Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Thursday, June 27, 2013

BNP Paribas Income & Gold Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

BNP Paribas Income & Gold Fund The fund will invest 65-90% in debt instruments and 10-35% in units of one or more gold ETFs

(In this column, FC gives its view on new financial products launched in the market.

This is a subjective view. Investors are advised to take professional help in selecting a product and not make any decision on the basis of these reviews)

FEATURES: This is not a new fund offering. It is a one year old hybrid open-ended debt gold fund with a larger exposure to short-term debt securities than to gold.


ASSET ALLOCATION: The fund's scheme information document (
SID) states it will invest 65-90 per cent in debt instruments and 10-35 per cent in units of one or more gold ETFs. As per the fund's latest monthly portfolio in Capitaline NAV database, its exposure to gold was 22 per cent, while its debt exposures in corporate debt and government securities were 57 per cent and 12 per cent, respectively.


CHARGES: Annual recurring expenses charged to you, as per the fund's SID, can go up to 2.90 per cent for the fund's exposure to debt instruments (including money market securities) and up to 1.90 per cent for its exposure to gold ETFs.


This fund now has a track record. It is among a handful of hybrid debt gold funds, which also signifies its uniqueness since the dominant debt exposure is supposed to fetch you assured steady return, while the gold exposure is supposed to give you potentially inflation-adjusted returns.


So, The how has it fared?


fund got going in June last year and the NAV data for the past 11 months is available. An FC Research Bureau analysis of NAVs from Capitaline NAV database shows BNP Paribas Income & Gold Fund (BPIGF) to have given an 11-month absolute return of 1.7 per cent as on May 29. The fall in gold prices has resulted to this poor performance, where Rs 10,000 invested would have just become Rs 10,170. But how would have an investor fared if he/she had invested separately in a short-term income fund and a gold ETF?


BPIGF allocates 10-35 per cent in gold. If a person had invested 10 per cent of Rs 10,000, or Rs 1,000, directly in a gold ETF, he/she would have suffered a negative return of -11.1 per cent (average of 11 gold ETFs' 11-month returns). The balance 90 per cent, or Rs 9,000, invested in short-term income funds would have got a 9.31 per cent return (average of 45 short-term income funds' 11-month returns). Together, the investor would have been left with Rs 10,220, or a net return of 2.2 per cent. This itself is higher than 1.7 per cent return of BPIGF. Debt exposure of 35-65 per cent in gold through separate investments would have still resulted in higher net return of 7.3 per cent. Clearly, trusting a professional multi-asset manager to dynamically manage asset exposures has not paid off in the case of BPIGF.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts