Time to Start a SIP in Reliance US Equity Opportunities Fund @ 9.90

Respected Readers,

Reliance US Equity Opportunities Fund NFO was come in 03 July 2015 to 17 July 2015 at NAV of 10 per unit 

 My Regular followers knew that I always avoid to invest in NFO because after a NFO in most of cases we see price of fund NAV fall below NFO price read some past example here:-
Best European Mutual Fund in India
or
Reliance Infrastructure Fund Review

So as our earlier experience now NAV of Reliance US Equity Opportunities Fund is fall below 10 and currant NAV of this fund is 9.90 only

So we now start a SIP of 1000/- per month in this fund

Which option we choose in growth and dividend fund:- If you are a new reader then you may confuse to see that 2 schemes is avalible in this fund 

Reliance US Equity Opportunities Fund (G) or growth plan

and

Reliance US Equity Opportunities Fund(D) or dividend plan

so which plan is best?

OK I have a separate detail article on this issue where I explain how dividend re-investment is 3 time better then growth plan, if you not read it yet then please read it here:-

Growth Plan vs Dividend Reinvestment in Mutual Funds 

So in light of above article I recommended to choose dividend re investment option but if you like to get regular monthly tax free income from this fund then choose growth plan and read this article to knew how to get regular monthly income from mutual fund growth plan:-

How to Get Regular Monthly Income from Mutual Fund

Now I tell you why I choose Reliance US Equity Opportunities Fund in all international fund which invest in US market.

Actually Most of international mutual funds are fund of fund ( fund of fund means a mutual fund which hold units of another funds),  but Reliance US Equity Opportunities Fund is directly invest in US stocks here is the situation of  Reliance US Equity Opportunities Fund portfolio as on 31 March 2016

Name	%
Mastercard	8.73
Express Scripts Holding Co	7.61
Baidu Sp ADR-A	7.56
The Priceline Group Inc	6.83
Alphabet Inc A	6.81
Blackrock Inc	6.76
Time Warner Inc.	6.68
VENTAS INC	5.95
WW Grainger Inc	5.21
PAYPAL HOLDINGS INC	4.13
Cooper Companies Inc	4.08
COMPASS MINERALS INTERNATIONAL INC	4
Cme Group Inc	3.79
ITC Holdings Corp	3.64
Discover Financial Services	3.38
Alphabet Inc	3.33
Carmax Inc	2.74
Ebay Inc	2.53
Potash Corp Of Saskatchewan Inc	1.46

So I think direct holding reduce fund management fees because if we buy a fund of fund then we pay fund management fees for both of funds.(one is original fund and  second is holding fund )
Recent Update:-
Buy MTNL @ 18.10

Equity Mutual Funds That Pay Monthly Dividends: How to Grow Your Money Tree.

From past many years I search a equity mutual fund that pay monthly dividends. 

Unfortunately I not find such type of Indian equity mutual fund that pay monthly dividends but I have an alternate that change your idea to locate equity mutual fund that pay monthly dividends.

Before we continue on this idea I want to clear some basic things.

Why I want equity mutual fund that pay monthly dividends?:- If any equity mutual fund pay me monthly dividends then I get regular dividend income which is income tax free in India so I utilize this tax free dividend income as my second income source or I make my own stock portfolio with help of this tax free monthly income.

and my original investment use for wealth creating through mutual funds. I think this is a great idea so I locate such type of funds but result is zero(nil).

Why not we choose MIP ( Monthly income plans):- Many of my readers think that today I put wrong information on my blog because many MIP-MF is available in India like SBI Magnum monthly income plan, Birla sun life MIP etc then why I say I not found any equity mutual fund that pay monthly dividends?

OK,  MIP is a debt mutual fund scheme which invests a small part of his funds (10-25 per cent) in equities and remaining (75-90 per cent) in debts. 

It offers regular income in the form of periodic (monthly, quarterly, half-yearly) dividend payouts.

So MIP is categorized under debt fund and MIP is not treated as equity fund so MIP dividends are debt funds dividends which are tax free but company liable to pay DDT ( Dividned Distribution Tax) in debt fund dividends so overall this DDT reduce my returns on MIP and MIP dividends returns are very poor like a saving account interest.

What Alternate we have to get regular monthly income from equity mutual fund:-Now I tell you my shocking research that how we get regular monthly income from equity mutual fund with mix combination of SIP&SWP. Become your own fund manager and every month sell your fund units to get 1% amount of your fund value as your monthly dividend income. 

Step by Step detail of this Idea:-

1.Make a lum-sum investment of minimum 1.00 lac in any good diversified equity growth fund with good track record of past 5 years. 

2.I advice to make a lum sum investment of minimum 1.00 lac because 1% of this 1.00 lac is 1000 and I want minimum 1000 per month income by selling of my units because selling of fund unit below value of 1000 is not allowed in most of mutual funds. 

3.Now start a 2000 per month SIP in this mutual fund for regular increment in your fund value and monthly tax free gain. 

4. Now wait minimum 1 year to grow your fund with market because selling of mutual fund unit below 1 year holding is taxable in income tax rules. 

5. After 1 year your tree of money is ready for fruits now sell your units every month to get 1% of your fund value for that month. 

I apply this example in HDFC top 200 G fund from 1 march 1999 to 1 march 2016, I provide my excel sheet to you where you see:-

Our total notional investment in last 17 year is 5,08,000 

We get total monthly dividend ( actually not dividend it is long term capital gain from systematic withdrawal) of 13,98,879 Our holding is still in profit of 4,13,527 

Amazing, 

Download this excel sheet here:- 

https://drive.google.com/file/d/0BwqVx444SxLaNVZPNC1tcTN0dWc/view?usp=sharing

Now it is your time to comment.

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Please remember mutual fund investment are subject to market risk and past performance is not a guarantee of future performance author of this blog is not a registered mutual fund adviser so please consult your mutual fund adviser before investing my full discloser is:-

10. Discloser:- Author is not a registered mutual fund adviser but 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 I am personally not hold units  of hdfc top 200 fund but my wife hold units of hdfc top 200 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 (  hdfc top 200 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 not received any type of compensation from the subject company(   hdfc top 200 fund ) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company( hdfc top 200 fund ). 6. I have been not engaged in market making activity for the subject company(  hdfc top 200 fund  )

Top 10 Mutual Funds for SIP to Invest in 2016

Respected Readers,

on 18 march 2015 I declare top 10 Indian mutual fund schemes of 2015 for SIP investment. here is the link of this earlier article:-

Top 10 Mutual Funds for SIP to Invest in 2015

Now it is the time to discuss top 10 mutual funds SIP to invest in 2016.

Last year I choose only Indian funds in this top 10 list but now I think any one can diversified his mutual fund holding globally.

So in my 2016 top mutual fund schemes list I include top 10 Indian mutual fund schemes which invest in India and abroad.

How I choose top mutual fund scheme?:- As you read in my book (The Winning Theory in Stock Market)that size of AUM is a best criteria to choose a mutual fund scheme.

What is AUM:- AUM means asset under management  I give you a example if fund X corpus is 100000 rupee and fund Y corpus is 500000 rupee then which fund have better chance to diversification I think it is fund Y have better chance of diversification due to It's large AUM size.

Generally I say

" It is difficult to earn 100 rupees from 100 rupee investment but it is easy to earn 1 Cr. from 1Cr. rupee investment.

Read this chandu story to see power of diversification:-

Chandu stock market journey.

So I give these top 10 scheme on basis of fund AUM and Diversification globally. ( as well as diversification among fund houses so I do not repeat any mutual fund company in this list).

How to invest:- If you easily save INR 10,000 in every month then Start a 1000 rupee SIP in each of scheme. 

but if you unable to save INR 10,000 in every month then here is the option:-

If you want to invest INR 1000 every month then start SIP only in scheme 1 .

If you want to invest INR 2000 every month then start  2 SIP (1000 each)  in scheme 1 and 2.

If you want to invest INR 3000 every month then start  3 SIP (1000 each)  in scheme 1,2 and 3.

If you want to invest INR 4000 every month then start  4 SIP (1000 each)  in scheme 1,2,3 and 4.....and so on.

Why I choose Dividend Schemes instead of growth schemes and in dividend option what to choose dividend payout or dividend re-investment?:-  I have a separate article on this issue so please visit this link to understand that why I recommended dividend schemes with dividend-reinvestment option:-

Dividend reinvestment Vs Growth option in mutual funds.

Top 10 mutual fund scheme (seniority wise ) for 2016:-

1.HDFC Equity Fund (D):- NAV 42.08 pay regular dividends since 1999 largest AUM diversified equity fund.

2.Reliance Japan Fund  (D):- See more details here:-

Reliance Japan fund review

3. ICICI Prudential Dynamic Plan (D) 

4.Religare Invesco Pan European Equity Fund (D):- Read more details here:-

Religare Invesco Pan European Equity Fund Review 

5.Franklin India Prima Plus Fund (D) 

6.SBI Contra Fund (D) 

7.Mirae Asset China Advantage Fund (D):- Read more details here:-

Mirae Asset China Advantage Fund Review

8.Birla Sun Life Equity Fund (D) 

9.Axis Equity Fund (D) 

10.DSP BlackRock US Flexible* Equity Fund (D)

 

Recommended reading:-

How to book profit in SIP

10. Discloser:- Author is not a registered mutual fund adviser but 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 I am personally hold units  of reliance japan fund and  Mirae Asset China Advantage Fund and continue  SIP in these funds so my personal interest is included in both of fund but not hold  Religare Invesco Pan European Equity Fund 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company (  Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage 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 not received any type of compensation from the subject company(  Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage Fund ) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company( Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage Fund ). 6. I have been not engaged in market making activity for the subject company( Religare Invesco Pan European Equity Fund, reliance japan fund and Mirae Asset China Advantage Fund  )

Time to Start SIP in Religare Invesco Pan European Equity Fund @ 8.96

Respected Readers,

Namaskar

I am happy to announce that market again prove my estimate about NFO.

This time NAV of Religare Invesco Pan European Equity Fund fall below 9 as I estimate earlier.  

When NFO of Religare Invesco Pan European Equity Fund come on January 2014 then I publish an article on this blog, where I told you that "I did not advice you to invest directly in NFO ( New fund offer) because as my past experience say mutual fund NAV down after new NFO in 90-98% NFO So we will start a SIP in this fund if fund NAV is down below 9 after his listing."

and after 2 year of this NFO my estimate is proved and now Religare Invesco Pan European Equity Fund NAV is down at 8.96.

Must read this earlier article here:-

How to Invest in European Markets with Indian Mutual Funds?

So now we start a INR 1000 per month SIP in this European mutual fund which will diversified our investment in European markets.

I think you already read my other diversified options here:-

Indian  mutual fund for invest in China

Indian mutual fund for invest in Japan

Enjoy your SIP at a lower price where NFO investors face  10%  fall on his investment we have a chance to enter in this fund at 10% discount.

But still I advice again that make only SIP instead of lumsum investment.

Regards

Mahesh Kaushik

10. Discloser:- Author is not a registered mutual fund adviser but 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 I am personally hold units  of reliance japan fund and  Mirae Asset China Advantage Fund and continue  SIP in these funds so my personal interest is included in both of fund but not hold  Religare Invesco Pan European Equity Fund 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company (  Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage 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 not received any type of compensation from the subject company(  Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage Fund ) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company( Religare Invesco Pan European Equity Fund ,reliance japan fund and Mirae Asset China Advantage Fund ). 6. I have been not engaged in market making activity for the subject company( Religare Invesco Pan European Equity Fund, reliance japan fund and Mirae Asset China Advantage Fund  )

Mutual Fund Returns are Annualized or Absolute?

1.Recently one of my freind Dr. Ramswarup Pareek invest in Axis Long Term Equity Fund (G) for tax saving purpose.

2.Axis Long Term Equity Fund (G) is an ELSS you can see top ELSS at this link:-

Top 3 ELSS in India

3.When Shri Pareek visit Icici direct website he found that Axis Long Term Equity Fund (G) give 26.8% returns in last 3 year.

4.Now Dr. RamswarupPareek  has a question "This 26.8% returns is annualized or absolute?

in details if he invest INR 100 in 2012 then in 2015 what he get?

First Option:- He get INR 126.80 if this 26.8% returns is absolute means only 26.8% returns in his 3  year holding period.

Second Option:- He get  INR 203.80 if this 26.8% returns is annualized means after one year his investment grow 26.8% and his portfolio value 126.80 then in second year it again grow 26.8% now his portfolio value is 160.78 and in third year his investment again grow 26.8% means at the end of third year his portfolio value is 203.80.

5.Now he call to Icicidirect and ask this question to there customer care representative .

The customer care officer of Icici Direct told that First option is right and you get only 26.80 rupees return on your investment of 100 rupee in last 3 year plus you get tax benefits on your investments.

6. Shri Ramswarup ji not satisfied from his answer and refer this question to me that I publish an article on this issue with solid proof.

Here is my answer:-

Dear Ramswarup ji,

Option Second is right.

You get total amount  INR 203.80 on your INR 100 investment means after one year this investment grow 26.8% and your portfolio value 126.80 then in second year it again grow 26.8% now your portfolio value is 160.78 and in third year your investment again grow 26.8% means at the end of third year his portfolio value is 203.80.

here are my solid proofs visit these links as my proofs:-

http://www.moneycontrol.com/mutual-funds/nav/axis-long-term-equity-fund/returns-calculator-MAA011.html

or see this fact sheet from axix mutual fund :-

https://www.axismf.com/axisdownload/fact/2015/Factsheet%20_%20with%20direct%20plan%20returns.pdf

Thank you for asking such a useful question.

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