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MF Select

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Mutual funds have been primarily assessed and recommended based on their historical performance along with some other parameters including risk. This methodology is like driving a car looking at the rear-view mirror, which may or may not get you to your destination, thus bears a higher risk. While investing we are concerned about the future returns of the funds and that is where DSIJ’s MFSelect delivers. We drive looking at the windshield.

We at DSIJ, with a history of more than 30 years in equity research, take advantage of our research strength and experience of tracking listed companies to ascertain the expected return from the underlying stocks of each equity fund. This helps us to deduce the future performance potential of the fund.

We want investors to base their investment on the future return expectations and not historical performance. As funds alter their stock holding composition (by buying, selling, averaging stocks held) thereby altering the future performance potential of the funds. Every month we bring these potential fund winners/leaders to our subscribers to give them the opportunity to always ride the potentially fast-growing fund.

Key Features

  • bullet Two top-ranked mutual fund recommendations per month out of which one will be ‘Fund of the Month’ and other will be ‘Flavour of the month’.

  • bulletThe recommendation report will be provided to investors on last Monday of every month.

  • bullet Exit as per the need - The MFs whose underlying portfolio has churned and is witnessing deterioration will be advised to be exited.

  • bullet The report will be of two pages, highlighting the sectoral segregation of the recommended funds along with strong reasons why you should invest in.

Service

All recommendations will be sent via SMS and Email. Investors can then view the one/ two pager report on the website in their subscription section. This report will provide details on the Mutual fund.

Sample Recommendations

The Mutual fund recommendation format will be as below-
 MF Select – BUY - (Fund name)

Advantages

  • bullet Investors get MF recommendations based on future return potential of the underlying stocks forming part of that MF portfolio. This will help them to generate better returns.

  • bullet We keep a 24*7 eye on the holdings of the mutual funds. With our expertise in equity research, we gauge future return potential of funds and give advise on whether to enter or exit funds.

  • bullet Investors can be agnostic with respect to the changes in Fund manager or change in the investing philosophy of the fund.

  • bullet If the performance of the recommended MF is expected to deteriorate, investors will be advised to exit the same, helping them to get a better yield.

Risk level: The product is a low risk product as the risks of the individual stocks gets normalized over the larger basket size of the fund.

Frequently asked questions (FAQ)

MF select is a product which provides investor the top-rated funds as per the DSIJ’s unique forward-looking research methodology.

Top-ranked open-ended equity funds will be recommended.

The reason you should subscribe to us is that the entire landscape of mutual fund investment is changing and hence products offered also need to undergo change. For example, earlier switching of funds within fund house and to other fund house was time taking, expensive and crumblesome. Now, with the initiative taken by SEBI, we are witnessing ease of investment in mutual funds. Now a single KYC will enable you to invest across mutual fund schemes. All these changes create opportunities for new product and with our MF Select we are trying to addressing the changing scenario in the mutual fund industry.

Ratings and recommendation given by others in the market are purely based on past performance and hence backwardlooking. However, we use a method that is forward-looking and recommend fund on their future potential to generate returns.

In our MF select subscription, you will be receiving two Mutual fund recommendations every month. The two-page report will be sent on your register mail id. This report will provide further details about the two funds and the reasons it is going to perform going forward.

One recommendation is 'Fund of the Month', that is expected to be the best performer in future. Other is flavour of the month, which you may or may not act upon, depending upon your need and capital. Flavour of the month will focus on any buzzing trend, interest in sector, ELSS or Tax Saving funds that may serve some special purpose of your investment.

You can invest according to the capital availability. We rank the funds on their future potential returns and we do this for every fund every month. After that, we recommend funds that are expected to be better than other funds. Hence at the end of a year or any other period your return is expected to be better than any other single fund returns. Our back of envelope calculation shows that if you invest over and above Rs. 10,000 every month, returns generated will be decent enough to beat the returns generated by other investment avenues.

All recommendations will be sent on last Monday of every month through SMS and email. Also, investors can access Product Dashboard after logging in on our website www.dsij.in for viewing recommendations.

You can always buy Mutual Funds online, provided you are KYC compliant. Check your KYC compliance at (https://www.cvlkra.com/Default.aspx). Moreover, we will give you a link in our recommendation that you can follow to buy funds easily.

Switching of the funds is very much possible. All you need is KYC compliance with any one of the registrar and transfer agents (RTA) of mutual funds. To check whether you are KYC compliant visit (https://www.cvlkra.com/kycpaninquiry.aspx ) and enter your PAN number. Once you find yourself compliant you can easily invest in any mutual funds online.

However, if you are not KYC compliant, you need do it just once with any of the RTAs or Asset Management Companies etc. If you are investing through any broker, he can invest and redeem in your behalf. Nonetheless, we recommend you to go for online and invest in Direct plan as it gives you better returns than Regular plan.

Holding period will depend upon the performance of the fund. If it continues to perform, there is no reason why we should give an exit call. Nonetheless, our research shows that a fund cannot outperform its peers consistently (for more than 4 months) and hence we came out with this unique product that helps subscribers to maximize their profit by riding the fund that is going to outperform the market at that moment.

We would ask you to exit a fund once we find that the fund has stopped performing due to change in underlying stocks or has achieved its return potential.

We have backtested this investment philosophy for the last five years and have found that they have generated returns over and above 25% per annum post covering your exit load charges giving you a decent return.

We advise you to invest every month as every month presents different opportunities.

Nonetheless, it is your discretion. In case of any liquidity issue, as you exit from any fund you had invested earlier and can use that capital to buy other recommended fund. The idea of the product is to capture and recommend the fund that has the best return potential every month.

We recommend funds based on strength of underlying stocks of the fund. Since portfolio may undergo change overtime or the stocks forming part of the portfolio can see their fundamentals change, it may not remain attractive forever. Hence, SIP in traditional form does not make much sense. But you can do SIP in terms of investing a fixed amount of capital every month in our recommended fund and not an auto investment in a single fund always. SIP is also promoted for ease of investment, however, now investing in MF is just needs few clicks or a phone call.So you can invest in different funds every month depending upon their expected performance.

Tax will be applicable as per the prevailing tax rates. Currently we do not have any entry load, however, 1% of exit load is applicable (in most of cases) if you exit fund within one year of investment. For equity-oriented fund, short-term capital gain (charged if you hold fund for less than one year) is 15%. While there is no tax on long-term capital gain (If you hold equity fund for more than one year). However, the exact amount of taxation will depend upon individual income level.

We will give you exit load. However, we will consider this cost (exit load) while ranking our fund and hence subscriber should not worry much about the fund’s performance being impacted by exit load.

Our study of past five year shows that single fund has not remained the top performer in any subsequent two months, hence chances are less that you will receive same recommendation twice. However, if a fund performs even in other months we believe you can always invest in those as their return potential has increased.

Disclaimer
The recommendations are purely a view point and there is no guarantee on the returns. Hence all the clients (paid or unpaid) are requested to apply their prudence before acting on any of the recommendations. Neither DSIJ Pvt Ltd nor any of its promoters, members, or employees shall be held responsible for any losses incurred (if any) by acting on the recommendations.