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When it comes to planning and investing for all your goals, the saying “one plan fits all” doesn’t do. Just like one investment will not cater to all your goals and objectives. Every goal is different and has its own requirements. For example, based on the time horizon itself, short-term goals are those which have to be achieved immediately whereas long-term goals have a good time horizon to be planned and saved for.  Now, are you wondering how all the goals can be achieved by you? In this article, we will tell you how you can smartly plan for your short-term and long-term goals.  Types of Goals  Short-term goals: These are the goals that you want to achieve in the near future. The near future can be today, this week, this month, this year, or within 2 years. These are goals that need you to plan and be prepared immediately to ensure you achieve them on time.   Some examples of short-term goals are: Paying for your child’s school fees every year.  Purchasing a smartphone.  Purchasing a laptop.  Purchasing jewelry for an occasion, etc.  Planning for an international trip with your family?  Long-term goals: These are the goals that provide you with good bandwidth to plan and be prepared to achieve them. There is no specific definition of what long-term really means. It has a timeline of anywhere more than 5 years.   Some examples of long-term goals are:  Saving for your child’s higher education when your kid is young.  Saving for your child’s wedding.  Planning to purchase a car  Planning to buy a house.  Saving up for your retirement corpus.  Investment for short-term goals  There are multiple ways to save for short-term goals which will suit your risk appetite, the tenure of your investment, and your needs.  Savings Accounts: You can always maintain a cash balance to fulfill your immediate goals and objectives. But usually, it is not ideal to maintain your savings only in your savings accounts as it does not even generate inflation-beating returns. In long run, you may end up losing money. It is advised to only maintain an emergency corpus in your savings accounts to have some liquid cash.  Fixed deposits: Fixed deposits are where you invest in an FD with a bank and there is an interest on the investment received by the investor. FDs have a lock-in ranging between 7 days to 10 years. But even after the interest rate revision by the Central Bank, the FD rates are still not generating inflation-beating returns, which causes a loss to the customer.  Debt mutual funds: This is the best option to save for your short-term goals. There are multiple options for an investor to choose from. For example, if an investor has a very short tenure for a goal, one can choose from an ultra-short duration fund, a money market fund, or a liquid fund. Likewise, with a little longer horizon, an investor can choose from a corporate bond, medium-term bond, etc. Debt funds generate returns that are at par with the inflation rate.  Investment for long-term goals  One has multiple instruments to invest to achieve their long-term goals as well, based on the risk appetite, tenure, and requirements.  Direct Equity: An investor can directly invest in the stocks of a company as an investment option. One thing to note here is that direct equity investing is time-consuming. One cannot just randomly choose a stock. Detailed research and analysis have to be done to select a stock. Also, while having direct equity exposure, one has to be prepared for either major profits or major losses due to the high market volatility.  Mutual funds: While investing for long-term goals, an investor has options of both equity mutual funds and hybrid mutual funds. One does not have to do such detailed analysis while doing stock picking for a mutual fund. The fund managers actively manage and rebalance the portfolio as per the market conditions. So, there is always an added advantage of an expert management team in mutual funds.   Real estate: In India, real estate is the most sought for long-term investments. Yes, having a property in one’s name is good and sounds powerful. But it does not provide liquidity to an investor. It may so happen that at the time of achieving a goal, one may not be able to sell the property. The smart way of investing for short-term and long-term goals  An individual will never have just one goal. There will be multiple goals. As discussed above, just like “one size does not fit all”, one investment does not cater to all goals and objectives.   The best solution for this is following a goal-based planning approach. In this approach, all goals are properly planned for.  First, the goals and objectives are clearly mentioned along with a monetary value attached to them. For example, if one of the goals is to pay for the child’s school fees the amount needed is also mentioned along with the goal.  Then, the time horizon is specified. After setting the goals, the investor has to set how much time the investor has to save up and achieve the goal.  After specifying the time horizons, investors’ investment characteristics are specified. What does this mean? These characteristics include the risk appetite of the investor and what amount the investor is able to invest to achieve all his goals.  Sounds scary and lengthy right? Not to worry. You can always approach a Registered Investment Advisor to help you with a detailed investment plan to make your investment journey smoother. Conclusion  Goal-based planning is the smartest way for you to make one detailed investment plan to help you achieve all your goals so that you do not miss out on your dreams! A Registered investment advisor also ensures that your portfolio is well diversified and periodically rebalanced to optimize the portfolio’s risk and volatility.  Consult an expert advisor to get the right plan TALK TO AN EXPERT

“Mutual Funds Sahi hai” is something we hear every now and then. Yes! mutual funds are good investment options for certain reasons. However, as an investor, one may think to mimic the mutual fund portfolio to avoid the expense ratio or exit fees.   Do you think copying a mutual fund’s portfolio is the right thing to do? Continue reading to know if you should copy a mutual fund’s portfolio or not! Mutual funds are the most popular mode of investment for a large number of investors. They are basically investment vehicles that pool money from investors and then use this money to invest in company stocks (equity), bonds (debt), or other instruments (like other mutual funds).   What are the benefits of mutual funds?  Experienced and expert fund management: Mutual funds have the best fund managers who manage the Scheme’s funds and an excellent research team that perform detailed research and analysis on company stocks or debt to select the investment that is best suitable to the fund’s investment objective.  Reinvestment of Dividend: When the stocks in a portfolio earn dividends, mutual funds provide a reinvestment option wherein the investor gets allotted additional units of the mutual fund scheme.  Optimized risk: In mutual fund schemes there is no concentration in any particular stock. With proper diversification and periodical rebalancing, mutual funds help reduce or optimize the overall portfolio risk and volatility.  Should you copy a mutual fund’s portfolio?  All mutual fund schemes provide a complete monthly disclosure that gives details on the fund’s portfolio holdings and their proportion of holding.   Yes, by looking at the holdings and their ratios it is easy for an investor to copy the same, however, it is not ideal. Let’s see why: -  Choice of strategy: After thinking of copying a mutual fund’s portfolio, the question that now arises is which style to copy. Every Fund Manager and Fund management team is different even within the same category. Moreover, different funds have different investment objectives and different investment strategies and styles. So, whose strategy will you follow?  The fund manager’s thought process: An investor can always copy a fund’s portfolio but not the thought process of the fund manager that goes behind it. It's easy to find out the stocks that are bought or sold by the fund manager in the monthly disclosures. However, there is an entirely different thought process that goes behind the decision-making. The scheme mandates and risk management policy of the fund house influence the stock selection and their weightage decisions.  Periodical rebalancing: While choosing a stock for the mutual fund scheme’s portfolio, the market situation is kept in mind. The markets are well analyzed to find out the opportunities to invest.  Also, the market never stays the same. So, based on market conditions, the fund managers periodically rebalance the portfolio and alter the stock and sector weights to ensure the scheme’s portfolio is in line with the investment objective.  Log in scheme’s disclosure: Mutual funds disclosure comes every month. However, the fund manager may buy or sell some security in the middle of the month. When you get to know of the transaction, it would have been around 5-10 days and the market price of the share will not be the same.  Cost of investment: Some stocks like blue-chip stocks are very expensive and not all investors may be able to invest in them. Mutual funds provide the investor exposure to such stocks at a much lower price. Mutual funds when pooled in money, invest it in such stocks and offer a fractional exposure to the mutual fund exposures. Moreover, what stocks will you buy? There may be over 20 stocks in a mutual fund’s portfolio. Can you purchase all of them? Mutual funds help you not burn your pockets to get such stocks in your portfolio.  Conclusion  Fund Managers exist for a reason they make your investment journey easier and smoother. These fund managers have good experience and expertise in handling such large volumes of funds. They have specialized in this field and have a well-experienced research team to support them as well.  You always have a number of funds to choose from based on your goal, risk appetite, and investment horizon. You can also evaluate a fund manager’s performance by their fund’s up-side and down-side captures.  Remember to always make your investments easier and not more complicated. Why worry when you have a good management team that is actively managing your invested money?  Consult an expert advisor to get the right plan TALK TO AN EXPERT

One of the largest AMCs in India, DSP has been helping investors make sound investment decisions responsibly and unemotionally for over 25 years. DSP is backed by the DSP Group, an almost 160-year-old Indian financial giant. The family behind DSP has been very influential in the growth and professionalization of capital markets and the money management business in India over the last one-and-a-half centuries  Let us talk about the flagship product of the DSP Equity & Bond Fund About DSP Equity and Bond Fund  Investment objective The primary investment objective of the Scheme is to seek to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity-related securities as well as fixed-income securities (debt and money market securities).  Investment process    The scheme invests in equity (for capital appreciation) and debt (for income generation). It has an auto-balancing element wherein the portfolio is rebalanced to maintain the 65:35 equity-to-debt allocation. The investment framework is such that equity investments seek long-term growth opportunities across market caps and debt investments are only in highly rated instruments with short-term maturity profiles.  Portfolio composition  The portfolio's major exposure of more than 60% in large-cap followed by 28% in mid-cap. The top 5 sectors hold nearly 41% of the portfolio, with major exposure to Banks and Finance. Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: dspim.com  Top 5 holdings in DSP Equity & Bond Fund Name Sector Weightage % HDFC Bank Ltd. Bank 7.20 ICICI Bank Ltd. Bank 5.73 Bajaj Finance Ltd. Financial Services 4.24 Infosys Ltd. Information Technology 2.99 Axis Bank Ltd. Bank 2.85 Note: Data as of 30th Nov 2022. Source: dspim.com Performance over 23 years  If you would have invested 10,000 at the inception of the DSP Equity & Bond Fund, it would be now valued at Rs. 2.21 lakhs. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch. Inception date – May 27th, 1999. Source: Moneycontrol  The DSP Equity & Bond Fund. has given consistent returns and has outperformed the benchmark over the period of more than 23 years by generating a CAGR (Compounded Annual Growth Rate) of 14.23%. Fund Managers  Atul Bhole - Total work experience of 10 years. He joined DSP Investment Managers in May 2016 as Vice President-Investments.  Dhaval Gada – Total work experience of 13 years. He joined DSP investment managers in Sept-2018 as Associate Vice President and was promoted to Vice President in Feb-2022.  Vikram Chopra - Total work experience of 14 years. He comes from L&T Investment Management. He has also previously worked with Fidelity, IDBI Bank, and Axis Bank Ltd.  Who should invest in DSP Equity and Bond Fund?  Investors  Want to invest in the equity markets but don't know how to begin?  Accept that equity investing means exposure to risk and recognize market falls as good opportunities to invest even more.  Why invest in DSP Equity & Bond Fund?  The simplest way to get the benefit of asset allocation is with a balance of growth & stability orientation.  Offers potential capital preservation during falling markets due to debt allocation.  Horizon  One should look at investing and holding the investment for more than 10 years.  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  This scheme offers a diversified portfolio to investors who do not have much experience in the equity markets. Diversification is such that equity investments offer capital appreciation and debt investments offer wealth preservation. The scheme has a slightly lower impact on market fluctuations compared to pure equity funds 

Surprisingly, due to inflation, INR 30 lakh in 2001 is only worth roughly INR 8.1 lakhs now. This indicates that because inflation occurs on top of inflation from the previous year, the result is exactly like compound interest. In this article, we'll look at the causes of this as well as what $30 lakh will be worth in 20 years. What is the value of 30 lakhs after 20 years? Simply put, 20 years ago, you could have purchased a lot more with 30 lakh rupees than you can now. As a result, even if you were to save for 15, 20, or 30 years and eventually be able to buy 30 lakh rupees or more, its actual worth would be far smaller. With today's inflation rate of 6%, it would be equivalent to Rs 9.35 lakh. As a result, at 6% inflation, if you wanted Rs. 30 lakhs in 20 years, you might get Rs. 9.35 lakh now. If nominal inflation were assumed to be 6%, this amount would increase to Rs 96.21 lakh. Therefore, in 20 years, the demand of 30 lakhs will be Rs 96.21 lakh. The solution is to save money that is inflation-adjusted. To establish the requirements for it, you must first inflate the cost of the aim. Start a SIP after that to begin saving for the inflated goal cost. Additional read: Value of 1 lakh after 20 years How can SIP make you rich? Long-term equity investments may be made via SIP. You may use it to consistently invest a small amount in mutual funds without trying to time the market. To build wealth, it would be good if you continued to make SIPs during both bull and down market times. Let's look at an illustration of how SIP might result in financial success. Consider making a monthly investment of INR 10,000 in an equities fund. If you invest just INR 10,000 per month through a SIP in an equities fund for 30 years, you might amass a corpus of INR 3.53 crore. Compounding power makes money grow and makes you richer. You must start saving early so that you may continue to do so throughout your working life if you want to build up a sizeable corpus for retirement. Please be advised that we expect the equities fund to yield an average of 12%. Actual outcomes might be impacted by the markets and the fund. What is inflation? Sometimes the amount of inflation is expressed in general terms, such as the overall rise in prices or the rise in the cost of living across the board. For some goods, like food, or services, like haircuts or travel costs, it may be calculated more accurately. Inflation is a measurement of how much a certain set of goods and services have increased in price over time, independent of the context. You should anticipate paying more for the same goods and services this year than you did last year due to inflationary pressure. If you owned the stocks or homes before the price increase, you may have benefited. But if your salary does not increase at the same rate as inflation, your purchasing power will decline. Your cost of living rises over time due to inflation, which can also have a negative impact on the economy if it is severe enough. High inflation has far-reaching repercussions on a country's economy. How to overcome inflation? The government attempts to control inflation via monetary and fiscal policies. You should, however, have a plan of your own to guard against it. The main reason people invest is so they can continue to live well in the future despite an increase in the cost of living. You must thus make investment decisions that will allow you to generate returns that outpace inflation. These investments do, however, involve a greater level of risk than traditional savings accounts. High-growth potential investments like stocks and mutual funds stand a good opportunity to generate better returns. These investments have frequently produced returns that have outpaced inflation.  You could also take into account other investment options to diversify your wealth. Money should also be invested rather than kept in savings accounts. Investors may consider buying stocks depending on how much risk they can tolerate. Investing in mutual funds has the potential to yield significant rewards in the long run. How to secure yourself and your family's future If you want to save money for your post-retirement lifestyle, you need to be more strategic and careful. You must consider the possibility of living past your anticipated retirement age as well as fluctuations in interest rates in addition to inflation. Your objectives should be reviewed and reevaluated. Working with real numbers is required. If you have questions regarding where to invest or how to do so, you may consult with financial specialists at EduFund. You may help your children achieve their goals by utilizing EduFund to invest your money. To schedule a free consultation call with the experts, download the EduFund app to your mobile. Parents may begin saving for their child's college education early on to avoid having their child's promising future wrecked by education inflation. TALK TO AN EXPERT

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential Large & Mid Cap Fund. About ICICI Prudential Large & Mid Cap Fund Investment objective To generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity-related securities of large-cap and mid-cap companies. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.  Investment process   The Scheme follows a blend of top-down and bottom-up approaches to in-stock selection. The focus of the top-down approach is alpha generation through active sectoral rotation. While a bottom-up seeks to identify companies with reasonable profitability and scalability supported by sustainable competitive advantages.  Portfolio composition  The equity exposure is majorly in large-cap stocks at 78% and major sectoral exposure is to Banks and IT-Software. The top 5 sectors hold nearly 54% of the portfolio.  Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: ICICI Pru  Top 5 holdings Name Sector Weightage % HDFC Bank Ltd. Bank 7.84 Bharti Airtel Ltd. Telecom Services 6.05 ICICI Bank Ltd. Bank 5.41 Infosys Ltd. Information Technology 3.44 State Bank of India Ltd. Bank 3.32 Note: Data as of 30th Nov 2022. Source: ICICI Pru Performance over 24 years  If you would have invested 10,000 at the inception of the fund, it would be now valued at Rs 5.93 lakhs. This fund has outperformed the benchmark in all time horizons. Note Performance of the fund since launch; Inception Date – July 09, 1998. Source: icicipruamc.com  The fund has given consistent returns and has outperformed the benchmark over the period of 24 years by generating a CAGR (Compounded Annual Growth Rate) of 18.17%  Fund Manager  Mr. Ihab Dalwai is the fund manager of the Scheme. He has been managing this scheme for 8 years. He is is a Chartered Accountant as well as a CFA. He is associated with ICICI Prudential AMC since April 2011. He has over 11 years of industry experience.  Who should invest?  Investors looking for  Long-term wealth creation solution.  Looking to invest in both large-cap and mid-cap stocks.  Why invest?  This scheme provides an opportunity for higher capital appreciation over the long term.  The major portfolio composition of large-cap stocks helps in reducing the overall portfolio volatility and provides less volatile and reasonable returns.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The fund is good for investors who want exposure to equity and equity-related instruments but with optimized risk. It helps an investor with long-term wealth creation in a much more stable way as compared to instruments with a higher risk appetite. 

A long-term investment strategy is very important for your portfolio and for long-term wealth generation. Long-term mutual fund schemes can assist in achieving all of your higher life goals, such as retirement, marriage, children's education, house buying, globe travel, etc.  Let's learn more about long-term investing, who and how one should plan to accomplish long-term goals, and the best mutual funds to invest in for a long-term plan.  What is a long-term investment?   Long-term plans typically include an investment time span of more than five years. There are several goals behind an investment when someone wishes to make long-term investments. The goal can be to build long-term wealth so that the individual can feel safe in the future. Achieving important life goals is possible, as is just doubling your money through profitable investments. The equity mutual fund is the long-term strategy that is most recommended.  Why Equity funds are best for the long term?   Equity funds primarily invest in company stocks and shares. It is also one of the best methods to have a piece of a business without really launching one. These funds are, nevertheless, very dangerous in the near term. The sensitivity of equity markets to macroeconomic indicators and other variables includes, but is not limited to, inflation, interest rates, currency exchange rates, tax rates, and bank policies. The performance of the companies and, consequently, the stock prices are impacted by any change or imbalance in these. For this reason, it is always advised to maintain an equity fund investment for a minimum of five years and a maximum of ten years. Additionally, only individuals who are prepared to assume a high amount of risk in their investment should use these funds.  Equity funds have a history of providing solid returns over time. Most blue chip firms offer dividends to stockholders, which are a reliable source of income. These businesses typically distribute dividends on a regular basis despite the fluctuating market. Usually, they are paid every three months. A diverse portfolio can offer investors a year-round stream of dividend income.  Investors who intend to make long-term investments might do so in the equities of several economic sectors. Therefore, even if the value of one stock declines, the others may enable investors to recover their losses. Low cost, flexibility, diversification, convenience, liquidity, and expert money management are some other advantages of investing in stocks. Best mutual funds for long-term investment Following are the Best equity funds for long-term investment plans  Large-cap funds   These funds invest money in the stocks of large-sized companies. Large-cap stocks are commonly referred to as blue-chip stocks. These funds invest in those firms that have the potential to show year-on-year steady growth and high profits, which in turn also offers stability over time.   Large-cap stocks give steady returns over a long period of time. As these funds invest in well-established companies they are usually considered to be the safest investments compared to mid & small-cap funds. Investors with a moderate to high-risk appetite can prefer investing in large-cap funds.  Mid & Small Cap Funds   Money Market Funds These funds make investments in the equity of big businesses. Blue chip stocks are a typical term for large-cap stocks. These funds make investments in businesses that have the potential to produce large earnings and consistent growth year after year, which provides stability over time. Long-term, consistent gains are provided by large-cap equities. In comparison to mid- and small-cap funds, these funds are typically thought to be the safest investments because they invest in well-established companies. Those who are comfortable taking on moderate to high levels of risk may enjoy investing in large-cap funds.  Diversified funds or Multi-cap cunds   These funds invest across all the market cap large, mid & small cap funds. They typically invest anywhere between 40-60% in large-cap stocks, 10-40% in mid-cap stocks, and about 10% in small-cap stocks. Since these funds are a combination of all the caps, they master balancing the portfolio. Historically, Diversified Funds have come as a winner in most market conditions. Due to their diversified nature, these funds have the potential to survive the tough market phase. Investors with a moderate to high level of risk appetite can ideally invest in these funds  Sector Funds   Of all the equities funds, these are the riskiest. Therefore, a potential investor should only choose sector funds if they have the capacity to take a high level of risk. Sector-specific funds are offered here. They invest in certain industries like banking, finance, pharmaceuticals, and infrastructure. An investor may choose to invest in these funds if they believe a specific industry can experience rapid growth or has the potential to produce positive returns in the near future.  Conclusion  For the long-term, the equity class is the most preferred to save and invest in as the equity mutual funds have delivered consistent and the highest returns compared to other asset classes. Consult an expert advisor to get the right plan TALK TO AN EXPERT Abhilash Anand - Equity Research Analyst Provides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. Gradually they entered the mutual fund industry. DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds.   DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & Integrity. About DSP Natural Resources and New Energy Fund  DSP Natural Resources and New Energy FundInvestment objective The primary investment objective of the Scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in equity and equity-related securities of companies domiciled in India whose predominant economic activity is in the: (a) discovery, development, production, or distribution of natural resources, viz., energy, mining, etc (b) alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage, and enabling energy technologies.  The Scheme will also invest a certain portion of its corpus in the equity and equity-related securities of companies domiciled overseas, which are principally engaged in the discovery, development, production, or distribution of natural resources and alternative energy and/or the units/shares of:  BlackRock Global Funds - Sustainable Energy Fund  BlackRock Global Funds - World Energy Fund and similar other overseas mutual fund schemes.  The secondary objective is to generate consistent returns by investing in debt and money market securities. Investment process   The DSP Natural Resources and New Energy Fund follows a value style of investing which consists of value stocks of majorly large-cap companies. The investment philosophy of the fund is to buy value stocks of companies involved in the commodity business and energy-based business.  Portfolio construction involves investing majorly in large-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 73% and the fund is a sectorial fund that focused on the materials and energy sector. Both sectors together consist of more than 72% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  Top 5 holdings Name Sector Weightage % Black Rock Global Funds – New Energy Fund Financial (Foreign Fund) 14.71 Jindal Steel & Power Metals & Mining 9.88 Hindalco Metals & Mining 8.71 Tata Steel Metals & Mining 8.25 Reliance Energy 7.47 Note: Data as of 30th Nov 2022. Source: Value Research  Performance over 22 years  If you would have invested 10 lakhs at the inception of DSP Natural Resources and New Energy Fund, it would be now valued at Rs 56.95 lakhs. Note: Performance of the fund since launch; Inception Date – Apr 25, 2008, till Dec 16, 2022. Source: Money Control  The DSP Natural Resources and New Energy Fund has given consistent returns and has outperformed the benchmark over the period of 14 years by generating a CAGR (Compounded Annual Growth Rate) of 12.61%.  Fund Manager  Rohit Singhania: Prior to joining DSP Mutual Fund, he worked with HDFC Securities Ltd. and IL&FS Investment Limited.  Who should invest?  Investors looking to  Hold a focused portfolio of companies involved in the metals, mining & energy sector  Tactically allocate 10-15% of your overall portfolio to very high-risk opportunities.  Why invest?  Aim to grow your money by investing in companies from the commodities, energy and renewable energy sectors.  Favorable sector dynamics- As the world develops, the focus on energy companies to become more efficient to grow & an increase in the adoption of renewable energy means companies in this space could do well.  Horizon  One should look at investing for a minimum of 5-7 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The DSP Natural Resources and New Energy Fund has delivered good returns over the period with a CAGR of more than 12.61%. One should have a longer horizon before investing in the DSP Natural Resources and New Energy Fund as it is a sectoral fund. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more Abhilash Anand - Equity Research AnalystProvides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.

Tax forms an important component to factor in when you are screening mutual funds to invest. These financial vehicles are considered to be more tax-friendly compared to fixed deposits with banks. Mutual funds also provide investors with higher returns than bank deposits and hence have become the go-to investment product for a large number of investors globally. To understand the taxation in mutual funds, we first need to understand the income streams in this vehicle. Sources of inflow to investors in mutual funds are capital gains and dividends. Dividends: The tax on the dividend is paid by the Asset management company or the fund house in the form of Dividend Distribution Tax (DDT) before it reaches the hands of the investor. Capital Gains: The difference in the value of the units of the mutual fund at purchase and at sale/redemption. This is taxable based on the type of mutual fund and the duration or holding period. Holding period: The classification of the holding period is defined as follows based on the type of the mutual fund. Fund TypeShort-term Capital GainsLong-term Capital GainsEquity Up to 12 months>12 monthsDebt FundsUp to 36 months>36 monthsBalanced fundsUp to 12 months>12 months Equity funds The taxation in taxable Equity funds and balanced funds(with equity exposure of >65%) could be explained using the following examples: Consider that you had purchased units of ABC Equity fund for Rs 1 lakh in the year 2020-21 (post-April 2020). If the NAV of the fund had increased over the period of time, the value of your investments would also increase.  Invested amount100000Final Value of the amount150000Capital Gains50000Tax Rate15%Tax Payable7500 Equity STCG: If the investor claims redemption in less than 1 year of investment, it would fall under the Short-term Capital Gains (STCG) category. The tax rate would be 15% on the gains earned by the investor. Invested amount100000200000Final Value of the amount150000400000Capital Gains50000200000Tax Rate10%Tax Payable010000 Equity LTCG: If the investor holds the investment for more than a year, (say April 2020 – May 2021), the gains would be taxed at long-term capital gains (LTCG) tax of 10%. There is however an additional clause in LTCG, which states that gains less than Rs 1 lakh are exempted from tax. As shown in the table, an investor whose capital gains were Rs 50,000 need not pay any tax. Similarly, an investor who has earned 2 lakhs for his investment would pay tax on the additional 1 lakh only = 10%* 1,00,000 = Rs 10,000. Tax-saving equity funds Equity Linked Saving Scheme (ELSS) investments are deductible under Section 80C of the Income Tax Act 1961. Here, the investor can claim a tax deduction for an amount <Rs 1.5 lakhs. If the investor has no other deduction such as PF, Insurance, etc, and if the investor’s tax bracket is 20%, he would be eligible for Rs 30,000 as tax savings. However, ELSS comes in with a lock-in period of 3 years, where the investor cannot withdraw or claim for redemption. After 3 years, on redemption, the capital gains are taxed at 10% (exempted for Rs 1 lakh), similar to the above example of Equity LTCG. Debt Funds: The taxation of Debt funds and hybrid or balanced funds (with an equity exposure of <65%) can be explained with the examples as follows:  STCG for Debt FundLTCG for Debt FundDebt FundsUp to 36 months>36 monthsTax RateIncome Tax slab rate20% with Indexation STCG: If the investor holds the investment for less than 3 years (say April 2020 – Feb 2023), and considers the Income-tax slab of the investor to be 20%. For the above example of capital gains of Rs 50,000, the investor would be paying 20 %*50,000 = Rs 10,000 as tax. LTCG: This comes with the benefit of Indexation, where the price of the purchase or initial investment is adjusted for inflation using the Cost Inflation Index (CII). For example, an investment of Rs 100 was made in the year 2016-17, and wants to sell the investments or redeem them in the year 2019-2020. Consider that the value of the investment has increased to Rs 170, hence providing a capital gain of Rs 70 to the investor. CII 2016-17264CII 2019-20289Cost of Purchase or Investment Amount100New Cost is Adjusted for inflation                           109.47  However, this price is adjusted for inflation as follows - New Cost of Purchase = CII of Year of Investment (here, 2016-17) CII of the year of redemption (here, 2019-20) X Amount invested. Hence, as the cost increases, the Capital gains reduce, tax payable also reduces. In the above example, Capital Gains = 170 -109.46 = 60.53. Tax payable = 20%*60.53 = Rs 12.11 (instead of 20%*70 = 14). NOTE: The indexation is applicable only for Non-equity-oriented schemes with a long-term holding period. Taxation SIP vs. Lumpsum SIPs allow investors to invest small amounts periodically into the fund. During redemption, these units are claimed on a first-in-first-out basis.  Consider a SIP investment of 1 year where you invested Rs 500 per month. Consider that you purchased 10 units in the first month. If the SIP is redeemed after 13 months, the first month is considered a long-term holding, and capital gains of the month are taxed at 10% (considering the capital gain exemption of Rs 1 lakh). The remaining SIP amounts from the second month are categorized as short-term and capital gains are taxed at 15%. Comparison of SIP vs. Lumpsum SIP vs Lumpsum13 monthsLumpsum (the entire amount of capital gains considered for LTCG)SIP (first-month capital gains are considered for LTCG)Monthly Amount                                  -   5000Invested amount6000060000Tax exempted amount for LTCG600005000 In a nutshell Fund TypeParametersShort-term Capital GainsLong-term Capital GainsEquity and Balanced funds (>65% in Equity)Holding PeriodUp to 12 months>12 monthsTax Rate15%10% (For amount > Rs 1 lakh)Debt Funds and Balanced funds (<65% in Equity)Holding PeriodUp to 36 months>36 monthsTax RateIncome Tax slab rate20% after Indexation FAQs How much amount is taxed in mutual funds? If the investor claims redemption in less than 1 year of investment, it would fall under the Short-term Capital Gains (STCG) category. The tax rate would be 15% on the gains earned by the investor. If the investor holds the investment for more than a year, (say April 2020 – May 2021), the gains would be taxed at long-term capital gains (LTCG) tax of 10%. Is SIP in mutual fund taxable? Yes, SIP in mutual fund are taxable. The tax amount differs based on the duration and returns generated. Which mutual funds are tax free? Profits from sale of ELSS fund units are considered long-term capital gains have tax exemption. Consult an expert advisor to get the right plan TALK TO AN EXPERT

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential India Opportunities Fund ICICI Prudential India Opportunities Fund  Investment objective   To generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring. Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved  Investment process   The Scheme’s style of investing is a bottom-up stock-picking style because the core of its investment strategy is identifying companies in special situations which require rigorous 360-degree stock research. The scheme would endeavor to take concentrated exposure to high-conviction stocks. Portfolio composition  The equity exposure is majorly in large-cap stocks at 69% and major sectoral exposure is to Pharmaceuticals & Biotechnology and Banks. The top 5 sectors hold nearly 51% of the portfolio.  Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: ICICI Pru Top 5 Holdings Name Sector Weightage % Oil & Natural Gas Corporation Ltd. Petroleum Refineries 7.88 Bharti Airtel Ltd. Telecom Services 6.81 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 6.67 NTPC Ltd. Energy Conglomerate 6.58 State Bank of India Ltd. Bank 4.95 Note: Data as of 30th Nov 2022. Source: ICICI Pru Performance over 3 years  If you would have invested 10,000 at the inception of ICICI Prudential India Opportunities Fund, it would be now valued at Rs 20,370. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – Jan 15, 2019. Source: icicipruamc.com The ICICI Prudential India Opportunities Fund has given consistent returns and has outperformed the benchmark over the period of 3 years generating a CAGR (Compounded Annual Growth Rate) of 19.90%. Fund manager  Mr. Sankaran Naren is a fund manager and CIO at ICICI Prudential, where he manages Indian equity portfolios. He has worked with various financial services companies, including Refco Sify Securities India and HDFC Securities. Mr. Sankaren has an MBA from the Indian Institute of Management, Kolkata.  Mr. Roshan Chutkey: With an overall experience of 12 years, he has been associated with JP Morgan Chase, Citibank, and Kuwait Financial Centre. He holds an engineering degree from IIT Madras, MBA from IIM Lucknow, and holds a Masters in Finance degree from London Business School.  Who should invest?  For investors  Who has an appetite for volatility?  Looking to benefit from taking concentrated stock bets.  Why invest?  This scheme benefits from investment opportunities provided by special situations such as corporate restructuring, Government policy and/or regulatory changes, etc.  Any investor ready to have this risk appetite can invest.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential India Opportunities Fund is good for investors who want to generate long-term capital appreciation by having a very high-risk appetite. This scheme can help investors with an appetite for volatility with good portfolio returns  

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions. Let us talk about the flagship product – ICICI Prudential Focused Equity Fund ICICI Prudential Focused Equity Fund Investment objective To generate capital appreciation through investments in equity & equity-related instrument securities of up to 30 companies across market capitalization i.e. focus on multi-cap. Investment process The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The Scheme will aim to hold optimum exposure to large and mid-cap stocks depending on the fund manager's view on market valuations. The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector-agnostic and will maintain an overweight stance on select high-conviction themes/sectors that are expected to outperform in the current economic cycle. The scheme would use a combination of bottom-up research for stock selection. follows a bottom-up approach for identifying stocks that have robust business financials, above-average profitability, and sustained competitive advantages. While the large-cap stocks represent established enterprises selected from the Top 100 stocks by market capitalization, the mid- and small-caps represent business entities with higher growth potential. The allocation will be decided on a tactical basis rather than any predetermined ratio. Portfolio composition The portfolio holds the major exposure in large-cap stocks at 82% and sectorally major exposure is to financial services that account for over 31% of the portfolio. The top 5 sectors hold more than 69% of the portfolio. Note: Data as of 30th Nov 2022.Source: Value Research Top 5 holdings NameSectorWeightage %ICICI BankFinancial8.58HDFC BankFinancial5.77Sun PharmaceuticalHealthcare5.25State Bank of IndiaFinancial5.10Axis BankFinancial4.77Note: Data as of 30th Nov 2022.Source: Value Research Performance over 13 years If you had invested 10 lakhs at the inception of the fund, it would be now valued at Rs 43.19 lakhs. Note Performance of the fund since launch; Inception Date – May 28, 2009, till Dec 12, 2022.Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 13.13%. INVEST NOW Fund Manager Sankaran Naren He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Refco Sify Securities India Pvt Ltd., HDFC Securities Ltd., and Yoha Securities. Vaibhav Dusad He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Morgan Stanley, HSBC Global Banking and Markets, CRISIL, Zinnov Management Consulting, and Citi Bank Singapore. Who should invest? Investors looking to Hold a concentrated portfolio of around 30 quality stocks Build core equity portfolio for long-term wealth creation with steady growth Why invest? ICICI is a renowned name in the finance industry with a proven track record Strong stock selection approach with a bottom-up approach Horizon One should look at investing for a minimum of 5 years or more A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility. Conclusion The fund has delivered consistent returns over 13 years with a proven track record and has delivered 13.13% CAGR consistently. Thus, suitable for investors who want a focused portfolio of quality stocks along with market leaders. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirements of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades DSP has helped its investors to make responsible money decisions based on two pillars i.e., honesty and integrity. DSP Equity Opportunities Fund  Investment objective An open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of large and mid-cap companies. Investment process The DSP Equity Opportunities Fund follows a growth style of investing which consists of growth stocks of large-, mid, and small-cap companies. The investment philosophy of the fund is to buy quality businesses from every sector to provide diversification.  The portfolio construction involves investing majorly in large & mid-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio. The fund uses top-down sector analysis and bottom-up sub-sector stock analysis. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 56% and sectorally major exposure is to financial services that account for almost one-third of the portfolio. The top 5 sectors hold nearly 66.66% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  CONSULT FUND MANAGER Top 5 holdings Name Sector Weightage % ICICI Bank Financial 7.37 HDFC Bank Financial 6.56 Infosys Technology 5.13 Axis Bank Financial 3.72 State Bank of India Financial 2.72 Note: Data as of 30th Nov 2022. Source: Value Research https://www.youtube.com/shorts/GTMkN4F0HoM Performance over 22 years  If you had invested 10 lakhs at the inception of the DSP Equity Opportunities Fund, it would be now valued at Rs 3.64 crore.  Note Performance of the fund since launch; Inception Date – May 16, 2000, till Dec 12, 2022. Source: Money control  The fund has given consistent returns and has outperformed the benchmark over the period of 22 years by generating a CAGR (Compounded Annual Growth Rate) of 17.40%.  INVEST NOW Fund manager  Rohit Singhania: Prior to joining DSP Mutual Fund, he worked with HDFC Securities Ltd. and IL&FS Investment Limited.  Kaushal Maroo has recently joined the AMC in Dec 2022.  Who should invest?  Investors looking to  Hold a focused portfolio of large & mid-cap companies  Invest in market leaders of large & mid-cap companies  Why invest?  To beat the impact of rising prices over the long-term  Offers the chance to grow your wealth by owning high growth-potential companies at fair prices  Horizon  One should look at investing for a minimum of 5 -7 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The DSP Equity Opportunities Fund has a well-diversified portfolio of 68 stocks that have delivered consistent returns over 22 years with a proven track record of a 17.40% CAGR consistently. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry. DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & Integrity. About DSP Focus Fund Investment objective The portfolio will consist of multi-cap companies by market capitalization. The Scheme will hold equity and equity-related securities including equity derivatives, of up to 30 companies. The Scheme may also invest in debt and money market securities, for defensive considerations and/or for managing liquidity requirements. Investment process The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The investment philosophy of the fund is to buy quality businesses from every sector to provide diversification. The portfolio construction involves investing majorly in large & mid-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio. The fund uses different valuation models to identify the stocks from every sector. Portfolio composition The portfolio holds the major exposure in large-cap stocks at 59% and sectorally major exposure is to financial services that account for almost 23% of the portfolio. The top 5 sectors hold nearly 65% of the portfolio. Note: Data as of 30th Nov 2022.Source: Value Research Top 5 holdings NameSectorWeightage %ICICI BankFinancial10.53InfosysTechnology6.40CiplaHealthcare5.56Bajaj FinanceFinancial5.51Eicher MotorsAutomobile4.87Note: Data as of 30th Nov 2022.Source: Value Research Performance over 22 years If you would have invested 10 lakhs at the inception of the fund, it would be now valued at Rs 34.18 lakhs. Note: Performance of the fund since launch; Inception Date – Jun 10, 2010, till Dec 14, 2022.Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of 12 years generating a CAGR (Compounded Annual Growth Rate) of 10.32%. Fund Manager Vinit Sambre Prior to joining DSP Mutual Fund, he has associated with DSP Merill Lynch Ltd.(Nov’05 to Jun’07, IL & FS Investsmart Ltd. (Dec’02 to Oct 05), Unit Trust of India Investment Advisory Services Ltd. (Jun’00 to Dec’02), Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. (Mar’99 to May 00) and Credit Rating Information Service of India Ltd. (Apr’98 to Feb’99). Who should invest? Investors looking to Hold a focused portfolio of multi-cap companies across sectors Have the patience & mental resilience to remain invested for a decade or more Why invest? To beat the impact of rising prices over the long-term Offers the potential to grow your wealth by investing in a relatively concentrated portfolio of quality companies with strong valuations Horizon One should look at investing for a minimum of 5 - 7 years or more A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility Conclusion The fund has invested in almost every sector to provide sectoral diversification to the portfolio and the fund has delivered consistent returns over 12 years with a proven track record with a 10.32% CAGR consistently. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

What is concentration risk in Equity funds? Let us explain! Have you heard of the saying “putting all your eggs in one basket”? It means that you are dedicating a large number of your efforts and financial or other resources to one thing and hoping for its great success. Similarly, in your investment portfolio, your eggs are your savings - the money bags and the sectors or themes or instruments are the baskets. When you put all your eggs in a particular sector, and if the market crashes down due to unforeseen market conditions, all your eggs go bad (in short – you lose all your money bags). This is a concentration risk. When you have invested a lot in a sector, most of your expected returns depend solely on that particular sector’s performance. The possibility of your returns getting derailed due to high dependency on a small set of factors - this unique risk is called concentration risk. Why is this risk important? When we invest, we invest for our future, and our long-term goals – retirement, children’s education, wedding expenses, and more. Suppose, you invest in a mutual fund that is supposed to earn you a 15% return. However, if the mutual fund invests only in the infrastructure sector – this fund could be impacted by a multitude of macroeconomic factors such as interest rates, price of fuel, currency appreciation/depreciation, etc. In the time period of 2007-12, the infrastructure index gave an annualized return of -3% when compared to Nifty, which earned its investors a return of 7-8%. This is when diversification becomes important. Your portfolio should consist of sectors that complement one other. For instance, when oil and gas prices are on the rise, the energy sector is outperforming the market. However, the infrastructure sector which uses energy as input, or any sector which utilizes oil and gas as an input in their production would see an increase in costs – a decrease in stock price. Hence, these would move in opposite directions. If you had stocks from sectors that are moving in the opposite direction, you would either benefit from the net upside (Sector 1 increase + Sector 2 decrease), or you would limit your downside. Some sectors such as steel have long business cycles – they tend to have a longer slump (of greater than 10 years) due to macroeconomic conditions such as lower demand or higher supply, etc. If one invests in these sectors, there is a high risk of your portfolio underperforming the market. Consider a fund that invests in oil, steel, and other metals (they are also available as commodity indices). Oil and metals typically see simultaneous ups and downs in market cycles – this would mean higher risk and a higher impact on the portfolio of the fund. Marco-economic correlation Debt funds are impacted by a change in interest rates. When the RBI policy announces an increase in interest rates, the prices of the funds start to plummet if they have invested in long-term bonds (which are impacted the most). Similarly, there could be sectors that are impacted by interest rate movements or GDP movements. When there is a declaration of a decrease in interest rates by RBI’s monetary policy, NBFCs could gain from this move. The banking sector could be affected by this move due to a crunch in the interest margin i.e., profit for the bank – as the interest rates climb up, the profit margin increases and vice versa. However, this could also mean that the banks are able to borrow from the RBI at a cheaper rate. Large companies with stable cash flows will find cheaper debt financing options, and hence their stocks could also be on the rise. Hence, if one had only invested in the Banking and Financial sector (BFSI), one would see a drop in their portfolio. When there is an increase in interest rates and if one had invested in the Auto and Real estate sectors - despite having invested in two sectors, the impact would be negative. Beware of these correlations and invest in sectors that are least similar, so that your eggs cushion your portfolio during economic volatility. FAQs What causes concentration risk? Concentration risk is a result of uneven distribution of exposures (or loan) to its borrowers. How can you prevent concentration risk? You can prevent concentration risk by diversification across sectors, rebalancing your portfolio or by selling your certain investments. What is concentration risk? Concentration risk refers to anticipated loss in investments due to investing in multiple funds with the same or similar investment strategy. The loss cannot easily be remedied and hence, investors are advised to avoid it. What is concentration risk limited to equity funds? No, concentration risk is not limited to equity funds. It is also present in debt funds and it is important to understand the sectors and areas of investment of each fund to avoid this risk. Consult an expert advisor to get the right plan TALK TO AN EXPERT