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Old 29th November 2016, 20:37   #1321
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Default Re: The Mutual Funds Thread

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Originally Posted by roadjourno View Post
Ofcourse that is one of the options across MF's. My main point was about CAN (There are options to add multiple bank accounts and currently i gave 1 and uploaded necessary documents.)
You can definitely configure multiple bank accounts as long as the KYC docs are in place.

Only one account for a particular sip though - you can't fix it like take 50% of the amount from SBI and another 50% from Axis Bank.

You can say "start sip x with rs 2500 from sbi, and sip y with 2500 from Axis"
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Old 1st December 2016, 21:18   #1322
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I'm new to the debt fund market and I can't quite figure out how VRO ratings work with debt funds.

With equity funds, there is usually a strong correlation between consistent performance over the years and VRO rating.

With debt funds I see that is not the case.

HDFC Income Fund - 2 stars
ICICI Prudential Income Fund - 3 stars

While 5-star rated plans like Birla SL Treasury Optimizer have ranks between 25-50. Does it have to do with the credit quality of the funds' holdings?
If you figure things out, don't forget to let me know

Many years ago when home loan interest rates were 11%+, I invested in a Dynamic Bond fund based on a strong recommendation from someone I know. That Dynamic Bond fund gave me less yield than an FD, so based on what little understanding I had, I also invested in a Gilt fund on the side and that gave me better returns than the Dynamic Bond fund. After a year or so, I exited both as I realized by then that I am in over my head. It still puzzles me how come the Dynamic Bond fund from the same fund house did not do what I did. By the way, that fund is rated 4 stars by Value Research and 5 stars by Moneycontrol, 1-year return is 18.45% and category return is 15.78% outperforming its category by 2.67%. Gilt funds have done exceedingly well over the past year, no doubt interest rates will go lower, but by how much?

Rules by SEBI in the debt market are very stringent. Debt funds can only invest in A (or higher) rated securities, bank deposits and so on and are limited to 10% of unrated debt. One would assume some uniformity in rates, but I see for instance that not all AAA rated bonds, even those issued on the same month, have the same coupon rate. Wonder how that works. Some debt funds invest a huge chunk in bank FDs, but we all know bulk deposit rates are usually lower than those that retail investors get up to a limit. Also I wonder whether these top performing funds invest more in higher risk debt to outperform others. If not, what is the magic behind their success?

Too many questions, but I have no answers. Before I get my feet wet in debt funds again, I would probably put my money in Balanced and Artbitrage funds.
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Old 1st December 2016, 23:03   #1323
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Default Re: The Mutual Funds Thread

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Originally Posted by hserus View Post
You can definitely configure multiple bank accounts as long as the KYC docs are in place.

Only one account for a particular sip though - you can't fix it like take 50% of the amount from SBI and another 50% from Axis Bank.

You can say "start sip x with rs 2500 from sbi, and sip y with 2500 from Axis"
Ok thanks for the information. I got my uid created on mfuonline.com and logged into it. Its plainjane UI which only gives details of your holding. Now one place to buy.

Naive question. Is small/midcap market overated right now and debt fund like BSL treasury optimizer good place to park excess money for 2-3 years?
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Old 2nd December 2016, 19:41   #1324
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Default Re: The Mutual Funds Thread

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Originally Posted by nowwhat? View Post
Too many questions, but I have no answers. Before I get my feet wet in debt funds again, I would probably put my money in Balanced and Artbitrage funds.
I didn't realize debt funds were that inscrutable.

I want to wean my parents off FDs, in the light of lowering interest rates. They're not used to having their retirement savings fluctuate daily and I don't want to put them in the position, hence avoiding funds with any exposure to equity. Something that can give reasonably assured 8-9% CAGR would be great for them.

Edit: If they were to go the balanced funds route, Birla Sun Life Monthly Income Plan II - Wealth 25/Savings 5 seem good depending on their risk appetite. Any advice in this category?

Last edited by anku94 : 2nd December 2016 at 20:01.
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Old 2nd December 2016, 20:04   #1325
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Default Re: The Mutual Funds Thread

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Originally Posted by anku94 View Post
I didn't realize debt funds were that inscrutable.

I want to wean my parents off FDs, in the light of lowering interest rates. They're not used to having their retirement savings fluctuate daily and I don't want to put them in the position, hence avoiding funds with any exposure to equity. Something that can give reasonably assured 8-9% CAGR would be great for them.
If your parents come under tax bracket then tax free bonds are quite good option, especially compared to FDs. You can buy/sell them on the NSE/BSE and you get an assured dividend every year that is tax free. I got some when they were offered so I am getting around 8.9% returns tax free, but if you buy now you will still get around 7-7.5% returns (depends on the bond) the good thing about these bonds is that you still maintain your liquidity as you can exit anytime just by selling on the bourses. These are also guaranteed by the govt so quite safe for investment.
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Old 3rd December 2016, 10:53   #1326
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I just now submitted my online request for redemption of my entire investment in Birla Sun Life MF from 2 schemes, viz., BSL Frontline Equity Fund and BSL Top 100 Fund - both Growth-Direct - as their performances were less than half of Franklin India Prima Plus and High Growth Companies Fund in the last 2 years. I will invest the redemption proceeds in Franklin India schemes later.
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Old 3rd December 2016, 11:06   #1327
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Default Re: The Mutual Funds Thread

I was expecting some arbitrage funds to deliver, and the IDFC Arbitrage Plus has delivered this month. Dividend 1.595% in one month. I still say that Arbitrage Funds are a good alternate to FDs if you have bit of taste for risks. ICICI Equity Arbitrage is holding to it 0.08% or so per month. With tax benefits even 8% pa is a very good deal, as compared to the FDRs, or even money market funds. Remember the lock in is only 12 months.
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Old 4th December 2016, 12:07   #1328
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I registered my first two SIPs today with below mutual funds

-> ICICI Prudential Value Discovery Fund - Direct Plan - Growth
-> SBI Blue Chip Fund - Direct Plan - Growth

I went to the website of both ICICI and SBI and started setting up SIPs as first time investor.

Being first time investor, I am confused on following points -

-> In case of SBI, I have a dedicated login id using which I can access the portal, but I can not see the SIP that I have just set up after confirming biller in my bank account. How to check the SIP scheme that I have just purchased (Though the first deduction of instalment will be from January 2017 onwards).
Also for SBI, I have received the email after registering for the first time stating that "You are requested to kindly submit the duly signed registration form to nearest SBI Mutual Fund branch. " Is this necessary? Going to branch physically? Ain't the process should be complete online only? Will my SIP not start without going to their branch?

-> In case of ICICI, I started by clicking on first time investor and set up my SIP. But after confimation of biller and completing everything, I am unable to figure out on how to log in to which portal that will show complete details of my SIP! When I try to login using the transaction number that I have been mailed (I believe it is my folio number), the page says, my phone and email are not registered with them and I need to make a written request.

-> I also tried setting up another SIP with Birla Sun Life Bal. 95 Fund (G), after I click finish button with complete details, it throws up an error 'There is an error processing this transaction, please call customer care to report error'

-> Customer care service is not available on sundays of either of these fund houses.

-> Have I made an incorrect start or missing somewhere?

PS - What if I want to cancel my just started SIPs? Will be possible by simply removing these from my billers list of bank account? Or any ither procedure is to be followed (Just for info, I am not thinking of cancelling it).

Last edited by bluevolt : 4th December 2016 at 12:09.
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Old 4th December 2016, 13:16   #1329
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Default Re: The Mutual Funds Thread

SBI needs you to submit the form and kyc documents manually so they can verify your kyc and set up your folio.

As for the other one at Birla, not at all sure what error so yes contact their customer support tomorrow.
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Old 4th December 2016, 13:23   #1330
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Default Re: The Mutual Funds Thread

Not fully sure if you had existing folios in any of the AMCs you mention. But it is important to note that iSIPs are still relatively new depending on which AMC you are dealing with.

I initially invest a small amount as a lump sum to open the folio and only once I am able to log in to my account do I set up an iSIP. Only once you invest some amount is a folio created, not before.

The one process that still absolutely works for all AMCs and all banks is if you mail them the SIP form via snail mail.

Quote:
Originally Posted by bluevolt View Post
-> In case of SBI, I have a dedicated login id using which I can access the portal, but I can not see the SIP that I have just set up after confirming biller in my bank account. How to check the SIP scheme that I have just purchased (Though the first deduction of instalment will be from January 2017 onwards).
Also for SBI, I have received the email after registering for the first time stating that "You are requested to kindly submit the duly signed registration form to nearest SBI Mutual Fund branch. " Is this necessary? Going to branch physically? Ain't the process should be complete online only? Will my SIP not start without going to their branch?
Is this a new folio? Then they may need the original application form one time to open the folio. You can send this form to them via snail mail if your In Person Verification (IPV) has already been done with at least one other AMC.

Quote:
Originally Posted by bluevolt View Post
-> In case of ICICI, I started by clicking on first time investor and set up my SIP. But after confimation of biller and completing everything, I am unable to figure out on how to log in to which portal that will show complete details of my SIP! When I try to login using the transaction number that I have been mailed (I believe it is my folio number), the page says, my phone and email are not registered with them and I need to make a written request.
I am not sure you have the folio number, it may just be a transaction reference. Your folio number will show up in your first statement after which you can use that folio number to register on the website.

Quote:
Originally Posted by bluevolt View Post
-> I also tried setting up another SIP with Birla Sun Life Bal. 95 Fund (G), after I click finish button with complete details, it throws up an error 'There is an error processing this transaction, please call customer care to report error'

-> Customer care service is not available on sundays of either of these fund houses.

-> Have I made an incorrect start or missing somewhere?
Don't think any AMC has customer service on Sunday.

Quote:
Originally Posted by bluevolt View Post
PS - What if I want to cancel my just started SIPs? Will be possible by simply removing these from my billers list of bank account? Or any ither procedure is to be followed (Just for info, I am not thinking of cancelling it).
Some AMC websites do not show registered iSIPs. In that case, best way to cancel an iSIP is to inform the AMC via email.

You can also stop the iSIP by removing the biller, but based on my experience AMCs get very cross if you do this. I think they may incur some fees from the bank in the process.
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Old 4th December 2016, 15:57   #1331
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Default Re: The Mutual Funds Thread

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Originally Posted by sgiitk View Post
I was expecting some arbitrage funds to deliver, and the IDFC Arbitrage Plus has delivered this month. Dividend 1.595% in one month. I still say that Arbitrage Funds are a good alternate to FDs if you have bit of taste for risks. ICICI Equity Arbitrage is holding to it 0.08% or so per month. With tax benefits even 8% pa is a very good deal, as compared to the FDRs, or even money market funds. Remember the lock in is only 12 months.
Oops, other fund are 0.7-0.8% per month. Not 0.08% since that will become 0.96% pa, which is rubbish. Please correct in your mind.
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Old 4th December 2016, 17:23   #1332
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Default Re: The Mutual Funds Thread

I am not sure if this has been discussed - but is Demonetisation going to have any effect on Mutual Fund returns? (negative mainly)
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Old 4th December 2016, 18:23   #1333
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I am not sure if this has been discussed - but is Demonetisation going to have any effect on Mutual Fund returns? (negative mainly)
It would depend upon the type of mutual fund. Debt funds, over a period, would post lower returns, since interest rates would come down. ( or is expected to come down)
Equity funds returns would depend upon the Market, and that is something that none of us can predict today.
Balanced funds, which invest in both equity and debt, may post slightly lower returns, as compared to if there was no demonetisation.
Speciality funds would go as the market of those specialities goes.
There may be no change in returns for FMPs since they would have been back to back placed.
However, we have discussed only returns. The market value would differ. eg. NAV for funds invested in debt before monetisation would increase, since these instruments would have an higher interest rate.
In my opinion.
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Old 4th December 2016, 20:00   #1334
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Default Re: The Mutual Funds Thread

MF fund managers have put in huge money in November:
http://www.moneycontrol.com/news/mf-...r_8061041.html

Is it a good time to make some good lumpsum investment in equity MFs?
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Old 5th December 2016, 09:58   #1335
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I am not sure if this has been discussed - but is Demonetisation going to have any effect on Mutual Fund returns? (negative mainly)
Naturally, what is an MF, it reflects the average returns for the class, with some limits. What are the limits - a cap on the holding in a single company is the main. At the moment debt (and also balanced) funds are doing well.
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