[ghodlur]

MF gurus,

Need advise. I have some surplus funds available with me and wife. Was thinking of investing in lumpsum in index funds, investing horizon is 3 yrs as of now but can think of prolonging if returns are good. Is this a good idea? There is no goal associated with this, can merge with existing goals. Any pointers which would be the best index fund out there which would generate decent returns. More inclined to Nifty index funds.

Thanks in advance.

[hrman]

I have personally invested in the below:
1. Canara Robeco emerging equities fund- Growth
2. Franklin India Prima fund
3. AB Sunlife flexi cap fund
4. Axis Bluechip fund.
5. Mirae asset large cap fund

The above have given good returns in the past 2+ years of investment in descending order of returns.
My investment in FT India Income opportunities fund is stuck after it was wound up. Out of the 6 funds which the SC has asked FT to redeem, this fund is the only one where the redemption will not happen anytime soon.

Other funds which I am closely tracking is SBI Small cap and Mirae Asset Emerging Blue chip. But the fund managers have stopped accepting any inflows into these funds. These have given great returns as well.

[livyodream]

Originally Posted by hrman

I have personally invested in the below:
1. Canara Robeco emerging equities fund- Growth
2. Franklin India Prima fund
3. AB Sunlife flexi cap fund
4. Axis Bluechip fund.
5. Mirae asset large cap fund

The above have given good returns in the past 2+ years of investment in descending order of returns.
My investment in FT India Income opportunities fund is stuck after it was wound up. Out of the 6 funds which the SC has asked FT to redeem, this fund is the only one where the redemption will not happen anytime soon.

Other funds which I am closely tracking is SBI Small cap and Mirae Asset Emerging Blue chip. But the fund managers have stopped accepting any inflows into these funds. These have given great returns as well.

SBI Small cap has opened up with 25000Rs capped per month.

[hrman]

Originally Posted by livyodream

SBI Small cap has opened up with 25000Rs capped per month.

Oh. From Zerodha, its not even showing up in the options. Let me check again.

[Maibaa]

Originally Posted by SoumenD

Did you guys manage to take a call? Did you exit the fund or still holding on?

I am still holding on to it. Returns stand at a respectable 9%(annual return) now which is the highest I have seen since 2017

I did exit the fund when the markets recovered and my investment turned positive. It happens to be seen if this was a wise decision or not depending on the returns from my reinvestment in direct equity.

[audioholic]

Originally Posted by hrman

Oh. From Zerodha, its not even showing up in the options. Let me check again.

Was able to restart SIP on SBI Small cap today. I transact directly in their website.

In other news, from the last three years, I started MF first with SBI, then Mirae and put almost equal amounts of money in both. I also started a Global FOF in Icici Prudential MF since I also wanted to put my money in global funds. As of today, if I see the cumulative XIRR of these three houses, SBI has given me the least returns at 15.5% per annum, while Mirae stands at a whopping 35.5% and the ICICI FOF at 16.5%. I have mainly invested in Hybrid Equity funds in both Mirae and Sbi and also Mirae Tax saver which has performed well.

Going forward, I am thinking if its a good idea to give more weightage to Mirae asset since the returns look pretty good. Of course I don't expect 35.5% to sustain in the longrun, but if I compare side by side, I dont see the SBI figures very impressive. One thing to note is that I did invest around 30% of my overall allocation in SBI to Gilt fund whereas in Mirae it was 100% equity. But in the longrun, I am thinking if I should stick to Mirae asset more than SBI. Any thoughts about the company?

[hrman]

Originally Posted by audioholic

Was able to restart SIP on SBI Small cap today. I transact directly in their website.

I have mainly invested in Hybrid Equity funds in both Mirae and Sbi and also Mirae Tax saver which has performed well.

Going forward, I am thinking if its a good idea to give more weightage to Mirae asset since the returns look pretty good. ... But in the longrun, I am thinking if I should stick to Mirae asset more than SBI. Any thoughts about the company?

If your experience with Mirae has been good, I suggest you stick to it. For comparison, I have invested in Large cap funds of Axis and Mirae. Over the same period the returns have been 1 pc point lower in Mirae compared to Axis. But the timeframe of 1+years is too short IMHO. It also depends on which scheme you chose. I liked Mirae Asset Emerging funds, but the Fund manager had stopped accepting new investments for quite some time now. They had opened SIP mode last year, but I think that is stopped too.

Axis and Canara Robeco are a couple of my favourite fund houses at this moment.

I was looking at SBI small cap since it was one of the best performers in the Small cap space. As you may be aware, small caps are very very volatile in a 3-5 years range. Any investment should be looked at with a 7 year time frame

[DigitalOne]

A few points distilled from what I have read in news reports and articles. Below trends are worldwide including India

• Inflation is rising. Oil and other commodity prices are rising.
• Interest rates will see an upward movement.
• Government bond yields are already rising.
• Equity markets have already factored in the expected post-pandemic growth surge

Impact on investments:

Government bond funds (Gilt funds) are already in the negative territory this CY and this trend will continue for some time. Not a good time for lump sum investments into Gilt funds.

Liquid and short-term bond funds will have minor dip as interest rates increase but will soon start giving returns in line with the interest rates (5-6 % in India).

Equity markets will be range-bound or negative for the next couple of years as the growth is already factored in.

[atnyia]

Today, I received an SMS from Zerodha that they will do quarterly settlement in a few days. Additionally, they mentioned that I could invest in overnight Mutual Funds (Direct Plan).

The UTI one has the expense ratio of 0.06 and CAGR of 4.7% (following mainly overnight rates).

I understand the theory and it makes sense instead of keeping funds in a bank account.

Is it a good option to keep the liquid cash parked into?

[Thebat]

Originally Posted by atnyia

The UTI one has the expense ratio of 0.06 and CAGR of 4.7% (following mainly overnight rates).

I understand the theory and it makes sense instead of keeping funds in a bank account.

Is it a good option to keep the liquid cash parked into?

Overnight funds are a great avenue to park short term surplus. They have an average maturity of one day and mainly invest in overnight CBLO's. As you have told UTI has the lowest expense ratio and is one of the largest funds making it an appropriate fund in the category to invest.

While comparing to banks the current YTM of overnight funds are hovering at 3.15% to 3.30% post expenses so you can take a call accordingly.

[Maverick Avi]

What happens when a fund house decides to wrap up business in India. Do they freeze the NAV on a particular day and return the money to unitholders and just pack up?

I had started my mutual fund journey just 1.5 years back and parked some excess funds in Franklin's Ultra Short Bond Fund. At that time most rating agencies had good reviews for them. But going by their recent fiasco I was just wondering that what if a fund house decided to wrap up 5 to 7 years from now? Is my money at risk? Most experts suggest that for long term investors(~10 years) equity is a good bet. But I just shudder to think what if something like this happens to another fund house 10 years down the line. Mirae Asset has good reviews all over but so did Franklin a few years back. I have a few SIPs in Mirae Assest's equity plans. Is it a safe fundhouse?

[SmartCat]

Originally Posted by Maverick Avi

What happens when a fund house decides to wrap up business in India. Do they freeze the NAV on a particular day and return the money to unitholders and just pack up?

I was just wondering that what if a fund house decided to wrap up 5 to 7 years from now? Is my money at risk? Is it a safe fundhouse?

You are mixing two different things here. Franklin goofed up with their investments in their bond funds - that's why those particular MFs are shutting down and returning money back to investors. Franklin Templeton Mutual Fund House (the business entity) is still around, and you can still invest in their equity and other debt funds.

No mutual fund house will "wrap up" their business and shut down. Because assets under management is valuable. They will sell their business to another mutual fund house instead. Eg: Reliance Capital sold Reliance Mutual Fund to Nippon India.

[Maverick Avi]

Originally Posted by SmartCat

You are mixing two different things here.

Yeah, maybe I did but the intent was to understand that can a fund house actually just lock the NAV and freeze the money? I don't think any court has penalized Franklin for what they did so this seems legitimate and maybe some other fund house might resort to same tactic in future.

I also understand now that why my parents were happy putting all their savings in SBI FDs, NSCs or KVPs. They are more like fill it shut it forget it instruments. MFs, stocks need constant attention and knowledge enhancement. I can see posts in this forum where people were apprehensive about Franklin and had exited in early 2020. Wish I had found this back then.

[pandey.jai]

I have about 70k rupees left over from one of my "investments" in some RD kinda thing with a bank, and I was trying to look at overnight funds - since that is something I have never really got a hang of. The returns of overnight funds from UTI and Canara Robeco show a return of around 3% over the last 3 months.

My understanding is that such funds can be used to park surplus money for a short time. If this understanding is correct, how does one justify investing any surplus amount in one of these overnight funds for any length of time, given the rate of interest matches with that of Savings account ROI of most banks?

What seems to be the missing piece here?

[SmartCat]

Originally Posted by pandey.jai

If this understanding is correct, how does one justify investing any surplus amount in one of these overnight funds for any length of time, given the rate of interest matches with that of Savings account ROI of most banks?What seems to be the missing piece here?

- Overnight funds are theoretically safer than a bank. It is only behind "RBI treasury bills" in terms of safety of funds.

- Many people do not want to keep more than 1L/2L in savings account, because of fear of online fraud. You can keep large amounts in an overnight fund without such fear.

- Returns from savings account is fixed at 3.5%. Returns from overnight funds is variable. Historically, overnight funds have returned 6.5% pa over a long term. If interest rates rise and there is a liquidity crunch, returns from overnight funds will shoot up.

- Overnight funds can be pledged with brokers and used for margin/derivatives trading in the stock market.