Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 9th November 2016, 09:58   #1276
BHPian
 
Join Date: Apr 2009
Location: Bangalore
Posts: 442
Thanked: 33 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by Rahulk76 View Post
I am also in the same boat. Thinking of switching from Funds India to Camonline as it allows Direct Plans viz a viz Regular Plans and in long run yes it benefits as per paper calculations.
Somehow I still prefer to invest with AMCs directly, but another option to consider is MFUtil (https://www.mfuindia.com/). MFUtil supports 25 AMCs as opposed to 16 by CAMS, however MFUtil is a bit more cumbersome to set up.

In total, there are 40-odd AMCs right now, so bear in mind that neither MFUtil nor CAMS provide full coverage and sometimes an AMC may be supported by CAMS but not MFUtil or vice versa. Mirae, a popular AMC, is covered neither by CAMS nor MFUtil.
nowwhat? is offline   Reply With Quote
Old 9th November 2016, 12:37   #1277
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Ludhiana/Chandigarh
Posts: 156
Thanked: 39 Times
Post Re: The Mutual Funds Thread

Quote:
Originally Posted by scorpion_blore View Post
Thanks for the quick reply. I am more concerned about the safety aspect of CAMS compared to FundsIndia. Is it reliable? I've been using Funds India for more than 5 years now, and it is reliable.
CAMS is the official registrar for these mutual funds houses unlike funds india which is 3rd party and earns based on transaction commission.

Even if you buy directly from mutual funds website, it is still managed by CAMS at back end and it will be visible on myCAMS. Secondly if you go through funds India, you will be allocated separate folio which will work only on Funds India. Nothing such on CAMS.

I invest through both but lately moving all my investments to CAMS mainly due to direct plans.
gupta_chd is offline   Reply With Quote
Old 9th November 2016, 22:35   #1278
Senior - BHPian
 
Rahulk76's Avatar
 
Join Date: Sep 2005
Location: PNQ
Posts: 1,132
Thanked: 204 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by gupta_chd View Post
I invest through both but lately moving all my investments to CAMS mainly due to direct plans.
Appreciate if you can elaborate a bit as to how . It might help me too

Cheers
Rahul
Rahulk76 is offline   Reply With Quote
Old 15th November 2016, 14:19   #1279
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Ludhiana/Chandigarh
Posts: 156
Thanked: 39 Times
Post Re: The Mutual Funds Thread

Quote:
Originally Posted by Rahulk76 View Post
Appreciate if you can elaborate a bit as to how . It might help me too

Cheers
Rahul
No rocket science here .

Just redeem your holdings which are one year or more older, you don't have to pay any income tax or exit load or any other charges. Invest the money in new fund which you want to buy, again no entry load or any other fees.
gupta_chd is offline   Reply With Quote
Old 15th November 2016, 15:29   #1280
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,806
Thanked: 1,781 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by gupta_chd View Post
No rocket science here .

Just redeem your holdings which are one year or more older, you don't have to pay any income tax or exit load or any other charges. Invest the money in new fund which you want to buy, again no entry load or any other fees.
That is like cutting off your foot because your toenail is too long

If you do that sort of thing your portfolio's value goes for a toss. So please don't.

Over the long run the profits from having an agent manage your stuff vs your managing it aren't really all that different, especially if the agent produces some value add like weekly statements etc.
hserus is online now   Reply With Quote
Old 15th November 2016, 17:09   #1281
Awaiting Email Confirmation
 
Join Date: Mar 2009
Location: ............
Posts: 3,260
Thanked: 4,210 Times
Default Re: The Mutual Funds Thread

Added ₹ 50 k each in Franklin India High Growth Companies Fund - Direct - Growth and Franklin India Prima Plus - Direct - Growth, both for long-term investment.
J.Ravi is offline   Reply With Quote
Old 15th November 2016, 19:05   #1282
BHPian
 
Join Date: Apr 2009
Location: Bangalore
Posts: 442
Thanked: 33 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by J.Ravi View Post
Added ₹ 50 k each in Franklin India High Growth Companies Fund - Direct - Growth and Franklin India Prima Plus - Direct - Growth, both for long-term investment.
Well, you certainly seem to be positive under the present circumstances given your post here and on the stocks page. Any reason for the bullishness?

I'm just curious as all the pundits seem befuddled due to demonetization, GST, Trump, etc. Moreover I am not sure of the impact of the rains as this year has been unseasonally hot here in Bangalore and we haven't seen a drop of rain in the winter months.
nowwhat? is offline   Reply With Quote
Old 15th November 2016, 19:28   #1283
BHPian
 
Aakarsh's Avatar
 
Join Date: Sep 2015
Location: Ranchi/Dehradun
Posts: 106
Thanked: 151 Times
Default Re: The Mutual Funds Thread

Today I heard a very inspiring as well as surprising story from one of my college professors. He bought 1000 shares of Eicher Motors in the year 2006 for around Rs. 8 /share. Presently, each share's price is more than Rs.21,000. Rs.8,000 turned into even more than two crores. I was literally shocked to hear that from him. Somehow I am inspired by him and willing to open a demat account and invest some of my savings in stock market.

As I am completely new to all these and have almost zero knowledge. I want some help from fellow members in choosing few penny stock companies in which I can invest, which would give me good benefits in long term.

Advices and suggestions are welcome!
Best regards
Aakarsh
Aakarsh is offline   Reply With Quote
Old 15th November 2016, 19:37   #1284
Awaiting Email Confirmation
 
Join Date: Mar 2009
Location: ............
Posts: 3,260
Thanked: 4,210 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by nowwhat? View Post
Any reason for the bullishness?
Whenever the market crashes, I start buying for long term, keep them for a few years and sell/redeem whenever the target is reached or the need arises for finance.

Last edited by J.Ravi : 15th November 2016 at 19:39.
J.Ravi is offline   Reply With Quote
Old 15th November 2016, 23:03   #1285
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Ludhiana/Chandigarh
Posts: 156
Thanked: 39 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by hserus View Post
That is like cutting off your foot because your toenail is too long

If you do that sort of thing your portfolio's value goes for a toss. So please don't.

Over the long run the profits from having an agent manage your stuff vs your managing it aren't really all that different, especially if the agent produces some value add like weekly statements etc.
Portfolio reshuffling is very important to keep it in sound health. One should review portfolio every 6 months to 1 year and weed out the unwanted funds based upon performance/future prospects/stocks distribution/fund manager credentials etc. It all varies from person to person.

I am not sure what do you refer as not to be done. Do you mean one should never ever change the fund and whatever money has been invested in one fund should always stay in there?
gupta_chd is offline   Reply With Quote
Old 15th November 2016, 23:06   #1286
Senior - BHPian
 
hserus's Avatar
 
Join Date: Sep 2014
Location: Chennai
Posts: 1,806
Thanked: 1,781 Times
Default Re: The Mutual Funds Thread

I tend to retain funds for long. The proposal was, please correct me if I am wrong, to switch your funds to direct option by redeeming all funds that are over 1 year old and opening new folios under the direct plan.

You lose all your compounding gain when you switch randomly like that - units bought at lower prices etc that'd be worth much more as the market rises. Instead you have to enter the market with a large sum placed into each MF at whatever market rate is there on the day you decide to do this.

Reviewing portfolios and pruning funds is good but 6 months to a year is way way too short a time horizon except for significant events in the fund such as an acquisition, death or resignation of the fund manager, something happens to a key scrip in the fund etc.
hserus is online now   Reply With Quote
Old 15th November 2016, 23:19   #1287
BHPian
 
Join Date: Mar 2015
Location: Calcutta
Posts: 43
Thanked: 32 Times
Default

Any advice on scripbox and whether anyone of us here has used them please?
digitalnirvana is offline   Reply With Quote
Old 16th November 2016, 01:16   #1288
Senior - BHPian
 
Join Date: Jul 2006
Location: Bombay
Posts: 1,033
Thanked: 670 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by Aakarsh View Post
Today I heard a very inspiring as well as surprising story from one of my college professors. He bought 1000 shares of Eicher Motors in the year 2006 for around Rs. 8 /share. Presently, each share's price is more than Rs.21,000. Rs.8,000 turned into even more than two crores. I was literally shocked to hear that from him. Somehow I am inspired by him and willing to open a demat account and invest some of my savings in stock market.

As I am completely new to all these and have almost zero knowledge. I want some help from fellow members in choosing few penny stock companies in which I can invest, which would give me good benefits in long term.

Advices and suggestions are welcome!
Best regards
Aakarsh
Could you please check the price of Eicher motors in 2006? It was above 250 per share, so a 1000 shares would have cost him at least 250000, definitely not 8000.

Equity does give good returns, but not everyone can identify an Eicher and even if they do, not many can hold onto the stock during the up move. Since you're a novice, I suggest you start by investing through mutual funds and when you're more aware of good quality stocks, then perhaps you could contemplate direct equity.

All the best...
Lalvaz is offline   Reply With Quote
Old 16th November 2016, 10:11   #1289
BHPian
 
Join Date: Apr 2009
Location: Bangalore
Posts: 442
Thanked: 33 Times
Default Re: The Mutual Funds Thread

Quote:
Originally Posted by hserus View Post
I tend to retain funds for long. The proposal was, please correct me if I am wrong, to switch your funds to direct option by redeeming all funds that are over 1 year old and opening new folios under the direct plan.

You lose all your compounding gain when you switch randomly like that - units bought at lower prices etc that'd be worth much more as the market rises. Instead you have to enter the market with a large sum placed into each MF at whatever market rate is there on the day you decide to do this.
Switching from Regular to Direct Plan of the same fund requires a redemption and a purchase, however you can still use the same folio.

There is no penalty at all in doing a switch for units in Equity MFs purchased over a year ago as proceeds are exempt from LTCG. Most funds also do not have an exit fee for units held over a year. On the other hand, the investor benefits from the lowered expense ratio of the Direct Plan after such a switch. I have saved a lot of money by switching over to Direct Plans and I strongly encourage others to do this too.

From a tracking perspective, it may appear that one has started from square one all over again. However ValueResearch factors in both the realized and unrealized gains to give the correct Portfolio Return, so all you have to do is look at the bottom of the page.

Quote:
Originally Posted by digitalnirvana View Post
Any advice on scripbox and whether anyone of us here has used them please?
Haven't used ScripBox, but am familiar with the concept. Earlier they would list the 4 funds they recommend, but they no longer seem to be doing it. Concepts like ScripBox make their money from trail commissions and are helpful for those who are new to mutual funds and want to get their feet wet. My only gripe is that they provide one-size-fits-all solutions which may or may not meet your needs. However if you still haven't invested in MFs, something is better than nothing and definitely you will find it far easier to go through them or FundsIndia rather than doing the initial paperwork yourself.

Quote:
Originally Posted by Lalvaz View Post
Could you please check the price of Eicher motors in 2006? It was above 250 per share, so a 1000 shares would have cost him at least 250000, definitely not 8000.

Equity does give good returns, but not everyone can identify an Eicher and even if they do, not many can hold onto the stock during the up move. Since you're a novice, I suggest you start by investing through mutual funds and when you're more aware of good quality stocks, then perhaps you could contemplate direct equity.
I have heard such apocryphal stories in stock market and real estate for a long time now.

This article from Value Research (100-bagger stocks versus 100-bagger portfolios) appears very timely.
nowwhat? is offline   Reply With Quote
Old 16th November 2016, 10:16   #1290
BHPian
 
gupta_chd's Avatar
 
Join Date: Nov 2009
Location: Ludhiana/Chandigarh
Posts: 156
Thanked: 39 Times
Post Re: The Mutual Funds Thread

Quote:
Originally Posted by hserus View Post
You lose all your compounding gain when you switch randomly like that - units bought at lower prices etc that'd be worth much more as the market rises. Instead you have to enter the market with a large sum placed into each MF at whatever market rate is there on the day you decide to do this.
There is no compounding gain or loss in switching from one fund to another either from regular to regular plan of different funds or from regular to direct plan of same fund. In the latter case, you will eventually gain with the passage of time as there would be savings on broker commission and other charges of about 0.5-1%.

In case of switch from regular to regular, gain or loss would depend on the performance of funds after the switch.
gupta_chd is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Team-Bhp thread of shame (Pray you arent mentioned in this thread ) speedsatya Street Experiences 10 24th February 2012 14:27
Aravali Auto Gurgaon (Chevrolet Dealer) - embezzled the funds given as booking amount SushantV Indian Car Dealerships 15 18th February 2012 00:16


All times are GMT +5.5. The time now is 20:34.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks