Wealth Creation Solutions

by Rajeev Pathak

Photo by Tima Miroshnichenko in Pexels.com

Today, we discuss some of the wealth creation solutions for the long term. The BUDGET was the prime event this week. A lot of hopes and wishes were making rounds before its presentation and post-budget, it is turning into euphoria. Share markets particularly Mid Cap & Small Cap stocks and Bank Nifty are making new highs almost every day. The budget is friendly to MSME units and small taxpayers and both have a stake in Mid & Small-cap stocks.  

I had promised you to discuss best performing individual schemes of various mutual funds in coming posts. It is not just a coincidence that the majority of performing mutual funds are coming from Mid-Small Sector. In fact, during the last 2-3 years, their underlying stocks have fared well in comparison to large-cap. Some fund managers feel that now onward, large-cap funds will perform better. Anyway, let us go with the trend.

 So, the following is the list of top-performing equity mutual fund schemes based on SIP performance. Though this analysis is based on SIP performance, it is equally good for lump sum investment.  Please note that this presentation is based on available data for study purposes and not a recommendation. Investment suited for an individual requires study of his /her financial profile.

 WEALTH CREATION SOLUTIONS- 

SIP Performance of Rs. 10,000/- Per Month (As of 30.11.2016)

	3 Years		5 Years
Amount invested (Principal)	3,60,000		600,000
Scheme Name	Market Value	Returns (%)	Market Value	Returns (%)
L&T Mid Cap Fund	4,98,587	22.34	11,45,705	26.19
L&T India Value Fund	4,93,391	21.58	11,16,001	25.10
Franklin Smaller Companies Fund	4,73,571	18.66	11,81,236	27.49
Franklin Templeton Prima Fund	4,53,007	15.52	10,56,874	22.84
ICICI Prudential Mid Cap Fund	4,40,510	13.57	10,32,130	21.86
Birla Equity Fund	4,47,038	14.59	9,76,597	19.58
Birla Advantage Fund	4,33,416	12.44	9,52,468	18.55

 

NOTE: We have considered only those FUNDS for our study whose Return (CAGR) has been a minimum of 12% & 15% for  3 & 5 year periods, respectively.

 

Benefits of Wealth Creation Solution:

  The objective is to create wealth in the long term.
  Since the Fund invests for the long term, short term ups & downs in the market are overcome.
  Dividends are tax-free for the present. Please check the prevailing rules at the time of investment.
  At present, No Capital Gain Tax on redemption after 1 year as per current tax laws.

 

Please note that the tax laws are subject to change from time to time. Please ensure prevailing tax provisions at the time of investment or its redemption.
                                                                          

Disclaimer

       The Wealth Creation Solution stated above is ONLY for highlighting the many advantages perceived from investments in Mutual Funds but does not in any manner, indicate or imply, either the quality of any particular Scheme or guarantee any specific performance/returns.

      Past performance may or may not be sustained in the future. Returns greater than 1 year period are compounded annualized. 

        Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.

(This post was originally written & published in Nov 2016). 

Your queries/ feedback  may be addressed to

boirajeev@gmail.com