Latest news with #FundNFO
Time of India
6 days ago
- Business
- Time of India
How to earn decent returns with lower risk: Multi-asset allocation funds deliver; outperform Sensex in 3 & 5 years
Multi asset allocation funds have outperformed the Sensex in the past five years. Want to earn decent returns at lower risk? Go for multi asset allocation funds that invest in a mix of equity, debt and commodities. These funds invest in at least three asset classes, with a minimum allocation of at least 10% to each. Indeed, a diversified portfolio is the best way to get past volatile asset prices. In the past three years when asset prices have been very volatile, the multi-asset allocation category has delivered nearly 17% compounded annual returns. Interestingly, much of these gains have come not from equities but the exposure to gold and silver. While the Sensex has delivered a CAGR of 15.05% in the past three years, gold and silver rallied more than 22%. In other words, multi asset allocation funds have delivered higher returns at lower risk. Diversification cuts risk Multi asset allocation funds have outperformed the Sensex in the past five years Investment 1-year returns (%) 3-year returns (%) 5-year returns (%) Sensex 3.81 15.05 17.79 Debt (dynamic bond) 8.29 7.5 5.71 Gold 30.98 22.4 13.33 Multi Asset Allocation funds 5.57 16.96 18.49 Data as on 10 July 2025, Source: Value Research Three and five-year returns are annualised The Franklin Templeton Multi-Asset Allocation Fund NFO that opens today is an investment worth considering for conservative investors who want to diversify across different asset classes. The Franklin fund will invest in a mix of equities, fixed income instruments, gold and silver. The fund will be benchmarked against Nifty 500 (65%), Nifty Short Duration Index (20%), domestic price of gold (5%) and silver (5%) and the iCOMDEX composite Index (5%). 'In the current volatile environment — where equity valuations are elevated and bond yields are stabilizing — a portfolio combining these asset classes with commodities like gold can deliver superior risk adjusted returns,' said Avinash Satwalekar, President, Franklin Templeton–India. Other experts agree with Satwalekar. 'This is not the time to be overly aggressive. The path lies in maintaining a diversified portfolio that can absorb shocks and still participate in potential upside,' said Viraj Gandhi, CEO of Samco Mutual Fund. Another big advantage that multi-asset allocation funds offer is the favourable tax treatment of the gains. Both long-term and short-term capital gains from gold and silver ETFs and debt funds are now taxed at the slab rate of the investor. But if these are bundled into a single fund that invests at least 65% in domestic stocks, the tax impact is much lower. 'If a fund invests 65% or more of its corpus in domestic equities, it will be treated as an equity scheme for tax purposes,' says Nishant Khemani, Managing Partner of the Saturn Consulting Group. Long-term capital gains of up to Rs 1.25 lakh a year will be tax free. Beyond Rs 1.25 lakh in a year, the gains will be taxed at 12.5%. Short term gains will be taxed at 20%. The holding period for long-term gains is also shorter at one year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Fashion Value Chain
6 days ago
- Business
- Fashion Value Chain
NFO ends today: Last chance to invest in Bajaj Finserv Small Cap Fund
The Bajaj Finserv Small Cap Fund NFO closes today. This is the final opportunity for investors to consider participating in a fund that aims to offer a chance to explore the small cap space. NFO Ends Today: Bajaj Finserv Small Cap Fund An open ended equity scheme predominantly investing in small cap stocks, this small cap fund invests in companies that rank 251st and beyond in terms of market capitalization on the share market as per SEBI guidelines. Small cap funds can be a potential opportunity for investors who have a higher risk appetite and a relatively longer investment horizon. The small cap sector includes several growing businesses that have the potential to transform into tomorrows market leaders. What is a small cap fund A small cap fund primarily invests in companies that often in their growth phase and may offer a higher upside potential over long term as compared to more established firms. However, they can also carry higher market risks and may be more sensitive to short-term market movements. The Bajaj Finserv Small Cap Fund aims to identify businesses that have strong fundamentals but are trading below their intrinsic value due to temporary market shifts. The fund is supported by Bajaj Finserv AMC's proprietary investment philosophy INQUBE that ensures bottom-up stock selection and focuses on companies that have sustainable business models, credible fundamentals, and the potential to scale over time. Why consider the Bajaj Finserv Small Cap Fund The Bajaj Finserv Small Cap Fund may be a suitable option for people with a long-term investment horizon through exposure to the small cap space. The fund's investment philosophy helps scout for undervalued opportunities, emerging category leaders in niche markets and companies with strong governance frameworks. Due to a portfolio that's spread across sectors, it helps mitigate concentrated risk. Additionally, the fund practises careful risk management and aims to potentially vet companies for speculative bets and focus on businesses with clear growth visibility instead. While the small cap segment can be volatile in the short term, it may help you generate potential wealth in the long term. As with any equity investment, it is important to assess whether this fund fits into your overall financial strategy and risk appetite. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. You can invest through direct or regular plans, depending on what suits your investment journey. To learn more about the process, visit Units will be offered at Rs. 10 per unit during the NFO period, which may be an entry point for investors looking to potentially build long-term wealth. Conclusion As today marks the closing of Bajaj Finserv Small Cap Fund NFO, use this window of opportunity to evaluate its suitability in your portfolio. With a focus on identifying scalability and sustainability, small cap funds can appeal to investors who are seeking long-term growth and have a higher risk appetite. Investors can consider starting an SIP in this scheme. To make an informed decision, they can also consider making use of an SIP calculator. They can also consult an investment advisor before making an investment decision. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
