Team-BHP - The Mutual Funds Thread

Quote:

Originally Posted by The Rationalist (Post 4270122)

For MF Utility ,everything from account opening to paying for funds can be done electronically, not even a single paper needs to be filled. It's so easy. And every purchase can be done through their application, which is very user friendly. I can help you step by step if needed.

So what are the fees? How do they cover their expenses?

Does account opening requires any paper work?

Quote:

Originally Posted by JMaruru (Post 4270250)

So what are the fees? How do they cover their expenses?

Does account opening requires any paper work?

No fees! It is a portal by AMFI! Why should they ask for fees for their own product? Different mutual fund houses have joined together to give a common platform for investors. That's it. Zero paper work.
1. Open a e-CAN online
2. Upload KYC Documents
Once the CAN is approved ask for online access.
Start investing!

Quote:

Originally Posted by pradkumar (Post 4270057)

Zerodha holds the funds in demat form. In addition to the yearly, Rs. 900 there could be some charges when you exit funds because they are held in demat form. I don't know how much these charges are. There are no advantages to holding mutual funds in demat form.

First of all, thanks a lot for all of you. Your patience is appreciated. :thumbs up

Effectively, it's better to buy Direct MFs from MF Utility than from Zerodha. Right?

MF Utility keeps evolving. The recently released CaST (Create and Schedule Transactions) and CaRT (Create and Retain Transactions) are very useful. These features have been rolled out in the mobile app (Available for Android & iOS) as well.

Quote:

Originally Posted by JMaruru (Post 4270250)

So what are the fees? How do they cover their expenses?

MFU is a group of Mutual Fund Houses formed to facilitate investors to buy Direct Plans of all the constituent MF Houses under a single umbrella.
Although these are direct plans, yet there are certain expenses incurred for the management of the funds. This is reflected in the Expense Ratio of the respective funds. One would see that the expense ratio of Direct Plans is much lesser than that of the corresponding Distributours routed Plans or the General Growth/Dividend Plans. Part of these expenses recovered from the investors is pooled in to manage MFU.

Yes please. Buying from MF Utility is better because you get the support of CAMS, Karvy, etc. if needed.

Pradeep

Quote:

Originally Posted by autospeaker (Post 4270647)

First of all, thanks a lot for all of you. Your patience is appreciated. :thumbs up

Effectively, it's better to buy Direct MFs from MF Utility than from Zerodha. Right?

Is it advisable to invest in liquid funds or ultra short interval debt funds instead of losing interest in a savings account ? Any suggestions on rate of return in these schemes

Yes. Especially when savings account interest has come down to 3.5% now.

Liquid funds typically are giving a return of 6-6.5%.
USB funds are giving 7-8% returns. USB funds may have an exit load.

Quote:

Originally Posted by fergus (Post 4272154)

Is it advisable to invest in liquid funds or ultra short interval debt funds instead of losing interest in a savings account ? Any suggestions on rate of return in these schemes

Quote:

Originally Posted by pradkumar (Post 4271928)

Yes please. Buying from MF Utility is better because you get the support of CAMS, Karvy, etc. if needed.

Can you please explain how we get support of CAMS etc? I just successfully got the eCAN registered with MFU.

When I go to buy a MF from MFUOnline->Transaction->Purchase->Transaction details, it only lists regular plans. When filtered for Plan Type as Direct, it lists "No Data to display".

I tried this for ICICI, HDFC and SBI funds.

What am I missing? Because Direct plans are THE reason why we opt for MFU and now I cannot see any under transact.

EDIT: Please ignore. I found out that I first have to select "Direct" option under ARN details, and then it lists just the direct plans.

A good move by SEBI as list of funds are ever growing. But not sure how seamless the merger of existing funds would turn out to be. Would investors get to choose?

Iam planning to switch from Birla sunlife frontline equity fund to JM core 11 fund. Both are large cap funds and JM core 11 gives better returns. But the asset value is only 32 crores. Any feedback?

Questions about KYC.

I noticed most AMCs seem to restrict the amounts allowed for SIPs if only eKYC is done. An in-person KYC is suggested to remove that restriction.

1. Is this true?
2. Are KYCs reusable across AMCs? Doing multiple in-person KYCs is a huge waste of time.

Quote:

Originally Posted by ventoman (Post 4282715)

A good move by SEBI as list of funds are ever growing. But not sure how seamless the merger of existing funds would turn out to be. Would investors get to choose?

Standard categorisation for fund types is good.

Restricting fund houses to one fund per category is anti-investor. Why fund houses should not be allowed to launch funds based on style? For example, an aggressive Midcap fund vs a passive Midcap fund (with more number of stocks). Or value based large-cap fund vs a growth oriented aggressive focussed large-cap fund? Not a good move, IMHO.

Quote:

Originally Posted by Chetan_Rao (Post 4282982)

True. Investmet is limited to 50000 per year for each MF. SIP or lumpsum.
Get the in-person KYC done through CAMS or Karvi, it is valid across all the fund houses.