[SmartCat]

Originally Posted by sups

Can somebody guide me with respect to ICICI Prudential Value Discovery Fund? Once it was a very good fund, but it is not doing good from last few years. Is it better to switch to a better large cap/multi-cap funds place of this? I am looking at next 10 year horizon to stay invested.

Originally Posted by rovingeye

I switched out of this one a year back due to its lack of performance vis-a-vis the other funds in this category.

Originally Posted by ghodlur

I am still stuck with this dud and was highly recommended by my Financial planner. Even Value research online till last month was showing as a 4 star fund now downgraded to 3 star. I am having the SIP till Aug 2019. Should I stop the SIP and start in an alternative?

Going by ICICI Pru Value Discovery fund's portfolio, it seems to be a contrarian fund. That is, the fund manager has picked stocks that are out of flavor



While most mutual funds have stocks from financial and consumer sectors (HOT sectors), this fund mostly has stocks from pharma, IT and energy (ONGC, BPCL types). The average PE Ratio (it is a measure of value) of this fund is much lower than most mutual funds and even Nifty. Basically, the fund manager is staying true to his mandate. He is picking undervalued stocks in the market, hoping that markets will eventually discover the "value" in such stocks. However, for this strategy to work out, it takes time. That's why, in the last 3 years, this fund has underperformed its peers.

My recommendation:

- Hold on to this fund for a long, long time. This fund's investment strategy is very unique.
- Keep maximum 20% of your capital in this fund. Not more than that, because this fund's strategy can test your patience. If your allocation to this fund is more than 20% of your capital/portfolio, then either stop SIP or sell some units.

Quantum Long Term Equity Fund is another fund that has a similar strategy.
https://www.valueresearchonline.com/...chemecode=3181

[sups]

Originally Posted by SmartCat

My recommendation:

- Hold on to this fund for a long, long time. This fund's investment strategy is very unique.
- Keep maximum 20% of your capital in this fund. Not more than that, because this fund's strategy can test your patience. If your allocation to this fund is more than 20% of your capital/portfolio, then either stop SIP or sell some units.

Thanks a ton. The chart makes it very clear how this fund is different from other funds. I also now get a perspective why some financial planners bet on this fund for long term holding. However, its high weightage on Sun Pharma particularly has been criticized in many forums.

May I also ask your guidance on a multicap fund "Franklin India Equity Fund". Its been a long term performer in its category. But it seem to have lost its energy during the last few years.

[thoma]

Originally Posted by SmartCat

- Largecap or Large + Midcap or Multicap allocation

Originally Posted by SmartCat

The reason why small caps don't "maintain" their high valuation is because their earnings are usually not stable.

Was just going through the "fund category returns" in the valueresearch.com site, and I find that largecaps have gained much lower in the long run (5-10 years) when compared to smallcaps or even midcaps. I thought largecaps were a better bet over longer periods of holding.

[DigitalOne]

Originally Posted by sups

Thanks a ton. The chart makes it very clear how this fund is different from other funds. I also now get a perspective why some financial planners bet on this fund for long term holding. However, its high weightage on Sun Pharma particularly has been criticized in many forums.

The fund does require lots and lots of patience . Last year I lost patience and moved my entire holding in this fund to ICICI Prudential Nifty Next 50 (though the profile of the funds are not the same). I am not regretting it (yet ). Everybody has to make their own calls.

The fund had 10-11% in Sun Pharma and now brought it down to 7-8%... If the fund had such conviction in Sun Pharma it should have retained its high exposure. I find it a little hypocritical.

[SmartCat]

Originally Posted by sups

May I also ask your guidance on a multicap fund "Franklin India Equity Fund". Its been a long term performer in its category. But it seem to have lost its energy during the last few years.

Unable to figure out why this fund has underperformed. Perhaps they had a few accidents in their midcap and smallcap pickings. But don't sell it off and buy something else because this fund has been around since 1994 and has returned 18% CAGR. I don't think such active management of equity mutual funds (buying/selling) results in any significant gains from overall returns point of view.

If you don't like this fund, just stop investing incremental capital into this fund rather than sell out.

Originally Posted by thoma

Was just going through the "fund category returns" in the valueresearch.com site, and I find that largecaps have gained much lower in the long run (5-10 years) when compared to smallcaps or even midcaps. I thought largecaps were a better bet over longer periods of holding.

In a bull market, mid and smallcap funds will show higher returns than a largecap fund. But in a bear market, mid and smallcap funds will bleed much more than largecap funds and might even show lower returns than a largecap fund. So it all depends on which date range you are choosing for comparing returns.

Let the fund manager take decisions instead, and invest in multicap funds.

[thoma]

Originally Posted by SmartCat

In a bull market, mid and smallcap funds will show higher returns than a largecap fund. But in a bear market, mid and smallcap funds will bleed much more than largecap funds and might even show lower returns than a largecap fund. So it all depends on which date range you are choosing for comparing returns.

I was trying to figure out if largecaps average out better over the long term.

Here I took data from Value Research home page for the last 1, 3, 5 and 10 years.

[sups]

Originally Posted by SmartCat

Unable to figure out why this fund has underperformed. Perhaps they had a few accidents in their midcap and smallcap pickings. But don't sell it off and buy something else because this fund has been around since 1994 and has returned 18% CAGR. I don't think such active management of equity mutual funds (buying/selling) results in any significant gains from overall returns point of view.

If you don't like this fund, just stop investing incremental capital into this fund rather than sell out.

Thanks again. No, I am definitely not quitting, in fact I will keep reinvesting in this.

[kvish]

Originally Posted by SmartCat

Going by ICICI Pru Value Discovery fund's portfolio, it seems to be a contrarian fund. That is, the fund manager has picked stocks that are out of flavor

Quantum Long Term Equity Fund is another fund that has a similar strategy.
https://www.valueresearchonline.com/...chemecode=3181

Quantum Long term Equity and ICICI Value discovery are my biggest holdings for a while now. With both these lagging for a while, I am really thinking if it makes sense to switch. I'll probably wait for another 6-12 months to decide. The returns from similar funds of Mirae Asset Management are way more in comparison.

[SmartCat]

Originally Posted by kvish

Quantum Long term Equity and ICICI Value discovery are my biggest holdings for a while now. With both these lagging for a while, I am really thinking if it makes sense to switch. I'll probably wait for another 6-12 months to decide. The returns from similar funds of Mirae Asset Management are way more in comparison.

Depending on how much those big holdings add up to in percentage terms, take action right now. Allocate maximum 20% to "value investing" strategy.

[hothatchaway]

Originally Posted by thoma

I was trying to figure out if largecaps average out better over the long term.

Here I took data from Value Research home page for the last 1, 3, 5 and 10 years.

Did you do this analysis with a specific start and end date? i.e the start date being lets say Jan xx 2009 and choosing dates 3,5 and 10 years hence?

I feel that rolling returns with very short intervals (1-3 days) over 3, 5 and 10 year periods will smooth out the anomalies and provide a more accurate picture.

[speed_edge]

Folks,
Need help - I'm very bad at investment as I dont have any till date. Opened a new Zerodha account and looking to start MF SIPs. I'm thinking to start as below.

1) L&T Midcap fund - 25%
2) HDFC Small cap fund - 20%
3) Frankling India focused equity - 20%
4) ICICI Pru value discovery fund - 15% (Thanks to the discussions here, though under performing as suggested thought to have this)
5) Gold - 20% - Any good gold rate attached MF suggestion?

I'm not in need of any immediate liquidity and looking to be investment for say 3-5Yrs. Please review and suggest better alternative if any.

Thanks in advance.
Regards
SE

[Moto_Hill]

How many of you get the monthly consolidated statement from CDSL without missing on any of the funds/Stocks?


My statement doesn't reflects one of my investments in Sundaram MF.

[skchettry]

Originally Posted by Moto_Hill

How many of you get the monthly consolidated statement from CDSL without missing on any of the funds/Stocks?


My statement doesn't reflects one of my investments in Sundaram MF.

I get it regularly with no funds missing. Since I get two statements every month, I believe, it is linked to PAN and also the mode of holding. I have two modes - one is single and the other is Either or Survivor type.
Regards
Sravan

[altius]

Please try this url for consolidated mutual fund account statement. It will cover Karvy, Cams, Franklin Templeton & Sundaram MF serviced funds, which practically would be most of the funds.

https://karvymfs.com/investor/Genera...countStatement

[altius]

For a first time investor, you picks are quite aggressive with 65% in midcap, small cap & focussed equity. These are high risk & high reward category of funds. The major part of your portfolio should be in Large Caps, Value & Multicaps with a smaller portion for Mid & Small caps. Gold need not be more than 10% and you can choose any of Gold ETFs.
The asset allocation & fund selection depends on one's risk profile & appetite. Generally we tend to over-estimate our risk capacity till we find our portfolio down 20%! :-) Also please do not do any lumpsum in Equity mutual funds at this point of time when the markets are at near lifetime highs.
I suggest you consult with a Fee Only Investment Advisor (not Mutual Fund Distributors) and get your investment strategy in place.

You can also read from valueresearchonline.com.

Hope this helps.

Originally Posted by speed_edge

Folks,
Need help - I'm very bad at investment as I dont have any till date. Opened a new Zerodha account and looking to start MF SIPs. I'm thinking to start as below.

1) L&T Midcap fund - 25%
2) HDFC Small cap fund - 20%
3) Frankling India focused equity - 20%
4) ICICI Pru value discovery fund - 15% (Thanks to the discussions here, though under performing as suggested thought to have this)
5) Gold - 20% - Any good gold rate attached MF suggestion?

I'm not in need of any immediate liquidity and looking to be investment for say 3-5Yrs. Please review and suggest better alternative if any.

Thanks in advance.
Regards
SE