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Vision Mutual Fund Consultancy

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Vision Mutual Fund Consultancy

Vision Mutual fund Consultancy have gained the specialization in the sphere of Mutual Funds. Mutual

12/09/2020

SEBI has changed the guidelines for Multicap funds. There must be 25% in midcap and 25% small cap. How it will an impact on markets and MultiCaps? See below the estimated impact.

16/08/2020

In 1980 the cost of: -

🔸1gm of Gold= ₹133
🔸100gm silver= ₹230
🔸Sensex was at 129 points

Today (AUG-2020): -

🔸1gm of Gold= ₹5480 (9.74%)
🔸100gm silver= ₹6801 (8.84%)
🔸Sensex is at 37877 points (15.26%)

>> Inflation data included for the same time.

10/06/2020

Are your funds performing well? Some best performing funds in Covid scenario.

10/04/2020

Are we going on 2008 scenario??? ... time will give an exact answer.🧐

09/04/2020

*Amazing positive thoughts about why India will survive and make it big —*

1 India’s rural economy is not affected by corona and going on strong

2 India being young people’s nation won’t have must health effect of corona compared to Europe

3 Merchants and small shops are not over leveraged (not too many loans ) so will emerge strong once shops reopen

4 fall in oil prices would lower the inflation and other costs

5 our country’s internal consumption is strong

6 even if we have to keep India locked down for 14 days or 28 days (two cycles) in larger scheme of things it won’t matter

7 even if stock market collapses and has to enforce few circuits closures its mainly because of automated algorithms which are forcing stock selling and nothing to worry

8 work from home is reducing costs for all companies and May the increase profits eventually

In short nothing to worry and time to think positively 😊

29/03/2020

Fund performance of Small cap & Multicap, Top to bottom !

Good news! Market to close 10 days during lockdown. See pic.

Feel free to share your feedback / comments.

16/03/2020

How did your MF fare in the market crash? Feb -March 2020.

29/02/2020

Is this the end of the world ?

HDFC Equity Fund started in 1994 has delivered close to 20% CAGR. Rs. 1 lac invested than is now Rs. 63 lacs. What is more interesting is the journey. The funds NAV has fallen

- 10% plus 55 times ( every 6 month)
- 15% plus 26 times ( every 1 year)
- 20% plus 14 times ( every 2 year)
- 30% plus 8 times (every 3 year)
- around 50% 3 times (every 8 year)

The worst this fund has delivered was 54% negative in one year and worst 5 years returns has been around 5% CAGR.

This fund has witnessed the followings:
- earthquakes/ floods/ riots/ droughts
- SARS/ Ebola/ Swine Flu etc.
- Majority/ minority / outside support / weak / strong government.
- assassination of ex- PM/ political leaders.

Rs. 1 lac has become Rs. 63 lacs through this journey only. In equity investments volatility is the only guiding principle. But when this principle reaches us to teach a lesson, we scamper for cover !!!😊

Disclaimer: Views expressed here in this article are for general information and reading purpose only. They do not constitute any guidelines or recommendations on any course of action to be followed by the reader. The views are not meant to serve as a professional guide/investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument.

13/02/2020

Will my losses actually turn into profit in long term?

Are your investments giving you negative returns?

We have been advising to invest for long term. There might be short term losses, but in long run you are likely to make very good returns.

Now, Some of you asked for a proof.

Well, we may have found an answer.😀

Year 2011 was also like this year. If you had started a SIP of Rs 1000 per month in Jan 2011, then by the end of 2011, you would have made losses. Did those losses continue forever? See the examples of three of the most popular funds.

Example 1: Nippon Small Cap Regular Growth
If you had started a SIP of Rs 1000 per month in Jan 2011, your annual return by Jan 2012 would have been -17.7%, giving you a loss of around 2,200 for an investment of 13,000. Suppose, you overcame the fear of loss and continued the SIP. By Jan 2014, annual return would have been 19.3%. You still continued. By Jan 2016 and Jan 2018, annual returns would have been whopping 35.2% and 33.7% respectively. By Jan 2018, an investment of Rs 85,000 would have become Rs 2.77 Lacs.
On 12 February 2020 Total investment would be Rs 1,10,000 & Market value be Rs 2,67,411 ... 18.8% return p.a.!!

Example 2: Kotak Standard Multi Cap Regular Growth.
Not convinced with just one example? Here’s another one.

A SIP of Rs 1000 per month, started in Jan 2011, would have given a loss of 1500 by Jan 2012. But then by Jan 2014, the annual returns became 13.3%. If you had still continued the SIP, the annual returns would have been 20.4% and 20.5% by Jan 2016 and Jan 2018 respectively.
Just imagine, if you had stopped the SIP by Jan 2012!
On 12 February 2020 Total investment would be Rs 1,10,000 & Market value be Rs 2,28,964 ... 15.6% return p.a.!!

Example 3: ICICI Prudential Bluechip Regular Growth.
Getting convinced? Still not? Well, here’s another example.

A SIP of Rs 1000 per month, started in Jan 2011, would have given annual returns of -3.3%, +13.9%, +15.5%, +17.2% by Jan 2012, Jan 2014, Jan 2016 and Jan 2018 respectively.
On 12 February 2020 Total investment would be Rs 1,10,000 & Market value be Rs 1,97,673 ... 12.5% return p.a.!!

Conclusion
Here, we have taken only three funds as examples. If we do a similar analysis on other funds as well, the story is similar.
And not just for 2011 as SIP start year. 2008 as SIP start year also depicts a similar story.

So, if your investments are negative, don’t worry. They are likely to turn positive in long run. Just make sure that your portfolio is well diversified and you have invested in RIGHT FUNDS. Schedule a portfolio review with our investment team to make sure that you are invested in right funds.😀

Thank you for reading. Please feel free to share your thoughts, comments and feedback.

12/02/2020

Will Rs 1 crore be enough to take care of all your needs after 15 years???

Typically, many investors want to create a corpus of Rs 1 crore after a decade or more. In some cases, the corpus is to take care of retired life, whereas in others, it is mean for children’s education or marriage. Some investors just like the idea to have a corpus of Rs. 1 crore after some years. This raises many questions in our heads: has the person just picked up a random number? Or has he/ she worked with real numbers? Has the person accounted for inflation?

Many investors have an affinity towards round figures and Rs 1 crore tops the list of such numbers.

Is a big, round number sufficient?
A figure that appears big today may not be sufficient to take care of all your future financial needs. This is important because the value of money does not stay same forever. For example, if the course fee Rs 20 lakh today. It would not remain the same after 15 years. Because of the impact of inflation, it would cost much more. First, you may find out how much your daughter’s education cost now. Then you can find out how much it would cost after 15 years. To understand the impact of inflation, ask yourself ‘How much I used to spend 10 or 15 years ago?’. Once you answer this question, you will realize that inflation erodes the real value of your money and a big figure will not be worth the same after a few years.

Let us see how much 1 crore is worth in 10, 15, 25 and 30 years’ time.

In 10 years

In 15 years

In 25 years

In 30 years

Worth

50 lakhs

36 lakhs

18 lakhs

13 lakhs respectively.

Division Factor

2

2.8

5.4

7.6

Impact of inflation on Rs. 1 crore. Inflation is assumed to be 7%.
For example, to find how much is Rs. 1 crore in 15 years use the division factor of 2.8. That means, Rs 1 crore today will be worth (1 crore/2.😎 approximately Rs. 36 lakhs after 15 years.

Assessing the Impact of Inflation
Let us see how much you would need in 10, 15, 25 and 30 years’ time to have an equivalent wealth worth Rs 1 crore today.

In 10 years

In 15 years

In 20 years

In 30 years

Equivalent Corpus in Multiplication Factor

2 2.8 5.4 7.6 respectively.

Equivalent of Rs. 1 crore today in future. Inflation is assumed to be 7%.
For example, take your child’s higher education. Let us assume that it costs Rs 20 lakh today. Let’s assume again that he would go to college in 15 years. Now you need to determine how much this education (which costs Rs. 20 lakhs today) is going to cost after 15 years. Use the multiplication factor of 2.8 from the above table. That means, after 15 years you will need a corpus of (Rs. 20 lakhs * 2.😎 = Rs. 56 lakhs to fund your child’s higher education.

Assuming education inflation is 7 per cent, the same education course will cost Rs. 56 lakhs after 15 years.

Conclusion
From the above discussion, we clearly understand that it is wise to add a realistic inflation figure to all your future financial requirements. If you are planning to create a sum for post-retirement life, you have to be more calculative and cautious. Apart for inflation, you must consider possibility of your outliving your expected age and change in interest rates post retirement.😀
Feel free to share your suggestions, comments & thoughts .Thank you.

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Tuesday	9am - 8pm
Wednesday	9am - 8pm
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Friday	9am - 8pm
Saturday	9am - 8pm

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