BITCOIN

Dear Clients/ Investors,

We are receiving too many "BITCOIN" queries about our opinion on them. In lieu of that, this is our take.

Investing in cryptocurrencies, especially in the absence of any regulation, is like playing with fire. It can be hazardous to your wealth and health.

Therefore, considering the pros and cons, investors would be better-off not participating in the bubbly cryptocurrencies. Taking a cue from the dotcom boom and bust, it appears to be the only prudent decision to make.

Sit out the rally in cryptocurrencies and invest in more conventional avenues such as mutual fund schemes.

If you are looking at portfolio of mutual fund schemes to invest, that is strategically structured based on the core and satellite approach to investing.

Your ‘core portfolio’ will consist of large-cap, multi-cap, and value style funds, while the ‘satellite portfolio’ will include funds from the mid-and-small cap category and opportunities style funds.

The core portfolio offers stability by investing in funds that promise sturdy returns and have a strong ability to manage downside risk. The satellite portfolio provides the opportunity to support the core by taking active fund calls determined by "Master Mind Financial Advisory" extensive research on mutual funds & beyond.

"We are providing customized financial planning solutions & serving since 2005".

Warm Regards,

Varun Vaid & Master Mind Financial Advisory Team

+91-9814612907
+91-0172-4623907

E-mail: director@mmfa.in; operations@mmfa.in

Twitter: @vaid_varun

Website: www.vaidvarun.blogspot.in

Facebook: www.facebook.com/MasterMindFinancialAdvisory

LinkedIn: http://in.linkedin.com/pub/varun-vaid/15/9b3/277

Indiamart: www.indiamart.com/mastermind-financial

The Retirement Challenge

If you are at 40 are living a lifestyle of INR 50000 per month, chances are that you will think, "there is a long way to go for retirement". 

What you may not realise is that times have changed.

While 60 may be retirement age in letter, as far the spirit goes it no longer remains 60. 

The retirement age in India is rapidly climbing down owing to a very young median age of the population.

Young and competent people are always available as productive replacement for the older crop of employees.

Hence at 40, your job most likely could be your last one and you may be out of it by 50. 

So don't wait till 50 to plan for retirement. That perhaps would be a little too late.

Think of 40 as 50 and start planning for retirement. 

At 40, if you have saved about INR 20 lakhs, invest it in an equity or balanced mutual fund and for the next 10 years do an SIP of INR 40,000 per month.

(Both the Lumpsum and SIP amounts should be possible for a reasonably successful person of 40)

INR 20 lakhs Lumpsum and INR 40 K SIP should be able to ensure the same lifestyle of INR 50000 (inflation adjusted), till the age of 80.

Otherwise, if you wake up at 50, and even if you have INR 30 lakhs as savings, you will at max be able to maintain your lifestyle for 8 to 10 years only.

What would you then, between 60 and 80; a period of good 20 years !!

Wake up before you go go to your work today.

EMI Pain

He was 30. He decided to take a loan and buy a house like the rest of his friends.

For the next twenty years he paid an EMI of INR 50000.However, this EMI of his became an impediment in his investment path and because he failed to do an SIP. 

After 20 years, he at 50 is without a job. He lives in the same house and can't sell it.

Life has come a full circle as he stands at the crossroads of life wondering what to do.

A wife, parents and two children with just a house to live and a few lakhs in the bank with a long life ahead. 

These are those rare moments when one wishes for a shorter life.

As he stood there wondering what went wrong, he could see something very clearly.

"His EMI had hurt his progress?"

Had he lived in a rented house which in those days would have cost him INR 20,000 and had he invested the balance INR 30,000 in an SIP instead, the wealth he would have made would have been INR 6 cr. instead of the few lakhs that he currently had.

Even if he were to live a lifestyle of INR 200,000 per month for the rest of his life till the age of 80, he would just need INR 3.6 cr. out of the INR 6 cr.

With a residual INR 2.4 cr, he could have even opened an orphanage which had been his dream and thereby left behind a legacy.

He realised at that moment; the moment of truth that "EMI is slow poison & SIP is the key to Financial freedom".

(Above scenario is just an example. Rest depends upon Cash Flow of an Individual)

Irony of Life

You are a youngster earning a salary of INR 50000 per month. You are keen that your son do his MBA in IIM. You have 15 years time. An SIP of INR 10,000, which is only 20% of his salary, will meet your goal without disrupting your life.
Your boss is earning INR 1.5 lac per month. He also plans to see his son educated in IIM. But he has only 2 years time. His SIP value is INR 90000 which is 60% of his income and after accounting for his EMIs he is left hand to mouth.

You are planning your next holiday in Thailand and your boss is finding it difficult to take his family to Lonavla.

Financial Planning is important for each & everyone & quite often its realized too late. Better not to delay else it will decay your hard earned money.

"We are providing customized financial planning solutions, since 2005".

Average AUM rises 5.1% in Q3 FY17

Average assets under management (AAUM) of the mutual fund (MF) industry increased by 5.13% (by Rs82610.36 crore) to an all-time high of Rs16.93 lakh crore during the quarter ended December 2016andRs3.52 lakh crore more than the quarter ended December 2015, mainly on the back of increased interest from retail investors and aggressive buying of stocks. The total AUM of all active fund houses put together soared by Rs 3.52 lakh crore, or over 26.3%, to a record Rs 16.93 lakh crore at the end of December 2016 from Rs 13.41 lakh crore in December-end 2015. Demonetisation led fund flow in banking system is leading to surge in investments within capital markets, especially MF and debt instruments. 

On quarterly basis, of the 41 mutual funds, 28 fund houses registered rise in AAUM, while the rest resulted in fall during the December quarter. There were 05 mutual funds whose AAUM fell by over 10%. In the quarter ended December 2016 there were 20 fund houses which witnessed a rise in their average quarterly AUM upto10%, while 08 AMCs saw a rise in the AUM in the range of 12%-203%. 

Edelweiss posted the highest rise among the fund houses which witnessed rise in AAUM, from Rs2255.63 crore to Rs6826.25 crore. It was followed by Mahindra which posted 53% rise. 

The top five fund houses — HDFC, Reliance, ICICI Prudential, Birla Sun Life and SBI (UTI AAUM sifted to sixth position from top five) gained an aggregate of Rs9.67 lakh crore in their AAUM over the last quarter. Among the top 5 players, SBI was the highest gainer as its AAUM increased by 7.18% or by Rs9442.51 crore to Rs 1.41 lakh crore over that in quarter ended September 2016. ICICI Prudential clocked the top position shifting HDFC down to second position in terms of AAUM. ICICI Prudential AAUM increased by 5.56% to Rs2.28 lakh crore. HDFC AAUM increased by 4.10% to Rs 2.22 lakh crore. UTI Mutual Fund gained 1.61% or Rs by 2056.17crore during the quarter and its AAUM stood at Rs 1.29 lakh crore. Birla Sun Life MF increased7.06%, to Rs 1.81 lakh crore. Reliance MF AAUM increased by 6.94% at Rs 1.96 lakh crore. 

In terms of absolute asset growth in October-December 2016 over July-September 2016, Reliance MF leads the pack with rise by Rs12716.58 crore rise followed by ICICI Prudential MF with Rs12002.94 crore and Birla Sun Life MF is third with rise by Rs11927.52 crore assets added in this period. 

Equity & Debt Investments by Mutual Funds

Domestic mutual funds turned out to be net buyers in equity in December 2016. Mutual Funds were net buyers in equities worth Rs9178.9crore, as against net buying of Rs13610.4crore in November 2016. In December mutual funds were net buyers in equity in 17 trading sessions and net sellers in 05 sessions. Net buying in equity was recorded highest at Rs1618.2crore on 23 December 2016 while net selling recorded at Rs844.6crore on 13 December 2016. 

Mutual Funds were net buyers in debt to the tune of Rs23396crore in December2016. Out of the 22 trading sessions in November mutual funds were net buyers in debt in 15 trading sessions, while net sellers in remaining 07 sessions. Net buying in debt was recorded highest at Rs5782.2crore on 02 December 2016 while net selling recorded high at Rs1174.5crore on 08 December.

Average Assets under Management (AAUM) for the quarter of October-December 2016 (Rs in crore)
Mutual Fund Name	AUM (Rs CR) December 2016^	AUM (Rs CR) September 2016^	Change (Rs CR)	VAR (%)
Axis Mutual Fund	49280.55	47179.23	2101.32	4.5
Baroda Pioneer Mutual Fund	10785.23	11702.62	-917.39	-7.8
Birla Sun Life Mutual Fund	180808.33	168880.81	11927.52	7.1
BNP Paribas Mutual Fund	6032.29	6068.72	-36.43	-0.6
BOI AXA Mutual Fund	2896.01	3635.89	-739.89	-20.3
Canara Robeco Mutual Fund	9411.05	9319.82	91.23	1.0
DHFL Pramerica Mutual Fund	24807.27	24472.92	334.35	1.4
DSP BlackRock Mutual Fund	58357.12	49851.54	8505.58	17.1
Edelweiss Mutual Fund	6826.25	2255.63	4570.63	202.6
Escorts Mutual Fund	286.49	294.90	-8.41	-2.9
Franklin Templeton Mutual Fund	75782.68	73666.13	2116.55	2.9
Goldman Sachs Mutual Fund		7098.66		-
HDFC Mutual Fund	221824.51	213086.14	8738.37	4.1
HSBC Mutual Fund	8670.06	8502.74	167.33	2.0
ICICI Prudential Mutual Fund	227988.79	215985.85	12002.94	5.6
IDBI Mutual Fund	7761.28	8128.36	-367.08	-4.5
IDFC Mutual Fund	57997.66	56656.26	1341.40	2.4
IIFCL Mutual Fund (IDF)	398.93	388.37	10.56	2.7
IIFL Mutual Fund	423.54	370.36	53.18	14.4
IL&FS Mutual Fund (IDF)	994.58	970.15	24.44	2.5
Indiabulls Mutual Fund	10226.52	6731.29	3495.23	51.9
Invesco Mutual Fund	23616.86	22560.37	1056.48	4.7
JM Financial Mutual Fund	13521.89	13612.13	-90.25	-0.7
JPMorgan Mutual Fund		5064.81		-
Kotak Mahindra Mutual Fund	82135.06	70387.06	11748.01	16.7
L&T Mutual Fund	35191.01	32666.65	2524.36	7.7
LIC Mutual Fund	18022.04	16452.71	1569.33	9.5
Mahindra Mutual Fund	1456.60	949.88	506.72	53.3
Mirae Asset Mutual Fund	6343.30	5235.45	1107.85	21.2
MotilalOswal Mutual Fund	7131.21	6392.95	738.26	11.5
Peerless Mutual Fund	945.72	970.88	-25.15	-2.6
PPFAS Mutual Fund	675.61	667.67	7.93	1.2
PRINCIPAL Mutual Fund	4867.67	5136.17	-268.50	-5.2
Quantum Mutual Fund	857.85	805.66	52.20	6.5
Reliance Mutual Fund	195845.43	183128.86	12716.58	6.9
Sahara Mutual Fund	66.94	79.51	-12.57	-15.8
SBI Mutual Fund	140996.93	131554.42	9442.51	7.2
Shriram Mutual Fund	37.66	43.15	-5.49	-12.7
Sundaram Mutual Fund	27013.00	26699.88	313.11	1.2
Tata Mutual Fund	38270.76	39691.09	-1420.34	-3.6
Taurus Mutual Fund	2339.44	2663.42	-323.98	-12.2
Union Mutual Fund	3055.69	3386.50	-330.81	-9.8
UTI Mutual Fund	129389.38	127333.21	2056.17	1.6
Grand Total	1693339.17	1610728.80	82610.36	5.1
* AUM pertains to 41 Mutual funds
^ Data for Mutual Funds is as at the end of the respective quarter
JPMorgan MF have been transferred to, and form part of the Edelweiss Mutual Fund
Goldman Sachs MF have been transferred to, and form part of the Reliance Mutual Fund

 

Transactions by mutual funds in December 2016
	Equity (Rs in crore)			Debt (Rs in crore)
Transaction Date	Gross Purchases	Gross  Sales	Net Purchases / Sales	Gross Purchases	Gross  Sales	Net Purchases/ Sales
1-Dec-16	1412.3	1091.9	320.4	11674.5	6202.1	5472.4
2-Dec-16	1124.7	1371	-246.3	12315.8	6533.7	5782.2
5-Dec-16	961.7	862.9	98.9	6784.4	3034	3750.4
6-Dec-16	779.5	937.2	-157.7	6036.2	4353.7	1682.4
7-Dec-16	1208.4	1187.1	21.3	6083.8	4520.1	1563.6
8-Dec-16	1058.3	976.3	82.1	3758.9	4933.4	-1174.5
9-Dec-16	1124.8	787.5	337.3	3679.2	3657.2	22
12-Dec-16	672.8	894.4	-221.6	8.8	36.9	-28.1
13-Dec-16	1065	1909.6	-844.6	7246.8	5527.8	1719
14-Dec-16	1334.9	993.3	341.6	5034.4	5103.9	-69.6
15-Dec-16	1537.4	1599.1	-61.6	6008.7	5414.7	594
16-Dec-16	1805.7	1515.8	289.9	4978.5	5076.9	-98.4
19-Dec-16	1549.4	763.8	785.6	4458.5	3823.8	634.7
20-Dec-16	1426.4	883.9	542.4	5869	6512.9	-643.9
21-Dec-16	1731.1	646.2	1084.9	3996.6	4247.7	-251.2
22-Dec-16	1347.9	1011.5	336.4	4141.7	4055	86.8
23-Dec-16	2142.9	524.7	1618.2	9157.7	7694.8	1462.8
26-Dec-16	1401.8	605.2	796.5	6385.4	4525.5	1859.9
27-Dec-16	2023	599.7	1423.2	3540.1	3913.1	-373
28-Dec-16	1541.4	696.3	845.1	3729.3	3529.4	199.9
29-Dec-16	2425.5	1580.8	844.7	5759.4	4576.9	1182.5
30-Dec-16	2161.2	1219	942.2	5838.4	5816.3	22.1
Total for December	31836.1	22657.2	9178.9	126486.1	103089.8	23396