Equity Funds invests entirely in Stocks of different Sectors based on the type of scheme.
Taxation in Equity MFs: If you withdraw your amount within 1 year, then there will be 15% tax on Capital Gains only. But if you withdraw after 1 year, then there will be 10% tax only on your gains/profit are more than INR 1,00,000, otherwise No Tax. No lock-in Period except in case of ELSS.
1) Large Cap Fund: Mutual Fund schemes invests in top 100 listed companies by size which have a market capitalization of more than 20,000 Cr. These stocks yield regular dividends in a year and lesser riskier than Mid & Small Cap Fund but slower in growth. Recommended duration is 3-4 Years at-least.
Stocks like Reliance Industries, HDFC Bank, Eicher Motors, Dabur India, Equitas Holdings, Kotak Mahindra Bank, Pidilite Industries, Berger paints, Sudarshan Chemical industries, Bayer Cropscience Ltd., etc.
Examples:
UTI Mastershare Unit Scheme
Canara Robeco Bluechip
Equity Fund
HDFC Top 100 Fund
2) Mid Cap Fund: These Mutual Fund schemes invests in Stocks that ranked between 100 to 250 by market capitalization (size) which tend to offer greater growth potential than Large Cap stocks, but with less volatility and risk than Small cap stocks. Recommended duration is 7 years at-least.
Stocks like Supreme Industries, The Ramco Cements, Phoenix Mills, Canara Bank, Macrotech Developers, Zee Entertainment Enterprises, Sumitomo Chemical India, Prestige Estate Projects, Bank of India, etc.
Examples:
Nippon
India Growth Fund
Taurus Discovery Fund
3) Small Cap Fund: These MF Schemes invests at least 65% of their portfolio in publicly traded Companies (250 to 500 ranked) that have a market capitalization ranging less than 5000 Cr. These are much riskier and recommended to keep invest for longer duration (more than 5 years).
Stocks like CDSL, Galaxy Surfactants, Dixon
Technologies, Indian Energy Exchange, MCEI, Can Fin Homes, Craftsman
Automation, UTI Asset Management Co. Pvt. Ltd., etc.
Examples:
IDFC
Emerging Business Fund
Franklin
India Smaller Companies Fund
4) Large & Mid Cap Fund: These Mutual Fund Schemes invests in top 200 listed Companies in Stock Market Indices whose Market Capitalization is not less than 5000 Cr.
Stocks like Voltas Ltd., Navin Fluorine
International, Abbott India, LIC Housing Finance, Kensai Nerolac Paints, Pi
Industries, etc.
Examples:
Kotak
Equity Opportunities Fund
UTI
Core Equity Fund
Principal Emerging Bluechip Fund
5) Multi Cap Fund: These mutual fund schemes that invests in diversified company stocks of different capitalization with SEBI recommendation of minimum 25% each segment (Large, Mid & Small Caps).
Stocks like Zomato, Metropolis Healthcare, Linde India, Motherson Sumi Systems, TVS Motors, etc.
Examples:
Edelweiss Recently Listed IPO Fund
Sundaram Equity Fund
6) Flexi Cap Fund: These MF schemes have freedom to allocate your funds in portfolio of socks in any segment of the cash market across companies of different market capitalization.
Stocks like KIMS, Oberoi Realty, Birla Corporation, Chambal Fertilizers, KEI Industries, Bharat Rasayan, Balrampur Chini mills, etc.
Examples:
PGIM India Flexi Cap Fund
Union Flexi Cap Fund
7) Focused Fund: A Mutual Fund Scheme which
holds a concentrated Portfolio of limited number of stocks maximum of 30
considered to be qualitative.
Stocks
like SRF, Bajaj Finance, Sona BLW Precision Forgings, 3M India, Vedanta, United
Spirits, etc.
Examples:
IIFL
Focused Equity Fund
Axis
Focused 25 Fund
8) Dividend Yield Fund: These are type of mutual funds that invest mostly in companies that have the potential to provide regular dividend pay-out.
As per the norms of the Securities and Exchange Board of India (SEBI), a dividend yield fund invests at least 65% of its portfolio in dividend-yielding instruments.
Stocks like Coal India, Power Finance Corporation, Bharat Electronics, GAIL, Finolex Cables, Balkrishna Industries, etc.
Examples:
Principal Dividend Yield Fund
HDFC Dividend Yield Fund
9) Value Fund: These Mutual Fund Schemes focuses on investing in stocks based on fundamental characteristics that are undervalued in quality due to temporary factors and will provide higher returns compared to peers once valuation is at par.
Quality fund managers are looking for shares that are valued below their actual value for different reasons.
Stocks like Minda industries, Emami Ltd., Mphasis, Mindtree, Apollo Tyres, Shriram Transport Finance, etc.
Examples:
IDFC
Sterling Value Fund
Templeton India Value Fund
10)Contra Fund: Invest in Stocks which are performing against the prevailing market trends by buying assets that are either under-performing or depressed at that point in time.
Stocks like Tube investments, Carborundum Universal, MTAR Technologies, Persistent Systems, Kajaria Ceremics, etc.
Examples:
Kotak India EQ Contra Fund
SBI Contra Fund
11)ELSS Fund: These are close-ended mutual funds, with a lock-in period of 3 years. They offer tax benefits under the Section 80C of Income Tax Act.
Examples:
BOI
AXA Tax Advantage Fund
UTI Long
Term Equity Fund
12) Business Cycle Fund: these MF schemes invest in nature of Stocks that do well in one cycle (boom and recovery phase) changes in another cycle (depression and recession phase) based on economic trends similar to seasons weather.
Stocks like Hindalco industries, Deepak Nitrate, Timken India, Ratnamani Metals & Tubes, etc.
Examples:
Tata Business Cycle Fund
L&T Business Cycle Fund
13) Pharma Healthcare and Diagnostic Fund: These Mutual Funds invest in Pharmaceutical Companies and Diagnostic Clinics.
Stocks such as Sun Pharmaceutical, Ipca Laboratories, Sanofi India, Torrent Pharma, Apollo Hospitals, Aurobindo Pharma, Gland Pharma, etc.
Examples:
ICICI
Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund
IDBI
Healthcare Fund
14) Banking & Financial Services Fund: Mutual Funds whose asset allocation invested in Indian Banks.
The Indian banking system consists of 27 public sector banks, 26 private sector banks, 56 regional rural banks, 46 foreign banks, 93,913 rural cooperative banks and 1,574 urban cooperative banks, in addition to cooperative credit institutions.
Bank & Financial Institution Stocks like HDFC, ICICI, Kotak Mahindra, SBI Life, Federal, Manappuram Finance, SBI Cards and Payments Services, etc.
Examples:
HDFC Banking and Financial Services Fund
SBI
Banking & Financial Services Fund
15) Technology Fund: Mutual Funds that predominantly invest in IT sector which are emerging with new innovations.
Stocks like TCS, HCL, Tech Mahindra, Infosys, Firstsource Solutions, etc
Examples:
Aditya Birla Sun Life Digital India Fund
Franklin
India Technology Fund
16)ESG Fund: These funds whose asset allocation mostly includes shares and bonds of companies that are evaluated based on the factors of environmental, social, and governance which are more conscious of pollution control and climate change.
Stocks such as Avenue Supermarts, Havells India, Tata Communications, Bajaj Finance, etc.
Examples:
Axis
ESG Equity Fund
Kotak ESG Opportunities
Fund
17) MNC Fund: These funds invest in Multinational Companies whose businesses drew revenue from overseas operations or via exports to foreign countries.
Stocks – Honeywell Automation India, Whirlpool,
Verizon Communications Inc., Lupin, etc.
Examples:
UTI
MNC Fund
SBI
Magnum Global Fund
18) Global Fund: These Mutual funds invest in companies that trade in international
market across the world indices.
International Stocks – Samsung Electronics,
Alibaba Group holding, Alphabet Inc, Microsoft Corp, Facebook, Shimadzu
Corporation, Daikin Industries, etc.
Examples:
Nippon India Japan Equity Fund
ICICI
Prudential US Bluechip Equity Fund
Franklin Asian Equity Fund
19) Infrastructure Fund: Mutual funds concentrate their portfolio majorly towards equity shares of the companies involved in infrastructure development in the country.
Stocks
such as Ultratech Cement, Larsen & Toubro, KNR Constructions, PNC
Infratech, Schaeffler India, etc.
Examples:
DSP
India T.I.G.E.R Fund
Kotak
Infrastructure and Economic Inform Fund
20) Quant Fund: Special kind of mutual funds whose asset allocation, including stock picking, is dependent on an automated system to make decisions pertaining to the portfolio decided based on a predefined set of rules. Fund Managers do not have any role.
This
makes use of computer-based and mathematical quantitative models to invest in
stocks.
Quant-based
mutual funds have an edge over both index funds and ETFs (Exchange traded
funds).
Examples:
Quant Quantamental Fund
DSP
Quant Fund
21) Consumer Fund: MFs invest in consumption-oriented sectors which are Automobiles, FMCG (Fast-moving Consumer Goods), Consumer Durables, Telecom, Financial Services, etc.
Thus, these funds invest in consumer-facing companies that produce goods or offer services used by many consumers.
Stocks such as ITC Ltd, United Spirits, Britannia Industries, Marico Ltd., Hindustan Unilever, etc.
Examples:
Mirae Asset Great Consumer Fund
Sundaram Rural
& Consumption Fund
22) Commodity Fund / Natural
Resources, Power & Energy Fund:
Mutual Fund that invest in trade of particular type of commodity.
Commodity types are
a) Natural Resources Funds like Oil, Minerals, Gold, Silver and other
natural renewable energy companies like solar & wind energy.
b) Basic True Commodity Funds have major exposure in Metals which are
Physical Assets.
c) Future Funds are riskiest which Fund manager takes a call on Future
Trading of the Commodity.
d) Combination Funds follow a combined strategy of
investing in basic commodities and commodity futures. The futures offer a
chance to earn good returns while the basic commodity investing helps to bring
down the volatility.
e) Index Funds are Passively Managed where one directly
buys the commodity on the standard prevailing rates based on the Benchmark.
Stocks
like Petronet LNG, Indraprastha Gas, HPCL, Godavari Power & Ispat Ltd., Hindustan
Copper, National Aluminium co. Ltd., etc.
Examples:
ICICI
Prudential Commodities Fund
DSP Natural
Resources and New Energy Fund
23) PSU Equity Fund: These hold stocks of Public Sector Units owned by Government.
Stocks like NTPC,
BPCL, SBI, CCI, etc.
Examples:
Aditya Birla Sun Life PSU Equity Fund
24)Ethical Fund: These are Sharia-Compliant
Mutual Funds abide by social responsible investing especially for Muslims who
wants to invest within boundaries of Islamic laws.
That
means, these funds forbid investments in businesses
that generates a major portion of its income by selling alcohol, tobacco, pork,
weapons and other military equipment, gambling and pornography.
These funds tend to avoid immoderate levels of risks.
Derivatives and companies with high debts are not included. These funds
avoid investment in fixed-income instruments.
Stocks like Siemens, Sundaram Fasteners, Century Plyboards, Akzo Nobel India, Grasim industries, Cera Sanitaryware, Thermax, Bata India, Bosch, Relaxo Footwares, etc.
Examples:
Tata Ethical Fund
Taurus Ethical Fund
25) Transport & Logistics Fund: These MF schemes invest in Automobile,
Auto OEMs & Logistics Sectors which have good growth opportunities and
promising income.
Stocks like VRL Logistics, Great Eastern Shipping Co. Ltd., InterGlobe Aviation, Jamna Auto Inds., Escorts Ltd., etc.
Example: UTI Transportation and Logistics Fund
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