Indian economy has witnessed many positive changes in the last few decades. We have been going very strong as reflected in our GDP numbers. This has led to a surge in money at our disposal, thereby increasing our need for better investment opportunities. I have been investing in the Equity and Fixed Income markets since long. But,of late, due to time constraints, I have been preferring mutual funds. There are schemes that ensure good returns on my money in addition to creating long-term wealth. While analyzing additional options to diversify my portfolio, I stumbled upon New India Portfolio from FundsIndia.com and found it to be worthy of investing.
It is a comprehensive amalgamation of four funds which aims at the growth of our investments over a period of time. These four funds are discreetly selected after taking into consideration economic situation, sector performance, interest rate volatility and exchange rate. The four funds in this portfolio are:
Diversified Fund – This fund invests in large cap shares to give stability to the portfolio. Acting as a core fund, it ranks high on a risk-adjusted basis, but has low volatility. It is because of these reasons, this fund has performed consistently for many years.
Mid-cap Fund – Mid cap stocks are like dark horses of capital market and this fund harnesses this quality to increase the return on our portfolio. However, only less volatile stocks are selected to be a part of this fund; hence, even this fund has performed well for over more than 5 years.
Diversified Theme Fund – It concentrates on investing in those sectors which are considered the building blocks of an economy. Investments in infrastructure, resources, finance, social development and agriculture are bound to give good returns. And, coupled with that, investments in cyclical sectors like manufacturing, banking and auto are making it truly diverse.
Long-term Debt Fund – This is the only debt component in this portfolio. Fund Managers have kept medium-to-long term maturity government securities and AAA-rated bonds in it, with an aim to gain from debt rally.
Even with four different funds, the core values of this portfolio are consistency and stability. Hence, growth of investment is guaranteed in the long run. Along with the diversification of funds in this portfolio, it has taken into account the economic scenario of India into consideration, making it an ideal plan to invest these days.
Since the economic reforms in 2014, there have been many developments which have contributed towards the compilation of this portfolio – lower inflation, improving fiscal deficit situation, stable currency and deregulation of oil prices and a cut in interest rates has made it an ideal time to invest into. Have a look below for better understanding –
Now, from an investor perspective, I would invest in it for two reasons. One, for long term wealth creation. This fund performs better in the long term. So, if you are looking for a long term option, say 5 years, this is a right scheme for you. I am sure, presence of diverse funds will bring good returns on my investment. Second, to supplement my existing portfolio. This portfolio is aggressive in nature, with a major part being equity and a little portion of debt. It best suits those who want to supplement their existing portfolio, just like me.
After reading about the major components of these funds, I delved into its performance. I was pleasantly surprised to see that this portfolio has generated 18% compounded annual returns in the last five years, as compared to 11% returns from the blended index. These figures are calculated by taking into account the weighted average performance of the funds. In simple words, the performance of this portfolio is amazing by all standards.
In case you are looking to diversify your existing portfolio, this New India Portfolio by #FundsIndia is the right investment for you. You can log into FundsIndia to know more.
* Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.