FT India Life Stage FoF 20s

FT India Life Stage FoF 20s is managed by Anand Radhakrishnan, Sachin Padwal-Desai and Palab Roy. The scheme seeks to generate superior risk adjusted returns to investors in line with their chosen asset allocation. New investors can safely skip this fund. If you have already invested in this scheme keep a close watch on its performance.

Where does FT India Life Stage FoF 20s invest your money?

The scheme changes its asset allocation based on the weighted average PE ratio of the NSE NIFTY Index. At higher PE levels, it reduces allocation to equities in order to minimize downside risk.

Similarly at lower PE levels, it increases allocation to equities to capitalize on their upside potential. Historically, such a strategy of varying the allocation of equity and debt/money market instruments based on the PE ratio has delivered superior risk-adjusted returns over the long term, although there is no guarantee that will be repeated in the future. The equity component of the scheme is invested in Franklin India Bluechip Fund (FIBCF), an open end diversified equity scheme investing predominantly in large cap stocks and the debt/money market component is invested in Templeton India Income Fund (TIIF), an open end income scheme investing in government securities, PSU bonds and corporate debt.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has FT India Life Stage FoF 20s performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Dec 2003, your value of investments would be around Rs 4.16 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.48 lakhs.  The performance has been better or similar to other mutual funds. The fund has been giving around 8.19% returns for those who have stayed invested for 5 years. 

Assume you had invested Rs 10,000 every month in FT India LifeStage FoF 20s through SIP since inception today you would have around Rs 8.13 lakhs.

How will FT India Life Stage FoF 20s perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

How frequently you need to monitor the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What are the charges applicable?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year from the date of allotment an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. The expense ratio is 0.78. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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