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Best Large & Midcap Funds

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A large and mid cap mutual fund is an open-ended equity scheme which invests at least 35% of its assets in large cap and 35% of its assets in mid cap stocks each. Since a large and mid cap fund invests in both large and mid cap stocks, it can give higher returns than purely large cap funds but potentially lower returns than pure mid cap, small cap or multicap funds.

Here are the top 5 large and mid cap funds for 2019.

Fund Name 1 Year Return 3 Year Return 5 Year Return
Invesco India Growth Opportunities Fund 15.81% 15.00% 12.86%
Sundaram Large and Mid Cap Fund 15.81% 15.00% 12.86%
Kotak Equity Opportunities Fund 16.04% 11.26% 11.70%
DSP Equity Opportunities Fund 15.76% 10.92% 11.94%
SBI Large & Mid Cap Fund 10.70% 9.92% 10.66%

(Data as on November 08, 2019; Source: Value Research)

1. Invesco India Growth Opportunities Fund

Returns 1-Year (%) 3-Year (%) 5-Year (%)
Invesco India Growth Opportunities Fund 15.81% 15.00% 12.86%
Benchmark 9.59% 10.97% 9.93%

(Data as on November 08, 2019; Source: Value Research)

Invesco India Growth Opportunities Fund is more than a decade old fund which was launched in August 2007. The scheme has registered an impressive performance over the recent years. The scheme has outperformed its benchmark during both the short and long term periods.

It is a relatively aggressive large and mid cap fund which has given a higher weightage to consumption-driven sectors than defensive sectors in its portfolio. It is an ideal scheme for investors seeking capital appreciation over long term undertaking moderately high risk.

2. Sundaram Large and Mid Cap Fund

Returns 1-Year (%) 3-Year (%) 5-Year (%)
Sundaram Large and Mid Cap Fund 15.81% 14.63% 12.78%
Benchmark 12.06% 12.35% 9.61%

(Data as on November 08, 2019; Source: Value Research)

Sundaram Large and Mid Cap Fund is a time-tested fund which has been present in the space since February 2007. The scheme has given returns better than its benchmark during the last 3 year as well as 5 year periods. It is a relatively aggressive scheme which holds more of sectors, like banking and finance, the growth of which is dependent on the economic growth of the country. It is the right scheme for investors who wish to earn potentially high returns for relatively high risk levels.

3. Kotak Equity Opportunities Fund

Returns 1-Year (%) 3-Year (%) 5-Year (%)
Kotak Equity Opportunities Fund 16.04% 11.26% 11.70%
Benchmark 12.33% 12.39% 9.48%

(Data as on November 08, 2019; Source: Value Research)

Kotak Equity Opportunities Fund is one of the oldest large and mid cap funds which made its debut in September 2004. The scheme has given good returns over the past and has even outperformed its benchmark during the previous 5 year period. It is a relatively aggressive scheme which has invested a majority of its assets in cyclical sectors compared with defensive sectors. It is a suitable scheme for appreciation of capital over the long term.

4. DSP Equity Opportunities Fund

Returns 1-Year (%) 3-Year (%) 5-Year (%)
DSP Equity Opportunities Fund 15.76% 10.92% 11.94%
Benchmark 12.06% 12.35% 9.61%

(Data as on November 08, 2019; Source: Value Research)

DSP Equity Opportunities Fund is a veteran large and mid cap fund which was launched in May 2000. The scheme has outperformed its benchmark during the last 5 year period by a margin of nearly 2%. It is an aggressive scheme which holds more of Finance and Energy sectors in its portfolio rather than defensive sectors like pharmaceuticals and fertilizers. The investors who are looking for a well-performing large and mid cap fund and have a relatively long time horizon must have DSP Equity Opportunities Fund in their portfolio.

5. SBI Large & MidCap Fund

Returns 1-Year (%) 3-Year (%) 5-Year (%)
SBI Large & MidCap Fund 10.70% 9.92% 10.66%
Benchmark 12.06% 12.35% 9.61%

(Data as on November 08, 2019; Source: Value Research)

SBI Large and Mid Cap Fund is one of the oldest large funds which joined the category in February 1993. The scheme has yielded an attractive return of 9.92% over the last 3 year period and almost mirrored its benchmark with return of 10.66% over the previous 5 year period. The scheme is more bullish on consumption-driven sectors than defensive sectors, the growth of which is not dependent on the nation’s economic growth. The scheme is one of the best large and mid cap funds for investors seeking a diversified scheme.

List of  Large & Midcap Funds in India

Fund Name AUM (Cr) 1-Year 3-Year 5-Year
Mirae Asset Emerging Bluechip Fund – Direct Plan 7,759 11.39% 11.76% 17.02%
DSP Equity Opportunities Fund – Direct Plan 5,166 8.42% 8.54% 12.10%
Aditya Birla Sun Life Equity Advantage Fund – Direct Plan 4,708 0.99% 3.66% 10.60%
Canara Robeco Emerging Equities – Direct Plan 4,669 4.00% 8.91% 14.24%
ICICI Prudential Large & Mid Cap Fund- Direct Plan 3,457 0.77% 6.09% 7.71%
IDFC Core Equity Fund – Direct Plan 2,678 1.36% 7.44% 10.44%
Nippon India Vision- Direct Plan 2,606 1.15% 3.44% 5.99%
SBI Large & Midcap Fund – Direct Plan 2,493 4.39% 6.79% 10.56%
Franklin India Equity Advantage Fund – Direct 2,467 0.08% 4.81% 8.11%
Kotak Equity Opportunities Fund – Direct Plan 2,488 8.42% 8.34% 11.84%
Principal Emerging Bluechip Fund – Direct Plan 2,057 2.28% 7.40% 13.46%
Invesco India Growth Opportunities Fund – Direct Plan 1,826 8.05% 12.04% 12.49%
Tata Large & Mid Cap Fund – Direct Plan 1,378 13.99% 8.33% 11.09%
L&T Large and Midcap Fund – Direct Plan 1,274 0.42% 6.30% 8.62%
HDFC Growth Opportunities Fund – Direct Plan 1,231 1.56% 5.75% 5.25%
UTI Core Equity Fund – Direct Plan 833 -2.40% 3.30% 6.21%
Axis Growth Opportunities Fund – Direct Plan 792
Sundaram Large and Mid Cap Fund – Direct Plan 721 9.99% 12.30% 12.56%
HSBC Large and Mid Cap Equity Fund – Direct Plan 609
LIC MF Large & Mid Cap Fund – Direct Plan 509 11.27% 10.02%
Edelweiss Large and Mid Cap Fund – Direct Plan 429 7.24% 9.05% 10.42%
BOI AXA Large & Mid Cap Equity Fund – Direct Plan 153 5.04% 4.89% 6.48%
Essel Large & Midcap Fund – Direct Plan 100 12.54% 8.74%
Quant Large and Mid Cap Fund – Direct Plan 4 -0.62% 5.01% 13.02%

The post Best Large & Midcap Funds appeared first on Compare & Apply Loans & Credit Cards in India- Paisabazaar.com.



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In the Market for a Home? Why a Conventional Loan Could Be Right for You

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Conventional sounds so… conventional.

But the traditional path to home ownership doesn’t have to be boring — especially if it could save you thousands of dollars over the life of your home loan.

Government-backed loans — like the Federal Housing Administration (FHA) or Veteran’s Administration (VA) — might get more attention for the low (or no) down payments, but the reality is that the more people get conventional loans when buying a home. 

Of the $1.63 trillion in first mortgages taken out in 2018, conventional loans claimed 45% of the market while FHA’s and VA’s combined share was 22.6%.

And although a government assistance program may seem like an easy way to home ownership, there’s a good chance that may not even be an option.

“At least a third of the people I work with are not eligible for assistance programs,” said Lisa Hamilton, an Accredited Financial Counselor and a counselor at the U.S. Department of Housing and Urban Development (HUD).

Since a home will probably be your biggest purchase, it’s in your best interest to understand how the loan works. Here’s what you need to know about a conventional home loan.

What Is a Conventional Loan?

At its most basic, a conventional loan is a mortgage that is not guaranteed or insured by any government agency.

The loans follow guidelines set by the Federal National Mortgage Association, aka Fannie Mae, and the Federal Home Loan Mortgage Corporation, aka Freddie Mac, two companies chartered by the U.S. government to help standardize mortgage lending.

A monthly mortgage payment has four basic components: principal, interest, taxes and insurance — also known as PITI.

Compare that to FHA loans, which are insured by the Federal Housing Administration, or VA loans, which are covered by the U.S. government. 

If a loan is backed by a government agency, the government will cover your loan if you stop paying it. But that comes at a price, compared to the cost of a conventional loan. Here’s how to decide whether a conventional loan is a better fit for you.

How Do You Qualify for a Conventional Loan?

As with any loan, there are metrics you must meet to qualify for a conventional loan. When you apply for a mortgage, your lender will consider your current income (verified via paycheck stubs, W2s and tax returns) and employment status, in addition to these other criteria.

1. Down Payment

If you’ve heard anything about conventional loans, it’s probably that you need to have a 20% down payment to get one. 

And although putting 20% down will still get you the best terms with the lowest interest and fewest fees, coming up with 20% for a $200,000 home would mean a home buyer would need to have $40,000 — plus additional money for closing costs, inspections and moving. That’s not an easy bar to clear for most first-time buyers.

To attract more customers, lenders have relaxed the 20% rule.

“The lending market has become more competitive, and banks have what they call ‘conventional mortgages’ with 5% down,” Hamilton said. “Or they may run a special and call it a conventional mortgage with 1% down.”

Pro Tip

Although you may be tempted to throw every last dollar toward the down payment, hold onto enough money for an emergency fund — home ownership often comes with unexpected expenses.

If you do decide to put less than 20% down, lenders will require you to add private mortgage insurance (PMI), which is added as a monthly premium to your mortgage payment. 

After you have reached 20% equity in your home, you can call you lender and ask to cancel the PMI (cancellation should happen automatically once you achieve 22% equity).

2. Credit Score

The minimum credit score for a conventional loan is 620 to 640, depending on your lender. However, if you want to take advantage of the lower down payment option, you should plan on raising your credit score as much as you can before you apply.

If you can put down 20% and raise your credit score before you apply for a loan, you’ll be able to snag even better interest rates and terms.

3. Debt-to-Income Ratio

Your debt-to-income ratio gives the lender an idea of how much of your income is going toward paying off your debt each month. 

A “good” DTI for housing is around 25% while the maximum is typically 43%, according to Brent Weiss, CFP and chief evangelist of Facet Wealth

However, lenders have been willing to go even higher, given the right circumstances, according to Hamilton.

“[Lenders] will make exceptions if you have a lot of cash reserves,” she said. “Some lenders are going as high as 55% DTI with those exceptions.”

FROM THE DEBT FORUM

How Much Can You Borrow? Conforming vs. Nonconforming Loans

Once you know whether you can qualify for a conventional loan, you’ll need to know how much you can borrow. 

For most people, that means applying for a conforming loan. This is a type of conventional loan that meets Freddie and Fannie requirements, so lenders prefer them and thus usually offer better interest rates.

In most of the United States, the maximum conforming loan limit for 2019 is $484,350 — you can find the maximum amount for your area on this conforming loan limits map.

Pro Tip

The majority of conventional loans are for 30 years, but it’s possible to qualify for a 15- or 20-year mortgage loan, which could save you money on interest in the long run.

If you want to borrow more than the limit, you can still get a conventional loan but it will be a non-conforming jumbo loan, which can go as high as $1 million to $2 million. You’ll typically need a combination of really high credit score, large down payment and/or low DTI to qualify.

If you’re considering a non-conforming loan, it’s essential to shop around for the best rates and terms — and always ask for a loan estimate before signing anything.

What Are the Benefits of a Conventional Home Loan?

If you can qualify for a conventional loan, you can save thousands over the life of your mortgage in a couple ways.

For one, although the smaller downpayment on an FHA or VA loan might look attractive initially, both of those loans come with higher fees because the government is assuming the risk if you default on the loan.

Additionally, you can cancel the PMI for a conventional loan when you reach 20% equity in your home. If you have an FHA, you’ll pay the insurance (aka Mortgage Insurance Premium) for the life of the loan, which can really add up over 30 years.

“If your mortgage insurance is $50, $75, $100 per month, that’s quite a bit of money,” Hamilton said. “Buyers need to be aware of that added cost and how it can affect their ability to pay off the loan for that home to become a good investment vehicle.” 

If you still decide to go with a government-backed loan — whether by choice or necessity — consider re-evaluating the conventional loan option in the future.

“If you go FHA, then plan to do that assessment every year, every couple of years,” Hamilton said. “Check in and decide, ‘Should I refinance? What’s the best long-term strategy?’”

Consider it conventional wisdom.

Tiffany Wendeln Connors is a staff writer/editor at The Penny Hoarder. Read her bio and other work here, then catch her on Twitter @TiffanyWendeln.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.



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529 College Savings Plans: All 50 States Tax Benefit Comparison (Updated 2019)

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Updated for 2019. When choosing a 529 college savings plan, you can open a 529 plan from any state. However, each state can vary widely in what they offer in terms of tax deductions and/or matching grants. 16 states offer no tax break on contributions and 7 states give you the same tax benefit no matter which 529 plan you pick. The remaining 27 states do offer some sort of tax benefit, so you’ll have to weigh your in-state benefits against the superior investment options from an out-of-state plan.

Morningstar has just published their 529 College-Savings Plan Landscape report for 2019, which included a state-by-state summary of the tax benefits:

They also have a new article When It Comes to 529s, How Good Is Your State’s Tax Benefit? that helps to quantify how good the tax benefit is, in terms of how many years of investment expenses it offsets for a theoretical household. More years (darker blue) is better:

These days, for the most part, if your state offers a tax benefit, it’s worth sticking with your in-state 529 plan as long as you are choosing the low-cost index fund “autopilot” options. The formerly “bad” plans have gotten closer the rest of the pack. You might still prefer another state plan for a specific investment option, I suppose.

They also updated this chart that quantifies tax benefits for a hypothetical family with a $60,000 income.

If you really like another state plan, you can look into their “recapture” rules as to what happens if you roll over your assets to another state plan later down the road after your initial contribution. Sometimes you can wait out the recapture period and then roll funds over to a better state 529 plan for free (once every rolling 12 months).

Again, if your state has no special tax break or it does “tax parity” – meaning it offers the same tax benefits for any 529 plan – then I would simply choose from this list of best nationwide 529 plans.



“The editorial content here is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone. This email may contain links through which we are compensated when you click on or are approved for offers.”

529 College Savings Plans: All 50 States Tax Benefit Comparison (Updated 2019) from My Money Blog.


Copyright © 2019 MyMoneyBlog.com. All Rights Reserved. Do not re-syndicate without permission.



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Direct v/s Regular Mutual Funds: Know the Difference

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Mutual Funds are available in two plans – Regular and Direct. While regular mutual fund plans are commonly-known to investors, direct mutual fund plans have started becoming popular recently.

What Is a Direct Mutual Fund Plan?

The Securities and Exchange Board of India (SEBI) introduced direct mutual fund plans in January 2013, making it mandatory for all Asset Management Companies (AMCs) to provide an option to invest in mutual fund schemes directly, without the involvement of an agent, broker or distributor, which is the case with regular mutual fund plans.

What Is the Difference Between Direct And Regular Plans?

Particulars Regular Plan Direct Plan
Expense Ratio High Low
Returns Low High
Investment Advice Available Not Available
Market Research Done by distributor/agent Done by self
Convenience More Less

Regular and Direct plans are just the two options to buy the same mutual fund scheme, run by the same fund managers who invest in the same stocks and bonds. The only difference between the two is that in the case of a regular plan your AMC (Asset Management Company) or mutual fund house does pay a commission to your broker as distribution expenses or transaction fee out of your investment, whereas in case of a direct plan, no such commission is paid.

Instead, in the case of direct plans the commission is added to your investment balance, thereby reducing the expense ratio of your mutual fund scheme and increasing your return over the long term.

To understand it better, let’s take an example. For instance, Mr. X and Mr. Y invested in three mutual fund schemes, namely HDFC Equity Fund, Aditya Birla Sun Life Liquid Fund and HDFC Balanced Advantage Fund via a monthly SIP of Rs. 5,000 for each scheme on 01 April 2014. While Mr. X chose the regular plans of these schemes, Mr. Y chose to invest in the direct plans.

Value of Mr. X’s and Mr. Y’s investments after 5 years.

Particulars/Schemes HDFC Equity Fund Aditya Birla Sun Life Liquid Fund HDFC Balanced Advantage Fund
Mr. X (Regular plan) Rs. 4,00,335 Rs. 3,63,967 Rs. 4,05,544
Mr. Y (Direct plan) Rs. 4,10,115 Rs. 3,64,837 Rs. 4,14,396
Difference Rs. 9,780 Rs. 870 Rs. 8,852

Here’s a comparative analysis of the average expense ratio and average returns of the direct and regular plans of mutual funds across different fund categories.

Average Expense Ratio of Regular and Direct Mutual Fund plans

Fund Category Regular Plan Direct Plan Difference
Equity 2.02% 1.22% 0.80%
Debt 0.90% 0.42% 0.48%
Hybrid 1.96% 0.98% 0.98%

Source: Value Research, Data as on March 31, 2019.

As the table above shows, on an average, you will earn 0.50%-1% more per annum by investing in a mutual fund scheme through its direct plan rather than its regular variant.

Why Is the Direct Plan of a Mutual Fund Better Than Its Regular Plan?

  • Lower expense ratio.
  • Higher return due to reinvestment and compounding of amount which gets paid as commission in regular mutual fund plans.

How To Know If You Are Invested In Regular Plans Or Direct Ones?

The account statement/fund holding statement will clearly state whether your mutual fund plan is regular or direct. Typically, if you have invested in a mutual fund scheme through your bank, then it would be a regular plan. If you have invested via the website of the mutual fund, the plan would be direct.

Also, if you are receiving a ‘free of cost’ service from your investment agent or if he/she tells you he/she is paid by the mutual fund company then in all likelihood you have invested in a regular mutual fund plan and are paying a hidden fee.

Also Read: How To Switch From Regular To Direct Mutual Funds?

The post Direct v/s Regular Mutual Funds: Know the Difference appeared first on Compare & Apply Loans & Credit Cards in India- Paisabazaar.com.



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