[pradkumar]

With Moody’s and Fitch downgrading Reliance Communications (RCom) this week, I had a quick look at whether any mutual funds own RCom. Good to know that very few mutual funds, except some Reliance Mutual funds, are currently invested in RCom and that too a very small percentage of their net assets:

https://www.valueresearchonline.com/...asp?code=16501

Pradeep

[sansvk]

Originally Posted by pradkumar

With Moody's and Fitch downgrading Reliance Communications (RCom) this week, I had a quick look at whether any mutual funds own RCom. Good to know that very few mutual funds, except some Reliance Mutual funds, are currently invested in RCom and that too a very small percentage of their net assets:

https://www.valueresearchonline.com/...asp?code=16501

Pradeep

Read last week that are some Franklin debt funds which have exposure to RCom bonds.

[Pancham]

Guys I just started my SIP journey today with DSP BlackRock Tax Saver Growth Fund. I have the following questions and need your help:

1. Since its a tax saver fund, is it the same as ELSS (asking since they had the option of 12 months' investment) ?

2. Is it advisable to invest lump sum funds now in mutual funds since the market has touched 31K ?

3. What other mutual funds schemes can I look at? I am specifically looking at non-tax savers ?

I am 27, and I feel I am quite late into the scene so I am looking for long term investments.

Do help!. Thanks.

[bullrun87]

Originally Posted by Pancham

1. Since its a tax saver fund, is it the same as ELSS (asking since they had the option of 12 months' investment) ?

2. Is it advisable to invest lump sum funds now in mutual funds since the market has touched 31K ?

3. What other mutual funds schemes can I look at? I am specifically looking at non-tax savers ?

I am 27, and I feel I am quite late into the scene so I am looking for long term investments.

Do help!. Thanks.

Elss and tax saving funds are the same thing
No, it is not advisable to enter into the market via lump sum investments. Always use the sip mode.
You can have a look at some sample portfolios suggested by economic times. Please consider your target and risk appetite prior to investing and invest for atleast 5-7 years.
http://m.economictimes.com/mf/analys...w/57534230.cms

It's never too late to start investing

[Pancham]

Originally Posted by bullrun87

Elss and tax saving funds are the same thing
No, it is not advisable to enter into the market via lump sum investments. Always use the sip mode.
You can have a look at some sample portfolios suggested by economic times. Please consider your target and risk appetite prior to investing and invest for atleast 5-7 years.
http://m.economictimes.com/mf/analys...w/57534230.cms

It's never too late to start investing

Thanks buddy. I put those ET recommended funds on my watchlist.

I have one more query. What is the difference between a regular growth find and a direct growth fund?

I am unable to understand the difference between the following funds:

1. HDFC balanced fund (D)
2. HDFC balanced fund (G)
3. HDFC balanced fund- direct plan (G)

Originally Posted by Pancham

I am unable to understand the difference between the following funds:

1. HDFC balanced fund (D)
2. HDFC balanced fund (G)
3. HDFC balanced fund- direct plan (G)

The first two are regular funds, meaning investment through the financial advisers, who will be paid commission/brokerage by the fund house, resulting in NAV being less than the respective direct funds. In the direct funds, the investor invests directly with the fund house without any middle men, hence no brokerage, resulting in less expense, which gets reflected in higher NAV. Among the schemes, in the first case, there will be regular dividend payouts, whereas in the growth plan [2 & 3], the dividend gets reinvested; so no regular dividend payouts.

[carbookie]

Originally Posted by Pancham

Thanks buddy.
I am unable to understand the difference between the following funds:

1. HDFC balanced fund (D)
2. HDFC balanced fund (G)
3. HDFC balanced fund- direct plan (G)

1. Same fund with dividend option. If a dividend is declared by the fund, it will be sent to your bank account.

2. Same fund with growth option. If divided is declared by the fund, it will be added to total assets and your nav will go up.

3. Same as option 1. However, this option is when you invest directly with AMC. No trail commissions are paid to agents in this type. So nav is generally higher than option 1.

If confused, just go with option 3 for now

[carbookie]

Originally Posted by J.Ravi

Among the schemes, in the first case, there will be regular dividend payouts, whereas in the growth plan [2 & 3], the dividend gets reinvested; so no regular dividend payouts.

Small correction.

Dividend is not reinvested in these cases. In growth options, NAV goes up.

There are seperate dividend reinvestment funds, where dividend is reinvested. In these cases, units go up and NAV remains same.

The difference is important because from tax perspective, both are different.

[Pancham]

I was also reading a few articles on regular and direct plans. Many claimed that direct plans give higher returns since there is no commission involved.

What I am unable to understand is, in case of SIPs we are also buying the units of direct funds at higher NAVs, then how are the long term returns higher as compared to regular funds.

Sorry for so many noob questions.

I am asking this since I just started with a regular fund.

Edit: Another problem I am facing is whenever I am trying to invest through DSP Blackrock site directly, during e-KYC verification it is showing that my birth date does not match with the PAN details. Any clue about this? But I was able to invest through Kotak Mahindra (they are the ones who did my KYC and documentation)

Originally Posted by carbookie

There are seperate dividend reinvestment funds, where dividend is reinvested. In these cases, units go up and NAV remains same.

Yes, agreed. Growth and dividend reinvestment schemes have totally different investment strategies. Thanks for the correction, carbookie. I have all my investments in direct-growth schemes only.

[tejas08]

Guys,

Need a couple of Suggestions. I have SIPs going on in the following Mutual Funds:

1. Birla Sun Life Frontline Equity
2. Franklin India Bluechip
3. Kotak Select Focus
4. ICICI Pru Value Discovery

Furthermore, I opted for STP for Lumpsum amounts I wanted to invest. These STPs have been started in the following two funds:

1. DSP Blackrock Microcap
2. HDFC Midcap Opportunities

Queries are:

1. Are the funds diverse enough or not? If not, what would be better than this?
2. Since all the investments have been done through Financial Advisor, all of them are under Growth Plan and not under Direct Plans. Is there any way, I can convert from Growth Plan to Direct Plan without affecting by SIP process or do I have to close down current MFs and start direct plan again seperately?
3. Moving forward, I will be increasing the investments through SIP. Does is make sense to opt for two more new funds or increase the SIP investment in couple of the funds, I am already investing in.

[avinash_m]

Requesting help/advice from MF experts here. Although I started SIP investments 2-3 yrs back, I've been very conservative and still a noob when it comes to MF investments.

My current SIP portfolio looks like this:
1. ICICI Pru Value Discovery- 40% (Growth)
2. LnT India Prudence Fund - 5 %(Growth)
3. SBI BlueChip Fund - 25% (Growth)
4. UTI MNC Fund - 30% (Growth)

Lump some/Onetime:
1. SBI Magnum Multicap Fund (Growth)
2. SBI Magnum Balanced Fund (Growth)

Is this diversified enough?! Please advice.

I am ready to increase my monthly (SIP) outgo by another 10K. My risk appetite is moderate at best and I intend to continue in indirect mode (via HDFC). I also have opened an NPS (Tier 1) acct. for the additional tax benefits over section 80C.

[sansvk]

Originally Posted by tejas08

Guys,


Queries are:

1. Are the funds diverse enough or not? If not, what would be better than this?
2. Since all the investments have been done through Financial Advisor, all of them are under Growth Plan and not under Direct Plans. Is there any way, I can convert from Growth Plan to Direct Plan without affecting by SIP process or do I have to close down current MFs and start direct plan again seperately?
3. Moving forward, I will be increasing the investments through SIP. Does is make sense to opt for two more new funds or increase the SIP investment in couple of the funds, I am already investing in.

Not an expert. Just my comments.
1. All goods funds, even more impressive when the markets are rising. Keep reviewing their performance every year.
2. You mean convert from a regular growth plan to a direct growth plan? Dont think it is possible. You can stop your current SIPs, then start new ones and later switch them over. Do consider loads while switching and time taken is t+3 days.
3. Donot invest in additional funds. Its very very difficult to downsize. Increasing amount in your best performing funds would be better.

Originally Posted by avinash_m

Requesting help/advice from MF experts here. Although I started SIP investments 2-3 yrs back, I've been very conservative and still a noob when it comes to MF investments.

My current SIP portfolio looks like this:
1. ICICI Pru Value Discovery- 40% (Growth)
2. LnT India Prudence Fund - 5 %(Growth)
3. SBI BlueChip Fund - 25% (Growth)
4. UTI MNC Fund - 30% (Growth)

Lump some/Onetime:
1. SBI Magnum Multicap Fund (Growth)
2. SBI Magnum Balanced Fund (Growth)

Is this diversified enough?! Please advice.

I am ready to increase my monthly (SIP) outgo by another 10K. My risk appetite is moderate at best and I intend to continue in indirect mode (via HDFC). I also have opened an NPS (Tier 1) acct. for the additional tax benefits over section 80C.

Again good funds, consolidate all SBI funds into one if possible by switching them.
NPS at this time for me is a strict NO, just because of the taxation and restrictions. ELSS is far superior considering the returns, lockin and taxation.

[Pancham]

One thing I have observed while checking out the portfolio of the best performing funds is that almost all of them are majorly invested in the banking and finance sector.
I am not sure if this has already been discussed in this thread but what is the explanation behind this affinity towards banks and finance companies?

[pradkumar]

Budget 2017: Banking sector has a lot to gain
Big infrastructure spending push, boost to affordable housing and a fiscal deficit target of 3.2% of GDP came as a big boost to the banking sector

http://www.livemint.com/Industry/dLS...s-rallied.html

Originally Posted by Pancham

One thing I have observed while checking out the portfolio of the best performing funds is that almost all of them are majorly invested in the banking and finance sector.
I am not sure if this has already been discussed in this thread but what is the explanation behind this affinity towards banks and finance companies?