[govigov]

What is the common opinion on doing a SIP to GILT funds as a long-term strategy?

Currently doing some SIPs on bluechips/tax savers/micro-small caps and the usual PF/NPS. The GILT is to complement the above, any other avenues to explore? Maybe gold ETFs?

[skchettry]

As someone who had been investing in equity mutual funds only so long but constantly being influenced by principles of asset allocation especially since I am nearing my retirement, I recently started shifting to debt funds for capital protection and higher levels of security. And then comes the FT crash and now all the news and events causing some dents to my debt investments so far. I do not have much knowledge about bond yields/interest rates etc to the extent of drawing any meaningful conclusions so as to redraw my investment strategies, but I am seriously thinking that if debt funds are also behaving this way (or am I just expecting too much?), I better stick to very short term funds while concentrating majorly on the relatively lesser volatile equity funds.

[Fx14]

Originally Posted by skchettry

I do not have much knowledge about bond yields/interest rates etc to the extent of drawing any meaningful conclusions so as to redraw my investment strategies, but I am seriously thinking that if debt funds are also behaving this way (or am I just expecting too much?), I better stick to very short term funds while concentrating majorly on the relatively lesser volatile equity funds.

From such a perspective, you may want to stick to overnight funds only for peace of mind.

[DigitalOne]

Originally Posted by govigov

What is the common opinion on doing a SIP to GILT funds as a long-term strategy?

As per this data based article on FreeFincal, the answer is clearly Yes.

To quote from the article :

Does it make sense to long-term SIP in gilt MFs?

Clearly the answer is yes. Provided we have the maturity to face huge ups and downs in the journey, stick to the SIP and rebalance either systematically or tactically (shall be discussed later) with a clear goal in mind. Provided our expectations after tax and loads is not too high.

I personally do STPs rather than SIP, for all funds not only Gilt funds. That gives greater flexibility for starting and stopping STPs in terms of amounts and duration, and rebalancing would also be easier.

I have stopped STP investments into Gilt funds for now as I believe they will give negative returns for an year at least. Inflation world over is going high, commodity prices (especially oil) are going up, and interest rates will go up. I will restart STP (and a lump-sum switch to Gilt) when I believe the interest rates are at peak.

Hoping to catch the interest rates cycle right this time. Let's see how it goes. Disclaimer: Try it at your own risk, or do an SIP .

[fhdowntheline]

I would like a view on the following Flexicap funds I have currently: i) Kotak Flexicap (maximum money here), Parag Parikh Flexicap (in which I have invested regularly for the past one year) and UTI Flexicap in which I have just tested the waters.
I am told that UTI Flexicap would be a better longer term bet than Kotak because Kotak has lower performance than its peers (atleast the parameters dont look very great) and also because of its size (34000 Cr AUM) which may tend to reduce returns going forward.

Should I continue to invest in Kotak Flexicap or move over to UTI although it has a higher Expense ratio.

[sagarpadaki]

Originally Posted by fhdowntheline

I would like a view on the following Flexicap funds I have currently: i) Kotak Flexicap (maximum money here), Parag Parikh Flexicap (in which I have invested regularly for the past one year) and UTI Flexicap in which I have just tested the waters.
I am told that UTI Flexicap would be a better longer term bet than Kotak because Kotak has lower performance than its peers (atleast the parameters dont look very great) and also because of its size (34000 Cr AUM) which may tend to reduce returns going forward.

Should I continue to invest in Kotak Flexicap or move over to UTI although it has a higher Expense ratio.

Investing in multiple funds in the same category serves no purpose. See which is the better performing one amongst the three and gradually merge the invested amount from the other funds to the chosen one.

[fhdowntheline]

Originally Posted by sagarpadaki

Investing in multiple funds in the same category serves no purpose. See which is the better performing one amongst the three and gradually merge the invested amount from the other funds to the chosen one.

Yes- I understand that- however, I would like opinion on which one amongst Kotak and UTI should I continue for long term?

[huntrz]

Motilal Oswal Nasdaq 100 fund
Put a small redemption request on this fund on 7th march and its 15th March and the funds hasn't still been credited. Already the number of disclosed fines and litigations on the AMC as mentioned in their fund factsheet has made me apprehensive about the fund house. This experience is kind of cementing it. Not sure if delay is because the fund being US index fund and a public holiday last week in India. I am thinking of moving it to Kotak nasdaq 100 FOF. Never had such an experience with any fund house till date. Not worried as of now because the amount was small and my broker icicidirect is immensely trustworthy on following these things up.

Originally Posted by fhdowntheline

I would like a view on the following Flexicap funds I have currently: i) Kotak Flexicap (maximum money here), Parag Parikh Flexicap (in which I have invested regularly for the past one year) and UTI Flexicap in which I have just tested the waters.
I am told that UTI Flexicap would be a better longer term bet than Kotak because Kotak has lower performance than its peers (atleast the parameters don't look very great) and also because of its size (34000 Cr AUM) which may tend to reduce returns going forward.

Should I continue to invest in Kotak Flexicap or move over to UTI although it has a higher Expense ratio.

Kotak flexicap and PPFAS flexicap are totally different in their investment styles. Kotak due to its sheer size and long track records as Kotak Select focus fund is safe. Its size will push it more towards large and mega caps, there by behaving closer to index. Also its size will ensure that they will have a good fund management team.
PPFAS fund on the other hand has very peculiar stock picking style sticking to value investing. Once should not be comparing their returns with other funds because their investing style clubbed with international exposure provide excellent down side protection during falls while in raging bull market they may or maynot always beat the other funds.
Don't have much idea about UTI flexicap but I see that their portfolio is an intelligent mix of stocks/sectors with tailwinds and some NIFTY top 10 stocks which occur in almost every fund portfolio.
All in all barring these 5-6 mega caps I don't see a lot of over lap between the 3 funds. You expectations from these funds should be different in the long run. During a specific time period one fund may grossly outperform the other and that doesn't mean that it will regularly out perform the other funds. it depends on the cycle we are in.

[blorebuddy]

Originally Posted by fhdowntheline

Yes- I understand that- however, I would like opinion on which one amongst Kotak and UTI should I continue for long term?

I am also in the same position and started switching from Kotak to UTI after patiently waiting for so long.

[N.A.GTC]

Originally Posted by huntrz

Motilal Oswal Nasdaq 100 fund
Put a small redemption request on this fund on 7th march and its 15th March and the funds hasn't still been credited. Already the number of disclosed fines and litigations on the AMC as mentioned in their fund factsheet has made me apprehensive about the fund house. This experience is kind of cementing it. Not sure if delay is because the fund being US index fund and a public holiday last week in India. I am thinking of moving it to Kotak nasdaq 100 FOF. Never had such an experience with any fund house till date. Not worried as of now because the amount was small and my broker icicidirect is immensely trustworthy on following these things up.

Thanks for sharing this! I have a small amount in this fund too (invested directly through their website). Definitely helps knowing this -- I'd be cautious with making any further investments in this one.

Do keep us updated on the status, though. Interested to know what happens, how long they take.

[carlosTHEjackal]

In this thread, I see many people requesting suggestions. So the proverb below should give us inspiration to learn.
“You give a poor man a fish and you feed him for a day. You teach him to fish and you give him an occupation that will feed him for a lifetime.” (Chinese proverb.)
In this case I will interpret poor man as a man seeking advice for investment.

The important criteria while selecting a Mutual Fund Scheme for investment which many investors oversee are following:

1. The AMCs (fund house) AUM.
*AUM or Assets Under Management is the total market value of investments managed by an asset management company (AMCs).
Note: Always try to invest in top 10 AMCs (Top 10 based on AUM)
Interesting Fact: Some of the top 10 AMCs schemes have AUM more than an AMC in itself.

2. For the existing MF Schemes, always evaluate the performance with Benchmark Index and its peer group.
Note: The Scheme should ideally be outperforming its Benchmark Index as well as be above 70% of its peer group’s performance.
Interesting Fact: These schemes will always beat FD returns post tax. And these schemes will always be run by top 10 AMCs.

3. Smaller AMCs or Scheme’s AUM less than Rs.500 cr might be catering to handful of Corporate investors.
Note: Try to avoid scheme’s where its AUM is less than Rs.500 cr (Just my suggestion). This is to ensure retail / individual investors are not bearing the expenses of few corporate Investors.
Interesting Fact: These schemes change their investment goal as per their corporate investor needs. Hence better to stay away even if the returns are good.

4. While investing for longterm always look at returns at various time duration like, returns of 1 Year, 3 Year, 5 Year and Since Inception (SI) of the scheme.
Note: While evaluating please compare the peer scheme’s returns against these time duration. A consistent performing scheme is always better than scheme which has performed well during 1 Year time duration. Consistency is the key.
Interesting Fact: Its difficult to find a single scheme which would have outperformed its peer group over all duration. Hence evaluate based on the your investment goal.

5. While evaluating the scheme dig into the scheme’s Top-10 holding. This should match the scheme’s invest goal.
Note: A fund manager might manage 3 to 4 scheme and would have same top 5 or 7 stocks / Bonds without giving any credance to goal of the scheme.
Interesting Fact: About 60% of the scheme’s in the MF industry will mirror the Blue Chip or Large Cap index as they will invest in Large Cap stocks invariable of the scheme’s investment goal.
Ex: Reliance, Infosys, HDFC Bank etc, stock is a common holding for all these schemes even though the scheme’s goal will not call for investing in these shares.

Some criteria which helps avoid heartbreaks:

• Avoid smaller or new kid in the block AMC.
• Avoid schemes which are not performing better than their benchmark.
• Always try to invest directly avoiding the brokers / intermediaries.
• Avoid investing based on advice from your relationship manager from Bank. They do not know your investment goal and they will suggest schemes which might not meet the above criteria’s.
• Don’t fall in love with one single AMC, diversify.
• Write-down your investment goal and evaluate the scheme’s performance against your goal at least once a year.
• Avoid the investment advice from economic times , money control etc. These portals are paid to promote few AMC hence you can’t evaluate without bias.
• Always add nomination for your investment OR inform about the investment to your spouse or family member. In case of eventuality, they should be able to access the funds.

Put effort in short-listing the fund for investment. Its your hard earned money. Learn fishing.

Happy Investing. !!!

[woodstock3001]

I’ve been investing Rs. 5000/- monthly in below mutual funds

1. Aditya Birla Sun life Pure Value Fund – Rs. 2000/-
2. Nippon India Small Cap Fund – Rs. 2000/-
3. Axis Multicap Fund – Rs. 1000/-

Out of above, I’ve redeemed Aditya Birla Sun life Pure Value Fund as it was under performing. I never saw this fund in Green however as soon as Market was bullish, I exit the fund & entire amount was invested as it is Sukanya Plan.

After closing the fund, I’ve started fund Parag Parikh Flexi Cap Fund for Rs. 2000/- to ensure my monthly investment remains same. So, my current monthly commitment is –

1. Parag Parikh Flexi Cap Fund – Rs. 2000/-
2. Nippon India Small Cap Fund – Rs. 2000/-
3. Axis Multicap Fund – Rs. 1000/-

And, looking at the returns that I’ve got till now & with rest of the investment options available, I’m further planning to increase my monthly commitment from Rs. 5000/- to Rs. 45000/- from July 2021 onwards for min 15 years and time period can be further increased depending upon situation at that time.

Goal is to create corpus (Kids education, Retirement, Holiday trip, Expensive Car, Any start-up investment for kids etc etc.) as much as possible.

I would love if I could make 6cr from this investment, but I’m not sure if 45000/- will be enough or not.

Now, since I do not have enough knowledge how to diversify my portfolio, I’m not sure which funds to select, which categories, how many funds, any other tip etc.

Tip shared by a friend is is invest every week to capture more volatility in market. Like Rs. 10,000 on 7th of every month, Rs. 12,500 on 14th of every month, Rs. 10,000 on 21st & then again Rs. 12,500 on 28th. Though not sure how good or bad it will be to track investment.

Now when I think of all this, first thing that comes to everyone’s mind is, consult an Investment Banker, however I’m little apprehensive because at times they push funds they like, so I want to start doing research till July & start investing.

Looking for opinion from fellow petrol heads on how to diversify their portfolio. & this is not the only investment that I’m doing so I’m not keeping all eggs in 1 basket as well.

[huntrz]

Originally Posted by huntrz

Motilal Oswal Nasdaq 100 fund
Put a small redemption request on this fund on 7th march and its 15th March and the funds hasn't still been credited. Already the number of disclosed fines and litigations on the AMC as mentioned in their fund factsheet has made me apprehensive about the fund house. This experience is kind of cementing it. Not sure if delay is because the fund being US index fund and a public holiday last week in India. I am thinking of moving it to Kotak nasdaq 100 FOF. Never had such an experience with any fund house till date. Not worried as of now because the amount was small and my broker icicidirect is immensely trustworthy on following these things up.

Originally Posted by N.A.GTC

Thanks for sharing this! I have a small amount in this fund too (invested directly through their website). Definitely helps knowing this -- I'd be cautious with making any further investments in this one.

Do keep us updated on the status, though. Interested to know what happens, how long they take.

Update on Motilal Oswal Nasdaq 100 fund. It seems the fund follows T+6 settlement cycle. Found that out from Zerodha. Accordingly the amount was credited on 17th i.e. on 7th working day after the transaction. So I guess the delay was expected just that the information on T+6 cycle was not readily available anywhere.

[sunilch]

Originally Posted by huntrz

Update on Motilal Oswal Nasdaq 100 fund. It seems the fund follows T+6 settlement cycle. Found that out from Zerodha. Accordingly the amount was credited on 17th i.e. on 7th working day after the transaction. So I guess the delay was expected just that the information on T+6 cycle was not readily available anywhere.

Processing for Motilal Oswal fund house seems to be delayed in general and not just this fund. I have SIP running with them and each month the updates (statement or SMSs, etc) are always about a week late. The NAV or credit date is proper but the process is always slow compared to other fund houses.

[Simhi]

SBI to start monetising Franklin scheme assets next week. Hope people stuck in FT schemes start getting their money soon.

https://economictimes.indiatimes.com...w/81574377.cms

Extract: “We will start looking at selling securities in the six schemes starting next week. Money will be disbursed to unitholders as soon as we collect a reasonable amount,” says DP Singh,