[bluevolt]

I recently redeemed a couple of my MFs to balance equity exposure in my portfolio. The amount got credited to my account even with the older IFSC code that was registered with MFs. I changed my bank account's branch and forgot to update the new IFSC code and realised only after redeeming the amount. I was expecting a cheque being issued instead of direct credit.

Is there some routing mechanism through which amount was credited or IFSC code is not required by AMCs to issue redemption amount?

Though I have now sent email to cams/respective AMCs to update IFSC codes for future transactions.

[carboy]

Originally Posted by bluevolt

I recently redeemed a couple of my MFs to balance equity exposure in my portfolio. The amount got credited to my account even with the older IFSC code that was registered with MFs.

This happened to me with my Income Tax refunds a few years back. I had changed my home branch, so my IFSC code changed but account number remained the same. I forgot to inform my CA about it & my refund got routed through the old IFSC code but it reached me fine. I guess the bank takes care of it.

[sgiitk]

It seems that we all expected the MFs to be fraud free. Payment through bank, dividend to bank, and redemption to bank. However, some fraudsters have found an opening, and we are all facing the music.

[carboy]

Originally Posted by sgiitk

It seems that we all expected the MFs to be fraud free. Payment through bank, dividend to bank, and redemption to bank. However, some fraudsters have found an opening, and we are all facing the music.

I seem to be out of the loop - What happened & what was the opening?

[graaja]

Originally Posted by sgiitk

It seems that we all expected the MFs to be fraud free. Payment through bank, dividend to bank, and redemption to bank. However, some fraudsters have found an opening, and we are all facing the music.

Can you kindly elaborate? Has there been a new scam that has been unearthed? If yes, can you please share details?

[diyguy]

Is there an easy way to fetch dividend received from all funds in an annual statement? I understand nsdl sends a monthly statement. I just visited camsonline and requested a statement but unsure when it will arrive. Is this the right method?

[sgiitk]

Originally Posted by graaja

Can you kindly elaborate? Has there been a new scam that has been unearthed? If yes, can you please share details?

All inputs are through a bank account, all payments are to a bank account so how can fraud arise. Obviously some have figured out a way even here. Sure beats me. The is validated with a PAN so how is this done.

I understand that only the requirement of the IFSC code has been removed. Rest of the problem stays.

[carboy]

Originally Posted by sgiitk

All inputs are through a bank account, all payments are to a bank account so how can fraud arise. Obviously some have figured out a way even here. Sure beats me. The is validated with a PAN so how is this done.

Who did it? Please elaborate?

[S_U_N]

Those who have become NRI, what steps have you taken to continue investments with mutual funds?
My CA advised me to stop existing SIP's so that those investments can be separated from the future investments which could happen using overseas earnings.

I understand that all my bank accounts have to be converted to NRO, but if the money in those accounts are from Indian earnings, is there a problem to continue the SIP which have been running for a few years?

For income that has been earned overseas, that would go into newly created NRE account and from there I can invest in mutual funds if I do a KYC again.

Any inputs from experienced members?

[skchettry]

Originally Posted by S_U_N

Those who have become NRI, what steps have you taken to continue investments with mutual funds?
My CA advised me to stop existing SIP's so that those investments can be separated from the future investments which could happen using overseas earnings.

I understand that all my bank accounts have to be converted to NRO, but if the money in those accounts are from Indian earnings, is there a problem to continue the SIP which have been running for a few years?

For income that has been earned overseas, that would go into newly created NRE account and from there I can invest in mutual funds if I do a KYC again.

Any inputs from experienced members?

Let me share my own experience having turned an NRI in 2007.
I didn't have SIPs then; but had some lump sum investments in mutual funds. That was taken care of by changing my status to NRE (you woudl find it as NRE-repatriable). Thereafter I had all my SIPs and lump sum investments through my NRE account, have redemptions every year and the proceeds are credited to my NRE account. So not sure if you need to stop all your existing SIPs or there is a way out to do the change over.
Changing to NRE status is through PAN KYC updation and submission of NRE related documents.
Yes an NRI cannot hold resident accounts. All existing resident accounts need to be closed. There are certain banks which would help resident accounts to be changed into NRO ones keeping the same account number.
I invest through my NRE account and have my NRO account for managing small amounts involving in-country remittances.
Regards
Sravan

[S_U_N]

Originally Posted by skchettry

Let me share my own experience having turned an NRI in 2007.
I didn't have SIPs then; but had some lump sum investments in mutual funds. That was taken care of by changing my status to NRE (you woudl find it as NRE-repatriable). Thereafter I had all my SIPs and lump sum investments through my NRE account, have redemptions every year and the proceeds are credited to my NRE account. So not sure if you need to stop all your existing SIPs or there is a way out to do the change over.
Changing to NRE status is through PAN KYC updation and submission of NRE related documents.
Yes an NRI cannot hold resident accounts. All existing resident accounts need to be closed. There are certain banks which would help resident accounts to be changed into NRO ones keeping the same account number.
I invest through my NRE account and have my NRO account for managing small amounts involving in-country remittances.
Regards
Sravan

Thank you.
Since you are investing through NRE account, I understand that fresh investment (after 2007) is your overseas income.
What happens to the redemption of the funds which were invested when you were resident Indian (RI) before 2007?
It seems that redemption money is also going to your NRE account then? In that case, your funds as an RI are now getting mixed/ merged with those as NRI somehow. I am not sure if this complicates matters for you or not.
Any thoughts on that?

[skchettry]

Originally Posted by S_U_N

Thank you.
Since you are investing through NRE account, I understand that fresh investment (after 2007) is your overseas income.
What happens to the redemption of the funds which were invested when you were resident Indian (RI) before 2007?
It seems that redemption money is also going to your NRE account then? In that case, your funds as an RI are now getting mixed/ merged with those as NRI somehow. I am not sure if this complicates matters for you or not.
Any thoughts on that?

Yes, all investments are from overseas income.
I tried to trace back my old transactions. It seems I have redeemed all my mutual fund investments made from my resident account. So as on date, there is no mix up of resident and non resident investments.
In addition I closed down my DeMAT account when my status changed and all mutual fund investments are reflected in the CAS (Consolidated Account Statement) which they send out every month. This is PAN and mode of holding based. I receive two statements because of two different modes of holding - Single and Either or Survivor (jointly held with spouse). My wife receives her statements through NSDL which is linked to her DeMAT account.
Sorry I am unable to answer your question on the mix up part.
Regards
Sravan

[S_U_N]

Originally Posted by skchettry

Yes, all investments are from overseas income.
I tried to trace back my old transactions. It seems I have redeemed all my mutual fund investments made from my resident account. So as on date, there is no mix up of resident and non resident investments.
In addition I closed down my DeMAT account when my status changed and all mutual fund investments are reflected in the CAS (Consolidated Account Statement) which they send out every month. This is PAN and mode of holding based. I receive two statements because of two different modes of holding - Single and Either or Survivor (jointly held with spouse). My wife receives her statements through NSDL which is linked to her DeMAT account.
Sorry I am unable to answer your question on the mix up part.
Regards
Sravan

Thanks Sravan.
In my case, I am not selling any of my existing RI funds. Markets are down at the moment.

I will be investing in MF's in near future (once I move overseas). The existing account needs to be converted to something else, but not sure what at the moment.

[DigitalOne]

Motilal Oswal is opening up Index investing in midcap , small cap, and the broader Nifty 500 indices by introducing new Index funds.

One fund house has bitten the bullet; Hopefully, competition would induce others to do so

News link

The New Fund Offer of these funds will open on 19 August and close on 30 August

Motilal Oswal Asset Management Company Ltd. is set to launch four index funds tracking the Nifty 500, Bank Nifty, Nifty Midcap 150 and Nifty Smallcap 250. Three of these funds – Nifty 500, Nifty Midcap 150 and Nifty Smallcap 250 largely or wholly cover India’s mid and small cap listed space, giving investors a passive option in an arena dominated by actively managed mutual funds.

Disclaimer: For information purposes only. Not an investment advice.

Personal view: These indices are definitely worth considering. I was invested in Nifty 500 long back when it was offered by Benchmark AMC (which was acquired by Reliance AMC); Fund was later discontinued. I will wait for other AMCs to offer the same indices and then consider investments. I generally stick to 5-6 AMCs only.

[soarer]

Experts,
Looking for some expert advice for my retirement planning and have time horizon of 15 years to accumulate the corpus. My agent has suggested the following funds

My Risk appetite is 80:20 Ratio with 80% being OK to invest in high risk funds for next 5 years.

Fund name
Mirae Asset Large Cap Fund-Reg(G) (16% of my planned investment)
HDFC Small Cap Fund-Reg(G) (16% of my planned investment)
Axis Midcap Fund(G) (16% of my planned investment)
Aditya Birla SL Equity Fund(G) (16% of my planned investment)
Axis Banking & PSU Debt Fund(G) (16% of my planned investment)
SBI Equity Hybrid Fund-Reg(G) (20% of my planned investment)

Kindly advice whether the following are good or should I reconsider any of the above.