How to Get better returns than Nifty 50 in market volatility?

Are you also an investor but are failing to make profits? Read these investing tips to know how to find if the valuation of your asset is expensive or cheap.

Looking for better returns than NIFTY 50

In core inflation conditions, one finds ways and means to save something or the other. Are you also in the same category? If yes, you might be holding something. But do you know, apart from just savings, you should also have some knowledge of investment plans to get better returns? According to experts, investing in the right thing at the right time matters as much as saving does. 

Are you also an investor but are failing to make profits? Read the investing tips ahead to know if your asset's valuation is expensive or cheap and other vital factors to consider while investing.

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The right time to take and exit an asset class.

A crucial factor of consideration for an investor is when to exit and enter an asset class. Additionally, it is equally important to know about rebalancing, as every action is taxed in investing. So how do you know the right time for investing and rebalancing? The answer is directly directed to the ICICI FOF (Prudential Asset Allocation Fund). The data of the Allocation Fund shows the relation between the strategic allocation of the asset classes, such as gold, equity, and debt, and better-investing experience in the short or long run. Meanwhile, you can see investment strategies for getting good returns here. 

Fund of Fund (FoF) Structure: Will it give better returns than Nifty 50?
Investments, most of the time, if not always, yield a good profit. For instance, if, in March 2010, you had invested a sum of Rs 10 lakh in an FoF scheme, your today's return would have amounted to nearly Rs 41 lakh. At the same time, the same amount invested in Nifty 50 would have resulted in Rs 39 lakhs approx. This data indicates that the Fund of Fund outperformed the Nifty, despite the low allocation.

This scheme has a fund structure and allots between debt mutual fund schemes and equity. Gold allocation is available in the system, and the major highlight is that debt and equity ranges can be between 0% and 100% (depending upon the valuation model). The Fund of Fund model structure keeps increasing the equity exposure. The principle of the structure is simple- buy low but sell high as the market falls. 

Does the Fund perform well at all times?

In March 2020, after the markets bounced back after the pandemic, the equity allocation for this scheme was 83%. After that, the equity was reduced to 45% as markets improved in December 2020. As of now, in 2022, the equity allocation is found to be 33%.

The statistical data of the scheme also shows that the scheme's performance has been good, even when the conditions of the markets were harsh. When the market was flat, the scheme had given a return of nearly 10.9%, and Sensex moved around 30,000. The notable point is that the scheme has been proven limited in the falling market. 

Best FOF Schemes In 2022:

The best Fund of Fund schemes which have generated higher returns in past few years are:

1. ICICI Prudential Asset Allocation Fund. 

2. ICICI Prudential Thematic Advantage

3. Aditya Birla Sun Life Financial Planning FOF Aggressive Plan

4. Aditya Birla Sun Life Asset Allocator FPF

5. Quantum Multi Asset FoF

Disclaimer: This blog is just for education purposes and should not be considered a piece of expert advice. All the finance schemes are subject to market risk, hence investments should be made at your own risk


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