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Old 22nd March 2017, 10:36   #1411
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Default Re: The Mutual Funds Thread

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Originally Posted by sgiitk View Post
As far as I am concerned, the one thing I avoid is the NFOs.
Curious to know why? If the manager has a good track record, and the sector(s) of investment is to your liking?
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Also, I do not invest in FMPs.
I too do not invest in FMPs now. During 2013 it was one of my preferred instruments.
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Old 22nd March 2017, 14:58   #1412
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Default Re: The Mutual Funds Thread

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Curious to know why? If the manager has a good track record, and the sector(s) of investment is to your liking?
Some reasons:
1. Very rare to see a new concept.
2. Any NFO will normally have a period where the return will be zero or negative.
3. A known devil is better than an unknown angel.
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Old 22nd March 2017, 18:34   #1413
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Default Re: The Mutual Funds Thread

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Curious to know why? If the manager has a good track record, and the sector(s) of investment is to your liking?
Why invest somewhere with no track record, when it gives no additional benefits over any existing fund?
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Old 22nd March 2017, 19:50   #1414
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Default Re: The Mutual Funds Thread

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Why invest somewhere with no track record, when it gives no additional benefits over any existing fund?
I would guess since the expenses in the initial period would be low and since the attention that would be given to a new fund would be significantly higher. The manager has the pressure to maintain his track record.
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Old 22nd March 2017, 21:33   #1415
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Default Re: The Mutual Funds Thread

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I would guess since the expenses in the initial period would be low and since the attention that would be given to a new fund would be significantly higher. The manager has the pressure to maintain his track record.
Why would you assume that expense is lower in new funds? In fact, AMCs may offer extra incentives to distributors for selling NFOs. Add advertising expenses for making a new fund popular.

So, on the contrary, the expense ratio is in fact higher for lower AuM funds! As the AuM increases, expense ratio does down.

Regards,
Saket.
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Old 23rd March 2017, 14:34   #1416
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Default Re: The Mutual Funds Thread

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I took one big exercise last week to select and rank all categories of equity diversified funds based on consistent return over long period of time.
Thanks a lot for the list

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Originally Posted by swiftnfurious View Post
Has anyone invested into Reliance Money Manager fund?
I too am interested in this - did you go ahead with it?

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Originally Posted by saket77 View Post
Hi!

It's an ultra short term debt fund. Not totally risk free but ultra short term is the way to go in the current scenario. It's a fair balance between risk and return for the time being.

<snip>

Redemptions in both funds will take one business day (credit of funds on next working day) if order is placed before 3 pm; so you can place your idle funds in such funds.

Regards,
Saket.
So how is the debit card used? can't I use it like a normal debit card where money is available on the tap?

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Originally Posted by born_free View Post

Coming to your your query, for a time horizon of 2-3 years investing in equity mutual funds would be risky, as the returns can be unpredictable. If you see the analysis I had done, 3 years returns have been amazing, and precisely for this reason I would not expect similar returns in next 3 years from equity mutual funds though I can be wrong. Equity mutual funds are great choice for period of 7 or more years and that too in SIP mode.
Thanks again !
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Old 23rd March 2017, 16:50   #1417
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Default Re: The Mutual Funds Thread

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...I too am interested in this - did you go ahead with it?

So how is the debit card used? can't I use it like a normal debit card where money is available on the tap?...
Not yet, will be doing it from Apr 2017. The debit card is just like the normal one, but with a cap on transaction of 50K or 50% of the total investment. If you want more than the above amount, you'll have to redeem the fund into your bank account and then use it.
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Old 23rd March 2017, 16:58   #1418
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Default Re: The Mutual Funds Thread

Gurus,

A very very basic question from me. I see people are talking about maintaining portfolios and such. So am curios to know

1. What do you mean by portfolios? Are they simply different types of MF's?
2. How do you all manage to maintain them? Is there any person who manages all the funds for you or do you take care of it themselves?

I seriously am bad at understanding this and if questions comes across as borderline stupid please do forgive me!
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Old 23rd March 2017, 18:48   #1419
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Default Re: The Mutual Funds Thread

I've been a saver more than an investor, but I guess it's time to invest my savings because inflation is devaluing my savings each day.

That said, I realize I probably don't have the time or the mind-space to be a full-time investor myself, understanding nuances and transacting regularly. I would prefer a professional to handle my finances, and be glad to pay reasonable fees for services rendered.

What's a good way to evaluate options? Any recommendations?
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Old 23rd March 2017, 19:47   #1420
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Default Re: The Mutual Funds Thread

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Originally Posted by Chetan_Rao View Post
What's a good way to evaluate options? Any recommendations?
Get a SEBI registered financial adviser:
1. Who is not associated with a specific fund house.
2. Who charges a fixed amount and not percentage of your profit
3. Who helps you to review the portfolio at regular intervals.

Have a look at:
http://www.finvin.in/
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Old 23rd March 2017, 22:51   #1421
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Default Re: The Mutual Funds Thread

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Originally Posted by TorqueyTechie View Post
1. What do you mean by portfolios? Are they simply different types of MF's?
Though you asked your question to gurus, and I'm nowhere close to being a guru, but will try to answer. A portfolio could refer to asset portfolio, which would mean a collection of different kind of assets - real estate, direct equity holdings, gold, mutual funds etc.
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Originally Posted by TorqueyTechie View Post
2. How do you all manage to maintain them? Is there any person who manages all the funds for you or do you take care of it themselves?
Well, it depends. One could start with an advisor and learn along the way, or try reading up stuff and go DIY. I tend to stick to DIY, because of two reasons:
- Nobody loves your money as much as you do
- More often than not, there is a conflict of interest, with the advisor suggesting something that is beneficial to them (stuff like NFOs, which have higher sales commission).
Quote:
Originally Posted by Chetan_Rao View Post
That said, I realize I probably don't have the time or the mind-space to be a full-time investor myself, understanding nuances and transacting regularly. I would prefer a professional to handle my finances, and be glad to pay reasonable fees for services rendered.
What's a good way to evaluate options? Any recommendations?
Like I said earlier, it's difficult to find good advisor because usually their interests are different from yours. While searching for an advisor:
- Look for a fee based advisor/service and not based on commission (reduces conflict on interest).
- Look for an advisor that lets you invest in direct mutual funds, so that you don't pay trail commissions and have a clear idea about how much his/her advice costs you.

I haven't tried, but there are robo-advisory services as well. Some (scripbox) enable you to buy non-direct funds (and hence earn annual trail commission) and some (Invezta) buy direct funds and charge you an advisory fee. If it comes to choosing between a competent robot vs. incompetent advisors (I have tried Citi and ICICI), I'm inclined to choose the competent robot. A competent human advisor would be much better, but they are very hard to find.

EDIT: You may find these links useful:
https://www.valueresearchonline.com/....asp?str=31937
http://www.livemint.com/Money/MGNQT2...s-for-you.html

Last edited by Su-47 : 23rd March 2017 at 22:57. Reason: Added some links
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Old 23rd March 2017, 22:59   #1422
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Default Re: The Mutual Funds Thread

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Originally Posted by Su-47 View Post
Though you asked your question to gurus, and I'm nowhere close to being a guru, but will try to answer. A portfolio could refer to asset portfolio, which would mean a collection of different kind of assets - real estate, direct equity holdings, gold, mutual funds etc.

Well, it depends. One could start with an advisor and learn along the way, or try reading up stuff and go DIY. I tend to stick to DIY, because of two reasons:
- Nobody loves your money as much as you do
- More often than not, there is a conflict of interest, with the advisor suggesting something that is beneficial to them (stuff like NFOs, which have higher sales commission).
Thanks Su-47 for the reply. Now if I want to invest in some ELSS schemes how do I go about it? Would I be able to invest online or should I visit some bank/financial institutions and take their help?

I would be able to invest close to 50k per year under this ELSS. So would it be prudent to go with ELSS only or to diversify? What are my options?
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Old 23rd March 2017, 23:23   #1423
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Default Re: The Mutual Funds Thread

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Originally Posted by TorqueyTechie View Post
Thanks Su-47 for the reply. Now if I want to invest in some ELSS schemes how do I go about it? Would I be able to invest online or should I visit some bank/financial institutions and take their help?

I would be able to invest close to 50k per year under this ELSS. So would it be prudent to go with ELSS only or to diversify? What are my options?
Presume you want to go the ELSS route because you are interested in 80C tax savings. If not, why lock in the money for three years?

Some mutual fund companies allow creation of a folio online (Birla Sunlife and Qunatum are examples). I'm assuming you haven't gone through the KYC process yet, but if you are already KYC compliant, online investment should be pretty smooth. Even if you are not KYC compliant, have heard that EKYC using Aadhar is possible now, and allows you to invest quickly. You could go via your bank, or a platform like ICICIdirect, but they charge trail commission, wherein the mutual fund company pays them about 1% every year as the investment came through them.
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Old 23rd March 2017, 23:56   #1424
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Default Re: The Mutual Funds Thread

^ In fact, there's more to it. Almost all funds pass 1.5% to 1.75% to distributors upfront if the funds come from a client who is not a resident of top-15 cities of India as categorised by AMFI. There could be more upfront commission payable to distributors.
So, there's cost involved if you buy a mutual fund from a distributor. The difference is more felt if you stay invested for more than 5-7 years. So, go through a broker only if you know that his expert advice will fetch you more gains even after these commissions payable to them.

Regards.
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Old 24th March 2017, 19:26   #1425
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Default Re: The Mutual Funds Thread

The SIP extension (basically it is setting up a new SIP) on Franklin Templeton online portal is quite cumbersome process.
Had to make a couple of calls to get support team's help to figure out how to do it.

In contrast the DSP portal seems much better and also offers you easier options to extend the SIP with the same URN.

What has been other forum member's experience?
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