[skumare]

Originally Posted by Thebat

I do not recollect the exact name of the charge but there is a certain "Upfront Charge or expense" that is charged from the customer by the PMS service which goes towards a distributor like ICICI Direct. This charge would reduce your invested amount.

There is no upfront/setup fees for the PMS and hence ICICI and the PMS may have worked out a % of the PMS annual fees to be paid to ICICI as referral.

ICICI would also get a trail comission every year you stay invested out of your fund management charges.

I am not worried about this as long as the PMS doesn't charge more than the agreed PMS service charges.

You can buy the PMS directly from the company which would save you some big bucks.

Based on the above, this may not be true in this particular scenario.

[Thebat]

Originally Posted by skumare

I am not worried about this as long as the PMS doesn't charge more than the agreed PMS service charges.
Based on the above, this may not be true in this particular scenario.

I would suggest you check once directly with the AMC which is providing the PMS regarding the charges , i am pretty sure that going through a broker means higher charges.

There is no way an AMC would sacrifice their cut of profit to pay a distributor.

[RiGOD]

Originally Posted by SmartCat

Majority of funds are decent. If a fund underperformed last year, it might start sprinting the next year. As long as a fund meets the following criteria, it is a good fund according to me:

- Well known fund house
- Decent sized assets under management (say Rs. 5,000 cr)
- Has been around for atleast 10 years (so that you can see how it performed after considering 2008 crash returns)
- 3, 4 or 5 star valueresearchonline rating.

Thanks for the advice mate. I have a plan to switch my SIP from Franklin Focused to Franklin Prima. The two options are:

1. Stop the SIP in Focused and start the SIP in Prima without redeeming the former.

2. Redeem the amount from Focused and invest it as lumpsum in Prima and start a sip from there.

Which option should I go for to get the maximum compounding effect out of my investment in long term?

[Latheesh]

I have monthly SIP running for last 3-4 years in following funds. These are the percentage distribution of monthly mutual fund investments.

ICICI Prudential Multi-Asset Fund 12%
ICICI Prudential Bluechip Fund 24%
MIRAE Asset emerging Bluechip fund 29%
Franklin India Smaller Companies Fund 27%
Nippon India small cap (Reliance small cap) 7%

I want to start an SIP from this month onward and goal is to fund my son's higher education. He just turned 6 this week. Aim is to do SIP for next few years and keep/switch to another avenue based on the conditions till he needs it.

Should I increase SIP in any of this fund (e.g. ICICI Prudential Multi-Asset) or start new SIP for this requirement. Team-bhp members were very helpful when I wanted to start SIP in above fund few years back and need your valuable input for this query.

[graaja]

Question to experts:
Is there a single platform that can track all the MF holdings? CAMS and Karvy do consolidated statement for most of the funds, but still many funds are not part of CAMS or Karvy. For these, one has to keep track of the holdings from the fund house's website. It would be convenient to have all the holdings consolidated in one platform for quick tracking.

A friend suggested me the Moneycontrol platform. Is this good? Does this require manual entry of transactions to keep track? He also warned me that Moneycontrol will sell contact details to other brokers. Is this true? In this case, is it better to live with the inconvenience of tracking through multiple websites?

What are your thoughts?

Thanks in advance for all suggestions and pointers

[audioholic]

Originally Posted by graaja

Is there a single platform that can track all the MF holdings?

I am using Valueresearchonline.com to keep track of all my funds. Its semi automatic in nature, ie can automatically add your SIPs based on the details you give but needs some setting up to do as well as in case of lumpsum investments you need to add them manually.

[carboy]

Originally Posted by audioholic

needs some setting up to do as well as in case of lumpsum investments you need to add them manually.

I imported it directly from CAMS & Karvy to valuesearchonline - they are the registrars for all the Mutual funds.

[sansvk]

Originally Posted by graaja

Question to experts:
Is there a single platform that can track all the MF holdings?

The e-CAS from CDSL or NSDL shows monthly investments and the value of the portfolio.

[rayjaycleoful]

With a goal of low risks-medium returns, and withdrawing between 5-10 years, I wish to invest x amount as lumpsum in the following mutual funds. Major inspiration and self research from post #2736 and #2737 in this thread.

Break Up:
1. Axis Blue Chip (35%)
2. ICICI Prudential Multi Asset (35%)
3. SBI Magnum Gilt Fund (20%)
4. ICICI Prudential US Blue Chip (10%)

Is this a decent allocation?
Also, what is the con of lumpsum investing apart from lack of rupee averaging in case NAV falls?

Have I assumed incorrectly if I think none of above 4 NAVs will noticeably fall suddenly?

[Simhi]

Originally Posted by rayjaycleoful

Have I assumed incorrectly if I think none of above 4 NAVs will noticeably fall suddenly?

Your assumption is wrong. Even debt scheme NAVs can fall considerably. SBI Magnum Gilt Fund NAV has fallen by 0.77% in last one week. That's a lot for a Debt scheme. We should understand how debt scheme fare in both falling and increasing interest rate regimes.

I also noticed that in our forum many have invested in / selected the SBI Magnum Gilt scheme. Similar, to range of equity schemes (Large, Mid, Small etc), we should understand that there are range of Debt scheme with varying risks.

I am attaching a reference chart. Based on our risk appetite and fund requirements we should invest across different categories of Debt schemes.

[graaja]

Originally Posted by audioholic

I am using Valueresearchonline.com to keep track of all my funds...

Originally Posted by carboy

I imported it directly from CAMS & Karvy to valuesearchonline - they are the registrars for all the Mutual funds.

Thank you audioholic, carboy. I will check out valueresearchonline.

Originally Posted by sansvk

The e-CAS from CDSL or NSDL shows monthly investments and the value of the portfolio.

I get a monthly statement from CDSL. But this is only once a month and good to see the portfolio value. I wanted something that can show me a snapshot of my investments with asset category, returns etc.

[RiGOD]

Originally Posted by graaja

I get a monthly statement from CDSL. But this is only once a month and good to see the portfolio value. I wanted something that can show me a snapshot of my investments with asset category, returns etc.

Download the ET Money app. There's an option to import your latest e-CAS statement there and it automatically extracts all the portfolio data. It then shows the category wise performance of your funds combined, with the present benchmark.

[rayjaycleoful]

Originally Posted by Simhi

Your assumption is wrong. Even debt scheme NAVs can fall considerably. SBI Magnum Gilt Fund NAV has fallen by 0.77% in last one week. That's a lot for a Debt scheme. We should understand how debt scheme fare in both falling and increasing interest rate regimes.

I also noticed that in our forum many have invested in / selected the SBI Magnum Gilt scheme. Similar, to range of equity schemes (Large, Mid, Small etc), we should understand that there are range of Debt scheme with varying risks.

Thank you for your insight. How much is considerably?
What I meant was, can it fall enough to offset my gains of a lumpsum vis a vis an SIP?


Are you saying the SBI Magnum Gilt is high risk? Can you suggest something will lower risk .

[SmartCat]

Originally Posted by Simhi

I am attaching a reference chart. Based on our risk appetite and fund requirements we should invest across different categories of Debt schemes.

This chart assumes that RISK = VOLATILITY, which is not 100% accurate. Remember that gilts funds have ZERO risk, when it comes to safety of capital. Govt securities are safer than bank deposits.

In other words, if you hold gilt funds for average maturity of the bonds (5 to 8 years), there is sovereign guarantee that you will earn the returns on that bond (7% or 8%). We cannot say the same for your typical corporate bond funds. Because corporates can default, government will not (they will just "print" the money needed to pay you)

Originally Posted by rayjaycleoful

Thank you for your insight. How much is considerably? Are you saying the SBI Magnum Gilt is high risk? Can you suggest something will lower risk

Now that we are clear about what is "risk" and what is "volatility", you need to understand that gilt funds can be volatile. It can go up and down like a typical equity fund. A gilt fund has approximately 1/3rd the volatility of an index fund.

SBI Magnum Gilt fund's best/worst month and year data from valueresearchonline:
https://www.valueresearchonline.com/...schemecode=901



Advantages of Gilt funds in a portfolio:

- Zero risk of default
- Guaranteed returns over the long term (7% or 8% or whatever)
- Has negative correlation with equities many times (meaning, when your equity fund goes down, gilt fund goes up in value).

The last line is the biggest advantage. In 2008/09, when all equity funds crashed by 50%, gilt funds went up by 30%. But next year, while equity funds recovered in value, gilt funds crashed (negative correlation at play).

If you invest in Gilt funds, treat it as a long term investment like equity funds. A good fund manager will "trade" bonds like equities. He will move into short term treasury bonds if he feels interest rates will rise. He will move into long term gilts if he feels interest rates will fall. Well-managed gilt funds have even returned 10% CAGR growth over a long term.

[Simhi]

Originally Posted by rayjaycleoful

Are you saying the SBI Magnum Gilt is high risk?

Originally Posted by SmartCat

This chart assumes that RISK = VOLATILITY, which is not 100% accurate. Remember that gilts funds have ZERO risk, when it comes to safety of capital.

Now that we are clear about what is "risk" and what is "volatility", you need to understand that gilt funds can be volatile. It can go up and down like a typical equity fund.

- Has negative correlation with equities many times (meaning, when your equity fund goes down, gilt fund goes up in value).

I don't think I agree with all your points.

1. Safety of Capital - This is true for the mutual fund holding the underlying asset. This is not true for investor. It depends at what time investor enters and exits the fund. This is also related to the next point.
2. Correlation with equities - Sorry, Gilt funds do not have any correlation with equity but only with interest rate movements. Gilt funds tend to give better return in falling interest rate regime. Last one year was good for Gilt funds due to falling interest rate. They do not perform well when interest rate goes up.

@rayjaycleoful, I would advise to visit sites like VR to look at long terms returns of funds (better to compare annual returns of regular funds as we have history here and then invest in direct scheme of those funds) and see which funds you are comfortable with. I am giving a sample comparison (not recommending these funds - do your own research)