IIFL suggests these Top Mutual Fund Schemes invest in this Diwali
With Diwali just around the corner, the Muhurat trading is scheduled on October 21. Staying invested is the only key to outgrow your fund systematically. IIFL Securities has listed out 10 Mutual Fund Schemes to invest on the auspicious occasion. The Mutual Fund industry had an outflow of Rs 1.5 lakh crore in September against an inflow of Rs 1.02 lakh crores.
The case was not much different for the equity funds which had an inflow of Rs 6600 crore in September in comparison to Rs 9150 crore in August 2019. However, SIP seems to be booming with an inflow of Rs 8262 crore.
Choose from the below listed top 10 Mutual Fund schemes recommended by IIFL for illuminating your Diwali a little bit more.
First in the order is Nippon India LARGE Cap Fund (G) which has an AUM of Rs 12.531 crore. Their return scheme is as follows:
For 1 yr it is 5.7%, 3 yr it is 8.8%, and for 5yr it is 9.5%.
The Nippon India Large Cap Fund primarily invests at least 80% in the top 100 companies y market capitalization and their main focus is to generate long term capital appreciation by investing mainly into equity and equity-related investments of large scale companies.
As per reports, in September 2019, the fund had invested 79% of its AUM in large-cap stocks and the rest 15% in mid-cap stocks. The scheme also aims to bring out consistent returns by investing in debt, money market securities, REITs, and InvITs.
Nippon India is best suited for investors with a high-risk appetite who can take the chance of investing for at least 3 years.
The top stockholders for this open-ended fund comprise of ICICI Bank with 7.6%, followed by HDFC Bank with 6.9%, and finally SBI with 6.7%.
Next in the queue is ICICI Prudential Midcap Fund (G) having an AUM of 1767 crore. The scheme guarantees a return as follows:
For 1 year it is 0.9%, 3year its 4.1%, and for 5 years it is 8.3%.
This fund looks to invest in the growing companies who promise a significant room for value in the future.
It manages 65% of midcap from 101st to 250th by market capitalization.
As of September 2019, the fund has reportedly invested 66% of its AUM in midcap stocks while the rest of 19% in small-cap stocks.
The ICICI Prudential Fund keeps management integrity as key criteria while screening stocks for investing.
This fund has its highest allocation to hotels with 7.6%, followed by banks with 6.5%.
The top holdings of this scheme lie with Indian Hotels Company with 5.8%, followed by PI Industries with 4.7% and lastly Tata Chemicals with 4.4%.
Investors with a moderate to high-risk appetite should indulge in this investment which comes with a locking period of at least 5 years.
The third is HDFC Small Cap Fund (G) which has an AUM of Rs 8845 crore. This fund promises a return as follows:
For 1 year it is 8.8%, for 3 years it is 6.4%, and for 5 years it is 10.5%.
It focuses to invest at least 65% in small-cap companies which are ranked 251st and beyond by market capitalization.
Their main motto is to invest in companies that have reasonable growth prospects, sound financials, a sustainable business model, and an acceptable valuation that offers scope for capital appreciation.
Reportedly the scheme had invested 64% of its AUM in small-cap stocks in September 2019 and only 18% was invested in midcap stocks.
Keeping its highest allocation with the banks with 9.5%, followed by IT with 6.4%, the fund’s top stockholders comprise of Sonata Software with 3.3%, DCB Bank with 3.1% and NIIT Technologies with also 3.1%.
Investors looking for an investment of at least 7 years should consider this high-risk investment horizon.
Fourth in the line is SBI Magnum Multi-Cap Fund (G) which has an AUM of Rs 8073 crore and guarantees a return as follows:
For 1 year it is 12.3%, for 3 years it is 9%, and for 5 years it is 12.5%.
The scheme invests in a diversified basket of large-cap, mid-cap, and small-cap companies and aims to generate long term growth through investments.
It invests 65% of its AUM in equity and equity-based instruments across the market capitalization and the rest n debt and money market instruments.
According to September 2019 reports, the fund has invested 63% of its AUM in large-cap stocks while 19% and 16% to mid-cap and small-cap stocks respectively.
The trend which the SBI Magnum follows is to approach stock picking and selects companies across sectors and styles.
It has its high allocation with the banks with 27.9% followed by IT with 9.1%.
With HDFC Bank, the fund has the highest allocation of 8.9%, followed by Infosys with 6.9%, and lastly ICICI Bank with 5.9%.
The moderate to high risk-taking investors can benefit from this scheme which has a locking span of at least 5 years.
Lastly comes the Mirae Asset Hybrid Equity Fund (G) with an AUM of 2590 crore. The return promised is as follows:
For 1 year it is 8.8%, for 3 years it is 9.3%, and for 5 years it is NA.
This equity-oriented hybrid fund invests 65-80% of its AUM in equity, 20-35% in debt, and 10% in the units of REITs and InvITs.
For equities, the fund focuses on high growth companies available at a reasonable valuation whereas for debts the focus lies on Government Securities and highly rated PSUs and corporate.
In September 2019, the fund has invested 61% of its AUM equity in large-cap stocks and only 8% was invested in mid-cap stocks.
Within the equities, the fund has the banks as its highest allocators with having 22.1% followed by IT with 6.5%.
The highest allocating bank is HDFC Bank with 6.8%, followed by ICICI Bank with 5.1%, and finally Reliance Industries with 4.9%.
This hybrid category is best suited for investors willing to take moderate to high risk for at least 3 years, as said by IIFL.
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