Today, the Nifty 50 index is trading at price to earnings (P/E) multiple of 27 times. In such a situation, it is important to follow the tenet of value investing.
Focus on returns, cash flow pays off.
Among balanced schemes, SBI Equity Hybrid is one of the most stable performers in the long term.
In the past three months, gold prices have risen to close at Rs 38,775 for 10 grams.
Gilt mutual funds are considered ideal for long-term debt mutual fund investors with an aggressive risk profile
In almost all cycles the scheme has beaten its peers and the benchmark index by a reasonably good margin.
A large part of the portfolio is invested in financials which include private sector banks such as HDFC Bank, ICICI Bank and Kotak Mahindra Bank.
These funds tend to score well on risk-adjusted metrics and hold dependable stocks in their portfolios.
In the past six months, the scheme has invested in firms which have sound business model but are trading at cheap valuation.
The scheme has been ahead not only of its benchmark index but also its peers in terms of returns.
The time-tested adage says that long-term investors always gain when they buy into good stocks when markets are falling.
The very structure of a multi cap scheme which allows investments in companies of all sizes offering diversification is an attractive proposition in present market conditions.
One of the key features of the scheme is that it is well diversified in terms of market capitalisation.
In recent months, the inability of some corporates to repay their loan obligations has led to a natural aversion for debt schemes.
We have filtered out equity schemes which have consistently performed in five- as well as seven-year periods.
Historical data points out that when inflows in mutual funds rise after a period of stagnant inflows or outflows, a large part of the money finds its way in small cap funds.
In the past five-year and ten-year periods, the scheme has given 13 per cent and 12 per cent returns.
The scheme enjoys a much higher alpha than the average alpha of the category.
Inflows into mid-cap focused mutual funds are likely to revive in the coming months after the formation of a stable government at the centre.
The return of the BJP-led NDA government is expected to give an additional thrust to infrastructure development.
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