[prateekm]

Originally Posted by SmartCat

OR

Quality Smart Beta replicates a largecap mutual fund, for example.
https://smallcase.zerodha.com/smallcase/SCSB_0004

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Sure, I know about Smallcase. My use case here is that people can replicate the investment thesis of any mutual fund and not be limited to the stock baskets Smallcase has. I was thinking this more on the lines of a personal/open-source project.

[vivek_lm]

Thanks SmartCat! Sorry, but a couple more queries:

Originally Posted by SmartCat

Sell 50% of value of equity funds and move the proceeds into liquid funds.

Once money is moved into liquid funds, STCG/LTCG as applicable to debt MFs come into the picture isn't it? I understand that this may not be a huge amount since the returns themselves won't be extraordinary to begin with.

Originally Posted by SmartCat

For more information on this strategy, Google the phrase "ASSET ALLOCATION" & "PORTFOLIO REBALANCING"

Yes, I had read up exactly about this 'portfolio rebalancing'- that's when I came across this whole approach of moving excess equity (beyond a self-defined threshold %) into debt and vice-versa periodically. However, the way I understood it, that didn't necessarily talk about booking profits and moving money between equity and debt, rather about adjusting future allocations (meaning monthly amounts in case of SIP approach) in a bid to balance the ratio of equity and debt allocations.

With the approach of booking profits, do you think the tax implications would eat into a considerable portion of the higher returns that one could manage with this whole rebalancing strategy (as opposed to leaving the equity/debt MF investments untouched and continuing with regular SIPs)?

[SmartCat]

Originally Posted by vivek_lm

However, the way I understood it, that didn't necessarily talk about booking profits and moving money between equity and debt, rather about adjusting future allocations (meaning monthly amounts in case of SIP approach) in a bid to balance the ratio of equity and debt allocations.

Your understanding is correct. Once you make it 50:50, it is more efficient to do rebalancing by investing future surplus into equity or debt MF, depending on its current percentage value. That is, in a downtrending market, you will be buying equity MF. In an uptrending market, you will be buying debt MF.

[RiderZone]

Unsure if this has been discussed on the forum before, but here's my silly question in any case.

I have been investing in stocks, MFs, and FDs since about 10 years. I have never "enjoyed" any of these transactions, if that makes sense, always looked at them as annoying little chores that I'm forced to do.

On top of that I never keep on top of current market trends, so I'm never able to exploit any of them. As can be expected out of such an attitude, my portfolio hasn't really seen any explosive growth. I don't particularly mind the losses, mostly because I rarely ever log into the accounts, but sometimes it feels like I'm just shoving money under the mattress and it's being eaten by rats.

What options are available for lazy people like me? I'm looking for some "wealth management" option type thing where I just throw my savings at someone and they worry about what to do with them.

[SideView]

Hi Smartcat, experts,
Can you highlight whats the difference between L&T hybrid equity fund - growth and l&t hybrid equity fund-growth direct plan.

NAV seems to be varying and higher on the second. I have been putting my money into first based on my fund mangers recommendation.

Is this any good or time to change my fund manger?

I am not happy looking at the return.

[graaja]

Originally Posted by SideView

Hi Smartcat, experts,
Can you highlight whats the difference between L&T hybrid equity fund - growth and l&t hybrid equity fund-growth direct plan.

A direct fund is when you directly invest on your own (not through an advisor). Because of this, the direct funds do not have any commission payout to dealers or brokers. This reduces their expense ratio and hence the higher returns. You can invest in direct funds directly from the fund house's website, or through platforms like MFUtility or Zerodha.

[srsrini]

Originally Posted by graaja

A direct fund is when you directly invest on your own (not through an advisor). Because of this, the direct funds do not have any commission payout to dealers or brokers. This reduces their expense ratio and hence the higher returns. You can invest in direct funds directly from the fund house's website, or through platforms like MFUtility or Zerodha.

To add further, direct plans are available to all investors. However, if one is working with a mutual fund distributor, they would suggest only regular plans - these give them commissions. Please note that I did not use the word 'advisor' here - the recent regulations make it clear that MFDs can't call themselves as advisors.

Advisor - Someone registered with SEBI as an Investment Adviser - they would charge fees from you and provide advice

Distributor - Someone registered with AMFI (and hence with SEBI too) as a distributor. They can give 'incidental advice' - and that is a broad term. Typically they don''t charge for their suggestions

Most of the people in the second category called themselves as 'Independent Financial Advisor" rill recently. SEBI's new regulations came into effect from Oct 1 and specifically disallow this term, as well as phrases containing advisor, wealth manager, etc.

[SoumenD]

Any suggestions on L&T emerging business fund? I am invested in it since 2017(stopped SIP 1 year ago). Have always been in red. Finally thanks to the current rally it’s showing green for first time (barely 3% returns) . Is it a good time to exit this fund and invest the amount somewhere else?

Its a substantial amount (around 20% of my portfolio).

[SideView]

Originally Posted by graaja

A direct fund is when you directly invest on your own (not through an advisor). Because of this, the direct funds do not have any commission payout to dealers or brokers. This reduces their expense ratio and hence the higher returns. You can invest in direct funds directly from the fund house's website, or through platforms like MFUtility or Zerodha.

Thanks! Any thoughts on “L&T hybrid equity fund - growth”? Am i taken for a ride here?

[graaja]

Originally Posted by SideView

Thanks! Any thoughts on “L&T hybrid equity fund - growth”? Am i taken for a ride here?

In terms of regular vs. direct fund, I would not say you are being taken for a ride.

All finance advisors (or rather distributors) will get commission from the fund houses in regular funds. When you invest in these regular funds, if you had filled a physical form and submitted, there will be something called EUIN number which the distributor would have filled in with his EUIN number. If you made this purchase online, then you would have to fill in an EUIN number. If you had invested by taking advice from such a distributor or advisor, then it is fair that they get a commission.

On the other hand, if you had planned your investment and you had chosen this fund based on your own research, then the distributor is making free money here. So, if you are making fund choices and are investing directly, then the distributors getting this commission is unfair and you should make sure to invest in the "Direct" funds.

The only difference between a regular fund and direct fund is this commission part. Otherwise, they are the same fund and have the same allocations. The reason why the regular funds have lower return is because of the dealer commission.

[N.A.GTC]

Originally Posted by SideView

Can you highlight whats the difference between L&T hybrid equity fund - growth and l&t hybrid equity fund-growth direct plan.

Originally Posted by SideView

Thanks! Any thoughts on “L&T hybrid equity fund - growth”? Am i taken for a ride here?

There are two things:

Direct vs. Regular plan - This difference has already been explained by the learned members here.

AND

Growth vs. Dividend plan

Simply put, a growth plan reinvests your earnings into the plan, giving you even higher interests next time. Whereas a dividend plan pays you out the earnings instead of reinvesting them into the scheme.

Therefore, within a 'growth' plan, you'll have both direct & regular plans; and within a 'dividend' plan, you'll again have both direct & regular plans.

[SideView]

Originally Posted by graaja

In terms of regular vs. direct fund, I would not say you are being taken for a .

Originally Posted by N.A.GTC

There are two things:

Direct vs. Regular plan -

Sorry guys I wasnt been clear. I was asking specific about “ L&T hybrid equity fund”.

My mistake adding growth.

[adimicra]

I have around 20 years of experience in investing in the stock market and mutual funds and what I have figured out is all you need is a very basic and simple strategy. But more importantly, the discipline and patience to stick to the strategy through different market cycles. Wealth creation is easy but executing it is very difficult as we definitely feel the need to react to changing market conditions by diverting from the strategy.

This is a super simple strategy to get you started, even if you are a super lazy investor.

Point 1 - asset allocation. Start simple. Equity:debt = 50:50.
I am leaving out gold or fancy asset allocation strategies based on risk profile etc. the 50/50 strategy will work for most. In debt portion, do consider all types of fixed income like EPF/PPF/FD/Debt funds/Bonds etc

Point 2- Rebalancing.
No need to rebalance every month. Once in a quarter or even 6 months or a year is also fine. If you see more than 5% delta, make sure you rebalance. Considering tax implications, you can determine whether to sell or rebalance using future investments. However, for a large rebalance (lets a big bull market, where equity has given 50% returns), it will take a long time to rebalance using future investments. So, use your judgement. But, rebalancing is super important.

Point 3 - Equity portfolio.
1> Nifty 50 index fund or aggressive hybrid fund (40% allocation of equity). Aggressive hybrid funds have typically beaten the market in 3 or 5 year cycles. So, I prefer those. Large cap funds are useless. Avoid.
2> Nifty Next index fund (30% allocation)
3> Midcap fund (30%) - You can use Axis or DSP Midcap. New investors can leave out midcap funds when starting and add it later after more experience. Avoid smallcap funds.

Point 4 - Debt portfolio: If you still need debt investments after considering your EPF or PPF, then consider short term debt funds to fill up the gap.

PS - Emergency fund should be separate and not clubbed with investment portfolio. Emergency fund can be invested in liquid fund. Also, life and health insurance should be covered first before creating your investment portfolio.

This is extremely simple strategy and super easy to execute. And I can guarantee that you will create good wealth with this strategy for a longer term. But can you stick to this and prevent the urge of doing something?? I recommend reading some books to develop the right mindset for long term passive investing.

Hope it helps.

[N.A.GTC]

I have a doubt: how to change the bank account that is linked to my mutual funds with the fund houses?

I have been investing in direct plans through the websites of concerned mutual funds, and I am allowed to invest only through the bank account that I have already linked to it (and any withdrawals would be made to that bank account only).

The problem: my bank was merged into another bank. As such, the old bank's website is no longer operational, I have a new customer ID, the bank has a new IFSC code.

Is there anyone here who has been through a similar process?

[sunilch]

Originally Posted by N.A.GTC

I have a doubt: how to change the bank account that is linked to my mutual funds with the fund houses?

I have been investing in direct plans through the websites of concerned mutual funds, and I am allowed to invest only through the bank account that I have already linked to it (and any withdrawals would be made to that bank account only).

The problem: my bank was merged into another bank. As such, the old bank's website is no longer operational, I have a new customer ID, the bank has a new IFSC code.

Is there anyone here who has been through a similar process?

If the investments are automatic, it will continue to work. Banks don't discard old IFSC codes or Account Numbers. And in ideal world, even withdrawals will work.

But to change the bank account details - there are two ways to do that:

1) Visit nearest CAMS or Karvy service center (there are many in all big cities) depending upon your MF house and submit the documents there along with the application letter. This will work 100% as I have done that earlier.

2) Call the customer support of each MF that you have and talk to them, they will tell you the most efficient way other than (1) above