December 21, 2015
Mutual funds are regarded as one of the best investment options for investors who are looking at long term investment. “The markets had run up quite a bit after Lok Sabha election results last year. In the present scenario where the equity markets have exhibited quite a bit of volatility, balanced funds have emerged as an attractive investment option for investors who like the returns that equity provides along with safety of debt. One such fund is DSP BlackRock Balanced Fund. This fund has been in existence for more than 15 years and has staged a smart turnaround in performance over the past year,” Vinit Sambre, Vice President and Fund Manager, DSP BlackRock Mutual Fund, said at a press conference in the city.
In terms of portfolio construction, the fund offered a good balance of portfolio mix which included about 70 per cent equity while debt and cash comprised 30 per cent. In terms of its performance, this fund had delivered 11 per cent returns in the last one year, outperforming its benchmark by a large margin which generated 2 per cent in the same period.
“Investors with moderate risk profiles can consider this product for their retirement planning and other long term financial objectives through systematic investment plans or lump sum route,” Sambre said.
He also said that Focus 25 Fund was yet another fund that had performed well. “At present, the market is trading at the long term average multiple on a one year forward earning basis and hence is not expensive. We are quite positive on the Indian equities with a long term view, given the reforms oriented government at the centre. Given the expected pick up in the reforms and GDP growth coupled with falling interest rate, we remain positive on sectors like private sector banks, automobiles, consumer durables, oil marketing companies and capital goods sectors,” Vinit said.
His advice to investors was to choose the right mix of small, mid cap and large funds and think long term (three to five years) while investing in mutual funds.