The Mutual Funds Thread

[sgiitk]

I think you can claim rebate for 70k only, but can put in 70k into each of them. I have not checked for over a decade (my kids have grown up).

[yosbert]

Originally Posted by sgiitk

I think you can claim rebate for 70k only, but can put in 70k into each of them. I have not checked for over a decade (my kids have grown up).

Well, I don't think it works that way. Here is a link I was going over recently
Good old PPF would still work for your kids - Money Matters - livemint.com

Having said that, the rules are not very clear and I found a suggestion that one can invest additional 70K in the account of your spouse or major children, here
Good old PPF would still work for your kids - Money Matters - livemint.com (see question 10)

[Gautam Misra]

Originally Posted by diptimanraje

Sir, kindly comment & advice on my portfolio.

I am 36, my wife is 33 & our son is 7 years old.

For myself :
1. Reliance growth fund - growth option Sip of rs.2500/- tenure 20 years from which completed 1 year.
2. Ppf contribution rs.70000/- per year tenure 35 years from which completed 8 years.
3. Endowment assurance policy of rs.500000/- term 35 years, *from which completed 11 years, yearly premium rs.13268/-.
4. Jeevanshree policy of rs.500000/- term 20 years, from which premium paying term was 12 years which is completed, premium was rs.35748/-.
5. Endowment assurance policy of rs.2500000/- term 25 years, from which premium paying term is 20 years from which I have completed 10 years, yearly premium rs.126440/-.
6. LIC health plus policy of rs.500000/- term 35 years, from which completed 3 years, yearly premium rs.24000/-.
7. LIC profit plus ulip single premium paid rs.850000/-, term 20 years from which completed 2 years.

For my wife :
1.*Reliance gegular saving fund - growth option Sip of rs.2500/- tenure 20 years from which completed 1 year.
2. Ppf contribution rs.70000/- per year tenure 35 years from which completed 8 years.
3. Endowment assurance policy of rs.500000/- term 35 years, *from which completed 11 years, yearly premium rs.12595/-.
4. Jeevanshree policy of rs.500000/- term 20 years, from which premium paying term was 12 years which is completed, premium was rs.35651/-.
5. Endowment assurance policy of rs.200000/- term 30 years, from which premium paying term is 30 years from which I have completed 9 years, yearly premium rs.7003/-.
6. LIC health plus policy of rs.500000/- term 35 years, from which completed 3 years, yearly premium rs.24000/-.
7. LIC profit plus ulip single premium paid rs.850000/-, term 20 years from which completed 2 years.


For our son :
1. Reliance vision fund - growth option Sip of rs.2500/- tenure 40 years from which completed 1 year.
2. HDFC top 200 fund - growth option Sip of rs.2500/- tenure 42 years from which completed 1 year.
3. HDFC equity fund - growth option Sip of rs.3000/- tenure 25 years from which completed 1 year. For his higher education.
4. Franklin India blue chip fund - growth option Sip of rs.2500/- tenure 45 years from which completed 1 year.
5.*Reliance gold fund - growth option Sip of rs.5000/- tenure 52 years just started.
6. Ppf contribution rs.70000/- per year tenure 56 years from which completed 3 years.
7. Jeevan kishore policy of rs.500000/- term 35 years, *from which completed 7 years, yearly premium rs.11877/-.
8. Children's differed endowment vesting at 18 policy of rs.4000000/- term 45 years, from which completed 2 years, premium is rs.46432/-.
9. Children's differed endowment vesting at 18 policy of rs.4000000/- term 50 years, from which completed 2 years, premium is rs.40128/-.

The above investments are made considering our respective retirement ( in between both of us rs.6 cr. )requirements & our sons education ( rs.35 lacs) *& his retirement requirement ( about rs.30 cr.).

Is this portfolio o.k. And are our goals achievable by following the above investments.
Please anybody advice.

IMHO this kind of a portfolio is not ok. You are only 36 and are too much inclined towards a very "defensive" portfolio. My advice to you:

1. I feel that you too many insurance products. You should go for a simple term cover for insurance.

2. You should reduce your exposure to PPF at this point of time as you get 8% returns and migrate to Bank FDs and keep the money in long term deposits having highest interest rates. For better tax management you can have the FDs in your wife's name. For e.g State Bank of Hyd offers 9.5% for an 8 year old deposit. Go for the monthly interest option and link the account to a SIP as the interests get into a SIP of a good mutual fund. In this way your capital gets protected.

3. If you follow the stock markets then you can also invest the "interest amount" in Stocks every month. Select 10 blue chip stocks and keep on investing in the same stocks every month. "Systematically" keep on investing in these stocks and you will make more than 14% (post tax returns) in 10 years time. Some stocks that you can nibble in are L&T,ICICI Bank, Coal India, RIL,Bharat Forge and Fortis HealthCare.

I have recommended the above keeping in mind that you are only 36 and can take risks at this age.

[sgiitk]

Originally Posted by yosbert

Well, I don't think it works that way. Here is a link I was going over recently
Good old PPF would still work for your kids - Money Matters - livemint.com

Having said that, the rules are not very clear and I found a suggestion that one can invest additional 70K in the account of your spouse or major children, here
Good old PPF would still work for your kids - Money Matters - livemint.com (see question 10)

I think it is a matter of the PAN. As long as the PAN is different you should be kosher.

[rajesh1868]

A very basic query, I hope.
How to sell MF without going back to the person who sold it? I purchased some tax saving schemes long back and would like to sell it. Is there anyway to do this online?

[Gautam Misra]

Originally Posted by rajesh1868

A very basic query, I hope.
How to sell MF without going back to the person who sold it? I purchased some tax saving schemes long back and would like to sell it. Is there anyway to do this online?

Depending on which mutual fund it is, you can redeem it by visiting their office.
If the fund is registered with CAMS you can visit the cams office. Here is a link to the website of CAMS-
CAMS Home Page

If your mutual fund is not registered with CAMS then you may have to go the nearest office of the Mutual Fund for redemption with the Folio No. of the Mutual Fund and can get back your money.

I would suggest that you wait for the stock markets to retrace back to their earlier highs for redemption unless of course you are badly in need of the money.

[ontheroad]

A small query,

I do MF SIPs through Hdfc bank account in various funds and recently a friend adviced to switch over to fundsindia.

My doubt is that does MF brokers charge any AMC for MF accounts? My understanding is that apart from the expense ratio charged by the fund itself, we dont have to spend anything for broker. Also I have not seen any debit in my Hdfc bank account for the MF part.

So will there be any advantage if i change from MF investing through my bank account to Funds india? Presently all is well as the money is debited directly from HDFC saving account to buy MFs in the account itself.

[sgiitk]

I also think there is a certain amount of money (from the maintenance charges) fed back to the 'broker'. In general do not change brokers unless you have a reason. I have been with my bank StanChart (earlier Grindlays) since day 1. Having you bank as a broker has its advantages.

If you want to change the broker just approach the MF.

[msdivy]

Originally Posted by ontheroad

So will there be any advantage if i change from MF investing through my bank account to Funds india? Presently all is well as the money is debited directly from HDFC saving account to buy MFs in the account itself.

I was looking for an online portal to manage my MFs. I came across 2,
1) FundsIndia | Online Mutual Funds | SIP | Free Advisory | Shares |
2) Fundsupermart.com - Invest Globally and Profitably | India, Mutual Funds, Unit Trusts, Invest, Fund Supermarket, Money

Both are free. I have signed up. Both are 1-to-one replacement for physical brokers. Even with these portals, investment will be done from your bank account via ECS. Only advantage is the portal does all the paper work (like contacting the MF house, ECS mandate etc) and you would have to deal with online portal only.

PS: This isn't what I was looking for and hence I am not investing through them for MFs. www.moneysights.com is free now. I am evaluating if that meets my needs.

[S_U_N]

Does anyone have an opinion on Motilal Oswal MOST 10-year gilt fund launched recently?

[Cayman360]

I had a look at the 1 year performance of the funds in my portfolio, to compare each against the others, to see which fell worse, compared to similar funds of the same category.

I added a few funds that I do not hold, but are of the same category of funds I hold, to see what I could add/remove from my portfolio.

Pure equity - large cap, multicap, small-midcap funds (primarily for retirement)



Balanced Funds and MIPs (for a goal 3-5 years away)





ELSS tax savers



Sensex has fallen more than 20% in the past year, so the above 1 year figures give you an idea about each fund.

I've been investing via Fundsindia, and have had a pleasant experience so far. I get a single view of my entire portfolio, which is great for tracking.

[sgiitk]

During this drop I have also gone somewhat offbeat; debt (IDFC SSI-MT), FT Dynamic PE Ratio (it is a FoF and uses both the Blue Chip and a Debt fund, changing the ratio as they go along, advantage long term capital gains), and DSPBR World Gold. As for large caps most have about the same portfolio. I also found that the IDFC SME (now Sterling) has tracked Premier very closely over the past year or so, hence as soon as the Window opens goodbye to the Sterling.

[faustus77]

Hi everybody
As personally invest directly in the stock market dont track MF schemes.
However on and off invest(for my daughter) in ELSS,HDFC top 200,etc.
As an investment how does HDFC savings assurance ten year plan compare?Not too impressed with a promised return of 8.41%.
Has anybody invested and has experience of it?
Thanks and regards

[sgiitk]

@Cayman360; Look at three years the numbers are very high. More appropriate look at five years. All in my folio are 6%+. This is with no tax liability, so is effectively about 9%. Not bad for a depression period.

[sgiitk]

Originally Posted by faustus77

Hi everybody
As personally invest directly in the stock market dont track MF schemes.....
As an investment how does HDFC savings assurance ten year plan compare?

If you have the time and guts to play the markets do so by all means. I do not and prefer the MF route with highly rated funds.

ELSS will be history once the DTC comes in. However, I think we may have another year of it since is is unlikely to come in on 1st April 2012.

The plan mentioned by you is an insurance type of product. Almost a ULIP. Check the commissions to the agent and all will be revealed!

The risk in assured returns is that the manager is likely to progressively revert to more and more debt products and GSecs in order to maintain the return.