Mutual Fund Sahi Hai: Performance of 90's Fund

Recent few years many investors joined Mutual Funds and each month now more than 8000cr inflow is coming in market via Mutual Fund SIP.

The AUM of the Indian MF Industry has grown from INR 5.45 trillion as on 31st August 2008 to INR 25.20 trillion as on 31st August, 2018, more than fourfold increase in a span of 10 years!!
Now, MF AUM was 7.66 trillion as on 31st August 2013, so major growth came in 2013-2018 of bulls period only.

For past 2 month Equity market is falling continuously and many SIP started in last 2 years are now showing negative or flat returns. Many of this SIP investors are first time investors and now they are not getting return as they expected from mutual fund. 

To make it clear why mutual fund is best investment to all Mutual Fund investors , we have extract data of mutual fund schemes launched in 90's. This schemes are now more than 20 years old and have seen dot com crisis, 2008 financial crisis and many such big market falls.

Let's have look at the growth of 1 lakhs in this schemes from inception till today (As on 21st Oct 2018)

1lakhs invested in Reliance Growth Fund in 1995 turns into 99lakhs in 23 years. This is the real compounding effect of mutual fund.  

If someone started SIP of 1000INR in Reliance Growth Fund - Regular (G) since its launched (8th Dec 1995) and continued till today (22nd Oct 2018) , than one has invested 2.75lakhs in 275 months and current value of this investment is 57lakhs with CAGR of 22%. Any FD, PPF, Money Back Insurance can not give such a returns, even they can't even give half of this return in this time frame. 

So don't let market volatility change your perception about Mutual Fund . #MutualfundSahiHai

If you have any query about mutual fund  or if you want to start new SIP, you can contact us on

+91 9033360239. We are certified mutual fund advisor and we provide best possible investment solution for your financial goal.

Be Smart. Invest Smarty.

India - The Growth Story.

On this Independence Day we like to share Future Growth story of India, the land of opportunity and some Business which will provide our investors best growth opportunity.

Key Points:

 

• Indian was at 10th Position in Global economy in 2011, and in 2018 we are at 6th Position.
• 30% of Population are young which one of the largest in the world.
• We are the world's faster-growing economies surpassing China.
• Major Reform like bank insolvency code, GST implemented in last 2 year which are the game changer for country.

The Bharat Growth Story Stocks to look for:

Here Motocorp: Staidly farmer’s income is growing and two wheeler is one sector where major chunk of this income will be use. And Hero Moto will be the one key player in this sector.

M&M: M&M is one of the diversified player in segment of Tractor, Agri Machinery, Commercial Vehicles, and now Electric Vehicle.

SBI: The Biggest Public sector Bank of County will definitely lead the financial sector growth.

Maruti: Indian is now 4th largest auto market and many middle class families is shifting from 2 wheeler to 4 wheeler and Maruti competence in Car market in unmatched.

HUL: The FMCG giant has touched all part of county. Growing income of individual is first spent on FMCG essential products.

Voltas: Indian AC market penetration not more than 4% despite being 6th largest economy and this figure is bound to change and Voltas backed by Tata Group is key player for this segment.

Asian Paints: Housing for all is major scheme of GOI and Asian Paint is one of the key players for this boost.

HDFC Assets Management: Indian Mutual Fund AUM is 11% of GDP growth which is lower than much country like Australia, Brazil, and France. With growth of Country huge retail money is likely to flow in Market via Mutual Fund. HDFC AMC with 14% market share of Industry is one of the key beneficiaries.

L&T: From Road to Rail, From Building to Airport, L&T is do all kind of Infra work and no country can grow without it Infrastructure growth. 

TCS: TCS is IT giant of the world. With 4lac+ Employee TCS is driving the Digital Growth of Country.

There are many other story which inclusively take part in growth of Our County. As Investor when you invest in company you are investing in Growth of Country. In next 10 years India has potential to become 3rd largest economy in the world.

You either can watch it happening or take part of this growth by investing in the key drivers of it.

Be Smart. Invest Smartly.

Happy Independence Day.

Big Bigger and the Biggest of Equity market.

For last 12 months Indian Equity market witnessed big shift in sector allocation. While Blue chip Stocks hitting life high , mid and small cap companies are facing huge selling pressure. 

Tata Consultancy Services ltd (TCS), the IT giant after 2 year of consolidation started its new journey. TCS generated 61% return in past 12 month and added 2.87 lac cr in market cap. Also company entered in $100 Billion club of m-cap. TCS is now ranked 82th in term of M-cap in the World.  Management  is confident of future growth and approved buyback of 16000cr at price of 2100 INR which is still premium to current stock price.

Reliance Industry(RIL) also joined TCS in $100 Billion club after its stellar results. In last 12 month RIL generated 43.29% return and added 2.02 lac cr in m-cap . RIL is outperforming in all the sectors and Reliance Jio Infocomm Ltd is consider to be the next big thing for RIL growth in future.

FMCG is consider to be the most defensive sectors and  Hindustan Unilever ltd (HUL) proved it. Even after  stiff competition form Patanjali , company is able to delivered double digit volume growth due to strong demand coming from rural economy. In past 12 month , HUL stock also outperforming with 53.97% return. 

On banking side while most PSU banks are facing NPA issues. And private sectors banks like Axis, ICICI are under pressure due to management and compliance problems, there are two banks HDFC and Kotak which are wining the clients and investor's confidence with sustainable and quality growth. HDFC and Kotak bank generated 28.8% and 45.2% return on street respectively. On NBFC front  Bajaj Finance is the marathon runner for last 10 years. Stock is one of the few stocks which generated 100 times returns in 10 year time. In past 12 month Bajaj Finance generated 67.82% return and added 55thousand cr in its m-cap.

Street is currently favoring this this few giant of market. And like relay race, each day one other take charge to hold the indices at higher levels. Mid cap benchmark is 3000pt down from it high while, Nifty50 is just 100pt away to make new record. Recent Mutual Fund restructuring also one of the major reason of  this widen gap between madcap benchmark return and Nifty return. 

Lack of buying interest from FII side and also from Retail side is one more reason of mid-small cap under-performance . We believe that value investors should build strong long term portfolio by adding quality mid cap and large cap stocks. Mutual Fund is also one of the best route to invest in this market. Good Multi cap Fund  is best option to invest via SIP.

At the end just remember that Rome is not build in one day. Have patience and keep investing.

Be Smart. Invest Smartly.

Avoid this one mistake in Stock Market || Beginners Guide.

Most common mistake most investors do is that they buy price not business. If you ask some person that what stock you want to buy in 10000 INR, 1000 share at price of 10 or 10 share of Price 1000. Then most of the new investor prefer the first.Many still believe that 10 INR stock can go to 100 quickly and they can make huge but this is not the case.

Not all penny stocks become multibagger, 1 in 20 stock only sail through , rest all either depreciate or just remain at same level. Let’s have look at this with example.

Here Name of Stock A is Suzlon and Name of Stock B is Britannia.

In 2013 Suzlon and Britannia were same in size in term of m-cap only difference was the price of both.
After 5 years Suzlon is at same level while Britannia multiplied 7 times. Intelligent investor is one who pick a stock base on the Business model of company not the price of stock.

For any new investors , we highly recommend not to buy any penny stocks until they understand this market. Most of the new investors made mistakes initially and left the market with losses before they realize true potential of market. Comment your value destroyer stocks.

Be Smart. Invest Smartly.

Wealth Creation Idea : Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India. It has 8 Plants- in Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. It offers more than 2,600 options in ceramic wall & floor tiles, vitrified tiles, designer tiles. Kajaria Ceramics exports to more than 30 countries round the Globe.

Financial Performance :

• M-cap:  INR 11633 cr
• CMP:  732 INR (27th Nov 2017)
• EPS: 15.13 INR
• PE: 48.3
• Debt equity ratio :0.17
• Book Value: 82 INR
• Promoter Share holding is 47.39 %.
• DII/FII/FPI Share  holding 29.14%

Why Kajaria Ceramics?

• Company has consistent profit growth of 27.25% over 5 years.
• Distribution Network of strong and loyal 1200 dealers all over the country.
• Company is going to Expand the ‘Prima Plus’ channel network from the current 41 showrooms to 100 showrooms by March 2019.
• Good return on equity track record: 3 Years ROE 27.33%.
• According to CLSA, India expects to build 60 million new homes to be built between 2018 and 2024.
• Smart Cities Mission, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation, Urban Transformation (AMRUT) and Housing for all by 2022 is expected to provide significant impetus to the demand for tiles.
•  Biggest organized player in Ceramics business in India.
• 29 Year of Business Experience. 
• Due to GST implementation, Organize player like Kajaria get preference in consumers as Price difference between organize and unorganized player decrease.

For long term investment this stock best suited. Next 5-7 year Kajaria ceramics can deliver 3x-5x returns.

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.