Month: July 2021

1. SBI Bluechip Fund

This is probably the largest mutual fund scheme from the SBI stable and has assets under management of Rs 28,000 crores plus. The fund was started way back in 2006 and has generated returns of almost 12 per cent on an annualized basis since its launch.

This fund invests in some of the larger companies, more often called largecap. Exposure of SBI Bluechip Fund is in stocks like HDFC Bank, ICICI Bank, Infosys, HCL Technologies, Larsen and Toubro and similar largecap stocks.

The net asset value under the growth plan is currently around the Rs 55 mark. The 1 year returns from the fund is nearly 50%.

Who should buy the SBI Bluechip Fund?

Investors who are willing to take the risk, can invest in the SBI Bluechip Fund. Remember, this fund is a largecap fund and any fall in the markets, could lead to a fall in the value of investments. This is why it is so important to realize that the best way to go about when investing in largecap equity mutual funds is through the SIP route. So, if this month your SIP happened at a very high NAV because markets fell, next month you can average out the cost if the markets suddenly fall.

As far as SBI Bluechip Fund is concerned you can start off with a small SIP of Rs 500 per month.

2. SBI Focused Equity Fund

The SBI Focused Equity Fund provides investors long-term capital appreciation by investing in a concentrated basket of equity and equity related securities. Unlike the SBI Bluechip Fund, this is a flexi cap fund. What this means is that the fund invests in companies that are large, mid size and also smaller in size. This is also not a very small fund and has sizeable assets under management of nearly Rs 17,000 crores.

It was launched much before the Bluechip Fund in 2004 and currently has a net asset value of more than Rs 213 under the growth option. The fund is suitable for those looking to invest for a tenure of about 5-years or so.

SIP for SBI Focussed Equity Fund

You can start an SIP in the fund through an investment of Rs 500 each month. The 1-year returns from the SBI Focused Equity Fund has been 50.23, which is not bad at all. We suggest investors to go only for SIP and not the lumpsum mode.

SBI Focussed Equity Fund has holdings in stocks like Muthoot Finance, State Bank of India, Alphabet Inc Class A, Divis Labs etc.

3. SBI Small Cap Fund

We wish to begin with a warning. The SBI Small cap Fund is only for those investors who are willing to take a risk. We say so, because small cap stocks are volatile and if the benchmark indices fall, they could fall faster, thus eroding capital significantly. On the other hand, if the markets rally they could give higher returns than the markets.

SBI Small Cap Fund has given solid returns of 84% in the last 1-year as markets have rallied. Therefore, it is good to invest through the SIP mode.

How to go for SIPs for SBI Small Cap Fund?

Invest in the fund through the SIP route, through a small sum of Rs 500 each month. A small sum of Rs 10,000 invested each month would have resulted in a sum of Rs 6.11 lakh. Investors who are willing to invest for 5 years or so, could reap good returns.

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.

Aditya Birla Sun Life Low Duration Fund Direct Growth

Aditya Birla Sun Life Low Duration Fund Direct-Growth returns over the previous year were 5.40 percent, according to Value Research. It has returned an average of 8.59 percent every year since its inception. The fund’s expense ratio is 0.4 percent, which is comparable to the expense ratios charged by other funds in the same category. GOI, National Bank For Agriculture & Rural Development, Reserve Bank of India, Axis Bank Ltd., and Rural Electrification Corpn. Ltd. are among the fund’s top holdings.

For risk-averse investors, the fund has no lock-in period and no exit load, making it a solid pick. The fund currently has an AUM (Asset Under Management) of Rs 19,096 Cr and the most recent NAV as of 9 July 2021 is Rs 560.03. The fund has been rated low to moderate risk and one can start SIP with Rs 100 per month.

Kotak Low Duration Fund Direct Growth

The fund has a grade of moderate-risk and has been rated 5 star by Value Research. According to Value Research, it has offered an average yearly return of 8.57 percent since its inception. GOI, Reserve Bank of India, Housing Development Finance Corpn. Ltd., Karnataka State, and National Bank For Agriculture & Rural Development are among the top holdings of the fund, and the fund has an expense ratio of 0.41 percent. The fund has no exit load and has an AUM of Rs 13,850 Cr. As of July 9, 2021 the fund’s NAV is Rs 2812.80. With a minimum amount of Rs 1000 one can start SIP under this fund.

HDFC Low Duration Fund Direct Plan Growth

The fund has a low expense ratio of 0.44%, zero exit load, and 1-5 year returns are higher than the category average returns. The one-year growth rate of the fund is 5.88 percent. According to Value Research, it has provided an average yearly return of 8.20 percent since its debut.

Reserve Bank of India, National Bank For Agriculture & Rural Development, Indian Oil Corpn. Ltd., Union Bank of India, and Tata Teleservices Ltd. are among the fund’s top holdings. The debt sector allocation of the fund is allocated between sovereign, financial, and communication.

The fund presently has an asset under management (AUM) of Rs 26,073 Cr and the latest NAV is Rs 48.27 as of 9 July, 2021. One can start SIP in this fund with a minimum monthly contribution of Rs 500.

ICICI Prudential Savings Fund Direct Plan Growth

The fund has an expense ratio of 0.42% and the 3-5 year returns are higher than the category average returns. ICICI Prudential Savings Fund Direct Plan-Growth returns in the previous year were 5.37 percent, according to Value Research. It has returned an average of 8.38 percent per year since its inception.

Reserve Bank of India, Panatone Finvest Ltd, State Bank of India, Indian Oil Corpn. Ltd., and Pipeline Infrastructure (India) Pvt. Ltd. are among the fund’s top holdings. One can SIP in this fund with a minimum of Rs 100 with no exit load. The current AUM of the fund is Rs 32,102 Cr and the most recent NAV of the fund is Rs 425.93 as of 9 July, 2021.

Best Performing Low-Duration Debt Funds In 2021

Here are the best performing low duration debt mutual funds based on ratings and past returns.

Should you invest?

Currently, where the equity market is at a record high, investing in secure debt funds is strongly suggested. And for generating FD like fixed-income, investing in low-duration debt mutual funds for the short-term can be the best bet. Low-duration debt funds are suitable for those who have a short-term personal finance goal of 1 year to 3 years. Among the best and secure short-term investments, low-duration debt mutual funds are mostly preferred by risk-averse investors as they don’t have equity-linked risk. For a tenure of 1 year, low-duration debt funds can give you higher returns than fixed deposits.

According to Value Research, the 1-year average returns of low-duration funds are 6.11%. Whereas the 3-year returns are up to 8.05%. No matter that fixed deposits investments are insured by DICGC up to Rs 5 lakhs, investing for 1-year in a fixed deposit account of leading banks such as SBI would give you a low-interest rate of only 4.40%. But if you keep credit risk, interest rate risk and liquidity risk in mind, low-duration debt funds can give you higher returns than a savings account or fixed deposits in the short term.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

What are the key features of Aadhar Shila plan?

The LIC Aadhar Shila policy is a non-linked participatory endowment plan designed to increase savings and provide financial security in the event of an emergency.

• This is a plan that is only available to women.
• It is a low-cost plan.
• Because the Aadhar Shila Plan is an endowment plan, the policyholder will receive a lump sum maturity benefit at the conclusion of the policy term.
• This plan provides loyalty addition at maturity or in the event of death after FIVE years.
• The plan includes a loan facility.
• The plan includes auto-coverage.
• This plan does not include a critical illness rider.
• This plan allows for the reinstatement of lapsed insurance policies.

Benefits of LIC Aadhaar Shila Policy

Death Benefit

In the event of the insured’s death, a lump sum amount known as the death benefit will be paid. The death benefit payable will be the greater of the following:

10 times the annualised premium or 105 percent of all premiums paid, or the absolute sum assured, which will be 110 percent of the basic sum assured.

If the policyholder passes away within the first FIVE years of the policy, the nominee is eligible to receive a death benefit equal to the sum assured. The death claim amount in this situation will be equal to 110 percent of the basic sum assured available under the policy.

If the policyholder dies after the first FIVE years but before the maturity of the LIC Aadhar Shila policy, the nominee is entitled to the base sum assured plus the loyalty addition.

Benefits of LIC Aadhaar Shila Policy

The maturity benefit is the lump sum payment made to the policyholder at the end of the policy period. The insured receives the maturity benefit if they live to the conclusion of the insurance contract.

The insurance contract is ended once the maturity benefit is paid.

The maturity benefit that a policyholder is eligible to earn under the LIC’s Aadhar Shila Plan is equal to the basic sum assured plus loyalty additions.

Please keep in mind that this maturity sum assured is only payable if the policyholder has paid all of the premiums during the life insurance policy’s term.

Benefits of LIC Aadhaar Shila Policy

Loyalty addition

If the insured has completed at least five policy terms and the premium has been paid on time, the insured may be entitled for loyalty adds when the policy is renewed owing to the scheme maturing or if the person dies. If the insured surrenders her policy, she may be eligible for a loyalty bonus if she has completed a minimum of five policy terms and has paid all of her premiums on time.

Tax Benefits

• The premiums paid for the plan are tax-free under Section 80C of the Internal Revenue Code.
• Maturity Claim – Under Section 10(10D) of the Income Tax Act, the maturity amount is tax-free.
• Death Claim – Under Section 10(10D) of the Income Tax Act, death claims received under the plan are tax-free.

Exclusion- What this plan doesn’t cover?

The plan will be terminated in the following circumstances:

The arrangement will come to an end if the insured commits suicide within a year of acquiring the coverage. If the insurance is still current, the insurer is only responsible for paying 80% of the total premiums paid.

If the insured commits suicide within a year of the plan being revived, the nominee will get the higher of the total surrender value or 80 percent of the total premiums paid.

The maximum sum assured accessible under this plan is Rs 3,00,000.00.

The Accident Benefit Rider is available to subscribers of the LIC’s Aadhar Shila Plan. This rider’s sum assured cannot exceed the sum assured available under the basic insurance.

How to avail LICs Aadhar Shila Policy?

You can buy the LIC Aadhar Shila Plan online by visiting www.licindia.in and looking for the ‘buy insurance online’ option. You may easily and quickly acquire the Aadhar Shila Plan with just a few clicks. LIC’s Aadhar Shila Plan is also sold through a number of online insurance aggregators; a list of these top online aggregators can be easily obtained by conducting an internet search.

You can also buy by visiting LIC branch or through agents.

How Women Aadhaar Holder will benefit from this plan?

Women investors will need to start paying Rs 10,959 per year for the next 20 years in order to grow their investment to nearly Rs 4 lakhs, plus pay a 4.5 percent tax. On a daily basis, your savings will be approximately Rs 29.

You’ll pay Rs 2,14,696 to LIC during the next 20 years. However, when your investment matures, LIC will return you Rs 4 lakh.

LIC Aadhar Shila Plan