycles more smoothly. For someone who wants equity exposure but doesn’t want to worry about deciding the right market cap mix, flexicaps can act as a simple “all-in-one” option. Of course, the key is still discipline and long-term perspective—flexibility works best when you give it time.

👉For mutual fund investment in regular plans or any mutual fund related queries in Mumbai, message myfundguide WhatsApp chatbot at +91 85919 64099. Save the number, send ‘Hi’.

Visit: https://myfundguide.com for more details.

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Ritesh Sheth | myfundguide.com | AMFI Registered Mutual Fund Distributor (ARN-0209)

Mutual fund investments are subject to market risks. Please read all scheme related documents carefully.

FIRE (Financial Independence, Retire Early)

FIRE: Achieving Financial Independence and Retiring Early

The FIRE (Financial Independence, Retire Early) movement has gained popularity in recent years, promising individuals the freedom to pursue their passions without being tied to a 9-to-5 job. But what exactly is FIRE, and how can you achieve it?

What is FIRE?

FIRE is a lifestyle and investment plan that aims to help individuals achieve financial independence and retire early, often in their 40s, 30s, or even 20s. It's not just about quitting your job; it's about gaining the freedom to shape your life without financial constraints.

Principles of FIRE

1. Financial Independence: Achieving a state where your investments generate enough passive income to cover your living expenses.

2. Frugality: Living below your means and saving aggressively.

3. Investing: Investing in low-cost index funds, rental properties, and other passive income streams.

Who is FIRE for?

FIRE is not for everyone. It requires discipline, focus, and a willingness to make lifestyle changes. However, it can be particularly appealing to those who:

1. Hate their job: But want to pursue their passions.

2. Value freedom: Want to have the ability to make choices without financial constraints.

The Rules Behind FIRE

1. Spend less than you earn: Save aggressively and invest wisely.

2. Invest in low-cost index funds: Minimize fees and maximize returns.

3. Cut expenses: Identify areas where you can reduce spending without sacrificing value.

Steps to Reach FIRE

1. Determine your "why": Identify your motivations and goals.

2. Track your expenses: Understand where your money is going.

3. Create a plan: Develop a strategy to achieve financial independence.

Pathways to FIRE

1. LeanFIRE: Living frugally to achieve financial independence quickly.

2. FatFIRE: Saving and investing aggressively to maintain a higher standard of living in retirement.

3. CoastFIRE: Saving enough to coast into financial independence through compound interest.

4. BaristaFIRE: Partially retiring and supplementing income with a part-time job.

Example:

Let's say you aim to achieve financial independence with an annual expense of ₹600,000. According to the 4% rule, you'll need a corpus of ₹1.5 crores (₹600,000 / 0.04).

Assumptions:

- Annual expenses: ₹600,000

- Desired retirement age: 40

- Current age: 30

- Monthly savings: ₹50,000

- Expected annual returns: 8%

Calculation:

Using a compound interest calculator, we can estimate the corpus accumulated over 10 years:

- Total savings: ₹60,00,000 (₹50,000/month x 12 months x 10 years)

- Interest earned: ₹34,19,119 (assuming 8% annual returns)

- Total corpus: ₹94,19,119

After 10 years, the corpus would be approximately ₹94,19,119. To reach the target corpus of ₹1.5 crores, you could consider:

- Increasing monthly savings

- Investing in higher-return assets (while managing risk)

- Extending the investment horizon

Successful FIRE Strategy:

By consistently saving and investing, you can achieve financial independence and retire early. This example demonstrates the importance of:

- Starting early

- Saving aggressively

- Investing wisely

Conclusion

Achieving FIRE requires discipline, patience, and persistence. By understanding the principles and rules behind FIRE, you can take the first steps towards achieving financial independence and retiring early.

Keep in mind that this is a simplified example and actual results may vary. It's essential to consult a financial advisor and create a personalized plan tailored to your needs and goals.

Best Regards,

Ritesh Sheth

CWM (Chartered Wealth Manager)

Amfi registered Mutual fund distributor under ARN-0209

EUIN- E030691

Disclaimer: Views are Personal! Mutual fund Investments are subject to market risk please read the offer documents before investing.

The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person. It shall be the sole responsibility of the person to verify genuinely of such information whether the usage of this and/or availing the services/facilities/products is in conformity with personal understanding.

How to analyse equity mutual funds through risk measures like Standard deviation,Alpha,Sharpe ratio,Beta,Sortino,Treynor,Fama.

To analyze equity mutual funds using risk measures, understand Standard Deviation, Beta, Sharpe Ratio, Alpha, Sortino Ratio, Treynor Ratio, and Fama (although Fama is more often associated with portfolio construction rather than individual fund analysis). These metrics help assess risk, volatility, and risk-adjusted returns.

1. Standard Deviation: 

Definition: Measures the variability or volatility of a fund's returns. 

Application: A higher standard deviation indicates greater risk, as the fund's returns fluctuate more significantly from the average. 

Interpretation: A low standard deviation suggests less volatility and potentially lower risk. 

2. Beta: 

Definition: Measures a fund's sensitivity to market movements, indicating how much its price tends to move relative to the overall market. 

Application: A beta of 1 means the fund's price moves in line with the market, a beta greater than 1 means it's more volatile, and a beta less than 1 means it's less volatile. 

Interpretation: A lower beta (below 1) suggests less sensitivity to market fluctuations and potentially lower risk. 

3. Sharpe Ratio: 

Definition: Measures risk-adjusted returns, showing how much return a fund generates for each unit of risk taken. 

Application: Compares a fund's excess return (return above the risk-free rate) to its total risk. 

Interpretation: A higher Sharpe ratio suggests better risk-adjusted returns, meaning the fund generates more returns for the level of risk it carries. 

4. Alpha: 

Definition: Measures a fund's performance relative to its benchmark, indicating the value a fund manager adds or subtracts from the fund's return. 

Application: Helps assess how well the fund manager is outperforming or underperforming the benchmark. 

Interpretation: A positive alpha indicates the fund outperformed the benchmark, while a negative alpha indicates underperformance. 

5. Sortino Ratio: 

Definition: Similar to the Sharpe ratio but focuses on downside risk (negative volatility), rather than total volatility. 

Application: Evaluates a fund's risk-adjusted returns by considering only the losses. Interpretation: A higher Sortino ratio suggests better risk-adjusted returns, especially when considering potential losses. 

6. Treynor Ratio: 

Definition: Measures risk-adjusted returns by comparing a fund's excess return over the risk-free rate to its beta. 

Application: Evaluates how well a fund compensates for the systematic risk (market risk) it carries. 

Interpretation: A higher Treynor ratio indicates better risk-adjusted performance, particularly for diversified portfolios. 

7. Fama (Often Associated with Portfolio Construction): 

Definition: Fama is not a specific metric for individual funds like the others, but rather a framework for understanding how to build diversified portfolios. 

Application: Focuses on balancing risk and return across different asset classes to create well-diversified portfolios. 

Interpretation: While not directly used to analyze individual funds, understanding Fama's principles helps in choosing suitable funds for a diversified portfolio. 

In summary, by analyzing these risk measures, investors can gain a comprehensive understanding of a fund's risk profile, performance, and potential for generating returns relative to the risk taken.

Best Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

Amfi registered Mutual fund distributor under 

ARN-0209 EUIN- E030691.

ARN Date of initial registration - 16-AUG-2002 Current validity of ARN up to - 01-Oct-2027.

Disclaimer:

Views are Personal!

Mutual fund Investments are subject to market risk please read the offer documents before investing.

The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person. It shall be the sole responsibility of the person to verify genuinely of such information whether the usage of this and/or availing the services/facilities/products is in conformity with personal understanding.

Impact analysis

Dear Valued Clients,

Season's Greetings!

As we begin the new financial year, I want to express my gratitude for the trust you've placed in me and my team. Despite current market volatility, I remain optimistic about India's growth prospects. Our well-diversified investment portfolios are designed to navigate challenges.

It's essential to stay informed and adapt to changing circumstances to mitigate potential risks. Historically, we've seen that markets can be volatile, but with a long-term perspective, we can navigate these challenges.

With China retaliating to Trump's fresh wave of tariffs, we might just be entering a dangerous new zone one that could trigger a consumption shock and force the Fed into a much deeper rate cut cycle than markets are pricing in.

If this escalates, the Fed won’t be easing into a soft landing it’ll be racing to rescue demand.

If world economic issues persist india will face issues too.Impact for us majorly would be in Tech, pharma and textile etc. industries.Expecting dollar weakness, deeper rate cuts in india, according to me first duration, and then risk on in 1-2 Qtrs.

Rather than focusing on short-term market fluctuations, I always encourage you to look beyond the noise. For example, despite concerns about tariffs, the significant drop in the u.s 10-year yield since Trump took office represents stealth refinancing on a historic scale, with:

- Trillions in interest savings

- More breathing room for the government

- Less inflationary pressure

This proactive approach can have a positive impact on the economy and markets.

India and the global economy face numerous challenges, but focusing on the positive aspects can help us navigate these issues and build wealth.

Positive for India:

1. *Strong Domestic Consumption*: India's domestic consumption story remains strong, driven by a growing middle class and increasing disposable incomes.

2. *Government Initiatives*: The Indian government's initiatives, such as Make in India, Digital India, and Startup India, are expected to boost economic growth and create new opportunities.

3. *Infrastructure Development*: India's focus on infrastructure development, including roads, railways, and airports, is expected to improve connectivity and boost economic growth.

4. *Demographic Dividend*: India's young population is expected to drive economic growth and provide a demographic dividend.

5. *Growing Services Sector*: India's services sector, including IT and ITES, is expected to continue growing and driving economic growth.

Positive for Global Markets:

1. *Global Economic Growth*: The global economy is expected to continue growing, driven by a recovery in trade and investment.

2. *Monetary Policy Support*: Central banks around the world are expected to continue providing monetary policy support to boost economic growth.

3. *Fiscal Policy Support*: Governments around the world are expected to continue providing fiscal policy support to boost economic growth.

4. *Technological Advancements*: Technological advancements, including artificial intelligence and renewable energy, are expected to drive innovation and boost economic growth.

5. *Emerging Markets Growth*: Emerging markets, including India, are expected to continue growing and driving global economic growth.

What makes me Positive :

1. *Low Interest Rates*: Low interest rates globally are expected to continue supporting economic growth and boosting financial markets.aggrassive expect Rate cuts shortly.

2. *Increased Global Trade*: An increase in global trade is expected to boost economic growth and drive financial markets.

3. *Growing Middle Class*: A growing middle class globally is expected to drive consumption and boost economic growth.

4. *Innovation and Disruption*: Innovation and disruption, driven by technological advancements, are expected to drive growth and create new opportunities.

5. *Increased Foreign Investment*: Increased foreign investment is expected to boost economic growth and drive financial markets.

Here's why I encourage you to continue investing:

- Long-term focus: Our portfolios are designed for long-term growth.

- Diversification: We've reduced exposure to any one market or sector.

- Growth opportunities: Current market volatility presents chances to buy quality assets at discounted prices.

To navigate the current market:

1. Stay the Course: Focus on long-term goals and avoid impulsive decisions.

2. Rupee-Cost Average: Invest a fixed amount regularly, regardless of market conditions.

3. Rebalance Your Portfolio: Periodically review and adjust your portfolio for optimal asset allocation.

For those pursuing F.I.R.E:

- Stay focused on long-term goals

- Avoid letting short-term market fluctuations derail plans

- Live below your means, invest aggressively in a diversified portfolio, build multiple income streams, and plan for tax efficiency

If you have any questions or concerns, please don't hesitate to reach out. I'm always here to help with all your mutual fund, investment, and insurance service needs.

Thank you for your continued trust in my services

*Views are personal*

Regards,

Ritesh Sheth

CWM (Chartered Wealth Manager)

Amfi registered Mutual fund distributor

ARN-0209

EUIN- E030691

*Disclaimer*: Mutual fund Investments are subject to market risk. Please read the offer documents before investing. The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person. It shall be the sole responsibility of the person to verify genuinely of such information whether the usage of this and/or availing the services/facilities/products is in conformity with personal understanding.

Invested in equity mutual funds in recent time and the values are now down, here are few observations:

Short-Term Perspective (Less than 6 months)

1. Avoid Panic Selling: Refrain from selling investments during a downturn, as this can lead to locking in losses.

2. Stay Invested: Ride out the volatility, and consider the current downturn as a temporary correction.

Medium-Term Perspective (6 months to 2 years)

1. Rupee-Cost Averaging: Continue investing a fixed amount of money at regular intervals, regardless of the market's performance.

2. Rebalancing: Review the portfolio and rebalance it to maintain the original asset allocation.

Long-Term Perspective (More than 2 years)

1. Time in the Market: Remember that equity investments are long-term in nature. Historically, equity markets have provided higher returns over the long term.

2. Rupee-Cost Averaging: Invest a lump sum amount in a staggered manner to reduce the impact of market volatility.

3. Tax Efficiency: Consider the tax implications of selling investments. If the investment is held for less than a year, the gains will be subject to short-term capital gains tax.

Additionally 

1. Review and Adjust: Assess the investor's risk tolerance, investment horizon, and financial goals. Adjust the investment strategy accordingly.

2. Diversification: Ensure the portfolio is diversified across asset classes, sectors, and geographies to minimize risk.

3. Professional Advice: Consult with a Mutual fund distributor, financial advisor or a registered investment advisor to get personalized advice.

By following these observations, investors can navigate the current market downturn and make informed decisions to achieve their long-term financial goals.

Please Note Views are Personal

I am here to assist you with all your mutual fund investment service needs. 

Please feel free to contact me.

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

Amfi registered Mutual fund distributor under 

ARN-0209 EUIN- E030691.

ARN Date of initial registration - 16-AUG-2002 Current validity of ARN up to - 01-Oct-2027.

Disclaimer:

Mutual fund Investments are subject to market risk please read the offer documents before investing.

The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person. It shall be the sole responsibility of the person to verify genuinely of such information whether the usage of this and/or availing the services/facilities/products is in conformity with personal understanding.

Stay Ahead of Market Volatility with SIPs & Additional Purchases

"Ride the Market Waves with SIPs"

When markets dip, don't lose your grip,

Your SIP (systematic investment plan) invests, and your wealth starts to rip!

Each month's low, a smart buy for you,

More units gathered, less volatility to pursue.

When markets soar, units may be few,

But past investments shine, with returns anew!

Old purchases, now a treasure to see,

Compounding wealth, in a grand legacy.

Falling trends? A hidden opportunity,

Long-term SIPs, a promise of prosperity!

Patience and faith, your guiding lights,

Market dips, a stepping stone to new heights!

So invest steadily, don't let fear take hold,

History proves, markets rebound, young and old!

With SIP's steady hand, and a wise, long-term view,

Your wealth will rise, and your dreams come true!

Seize the Opportunity

When markets are low, consider investing a lump sum to maximize your returns. This strategy can help you:

- Buy more units at a lower price

- Reduce your average cost per unit

- Potentially earn higher returns in the long run.

Happy Investing!

Start your SIP journey today or invest a lump sum to make the most of the current market conditions. Contact me to learn more about SIPs and how they can help you achieve your financial goals.

Best regards,

Ritesh Sheth

CWM® (Chartered Wealth Manager)

Amfi registered Mutual fund distributor

ARN-0209 | EUIN- E030691

Disclaimer

Mutual fund investments are subject to market risk. Please read the offer documents before investing. The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person.

Please verify the authenticity of this information before taking any investment decisions.

The Union Budget 2025

The Union Budget 2025 aims to accelerate growth, secure inclusive development, and invigorate private sector investments. The budget focuses on seven key areas: agriculture, MSMEs, investment, exports, villages, youth, and women.

*Key Highlights:*

- *Agriculture*: The government plans to increase agricultural productivity through the Prime Minister Dhan-Dhaanya Krishi Yojana, which will cover 100 districts with low productivity.

- *MSMEs*: The investment and turnover limits for MSMEs will be enhanced to promote growth and employment.

- *Investment*: The government will invest in people, economy, and innovation, with a focus on education, healthcare, and infrastructure development.

- *Exports*: The government aims to promote exports through various initiatives, including the establishment of a National Manufacturing Mission.

- *Villages*: The government will focus on rural development through initiatives such as the Jal Jeevan Mission and the Rural Prosperity and Resilience programme.

- *Youth*: The government will invest in education and skill development initiatives to promote youth employment and entrepreneurship.

- *Women*: The government will promote women's empowerment through initiatives such as the Bharatiya Bhasha Pustak Scheme and the National Institute of Food Technology, Entrepreneurship and Management.

Additionally:

- Increased Basic Exemption Limit New Tax Slab.

- Standard Deduction Increase.

- Increased Tax Rebate Limit.

- Direct tax code.

- Boost to Consumption.

The Union Budget 2025-2026 should improve economic and market sentiments in an uncertain global order and boost investor confidence. Despite short-term market volatility, robust fundamentals make India a promising opportunity for long-term investors. 

Introduced policies designed to promote long-term growth and sustainability in critical sectors such as agriculture, infrastructure, energy, healthcare, and technology. 

By aligning with these growth themes, investors can potentially benefit from rising opportunities in the stock market and mutual funds providing lucrative options for investors seeking exposure to India’s evolving economic landscape.

*Aggressive equity fund Investors* : may look to mutual funds focusing on small-cap and mid-cap funds as well Sector funds like infrastructure, clean energy, FMCG,banking and financials are expected to outperform.

*Moderate equity fund Investor*: may look to mutual funds focusing on Flexicap funds and multicap funds with a mix of sector funds.

*Conservative equity fund Investor*: may look to mutual funds focusing on Dynamic asset allocation funds with mix of large cap funds , large and midcap funds and flexicap funds 

*Please Note Views are Personal*

I am here to assist you with all your mutual fund investment service needs. Please feel free to contact me.

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

Amfi registered Mutual fund distributor under 

ARN-0209 EUIN- E030691.

ARN Date of initial registration - 16-AUG-2002 Current validity of ARN up to - 01-Oct-2027.

Disclaimer:

Mutual fund Investments are subject to market risk please read the offer documents before investing.

The schemes/services/offers/products provided on this message do not constitute an offer to sell or buy of mutual fund for units/products to any person. It shall be the sole responsibility of the person to verify genuinely of such information whether the usage of this and/or availing the services/facilities/products is in conformity with personal understanding.

What is the benefit of staying invested in the long term?

Invest for long term – an advice routinely given by many Mutual Funds distributer like me, This is especially true in case of certain Mutual Funds – such as equity and balanced funds.

Let us understand why the professionals give such advice. What really happens in the long term? Is there a benefit of staying invested for long term?

Consider your Mutual fund investments as a good quality batsman. Every good quality batsman has a certain style of batting. However, each good quality batsman would be able to accumulate lots of runs, if he continues to play for years.

We are talking about the record of a “good quality” batsman. Every good batsman would go through some good and poor performances. On average the record would be impressive.

Similarly, a good Mutual Fund would also go through some ups and downs – often due to factors beyond the control of the fund manager. An investor would benefit if one stays invested through these funds for long periods of time.

So, as long as you can afford, stay invested for long periods of time – especially in equity and balanced funds.

How am I reading the situation?

I have been expecting volatility in the markets. In the last 6-8 months, i have been advising to be cautious with our asset allocations while i am keeping a razor sharp focus on improving the overall quality & risk-reward of our investment portfolio.

Markets are never static and always have a significant emotional quotient. I understand that and try to navigate risk and returns continuously across the continuum of the cap curves and sectors available. 

Young investors entering the equity markets for the first time also heightened the bullishness in the market. 

Mutual funds have been asked to monitor the liquidity profile of their portfolios carefully and come up with strategies to counter sudden liquidity

issues that may arise.

Macro backdrop for corporate India has never been more favourable. With India’s fiscal deficit and current account deficit under check, capital

costs continue to remain benign.

Corporate India has a good balance sheet and with the Make in India campaign, we are witnessing a recovery

in manufacturing, which favours midcaps and small caps more as they tend to supply global vendors from here. 

Multiple indicators were endorsing the fact that from a medium-to-long-term perspective, value stocks, which had so far traded in the neglected territory, will now be market outperformers in absolute as well as relative terms. any further up move and this outperformance would eventually signify preference for value stocks. According to my reading multiple indicators are now pointing to an amplification of the value thesis at a much larger scale as we are at an inflexion point. I am now seeing that the stocks in admired territory are undergoing a correction, while stocks in neglected territory are seeing a rise in valuations.

My understanding is emphasizing that this trend will perpetuate going forward.

I would like to

⇨ Add more to the investments during corrections as it helps in higher returns, when market (/ Portfolio) recovers.

⇨ During corrections, instead of Timing the Low, which is near impossible, plan your investments in a staggered manner for certain %-age of correction.

⇨ Keep a SIP … it really helps in building your goal-kitty and wealth over years.

⇨ Asset allocation plays a vital role in the larger scheme of things.

⇨ Rebalance the allocation in times of need (like a sharp rally in equities, deep correction in markets, other assets, etc).

Please call me for detailed discussion and investment opportunities.

*Views are personal & not for any recommendation/endorsement.*

Happy investing!!

Regards,

Ritesh Sheth CWM®

(Chartered Wealth Manager)

Amfi registered Mutual fund distributor under ARN-0209 EUIN- E030691.

ARN Date of initial registration - 16-AUG-2002

Current validity of ARN upto - 01-10-2029

*Mutual fund Investments are subject to market risk please read the offer documents before investing.*

Investments in India for NRIs in USA/ CanadaIndian

NRIs based out of US and Canada can invest in Indian mutual funds. However, AMCs do not have a uniform policy to deal with US and Canadian clients.

Currently, close to 14 fund houses receive investment from investors based out of these two countries and another five AMCs receive investment only from US.

Broadly, there are two categories of fund houses here - where investors are not required to physically present in India and vice versa.

Here is the list of fund houses where investors are not required to be physically present in India:

Aditya Birla Sun Life Mutual Fund

Nippon India Mutual Fund

Quant Mutual Fund

Sundaram Mutual

UTI Mutual Fund

Interestingly, these fund houses allow such NRIs to invest in their MF schemes without any restriction that too through online transaction.

Let us look at the fund houses which insist NRIs to be physically present in India:

360 One Mutual Fund

Axis Mutual Fund

DSP Mutual Fund (Only lumpsum)

ITI Mutual Fund (Only lumpsum)

Kotak Mutual Fund

Navi Mutual Fund

NJ India Mutual Fund

PPFAS Mutual Fund

SBI Mutual Fund

Taurus Mutual Fund

White Oak Capital Mutual Fund

Similarly, here is the list of fund houses, which receive money only from US investors:

Bandhan Mutual Fund (Only US)

Edelweiss Mutual Fund (Only US)

HDFC Mutual Fund (Only US)

ICICI Mutual Fund (Only US)

Motilal Oswal Mutual Fund (Only US)

Please note that all these fund houses receive investment only through physical mode. 

Also, these fund houses insist NRIs to submit application form along with a declaration form indicating their residential status.

NRIs residing in US and Canada will have to share Foreign Account Tax Compliance Act (FATCA) details and tax identification number (TIN) along with KYC details.

FATCA declaration form captures information like type of address (residence, business, registered office etc.), country of tax residence, tax identification number, Global Intermediary Identification Number (GIIN) and seek investors consent for sharing the information with relevant tax authorities.

For KYC, 

NRI needs to be physically present in India for KYC.

here is the list of valid KYC documents:

PAN card

Overseas address proof

Passport

Passport size photograph

OCI Card (In case of foreign passport holder)

For transaction, an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account is a must.

Hope i have addressed Common questions/query receivedfrom US and Canadian NRI. 

Please note this blog is on the basis of best efforts basis. Request reader please connect with your financial advisor or mutual fund companies for proper guidance.

Regards 

Ritesh Sheth CWM®

Disclaimer:

The views are for personal use and for educational propose only. Ritesh Sheth & Family or Tejas Consultancy does not guarantee the accuracy, adequacy or completeness of any information in this emailer and is not responsible for any errors or omissions or for results obtained from the use of such information.

This BLOG is addressed to and intended for the investors of Ritesh Sheth & Tejas Consultancy only. You are advised to contact Ritesh Sheth & Tejas Consultancy to clarify any issue that you may have with regards to any information contained in this blog. Ritesh Sheth & Family or Tejas Consultancy does not have any liability to any person on account of the use of information provided herein and the said information is provided on a best effort basis. In case of investments in any of our schemes, please read the offer documents carefully before investing. 

Exit strategy is a less discussed topic for mutual funds

While investing in Mutual Funds, Investors take various factors in consideration, like when to buy, what to buy, how much to buy etc. However, a less discussed topic is an exit strategy. 

Ideally, an investor should exit mutual fund investments on completion of financial goal apart from that, there are four other scenarios when an investor should exit MF investments.

In fact, for long-term investments, he/she should start exiting equity-linked MFs when the goal is still 2 to 3 years away and shifting the funds to safer investment options. 

But things don’t always happen, the way they should. The same is true for investments and hence, one needs a well-sounded exit strategy. 

Apart from what one should do in an ideal situation, four other scenarios when an investor should exit MF investments:

• When the mutual fund deviates from its stated mandate and takes undue risks that it is not supposed to take.
• The mutual fund is unable to deliver consistent fund performance over a full market cycle of under five years.
• When your asset allocation merits you to rebalance between asset classes.
• When you need money.

In such cases, here are the exit strategies an investor should follow:

When the mutual fund deviates from its stated mandate and takes undue risks

A classic example for this would be Franklin Templeton. The company had to wind up 6 of its mutual funds in debt category in April last year simply because it took more risk than its stated mandate. 

The AMC took exposure in bonds with high credit risk to generate high return. As much as this strategy might work wonders for longer term investments, the company took this risk for short-term debt funds. 

Though these funds were able to provide high returns before the pandemic based on this strategy, in the post-COVID era, as redemption requests increased and the bonds became illiquid, unable to manage the pressure, the AMC had to wind up its funds. 

The mutual fund is unable to deliver consistent fund performance.

A fund can be called as an underperformer if it has delivered say 5% or 6% in 2-3 years. “It may be that the market too delivered the same. Not your fund’s fault. 

Also, if a fund has been steadily behind the benchmark for 3 or more quarters by 3-6 percentage points or more, it is again an underperformer.

Then, you need to see if this has to do with the theme/strategy itself. For example, a value fund might not be performing well in the Nifty 50 but, the situation might be as such that other value funds are also at the same level. In that case, compare it with similar funds to know if your fund is a poor one among the other underdogs. “It is a different call if you choose to exit a strategy. That is more about your portfolio requirement and less to do with the performance of the fund."

What should be the exit strategy for the above-mentioned cases.

If your fund has been underperforming or shifted from its stated mandate, you should first stop the SIP. And, start the same in similar funds in your portfolio or choose a better one. 

“If you simply stop with the above, it is likely that over a period, you will be left with an unwieldy portfolio."

When your asset allocation merits you to rebalance between asset classes. 

For an effective investment plan, one needs to rebalance his/her portfolio periodically. It is done by selling/exiting investments in overpriced asset classes and investing in underpriced ones. Rebalancing portfolio helps the investor to generate higher return and at the same time de-risk the assets.

How to decide which funds to sell?

When you are rebalancing and you have multiple funds from the same category or style, exit the funds that are performing average first, if there are no funds that are underperforming. 

Reinvest in funds that you like/favour in your portfolio and if there are none, the nearest fund in terms of risk profile. 

For example, if you had a large and midcap fund and you would rather exit it to consolidate, you can well consider investing in a multicap fund. It may be marginally less aggressive but there’s no point adding a new fund since your aim is to consolidate. Else, split it between a multicap fund and midcap fund that you already hold.

When you need money.

No matter how prepared you are for the rainy days, there can be emergency situations when you might need to sell your mutual fund investments from the long-term portfolio.

How to decide which funds to sell?

Under such circumstances, the funds in the underperforming and performing average categories should be your first choice.

Many of you use the argument that you will book profit in the performing fund first. But you need to remember that MFs are not stocks. A stock that has gone up becomes expensive. A mutual fund that has returned well, may continue to return well as it rejigs its portfolio to find newer opportunities. Track record of consistent performance is more important. The exception to this is sector/theme funds.

However, there is no one correct answer to when one should exit a mutual fund, it depends on various factors.

 “It's a function of investor time horizon, risk appetite and the purpose of investment." 

An Investor Education & Awareness Initiative

          Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Are Mutual Funds Safe to Invest In?

 Mutual funds are investment vehicles that pool a group of people or institutions and invest their money in bonds, stocks, and other securities. A fund manager, who is usually a finance expert, manages the investment and provides maximum returns to investors by putting the amount in various securities that are in accordance with the mandates stated in the mutual fund’s prospectus.

A mutual fund provides individual investors with access to professionally managed portfolios and allows them to invest in a large number of securities. The performance of a fund is usually tracked based on the change in the total market cap of the fund — derived by averaging the performance of each underlying investment. Every shareholder, therefore, makes a profit or loss directly proportional to the amount they invest. The price of the fund unit is referred to as the net asset value (NAV) of the mutual fund. It is the price at which an investor buys or sells fund units of a scheme. The NAV is calculated by dividing the worth of total assets in the portfolio minus liabilities. Mutual fund units are sold and purchased at the prevailing NAV.

Types of Mutual Funds

Mutual funds in India are classified into equity funds, debt funds, and hybrid mutual funds, depending on their equity exposure and asset allocation. Therefore, the associated risk and returns provided by a mutual fund scheme would depend on its type. We provide an analysis of numerous types of mutual funds below:

Equity Mutual Funds

As the name suggests, equity funds invest primarily in equity shares of companies across all market capitalizations. A mutual fund is an equity fund if at least 65% of its portfolio is invested in equity instruments. The returns offered by equity funds depend on market movements and have the potential to be the highest among all classes of mutual funds. These can be classified into small-cap funds, mid-cap funds, large-cap funds, multi-cap funds, sector funds, index funds, and Equity-linked savings schemes (ELSS). The latter is covered under Section 80C of the Income Tax Act, 1961, providing investors with tax deductions of up to Rs. 1,50,000 every year.

Debt Mutual Funds

Debt mutual funds invest in debt, money markets, and other fixed-income instruments such as treasury bills, certificates of deposit, government bonds, and various high-rated securities. Debt funds are a good choice for risk-averse investors as their performance is not influenced too much by market fluctuations, making the returns somewhat predictable. Debt mutual funds are divided into dynamic bond funds, income funds, short-term and ultra-short-term debt funds, liquid funds, gilt funds, credit opportunities funds, and fixed maturity plans (FMPs).

Hybrid Mutual Funds

Investing in hybrid funds is a great way to reduce the risk of exposure across asset classes as they allow you to invest in both equity and debt instruments. They can be of various types:

• Equity-oriented hybrid funds
• Debt-oriented hybrid funds
• Monthly income plans
• Arbitrage funds

Depending on the market conditions, the money manager would modify the fund’s asset allocation to maximize benefits to the investors. The primary purpose of hybrid funds is to balance the risk to reward ratio by providing a more diverse portfolio.

Are Mutual Funds Safe

Mutual funds come with a certain level of risk. You stand a chance to lose the money you have invested in the securities held by a fund go that far down in value. Dividend payments may also change based on market conditions. However, all mutual funds are registered with SEBI and function within the provisions of strict rules and regulations created to protect the investor’s interests. And long term investments in mutual funds have the potential to offer you adequate returns.

Mutual funds provide diversification to the investor’s portfolio at a low cost. By investing in a single fund, you can get exposure to at least 30-40 stocks. An investor can opt for a Systematic Investment Plan (SIP) to invest a fixed amount periodically. You can start the SIP with an initial amount as low as Rs. 500, which can be transferred automatically from your registered bank account every month. Mutual fund investors can also quickly redeem their shares at any time for the current NAV plus any redemption fees.

Moreover, mutual fund companies hire professionals with vast experience who have spent dedicated time in the capital market to manage their investors’ money. All portfolio-related details are disclosed regularly to enable investors to understand what proportion of fund money is invested in which particular instruments. This makes investing in mutual funds a reliable and transparent option.

To Sum It Up

Mutual funds are growing in popularity as a valuable investment vehicle. It is crucial to choose an appropriate mutual fund scheme based on your investment objectives and risk tolerance. You can invest in mutual funds online thru my NSENMF platform as well offline investment route involves filling up the required application forms, and completing your eKYC (Know Your Customer) compliance by submitting your Aadhaar Card and PAN details.

Why You Need To Get A Health Insurance

The importance of health insurance and why you must get it.

The current COVID-19 pandemic has made the entire world sit up and realise that medical exigencies are unpredictable and can cause a financial upheaval that is tough to handle. With a high infection rate and no successful vaccine yet, people have started to understand the importance of having a good health insurance plan. Besides, with the rising cost of medical expenses, access to good medical facility and hospitalisation costs can be financially strenuous. Therefore, getting a health insurance cover for yourself and your family can provide the added protection you need in times like these. Apart from the obvious benefit of having the financial confidence to take care of your loved ones, a health insurance plan is extremely useful when it comes to beating medical treatment inflation.

Here are few crucial reasons why you need to consider getting a health insurance plan today:

• To fight lifestyle diseases

Lifestyle diseases are on the rise, especially among people under the age of 45. Illnesses like diabetes, obesity, respiratory problems, heart disease, all of which are prevalent among the older generation, are now rampant in younger people too. Some contributing factors that lead to these diseases include a sedentary lifestyle, stress, pollution, unhealthy eating habits, gadget addiction and undisciplined lives. 

While following precautionary measures can help combat and manage these diseases, an unfortunate incident can be challenging to cope with, financially. Opting for Investing in a health plan that covers regular medical tests can help catch these illnesses early and make it easier to take care of medical expenses, leaving you with one less thing to worry about. 

• To safeguard your family 

When scouting for an ideal health insurance plan, you can choose to secure your entire family under the same policy rather than buying separate policies. Consider your ageing parents, who are likely to be vulnerable to illnesses, as well as dependent children. Ensuring they get the best medical treatment, should anything happen to them, is something you would not have to stress about if you have a suitable health cover. Research thoroughly, talk to experts for an unbiased opinion and make sure you get a plan that provides all-round coverage. 

• To counter inadequate insurance cover

If you already have health insurance (for example, a policy provided by your employer) check exactly what it protects you against and how much coverage it offers. Chances are it will provide basic coverage. If your current policy does not provide cover against possible threats - such as diseases or illnesses that run in the family - it could prove insufficient in times of need. And with medical treatments advancing considerably, having a higher sum assured can ensure your every medical need is taken care of financially. But don't worry if you cannot afford a higher coverage plan right away. You can start low and gradually increase the cover. 

• To deal with medical inflation

As medical technology improves and diseases increase, the cost for treatment rises as well. And it is important to understand that medical expenses are not limited to only hospitals. The costs for doctor's consultation, diagnosis tests, ambulance charges, operation theatre costs, medicines, room rent, etc. are also continually increasing. All of these could put a considerable strain on your finances if you are not adequately prepared. By paying a relatively affordable health insurance premium each year, you can beat the burden of medical inflation while opting for quality treatment, without worrying about how much it will cost you.

• To protect your savings

While an unforeseen illness can lead to mental anguish and stress, there is another side to dealing with health conditions that can leave you drained – the expenses. By buying a suitable health insurance policy, you can better manage your medical expenditure without dipping into your savings. In fact, some insurance providers offer cashless treatment, so you don't have to worry about reimbursements either. Your savings can be used for their intended plans, such as buying a home, your child's education and retirement. Additionally, health insurance lets you avail tax benefits, which further increases your savings. 

• Insure early to stay secured 

Opting for a health insurance early in life has numerous benefits. Since you are young and healthier, you can avail plans at lower rates and the advantage will continue even as you grow older. Additionally, you will be offered more extensive coverage options. Most policies have a pre-existing waiting period which excludes coverage of pre-existing illnesses. This period will end while you are still young and healthy, thus giving you the advantage of exhaustive coverage that will prove useful if you fall ill later in life. 

A health insurance policy is an essential requirement in today's fast-paced lifestyle. Protecting yourself and your loved ones from any eventuality that could leave you financially handicapped is a must. For instance, the Bajaj Allianz General Insurance  Health Guard (Brochure) and Extra Care Plus (Brochure) offer comprehensive coverage and various benefits that can ensure your financial security. This is because these products cover day-care procedures, treatment at a wide network of hospitals, pre and post hospitalisation costs and even insure your mental illness treatment, among other things. With inclusions like these, you would not have to worry about a medical condition putting a strain on your finances. So, do your due research and choose  a health insurance plan that suits your needs. 

You can just click and buy Bajaj Allianz General Insurance  Health Guard and Extra Care Plus

You can also connect with me on: 9930444099 or EMAIL: riteshdsheth@gmail.com

The information provided in this blog is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action. 

*Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

What Cause the Market to Go up and Down

It is difficult to identify specific factors that influence the market as a whole. The stock market is a complex, interrelated system of large and small investors making uncoordinated decisions about a huge variety of investments.

The market, so to speak, could be construed as sort of an ecosystem, one organised by the "invisible hand". Each market participant acts and plays freely using their individual ideas and by following their own personal interests. "The market" is shorthand for the collective values of individuals and companies.

There are basic economic principles that can help explain any up and down market movements, and with experience and data, there are more specific indicators market experts have identified as being significant.

The Basics: Supply and Demand

In a market economy, any price movement can be explained by a temporary difference between what providers are supplying and what consumers are demanding. This is why economists say that markets tend towards equilibrium, where supply equals demand. This is how it works with stocks; supply is the amount of shares people want to sell, and demand is the amount of shares people want to purchase.

If there is a greater number of buyers than sellers (more demand), the buyers bid up the prices of the stocks to entice sellers to be willing to sell or produce more. Conversely, a larger number of sellers bids down the price of stocks hoping to entice buyers to purchase.

Individually, security instruments like stocks and bonds are dependent on the performance of the issuing entity (business or government) and the likelihood the entity will be valued more highly in the future (stocks) or be able to repay its debts (bonds).

Widely Accepted Market Indicators

This begs a new question: What creates more buyers or more sellers?

Confidence in the stability of future investments plays a significant role in whether markets go up or down. Investors are more likely to purchase stocks if they are convinced their shares will increase in value in the future. If, however, there is a reason to believe that shares will perform poorly, there are often more investors looking to sell than to buy.

Events that affect investor confidence include:

• ·       Wars or other conflicts
• ·       Concerns over inflation or deflation
• ·       Government fiscal and monetary policy
• ·       Technological changes
• ·       Natural disasters/extreme weather fluctuations
• ·       Regulation or deregulation
• ·       Changes in the trust of whole industries such as the financial industry
• ·       Changes in the trust in the legal system

For example, It took Sensex just 17 months to add 31,000 points from a March 2020 low of sub-26,000 level to hit 61000 level for the first time ever on Tuesday. This is against 31 years (since its inception in 1986) the index took to touch the 31,000 mark for the first time in May 2017. This move is attributed to the COVID-19 pandemic, which created a lot of uncertainty about the future. Therefore, the market had many more sellers than buyers.

Interest rates are also believed to play a major role in the valuation of any stock or bond. There are several reasons for this, and there is some debate about which is most important. First, interest rates affect how much investors, banks, businesses, and governments are willing to borrow, therefore affecting how much money is spent in the economy. Additionally, rising interest rates make certain "safer" investments a more attractive alternative to stocks.

Bottom Line

While using your instincts and intuition when investing, it’s easy to let your emotions get the best of you. Keep in mind that even with careful research, investing always carries some inherent risk. It’s a good idea to diversify your portfolio as much as possible, so that you’re spreading out your risk over multiple investments. An easy way to do this is by primarily Mutual fund Schemes instead of individual stocks.

Mutual Funds are great ways to build wealth with relatively low maintenance and low barriers to entry. If you also want to invest in individual stocks, it’s always a good idea to do your research and become well-informed about a stock’s past and potential performance before buying anything.

Ultimately, though the stock market may have its ups and downs in the short term, investing in equity funds of mutual funds is a great way to build wealth in the long term. Be sure that you’re investing smartly with a strategy that suits your financial goals, and keep your focus on your long-term goals (such as saving for retirement) to avoid making hasty decisions based on short-term panic or the fear of missing out.

You Can Contact me on any of your Investment and Insurance Requirements.

Ritesh Sheth Call on: 9930444099 email : riteshdsheth@gmail.com 

DISCLAIMER:

An Investor Education & Awareness Initiative.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

*Investments in equity shares, debentures, Bonds etc., are not obligations of, or guaranteed and are subject to investment risks.

The Services and Information provided are for general guidance and information purposes only, and they do not, in any manner, indicate any assurance or opinion whatsoever.

I Marks no representation, warranty, or guarantee as to the quality, accuracy, completeness, performance, or fitness of any alert, article, view, video, information, advice, tool, calculator, analysis, report, data, content news, price, statistic, comment, feedback, advertisement, etc., provided on, or through are personal in nature (collectively known as “Services and Information”).

The Services and Information are dependent on various assumptions, individual preferences, and other factors. Thus, results or analyses cannot be construed to be entirely accurate, and may not be suitable for all categories of users. Hence, they should not be solely relied on when making investment decisions. Your investment / financial decision shall always be at your own discretion and based on your independent research. Nothing contained on, or in any Services and Information would construe me or my family, or any of its employees / authorized representatives as having been in any way involved in your decision making process. Any information and commentaries provided on are not meant to be an endorsement of any stock / investment advice. These are meant for general information only.

What are Dynamic Asset Allocation or Balanced Advantage Funds?

Dynamic Asset Allocation or Balanced Advantage Funds are hybrid funds, which are free to manage their exposure to equity and debt instruments without any caps or minimum exposure limits from the SEBI. These funds change their exposure to equity and debt instruments as per the changing equity valuations with the help of their in-house proprietary models. These models help their funds to eliminate human biases during investment decision making. They also maintain exposure to equity derivatives to implement hedging strategies and benefit from equity tax treatment during overvalued equity market conditions.

Advantages of Balanced Advantage Funds 

You can manage market volatility and aim to limit your losses when markets correct 

1. The strategy focuses on buying and selling assets based on valuations; for instance it may sell assets with high valuations and purchase assets that may be fairly valued depending on the schemes investment strategy. 
2. By investing across asset classes your portfolio risk is diversified. 
3. Performing asset classes can make up for the returns of underperforming ones.

Why invest in Dynamic Asset Allocation or Balanced Advantage Funds?

• Aims to deliver long-term returns closer to equity funds but with significant lower volatility
• Combines the features of potential capital appreciation, capital preservation and volatility control
• Aims to generate capital gains primarily through dynamic management of equity allocation as per varying market conditions
• Aims to provide stability and regular income through exposure to fixed income instruments
• Portfolio rebalancing decisions are usually based on a well-defined and time tested models without any biases
• Offers higher tax efficiency than asset allocation implemented by the investor himself.

  Who should invest in Dynamic Asset Allocation Funds?

  • Investors seeking to create long term wealth with lower volatility
  • Those seeking exposure to equity and debt asset classes with a dynamic asset allocation
  • Those wishing to participate in equity markets with a relatively conservative approach
  • Fresh mutual fund investors seeking to gain equity market exposure with lower volatility
  • Intermediate investors looking for an automated solution during over-valued or confusing market conditions.
  • Experienced investors seeking an automated asset allocation model from the fund house itself. 

Few Examples For Better Understanding 

Kotak Balanced Advantage 

• Uses a 2-factor model using Trend/Sentiment Data and Trailing NIFTY 50 P/E to make the most of ‘Buying Low and Selling High’ investment mantra
• The model measures the future of market conditions and removes behavioral & emotional biases from investing
• Other factors used for stock selection include fundamental attributes like P/B and market cap to GDP ratios

 Edelweiss Balanced Advantage Fund 

• Invests in equity & debt instruments on the basis of a predefined Asset Allocation Model called Procyclical Edelweiss Equity Health Indicator (EEHI) Model
• Actively participates in arbitrage opportunities to generate absolute alpha
• EEHI Model aims to capture the upside during the bull market and protect downside in bear markets
• EEHI Model is purely quantitative in nature built on two key pillars – Market Trend and Health of the Trend
• Equity portfolio of the fund comprises of high quality and consistently growing companies available at reasonable valuations
• Net equity exposure ranges from 30% to 80% of the fund portfolio
• Follows a growth-oriented multi-cap strategy
• Debt portfolio of the fund follows active duration management focused on accrual income
• Arbitrage strategy of the fund involves hedging, capture spreads & corporate actions 

 L&T Balanced Advantage Fund 

• Follows an active strategy to manage market volatility
• Increases the net equity allocation when the P/B & P/E multiples of the market is low and vice versa
• Sets its equity exposure based on an internal model
• Metrics used for deciding debt-equity allocation may also include interest rate cycle, dividend yield, earnings yield, market cap to GDP ratio, medium to long term outlook of the asset class, etc
• The stock selection process is supplemented with the proprietary G.E.M (Generation of Ideas, Evaluation of companies and Manufacturing and Monitoring of portfolios) investing process to invest in quality businesses having reasonable valuations and a strong management track record

 IDFC Dynamic Equity Fund 

• Uses a pre-defined model to indicate the range of active equity allocation based on P/E levels
• The range of equity allocation is reset once in a month based on the weighted P/E ratio of the Nifty 50 for the previous month-end
• Changes within the equity portfolio takes place dynamically on day to day basis
• Follows a multi-cap approach for the equity portfolio
• Prefers higher allocation to large caps during lower exposure to active equity
• Debt portfolio of the fund is actively managed focusing on high credit quality and following short-to-medium duration strategies for containing the duration risk

 DSP Dynamic Asset Allocation Fund 

• Core equity allocation is fixed on the basis of 2-factor asset allocation model using fundamental & technical analysis
• Equity allocation can range between 20% and 90% depending on the outcome of the asset allocation model with the rest of the corpus being allocated to debt and arbitrage instruments
• Combines P/B & P/E ratios of Nifty 50 TRI to determine the attractiveness of equity valuations
• Seeks to generate income through exposure to debt securities and by using arbitrage and other derivative strategies.

 Nippon India Balanced Advantage Fund 

• Uses an in-house proprietary Model following valuations & trend following to set the allocation for unhedged equity
• Aims to offer triple benefits of emotions-free asset allocation, lower downside risk through hedging and generation of long term alpha through active sector and stock selection
• Maintains a large cap oriented portfolio well-diversified across sectors
• Investment universe covers all listed large and midcap stocks having derivatives
• Uses a conservative approach for managing debt portfolio by focusing on shorter end of investment through a combination of liquid and short term fixed income securities
• Aims at realising ‘Alpha Potential’ in full market cycle through upside participation in rising markets and downside risk management in falling markets.

 Aditya Birla Sun Life Balanced Advantage Fund 

• Aims to buy in underpriced opportunities and sell out during overpriced situation
• Runs a well-tested P/E based model to determine its ‘Net Equity Exposure’
• Uses derivatives to reduce the net equity exposure during overvalued markets
• Uses fundamental research to select stocks with potential of adding alpha over a longer period of time
• Open to invest in opportunities available across the market capitalization
• Uses top-down approach to identify growth sectors and bottom-up approach to identify individual stocks.

 ICICI Prudential Balanced Advantage Fund 

• Invests primarily in equities and uses derivatives exposure to reduce the downside risk of the portfolio
• Uses an in-house asset allocation model based on long term historical mean Price to Book Value (P/BV) ratio
• Invest across market capitalisations for equity exposure
• Increases equity exposure during attractive valuations and reduces equity exposure expensive market valuations
• Invests in fixed income securities too to generate accrual income and capital appreciation

Invesco India Dynamic Equity Fund 

• Uses a pre-defined model to indicate the range of active equity allocation based on P/E levels
• The range of equity allocation is reset once in a month based on the weighted P/E ratio of the Nifty 50 for the previous month-end
• Changes within the equity portfolio takes place dynamically on day to day basis
• Follows a multi-cap approach for the equity portfolio
• Prefers higher allocation to large caps during lower exposure to active equity
• Debt portfolio of the fund is actively managed focusing on high credit quality and following short-to-medium duration strategies for containing the duration risk

 Motilal Oswal Dynamic Fund 

• Makes equity allocation on the basis of Motilal Oswal Value Index (MOVI)
• MOVI is calculated on the basis of PE, PB and dividend yield ratios of Nifty 50 Index
• Equity exposure can range between 65% and 100% of the overall fund portfolio
• Prefers a focused portfolio with high conviction stocks based on the principle of ‘Buy Right: Sit Tight’
• Invests in equities across market-capitalization and sectors
• Exposure to equity derivatives can go up to 35% of the overall fund portfolio
• Derivatives exposure is made using arbitrage strategy and hedged position
• Debt exposure can go up to 35% of the overall fund portfolio.

An Investor Education & Awareness Initiative

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.