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POSTED BY ON November 23, 2010 8:00 pm COMMENTS (8)
Friends,
With couple of NFO open for Capital Protection Oriented Fund, any suggestions on the investment horizon and the returns. Any specifics to be aware of?
I am 38 and planning to be invested for atleast 3 years.
Regards,
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Capital protection? Limited upside. Avoid
Well look at this one from Sundaram Document
http://www.sundarammutual.com/pdf2/SID/FTP/SID-Capital_Protection_Series_2-3Yrs-2.pdf
The scheme is “oriented towards protection of capital” and not “with guaranteed returns.” It shall be noted that the orientation towards protection of capital originates from the portfolio structure of the scheme and not from any bank guarantee, insurance cover etc.
Investors are neither being offered any guaranteed/indicated returns nor any guarantee on repayment of capital by the Scheme. There is also no guarantee of capital or return either by the mutual fund or by the sponsor or by the Asset management Company
here is a good article on this topic from Deepak : http://blog.investraction.com/2010/11/capital-protection-funds-worth-it.html
Manish
Excellent.
A simple capital protection oriented scheme.
Put 81% of the money in a bank FD @ 7.5% pa compounded (reinvested). And rest of the 19% in a blue chip / large cap / large-mid cap fund.
After 3 years, you will have your principal back plus the proceedings of the 3 year investment in the fund. 🙂
I’ll suggest not to go for NFO since those will not have any proven tracking record. Just go for any MF with proven record.
Thanks,
Chakri
I am wondering what these funds have that makes them attractive ? If you have crores of rupees , then it might make sense to think about the tax savings which you can do compared to FD . But if its few thousands , its not worth the effort !
You have so many funds already in existence which have 80% debt and rest in equity . I dont have any reason to consider suggesting this .
Why were so drawn to this on the first place ?
Manish
What attracts us? Just the name and some one saying that you will not lose money if you invest in such funds 🙂