Plumbline Handpicked Mutual Funds Jan 2018: One Change, more to come?

Published: January 24, 2018 at 9:30 am

Last Updated on September 6, 2019

PLumbline is my list of handpicked mutual fund started in Sep 2017 for beginners to accompany the freefincal robo advisory template. This month, one fund from the list has been removed as AMCs have started to fall in line with SEBIs mutual fund classification rules. Before we begin, my second book, Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want is now available for only Rs. 49 (50% off on the Kindle edition). You can read the book on your browser or mobile (no Kindle device needed). Grab it now or gift it to a young earner!

What is plumbline and how should I use it?


A plumb line is used to fix the vertical and therefore the horizontal. This list hopes to help new investors do the same. 
Pic credit: Mr. atm

1: PlumbLine is a boring list of mutual funds. It will NOT change from month to month unless there is a significant change in the fund’s strategy or dip in performance or some other special situation. So please do not look forward to it. Also, there are plenty of good mutual funds that are not part of PlumbLine. If your funds are different, you are probably better off. Do not worry about it.

2:  Do not use PlumbLine for confirmation of your choices! PlumbLine is meant for young earners and first-time investors after they have used the robo advisory template.


3: If tomorrow the funds in the list change, you will have to take a call on what you need to do, based on the fund performance from the date in which you invested. I cannot help you here, other than talk about how to review.

Disclaimer

On its own, this list has no meaning and unless you are able to look at it in the right perspective and context, it will not help you. The hope is that the robo template will try and provide such perspective which still has to be processed and interpreted by you.

Finally, I am only human and more than capable of making mistakes. Also, I am a below average investor and fund picker or analyzer. I am not a fan of looking into the fund portfolio. I prefer funds with a narrow investment mandate. I am sure you will agree that most of the picks are lame and obvious.and that this list is a no-brainer and nothing special.

If the funds here stop performing in future or have credit defaults issues, all I can do is to modify the list (if required).  I WILL NOT BE IN ANY WAY RESPONSIBLE FOR YOUR INVESTMENT CHOICES, CAPITAL GAINS OR LOSSES. 

If a PlumbLIne fund is present in your portfolio, it means nothing.

If none of your funds is present in the PlumbLine list, it means nothing.

MUTUAL FUNDS ARE SUBJECT TO IGNORANCE RISKS AND MARKET RISKS. PLEASE READ AND UNDERSTAND ALL SCHEME RELATED DOCUMENTS BEFORE INVESTING.

FAQ on Plumbline

1. Why are X, Y or Z funds not part of plumbline  —> Plumbline is my list. Don’t expect me to make a list that matches your expectations.

2. The funds you have listed are not even 4-star funds  —> I don’t care. Star ratings are injurious to your mental and fiscal health. Comparisons are injurious to peace of mind and plumbline is just plain bad.

3 Plumbline does not feature the top funds from your monthly screener  —> Yeah because I did not consult it. Plumbline is a qualitative assessment of a funds investment strategy, mandate and performance.

Plumbline Jan 2018

Why has DSPBR Treasury Bill fund been removed? Because its investment mandate has changed and it will no longer operate as a short-term gilt fund: Death of a good mutual fund: DSP BlackRock Treasury Bill Fund

I am an investor in the fund, what should I do? Nothing! It is now an ultra short-term fund. Its credit risk profile has increased perhaps a little bit more interest rate risk. Don’t lose sleep about it. Continue to hold after reading the new investment strategy and if you are comfortable with it.

As more AMCs fall in line with SEBI regulations, I am afraid there will be a few more changes.

What about Quantum Dynamic Bond which was on the watchlist last time?

Dec 2016:

Money market (liquid/cash) ~ 28%

long-term bonds (>9Y) ~ 71%;

Sep 2017

Money market ~ 12%

very llong-term(>12Y) ~ 50%

Nov 2017

Money market ~ 18.5%

Still 83% exposure to >10Y bonds.

As on 19th Jan 2018, the exposure to >10Y bonds has come down to about 47%. Therefore, it stays. The fund has stemmed its fall – not as much it should have on an absolute level and certainly not as well as few other funds (guess which ones?!). Its performance since Sep 2017 when long-term yields started moving up gradually has been about “average”. That is too short a term to judge harshly. So it stays for now.

Check out the performance of funds on this list

Request: If you receive an email from the AMC that your fund (any fund) has changed its investment mandate (fundamental change in attribute), please forward that email to me (freefincal at Gmail)

Announcement: Last year I spoke at a few corporate gatherings (eg. RBI, Asian paints). That is, I discussed basic money management with employees. If you are interested in hosting such an event, you can get in touch. There is no fee involved other my travel expenses and I shall talk about only the absolute basics for employees to start thinking about money in the right way and hopefully implement it.

Opinion: I have removed the freefincal Q/A segment from this year because the questions are frankly a bit tiresome. If you found it useful, let me know and I will continue it.

 

Do share if you found this useful

We now publish both equity fund and debt fund (+ hybrid fund) screeners each month!
Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video!  More than 415 investors and advisors use this!
Unlock the secrets of successful financial advisors and entrepreneurs with our new course!
My new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, if we had to groom one ability in our children that is key not only to money management and investing but for any aspect of life, what would it be? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parent’s plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Did you know? We have more than 1000+ videos on YouTube to explore! Join our YouTube Community!

Join our courses in exclusive Facebook Groups!

  • 550+ members are now part of our new course: How to get people to pay for your skills! (watch 1st lecture for free). Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show how to achieve by showcasing your skills and building a community that trusts you and pays you!
  • Goal-based portfolio management! Join 2220+ members and get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment of Rs. 3000 only. No recurring fees! Life-long access to videos (10+ hours content)  in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements, write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps