Swing Trading in Mutual Funds and Best Index Funds to Swing Trade : Mahesh Kaushik

My Followers often ask "Can I swing trade in mutual funds?" 

Today in this post I will show you how you swing trade in mutual funds. 

First of all, we need to choose some best mutual funds for swing trading. 

Mahesh Kaushik Mutual Fund 

Index Funds:- Index funds are low-cost mutual funds which constitutions are the same as underlaying index constitutions. 

For our swing trading, we choose Index funds direct plans with growth options. 

We need index funds with the 0% exit load.

Because of zero percent exit load when we book profit no exit load will be deducted.

This blog post will provide an Excel sheet with 21 various sectors index funds that charge 0% exit load. 

How to swing trade in mutual funds:- I categorized these 21 funds into 3 categories each category has 7-7 funds. 

We buy thrice in a month.

First, buy on the 6th day of every month, Second buy on the 16th, and third buy on the 26th day of the month.

So every buy has 10-10 days gap. 

Every month, buy 1-1-1 funds from each category on fixed dates of 6,16, and 26 ( if the market is closed on these dates, consider the next day for buying).

Every category has 7-7-7 funds so every month we choose new funds in each category. 

Target:- Simply wait for 5 percent + profit when your fund gives you 5%+ profit then sell it and book profit without exit load.

Average and Rebuy:- Every category has 7-7-7 funds so every fund's rotation comes after 7 months.

If in 7 months you not got 5% profit then it will be average out or if you already booked profit it will be repurchased. 

Kindly watch my YouTube video for full understanding and practical examples of this method:- 

https://youtu.be/L0_C5sLRx_c

Link of Download Excel Sheet:- 

https://docs.google.com/spreadsheets/d/1X00lrar5BUW5pK3oLd007OUbe6Zs4tno/edit?usp=sharing&ouid=111573829003502969131&rtpof=true&sd=true

Your views are invited in comments

Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report.” The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index, or any other financial instrument at any time. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read the full disclaimer at the bottom of my blog. 

SBI ETF Quality, Review Top ETF Based on NIFTY 200 Quality 30 Index, Best ETF for 2020

Respected Readers,

Due to bear phase in Indian stock market currently no any good stock traded over his 200 DMA so this time from 16 March 2020 to 31 March 2020, I recommended to buy a good SBI managed ETF. So instead of any regular stock we choose SBI ETF Quality for investment. 

1. SBI ETF Quality is a NIFTY 200 Quality 30 Index based ETF.

2. This ETF is managed by  SBI Funds Management Private Ltd.  

3. You can buy this ETF like a normal share NSE Code of SBI ETF Qualiry is SBIETFQLTY and ISIN is INF200KA1WX6. 

4. SBI ETF Quality aims to cover companies which have durable business model resulting in sustained growth. 

5.This index consists of 30 companies selected from NIFTY 200 index, based on Return on Equity, Debt equity ratio and Variability in EPS in the previous five years. 

6.The index series has a base date of April 01, 2005 and a base value of 1000.  Current Index Value is 8531.40 ( Do not worry 8531.40 is not a current price of ETF , It is index value, Currant price of ETF is 98.90 only)

7.Stocks from NIFTY 200 index at the time of review are eligible for inclusion in the index 30 companies with higher profitability, lower leverage and more stable earnings are selected to be part of the index The weight of each stock in the index is based on the combination of stock’s quality score and its free float market capitalization. 

8. This Index is re-balanced semi-annually. You Can see currant stocks of this index here:-

https://www.nseindia.com/market-data/live-equity-market?symbol=NIFTY%2050

9. Currant  price of SBI ETF Quality  is 98.90

10. For ETF investing we use Smart Averaging Method new followers watch this video to learn more about smart averaging method:-

Your views are invited in comments

Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report.” The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read the full disclaimer at the bottom of my blog. 

Discloser:- I Mahesh Chander Kaushik, author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1  Me and my associates or relatives have not held any share of SBI ETF Quality, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( SBI ETF Quality). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(SBI ETF Quality) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company (SBI ETF Quality). 6. I have been not engaged in market making activity for the subject company (SBI ETF Quality).

How to Select Best Indian Mutual Fund or Best Indian ELSS (Updated Method)

When you want to invest in a mutual fund or ELSS, you may be confused about which fund is best for investment?

Because there are too many fund houses and too many mutual fund and ELSS schemes, so a small investor easily confuses in fund selection.

What is the difference between the mutual fund and ELSS?:- Before we continue, first of all, I want to tell you the difference between mutual fund and ELSS. 

I think knowledge of this difference is necessary for new investors. When you invest in a mutual fund, you do not get any income tax benefits. ELSS is also a mutual fund, but investments in ELSS units are eligible for section 80 C income tax rebate.

So if you want to invest for section 80C rebate, then you need to select ELSS. Otherwise, an open-ended mutual fund is the right selection for you.

Best Criteria For Mutual Fund / ELSS Selection:- 

As I described earlier, AUM means Asset Under Management is the best criterion to choose a mutual fund, new readers, please visit this link to find out why I say " Size of AUM is best criteria to choose a mutual fund."

How to Choose Mutual Fund and ELSS

Because if you invest in the most significant AUM funds, then the fund manager has more flexibility, and your units participate in the most extensive sized portfolio.

Let,s start how we select best mutual fund using moneycontrol site

first of all open moneycontrol.com in your browser and go to == Mutual funds == Mutual fund screener as shown by red color in this picture:-

Now you see some filters like fund house, fund category, fund rank and ratios, fund parameters and investment parameters.

 First of all click on fund house and leave them at it is because if any fund house scheme passes our criteria's we choose that scheme for investment.

 This whole process is shown like this picture:-

Now click on the next filter "fund category" if you want to select a mutual fund scheme except ELSS, then remove the arrow from the ELSS box, and if you're going to choose ELSS, then remove the arrow from all boxes except ELSS. :-

In fund rank and ratioswe want to invest our hard-earned money only in five and four-star ranking funds. This ranking is given my Crisil. So it is wise to choose only 5 stars and 4-star funds as shown in this picture:-

Now as a final step click on Fund Parameters and choose " Show funds AUM higher than 10000 crore rupees:-

When you click on the apply filter you get your desired scheme name, watch this video where I run this process and got scheme names:-

You may also like one of my most popular mutual fund article "How to get monthly earning from mutual funds, Read this article from this link:-

How to Get Monthly Earning From Mutual Funds

I am awaiting your comments...Regards

Top 5 Mutual Funds and Top 5 ELSS to Invest in 2018-2019

Respected Readers,

Namaskar

Nifty is again in the downtrend.

Due to this lower valuation of the stock market, I got many queries from my followers that they want to start an investment in good mutual fund schemes.

Due to your demands now I publish my new list about best mutual funds and best ELSS to invest in 2018.

So in this article, I give you the list of top 5 diversified mutual funds and ELSS for 2018.

I already tell you my method about screening these mutual funds, If you are a new follower and not read my mutual fund screening method yet then please first read this article:-

How to select a best mutual fund scheme?

(Update:- Now Diversified equity fund known as multi-cap equity funds)

Here I give top 3 mutual funds and top 3 ELSS scheme name for 2018.

Top 5 Diversified or Multi-Cap Mutual Funds to Invest in 2018:-

1. ABSL Equity Fund-Direct Plan Growth:- ABSL means Aditya Birla Sun Life, These days investor mostly invest in the mutual fund's direct plans.

Because direct plans have no intermediatory expences so direct plans give more attractive returns in comparison to regular plans.

For example, In the last 5-years period, ABSL Equity fund direct plans give 178.2% absolute returns in comparison to 165% absolute returns of the regular plan.

Key features of ABSL Equity Fund-Direct Plan Growth:-

Launch Date:- 1 Feb 2013

So more than 5 years of track record.

Asset Size:- More than 10,000 crore.

It is nice because I like the largest Asset size funds.

Multi-Cap Fund:- It means fund invests in large-cap mid cap and small cap companies.

Return:-181.9% absolute

If on 1 Feb 2013 you start 1000 rupee per month SIP in this fund then the current value of your portfolio is 1,19,711.49 rupees, and your basic investment amount is 68000 rupees.

2. Kotak Standard Multi-Cap Fund-Direct Plan Growth:- This fund also launch on 1 Feb 2013, and in last 5 years, this fund gives 171.10% absolute returns. Asset Size more than 10,000 cr.

3. Franklin India Equity Fund-Direct Plan Growth:-This fund also launch on 1 Feb 2013, and in last 5 years, this fund gives 150.60% absolute returns. Asset Size more than 10,000 cr.

4. HDFC Equity Fund-Direct Plan Growth:-This fund launch on 1 Jan 2013 and in last 5 years, this fund gives 145.60% absolute returns. Asset Size more than 10,000 cr.

5. Reliance Multi-Cap  Fund-Direct Plan Growth:-This fund also launch on 1 Feb 2013, and in last 5 years, this fund gives 138.20% absolute returns. Asset Size more than 10,000 cr.

FAQ:- I knew after reading the above schemes name you may want to ask this question:-

Mr. Kaushik last year I read your article about top mutual funds and ELSS from this link:-top funds 2017 that time you recommended 3 mutual funds schemes:- 

HDFC Equity Fund (G)

ICICI Pru Value Discovery Fund (G)
Franklin India Prima Plus (G)

And I am making a SIP in all of them, now what to do? because in your new list I do not find ICICI Pru Value Discovery Fund (G) and Franklin India Prima Plus (G) so what can I do? Can I need to shift these funds with new schemes?

My Reply:-Franklin India Prima Plus change its name to Franklin India Equity Fund, so you do not need to shift this fund. ICICI Pru Value Discovery Fund (G) gives 178.40% absolute returns in the last 5 years but due mutual funds new classifications rules this fund going to value fund category. So you no need to shift any earlier fund to new fund simply start 3 new SIP's in above ABSL, Kotak, Reliance fund schemes to diversify your investments.

Here is the SEBI new re-categorization rules for mutual funds:-
SEBI new Catagories for mutual funds

Top 5  ELSS Funds to Invest in 2018:-

1. Axis Long Term Equity Fund-Direct Plan G:- Asset size more than 10,000 cr.

In the last 5 year absolute return:-198.90%, ELSS always give more return in comparison to other diversified open-ended multi-cap funds because ELSS have a lock-in period of 3 years and due to this 3 Years lock in fund manager not faced redemption pressure from fearful investors.

2. Reliance Tax Saver ELSS Fund-Direct Plan G:- Asset size more than 10,000 cr.

In the last 5 year absolute return:-169.60%.

3. HDFC Tax Saver Fund-Direct Plan G:- Asset size more than 7268 cr.

In the last 5 year absolute return:-136.10%. 

4. ABSL tax relief 96 Direct Plan G:- Asset size more than 7019 cr.

In the last 5 year absolute return:-187.20%. 

5. SBI Magnum Tax Saver-Direct Plan G:- Asset size more than 6753 cr.

In the last 5 year absolute return:-118.30%.

So in my verdict, if your total income is taxable and your total saving not crossed 80 C limit of 150000, then you may go with ELSS because initially you save your 5%, 20% 30% income tax in ELSS and in long-term you get more returns in comparison to regular multi-cap mutual funds.

Now your time share your view, questions and thoughts in comments I try my best to reply you.

Regards

Happy Investing

Suggested Reading: - Top Islamic Mutual Funds In India 
For Long-Term Stock Market Tips:- Multibagger Stocks
Discloser:- My wife hold units of Axis Long Term Equity Fund and I am holding units of HDFC equity fund, so my personal investment and personal interest are included in above 2 funds, author of this article is a  SEBI registered research analyst but not registered as a mutual fund advisor. So before investing please consult with a registered mutual fund advisor. Mutual funds investments are subject to market risk, please read offer documents carefully. 

Time To Start Long Term Investment In Bank Nifty ETF Or Reliance Banking Fund (G)

Respected Readers,

Namaskar,

Thank you for your continuous love and support to this blog. In my earlier article of 27 Aug 2017, I told that nifty is overvalued and I closed my SIP due to overvaluation of stocks.

If you do not read this earlier article then before continuing with this article, I advise reading the earlier article carefully, please read it here:- 

Use Sharegenius Ratio Of Nifty Technical Valuation To Buy Nifty Bees   

You find at the final conclusion in above article, I told 

"You no need to close your existing SIP, Simply run your SIP when market will down and SRNTV touch 0.94 I will inform you through this blog or through my app so that time simply add some more units in your portfolio and whenever SRNTV going above 1.12 then I again inform through this blog and my app so you can book partial profits in your units." 

Now I am happy to inform you that bank nifty SRNTV is touch to 0.94 So this is the time to start an SIP in bank nifty.

Here I share the Excel sheet of bank nifty historical data where you find how I calculate bank nifty SRNTV:-

Link to download bank nifty historical data Excel sheet.

Now I Chose "Reliance Banking Fund (G)" for our long-term investment because of this mutual fund based on Bank Nifty and launched on 21 May 2003.

As per my mutual fund selecting criteria's ( Read here:-How To Select Best Mutual Funds Or ELSS: Top Mutual Funds Schemes, ELSS )

Reliance Banking Fund (G) has largest fund size in banking and financial sector mutual funds.

So as per my rule of SRNTV, I invest 1/5 of my desired investment amount in this mutual fund.

Here I want to invest total 1,00,000 rupees in Indian banking sector because I think bank nifty corrected till my SRNTV level and now SRNTV of bank nifty is 0.94 then this is the best time to invest in the banking sector.

Now I further divide this money into 2 parts I want to invest my  INR 50000 in the banking sector mutual fund and want to invest 50,000 in banking sector ETF.

So I invest 1/5 of 50000=10000  lum sum in Reliance Banking Fund (G) plan.

Now as per rule given in SRNTV article I need to wait for more correction when this ratio down till 0.85, 0.76, 0.67,0.58 to invest my next 10-10-10-10 thousand parts.

But what happens if bank nifty recover from here?

I think you knew I am so clever to deal with market uncertainty, so I am also starting an INR 2000 per month SIP for next 10 months.

If bank nifty will recover from here and my next trigger levels of SRNTV will not come then due to this 2000 per month SIP (of 10 months) my 20000 also invested gradually in this banking mutual fund.

Now with remaining 20000, I wait for these levels of  0.85, 0.76, 0.67, 0.58 and invest 5000-5000-5000-5000 lump sum amount if these levels come.

Otherwise, I am happy with my SIP, and if 10 months complete and these levels do not come then, I increase the time period of this SIP  for further 10 months so as this is a total 20 months (near 2-year time frame investment plan) in bank nifty.

Now we choose one Bank Nifty ETF, ETF means the exchange-traded fund which holds bank nifty companies in same constituents of bank nifty.

We again use same rule " Select ETF with largest asset size."

And we find that Kotak Banking ETF has the largest asset size of  3676.59cr. So peoples who invest 3676.59 crores in banking ETF are not foolish.

I again follow the same processer means invest 10,000 lump sum in Kotak Banking ETF.

I start a 2000 per month SIP for 10 months and if SRNTV of bank nifty down at levels of 0.85, 0.76, 0.67, 0.58 then I again invest 5000-5000-5000-5000 lump sum amount in every point otherwise increase SIP period with the remaining amount.

Watch this Video (With English CC) for more details ( If you do not understand Hindi Please Enable English Subtitles):-

After 2 years in April 2020, I again update on this blog that what I earn or lost with this method.

Now It is your turn to share your views in comments.
Discloser:- Author of this article is not a registered mutual fund adviser but I Mahesh Chander Kaushik Author of this article is an existing research analyst and passed NISM certification for research analysts. I am also registered with SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 I am also investing in same ETF or mutual fund  so my personal interest is included in this fund 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Kotak Banking Fund or Reliance Banking Fund  ). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(  Kotak Banking Fund or Reliance Banking Fund  ) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company( Kotak Banking Fund or Reliance Banking Fund  ). 6. I have been not engaged in market making activity for the subject company( Kotak Banking Fund or Reliance Banking Fund)

Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.