Team-BHP - The Mutual Funds Thread

Quote:

Originally Posted by S_U_N (Post 3029290)

I have not invested in Fidelity so far, but I think they are still doing good after the take over by L&T. (Is it good to go ahead with Fidelity now?)

I don't see any need to invest in short term for a child if he/ she is below 10 in age.

L&T should do well, but I will wait, no money going in or coming out. The teams had agreed to stay for some time, so I for one will watch and wait.

Agree about the child, once the horizon is a decade or more it is safe to go for a good equity fund and go to sleep, just keeping a benign eye on the performance. I will go for a small to midcap bias since in the long term these give the best returns.

Quote:

Originally Posted by S_U_N (Post 3029290)

@faustus77:
For my 4 year old son, I am already doing an SIP of 10K per month spread across top performing equity funds (around 4-5 of them from various fund houses).

Also, all the SIP are going from my son's bank account. The money is going to be needed (hopefully) only after he becomes a major.
At that point in time, the money is entirely his money and I would have no tax liability on the same.

I will review the situation in September when I complete 1 year of investment. Then I can choose to stop the SIP or continue for the next year.

I have not invested in Fidelity so far, but I think they are still doing good after the take over by L&T. (Is it good to go ahead with Fidelity now?)

I don't see any need to invest in short term for a child if he/ she is below 10 in age.
That part has to be taken care of using other investments done in my name or my wife's name.

Please share your views.

SUN
Hi
As Sgiitk has suggested go for equity funds.In the last 50 years equity has given the best returns.What happens in the future is anybody's guess.(Que sera sera)
In case you want to hedge your bets a bit,as Nifty is at 6000,go for balanced fund with 65%+ equity component.The balance is in debt.You will see the power of compounding.
Met my agent today.His recommendation was HDFC Prudence(I have invested in it).When I asked for another one he mentioned ICICI amongst a couple of other names.Will look it up.
Regards

@faustus77; Yes HDFC Prudence is a good fund, as are their Balanced and the DPBPR Balanced. However, with a 10+ year horizon I will not be too keen on a balanced fund. Unless the heavens fall a Pure Diversified Equity with a decent midcap content is the best bet. Hew can even try the Templeton India Equity Income which has a foreign content as well, also my favourite IDFC Premier Equity which is currently open only for SIP is another.

Quote:

Originally Posted by sgiitk (Post 3030106)

Sgiitk
Hi.
For myself I am all for 100% equity.I invest directly in the market.
For my daughter I invest in mutual funds.
The reason I suggested HDFC Prudence was that to some extent it will protect your capital and lessen risk.In the last few months have invested 3 times in it.
Any experience in capital protection fund?Any suggestion?
I stick to HDFC,ICICI,SBI,Robeco fund houses.Will now start looking beyond that.
HDFC top 200 and tax saver funds havnt been performing too well in the last few months.Time to switch?any view?
Regards

Quote:

Originally Posted by J.Ravi (Post 3025583)

I am yet to get the amount credited to my bank account. Reliance MF/Karvy are the worst as far as claims settlement is concerned.

Another unfriendly, lethargic service from Reliance MF/Karvy: yesterday, I received six pay orders drawn in my favour with my bank account details printed in six different envelopes by courier, in spite of my requests in writing to arrange to credit the proceeds directly to my bank account. Perhaps, they did it intentionally with the ulterior motive to ensure that the amount would be with them for few more days before their pay orders get cleared; for thousands of redemptions, the outgoing amount involved might be in crores of Name: rupeesymbol.gif
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Name: rupeesymbol.gif
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!:Frustrati In all other MF, I got the proceeds directly credited to my bank account.

I would want to avoid going the FD route & park some spare cash into a debt fund as investment.

I have read about debt fund being a better option than FD considering the tax implications, fund performance etc, but not sure of the entry point (considering the fall in FD rates, implications on the debt fund performance), optimal duration to hang on to (1 yr? 3 yrs?), which fund is better (IDFC plan b is rated the top on money control)? etc

Also, in a dilemma to enter balanced/equity funds considering the markets are at new highs and can come down any time (or go up even).

Any view points on the debt fund investment?
Also, where to buy mutual funds considering the transaction/holding charges involved.
Thanks

Quote:

Originally Posted by faustus77 (Post 3030846)

1. The reason I suggested HDFC Prudence was that to some extent it will protect your capital and lessen risk.In the last few months have invested 3 times in it.
2. Any experience in capital protection fund?Any suggestion?

1. With a 10+ year horizon, i will look at Balanced as not just conservative and safe, but also foolhardy!
2. These do not have a very good reputation, the reason is that as the term nears completion they progressively switch into debt.I will rather take a fund like FT Dynamic PE Ratio in growth.

I am in DSPBR, FT, IDFC, HDFC & L&T as the main fund houses, I am in the process of exiting HSBC and may also exit ICICI in due course. I also got some money from my Retirement Fund in the UK which is in MaxLife Smart Invest - Balanced. There were only five approved funds in QROPS to transfer money with taxation there.

I expect a major chunk of money in 2014 when I retire. I think I will have to add a couple of fund houses in due course.

I am looking at parking 50K in HDFC Short Term Opportunities Fund

http://www.hdfcfund.com/Products/Sch...1-54568ef623aa

This is a debt fund and expected to return around 9% gain.
What I am still not clear is the taxation part? (30% bracket)
Can someone help me estimate the % of tax if I invest for following?
1. More than 3 months
2. More than 12 months

If I don't need the money after 12 months, I will redeem and put them into equity based MF.

The liquidity is decent and there is no exit load if I keep the money for 3 months.
Expense ratio is around 0.3%.

As I understand I have to pay 13.519 % as tax on the gain

Edit: Purpose is to park money at a safe enough place with good liquidity and less tax on returns. The money may be required for real estate investment in a year or less.

Currently I SIP into the following 5 schemes:
DSP BlackRock Top 100 Equity-Growth 20%
HDFC PRUDENCE FUND - GROWTH 15%
HDFC TOP 200 FUND - GROWTH 25%
Franklin India BLUECHIP FUND - Growth 20%
IDFC Premier Equity Fund - Plan A -Growth 20%
Grand total = 100%

I want to setup SIP for the FY 2013-14. Should I setup the same as last year's or does this need some tweaking?

Also, I have some other folios in Div. Payout mode. Should I switch them to Growth mode considering DTC implications.

Suggestions are welcome!

@abdriver2000; All are excellent funds. Take your pick. You may even reduce to the BlueChip and Premier. The rest are all Top 100/200 funds, i.e. large and large midcap. Prudence is one of the top balanced funds. If you have a long (5+ years) horizon then depending on your risk appetite you may give it a miss.

Hi All

I am planning to put Rs 2500 each (Total 5000) in two SIP's from this month onward. The MF's i have shortlisted are:
1. UTI opportunity
2. Principal Emerging Blue Chip
3. SBI Magnum Emerging Bluechip

Your views on the above choices or any other option worth looking at?please:

Also is it a good idea to start a SIP before the Budget is announced?

Thanks.

Rohit

Hi Guys,

I am about to start investing in some Mutual Funds via SIP and lump sum route. Kindly advise if the combination is good:

1) HDFC Prudence (lump sum of 1.5L)
2) HDFC Mid-cap opportunities - SIP of Rs 3000
3) For pure equity which would be best ? IDFC Premier Equity/HDFC Top 200/Franklin India Blue chip fund ? (lump sum of 2L).

If you guys suggest any other funds that are better than this, kindly advise.

Thanks !