[DigitalOne]

Originally Posted by ontheroad

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?

No, don't do that. JM funds are historically very risky. They had a good run back in 2006-07, but people lost lot of money later in the crash. They never recovered from that. That's the reason for very low asset size. Peace of mind is more important than a couple of percentage points of return.

[avinash_m]

Requesting MF gurus for some guidance.

I am in the process of stopping and redeeming all my SIPs, to convert them to direct mode (MFU) from my current bank MF account. My query is, what would be the best option to invest the redeemed amount, apart from starting the SIPs via the MFU account?!
Is it better to put all that amount into a Debt MF, and later STP into an equity MF or invest respective redeemed amts (of each SIP), back into the same MF as one time lump sum!?

Would really appreciate any pointers

[Chetan_Rao]

Originally Posted by Makin Rulesz

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.

Thanks. Visiting CAMS to get this done.

[ghodlur]

Originally Posted by avinash_m

Requesting MF gurus for some guidance.

I am in the process of stopping and redeeming all my SIPs, to convert them to direct mode (MFU) from my current bank MF account. My query is, what would be the best option to invest the redeemed amount, apart from starting the SIPs via the MFU account?!
Is it better to put all that amount into a Debt MF, and later STP into an equity MF or invest respective redeemed amts (of each SIP), back into the same MF as one time lump sum!?

Would really appreciate any pointers

Instead of redeeming the SIP's (which again will depend on when was the investment done), you can stop them and start a new SIP with direct fund. You can also start a SWP from the existing SIP funds to equity funds.

Unless you have reached your goal or have a real need of the money, don't redeem the MF's.

[blorebuddy]

Originally Posted by avinash_m

Requesting MF gurus for some guidance.

I am in the process of stopping and redeeming all my SIPs, to convert them to direct mode (MFU) from my current bank MF account. My query is, what would be the best option to invest the redeemed amount, apart from starting the SIPs via the MFU account?!
Is it better to put all that amount into a Debt MF, and later STP into an equity MF or invest respective redeemed amts (of each SIP), back into the same MF as one time lump sum!?

Would really appreciate any pointers

I would recommend the following
1. Think about the tax angle before redeeming. Any equity fund redemption will attract short term capital gains
2. See whether you can bring the old folio (regular) in to the new MFU account. If possible then do this then switch from regular to direct.You can also switch first and then bring the folio
3. Just switch from regular to new and keep the existing folio as is. Use new MFU account for any purchases going forward.
4. Sell your regular units and wait for the T+3 to get your money and reinvest through your new MFU Acc. You can also decide to rebalance the funds in this processing

[avinash_m]

Thanks for the quick response folks!

Instead of redeeming the SIP's (which again will depend on when was the investment done), you can stop them and start a new SIP with direct fund.

@ghodlur - So what you mean is just keep all that amount parked there, as is (post stopping the SIPs). Wouldn't that work like a one-time lump sum investment into a fund wherein, one just buys (onetime) whatever no. of units possible (at the prevailing NAV) and depending on when I do decide to redeem, the NAV at the time will decide the return, correct? So unlike SIP, no new units are purchased from here on (after stopped SIP), only existing units appreciate with NAV appreciation? Sorry for the long winded question; am still a noob in this matter.

You can also start a SWP from the existing SIP funds to equity funds.

Do you mean starting a 'STP'? Because SWP is withdrawal only, which goes against my savings need?! If STP, and if I start a new direct SIP on the same MF, can I transfer from regular to direct scheme within same MF?

Please enlighten.

2. See whether you can bring the old folio (regular) in to the new MFU account. If possible then do this then switch from regular to direct.You can also switch first and then bring the folio
4. Sell your regular units and wait for the T+3 to get your money and reinvest through your new MFU Acc. You can also decide to rebalance the funds in this processing

While I will explore the folio transfer aspect, wont the redemption and re-investment attract short term gains tax? What is the duration of between redemption and reinvestment, to avoid gains tax?

[ghodlur]

Originally Posted by avinash_m

@ghodlur - So what you mean is just keep all that amount parked there, as is (post stopping the SIPs). Wouldn't that work like a one-time lump sum investment into a fund wherein, one just buys (onetime) whatever no. of units possible (at the prevailing NAV) and depending on when I do decide to redeem, the NAV at the time will decide the return, correct? So unlike SIP, no new units are purchased from here on (after stopped SIP), only existing units appreciate with NAV appreciation? Sorry for the long winded question; am still a noob in this matter.

Thats correct. Since you have done investments in the form of SIP, you can withdraw/redeem only your first investment equivalent units depending on whether you have completed one year to get the returns tax free. If you are Ok to pay the tax on the investment amount + returns you can redeem all the accumulated units till date in one shot even today.

Do you mean starting a 'STP'? Because SWP is withdrawal only, which goes against my savings need?! If STP, and if I start a new direct SIP on the same MF, can I transfer from regular to direct scheme within same MF?

Yes, I meant STP. You should be able to do a STP from a regular scheme to a direct scheme if the MF house allows the same. Generally the STP is allowed from a debt fund to a equity fund but some MF houses do allow STP between equity funds.

If you don't mind I would like to suggest that you get in touch with a good Certified Financial Planner who can help you better with your investments. Your investments should be goal defined and not random.

[TorqueyTechie]

Hello Gurus,

I am a complete novice in investing in MF. So need your help. I am planning to invest 5000rs monthly through SIP under ELSS scheme. I was looking at investing in either Reliance Tax Saver (ELSS) Fund or Aditya Birla SL Tax Relief '96(G) based purely on the fund performance .

1. Is this the right time to start investing considering that we are in the second half of the financial year cycle.
2. Are they good?
3. Is there any other better ELSS scheme?
4. If I up my monthly investment to 10000 and divide the amount equally between ELSS and regular MF's, which ones would be good?

Suggestions are very much needed.

[Pancham]

Originally Posted by TorqueyTechie

Hello Gurus,



I am a complete novice in investing in MF. So need your help. I am planning to invest 5000rs monthly through SIP under ELSS scheme. I was looking at investing in either Reliance Tax Saver (ELSS) Fund or Aditya Birla SL Tax Relief '96(G) based purely on the fund performance .



1. Is this the right time to start investing considering that we are in the second half of the financial year cycle.

2. Are they good?

3. Is there any other better ELSS scheme?

4. If I up my monthly investment to 10000 and divide the amount equally between ELSS and regular MF's, which ones would be good?



Suggestions are very much needed.

The Aditya Birla tax saver mentioned by you is really good. Another good scheme ja DSP black tax saver. You may invest the entire 10k on ELSS. For me the ELSS schemes are giving me better returns. All ELSS schemes are regular MFs if you take them out within 3 years of investment.

[TorqueyTechie]

Originally Posted by Pancham

The Aditya Birla tax saver mentioned by you is really good. Another good scheme ja DSP black tax saver. You may invest the entire 10k on ELSS. For me the ELSS schemes are giving me better returns. All ELSS schemes are regular MFs if you take them out within 3 years of investment.

Thanks Pancham for the suggestion. I am keen on investing only 5k on ELSS as that will suffice towards 80c quota for me. The other 5k I can put in some regular MF's (preferably hybrid ones). Does both ELSS or any hybrid MF have a minimum 3 year lock in period or is it 5 year?

[srvm]

Originally Posted by TorqueyTechie

Thanks Pancham for the suggestion. I am keen on investing only 5k on ELSS as that will suffice towards 80c quota for me. The other 5k I can put in some regular MF's (preferably hybrid ones). Does both ELSS or any hybrid MF have a minimum 3 year lock in period or is it 5 year?

ELSS have lock-in period of 3 years. Other mutual funds do not have lock-in period, as such. Most funds do have an exit load if you redeem units within some period after investment (first-in first-out policy if you have bought units at various points in time). Details of exit load can be found in respective MF KIM document (KIM = Key Information Memorandum).

I'm not sure what you mean by hybrid fund? Did you mean Balanced fund? If so, HDFC Balanced Fund has been doing steady & good over last 4-5 years.

[ontheroad]

Originally Posted by DigitalOne

No, don't do that. JM funds are historically very risky. They had a good run back in 2006-07, but people lost lot of money later in the crash. They never recovered from that. That's the reason for very low asset size. Peace of mind is more important than a couple of percentage points of return.

Thanks DigitalOne. What is your take on Mirae asset India opportunities fund. I would like to start an SIP in a good large cap fund. Any recommendations?

[TorqueyTechie]

Originally Posted by srvm

ELSS have lock-in period of 3 years. Other mutual funds do not have lock-in period, as such. Most funds do have an exit load if you redeem units within some period after investment (first-in first-out policy if you have bought units at various points in time). Details of exit load can be found in respective MF KIM document (KIM = Key Information Memorandum).

I'm not sure what you mean by hybrid fund? Did you mean Balanced fund? If so, HDFC Balanced Fund has been doing steady & good over last 4-5 years.

Thanks srvm. Yes by hybrid I meant balanced fund only. My risk appetite is low and hence I am thinking of going for this which gives best of both world hopefully.

So based on suggestions I am thinking of going for Aditya birla tax saver for ELSS . For balanced fund, apart from HDFC how is the SBI balanced fund?

[Abhi_abarth]

Need advice. I am a total dummy when it comes to Mutual funds and don't even know how they function. The recent ad (mutual funds sahi hein) had made me to think about them. I have close to 18 K which i have set aside for my Baleno insurance renewal which will be due in May 2018. Is there a short term fund where I can invest until May 2018 with least risk ? also, can it help me from tax deductions ?

I am sorry, if the questions are all out of the park but I have no knowledge on these at all.

[srvm]

Originally Posted by TorqueyTechie

Thanks srvm. Yes by hybrid I meant balanced fund only. My risk appetite is low and hence I am thinking of going for this which gives best of both world hopefully.

So based on suggestions I am thinking of going for Aditya birla tax saver for ELSS . For balanced fund, apart from HDFC how is the SBI balanced fund?

For ELSS, if you have decided on investing with ABSL AMC then you could either go with (a) Aditya Birla Sun Life Tax Plan or (b) Aditya Birla Sun Life Tax Relief 96. Both are ok. Not much to separate them.

For Balanced fund, other than HDFC Balanced fund, you could also go with ICICI Prudential Balanced Fund. SBI Magnum Balanced Fund hasn't been performing well as compared to the above two.

Hope this helps.