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Old 26th December 2014, 12:26   #706
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Default Re: The Mutual Funds Thread

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Doesn't this depend on the stocks he picks and MF he picks?
Exactly, but if a professional does not do that well, what chance do we have as ameteurs!
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Old 26th December 2014, 12:54   #707
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Default Re: The Mutual Funds Thread

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Exactly, but if a professional does not do that well, what chance do we have as ameteurs!
But a MF is basically stocks picked by a professional, right?
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Old 26th December 2014, 15:06   #708
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Default Re: The Mutual Funds Thread

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But a MF is basically stocks picked by a professional, right?
Yes, but with a large research team to back him up! So that pro is not the same as a lone wolf!
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Old 2nd January 2015, 10:34   #709
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Default Re: Do you play the stock market

Can someone please suggest a low-cost (low commission/fee) online brokerage for investing in Mutual Funds? My investment strategy is buy on SIP and hold for long-term - I don't trade individual stocks. I used to have a Sharekhan account but it is very expensive for my investment methods.
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Old 2nd January 2015, 12:30   #710
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Default Re: Do you play the stock market

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Originally Posted by hellmet View Post
low-cost (low commission/fee) online brokerage for investing in Mutual Funds? My investment strategy is buy on SIP and hold for long-term - I don't trade individual stocks.
You can register directly on Mutual find's website and invest.

That way, cost would be Zero. This is because

1. There is no agent/broker involved in the process.
2. Since you are going to hold funds for 1 year+ (long term), Zero exit cost too.

Advantages:
1. Zero cost

Cons:
1. Need to submit documents to individual fund houses (Say if you invest in 4 HDFC funds and 2 HSBC funds, you will have to submit documents to HDFC as well as HSBC)

OTOH; for long term SIP investments, even using your bank's online portal is not that bad.

Cost for using your bank's online investment portal:

1. Account charges : 1200 Rs per year (waived for premium savings customers / salary accounts)
2. SIP commission : Total cost of SIP investment would be 100 Rs, charged in 2 -3 installments.

Advantages:
1. Single website to monitor investments + profit/ loss etc
Cons:
1 Cost, and cost is not entirely transparent, easy to understand.
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Old 2nd January 2015, 14:55   #711
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Thank you netfreakbombay ! That was some useful Information.

On a side note, what about ETFs ? They do have a portfolio basket and the only expense is in brokerages while making the transaction
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Old 2nd January 2015, 16:19   #712
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Default Re: Do you play the stock market

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ETFs... only expense is in brokerages while making the transaction
That is the "visible" expense. On top of that, you will be paying ~1.5% of total value per year to AMC for managing the ETF. (Say for an investment of 3 lakh, ~4.5k per year).

This ~1.5% is on top of charges already levied by by constituents.

These charges are not easily visible since these are applied while calculating NAVs.

As an example, look at page 48 of this particular ETF's factsheet.

http://www.sbimf.com/docs/default-so...-sbi-gold-fund

Do review:

1. Management costs of ETF + constituents
2. Taxation

Before investment.
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Old 3rd January 2015, 18:57   #713
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Default Re: The Mutual Funds Thread

For transaction of ETFs one needs to have d-mat account as well. Please correct me if I am wrong. But expense ratio of ETF are slightly lesser than normal funds.
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Old 8th January 2015, 19:11   #714
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Default Re: The Mutual Funds Thread

I just created accounts with HDFCMF and Franklin Templeton directly on their websites.
So far, the experience has been positive.
The intention (once I get transaction access) is to make future investments directly on respective websites. It is more effort to track, but perhaps the savings will be worth it.

I added existing folios in the respective websites and I can see the corresponding details.
Now, what would be the benefit of shifting existing investments from 'indirect' to 'direct' mode?

For instance, I had a SIP in HDFC Top 200 which got over more than 1 year ago. I do not intend to book profit/ redeem.

Is there any sense in trying to shift that investment to direct mode? Is there some trailing commission that would be saved? Or this idea itself is flawed?

(HDFC MF Customer Care mentioned that I can shift that investment to direct and the NAV would get changed.)

Last edited by S_U_N : 8th January 2015 at 19:12.
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Old 8th January 2015, 20:27   #715
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Thumbs up Re: The Mutual Funds Thread

Quote:
Originally Posted by S_U_N View Post
Is there any sense in trying to shift that investment to direct mode? Is there some trailing commission that would be saved? Or this idea itself is flawed?
There would be lots of money in shifting from regular to direct mode for mutual funds. You would save on the yearly trailing commissions which would be payable to the intermediaries(like ICICIDirect, HDFC Securities, etc). To take an eg. the difference of expense ratio of regular and direct funds are around 1%+, the yearly savings on an overall investment of 10 lakhs in mutual funds would be 10K. So you would save 10K per year, every year going ahead.
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Old 8th January 2015, 20:36   #716
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Default Re: The Mutual Funds Thread

Hi,

You can easily track all your mutual funds (which ever fund house) using CAMS mail back services. Do take a look at this website:

https://www.camsonline.com/COL_InvestorServices.aspx

You can also create a portfolio on money control or valueresearchonline.com to track your funds.

Pradeep

Quote:
Originally Posted by S_U_N View Post
I just created accounts with HDFCMF and Franklin Templeton directly on their websites.
So far, the experience has been positive.
The intention (once I get transaction access) is to make future investments directly on respective websites. It is more effort to track, but perhaps the savings will be worth it.

I added existing folios in the respective websites and I can see the corresponding details.
Now, what would be the benefit of shifting existing investments from 'indirect' to 'direct' mode?

For instance, I had a SIP in HDFC Top 200 which got over more than 1 year ago. I do not intend to book profit/ redeem.

Is there any sense in trying to shift that investment to direct mode? Is there some trailing commission that would be saved? Or this idea itself is flawed?

(HDFC MF Customer Care mentioned that I can shift that investment to direct and the NAV would get changed.)

Last edited by pradkumar : 8th January 2015 at 20:39.
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Old 15th January 2015, 15:19   #717
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Default Re: The Mutual Funds Thread

Hello all,
Would like some opinion on this question I had.

I am 31, and intend to work for about 25 more years, I guess.
I do not have a home loan yet, but that certainly is a must and would have one in the next 5 years.

I have some residual money left over every month, a few thousands, and thought I would invest that to mutual funds.
I cant do SIP because a) the amount varies b) I may not be able to pay every month.

So, my plan is to choose 4 Mid cap direct funds from 4 different fundhouses and take a min investment of 5k each.
Next month onwards, 1k each as reinvestment.
On a normal month, its 1k for each fund.
On a good month, it may be 2k for each fund and a bad month, 0.

Needs discipline, yes.
My question -- considering the fact that I do not have a date or even a year when I expect to withdraw all of these. It must be at least 15 years away.
Should I be leaning towards the Govt companies like SBI and UTI because I am in it for the long haul ?
What happens if any of the private players shut shop in India ?

Thanks,
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Old 15th January 2015, 22:50   #718
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Default Re: The Mutual Funds Thread

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Originally Posted by ashokrajagopal View Post
What happens if any of the private players shut shop in India ?
None of the private players will shut shop in India. Not only is the MF industry heavily regulated in India by SEBI, but all the holdings are held in a trust separate from the AMC. Chances of anything untoward are minimal to non-existent and nothing like the MCX fiasco (regulated by FMC, not SEBI) is ever likely to happen.

For your peace of mind, you can invest in SBI, UTI, etc., but bear in mind their customer service is usually poor and their performance can also be below par compared to the private players. If you are looking for something in between, why not HDFC which also happens to have some very good funds?

I would suggest you check out one SIP of 1-2K so you get used to the whole idea. The problem with not having a SIP is that you are timing the market and that means that your investment would end up being irregular.

Also bear in mind that if you do not have any balance in your account on a SIP date (say end of the month), that month's SIP will automatically get annulled with zero penalty. But if you miss two in a row then the MF will automatically terminate the SIP.
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Old 16th January 2015, 09:21   #719
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Default Re: The Mutual Funds Thread

@nowwhat?,

Thanks for the reply. I understand.
As a matter of fact, the funds I converged on where SBI Emerging business, UTI midcap, HDFC midcap opportunities and Birla Sunlife Midcap.
Per what you are saying, I can invest safely in these.

No I cant go for SIP, exactly the cases you mentioned. It may be 1 month, may be 2, or even more where I would nt be able to make exact numbers. I may not be able to pay every month. Even if I settle for 1k or 500 which is minimum, I may have a couple of thousands left over every month and would need to buy additional units one off.


No research as to what date to buy or how to distribute extra funds.
Its 4 funds, and min 1k each, and never more than 2.5k each.
It is sort of like timing the market, but the amount I put away every month cannot be a burden of any sort. From my personal experience, that debit which is regular and timely often makes me eagerly wait for a return, and that which I put away voluntarily at end of the month, never bothered me.
It may be me and not a general sentiment.
I have had SIPs and RDs before.

I will run it this way for a year, and see how it goes. In case it is going wayward and I cant really balance anything, will convert to SIPs.


Appreciate the reply. Regards

Last edited by ashokrajagopal : 16th January 2015 at 09:27.
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Old 16th January 2015, 09:53   #720
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Default Re: The Mutual Funds Thread

Folks,

I have been a regular investor in ELSS MF's between 2007-13. Now I do not have any compulsion of section 80C tax exemptions/deductions, thanks to Housing loan. Hence looking for some equity based MF's. After a brief research (may be search) I decided on SIP. From this month I started investing in the following MF's
1. ICICI PRUDENTIAL BANKING AND FINANCIAL SERVICES FUND - REGULAR PLAN - GROWTH
2. HDFC MID CAP OPPORTUNITIES FUND - GROWTH

I will monitor these for next six months and assess my strategy.
Any BHPian's invested in the above funds? Any other good suggestions on fund selection?
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