Come Out of Inflation’s shadow on this EARTH DAY!

By Rahul Pithadia – 

Savings turn out to be less as inflation eats away the value of your investments. More than half of the population does not keep an eye on the inflation rate while making an investment and later end up losing their capital at the end of the year. In India the inflation rate currently stands around 8% , hence the investment options like ,Savings Ac, Post Office Savings, PPF’S,FD’S are not helpful as they have less than 8% interest to offer.

One cannot stop inflation but still one should stick to the rule of thumb that you need to earn more than inflation rate on your basket of investments. Investing in Equities is one of the best solutions to stay ahead of inflation. Over the last 10 years Nifty has returned 16.7% a year compared to 7% average inflation rate. One can directly invest into Equities or through Mutual funds. For small investors it is advisable to choose the route of mutual funds as the investments are made by experts.

Below is a fund which has managed to produce healthy returns in the past and it is expected to recast the same role in future!

Birla MNC Fund Growth: Daily Chart

Birla MNC Fund, Birla MNC Fund Chart, Elliott Wave Analysis, Mutual Fund Research

Birla Sun Life MNC Fund is an open ended growth scheme which invests primarily in the small cap and mid cap sector which has high potential in the future.

Objective: To achieve growth of capital at relatively moderate levels of risk by investing in securities of multinational companies through in depth research.

Portfolio Analysis: This fund invests 38.04% in the top 5 holding which are mentioned below

Top Holdings:

 Top holdings of Birla MNC Fund

Sector Allocation:Sector focus: It provides interesting insights, Banking sector is not included in this fund which is a decent move as there are other outperforming sector which are relatively good compared to the PSU Banks which has shown sharp depreciation in its price.

Sector Allocation of Birla MNC Fund
Returns as on: 12th April 2016

Returns of Birla MNC Fund as on 12th April

Risk Parameters: As the investments are made in the small cap & mid cap stocks the risk associated with this fund is high but as they are MNCs the tank period will not be of much pain. 

In a nutshell, If we look at the history this fund has given promising return from the levels of 23 to 640 and also has inherent potential ahead. Investments through SIP will be the best route to travel the journey. Lump sum investments can be made above 600 levels which will give a positive gate pass to the bull trend which is in sync with our outlook on Indian markets!

 

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