How the Dynamic Asset allocation in Mutual funds works?
These kinds of funds, generally comes under the structure of Fund of fund schemes i.e. one Mutual fund invest in other different Mutual funds. They have set criteria based on price to earnings ratio of Nifty or any other benchmark as to at what level what percentage of portfolio should be into equity and what into debt.
Let's take example of Franklin India Dynamic PE ratio fund which is the oldest fund in this category having a track record of more than 10 years. This fund has Franklin India Blue-chip fund for equity allocation and Franklin India short term income plan for debt allocation.
It works on the following mentioned strategy and portfolio as on Aug 2014 is also as follows.
One thing to note here is that these kind of funds don't look at your personal risk tolerance level or goals for asset allocation, but only the nifty or Sensex valuation
The strategy clearly tells that when PE ratio of Nifty increases the fund keeps on reducing the equity component.
Every fund house which has come up with such strategy has a predefined allocation band. Most of the funds have been recently launched so there performance can't be commented on as it has not seen much of market movements.
Some funds of this category are HDFC Dynamic PE ratio FOF, BOI AXA equity debt re-balancer fund, and IDFC is coming out with a new fund naming IDFC Dynamic equity fund.
ButFranklin Dynamic PE fund has 11 years track record, so we can figure out if the strategy has worked or not.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Invest Any Mutual Fund Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
Posts
0 comments:
Post a Comment