[Kulin_Shah]

Originally Posted by hothatchaway

Hypothetical situation: let's say my equity MF portfolio, which at cost price is 2 lakh has appreciated to 2.8 lakhs. I decide to redeem 1.3 lakh to meet a personal exigency. Am I correct in estimating that the redemption will not be subject to LTCG tax since the whole corpus had appreciated by 80 thousand only? The corpus has been held for several years and investment was systematic and not lump sum. There is no other capital gains transaction under this PAN

I think not. You have take FIFO into account for calculation. In any case the redemption amount in 1.3L, so proportionately the capital gains will be less than 80K. Since there is no other CG, this MF gain can be mentioned under exempted income in the ITR1.

Hope this helps.

[hothatchaway]

Originally Posted by Kulin_Shah

I think not. You have take FIFO into account for calculation. In any case the redemption amount in 1.3L, so proportionately the capital gains will be less than 80K. Since there is no other CG, this MF gain can be mentioned under exempted income in the ITR1.

Hope this helps.

Thank you! I was also thinking after posting that the CG appreciation will perhaps be calculated on a per unit basis. So if I bought 200 units two years back @ RS 1000 and today they are worth 1500/unit. If today I redeem RS 120,000 that equals to 120k/1500 = 80 units sold × rs 500 CG = RS 40,000 CG total.

Hope this makes sense in some way

[sunilch]

Originally Posted by hothatchaway

Hypothetical situation: let's say my equity MF portfolio, which at cost price is 2 lakh has appreciated to 2.8 lakhs. I decide to redeem 1.3 lakh to meet a personal exigency. Am I correct in estimating that the redemption will not be subject to LTCG tax since the whole corpus had appreciated by 80 thousand only? The corpus has been held for several years and investment was systematic and not lump sum. There is no other capital gains transaction under this PAN

It will be FIFO only. Whatever units you redeem, do the calculation accordingly.

Also, the MF statement will do it for you anyways. It will show you the cost and the gain and you can use those numbers without much thought.

[born_free]

Originally Posted by born_free

Thanks, I will check that out, I assume you need to invest through the platform to get the LTCG calculations.


I want the tool to be more generic so that any one can upload their CAMS Transaction file and get the results irrespective of how they invested .

70% work is done, I just need some reliable way to read the the pdf transaction file and parse data in python programming language.

Later I plan to create a full fledged website for portfolio evaluation/planning/recommendation. etc.

As promised first version of the tool is available to extract the MF transactions from CAS statement and calculate units to sell so that LTCG is tax free .

It also saves the data in CSV format and display data in interactive cloud based environment.

Please see the github link with documentation.
https://github.com/ajayrawatsap/mf_data#readme

For most users cloud based application should be sufficient as no installation/set up is required.

Advanced users can try command line based local installation.

sample output

[Jaguar]

Need some advice.

As part of rebalancing, I have decided to sell some old ELSS. The issue is, the account linked to the portfolio is long closed. To update a new account, the fund house (HDFC MF) is asking for a canceled cheque of the old account or an account closure letter from the bank. I don't have the old checkbook and the bank (HDFC) is not able to retrieve the details of the old account. I tried through customer care and visited the local branch. The guy tried searching using the old account number, PAN, phone number, etc to no avail. I have given a request, which he said he will forward to the backend team and if they find anything, he can help with the closure letter. What are my options now?

This is what AMFI has to say. So it is the Fund Company's call and not a regulatory thing.

Additionally, based on the Mutual fund’s internal Risk Management policies, the investor may be required to submit a cancelled original cheque leaf of the old (currently registered) bank account (with first unit holder name and bank account number printed on the face of the cheque) or a copy of the bank passbook/statement containing the account number and the name and address of the account holder duly certified by the branch manager/authorized personnel of the bank with his/her full signature, name, employee code, bank seal and contact number.
In case the bank account is already closed, a duly signed and stamped original letter from the concerned bank on the official letter head, confirming the closure of the said account may be submitted in lieu of the cancelled cheque.
The rationale for asking for supporting documents in respect of the old bank account is to ascertain the authenticity of the request, with a view to safeguard the interest of the original/bona-fide unitholder and prevent any unauthorized/fraudulent transactions.

[saket77]

Originally Posted by Jaguar

Need some advice.

As part of rebalancing, I have decided to sell some old ELSS. The issue is, the account linked to the portfolio is long closed. To update a new account, the fund house (HDFC MF) is asking for a canceled cheque of the old account or an account closure letter from the bank. I don't have the old checkbook and the bank (HDFC) is not able to retrieve the details of the old account. I tried through customer care and visited the local branch. The guy tried searching using the old account number, PAN, phone number, etc to no avail. I have given a request, which he said he will forward to the backend team and if they find anything, he can help with the closure letter. What are my options now?

This is what AMFI has to say. So it is the Fund Company's call and not a regulatory thing.

If you place a redemption order without updating the new account, the AMC will initiate the redemption proceeds to your old account which is currently registered. When the payment bounces back (since the account is closed); the AMC will dispatch a cheque in your name to the registered address. Take that route if you’re okay with it.

Regards.

[vinodh_eee]

I am looking to invest in an Index fund through the SIP route and forget about it for a few years.
Is NIFTY500 a broad enough index to get good returns over a 10 year period? Only Motilal Oswal offers a fund tracking NIFTY500. Any feedback on this fund house? Any other suggestions are most welcome.

- Vinodh

[skchettry]

Originally Posted by vinodh_eee

I am looking to invest in an Index fund through the SIP route and forget about it for a few years.
Is NIFTY500 a broad enough index to get good returns over a 10 year period? Only Motilal Oswal offers a fund tracking NIFTY500. Any feedback on this fund house? Any other suggestions are most welcome.

- Vinodh

To the best of my knowledge in the Nifty 500 category, Motilal Oswal Nifty 500 seems to be the only fund available and possibly it is in existence for some 1+ year only. It has given 67.2 % and 68.3% in the Regular and Direct Plans respectively, expense ratio being 1.03% and 0.42% respectively.
On the other hand, if we see Nifty 50 category, there are many funds in existence since more than 10 years. Amongst these HDFC Index Nifty 50 fund with 0.4% and 0.2% expense ratio respectively has given some 14% returns during the last 5 years.
No doubt during the last one year alone, MO Nifty 500 has given 67% returns whereas HDFC Index Nifty 50 has given 63% returns.
If you have data to show that Nifty 500 index has beaten Nifty 50 over the long term, you may go for it. Otherwise if I were you I would have considered Nifty 50 over Nifty 500.
Regards
Sravan

[vinodh_eee]

Originally Posted by skchettry

To the best of my knowledge in the Nifty 500 category, Motilal Oswal Nifty 500 seems to be the only fund available and possibly it is in existence for some 1+ year only. It has given 67.2 % and 68.3% in the Regular and Direct Plans respectively, expense ratio being 1.03% and 0.42% respectively.
On the other hand, if we see Nifty 50 category, there are many funds in existence since more than 10 years. Amongst these HDFC Index Nifty 50 fund with 0.4% and 0.2% expense ratio respectively has given some 14% returns during the last 5 years.
No doubt during the last one year alone, MO Nifty 500 has given 67% returns whereas HDFC Index Nifty 50 has given 63% returns.
If you have data to show that Nifty 500 index has beaten Nifty 50 over the long term, you may go for it. Otherwise if I were you I would have considered Nifty 50 over Nifty 500.
Regards
Sravan

Hi Sravan
Thanks for your response. The only reason for Nifty500 is I thought (may be wrongly) that Nifty500 is more diversified than Nifty50. You are correct, there is only one fund tracking Nifty500. As you suggested, I will look for the returns for various indices.

- Vinodh

[.sushilkumar]

Originally Posted by saket77

the AMC will dispatch a cheque in your name to the registered address. Take that route if you’re okay with it.

Regards.

Was in Similar situation as OP & went via your suggested route. The cheque was a A/C payee. Ultimately, I had to get my details updated with MF house.

[Jaguar]

Originally Posted by .sushilkumar

Was in Similar situation as OP & went via your suggested route. The cheque was a A/C payee. Ultimately, I had to get my details updated with MF house.

Well, that is a bummer. So how did you go about updating the details?

[.sushilkumar]

Originally Posted by Jaguar

Well, that is a bummer. So how did you go about updating the details?

Got my details updated with Principle MF. All i need to do was filled up the Account update form, attached the scanned copy of cancelled cheque for new account, fill it & send it to them via email post scan, duly signed. Had to follow up 2-3 times but they did it remotely from home.

For HDFC Look at below URL

https://www.hdfcfund.com/investor-desk/forms

under Service Request Forms > Change in Bank details . Below is direct URL

https://files.hdfcfund.com/s3fs-publ...15062016_5.pdf

TBH, my experience with HDFC in any transactions is not good. Be it home loan or MF or bank, they will ask you to visit branch for every regular transaction & their staff attitude is less said than better.

[download2live]

Hey guys. If there is a 10k budget per month for investing in mutual funds for an extended period of say 15 years, what are the fund schemes you will suggest?

I will like to divide it equally between high risk, medium risk and low risk profile funds.

I will ideally like to keep brokers/demat account out and put up a direct debit with the savings account.

[ghodlur]

Originally Posted by download2live

Hey guys. If there is a 10k budget per month for investing in mutual funds for an extended period of say 15 years, what are the fund schemes you will suggest?

I will like to divide it equally between high risk, medium risk and low risk profile funds.

I will ideally like to keep brokers/demat account out and put up a direct debit with the savings account.

What is the goal you have in mind? Based on that your risk apetite can be gauged and funds suggested accordingly.

Once the funds are finalized, suggest to register on the MF houses websites directly to keep the brokers out. However there are online aggregators like Zerodha, Groww who can make the MF buying process much smoother with their interface apps.

[download2live]

Originally Posted by ghodlur

What is the goal you have in mind? Based on that your risk apetite can be gauged and funds suggested accordingly.

Aim is to grow the money. So that 15 years down the line there is money to finance the kids education, my own retirement and other such things. The spare money is not really enough to buy into property market. So I think it is better to put in something which over a long period of time will beat inflation.

I can elaborate more if needed.