[sgiitk]

@yosbert; I am not aware of any way. I guess you can deposit the form incl SIP form with the AMC or the accounting co.

@gaurav_diavolo;

While agreeing with the general trend I have a few points where I differ;

1. For a first time investor I will avoid a sectoral fund. If you want a higher mid-cap exposure go for the IDFC Premier Equity Plan A. Of course HDFC & DSPML Equity have significant mid cap components.

I do not see any point in going for an ELSS. The DTC does away with the ELSS channel, so these funds may languish. Why enter them for a single year! They will either be merged else where or get stop motherly treatment.

2. I have been in MFs for well over a decade (~15 years). I agree go with the big boys. Since you have not commented I guess you agree with my list. I have not been that happy with ICICI (Dynamic is good, but I have had a few duds). As for Reliance I do ot trust them as a group, simple as that. I avoid any funds of Indistry Corporates, you never know when they may be tempted to invest unwisely in the group cos. This is one reason I am putting a hold on my judgement on Fidelity even though I have the highest regard for L&T. One good option in Debt based MF can be DSMPML MIP (old Savings Manager Aggressive). In Equity oriented both DSPBR Balanced and even more so HDFC Prudence rule the roost. I may add that I am not that happy with SBI Dyn. Bons but then the others in 5* are also unknown to me.

Let me add if I was looking for a PMS then I will go to a big brokerage rather than a MF.

One very interesting fund I have come across is the Franklin Templeton Dynamic PE Ratio FoF. With long term capital gains benefits it may be ideal for the current volatile world.

Of course with the DTC going to tax dividends may be Growth is the way in Equity as well.

[Reisender]

Originally Posted by yosbert

@sgiitk, mobike008: Thanks for the clarifications. So, is there a way to invest into MFs (including SIPs) online without going through a bank or broker? I am assuming banks/broker will charge some kind of brokerage fees even without a DEMAT account.

Buddy,

Visit nearby CAMS and do it in person, This will be handled as direct.
Once you're in one fund house and become a KYC complied, you are free to transact online without even visiting AMC or CAMS.
CAMS
Bangalore
Trade Center, 1st Floor
45, Dickenson Road
(Next to Manipal Center)
Bangalore - 560 042
1800 200 2267
080 - 30574709
camsbgl at the rate camsonline.com

[Cayman360]

Originally Posted by yosbert

@sgiitk, mobike008: Thanks for the clarifications. So, is there a way to invest into MFs (including SIPs) online without going through a bank or broker? I am assuming banks/broker will charge some kind of brokerage fees even without a DEMAT account.

Try something like FundsIndia | Online Mutual Funds | SIP | Free Advisory | Shares | , totally hassle-free. All purchases done online, once you've set up an account with them. No charges for mutual fund transactions of course, they earn directly from the fund house. For SIPs, you will need to send a signed form to them, and they'll do the rest. You also have the great flexibility to pause an SIP for a month, or even stop it, all online. They allow you to create multiple portfolios for different goals, each of which can hold suitable funds (equity or debt). Best of all, you can log in and see your entire set of funds in one screen.

[sgiitk]

Slightly OT and old. I cannot but help these quotations in this age of High Inflation and the dropping rupee:

1. VI Lenin is said to have stated that The best way to destroy the Capitalist System was to debauch the currency.

2. Milton Keynes (spiritual guru, whose words are taken as Gospel, by all our FMs except Jaswant Singh), 'By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens'.

I just cannot resist quoting these.

[AvinashV]

Originally Posted by sgiitk

I do not see any point in going for an ELSS. The DTC does away with the ELSS channel, so these funds may languish. Why enter them for a single year! They will either be merged else where or get stop motherly treatment.

Sgiitk could you please expand on the point mentioned above. What is DTC? & why are they doing away with ELSS as i was about to invest in two tax saving funds.

Above questions are based on the presumption that ELSS = Tax saving fund like HDFC tax saver.

[sgiitk]

Originally Posted by AvinashV

Sgiitk could you please expand on the point mentioned above. What is DTC? & why are they doing away with ELSS as i was about to invest in two tax saving funds.

Above questions are based on the presumption that ELSS = Tax saving fund like HDFC tax saver.

DTC: Direct Tax Code. This will be the new income tax act. They were planning for 1.4.12 but now the likely date is 1.4.13 for it to kick in. FM has anoounced that the act will be introduced in the Monsoon Session. It has been through the committee headed by Yashwant Sinha..

ELSS: Equity Linked (tax) Saving Scheme.

You are Ok this year with ELSS but according to what has been put out it vanishes after 1st April 2013. My point is once there is a fund which has no further inputs then it will either be merged into an existing fund with the lock in being preserved, or the fund manager will cease to be that active or may be changed. In any case as soon as the three years are over the money will move out.

This year I have gone all PPF for additional savings after many years. Partly due to the imminent demise of the ELSS's and partly due to the extreme volatility of the market. I manage five accounts, mine, my wife's, my son's, my daughter-in-law's, and my HUF.

[AvinashV]

Originally Posted by sgiitk

DTC: Direct Tax Code. This will be the new income tax act. They were planning for 1.4.12 but now the likely date is 1.4.13 for it to kick in. FM has anoounced that the act will be introduced in the Monsoon Session. It has been through the committee headed by Yashwant Sinha..
This year I have gone all PPF for additional savings after many years. Partly due to the imminent demise of the ELSS's and partly due to the extreme volatility of the market. I manage five accounts, mine, my wife's, my son's, my daughter-in-law's, and my HUF.

Oh that's something i didn't know. This is going to be the first time that i infest in an ELSS or was planning to. So what would you suggest that i go in for? Thee PPF way? Any advice welcome. Or if i were to go for mutual funds - equity, then which one would you suggest?

[sgiitk]

Originally Posted by AvinashV

Oh that's something i didn't know. This is going to be the first time that i infest in an ELSS or was planning to. So what would you suggest that i go in for? Thee PPF way? Any advice welcome. Or if i were to go for mutual funds - equity, then which one would you suggest?

Two points - one is Sec80C. I will prefer the ppf way since 8% or higher is more or less certain. In the current scenario ELSS can give you a windfall or get you a big loss. I have no hopes till 2014, after that only God knows!

As for MFs I will again avoid Equity. Options can be debt and dynamic PE funds. For debt you can go pure debt/money market (I have IDFC SSIF-MT) or Debt fund with some Equity (DSPML MIP), the current thinking is that Floating Rate Funds may be the most remunerative pure debt funds in the short term. There is another category of Dynamic PE Ratio where I am in the Franklin Templeton Dynamic Ratio FoF. In general a FoF has higher overheads, but the advantage is that the ratio is readjusted once a month. Where we gain is in Long Term capital Gains. In fact all investments in debt instruments should be in Growth mode.

Equity can be in Dividend Payout mode but that may attract a 5% tax in the DTC, while Long Term Capital Gains are likely to continue to be exempt.

The position about the DTC and even the Finance Bill is pretty hazy at the moment so it is difficult to guess what will ultimately happen. The Govt is desperate to get money in any which way, and the Parlaimantary committee looking into DTC headed by Yashwant Sinha (the worst FM of NDA!) also does not give too much hope. Babu mentality prevailing all the way.

[sgiitk]

@yosbert. I think this is paydirt. http://valueresearchonline.com/story....asp?str=19958 addressing your query directly. Serendipity if ever.

[yosbert]

Originally Posted by sgiitk

@yosbert. I think this is paydirt. Investing Directly - Value Research: The Complete Guide to Mutual Funds addressing your query directly. Serendipity if ever.

Yes did notice it earlier today. Thanks for pointing it out though.

[S_U_N]

Well, almost a month and no post on this thread. Is it due to market conditions?
I am done with PPF investments for myself, wife and kid (though for them, I can put in more since the limit is 1 lac per account).

For the rest of the money which I can save from July onwards, I was looking at MF, but previous posts here indicate that probably the timing is not really that good.
(My primary objective was to start saving for my son who is 3 years old with some SIP of 2000 per month.)
Somehow the child plans from insurance companies don't seem to instill a lot of confidence.
Considering that DTC is coming in next year, and dividends are going to be taxed and there is already long term capital gains tax (or some other tax?), I am wondering if I should venture into MF territory or not.

[akj123]

Originally Posted by S_U_N

Well, almost a month and no post on this thread. Is it due to market conditions?
I am done with PPF investments for myself, wife and kid (though for them, I can put in more since the limit is 1 lac per account).

As per my understanding, we can invest max 1L in PPF across our account and our kids account. That is, there is no separate 1L available for kids account. So the max a family of dad + mom + N kids can invest is Rs 2L per year.

Originally Posted by S_U_N

For the rest of the money which I can save from July onwards, I was looking at MF, but previous posts here indicate that probably the timing is not really that good.

Timing is tricky - but it seems that markets are comparatively on lower side than higher. There is certainly chance of them dropping based on conditions in Eurozone and our own "policy paralysis", but seen historically they are not very expensive right now. Please read through this recent excellent article by Prashant Jain (one of our must successful MF managers):

It's tomorrow that matters: Prashant Jain

[mac187]

I have a query, in 2008 I had invested around 25k in one time ELSS funds. I recently received a mail from CAMS stating that the two accounts have been moved to dormant status. Any idea how I will be able to withdraw these funds?

[abdriver2000]

Originally Posted by mac187

I have a query, in 2008 I had invested around 25k in one time ELSS funds. I recently received a mail from CAMS stating that the two accounts have been moved to dormant status. Any idea how I will be able to withdraw these funds?

Dormant only means there were no transactions reported in those folios in last 12 months. You can withdraw your funds anytime.

[SankalpDesai]

Originally Posted by mac187

I have a query, in 2008 I had invested around 25k in one time ELSS funds. I recently received a mail from CAMS stating that the two accounts have been moved to dormant status. Any idea how I will be able to withdraw these funds?

The lock-in period for ELSS funds is 3 years, post which your investement is free to be redeemed any time. Due to lack of activity, CAMS might have put your account in 'dormant' state. Haven't come across this situation before but I suppose the issue is due to KYC non-compliance or lack of activity. Get yourself compliant by personally visiting the CAMS or your MF Company office in your city, provide them the required documents and your account shall be operational again.