Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Saturday, 21 June 2014

Hybrid Funds

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

Hybrid Mutual Funds



Mutual fund houses such as DWS, HDFC, ICICI Prudential and Tata have launched close-ended schemes that invest in a mix of debt and equity. Though some schemes avoid calling themselves a capital protection fund, they invest in debt and equity in such a manner that by the time the scheme matures, the debt component grows to ensure that the investors get their capital back and equity brings in the additional returns.

Risk-averse investors can look at these schemes, as there is little possibility of a loss of capital over three years. The scheme offers investors an opportunity to take a small exposure to equity , while sticking to the conservative asset allocation.

These hybrid funds generally mature in three or five years. The debt component comprises good quality bonds that mature just before the maturity of the scheme. In case of a three-year scheme, approximately 80% of the money is invested in bonds, which ensure return of capital invested at the end of the tenure. The balance is invested in equity . These schemes aim at offering double-digit returns. The one-year returns of similar schemes look good, given the recent rally in the equity markets. Three-year schemes launched in 2011, which will be maturing in 2014, are performing well. For example, ICICI Prudential Capital Protection Oriented Fund -Series III, launched in July 2011, has delivered 9.64% since its inception. Axis Capital Protection Oriented Fund -Series 1 launched in November 2011, has so far delivered 15.33% returns, says Value Research, a mutual fund tracking entity .

Experts feel that the current situation is ripe for these schemes.
A three-year horizon allows the fund to benefit from relatively high accrual yields for debt instrument in that segment. Also, it would allow the fund to benefit from equity component, while neutralising the near to medium-term volatility.

The close-ended structure helps investors to ride out the intermittent volatility and the fund manager too is not subject to redemption pressure in these schemes, say experts.

Currently, with the stock markets on the rise, this can be a good vehicle to park their money in for risk-averse investors.


In the three months ended on June 13, CNX Nifty has gained 16.16%. Conservative investors are worried about which way equity markets will go from the current high level and still they want to participate in equity and earn returns in excess of debt. Such schemes are launched to cater to the needs of these investors

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any 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. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. 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
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

      1. DSP BlackRock MicroCap Fund
      2. Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts