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It is great to know that you have started off with a large amount in SIPs. clap:



Please note that, after the minimum period that is usually six months, you can stop the SIPs. So if you want to change the amounts, change the allocations, add funds, etc. you are free to do that. In ELSS, each investment is locked for 3 years; but there is no restriction that you have to "keep investing" for a certain period of time.



BTW, the advisor's suggestion is a good one. In the typical minimum lumpsum amount (Rs 5,000), 10 months SIP with minimum amount (Rs 500) can be set up. So just use the SIP route to start off with small caps, provided of course if you have decided that these are suitable for you.


Also, please don't select funds just based on recent performance. I have this quick checklist...

• It has been consistent in beating the benchmark
• It has a 10year+ history (this includes a major recession and a smaller bear phase)
  
• It has performed better than the benchmark during bear phases - very important for an equity fund
• Its return-to-risk (Sharpe, Sortino, etc.) are much better than the category

Some small and mid cap funds do turn off the inflows if they feel that they can't handle them - either because the AUM has gone up and/or because the market is overheated. Small caps are more thinly traded and a move by a fund house can have major impact on the stock price. There are opinions that these kinds of stops are good for the fund performance.

From what I have seen, the off button is applied to all investment routes - direct, regular, etc. Some funds may keep the SIP option open - the logic is that this is more predictable and the manager can plan.




I had a question. Can you buy in non demat form using zerodha? It seems so but I have not been able to get a conclusive answer.

Thanks but I did a lump sum investment in L&T Emerging Business Fund - Direct Growth Plan one hour back from L&T website. I think it is better to get interest on full amount from day one. I want to build a high risk and aggressive portfolio with the lumpsum investments. ELSS Sip will be average risk investment for longer time period at least 20-25 years. Small and multiple chunks of 1-2 lakh is a good option to be invested in high risk small/mid/large cap funds.

Isn't there almost a 70% portfolio overlap between the first two Mirae funds? There is quite a bit of common stocks among all the three Mirae funds. The whole purpose of investing in mutual funds is to create a diversified portfolio.

http://fundpicker.thefundoo.com/Tools/PortfolioOverlap

Pradeep

@roby_dk
Here are my views on this
1) There is no interest to gain from day 1. MF investment performance is directly based on the underlying stocks. So there is no guarantee that you are going to gain from day 1.
2) It's always recommended to do SIP rather than lump sum because it minimizes the risk of seeing negative returns and also averages out as market does not move unidirectional on daily/monthly basis. Also this is especially true for mid and small cap which has lot more volatility
3) ELSS is not average risk category as it also carries same risk profile as any other diversified equity fund.
3) Small cap funds are high risk funds because small cap funds invests in small cap stocks which typically has high volatility compared to diversified equity funds (which invests across the spectrum of categories)
4) If you see the past performance after the 2008 crash small cap funds took lot of time to recover and show any meaningful returns compared to diversified funds. This means small cap funds are people who can invest and wait for long period of time to see good returns. Also they are the ones who will see much higher returns over diversified equity funds.

Thanks for that link. Dint know it was that easy to check overlap in funds.
First two are indeed having a lot of Overlap. Infact I realized that the Hybrid one is the same as Asset India with a 30% put in debt.

Will pick another fund.

Thanks for that..! Will check it out. Meanwhile I had a look at Kuvera. The user interface and other features looked good.

Tracking mutual funds portfolio:

The easiest way to track a portfolio is to generate a consolidated mail back service report from CAMS online. The consolidated report includes mutual funds serviced by CAMS + Karvy + FTAMIL + SBFS.

https://www.camsonline.com/InvestorS...kServices.aspx

This PDF report requires the email ID you used for registering your investment. If you have multiple accounts, generate a report for each of your email IDs. You have to specify a password at the CAMS site to make it secure.

Then create an account on the Value Research site and in the Portfolio Manager, you can upload transactions, that is, the PDF, you got as the mail back service and specify the password you used when the Value Research site prompts for it. If you have multiple reports, do this separately for each report.

It is pretty easy.

Pradeep

At the moment there seems to be a group trying to hammer the rupee to below 100+ by December. By all accounts the current rate is good enough and no further devaluation is called for. If the rupee drops another 10 to a dollar then I am not sure.

This kind of speculation can bring down Indian Economy and markets. Fuel prices will go from roof to sky which can bring crisis like situation. This is highly doubtful and extreme kind of speculation but knowing more about it will be helpful.:)

No speculation as such. What's happening is that FIIs are continuously pulling out cash from Indian stocks and bonds. That's because interest rates are rising in the US. These funds were in India chasing returns. If there is a possibility of earning decent returns in US, why take a risk with emerging markets like India? Also, weakening Rupee against Dollar feeds on itself - further weakening of INR against USD results in more money being pulled out. Because FII investment returns in stocks and bonds are calculated in dollar terms.

One simple solution (to stem FII outflows) is to raise interest rates. If Indian interest rates are high enough, it should attract dollar flows back into the country. Indian stock markets are expecting RBI to raise interest rates - that probably explains why many NBFC stocks are falling down. High rates are bad for their business.

The amount of money that they have pulled out so far is HUGE. They have been net sellers in the cash market since beginning of 2018, or lets say from Feb 2018, to be precise. I doubt there was any week in which they were net buyers.

It is due to the constantly increasing inflow from DII (thanks to their "MF sahi hai" campaigning) that has kept the market where it is right now. Otherwise, the 2008 scenario could have very well been repeated.

But such a scenario also worries me. Fund houses are under compulsion to invest 80% or 85% of the inflows, cannot hold more than 15% cash I believe. This creates an artificial demand and many times, the fund manager has to put in more money in a stock than he is comfortable.
Ofcourse there is churning of portfolio and all, but still.

And God forbid should there be a panic redemptions by individuals investing in MF, there is no stopping the downward spiraling of our markets.

But then, I am probably thinking the worst !

Can you please let me know the source of this information? I have always been confused on this. There are two pages on MoneyControl that give this information and both of them are fairly different, hence my question:

https://www.moneycontrol.com/stocks/...vity/index.php
and
https://www.moneycontrol.com/stocks/...y.php?flag=FII

For e.g. check data for Oct2017 and Nov2017.

Which one of these links give the correct information?

Equity mutual funds need to keep minimum 65% in Indian stocks.

The flood of money into MFs after demonetization has had another side effect - only a small percentage of stocks are moving, mostly in consumption space (brands). That is, mutual fund managers are forced to invest in "high quality" companies. Such companies are Excel (spreadsheet) stock experts' delight - with predictions made about how much profits they will earn in year 2035.

That's why we have Dmart trading at 120 times earnings, HUL trading at 60 times, Page industries trading at 80 times earnings and so on.

I'd recommend all investors to review their mutual fund portfolios and get out of sector funds and high volatility (small cap or midcap funds) funds. It might be a good idea to switch to -

- Large cap funds
- Multi cap funds
- Dividend yield funds
- Value oriented funds

You can see the list of funds from above categories at Valueresearchonline.com
https://www.valueresearchonline.com/...ose%2CnotRated

I am not able to make up my mind as to whether this is good or bad that Indians are so aggressively investing through mutual funds. I guess the upside is that our markets are better protected from manipulation by FII like what is happening now. However, the downside is that common man is investing in companies which may not justify being given such a high valuation.

Would like to understand from experts here on what could be long term impact of increased participation by DIIs, especially via SIP in mutual fund route where one is tempted to continue investing in a bearish market.

I used to be a member of a few whatsapp group (free ones), where I used to closely watch for the daily provisional activity figure in cash market of DII & FII. I no longer subscribe to these, but for few months that I was a member (until June probably), FII almost always used to be net sellers

Try this

https://www.business-standard.com/st...lter-type=date


May I also add to this list the hybrid funds.


With markets in the bull phase and everyone fancying the returns that the investors made in last 3-5 years, people blindly started investing in MF. I wouldn't say that it is bad, but their expectations of 20% annualised returns may not materialise in the short run of 3-5 years. SIP of 10 years and beyond, I feel, will still give good returns. But not these 20% that they have seen.

Plus, going forward, it may not attract as much funds for the following reasons
1- Interest rates are already on the way up. Good private NBFC like Bajaj Finance are already offering (since last 3 months) 8.4% on 3+years tenure FD. PPF interest rate today was increased by 0.4% (and that is the EEE category investment)
2. MF also now are liable for LTCG @ 10%, which has proved to be a big dampener for many.