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Hi, friends need an information related to KYC requirements for an NRI. Recently my residence status changed to NRI and I have already redeemed all my previous investments.

Now I would like to restart mutual fund investments, to enable this, what is the KYC requirements? Should I submit the KYC documents to individual fund houses, CAMS and Karvy separately or I can complete the formality by submitting the documents to anyone?

Also, I have an account with Fundsindia with residency status as resident Indian. So if I submit the documents to Fundsindia, will my residency status will get updated automatically with all fund houses?

Has anyone gone through this phase?Any pointers will be appreciated.

Thanks in advance.

Thanks for the suggestion. This was one of the funds I want ed to suggest to him. What about HDFC Regular savings fund? Is it better than FI Low duration?

The credit quality of Franklin India Low Duration is BB, HDFC Regular Savings is A, and if your friend wants the best credit quality, but lower returns it is HDFC Short Term Opportunities with a AAA rating. The last one is perhaps the only debt fund with more than 80% AAA rated bonds. The cost of acquiring such bonds will obviously have a bearing on the returns.

With the reserve bank mopping up bonds from the markets, returns are poor for most debt funds in the last two months.

Pradeep

Hi,
I am looking to invest in Mutual funds.
Have never tried anything except for FDs and PPF before.

Need: long term investment child education & marriage after about 15-20 years ( she is under a year old now).

1. I am getting Sukanya samridhi account (1.5 lakhs p.a.) which is similar to PPF.
2. Now am thinking of putting 10-15k per month in SIP MF maybe balanced to aggressive.

Please recommend if:
a. the above combo makes sense?
b. Please recommend portfolios.

Hello,
With a horizon of 15-20 years you can definitely take more risks now; After 12 years or so, you can gradually bring down your risk by switching to balanced funds.

15k can be divided into
1 Large Cap - 4K
1 Mid cap - 4K
1 Multi cap - 4k
1 Small cap - 3k.

Not recommending any specific funds since you can research them yourself. Create SIP for 1 year and revisit the fund selection after an year.

Key thing is to go for Direct investment to reduce costs and enhance returns.

My 2p
I wouldn't recommend the Sukanya Samruddhi account as the lockin period and withdrawal procedures are intimidating. Interest rates on PPF are headed downhill and the same will happen for SS also. The benefit of sec 80c exemption will also be limited at best or 0 at worst since you are also into PPF and you might be having some EPF contributions. At the end of 15 years you wouldn't want to be running from pillar to post to get your money which has barely kept up with inflation.

I would suggest that you invest in pure equity and balanced funds. Keeping track of the best performing funds and switching to better performing ones is very easy and with online redemption procedures you can get full or part of your money at any time.

Hello All,

Till now I have invested in regular growth funds through ICICI direct. My portfolio is around 2L with a monthly SIP of 2K each in the following three funds.
1. HDFC Mid cap opportunities fund,
2. Flanklin prima plus fund and
3. Franklin high growth companies fund).

Now I am reviewing my investment strategy and decided to increase MF SIP's gradually. To start with, here is my plan for 2018
1. Reduce equity/stock purchases and increase in MF's (plan to reach MF portfolio of 5L by end of 2018)
2. Use Zerodha coin platform to buy direct funds
3. Select maximum 5 funds and start with investment of 2K each and gradually increase to 5K in first 6 months and continue for rest of the year
4. Here are the shortlisted ones
a) L&T Emerging business fund (small/mid cap)
b) HDFC Midcap opportunities fund (mid cap)
c) ABSL Top 100 fund (large cap)
d) Kotak select focus fund (large cap)
e) L&T Infrastructure fund (Infra sector fund)

Any suggestions/views are most welcome.
PS: I have invested ~20L in stocks directly

Good set of thoughts to begin with, Vicky! I am especially glad you are thinking long term for your daughter. Given the horizon is long AND the fact that you wont touch (withdraw) these investments, go for high quality equity mutual funds. Go to valueresearchonline.com and click on top funds. I have been benefited immensely by this website. Credit to also mint 50 and couple other websites.

Study well (spend some quality time) and pick the 4* or 5* funds. Do not invest in thematic funds, just stick to diversified equity. I would pick 2 large cap funds and 2 mid cap funds. Make sure these 4 funds are from 4 different fund houses (like one from HDFC, one from ICICI, one from FT and one from Birla). Wouldnt want to suggest to look at small/micro cap funds.

My suggestion would be to stick to 100% equity. As you get closer (say after 12-14 years), start moving to fixed instruments like FDs.
Good luck!

You can also consider MF Utilities for investing in direct funds. They don't charge anything.

Zerodha charges Rs. 600 per year and additionally you have to pay them demat charges. There are no advantages to holding mutual funds in demat format.

Thanks a lot
Thanks a lot

Thanks a lot

Have shortened quotes for ease of reading. Thanks a lot all of you for valuable inputs.

1. I have decided to go with majority opinion only- i.e. SIP into 3-4 funds high rating equity funds from different houses. Reading valueresearch website to shortlist.

2. Am putting 1.5 lakhs tomorrow in sukanya scheme. Next year onwards I'll hopefully be more knowledgeable and invest wisely in this ( minimum commitment is 1,000 only so it's fine).

3. Direct investment is the way to go- how do i create SIP. Reading the thread suggests using mf utilities. Can some suggest how to use it? I browsed it's website but could not understand. Do i need to create eCAN or partial eCAN or Filleezz?

I referred to this post http://www.team-bhp.com/forum/shifti...ml#post4223885. I am a novice at all this but need to start ASAP.

Try completely eCAN first. In my case, because I had existing mutual fund investments through CAMS, I had to do the partial eCAN and courier my documents. I don't use Filleezz because I don't have SIPs. I invest monthly. SIPs through Filleezz would be hassle free for you.

Find out if you are eligible by doing a lookup here:
https://www.mfuindia.com/eCANFormFill

If you face any difficulties, please call their helpline number. It would also give you a feel of how good their customer service is before you proceed on this platform. Get a feel first by calling them with your queries.

Pradeep

I purchased a flat 2 years back with a HDFC loan on which EMI's are running (15yr term). Now with some repayments, the loan tenure is brought down to 7years to jive with my retirement. Now, some amount(a few lakhs) may come and I'm in a dilemma, whether to go for further repayment of HDFC loan or put it in mutual fund so that it leaves enough time (7years) to get decent time in the market for appreciation, braving market cycles a.k.a downturns, to mature around the retirement time.
The dilemma is because, below a limit, repayment does not give attractive reduction in the repayment tenure (I was always asking for tenure reduction while making repayment, never for EMI amount reduction!)
What to do?please:

Personally, I would like to reduce my debt if I have extra cash. I can always invest the repayment amount which is thus saved.

Another thing, markets are unpredictable. We don't know what the future holds. A surprise in 2019 elections and they can very well go south. Please don't enter with expectation of above average gains right from get-go.

That is tough call. Assuming that you pay 8-9% by way of home loan, if you repay that is assured returns of the same percentage compared to the glorious uncertainties of the stock market.

Anyway, if you do invest in mutual funds, do not make a lumpsum investment. Buy a liquid fund and do a systematic transfer plan (STP) to the fund you want to buy.

Do not expect anything more than 12% returns for the next 7 years.

Pradeep

Thank you Pradeep and Dry ICE for the perspectives provided. A 3% difference in return over 7 years, is it worthwhile on this amount?