Suggested InvestmentHorizon: >3 years
Time taken to doublemoney: N.AThe fund manager would adopt a three-pronged approach for stock picking. As a first step identify companies that are leaders with the highest market share, ROE/ROCE. Secondly, the fund manager would identify challengers with the possibility of superior earnings growth versus leaders due to market share gains and acceptable average ROE/ROCE of more than 15%.
Finally, the fund manager would look to identify new themes, stocks and sectors which are witnessing cyclical tailwinds. Using this strategy to pick stocks and create a portfolio, the fund manager hopes to generate alpha.
Even though there are several focused funds already, financial planners feel there is merit in the new fund offer due to its strong past performance in the equity space. Several of its existing funds in large, large and midcap, flexicap, ELSS are among the top performers in their respective categories over the last three- and five-year peri
HDFC raises FD rates upto 25 bps indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
Suggested InvestmentHorizon: 3 month
Time taken to doublemoney: 9.7 YearsReturns from arbitrage schemes have been almost similar to that of liquid schemes. In the past one year, arbitrage schemes have returned 3.01% on an average, while liquid schemes have generated 3.54%. In the past three months, arbitrage schemes have generated 2.68% as against 2.96% by liquid funds.
Investment advisors expect returns from arbitrage schemes to improve in the months ahead.
“There is heightened volatility in the equity markets which will lead to higher spread between spot and future prices, thereby generating higher returns,” says Viral Bhatt, founder, Money Mantra. He expects arbitrage funds to generate about 50-100 basis points higher returns than liquid funds over the next three to six months.
Depolarisation, rise in corporate earnings work well for DSP Equal Nifty 50 Fund
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Synopsis
Over the last one year, the fund has delivered 28% compared to the Nifty s 22%. It has gained 112% from its lows of March 23, compared to the Nifty s 91.5%.
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Investors looking for a low-cost, smart beta product that will benefit from depolarisation in the Nifty 50 as corporate earnings pick up can consider the DSP Equal Nifty 50 fund.
The fund is passively managed and has the same constituents as the Nifty 50, with a 2% allocation to each stock. As the stock market rally gets broad based and earnings growth catches up, the strategy could outperform the Nifty 50.
5 tax-saving investments for you
The limit for investing in tax-saving instruments is Rs 1.5 lakh for income earned in 2020-21.
Note to readers
: Every year, our last date to plan for our income-taxes is March 31. Yet, despite knowing this, we procrastinate and postpone our income tax planning. But this financial year (2020-21) has been tough due to Covid-19 and many of us lost our incomes and jobs. While we hope for better times ahead for our readers, now is a good time to plan our tax-saving investments if we haven’t done it already. Our first story answered five crucial income tax planning related questions. The second story, here below, talks about the best five tax saving instruments. And the last instalment in this series, is about 4 most common mistakes we make while planning for our taxes.