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Old 30th December 2020, 12:39   #3616
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Re: The Mutual Funds Thread

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Originally Posted by DigitalOne View Post

ICICI MF once rescued a faltering Bharat 22 ETF issued by them by investing a substantial amount from one of their existing funds. This was a clear violation of the investment mandate of the fund but they covered it up.
Not able to find the source link for this but I very clearly remember reading it.
They also invested AMC money in ICICISecurities IPO to bail it out from undersubscription.

https://www.thehindubusinessline.com...le24547611.ece

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Originally Posted by kshastry View Post
@smartcat

What is your view on investing for a 5-8 year horizon; are "internaltional funds" investing in non-India worldwide stocks are a better bet OR the Indian Equity funds?
Many indian stocks/MFs return poor or negative exchange rate adjusted returns. Though in rupee terms they may look positive. In that respect if you invest in international index funds then the returns will be the index returns+ exchange rate return(INR depreciation). Assuming that in the long run i.e. greater than 3 years, Indian currency will depreciate. However other international mutual funds offering from Indian fund houses often are just feeder funds to some other international fund, and hence, I think, they will have layered expenses reducing overall return.

Last edited by huntrz : 30th December 2020 at 12:41. Reason: added link
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Old 30th December 2020, 13:13   #3617
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Re: The Mutual Funds Thread

One can look at Parag Parikh Mutual fund, if they want to invest mix bag that is Indian Companies as well as foreigh companies. At present due to US market is on high hence to take advantage of this situation many fund houses in India are selling funds which contains foreign stocks or real estate but their performance and knowledge in this area is yet to be proven.
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Old 30th December 2020, 13:44   #3618
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Re: The Mutual Funds Thread

Gents - those using valueresearchonline to track your SIPs / investments, does the update linked to the PAN reflect automatically or one should have to manually feed in by importing our CAMS statement from time to time?

Cheers,
Vijay
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Old 3rd January 2021, 08:26   #3619
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Re: The Mutual Funds Thread

Looking for some experts views on my mutual funds investment. My CAGR is 40% up, should I stay invested or exit?

I have Mirae Blue Chip, Focused and Great Consumer funds. SIP started in Feb 2019. Also heavily invested lump sum amounts during Mar'20 to July'20 when market was down.
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Old 3rd January 2021, 08:55   #3620
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Re: The Mutual Funds Thread

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Originally Posted by manish_symc View Post
Looking for some experts views on my mutual funds investment. My CAGR is 40% up, should I stay invested or exit?

I have Mirae Blue Chip, Focused and Great Consumer funds. SIP started in Feb 2019. Also heavily invested lump sum amounts during Mar'20 to July'20 when market was down.
Selling mar/apr lumpsums now will attract STCG so may want to wait a few more months to cross 1 year. Older lots can be booked for profit.
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Old 3rd January 2021, 09:05   #3621
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Re: The Mutual Funds Thread

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Originally Posted by manish_symc View Post
Looking for some experts views on my mutual funds investment. My CAGR is 40% up, should I stay invested or exit?

I have Mirae Blue Chip, Focused and Great Consumer funds. SIP started in Feb 2019. Also heavily invested lump sum amounts during Mar'20 to July'20 when market was down.
If you are looking for long term asset building, I would suggest you consider the portfolio rebalancing concept. Set yourself a Equity-Debt proportion and move the funds according to this split. Keep adjusting your monthly in flows to re-balance your portfolio to match your target Equity-Debt split. With this approach, you really don't have to time the market and will get very good returns in the long run.
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Old 3rd January 2021, 12:37   #3622
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Re: The Mutual Funds Thread

For someone who just started to invest and is in the 20% tax bracket, any suggestions on:
  • High Risk - High reward MF to maximize profits?
  • Medium term (5 year) asset building safe investment option that beats FD rates?

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Originally Posted by graaja View Post
If you are looking for long term asset building, I would suggest you consider the portfolio rebalancing concept. Set yourself a Equity-Debt proportion and move the funds according to this split.
...
What do you think is a good Equity-Debt proportion? I just started investing last year and I've been playing it really low - like 2k SIPs for the past 10months or so and my current Equity to Debt ratio is about 90-10.
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Old 3rd January 2021, 13:01   #3623
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Re: The Mutual Funds Thread

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Originally Posted by pandey.jai View Post
What do you think is a good Equity-Debt proportion? I just started investing last year and I've been playing it really low - like 2k SIPs for the past 10months or so and my current Equity to Debt ratio is about 90-10.
Textbook on asset allocation says equity allocation % = [100 - (your age)]

So if you are 30 years old, your equity/debt allocation should be 70/30.

But I prefer 50/50 allocation for simplicity.
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Old 5th January 2021, 18:33   #3624
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Re: The Mutual Funds Thread

There is an NFO by ICICI Prudential - ICICI Business Cycle Fund, available for subscription till 12 Jan.
Can the experts please advice if it is a good option for 2-3 years of investment? Looking to invest not more than 50k lumpsum.
Thanks in advance.
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Old 5th January 2021, 20:00   #3625
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Re: The Mutual Funds Thread

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Originally Posted by neeraj08 View Post
There is an NFO by ICICI Prudential - ICICI Business Cycle Fund, available for subscription till 12 Jan.
Can the experts please advice if it is a good option for 2-3 years of investment? Looking to invest not more than 50k lumpsum.
Thanks in advance.
You should not be investing in any equity fund for 2-3 years. Equity investments should be for atleast 6-7 years.Valuations are high so one must stagger investments over the next year and not invest lumpsums.
Most of these NFO's are launched merely to gather AUM. When SEBI brought about recategorization in April 2018, fund houses were allowed only one scheme in each category. The only loophole is the thematic category where they can launch as many schemes as they wish. As per ICICI this fund "aims to identify and invest in opportunities across sectors/themes/market caps, based on prevailing business cycle". Isn't this what a typical multi cap fund does? If you can find an old multicap / value fund with proven track record that does basically the same thing then there is absolutely no point going with an unproven NFO.
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Old 5th January 2021, 20:40   #3626
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Re: The Mutual Funds Thread

What are floating rate funds? My advisor is suggesting Kotak Floating Rate Fund for 1-2 year investment horizon.
What are the risks involved?
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Old 5th January 2021, 21:40   #3627
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Re: The Mutual Funds Thread

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Originally Posted by Holyghost View Post
What are floating rate funds? My advisor is suggesting Kotak Floating Rate Fund for 1-2 year investment horizon.
What are the risks involved?
Floating rate funds are supposed to invest in bonds with variable interest payouts (like how your home loan interest is increased or decreased frequently). So it sounds great in theory - if interest rates are rising, you will get higher rates.

Fly in the ointment: there are not enough floating rate bonds in the market for these mutual funds to invest. That is, companies do not bother to raise capital using floating rate bonds since it is risky for them. So all floating rate bond fund managers are forced to invest in normal short term fixed rate bonds. That means they behave exactly like funds in "Debt: short term" category. Take your "Kotak Floating Rate Fund" portfolio as an example:

The Mutual Funds Thread-screenshot_1.jpg

The Mutual Funds Thread-screenshot_2.jpg

Any security that has a percentage associated with it is a normal fixed rate bond. Eg:

6.43% HDFC 29/09/2025
7.40% REC 26/11/2024
5.22% GOI 15/06/2025

Only securities that do not have a percentage coupon rate associated with it is floating rate bond. Eg:

ONGC Petro Additions 2025
State Bank of India 2056

So out of 25 or so securities, only 2 are floating rate bonds. Rest are fixed rate bonds (just like any other short term bond). Basically, funds in this category do not work as advertised.

Last edited by SmartCat : 5th January 2021 at 21:43.
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Old 6th January 2021, 13:54   #3628
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Re: The Mutual Funds Thread

On the "expert" advise of her HDFC RM my wife invested in HDFC Life Pro growth Plus(Opportunities Fund) not knowing that its a ULIP rather than a mutual fund. This fund has a lock in of 5 years and guaranteed payout after 10 years if you continue to pay the premium. She later on realized the blunder but by then the damage had been done.

In the current scenario the fund has shown some positive movement and I was wondering if there is a way to exit this now after 3 years? If not then what is the best way to handle this investment. She has committed around a lakh annually to it.
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Old 6th January 2021, 17:23   #3629
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Re: The Mutual Funds Thread

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Originally Posted by Maverick Avi View Post
In the current scenario the fund has shown some positive movement and I was wondering if there is a way to exit this now after 3 years? If not then what is the best way to handle this investment. She has committed around a lakh annually to it.
They would have given you a nice glossy policy document. Read up on the charges for discontinuing the policy & redeeming the proceeds. Or just call up customer care and ask.

If the charges are too high, pay for the annual premium by selling some equity MF units every year. So it will be equivalent to shifting funds from equity MFs into this ULIP. You will feel better this way, since you don't have to commit fresh funds.

Another option: Most ULIPs allow you to shift from equity to debt. Login to HDFC Life & change your allocation to 100% debt. And treat this as a PPF type 10 year investment. Your overall post-tax returns will match that of a bank fixed deposit atleast (despite the higher charges involved in ULIP).

Pro Tip: Avoid all future meetings with relationship managers. Their only job is to meet targets by pushing financial products. Note that they keep changing RMs every year - so the the new guy has a reason to call up and have a meeting to introduce himself. Since the call will come out of the blue, prepare an alibi beforehand & practice what you will say when the call comes!

Last edited by SmartCat : 6th January 2021 at 17:47.
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Old 6th January 2021, 19:05   #3630
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Re: The Mutual Funds Thread

Quote:
Originally Posted by Maverick Avi View Post
On the "expert" advise of her HDFC RM my wife invested in HDFC Life Pro growth Plus(Opportunities Fund) not knowing that its a ULIP rather than a mut.....it this now after 3 years? If not then what is the best way to handle this investment. She has committed around a lakh annually to it.
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Originally Posted by SmartCat View Post
They would have given you a nice glossy policy document. Re......will come out of the blue, prepare an alibi beforehand & practice what you will say when the call comes!
Even i am in a similar situation wherein an advisor has sold a ULIP plan to my father who was looking for MF. The advisor portrayed the ULIP in terms of pure investment. With monthly premiums of Rs.8500 with premium period of 5 years and investment for 10 years, he was promised around 15% interest rate. The plan is Future gains from bajaj allianz. As the policy documents were received on 29th December 2020, it is still in the look in period. So is it advisable to cancel the ULIP plan? If so what is the process to be followed. Kindly advise.
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