Month: September 2021

Top 5 Mid Cap Equity Dividend Funds to consider now

Kotak Emerging Equity Scheme

The assets under management of Kotak Emerging Equity Fund Direct-Growth have valued at Rs 15,709 crores (AUM). Kotak Emerging Equity Fund’s NAV for September 14, 2021, is 78.87.

It has returned an average of 21.93 percent per year since its inception.

The scheme invests primarily in mid-cap companies in order to produce long-term capital appreciation via a portfolio of equities and equity-related instruments.

If you invested Rs 5000 every month for three years, you would have received Rs 3.12 Lakh in returns. The amount would have been Rs 37,801 if a lump sum of Rs 20,000 had been invested.

Sundaram Mid Cap Fund

Sundaram Mid Cap Fund has a total asset value of 6,926 crores under management (AUM). It has returned an average of 18.36% every year since its inception.

The scheme invests in mid-cap stocks with the goal of capital appreciation. The fund defines a’midcap’ stock as one whose market capitalization does not surpass that of the 50th stock listed on the NSE (after sorting the shares in descending order of market capitalization). Sundaram Mid Cap Fund’s NAV for September 14, 2021 is 753.54.

L&T Midcap Fund

L&T Midcap Fund Direct-Growth manages a total of 6,948 crores in assets (AUM). It has returned an average of 21.12% every year since its inception.

To gain financial appreciation by predominantly investing in midcap equities. The Scheme will largely invest in firms whose market capitalization falls between the Nifty Free Float Midcap 100 Index’s highest and lowest constituents.

If you invested Rs 5000 every month for three years, you would have received Rs 2.77 Lakh in returns. The amount would have been Rs 30,944 if a lump sum of Rs 20,000 had been invested.

Taurus Discovery (Midcap) Fund

Taurus Discovery (Midcap) Fund Direct-Growth manages assets worth $75 million (AUM). Chemicals, Financials, Metals, Technology, and Construction make up the majority of the fund’s holdings.

It has returned an average of 18.28 percent per year since its inception.

The Scheme invests in a portfolio of equities and equity-related instruments, mostly from mid-cap firms, with the goal of achieving long-term financial appreciation.

If you invested Rs 5000 every month for three years, you would have received Rs 2.86 Lakh in returns. The amount would have been Rs 32,412i f a lump sum of Rs 20,000 had been invested.

SBI Magnum Mid Cap Fund

SBI Magnum MidCap Direct Plan-Growth manages assets of Rs 6,056 crores (AUM). The Construction, Automobile, Engineering, Financial, and Consumer Durables sectors account for the majority of the fund’s holdings.

The 1-year returns on SBI Magnum MidCap Direct Plan-Growth are 74.7 percent. It has returned an average of 20.61 percent every year since its inception.

By investing primarily in a highly-diversified basket of equity equities of Midcap businesses, the scheme intends to provide investors with potential for long-term capital growth as well as the liquidity of an open-ended scheme.

If you invested Rs 5000 every month for three years, you would have received Rs 3.11 Lakh in returns. The amount would have been Rs 35, 801 if a lump sum of Rs 20,000 had been invested.

How is Dividend Yield calculated in Mutual funds?

The dividend yield is calculated by multiplying the total dividends paid over the term by the stock’s current NAV (Net Asset Value). After that, the outcome is annualized. The gains from mutual fund schemes are used to pay dividends. As a result, whenever a scheme announces a dividend, its NAV decreases accordingly.

The following formula is used to determine the dividend yield ratio: Dividend Yield Ratio is calculated by multiplying the dividend per share by the market value per share. The dividend yield ratio can be calculated simply by taking the amount of dividend per share and dividing it by the market value of each share.

Disclaimer

This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.

Atal Pension Yojana (APY) is a guaranteed pension scheme of the Government of India. The scheme is mainly beneficial for all citizens of the unorganized sector. The Pension Fund Regulatory and Development Authority (PFRDA) administers the plan through banks and the Department of Post. After reaching the age of 60, eligible Indian citizens who enroll and contribute to the scheme are entitled to guaranteed pension benefits. Subscribers to the APY get a guaranteed minimum monthly pension of between Rs. 1000 and Rs. 5000 each month.

Under the scheme, premature exit before the age of 60 is only authorized only in extreme situations, such as the death of a beneficiary or the onset of a life-threatening illness. However, recently PFRDA has revised premature exit rules of APY. According to the circular issued on 3rd September 2021 “The existing mode of premature withdrawal under APY is examined from time to time by PFRDA based on the inputs/suggestions received from various stake holders and the changes are proposed with suitable technological intervention.”

In order to expedite the administration of underlying Subscribers’ exit applications, PFRDA has now implemented Instant Bank Account Verification feature. PFRDA has said that “The following guidelines are issued for facilitating timely transfer of withdrawal amount in the Bank Account of APY Subscribers and also as an additional due diligence to protect their corpus lying in the Permanent Retirement Account Number (PRAN).” At the time of exit, there could be two scenarios, as stated below according to the new guidelines of PFRDA:

A. If the SB account details of Subscribers at the time of onboarding & exit are same

1. APY-SP should incorporate the field indicating the active status of Savings Bank (SB) Account in the revised exit file format provided by CRA which is mandatory w.e.f. Sep 15th, 2021.

2. Further “Instant Bank Account verification by penny drop” shall also be undertaken by CRA to verify the operative status of SB Account as part of enhanced due diligence.

3. The above changes are being implemented to enable the CRA system to process the premature withdrawal requests where the associated SB Account is operative so as to ensure receipt of APY account closure proceeds in the SB account.

4. If the associated SB Account is closed/dormant, the modified process ensures the preservation of Subscribers’ contribution in the PRAN itself to generate optimum market-based returns.

B. If the SB account details at the time of onboarding & exit are not same, different Account Number of same Bank or the different Bank

1. APY SPs are advised that the APY closure proceeds are credited to the same Bank Account number and may accept the request with a different Account number or account of a different Bank only as an exception. Such requests are to be accompanied by proof of Alternate Account Number acceptable to the Bank.

2. “Instant Bank Account verification by penny drop” shall be undertaken by CRA as part of enhanced due diligence including the name matching between PRAN and Bank Account Number.

3. The exit requests with mismatches or with unsuccessful account verification, post penny drop is to be confirmed by the respective APY-SP for further processing of exit requests by CRA.

4. APY Subscribers are to be educated by APY-SP to keep their respective Bank account active when they submit their premature withdrawal request, till their request for a premature withdrawal request is processed. A suitable undertaking can be obtained from the Subscriber as part of the withdrawal request.

5. The applicable charges for Instant Bank Account verification would be recovered by CRA from the respective PRAN for further reimbursement to the service provider. The prevailing charges for verifying Bank Account Number through penny drop is Rs. 2.40/- and tax.

Source: PFRDA