[SmartCat]

Originally Posted by mjkaushal

Could anyone share their insights on the newly introduced L&T Emerging Opportunities Fund which is opening today and Closing on 12th February 2018. Considering this to be a new offering, is it okay to invest some money in this fund offering. I do not expect great returns initially , but at least expect not to go negative . Suggestions

Originally Posted by skchettry

I am no expert and usually avoid NFOs. But in this case I am going to invest on the advice of my investment advisor primarily because this fund is focusing on selected small caps and the Fund Managers have a good track record and also corrections if any in near future is likely to happen around budget time and funds deployment would happen after the markets have corrected. In the recent past I also invested in Reliance Capital Builder -IV Series C Fund which also invests in small caps. Too early to say how these funds will perform but I stay optimistic.

Ideally, you should be looking at funds with atleast a 10 year history. To see how the fund manager navigated the 2008 crash and 2009 recovery.

[blorebuddy]

Originally Posted by mjkaushal

Could anyone share their insights on the newly introduced L&T Emerging Opportunities Fund which is opening today and Closing on 12th February 2018.

mjKaushal.

There is no real advantage of investing in NFOs. Invest in long running funds with good track record
Why you should never invest in an NFO

@swiftnfurious
you can try MF Utility online for the direct fund investment.

[RiGOD]

LTCG from MF's ain't tax free anymore.

Details here.

[SilentEngine]

Originally Posted by RiGOD

LTCG from MF's ain't tax free anymore.

Details here.

Computing LTCG with grandfathering of gains till Jan 31 is going to be a nightmare while filing returns. If one holds multiple stocks and has invested in many MFs, you need to track their price and NAV on Jan 31, find the difference with the selling price and then find your taxability, till you have sold all your stocks and MF units purchased before Jan 31.

[DigitalOne]

Originally Posted by SilentEngine

Computing LTCG with grandfathering of gains till Jan 31 is going to be a nightmare while filing returns. If one holds multiple stocks and has invested in many MFs, you need to track their price and NAV on Jan 31, find the difference with the selling price and then find your taxability, till you have sold all your stocks and MF units purchased before Jan 31.

Ouch !!

Per this article, the LTCG will be applicable to shares/MF newly bought from Feb 1st. At least, that's how I interpreted the following statement (emphasis mine):

If all the existing capital gains (till January 31, 2018) are grandfathered, then there is nothing much to worry about. That’s because when investors will buy stocks now, they will build in a 10% payout as LTCG in their return expectation.

By the way, a good explanation of the origin of the term Grandfathering

[SilentEngine]

Originally Posted by DigitalOne

Ouch !!

Per this article, the LTCG will be applicable to shares/MF newly bought from Feb 1st. At least, that's how I interpreted the following statement (emphasis mine):

Unfortunately that's not the case. Here's the relevant transcript of FM's speech, with highlighted part talking about excess gain after Jan 31st.

Originally Posted by Finance Minister during Budget Speech

I propose to tax such long term capital gains exceeding Rs1 lakh at the rate of 10% without allowing the benefit of any indexation. However, all gains up to 31st January, 2018 will be grandfathered. For example, if an equity share is purchased six months before 31st January, 2018 at Rs 100/- and the highest price quoted on 31st January, 2018 in respect of this share is Rs 120/-, there will be no tax on the gain of Rs 20/- if this share is sold after one year from the date of purchase. However, any gain in excess of Rs.20 earned after 31st January, 2018 will be taxed at 10% if this share is sold after 31st July, 2018.

[TaureanBull]

Originally Posted by SilentEngine

Computing LTCG with grandfathering of gains till Jan 31 is going to be a nightmare while filing returns. If one holds multiple stocks and has invested in many MFs, you need to track their price and NAV on Jan 31, find the difference with the selling price and then find your taxability, till you have sold all your stocks and MF units purchased before Jan 31.

If I am not wrong each fund house gives out the Long Term Capital Gains amount compulsorily. The fund house should be clearly specifying the LTCG.

[hothatchaway]

Originally Posted by SilentEngine

Unfortunately that's not the case. Here's the relevant transcript of FM's speech, with highlighted part talking about excess gain after Jan 31st.

Simple question - does this mean that the NAV/share price prevailing on Dec 31, 2018 will be considered as the price of purchase, irrespective of when one has bought them?

[thoma]

Originally Posted by hothatchaway

Simple question - does this mean that the NAV/share price prevailing on Dec 31, 2018 will be considered as the price of purchase, irrespective of when one has bought them?

For funds purchased before Jan 31 2018,

(NAV on date of sale - NAV on Jan 31 2018) x No. of units, if positive, will be taxed at 10% after Jul 31 2018.

[deepv]

An insightful article on how LTCG will impact real returns beyond perceptible 10% as it appears:
VRO - The Iceberg Tax

[krish_veera]

Hi All,

I am in search on Good Mid/Small Cap Funds. I have two Large Cap (Mirae Asset Emerging India and Aditya Birla Sun Life Frontline Equity Fund).

Would like to expand my portfolio, hence looking for Mid/Small. I searched in VRO and found that SBI Small/Mid Cap to be good. Unfortunately they are not accepting new purchases now.

One question:
My thought process is to find funds from different fund house apart from the ones I already have. But Mirae and Aditya are performing well in Mid Cap as well. I just don't want to stick with only two fund houses. Is my rationale correct? Or Can I go ahead and invest in the same fund house (MA Emerging Bluechip/AB Pure Value)?

Due to my above constraints, I would like to invest in Edelweiss Mid and Small Cap Fund. Any reviews about this funds?

Can you please suggest some Mid/Small Cap Funds?

Thanks,
Veera

[saket77]

Consider mid/ small caps only if you are planning o invest for real long term. In current market, I find the mid caps and small caps extremely overvalued. Hence these stocks/ funds will take a beating when any correction occurs or otherwise.
I would personally stay away from these for now.
Regards,
Saket.

[DigitalOne]

Originally Posted by krish_veera

I am in search on Good Mid/Small Cap Funds. I have two Large Cap (Mirae Asset Emerging India and Aditya Birla Sun Life Frontline Equity Fund).

I generally tend to avoid the smaller fund houses since sometimes if their business plans don't work out, they shut shop and go. It has happened with Fidelity, JP Morgan (of course both are global giants, but their Indian operations didn't work out). SEBI would then do a planned merger with any of the existing AMCs. You will not have a loss of capital but for sometime these funds are orphaned.

So on that I count I would say don't invest in Edelweiss. Mirae AMC has been doing very well, but one can never say, so I don't recommend new SIP in Mirae.

Go with the ABSL fund; and any one of the top performing mid-cap funds from a Top 10 AMC in terms of size. Choose any of the big known names - HDFC, ICICI, Franklin Templeton, Reliance, DSP Blackrock etc. You will sleep easier.

[krish_veera]

Originally Posted by saket77

Consider mid/ small caps only if you are planning o invest for real long term. In current market, I find the mid caps and small caps extremely overvalued. Hence these stocks/ funds will take a beating when any correction occurs or otherwise.

Originally Posted by DigitalOne

I generally tend to avoid the smaller fund houses since sometimes if their business plans don't work out, they shut shop and go. It has happened with Fidelity, JP Morgan (of course both are global giants, but their Indian operations didn't work out). SEBI would then do a planned merger with any of the existing AMCs. You will not have a loss of capital but for sometime these funds are orphaned.

Thanks a lot Saket, Digital One.

Will stick to the ABSL.

I have already started SIP on Mirae (Large Cap) for 15000/month. Should I continue with this or stop and go with known names for Large Cap as well?

[srvm]

Originally Posted by thoma

For funds purchased before Jan 31 2018,

(NAV on date of sale - NAV on Jan 31 2018) x No. of units, if positive, will be taxed at 10% after Jul 31 2018.

Thoma, you are right in your formula but for one small detail.
Profit will be taxed only if it exceeds 1 lakh (I assume FM meant 1 lakh per financial year).