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Guide to select Mutual Funds Portfolio2017 MOBILE FRIENDLY EBOOK
www.groww.in
DISCLAIMER:
Mutual Funds are subject to market risk.This is based on historical data and our analysis.Please read the offer documents carefully before investing.
Historydoes notrepresentfuture
CONTENTS
Goal of this guide 4
Ready Made Portfolios
Tax Saver ELSS Portfolio 6
5
Best SIPs for 2017 8
SIPs of `1000 for 20 Years 10
Better than Fixed Deposit 12
Kids Education In 10 Years 14
Portfolio for Best Retirement 16
High Risk High Returns 18
Generate Monthly Income 20
Do-It-Yourself Portfolios 22
Build your DIY Portfolio 23
Category Selection 24
Fund Selection 25
Balanced - hybrid 26
Large Cap - equity 27
Multi Cap - equity 28
Mid Cap - equity 29
Small Cap - equity 30
Groww 5 Star 31
Groww
GOAL OF THIS GUIDE
4
Ready MadeMF PortfoliosTO GET STARTED
Do-It-Yourself (DIY)MF PortfoliosSELECTION GUIDE
To help you pick funds and build your portfolio from set of good funds.
Groww
A portfolio is basket of mutual funds put together to achieve investment needs.
It’s divided into two parts:
Ready MadePortfolios
TO GET STARTED
Tax SaverELSS Portfolio
6
33%
EQUITY TAX
Reliance Tax Saver (ELSS) Fund
33%
EQUITY TAX
ICICI Prudential Long Term Equity Fund
33%
EQUITY TAX
DSP BlackRock Tax Saver Fund
TAX SAVINGEQUITY LOCK-IN
SIPIdeal way
5+ yrsIdeal DurationRisk
High ` 1,500Min SIP Amt
Invest in this - if you want to save tax under section 80C. Both the investments and returns are tax exempt upto limit of 1.5L under section 80C.
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7
Returns As on Apr 17, 2017
1Yr
27%3Yr
23%5Yr
21%Avg.
15%
A SIP of Rs 10,000 per month would approximately generate around 26 Lac after 10 years (assuming 15% annualized returns)
PROS CONS
Consistent High ReturnsTax saving upto 1.5 LacMin SIP is Low
Lock-in for 3 yearsRisk is High
3Yr From Mar 30, 2014 To Mar 30, 2017
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
-25%
0%
+ 25%
+ 50%
+ 75%
PORTFOLIO BENCHMARK
TAX SAVER ELSS PORTFOLIO
Groww
Best SIPsfor 2017
8
20%ICICI Prudential Balanced Fund
HYBRID EQUITY ORIENTED
20%Birla Sun Life Equity Fund
EQUITY MULTI CAP
20%Mirae Asset India Opportunities
EQUITY LARGE CAP
20%Principal Emerging Bluechip Fund
EQUITY MID CAP
20%Reliance Small Cap Fund
EQUITY SMALL CAP
LONG TERMEQUITY SIP
`` `
`` `
``
SIPIdeal way
10+ yrsIdeal DurationRisk
High ` 10,000Min SIP Amt
Invest in this - if you haven’t decided the purpose but want to invest for long term. Consists of 4 equity mutual funds and 1 hybrid fund.
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BEST SIPS FOR 2017
9
Returns
1Yr
33%3Yr
27%5Yr
24%Avg.
18%
A SIP of Rs 10,000 per month would approximately generate around 1.3 Cr after 20 years (assuming 15% annualized returns)
PROS CONS
Consistent High ReturnsFully DiversifiedNo Lock-in
Risk is HighHigh Minimum SIP
As on Apr 17, 2017
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
-25%
0%
+ 25%
+ 50%
+ 75%
+ 100%
3Yr From Apr 12, 2014 To Apr 12, 2017 PORTFOLIO BENCHMARK
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SIPs of `1000 for 20 Years
10
SIP LONG TERMEQUITY ` 1000
1K 1K 1K
` ` `
SIPIdeal way
10+ yrsIdeal Duration
` 1,000Min SIP AmtRisk
High
Invest in this - if you want to invest very small amount per month. This portfolio diversifies your investment across two high quality equity funds for good long term return.
50%
EQUITY MID CAP
L&T India Value Fund
50%
EQUITY LARGE CAP
Mirae Asset India Opportunities
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SIPS OF `1000 FOR 20 YEARS
11
Returns
1Yr
30%3Yr
27%5Yr
23%Avg.
21%
A SIP of Rs 1,000 per month would approximately generate around 13 Lac after 20 years (assuming 15% annualized returns)
PROS CONS
Consistent High ReturnsLow Min SIPNo Lock-in
Risk is HighConcentrated
As on Apr 17, 2017
3Yr From Apr 10, 2014 To Apr 10, 2017 PORTFOLIO BENCHMARK
-25%
0%
+ 25%
+ 50%
+ 75%
+ 100%
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
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Invest in this - if you want a superior alternative to FD. This portfolio is better compared to FD because of better returns, better liquidity and better tax implications at the cost of low risk.
Better than Fixed Deposit
12
```
LOW RISKDEBT FDSHORT TERM
LumpsumIdeal way
1+ yrsIdeal Duration
` 1,000Min AmountRisk
Very Low
50%
DEBT ULTRA SHORT TERM
Franklin India Low Duration Fund
50%
DEBT SHORT TERM
HDFC Short Term Opportunities Fund
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BETTER THAN FIXED DEPOSIT
13
A investment of Rs 1 Lac would become ~2.35 Lacs after 10 yrs compared to 1.95 Lacs in FD (assuming 9% annualized returns)
PROS CONS
Higher ReturnsVery Low RiskNegligible Tax after 3 yrs
ConcentratedSlightly Risker than FD
Returns As on Apr 17, 2017
1Yr
9.2%3Yr
9.5%5Yr
9.5%Avg.
8.7%
1Yr From Apr 2, 2016 To Apr 2, 2017 PORTFOLIO BENCHMARK
-2.5%
0%
+ 2.5%
+ 5%
+ 7.5%
May '16 Jul '16 Sep '16 Nov '16 Jan '17 Mar '17
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Kids EducationIn 10 Years
14
HYBRID MODERATE RISK
SIPIdeal way
10+ yrsIdeal Duration
` 3,500Min SIP AmtRisk
ModeratelyHigh
33%
HYBRID EQUITY ORIENTED
ICICI Prudential Balanced Fund
33%
EQUITY MULTI CAP
Kotak Select Focus Fund
33%
EQUITY LARGE CAP
Quantum Long Term Equity Fund
Invest in this - if you are a young parent and want to save for your kids education. It is equity oriented portfolio with time horizon of 10 years.
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KIDS EDUCATION IN 10 YEARS
15
Returns
1Yr
26%3Yr
20%5Yr
19%Avg.
15%
A SIP of Rs 10,000 per month would approximately generate around 26 Lacs after 10 years (assuming 15% annualized returns)
PROS CONS
Consistent High ReturnsFully DiversifiedLow Min SIP
Moderately High Risk
As on Apr 17, 2017
3Yr From Mar 21, 2014 To Mar 21, 2017 PORTFOLIO BENCHMARK
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
-25%
0%
+ 25%
+ 50%
+ 75%
Groww
20%Mirae Asset India Opportunities
Fund EQUITY LARGE CAP
20%DSP BlackRock Small and Midcap
Fund EQUITY MID CAP
20%Principal Emerging Bluechip Fund
EQUITY MID CAP
20%Reliance Small Cap Fund
EQUITY SMALL CAP
20%Birla Sun Life Equity Fund
EQUITY MULTI CAP
Invest in this - if you want a comfortable retirement or want to quit your job early. This portfolio will build significant wealth for you till your retirement. Consists of 5 equity mutual funds.
Portfolio for BestRetirement
16
LONG TERMHIGH RISKEQUITY
SIPIdeal way
10+ yrsIdeal Duration
` 10,000Min SIP AmtRisk
High
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BEST RETIREMENT PORTFOLIO
17
Returns
1Yr
36%3Yr
29%5Yr
25%Avg.
19%
A SIP of Rs 10,000 per month would approximately generate around 1.3 Crores after 20 years (assuming 15% annualized returns)
PROS CONS
Consistent High ReturnsFully Diversified
Risk is HighHigh Minimum SIP
As on Apr 17, 2017
3Yr From Apr 12, 2014 To Apr 12, 2017 PORTFOLIO BENCHMARK
-50%
0%
+ 50%
+ 100%
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
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High RiskHigh Returns
18
`
LONG TERM HIGH RISKEQUITY
SIPIdeal way
5+ yrsIdeal Duration
` 10,000Min SIP AmtRisk
High
SIP
Invest in this - if you don’t mind taking risk. Invests mainly in small cap, mid cap and sectoral funds to get high returns. However, there is a significant chance to lose capital.
20%L&T India Value Fund
EQUITY MID CAP
20%Principal Emerging Bluechip Fund
EQUITY MID CAP
20%Reliance Small Cap Fund
EQUITY SMALL CAP
20%Kotak Emerging Equity Scheme
EQUITY SMALL CAP
20%UTI Transportation and Logistics
EQUITY SECTOR AUTO
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HIGH RISK HIGH RETURNS
19
Returns
1Yr
36%3Yr
33%5Yr
28%Avg.
30%
A SIP of Rs 10,000 per month would approximately generate around 29 Lacs after 10 years (assuming 18% annualized returns)
PROS CONS
Consistent High ReturnsDiversifiedNo Lock-in
Risk is Very HighHigh Minimum SIP
As on Apr 17, 2017
3Yr From Apr 12, 2014 To Apr 12, 2017 PORTFOLIO BENCHMARK
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
-50%
0%
+ 50%
+ 100%
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Generate MonthlyIncome
20
ZERO EXIT LOADLOW RISKDEBT
Invest in this - if you have large amount to invest and you want regular monthly income from your investments. This is mainly a debt portfolio.
LumpsumIdeal way
1+ yrsIdeal Duration
` 1,000Min AmountRisk
Very Low
`
50%
EQUITY ULTRA SHORT TERM
JM Floater Long Term Fund
50%
EQUITY ULTRA SHORT TERM
BOI AXA Treasury Advantage
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GENERATE MONTHLY INCOME
21
Returns
1Yr
9.2%3Yr
9.5%5Yr
9.5%Avg.
8.7%
A investment of Rs 1 Lac would become ~2.35 Lacs after 10 yrs compared to 1.95 Lacs in FD (assuming 9% annualized returns)
CONSPROS
Higher ReturnsVery Low RiskZero Exit Load
ConcentratedLimited Returns
As on Apr 17, 2017
3Yr From Apr 10, 2014 To Apr 10, 2017 PORTFOLIO BENCHMARK
-10%
0%
+ 10%
+ 20%
+ 30%
Jul '14 Jan '15 Jul '15 Jan '16 Jul '16 Jan '17
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DIYPortfolios
SELECTION GUIDE
Groww 23
Build your DIY Portfolio in
2 simple steps
Category SelectionCategory Selection is more important
than selecting a Mutual Fund. Categories align with your goals or purpose.
Fund SelectionWe can’t predict future.
Increase probability of higher returns by selecting good mutual funds.
1. Category Selection
24
MIDrisk
ShortTermDEBT
Balanced
HYBRID
Large /MultiEQUITY
Mid /SmallEQUITY
HIGHrisk
LongTermDEBT
Large /MultiEQUITY
Mid /SmallEQUITY
As time increases, risk goes down
BETS
Large /Multi
Mid /Small
EQUITY EQUITY
Sector Sector
EQUITY EQUITY
Liquid /UST
ShortTerm Balanced Large /
MultiDEBT DEBT HYBRID EQUITY
<1 yr 1-3 yr 3-5 yr 5+ yr
Duration in years
LOWrisk
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Shortlist funds based on important parameters.
Parameters depend on a category
2. Fund Selection
25
RETURNS should be significantly higher than its
category benchmark
ASSET UNDER MANAGEMENT should not be too low
or too high
AGE should have enough history to evaluate
performance
EXPENSE RATIO should not be very high
TRACK RECORD of beating the benchmark
consistently in the recent past
SHARPE RATIO (for equity) should be signifianctly
higher than the benchmark
DEBT RATING (for debt) should be atleast AA
Fund should be TRUE TO ITS CATEGORY
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BalancedHYBRID
3Yr Ret
20.3%HDFC Balanced Fund
3Yr Ret
19.9%ICICI Prudential Balanced Fund
Benchmark: CRISIL Balanced Fund As on Apr 17, 2017
Selection Method
AGE
26
3Yr Ret
19.9%Birla Sun Life Balanced 95
At least 2% more than benchmark for 1Y, 3Y and 5Y duration
Beat benchmark at least 7 times in last 10 quarters
` 1k Cr to ` 15K Cr
At least 5 years
Lower than 2.5%
> 1.2 (1.2x of benchmark)
60% in Equity
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Large CapEQUITY
SBI Bluechip Fund3Yr Ret
20.5%
3Yr Ret
21.4%Mirae Asset India Opportunities
Benchmark: Nifty 200 As on Apr 17, 2017
Selection Method
AGE
27
3Yr Ret
17.0%Quantum Long Term Equity Fund
At least 2% more than benchmark for 1Y, 3Y and 5Y duration
Beat benchmark at least 7 times in last 10 quarters
` 500 Cr to ` 15K Cr
At least 5 years
Lower than 2.5%
> 0.9 (1.2x of benchmark)
80% in Large Cap
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Multi CapEQUITY
3Yr Ret
26.4%Franklin High Growth Companies
Benchmark: Nifty 500 As on Apr 17, 2017
Selection Method
AGE
28
3Yr Ret
24.7%SBI Magnum Multicap Fund
3Yr Ret
24.4%Birla Sun Life Equity Fund
At least 3% more than benchmark for 1Y, 3Y and 5Y duration
Beat benchmark at least 7 times in last 10 quarters
` 500 Cr to ` 10K Cr
At least 5 years
Lower than 2.5%
> 1.0 (1.2x of benchmark)
60% in Large Cap
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Mid CapEQUITY
Benchmark: Nifty Free Float Midcap 100
3Yr Ret
35.2%*Mirae Asset EmergingBluechip
* Only accepting SIP upto 25k
As on Apr 17, 2017
Selection Method
AGE
29
3Yr Ret
31.3%Principal Emerging Bluechip Fund
At least 5% more than benchmark for 3Y and 5Y duration
At least 7 times beat benchmark in last 10 quarters
` 200 Cr to ` 5K Cr
At least 5 years
Lower than 2.7%
> 1.2 (1.1x of benchmark)
80% in Mid and Large Cap
3Yr Ret
31.8%L&T India Value Fund
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Small CapEQUITY
Benchmark: S&P BSE Small Cap
3Yr Ret
38.3%Reliance Small Cap Fund
As on Apr 17, 2017
Selection Method
AGE
30
3Yr Ret
35.2%Kotak Emerging Equity Scheme
At least 5% more than benchmark for 1Y, 3Y and 5Y duration
At least 7 times beat benchmark in last 10 quarters
` 200 Cr to ` 5K Cr
At least 5 years
Lower than 2.7%
> 1.4 (1.2x of benchmark)
80% in Small and Mid Cap
3Yr Ret
35.7%Sundaram SMILE Fund
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Groww 5 Star
31
LiquidLiquid
Debt USTDebt UST
Debt ShortDebt Short
Debt Dynamic
Hybrid Equity OrientedHybrid Equity OrientedHybrid Equity Oriented
Equity LargeEquity LargeEquity Large
Equity MidEquity MidEquity Mid
Equity SmallEquity SmallEquity SmallEquity MultiEquity MultiEquity MultiEquity ELSSEquity ELSSEquity ELSS
Equity ConsumptionEquity Auto
Equity ConsumptionEquity Commodities
Equity BankingEquity Infra
Equity Pharma
FUNDS CATEGORY
Tata Liquid FundKotak Floater Short Term
Franklin India Low Duration FundICICI Pru Flexible Income PlanFranklin India STIPHDFC Short Term Opportunities FundICICI Pru Long Term Plan
ICICI Pru Balanced FundHDFC Balanced FundBirla Sun Life Balanced 95
SBI Bluechip FundMirae Asset India OpportunitiesQuantum Long Term Equity FundMirae Asset Emerging Bluechip L&T India Value FundPrincipal Emerging Bluechip FundReliance Small Cap FundSundaram SMILE FundKotak Emerging Equity Scheme Birla Sun Life Equity FundFranklin India High Growth Companies FundSBI Magnum Multicap FundReliance Tax Saver (ELSS) FundDSP Blackrock Tax Saver FundICICI Prudential Long Term Equity FundSundaram Rural India FundUTI Transportation and Logistics Birla Sun Life India GenNext FundDSP BlackRock Natural Resources & New EnergyICICI Prudential Banking & Financial Services FundFranklin Build India FundReliance Pharma Fund
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That’s allThank you for reading
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