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UTI Core Equity Fund Regular Plan-Growth

This Large & MidCap mutual fund was launched in 2005 and thus has been in existence for the last 16 years. According to Value Research, UTI Core Equity Fund Regular Plan-Growth returns for the past year have been 71.52 percent, with an average annual return of 13.40 percent since its commencement. The expense ratio of this medium-sized fund in its category is 2.53%, which is much higher than the expense ratio of most other Large and MidCap funds. The financial, technology, construction, energy, and healthcare sectors are all heavily represented in the fund’s equity allocation.

ICICI Bank Ltd., HDFC Bank Ltd., Housing Development Finance Corporation Ltd., Infosys Ltd., and State Bank of India are among the fund’s top five holdings. CRISIL has given the UTI Core Equity Fund Regular Plan-Growth fund a 1-star rating, Value Research has given it a 3-star rating, and Morningstar has given it a 2-star rating, indicating how the fund has managed with risk and price tweaks compared with other funds under the Large & Mid Cap fund category. If assigned units are redeemed within one year of the investment date, the fund imposes a 1% exit load. The fund has a Net Asset Value (NAV) of Rs 99.03 crore and an Asset Under Management (AUM) of Rs 1,157.73 crore as of October 1, 2021.

Mirae Asset Emerging Bluechip Fund Direct-Growth

This Large & MidCap mutual fund is a medium-sized fund of its category and has been in existence for the last 8 years. According to Value Research, Mirae Asset Emerging Bluechip Fund Direct-Growth returns over the last year have been 68.04 percent, with an average annual return of 25.87 percent since its debut. The fund has a major equity allocation across the Financial, Healthcare, Technology, Automobile, Energy sectors. The fund has an equity holding of 98.7% and a cash allocation of 1.3%. The fund’s best-performing holdings are ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., Infosys Ltd., State Bank of India.

The fund’s expense ratio is 0.69 percent, which is lower than the expense ratio of most other funds in the same category. The fund charges an exit load of 1% if purchased units are redeemed within 1 year of the investment date. Mirae Asset Emerging Bluechip Fund Direct-Growth fund has been ranked 1 by CRISIL, 5 star by Value Research and again 5 star Gold by Morningstar which is only the indicator of the fund’s past performance and which not only should be your only criteria while investing. As of 1st October 2021, the fund has a Net Asset Value (NAV) of Rs 105.63 Cr and Asset Under Management (AUM) of Rs 20,615.27 Cr. With a minimum amount of Rs 1000, SIP can be started in this fund.

Best Performing Large & Cap Funds In 2021

Based on CRISIL’s “No.1” ranking and past performance of over 70% returns, here are the two best performing large and mid-cap funds that you can consider to initiate SIP in 2021.

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Two major fundamentals of gold investment are – diversifying the risk in the investment portfolio and keeping the asset as a hedge against inflation. The present global economic status could not be more appropriate on these 2 grounds as the USA is dealing with a ‘transitory inflation’, and volatile equity and bond yields. Present inflation is being identified as ‘transitory’ because it is an impact of the post-pandemic period, according to experts. With strict monetary policy by the US Federal Reserve, and faster manufacturing growth and employment opportunity, inflation might be in control in the next year. On the other hand, the equity market and treasury yields are rising and fetching around 1.52%, with Fed’s strong confidence in the economy. But as the equity market can go volatile again, any time, one investor must be ready for it. Fitch Ratings thinks US AAA sovereign credit rating could be under pressure if the Fed does not address the debt ceiling issue soon. In that case, gold can emerge as a savior again.

A Kitco Gold survey recently stated the participants’ views, – on the Wall Street, gold is going 50% bullish and 29% bearish, and 21% at a neutral position, while on the Main Street gold market is going 48% bullish and 38% bearish, and 13% at a neutral position. The survey also says, “Bullishness among retail investors has picked up.” The last traded spot gold price was $1762/oz, and Comex December futures stayed around $1758 and more. This bullish trend is expected to strengthen in October, waiting for Fed’s comment on their monetary policy in the November meeting. Commenting on this bullish trend of gold and inflation, Ole Hansen, Head of Commodity Strategy, Saxo Bank told Kitco, “Gold is slowly disconnecting from dollar and yield strength as the inflation story becomes anything but transitory.”

Concerns of traders and investors

Asset trading and investing are treated differently. On gold, platinum, and silver trading and investing, some experts think, “When they are traded, you use a method and a plan to enter and exit with strict rules on both. When you invest, you also have a set of rules but not as stringent.” Keeping this in mind, one investor must keep faith in gold for the long term. In early October, gold rates are gaining promisingly, but any scale of Fed tapering will pull down the prices later this year. Experts are more bearish about 2022’s gold rate anticipations. So, what should the investors do? Should they stop buying the asset? Rather the opposite. They can invest in the asset class keeping the long haul portfolio in mind. Because, even if the tapering happens from December, this year or early 2020, the Fed will keep buying government-backed bonds, only the pace will be slower.

Traders, on the other hand, can be more stringent to fix their entry-exit strategies, as the gold prices will impact them more in the short-term period. On this note, we can derive Christopher Vecchio, Senior Market Strategist, DailyFX.com comment as he said, “I would expect gold to rally as this crisis builds, but we have been here before, and when these issues are resolved, prices could fall like a brink.” So, traders should be more strict and cautious about that.

Indian investors should not worry about the current bullish or bearish sentiment a lot. India is the second-largest importer of gold, and domestic gold consumption is only rising with time. RBI, the Indian central bank is also keeping faith in the asset class and increasing gold reserve. Hence, walking on the same line of thoughts will help them to understand India’s policy on the asset class, which is bullish at present.