The Goldilocks Way : Union Multi-Asset Allocation Fund

  

The Goldilocks Way:

The Goldilocks principle can be said to be the foundation of Multi-Asset Fund.  It's named after the children's story Goldilocks and the Three Bears, which is a story about a little girl, Goldilocks, who is looking for where she fits in. One day, she stumbles onto the home of the three bears. She tries out three porridges (bowls of oatmeal), three chairs, and three beds before finding one of each that fits her perfectly. 

According to SEBI guidelines, a Multi-Asset Fund must invest in at least 3 asset classes, with at least 10% in each class. These funds invest in a diversified portfolio of different asset classes, such as equities, bonds, and commodities. 

About 65–80% of the Union Multi-Asset Allocation fund's corpus will be invested in equity and equity-related instruments, with the remaining 10–25% going toward purchasing gold ETF units and the remaining 10%–25% going toward debt and money market instruments.

The Fund's multi-asset strategy reduces the impact of volatility and offers better risk-adjusted returns, particularly during euphoric times.

The Union Mutual Fund is backed by Union Bank of India and Dai-ichi Life Holdings Japan. Dai-ichi Life Holdings is the third-largest life insurer in Japan.

Exit Load: 1% of the applicable NAV, if redeemed on or before 15 days from the date of allotment.

Minimum Amount for lumpsum investment in Union Multi-Asset Allocation Fund is Rs.1000.

Disclaimer:

Nippon India Silver ETF Fund of Fund (FOF)

 

Image courtesy Nippon India Mutual fund

In India, silver prices have crossed Rs 1 lakh per kg! Demand of Silver has doubled from last year.

In addition to its traditional applications, silver is in high demand in industry. Silver  is now being used extensively in solar panels for renewable energy, in EVs, in advanced healthcare, electronics and many other technologies. Silver is going to be the new critical mineral of the future.

Nippon India Silver ETF Fund of Fund (FOF), is one of the first domestic silver fund of funds in India which opens a new avenue for investing in silver as an asset class. The fund seeks to provide returns of silver through investments in Nippon India Silver ETF, which in turn invest in physical silver. It enables you to reap the returns of silver in a paper form without the need of a demat account.

It is a passively managed fund which enables an investor to save for silver in a convenient manner either through lump sum investment or through systematic investment.

Benefits of Investing in Nippon India Silver ETF Fund of Fund (FOF)

1. • Convenience: The scheme will allow non demat account holders to seek exposure in silver via investing in Nippon India Silver ETF Fund of Fund (FOF).
2. • Metal Purity: The scheme invests in the units of Nippon India Silver ETF which will further invest in physical silver bars having 99.9% silver purity.
3. • Hassle Free Investment: Investors need not worry about fear of theft as well as storage issues and insurance costs, as physical silver will be stored with SEBI registered custodian.
4. • Smaller Denomination Investments: Investors can buy a unit of Silver FOF by investing as low as Rs.100. 
5. • SIP Investments: Investors can avail the benefit of Systematic Investment Plan (SIP).
6. • Asset Allocation: Easy diversification in commodity as an asset class via single unit of Silver FOF through digital medium, to achieve desired asset allocation.
7. • Low Correlation: Relative low correlation to Indian indices, may provide opportunity for better risk adjusted returns as part of investors asset allocation.
8. • Potential Hedge: Investment in silver acts as an hedge against inflation.

Disclaimer:

Nippon India Gold Savings Fund

 

Image courtesy Nippon India Mutual Fund

While buying gold on Dhanteras is a tradition in India, a smart investor can invest in Nippon India Gold Savings Fund this year. Unlike physical gold, Nippon India Gold Savings Fund is easier to buy and sell, and it doesn't have issues like making charges, storage, or purity concerns. By investing in Nippon India Gold Savings Fund, investors can follow the tradition of Dhanteras with more flexibility and security.

Nippon India Gold Savings Fund offers several advantages that make it a good option for investors looking to add gold to their portfolios.

1. Hassle-Free gold ownership

Many investors are aware of the historically appreciating value of gold but find it difficult to buy and store the physical gold. Storing and safeguarding gold in physical form can be expensive and inconvenient. Investing in Nippon India Gold Savings Fund allows you to own gold without the storage hassles.

2. Real-time gold exposure

The value of the units gathered with this mutual fund scheme moves in tandem with the actual market price of gold. This means that the value of your investment follows the pattern of ups and downs of the value of gold. This can offer you direct and real-time exposure to the performance of gold.

3. Portfolio Diversification

By investing in the Nippon India Gold Savings Fund, you can diversify your portfolio and add a precious metal component to your risk management strategy. This can help mitigate risk, as gold may behave differently from traditional asset classes.

4. Cost Effective

When you buy physical gold in the form of jewelry or coins, you incur additional costs, such as making charges and wastage. These costs can significantly reduce your effective investment in gold. By investing in Nippon India Gold Savings Fund, investor can avoid these additional charges.

5. Low entry point

The fund allows you to start investing in gold with a relatively low initial investment amount. This accessibility means that even investors with limited capital can participate in the potential benefits of gold. This is quite different from investing in physical gold, for which you may need adequate capital upfront based on your needs and preferences. Minimum Application Amount here is Rs.100 and in multiples of Re.1 thereafter.

6. SIP: Systematic Investment Plan

Investors can also invest in small fixed amounts of money regularly usually every month on a predefined date submitting a one time application form for SIP. 

Some other Gold Mutual Funds Plans available in India are :

DSP Gold ETF FoF - Regular Plan

HDFC Gold Fund Regular Plan

Tata Gold ETF FoF - Regular Plan

SBI Gold Fund Regular Plan

There is no locking period applicable for the above-mentioned Gold Mutual Funds.

Disclaimer:

Motilal Oswal Digital India Fund NFO

Motilal Oswal Digital India Fund is a New Fund Offer introduced by Motilal Oswal Asset Management Company. Investors can subscribe to the NFO until October 25, 2024.

Allotment Date: 04th November 2024

Units Allotment: Units for investments received during the NFO period will be allotted at an NAV of Rs. 10.

The scheme will re-open for continuous sale and repurchase on 8th November 2024.

Exit load

1% - If redeemed on or before 3 Months from the date of allotment.

Nil - If redeemed 3 months after the date of allotment.

It is an open-ended equity scheme investing in the Digital space focusing on Technology, Telecom, Media, Entertainment and other related ancillary sectors.

The fund will follow a focused portfolio strategy based on the Quality, Growth, Longevity, and Price (QGLP) framework. This fund may be beneficial for investors who are seeking long term capital appreciation in digital space.

It is an actively managed fund by a team of seasoned professionals, benchmarked against the BSE Teck Total Return Index.

Disclaimer:

What is Mutual fund

What is Mutual fund 

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments is shared by its unit holders (investors) in proportion to the number of units owned by them. 

Mutual Fund is not an asset class itself, It can invest in one or more than one asset class like equities, fixed income, and commodities.  

Institution related to Mutual Funds in India

SEBI > Securities and Exchange Board of India is the regulatory body for securities and commodity market in India under the administrative domain of Ministry of Finance within the Government of India.

AMFI > Association of Mutual Funds in India is a non-profit organization and self-regulatory body that regulates all asset management companies (AMCs) of mutual funds registered with the Securities and Exchange Board of India (SEBI). AMFI's role is to ensure ethical practices and investor protection in the mutual fund industry. 

NISM > National Institute of Securities Markets is a public trust established in 2006 by the Securities and Exchange Board of India (SEBI). Its purpose is to build human resources in the securities markets and financial sector. 

Disclaimer:

What is SIP

Systematic Investment Plans or SIPs are one of the most popular ways of investing in Mutual Funds.

SIP is just a method for investing in mutual funds; it is not an asset class like stocks, bonds, or commodities. 

We can invest in mutual funds in two ways: lump sum and SIP. When we invest a lump sum, we put a large amount of money into a mutual fund scheme in one go. 

In SIP, we invest small fixed amounts of money regularly usually every month on a predefined date submitting a one time application form.

SIP promotes disciplined investment.

SIP encourages forced savings and helps you build a corpus without cramping your lifestyle.

Image Courtesy: Union Mutual Fund

Disclaimer:

SBI Nifty India Consumption Index Fund NFO

        Benefit from India’s growing 'Consumption Theme' with *SBI Nifty India Consumption Index Fund*. NFO now open!

Image Courtesy: SBI Mutual Fund

It is an index fund that aims to replicate the performance of Nifty India Consumption Index.

 The new fund offer (NFO) launched by SBI Mutual Fund akin to the IPO offer will be launched for public subscription on October 16 and will end on 25th October, 2024.

It is an open-ended mutual fund scheme, so investors can purchase units even after the NFO period. Open-ended schemes permit investors to enter or exit anytime. The scheme will re-open for continuous sale and repurchase on 6th November, 2024.

The scheme would primarily invest a minimum of 95% and a maximum of 100% of its assets in stocks comprising the Nifty India Consumption Index and up to 5% in Government securities (like G-Secs, SDLs, and treasury bills.

This new fund will focus on sectors directly related to consumer demand such as FMCG, Consumer Durables, Consumer Services, and Automobiles, reflecting the increasing consumption theme in India. these sectors are crucial for capturing the growth in consumer spending.

Minimum Amount for lumpsum investment: Rs.5000

Disclaimer: