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Recommended Portfolios Update - January 2013
February 1, 2013

This is a brief update of the performance of our Recommended Portfolios for January 2013.


Author : iFAST Research



Recommended Portfolio Update - Jan 2013

The Recommended Portfolios underwent a revamp on March 9, 2012. Once again we have done so. The strategy being that it will undergo a change whenever our outlook on the equity markets change or when we review our recommended funds list. The current churning of the portfolio was done on account of the review in the recommended funds’ list.

  • Unless specified, all the returns stated are on a month-on-month basis

  • The target allocation for the specific portfolio may change depending on our views on the market

  • In all the portfolios, we currently hold a neutral position in equities.

 

1. Conservative Portfolio

Portfolio Objective:
To achieve long-term capital appreciation by investing 90% into bond funds and the remaining 10% into equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

28.44%

Portfolio Value:

 INR 1,28,445

January 2013 Portfolio Return:

1.05%

Portfolio Commentary:
The portfolio delivered a return of 1.05% for the month of January 2013 as compared to 0.93% the previous last month. This was primarily due to the good performance of equity funds and decent returns delivered by the debt funds as indicated below.

Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
ICICI Prudential Income Plan (Income): 1.48%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%
Templeton India Short Term Income Fund (Short Term): 0.90%
BNP Paribas Money Plus Fund (Ultra Short-term): 0.67%

Equity funds:
ICICI Prudential Focused Bluechip Equity Fund (Large-cap): 1.96%
UTI Dividend Yield Fund (Dividend Yield): 1.10%.

 

2. Moderately Conservative Portfolio

Portfolio Objective:
To achieve long-term capital appreciation by investing 70% into bond funds and the remaining 30% into equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

28.56%

Portfolio Value:

 INR 1,28,560

January 2013 Portfolio Return:

1.25%

Portfolio Commentary:
The portfolio posted a positive return of 1.25% for the month of January 2013 as compared to 1.07% in the last month. The higher returns are mainly due to the good performance of the equity and income funds.

Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
ICICI Prudential Income Plan (Income): 1.48%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%
Templeton India Short Term Income Fund (Short Term): 0.90%
BNP Paribas Money Plus Fund (Ultra Short-term): 0.67%

Equity funds:
Franklin India Bluechip Fund (Large-cap): 1.99%
ICICI Prudential Focused Bluechip Equity Fund (Large-cap): 1.96%
UTI Dividend Yield Fund (Dividend Yield): 1.10%.

 

3. Balanced Portfolio

Portfolio Objective:
To achieve long term capital appreciation by investing 50% into bond funds and the other 50% into equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

29.58%

Portfolio Value:

 INR 1,29,578

January 2013 Portfolio Return:

1.23%

Portfolio Commentary:
The portfolio performed well but not as good as the previous month. For the month of January, the portfolio delivered a return of 1.23%, as compared with 1.30% of the earlier month. This good performance could be attributed to the large caps included in the portfolio. On the other hand, our mid-cap fund, HDFC Mid-Cap Opportunities Fund, delivered a negative return to the tune of 0.28%.

Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
ICICI Prudential Income Plan (Income): 1.48%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%
Templeton India Short Term Income Fund (Short Term): 0.90%
BNP Paribas Money Plus Fund (Ultra Short-term): 0.67%

Equity funds:
Franklin India Bluechip Fund (Large-cap): 1.99%
ICICI Prudential Focused Bluechip Equity Fund (Large-cap):  1.96%
UTI Dividend Yield Fund (Dividend Yield): 1.10%
HDFC Mid-Cap Opportunities Fund (Mid cap & Small cap): -0.28%.

 

4. Moderately Aggressive Portfolio

Portfolio Objective:
To achieve long term capital appreciation by investing 30% into bond funds and 70% into equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

31.98%

Portfolio Value:

 INR 1,31,978

January 2013 Portfolio Return:

0.63%

Portfolio Commentary:
The portfolio posted moderate returns this month; 0.63% as compared to 1.52% of the previous month. The moderate performance was on account of the poor show by multi-cap and mid-cap funds.

Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
ICICI Prudential Income Plan (Income): 1.48%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%
Templeton India Short Term Income Fund (Short Term): 0.90%

Equity funds:
ICICI Prudential Focused Bluechip Equity Fund (Large-cap):  1.96%
Reliance Banking Fund (Sector): 1.45%
L&T Equity Fund (Multi cap): 1.12%
ICICI Prudential Infrastructure Fund (Sector): 0.43%
UTI Opportunities Fund (Multi cap): -0.2%
HDFC Mid-Cap Opportunities Fund (Mid Cap & Small cap):-0.28%
IDFC Sterling Equity Fund (Mid cap & Small cap): -0.72%.

 

5. Aggressive Portfolio

Portfolio Objective:
To achieve long term capital appreciation by investing 10% into bond funds and 90% into equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

35.18%

Portfolio Value:

 INR 1,35,183

January 2013 Portfolio Return:

0.45%

Portfolio Commentary:
The The aggressive portfolio delivered 0.45% returns as compared to 1.90% in December 2012. The portfolio took a severe beating on account of the poor performance delivered by multi-cap and mid-cap funds.
 
Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%

Equity funds:
ICICI Prudential Focused Bluechip Equity Fund (Large-cap): 1.96%
Reliance Banking Fund (Sector): 1.45%
L&T Equity Fund (Multi cap): 1.12%
ICICI Prudential Infrastructure Fund (Sector): 0.43%
UTI Opportunities Fund (Multi cap): -0.20%
HDFC Mid-Cap Opportunities Fund (Mid cap & Small cap): -0.28%
IDFC Sterling Equity Fund (Mid cap & Small cap): -0.72%.

 

6. Moderately Aggressive (Global) Portfolio:

Portfolio Objective:
To achieve long term capital appreciation by investing 30% into bond funds, 45% in domestic equity funds and 25% in global equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

32.08%

Portfolio Value:

 INR 1,32,081

January 2013 Portfolio Return:

0.66%

Portfolio Commentary:
The Moderately Aggressive (Global) portfolio delivered 0.66% during the month as compared to 1.93% in the previous month.

Debt funds:
ICICI Prudential Gilt Fund – Investment Plan (Gilt): 1.53%
ICICI Prudential Income Plan (Income): 1.48%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%
Templeton India Short Term Income Fund (Short Term): 0.90%

Domestic equity funds:
ICICI Prudential Focused Bluechip Equity Fund (Large-cap): 1.96%
L&T Equity Fund (Multi cap): 1.12%
ICICI Prudential Infrastructure Fund (Sector): 0.43%
UTI Opportunities Fund (Multi cap): -0.20%
HDFC Mid-Cap Opportunities Fund (Mid cap & Small cap): -0.28%
IDFC Sterling Equity Fund (Mid cap & Small cap): -0.72%

Global equity funds:
Mirae Asset China Advantage Fund: 0.95%
Franklin Asian Equity Fund: -0.04%.

 

7. Aggressive (Global) Portfolio

Portfolio Objective:
To achieve long term capital appreciation by investing 10% into bond funds, 59% into domestic equity funds and 31% into global equity funds. Currently, we target an exposure of 10% to bond funds, 60% to domestic equity funds and 30% to global equity funds.

Total Investment:

INR 1,00,000

Portfolio Absolute Return since inception:
(Inception Date: 26 Feb 2010)

33.43%

Portfolio Value:

 INR 1,33,433

January 2013 Portfolio Return:

0.49%

Portfolio Commentary:
The  Aggressive (Global) portfolio posted returns of 0.49% in the current month as against the previous month’s return of 2.38%. The poor performance of the multi-cap and mid-cap funds impacted the overall portfolio.

Debt funds:
ICICI Prudential Gilt Fund- Investment Plan (Gilt): 1.53%
Birla Sun Life Dynamic Bond Fund (Dynamic Bond): 0.98%

Domestic equity funds:
ICICI Prudential Focused Bluechip Equity Fund (Large-cap): 1.96%
Reliance Banking Fund (Sector): 1.45%
L&T Equity Fund (Multi cap): 1.12%
ICICI Prudential Infrastructure Fund (Sector): 0.43%
UTI Opportunities Fund (Multi cap): -0.20%
HDFC Mid-Cap Opportunities Fund (Mid cap & Small cap): -0.28%
IDFC Sterling Equity Fund (Mid cap & Small cap): -0.72%

Global equity funds:
Mirae Asset China Advantage Fund: 0.95%
Franklin Asian Equity Fund: -0.04%.

Conclusion:

We have changed our recommended funds in January 2012 due to which we are revamping our portfolios today. A detailed note on the same will be shared with our advisors and investors next week.


iFAST and/or its content and research team’s licensed representatives may own or have positions in the mutual funds of any of the Asset Management Company mentioned or referred to in the article, and may from time to time add or dispose of, or be materially interested in any such. This article is not to be construed as an offer or solicitation for the subscription, purchase or sale of any mutual fund. No investment decision should be taken without first viewing a mutual fund's offer document/scheme additional information/scheme information document. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Investors should seek for professional investment, tax, and legal advice before making an investment or any other decision. Past performance and any forecast is not necessarily indicative of the future or likely performance of the mutual fund. The value of mutual funds and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.


 


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