Month: July 2021

Canara Robeco Bluechip Equity Fund

Canara Robeco Bluechip Equity Fund has been accorded a 5-star rating by Morningstar, CRISIL and Value Research. This largecap equity fund has been a consistent performer over the last few years, and with parameters for analysis that are available, the scheme looks on a solid footing going ahead.

Canara Robeco Bluechip Equity Fund is a largecap fund. As sum of Rs 10,000 invested in Canara Robeco Bluechip Equity Fund every month for the last three years would have translated into a corpus Rs 5.15 lakhs today, if you had gone by an SIP.

This means that Rs 3.6 lakhs invested through SIPs has now generated Rs 5.15 lakhs, which is not bad at all. The 3-year returns from the fund has been 16.82 per cent on an annualized basis, while the 5-year returns has been 16.21%.

Should you invest in the Canara Robeco Bluechip Equity Fund?

The portfolio of the fund comprises names like HDFC Bank, Infosys, ICICI Bank, Reliance Industries and TCS. If you study the portfolio of some other mutual fund schemes, you see that it is heavily skewed towards financials, which means, should the economy falter, there could be problem for banking stocks. At least the top 5 stocks of Canara Robeco Bluechip Equity Fund look a little more balanced with exposure to IT and a diversified play like Reliance Industries.

The fund presently has about 93.95% invested in equities, while the balance is invested in largecap shares. We suggest that since the Sensex has gone up to a record 53,000 points, investors should invest only through SIPs and not chase over exuberance of the markets. This means avoid investing lumpsum in equity mutual funds.

Mirae Asset Emerging Bluechip Fund

This fund again has been rated as 5-star by all the 3 big rating and analysis firms including Morningstar, CRISIL and Value Research. Again, the portfolio is strong and the returns have been solid. This unlike Canara Robeco Bluechip Equity Fund is a much larger fund with assets under management of more than Rs 18,000 crores.

The top-holdings are in larger banks, which means it is more skewed towards financials in its top 5 holdings, while Canara Robeco Bluechip Equity Fund was more diversified in that sense. The 3-year returns of the fund is 22.16%, which is higher or almost the highest among large cap equity mutual funds in the country. Even the 5-year returns on an an annualized basis at near 21% is solid.

Should you invest in Mirae Asset Emerging Bluechip Fund?

Again, if you ask us whether it is worth investing in the scheme, we would say “yes”, but only through the SIP route. Markets have run up too fast over the last 1-year and not many are convinced that valuations are fair. An SIP for the Mirae Asset Emerging Bluechip Fund does not cost much and one can do with a sum of Rs 1,000 each month. Go for the scheme which has a good track record, but, only through the SIP route.

Disclaimer

Investing in equity mutual funds is risky, so investors need to be cautious. Neither Greynium Information technologies nor the author would be responsible for any losses incurred due to a decision based on the above articles Please consult a professional advisor and remember the markets have run-up sharply.

Franklin India Bluechip Fund

This fund according to research agency Morningstar has given a returns of 23.40% since the start of the year, making it the best mutual fund in terms of returns since Jan 1, 2021. This is only for mutual funds in the largecap category. Franklin India Bluechip Fund tends to invest in a range of companies, with a bias towards large cap companies. The longer term returns from the fund are 13.44% on an annualized basis for 3-years and 11.12% on an annualized basis for 5-years.

It’s important to understand that we are just providing information on best returns since Jan 1, 2021 and are not recommending any of these funds. An SIP can be started under Franklin India Bluechip Fund with a small sum of Rs 1,000 every month.

Tata Large Cap Fund

According to research from Morningstar this is the fund that has taken the second position from among largecap stock schemes for highest returns since the start of the year. It has given a year to date returns of 20.87%. This fund tends to invest in largecap bluechip companies. Again, we are just providing information and not suggesting to invest by any chance.

Interestingly, an SIP is also possible in the fund with a sum of just Rs 150 per month. The Tata Large Cap Fund is not a very big fund in the sense the assets under management is less than Rs 1,000 crores. The 3-year returns are 12.6%, while the 5-year returns are 11.91%. Tata Large Cap Fund has invested in stocks like ICICI Bank, HDFC Bank etc.

Mahindra Manulife Large Cap Pragati Yojana

With returns of 19.38% since Jan 1, 2021, this fund has been ranked No 3 in ratings for year to date returns by Morningstar in the largecap category. This fund is a new fund launched only in 2019 and hence it is not possible to analyze the long term returns etc. The fund is very small and has assets under management of only Rs 123 crores. It has holdings in stocks like Infosys, ICICI Bank and Relaince Industries.

An SIP is possible in the fund with a sum of Rs 1,000 every month.

Nippon India Large Cap Fund

Again, like peers mentioned above this is a largecap fund which invests in the biggest listed companies in the business. The fund is ranked fourth in terms of year to date returns of 18.86%.

Interestingly, one can start an investment with a small sum of Rs 100 and the minimum investment required is also Rs 100. The 3-year returns is almost 13.5% on an annualized basis, which is in line with how the markets have also performed over the years. However, the fund has only been accorded a 2-star rating from Value Research. We wish to emphasize the fact that the Sensex at near 53,000 points is at a new record and any large scale exposure to largecap equity mutual funds could erode wealth should the markets fall dramatically from these levels. It’s hence more prudent to invest, if you want to through the SIP mode.

IDBI India Top 100 Equity Fund

This is another largecap fund with year to date returns of 18.21%. The fund is a large cap fund with exposure to stocks like Reliance Industries, HDFC Bank, Infosys and ICICI Bank. We do not suggest investing in any of the funds mentioned above as the markets have gone up sharply. As such you can consider SIPs which is a better option against wild market fluctuations.

Disclaimer

Investing in equity mutual funds is risky, so investors need to be cautious. Neither Greynium Information technologies nor the author would be responsible for any losses incurred due to a decision based on the above articles Please consult a professional advisor and remember the markets have run-up sharply.

Market share increases despite tough competition

According to Geojit, the company in FY21 ended reported total income of Rs 3626 crore-growth of 54 per cent over FY20. The net profit increased to Rs 1245 crore in FY21 as compared to Rs 183 crore of FY 20. “Despite tough competition in the broking industry, MOSL could increase its active clients and market share. The revenue market share in the broking industry increased to 2.7 per cent as compared to 2.4 per cent of FY20,” the brokerage has said.

Company could do well in the June quarter

According to Geojit, the broking industry would see consolidation due to higher compliance costs and falling brokerage rates, helping established players like MOSL to gain market share. “The buoyant market condition does suggest that the company should do well in the first quarter of June 2021 too,” the brokerage says.

Wealth business to benefit topline

Geojit believes the company is focussing on the wealth business, which believe should help the company to expand top line as well as the bottom line.

Housing finance boost

“The housing finance business was struggling a few years back, but now it’s gaining strength. It reported the highest NIM. The management has guided that they will be able to maintain a lower cost of borrowings,” Geojit has said in its report.

Insurance distribution to aid profits

According to the broking firm, the company has entered insurance distribution business which should help the company to report higher profit growth.

Healthy promoters stake

The promoters stake stands at a healthy 70.66 per cent while both FIIs, as well as DIIs, have increased stake in the company for March 2021 quarter as compared to December 2020 quarter. Geojit has noted.

Stock market is booming

According to the brokerage house, MOSL is a good proxy to ride a boom in the stock market as most of its businesses are dependent on the good sentiments of the market

Solid promoters

The company is managed by two renowned personalities-Motilal Oswal and Raamdeo Agrawal, Geojit has noted.

Healthy ROE and Technical indicators bullish

Geojit has said that the company enjoys healthy ROE of 38 per cent and technical indicators are suggesting the bullish trend.

Disclaimer

Views mentioned herein are taken from the brokerage report of Geojit. Neither the author, nor the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.