[kavensri]

Originally Posted by srsrini

Please note this huuuuuge issue with all the pension plans in India. You finally use the accumulated corpus to buy an annuity. And there are no inflation indexed annuities in India. Unless you do some complex things with deferring and laddering annuity plans. you would have a tough time after 15 years or so. Please look at this very carefully before you rely only on pension like products.

Thanks for your inputs. Yes, I am very much aware of ‘associated’ inflation factor for my living expense after 10/15 years. But my gut feeling is, 10 (or 15) years down the line, inflation may not be a major factor in India. It should be somewhat similar (if not exact match) to matured economies around the world, where the current inflation rates are less than 1%. And even otherwise, I am not solely depending on these pension plans for my living.
I have one question. MFs are just one way of generating the corpus so that we can invest the generated corpus money in SWP after we retire. Am I right? If so, then I can as well decide at that time whether I want to continue PPF (even after block in period to use it as pension plan), or move that amount to SWP?

[.sushilkumar]

Originally Posted by sgiitk

At the moment I will steer clear. Let me see what madam Seetharaman comes up with. The rupee threatening to drop below the 69 mark. I am holding my horses till the budget is out.

@sgiitk since budget is out now and Rupee well below 69 mark, what are your views on Continuing M F investments or shall we look at instruments like PPF etc.

For the current budget, Markets have reacted in a negative way but i see this as a short term trend till next budget. looking at positive side, his gives me good opportunity to pickup some units at a good valuation while on negative side, if i am already invested than i will loose some returns but than with SIP, it will be all balanced out.

Another thing which i am unable to understand is a strengthening rupee without any particular reasons. Our exports have been as it is so not sure why rupee is going north.

[SmartCat]

Originally Posted by .sushilkumar

Another thing which i am unable to understand is a strengthening rupee without any particular reasons. Our exports have been as it is so not sure why rupee is going north.

USDINR movement does not depend exclusively on imports/exports or FII investment into stocks. It also depends on -

- Foreign investment into corporate debt
- Remittances from Indians
- Foreign tourist inflows
- Foreign direct investment

and so on. Data on the above might be available if you look around, but it is simpler to just look at Indian foreign exchange reserves graph. Note the uptrend since Oct 2018.

[AdiSolEn]

@Smartcat,any idea on SBI Bluchip fund? I have it in my portfolio, but its performance has been nothing to write home about. I am now contemplating on stopping my SIP in this fund, keep the amount invested as it is (don't need funds right now) and then invest a similar amount through SIP in an index fund such as HDFC Nifty or SBI Nifty.From whatever has been posted on this forum in the previous months, I am sure that at least the index fund investment will give me decent returns. SBI Bluechip fund might have given stellar returns since inception, but my personal experience has been mediocre. FYI, I have had an SIP in this fund over the last 2 and half years now.

[SmartCat]

Originally Posted by AdiSolEn

@Smartcat,any idea on SBI Bluchip fund? invest a similar amount through SIP in an index fund such as HDFC Nifty or SBI Nifty.

The fund manager of SBI Bluechip has a bigger universe of stocks to choose from - because it is benchmarked against BSE 100 index. I prefer actively managed SBI Bluechip to passively managed HDFC/SBI Nifty fund. SBI Bluechip has outperformed Nifty over the longer term. However, if you look at 1 Yr/3 Yr performance, it has underperformed Nifty. But we will never know in advance what the next 3 years has in store for these funds.

Historically, there have been instances where NIFTY has been stuck in a range for over 5 to 7 years. That is, zero returns over 5 to 7 years. Examples:

Mid 1996/97 to Mid 2003/04:



2008 to 2014:



But during this exact time frame, many well managed mutual funds have outperformed Nifty. That's because good fund managers can avoid bubble stocks and invest in undervalued stocks, and outperform the index. If you don't want to continue with SBI Bluechip SIP, you could look at some other well-managed 5 star rated Large cap/Bluechip fund.

[AdiSolEn]

Originally Posted by SmartCat

The fund manager of SBI Bluechip has a bigger universe of stocks to choose from - because it is benchmarked against BSE 100 index. I prefer actively managed SBI Bluechip to passively managed HDFC/SBI Nifty fund. SBI Bluechip has outperformed Nifty over the longer term. However, if you look at 1 Yr/3 Yr performance, it has underperformed Nifty. But we will never know in advance what the next 3 years has in store for these funds.

Bue with SBI Bluechip SIP, you could look at some other well-managed 5 star rated Large cap/Bluechip fund.

Thanks for the clarification. However, if I consider a longer time period of say 10 years, then won't the difference between the passively managed fund and an actively managed fund be very less? This is my observation from an academic perspective! SBI Bluechip is an outperformer over longer periods for sure. But the recent performance has been a let down. But I guess I can continue an SIP in it and also start a new one for a passively managed fund (but will it be counterproductive since many stocks will be common?)

[saurabh2711]

Hi All,

Need a suggestion.
I have a bulk amount ~1 lakh, to invest in any long term (10 years or so) security. Looking forward for your suggestions to put my money into.

Additionally, would like to inform that I have PPF accounts for me and my wife, along with PPF and Sukanya Samridhi for my elder daughter and will be opening same for my younger one as well.

[SmartCat]

Originally Posted by AdiSolEn

Thanks for the clarification. However, if I consider a longer time period of say 10 years, then won't the difference between the passively managed fund and an actively managed fund be very less?

Depends on the fund I guess. Poorly managed funds from UTI or Taurus would have underperformed. But equity funds by respectable names with large AUM, 4 or 5 star ratings would have outperformed.

Here is the list of all equity mutual funds -
https://www.valueresearchonline.com/...%2Cdir%2Cclose

Click on LAUNCH link to show funds by launch date. Take a look at the performance of older top rated funds.

[.sushilkumar]

Originally Posted by SmartCat

USDINR movement does not depend exclusively on imports/exports or FII investment into stocks. It also depends on -

- Foreign investment into corporate debt
- Remittances from Indians
- Foreign tourist inflows
- Foreign direct investment

Thanks. That explains a bit for me but none of above reasons are short time which might be held responsible for strong rupee. Only way i can think of is RBI dumping USD into market to keep Re strong. At the end of day, they want india to be a 5 trillion economy either by hook or crook

[bluevolt]

Some of my mutual funds are performing below expectations and their crisil rank has also dropped from 1/2 to 4/5.

What should be the approach for switching mutual funds?

Should I drop my existing funds, redeem and switch to current number 1 funds in each category? Will it be the right approach?

How often this should be done?

Also, I see a difference in rating for value research online and crisil, so which ranking should be trusted?

[srsrini]

Originally Posted by bluevolt

Some of my mutual funds are performing below expectations and their crisil rank has also dropped from 1/2 to 4/5.

What should be the approach for switching mutual funds?

Should I drop my existing funds, redeem and switch to current number 1 funds in each category? Will it be the right approach?

How often this should be done?

Also, I see a difference in rating for value research online and crisil, so which ranking should be trusted?

I would start with the last line. The answer is 'None'. The ratings and rankings can be taken as a broad indication. Please don't make decisions based on that. If you want some proof, please look at the VRO rating for DHFL Pramarica ultra short fund direct plan.



CRISIL rankings provide a lot of weightage to recent - last few quarters - performance. For many equity funds this could mean a largish churn in the ordering.



If you want to consider numbers at all, you can see the long time performance tab in VRO or morningstar and see how your fund has done over the years compared to index and category. Unless it is a definite slide down, don't switch from the fund.


People can give qualitative opinions if you share the fund names.

[sgiitk]

Yesterday I was talking to my CA. Now they want the entire history of any MF investment when you try and redeem it. He reckons it is not worth the hassle any more.

[guru_max]

Earlier, there were limits to the process of e-KYC where one could invest just 50000. It looks like, some rule change has taken place in this regard. Many platforms now allow you to do KYC through your phone provided you have scanned copies of various documents. This KYC does not have a 50000 limit. I have done my KYC through one such platform and it took just 10 minutes. But, you have to invest a token amount to complete your KYC. This can be done investing in a fund that accepts a very low value, some funds have a minimum of Rs.100. Once you complete your KYC, you should be able to invest in direct funds through any platforms you prefer.

[SmartCat]

Originally Posted by bluevolt

Also, I see a difference in rating for value research online and crisil, so which ranking should be trusted?

Originally Posted by srsrini

The ratings and rankings can be taken as a broad indication. Please don't make decisions based on that.

Look what I found. A valueresearchonline 5 star fund that has generated negative returns over 10+ years.

JM Core 11 Fund
https://www.valueresearchonline.com/...chemecode=6673

It's NAV has gone down from 10 to 8.45. Not quite sure how their rating system gave this fund 5 stars.

[carboy]

Originally Posted by sgiitk

Yesterday I was talking to my CA. Now they want the entire history of any MF investment when you try and redeem it.

Who is "they" here? And what does "entire history of any MF investment" mean?