Diversified Mutual Fund is the safest option!

By Rahul Pithadia : Diversified mutual funds are those which spread their investments across various sectors or internally within themselves. This is basically done to avoid the risk associated with one specific sector. However from the diversified section you need to find the best one and it is easier said than done. It becomes puzzling when we have more than 100 diversified schemes to choose from so below is the solution for the same.

Birla Sun Life India GenNext Fund is an open ended diversified fund having 95.33% exposure to equity. This fund is classified as thematic fund, as the name of the fund suggests this fund invests in equities and equity related instruments of the companies that are projected to benefit from the rising consumption pattern in India.

Birla Sun Life India Gen Next Fund- Growth Daily Chart

Birla Sun Life India GenNext Fund 20151231

Portfolio Analysis: As shown on the daily chart stocks of this fund are selected as per the Theme, which invests in characteristics of the companies that seek growth in revenues arising out of demand from the younger generation (GenNext) i.e employed generation for their products and services. Given below is the sectoral allocation of the fund.

Sector20151231

Risk Profile: We will consider this fund as High Risk as it has giving approx 95.33% exposure to Equity as of 29th May,2015. This fund is also ranked 2 in diversified Equity category by Crisil.

Returns 20151231

Investment Rationale: As this fund has showed some strength even during the corrective phase we expect that the retracement will be more of time wise than price wise. Currently prices are also taking support of the 150 days moving average which is a positive sign. This fund is diversified hence we are not witnessing deeper retracement and currently sip route will be the best to enter this fund.

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