A lot of readers had been writing in to us saying they didn’t find the OLM Elite section is the ‘last’ issue. But the fact is, it was never meant to be published every month. When we started off with this section some 18 months ago, the purpose was to have its periodicity every three months—a decent enough timeframe to revisit your investments and make any course correction if need be.

But since many miss out on such finer details about a section, we have decided to carry OLM Elite in every issue, albeit in a concise way. We will now publish the data about the funds in each portfolio in every issue from now on and also come up with a detailed analysis twice a year. We will also feature interaction with one fund manager every month to understand their approach to investing and dwell deeper into a scheme’s performance.

For the uninitiated, we would like to reiterate some finer points of the OLM Elite again. The section features five portfolios that are so defined that depending on the kind of investor that you are, you could pick any or even a combination of funds if you found it more appealing. This way, this list solves one of the biggest problems faced by investors—how to categorise funds into groups that meet their investment needs. These investor types are: The Beginner, the Safe Player or the cautious investor, the Ultracool or the investor looking for stable growth, the Adventurer who seeks higher returns, and the Fixed Guns for investors looking for an alternate to the staid fixed deposit-type option. These largely define a broad range of investors that most of us can be associated with. So, take a look at all the sections and find out your investor type.


Beginner

You are at the right spot if you are new to investments and need to experience investing with minimal risks. The funds recommended here for a first-time investor comprise a mix of tax-saving and balanced funds. The tax-saving funds, known as equity-linked savings scheme (ELSS), come with a three-year lock-in that checks investor anxiety. Moreover, these funds provide tax benefits under Section 80C, an additional advantage to explore equity investing.

Safe player

This category is meant for cautious investors who have a three- to five-year investment time frame. Suited for those with a low-risk appetite, it is essentially made of funds that have investments mostly in the large- and mid-cap categories. The lone balanced fund in this stereotype is there to minimise exposure to risk and ensure safety of returns by way of disciplined asset rebalancing.

Ultracool

Investors looking for moderate return with a slightly more than five-year investment horizon should consider investing in these funds. There is an element of risk involved, but that is the case when the stock market is in a bear phase. Predominantly, the funds recommended in this category have a long history of performance over different market cycles, a reason why we still continue with HDFC Equity in this list.

Adventurer

If you are seeking returns and can tolerate higher degrees of fluctuation with them, then these are the funds for you. Mostly funds from the mid- and small-cap segments find place here for the high-risk, high-reward proposition. The presence of two tax-planning funds is for those who like risks. They also give tax benefits under Section 80C. These funds are not for the faint-hearted and only for those fishing for opportunities from the market.

Fixed Guns

These funds are for those investors who strongly believe in bank deposits. They are a good alternative and also more tax efficient. They post better returns compared to bank deposits of similar tenures too. Ideally, you should look to invest in lump sum in such funds, just the way you would in a bank deposit, with at least a six-month time frame or more, to get the best out of them.

olmdesk@outlookindia.com