[SmartCat]

Originally Posted by Simhi

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.

If you got in at the wrong time, you might not see any returns for 2 or 3 years. That's why gilt funds need to be treated like a long term investment. But -

- Old bonds are redeemed and newer long term bonds are added
- Fund manager might shift to 3 month treasury bonds (with 7% annualized returns)

So there is a mathematical certainty of gilt funds hitting all time highs, every few years.

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.

Correlation is a statistical term. Everything is correlated with everything else. Equity with gold, equity with bonds, crude oil with bonds/equities, bonds with currency, currency with equity and so on. Correlation can be positive or negative.

Now there is an investment phenomenon called "flight to safety".
https://en.wikipedia.org/wiki/Flight-to-quality

Whenever there is a global financial crisis, money rushes out of equity and rushes into government bonds. That's why gilt funds returned super-normal returns in 2001 and 2009, but partly reversed immediately after that (when things got back to normalcy)

[rayjaycleoful]

Used Coin (Zerodha) for the first time. Invested 5000 in a fund and got 146.370 units at 34.160 NAV. Multiply the two and you get 4999.999.

However, my total investment on the portfolio tab is 4999.00 and in the order book tab it is 5000.I'm new to this so can someone tell me where I lost a rupee?

[Simhi]

Originally Posted by rayjaycleoful

so can someone tell me where I lost a rupee?

I would not be much worried as long as right number of Units are allotted. Please calculate the Units as per NAV declared for the day (either on AMC site or www.amfiindia.com) and then verify the Units calculated against the AMC account statement. As long as Units match, you should be fine.

[SoumenD]

Didnt find a dedicated thread on NPS, so posting here.


Anybody invested through KARVY? Not MFs but my NPS is handled through Karvy. Previous employer got it done from Karvy a few years back & I have been continuing only voluntary contributions after I left(previous firm) in this for tax benefit(80 CCD I guess). Now the latest news on Karvy(SEBI clocks them from enrolling new customers) since last few weeks got me doubtful as am not sure how this thing works. Is the investment safe with govt or does Karvy hold it on their behalf & hence at risk? Can I switch to some other vendor? Appreciate some inputs on this.

[DigitalOne]

Originally Posted by SoumenD

Is the investment safe with govt or does Karvy hold it on their behalf & hence at risk? Can I switch to some other vendor? Appreciate some inputs on this.

It is safe. Karvy in this case acts as a "Point of Presence" (PoP) only; In other words, as an agent for transactions, and does not hold any units/securities. You can login to NPS site and check your account.

[hallik9]

This is a fantastic thread for a non finance guy like me. Did have a question to the experts here. When we invest in a flexigrowth plan, any suggestions on what should be the split between opportunity fund and Bluechip fund? Should it be 75:25 or 90:10 or any other number?

[SoumenD]

Originally Posted by DigitalOne

It is safe. Karvy in this case acts as a "Point of Presence" (PoP) only; In other words, as an agent for transactions, and does not hold any units/securities. You can login to NPS site and check your account.

Unfortunately whenever I try to login to this NSDL website it says 'PRAN not found in database'. My online contributions are done through Karvy's NPS portal itself.

[DigitalOne]

Originally Posted by SoumenD

Unfortunately whenever I try to login to this NSDL website it says 'PRAN not found in database'. My online contributions are done through Karvy's NPS portal itself.

Have you ever recieved any mails from NSDL itself, from this cra@nsdl.co.in mail id? They send a monthly statement of NPS transactions.

PRAN is a 12 digit number. If Karvy has not provided the right number to you, then you immediately have to take some action, don't know what. This looks like trouble to me

By the way, what proof were you submitting for your NPS tax benefits? Can't you contact anybody from your previous organization to check if they are facing similar issues?

[SoumenD]

Originally Posted by DigitalOne

Have you ever recieved any mails from NSDL itself, from this cra@nsdl.co.in mail id? They send a monthly statement of NPS transactions.

I get mails from them but for MFs, never for NPS.

Originally Posted by DigitalOne

PRAN is a 12 digit number. If Karvy has not provided the right number to you, then you immediately have to take some action, don't know what. This looks like trouble to me

Yes I have got PRAN number and the card as well with the number. Have raised a query with Karvy to check what's going on.

Originally Posted by DigitalOne

By the way, what proof were you submitting for your NPS tax benefits? Can't you contact anybody from your previous organization to check if they are facing similar issues?

For tax benefit we can download yearly statement from Karvy website and that serves as tax proof. I have been doing that since last 2 years(started my NPS in 2017 mid).

[VWAllstar]

Has there been a discussion on how agents make money when they help a customer enroll for a SIP for a long time?

Do they get a cut out of our investments every month or there is one single benefit?

I have enrolled for MFs via an agent and since I have nothing to compare, what can be the possibility that the agent is eating some part of the actual increase in the value?

This may really sound naive but to be honest I have not much insights and went ahead with it on my relatives reviews.

[adi.mariner]

Originally Posted by VWAllstar

how agents make money when they help a customer enroll for a SIP for a long time?

AFAIK, all Regular Plans of Mutual Funds have a TER (Total Expense Ratio). They are the costs incurred for managing the fund (salaries of fund managers, legal fees, trading fees, etc). They also include the commission given to the Agent who enrolls your SIP. On the other hand there are Direct Plans which have a lower TER as the Investor has to directly invest without using the services of an Agent. All the other things are the same.

[carboy]

Originally Posted by VWAllstar

I have enrolled for MFs via an agent and since I have nothing to compare, what can be the possibility that the agent is eating some part of the actual increase in the value?

Did you setup the SIP in a Direct Fund or a Regular Fund? If it's in a Regular Fund, then just check the Expense ratio of the regular fund & that of the corresponding direct fund - expense ratio of the direct fund will be lower. So obviously there are more expenses - one of which is the agent's commission.

[SoumenD]

Originally Posted by DigitalOne

Have you ever recieved any mails from NSDL itself, from this cra@nsdl.co.in mail id? They send a monthly statement of NPS transactions.

PRAN is a 12 digit number. If Karvy has not provided the right number to you, then you immediately have to take some action, don't know what. This looks like trouble to me

Originally Posted by SoumenD

Yes I have got PRAN number and the card as well with the number. Have raised a query with Karvy to check what's going on.

Update : Spoke to Karvy (KFintech) customer care and turns out Karvy is not a PoP, rather a CRA. So Karvy and NSDL are two different Record keeping Agencies both approved by government for NPS maintenance. Its so mentioned in this NPS TRUST LINK as well.

So, since my PRAN was received via Karvy, it wont be available with NSDL & vice-versa. Karvy came into picture in 2017 only, so folks who have opened their accounts after 2017 mid would have their PRANs from them. Rest will have it from NSDL itself. I can transfer my CRA to NSDL if I want as per them by filling a form & sending it to NSDL via courier.

[inder]

Team any views on the NFO launched by Aditya Birla Sunlife. Its a PSU equitu fund.

[srsrini]

Originally Posted by inder

Team any views on the NFO launched by Aditya Birla Sunlife. Its a PSU equitu fund.

A common view is applicable to every mutual fund NFO - you can avoid them. The very rare exception would be a fund that happens to be the first in a category that you are interested in, or more often a fund/ETF that is the first to track an index that you are very keen on.