1. DSP BlackRock Tax Saver Fund
2. Invesco India Tax Plan
3. Birla Sun Life Tax Relief 96
4. ICICI Prudential Long Term Equity Fund
5. Axis Tax Saver Fund
6. BNP Paribas Long Term Equity Fund
7. FundFranklin India TaxShield
8. Reliance Tax Saver (ELSS) Fund
9. Birla Sun Life Tax Plan
Invest in Best Performing 2017 Tax Saving Funds Online
1. DSP BlackRock Tax Saver Fund
2. Axis Tax Saver Fund
3. Invesco India Tax Plan
4. BNP Paribas Long Term Equity Fund
5. Tata India Tax Savings Fund
6. Franklin India TaxShield
7. ICICI Prudential Long Term Equity Fund
8. IDFC Tax Advantage (ELSS) Fund
9. Birla Sun Life Tax Relief 96
10. Reliance Tax Saver (ELSS) Fund
Invest in Best Performing 2017 Tax Saver Mutual Funds Online
Invest Best Tax Saver Mutual Funds Online
Download Top Tax Saver Mutual Funds Application Forms
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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Alpha, which measures this value addition, is often taken as a metric to gauge fund performance. Investors who seek outperformance would be drawn towards funds running a higher alpha. But can investors always benefit from the pursuit of high alpha?
IMPORTANCE OF ALPHA
Simply told, alpha is the excess return delivered by a fund over its benchmark index. But more precisely , it is the excess return or value generated by a fund manager over the fund's expected return. This expected performance is based on the risk taken by the fund manager relative to the market, which is defined by beta.
Thus, a fund's alpha is derived from its underlying beta. A beta value of 1.5 indicates the fund would deliver 1.5% return for every 1% gain in the value of its underlying index.
Suppose a fund with a beta of 1.5 delivers a return of 18% over a certain period while its underlying benchmark index posts 12% returns. Given the beta, the fund manager would be expected to deliver a return of 18% (12%*1. 5). So, in this case, the fund manager has actually failed to generate alpha even though the fund has delivered 6% excess return over its benchmark.
If the fund delivered a return of 20% for the same underlying risk, the alpha generated would be 2%. Which implies that alpha represents the fund manager's expertise in stock selection or portfolio building. Most top-performing funds over longer time periods boast of a high alpha. In most cases, if a fund has generated high alpha in the past, it is likely to generate the same in the future too. Thus, it would bode well for investors to pay attention to a fund's alpha when selecting equity funds.
However, experts insist that consistency in delivering alpha is critical. Certain funds are good at delivering alpha only during a market uptrend.The fund should show consistency in generating alpha across various time frames and market cycles. Alpha can be a good indicator of a fund manager's ability provided there is consistency in the philosophy and processes driving the portfolio selection. Also, bear in mind that extent of alpha varies between fund categories. Typically, mid-cap oriented equity funds are able to deliver higher alpha than large-cap oriented ones. While mid-cap funds can comfortably clock alpha in excess of 8-10%, alpha in large-cap funds is typically lower.
WHERE ALPHA MAY NOT WORK
Alpha as a metric has a few shortcomings, which can make its extensive use counter-productive. First, alpha depends on the underlying benchmark index for the fund. Even though we may measure it in absolute terms, alpha is actually a relative measure dependent on market proxy . This can have several implications.
It can prevent effective comparison between funds, even within the same fund category . Since different equity funds within the same category also tend to be benchmarked against different indices, the alpha statistic will measure outperformance relative to that benchmark. You can end up comparing apples to oranges.
Another gripe analysts have with using alpha is that it is ignorant of the risk-adjusted performance. While it measures excess return given the level of market risk, it makes no adjustment for the risk involved in delivering that additional performance. As such, experts insist that alpha should not be used in isolation while picking funds.It should be supplemented with other metrics to really gain true understanding of the performance of the fund. Investors give equal importance to the underlying risk. Go with a fund offering healthy alpha but lower beta.
Birla Sun Life Pure Value, for example, has delivered a healthy alpha of 10% over the past five years with a beta of 1.06. Its peer in the same category , BNP Paribas Midcap Fund has delivered similar return although at a lower beta of 0.83. Belapurkar says just looking at alpha does not provide the entire picture. Investors need to dissect the number further to see where the alpha is actually coming from. If it is due to a high risk taken by the fund manager, then it could be a red flag. Investors need to consider other risk factors apart from beta.
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2017 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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Rate of Interest per annum valid up to INR 5 Crore (w.e.f 6th Feb'17)
Tenor in months | Cumulative | Non-Cumulative | |||
Monthly | Quarterly | Half Yearly | Annual | ||
12 - 23 | 7.80% | 7.53% | 7.58% | 7.65% | 7.80% |
24 – 35 | 8.00% | 7.72% | 7.77% | 7.85% | 8.00% |
36 – 60 | 8.05% | 7.77% | 7.82% | 7.89% | 8.05% |
1. DSP BlackRock Tax Saver Fund
2. Invesco India Tax Plan
3. Tata India Tax Savings Fund
4. BNP Paribas Long Term Equity Fund
Invest in Best Performing 2017 Tax Saver Mutual Funds Online
Invest Best Tax Saver Mutual Funds Online
Download Top Tax Saver Mutual Funds Application Forms
For further information contact SaveTaxGetRich on 94 8300 8300
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A fund which has grown in short order to become the largest in the ELSS category, Axis Long Term Equity has the performance record to back its asset size. The fund has been lodged strongly at a five-star rating for the last three years. The fund's strategy of buying quality stocks with a growth bias has paid off handsomely, with the fund outpacing its category by big margins in every year since launch. While selecting stocks, the fund looks for a superior and scalable business, a high return on capital and secular growth. The fund is also large-cap oriented, with large-cap allocations actually climbing from 55 to 70 per cent in the last couple of years. Mid caps get a 30-40 per cent allocation in the portfolio, with negligible small caps.
The fund, being a later entrant, has managed to skip the bear market of 2008. Its performance in 2011, however, showed that it is able to contain loses in a falling market. It has delivered convincing outperformance of both benchmark and peers in most bull years - be it 2010, 2013 or 2014. However, this outperformance is also attributable to the exceptional returns delivered by the fund's 'growth and quality' style of investing in the last five years. The fund has been overweight on domestic consumer stocks such as private banks, housing and automobiles, which have been the front runners of this bull market.
Overall it's a solid fund if you like to own quality businesses in the listed space.
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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PrajnaCapital [at] Gmail [dot] Com
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Very often financial planners meet someone who intending to invest in stocks, bonds, real estate, mutual funds, gold etc.Such a statement clearly reflects that a large number of investors think that like stocks, bonds, gold and real estate, mutual funds are also an asset class which should be there in their portfolio.
MFs are Bridge to asset classes
The reality, however, is that a mutual fund itself is not an asset class. Rather it's a bridge to investing in various asset classes like stocks, bonds, gold, real estate etc. at a cost and risk which are usually lower than when an investor invests in these assets on his own.
This is possible because say if an investor invests in an equity mutual fund, he is actually, although indirectly, investing in stocks. This is since the equity scheme in which he is investing has a portfolio of stocks which is managed by a group of individuals who have experience in investing and managing money. Investors in debt, gold, real estate and commodities could also expect the same. In India, though, real estate and commodity mutual funds are yet to be launched.
Low risk, low cost
Since mutual fund schemes are managed by a group of experienced investment professionals, the chances of them losing money compared to one who does not have much experience in investing in stocks, debt etc. are lower.In addition market regulator Sebi has also put in a cap on the total expense fee that fund houses can charge their investors in each scheme (maximum of 2.75% per annum).
Better tax efficiency
Mutual funds also offer better tax efficiency when compared with direct investing. One of the reasons for this is the government's intentions to push retail investors to take the mutual fund route to investing.
When planning ones finances there is a requirement to invest in various asset classes. In such a situation mutual funds turn out to be one of the best options to invest and achieve ones financial goals. Mutual funds are basically a means to invest in any asset class with several advantages to the investors.
Mutual funds can be best explained if one compares it to a garden. In a garden there are many flowers and they are taken care by the gardener. In a similar way a mutual fund has many securities which are managed by a fund manager. This fund manager is concerned with generating returns for his investors and does not get married to a stocksecurity. This is a behavioural hitch while one looks at investing directly. He (fund manager) cuts all weeds (non-performing securities) and retains only the performing ones.
One of the clear advantages of investing in mutual funds is diversification which leads to reducing the risks associated with investing.
The common myth about mutual funds is that they invest only in equities. It is rather a tool which provides a pathway to invest in debt market, gold and even real estates. One of the biggest boons of a mutual fund is systematic investment which allows an investor to invest at regular intervals. This helps in rupee cost averaging which in turn helps investors get better risk-adjusted returns.
All in all mutual funds turn out to be one of the best products for an investors to help him achieve financial freedom. It is however important that product selection should be based on proper research and after understanding ones financial goals and risk taking ability.
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
------------------------------
Leave your comment with mail ID and we will answer them
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You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
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1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Religare Tax Plan
4. DSP BlackRock Tax Saver Fund
5. Franklin India TaxShield
6. ICICI Prudential Long Term Equity Fund
7. IDFC Tax Advantage (ELSS) Fund
8. Birla Sun Life Tax Relief 96
9. Reliance Tax Saver (ELSS) Fund
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
------------------------------
Leave your comment with mail ID and we will answer them
OR
You can write to us at
PrajnaCapital [at] Gmail [dot] Com
OR
Leave a missed Call on 94 8300 8300
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