Axis Multicap Fund(MCF) has been launched on 24.11.17 (roughly 2 years back).

Now it is one among the best performing funds in Multicap category.

Though there are many schemes in the multicap category this fund’s performance is very notable from the very beginning. This is because of their portfolio selection.

Let’s see about the fund in detail,

Fund Manager – Shreyash Devalkar.

He is a fund manager with around 14 years of experience who manages 9 schemes(debt and equity).

Where are do they invest?

Axis Multicap invests in the Nifty 500 TRI. Which means they have options to select large,mid and small cap stocks.

Axis MCF consists of a 25 stocks portfolio with a portfolio turnover ratio of 91%. Which means the fund manager is updating the stocks very often.

What do they have?

Axis MCF consists of,

• Large Cap – 77.32%
• Mid Cap – 2.52%
• Small Cap – 0.87%
• Debt – 1.26% (Bonds and NCDs)
• Others – 5.82% ( TREPS and FDs)

How do they perform well?

From their pattern of holdings it is clear that they hold large caps in huge numbers. Which means they are using the current rally of large cap stocks. Addition to it while analysing the portfolio we can see that they nearly hold 44% in top 3 stocks of their holding. Those are all the large cap ones(Bajaj Finance Ltd., Kotak Mahindra Bank and HDFC Bank) which benefits the fund in a huge manner.

Who can invest?

Axis MCF is best suitable for the investors having a term of 5 years to grow. This fund is obviously apt for risk takers who are ready to take a moderately high risk.

How to invest?

At this point of time Systematic investments will be the best option to enter the fund.

What can an investor expect?

On waiting for 5 years an investor can expect a CAGR of 15% minimum.

To conclude, if an investor is looking for a good return and have 5 years of time who is also ready to take a little bit risk this fund is best suitable. In addition if they enter the fund in a systematic way(SIP or STP) it will be highly beneficial.

Happy Investing!

– Thiru

Nirmala Sitharaman the FM of India today (6.11.19) after a cabinet meeting said that the government is funding ₹10000 Crores towards the Alternative Investment Funds for Real estate which will be a relief to the Realty Developers with unfinished projects to complete the same and deliver.

Additionally government has also spoken with SBI and LIC for an additional funding of ₹15000 crores. This sums up to ₹25000 crores. This investment will be managed by the SBI Cap ventures.

Who will get funded?

The projects fulfilling the following criterias are eligible for the funding:

• Net-worth positive (The project’s assets outweigh its liabilities)
• Affordable & middle-income housing project
• On-going projects regd with RERA(Real Estate Regulatory Act)
• Reference by existing lender
• Include stressed projects classified as NPA & NCLT

Who are getting benefited?

• The realty developers with roughly 4.5 lakhs housing units.
• The housing units with a value less than ₹1 Crore in non metros and ₹2 crores in metros.

This means the buyers are the real beneficiaries. This will be ultimately beneficial to those who have made an advance and aren’t got delivered their housing units.

To conclude Realty gets its own dose of reforms which is beneficial to many citizens who are waiting for their half built homes to be delivered and the ones looking for homes. Eventually it will also be a good boost to the real estate sector to overcome the sluggishness.

– Thiru

RCEP(The Regional Comprehensive Economic Partnership) is a free trade agreement between 16 member countries.

What does a free trade means?

A free trade is a trade in which these countries will trade without any tariff on their goods.

What are the benefits?

One can sell their products without any additional tariff. That means their prices gets competitive. So sale will be high.

Why didn’t India sign?

India is a country where we mainly trade IT(Information Technology) which is not playing a notable role in this agreement. On the other hand 40% of our trades are with this 15 countries. Which means they are getting benefitted more than us.

What do we lose if we sign?

Their farm goods and electronics will occupy the Indian market. Which will eventually let our producers to lose.

What India wants to sign the agreement?

India wants the agreement to be mutually beneficial. So, India is willing to set limits on free trade and after which the tariffs kicks in. By this way it will be beneficial for India and others too.

To conclude RCEP is a big deal. The decision taken for now is good for our own manufacturers and farmers. Thumbs up to the government for the decision.

– Thiru

Eid is a day to cheer and to laugh with all your heart. It’s a day to be grateful to god for all of his heavenly blessings on us. Wishing you a happy Eid.

Happy Investing!

– Thiru

There is a famous saying in English

“I could calculate the motions of the heavenly bodies, but not the madness of the people”

This was said by the famous scientist Issac Newton. Everyone knew that he is a very knowledgeable person.

But why he has to say this about people?
What is the relation between the words and stock market?
Let’s see…

Newton had invested in a well-known company South sea at England. He has made a 100% profit from that investment. Months after he saw that the share went up very high. Immediately he made a huge investment into it. Which went on a very high loss. That made him utter the above saying. From that point onwards he hate anyone telling ‘South Sea’ for his entire life.

But on the other side the stock again grew up tremendously. The thing is he wasn’t interested and got shocked and stucked with the loss which made him not to invest in stock markets thereafter.

Now let us come to the answer for the question. Obviously NO!!!
Investors don’t want to be strong technically. Investors has to be keen about their reason, expectation and timing of investments.

Alpha,Beta and Standard Deviation have nothing to do with investments. The only thing matters is patience.

Sensex has an average return of 16% but churning investor’s average return is only 7%. This clears the point that running behind market will not be a good choice. Waiting will yield the expected result.

To be an investor you have to know only the needs(goals), time period and expected return . If you are clear on that you can make a very clear decision. The real thing matters is patience and emotional control over the investments.

– Thiru

Happy Investing!

Thanks for joining me!

Good company in a journey makes the way seem shorter. — Izaak Walton