Multi-cap and Flexi cap are two different strategies in Mutual Funds. Both strategies have large cap, Mid cap, and small-cap and allocation. In Flexi cap allocation charges are as per situation or economic activity. Fund managers can increase or decrease allocation as per their views on the market. So, there’s a lot of flexibility. But it can create bias. Predicting the performance of the Market cap is very difficult. In Multi-cap funds, there’s Fixed allocation large cap – 50%, Mid cap – 25%, and small cap 25%.

Currently, we are suggesting a DSP Multicap Fund for SIP. It will give you two benefits.

1. In Down Market (Bear Market) you can accumulate more units.
2. In the upmarket (Bull Market) NAV goes up.

It's a win-win situation for you. If you stay invested for 10 years plus. Indian markets are likely to be volatile for the next few years. If you start SIP now and stay the course, then the results will be amazing.

Why DSP Multicap Fund?

Balanced Dynamic Allocation across caps (25% Large, 25% Mid-cap & 25% Small Cap & Remaining 25% in any Cap as per valuation attractiveness)

Better exposure to mid & small caps: 50% in a Multicap Fund v/s Just 25% in the Nifty 500 Index.

Timely rebalancing: Multicap cuts down the exposure of ‘in-favour’ segments and exposure to ‘out of favor’ segments.

Despite investing in the same set of stocks, the Multicap strategy has outperformed the Nifty 500, almost 8 out of 10 times.

Start your New Year with SIP in DSP Multi Cap Fund.”

Blog by Mr. Santosh G Akerkar for Investor awareness and Educational Purpose.

SIP as the world knows it as Systematic Investment Plan but we consider is as simple investment plan to build wealth. SIP is nothing but Recurring Deposit with MF

Story No 1: Right Asset Class

There were three friends Pujara, Rahul, and Sehwag. All of them decided to invest 10000 pm in 2003. So now all of them completed 20 years. Pujara invested 10000 pm in Recurring Deposit.

Rahul Invested 10000 pm in Gold and Sehwag invested 10000 pm in SIP in Diversity Equity Mutual Fund.What happens to their investment is very interesting.

All invested 24 Lakh individually.

• Pujara’s 24 Lakhs became 51 lakhs Return of 7 % CAGR ( Bank RD )
• Rahul got 83 lakhs.Return of 11% CAGR ( Gold )
• Sehwag who invests in SIP of Equity Mutual Fund accumulated 1.17 Cr. Return of 14 % CAGR

It means by investing in the Right Asset class one can create Wealth.

Right Asset class at the right time is very important. Equity is the Right Asset class for Long term and discipline investment. Most people remain disciplined with LIC for 20 years to get 4% to 5 % cagr if they do the same with MF SIP Wealth can be created.

Blog by Mr. Santosh G Akerkar for Investor awareness and Educational Purpose.

2023 was really a good year for Investors. All asset classes Equity (21%), Bonds (9%) and even Gold (15%) delivered good returns. But what about 2024, Here are some of the trends worth watching. If we can capitalize on the trend then it will bring profit for you. Its tendency of humans to try predicting future. Even knowing that its beyond our control. We know that future is not knowable. Here in this Blog We also with our studies, data and limited knowledge trying guage trends of Future. Following are few trends to watch for 2024. • Volatile Equity Market We think Equity markets will be volatile in 2024.Difficult year for traders and speculators as market trying to discount future corporate earnings, US recession, elections results in India and US and Geo political issues. • Rupee set to appreciate We are very early in this trend. May be after June-July this trend will be much clear . We believe that US is likely to get in recession or soft landing around May or June 24. After that last 15 years (Since 2008) trend of Rupee (₹) depreciation could reverse for variety of reasons. It means $ could depreciate and ₹ will appreciate. This is likely to be a trend for next 8 to 10 years. Yes speculators can short $ around US recession to get good gains but for us there are many implications . Inflation and Interest Rates to remain Heigh. In India and around the world Inflation and interest rates will remain High for long. In US, Fed will start to cut rates in 2024 but 5 will not become 0 . May be It will remain between 2 to 4 (In US). As our Guru Howard Marks explains in his Memos that We are going through monumental shift for interest rates (Since 1980 ) . So, it’s very clear that interest rates and inflation likely to remain higher for longer. • Don’t underestimate Gold and Fixed Income. Add fixed income and gold to your portfolio to reduce volatility and get better returns. After many years of lower single digit returns ,both Asset classes Bonds and Gold likely to give good double digit returns to investors in next few years We have good allocation to these asset classes for our clients. • Be ready for Positive Or Negative surprises on Political and Election Front. 2024 is election year. Most of the major economies are going for elections in coming year. World is moving from middle to extreme right. We need to get ready for both positive as well as Negative surprises. These are some thoughts on trends for next year or so . I would like to know your views and opinions as well. Wishing you Happy and Prosperous New Year 2024 in advance. Blog by Santosh G Akerkar for Investor awareness and Educational Purpose.