[ranjitnair77]

Originally Posted by ramki067

Hello, Looking for retirement corpus to be build with Mutual Funds. Basically will be investing for around 15 years in MFs. Kindly suggest how to go about selecting such MFs and also what to look if i need to change the funds now and then.

Thanks in advance.

I would endorse what SoumenD has said. For a simple, uncomplicated portfolio with realistic expectations of 9-11% CAGR, I would also recommend index funds.

I've spent years trying to be clever with all kinds of active funds and eventually realised that passive Index funds are classic fill-it and shut-it kind of investment that require minimal thinking. So I'm all in on that.

For India, I would recommend a 60/40 or a 70/30 split between a Nifty 50 and a Nifty Next 50 fund. That way you have exposure to the top 100 companies in India. If you need exposure to the US Economy, consider an S&P 500 fund. Pick funds with high AUM and low tracking error and you will be all set.

Do go through Pattu's articles on Freefincal.com that covers detailed analysis of all kinds of funds, especially his articles on goal based investing and rebalancing.

[dr.delete]

Originally Posted by ramki067

Kindly suggest how to go about selecting such MFs and also what to look if i need to change the funds now and then.

I strongly endorse the views of my fellow members. When it comes to long horizon/retirement investing, indexing is the best bet for a know-nothing investor. No matter what’s the trend, indexing will always prevail in the long run.

As the time horizon of investments increases, the percentage of mutual funds outperforming the index reduces drastically. For a long horizon, only a handful of mutual funds tend to beat the market (say only 10-15% - with survivorship bias). Few of them go bust, few seriously underperform. Finding the winners feels deceptively easy, but it is not the case.

Avoid costs. Say, you earn a 12% return. Rs. 20,00,000 invested today would be approximately 7 Cr in the next 30 years. Now say you pay 1% (only, right!?) as cost in form of an expense ratio - you end up with 5.3 Cr!! You might argue the same for better returns, what if the mutual fund gives me 1% better return? Well, the data says most of them fail to beat the market. For a mutual fund to give you an extra percentage, it has to technically beat the market by 2.5% and deduct the 1%-1.5% fees. Is it possible? Yes! But less probable. And one gets emotionally affected and tries to change the mutual fund if the returns aren’t as expected for a few years. There’s taxes, transaction costs involved which further would drag your overall returns. Instead, no matter what, just invest every month in a broad based index fund (Nifty 500/S&P 500) or figure the allocation based on your needs of the different indices - Nifty 50, Nifty Next 50, Nifty Midcap 150, S&P 500 etc. and rebalance every 6 months.

I would suggest you do this - come up with a required retirement corpus figure (https://www.personalfn.com/calculato...ent-calculator), assume a 12% return on investments and invest in a broad index fund accordingly. It’s like this - on one hand you have an almost sure way (high probability) to earn the market returns (10%-12%) or invest in a mutual fund to either get a great return (low probability) or seriously underperform the market (high probability). Choice is yours. When it comes to building serious corpus I like the certainty (being ‘almost’ sure) of reaching my goals.

I will end with a great quote by John Bogle - “The greatest enemy of a good plan is the dream of a perfect plan.”

[comfortablynumb]

If anyone has a UTI Flexi Cap fund SIP scheduled during the first half of the month, please check if the money has been debited twice in July. I have one scheduled on the 3rd of every month (which was executed as scheduled), and was surprised to get a SMS of another debit this morning too. When I submitted a complaint to the AMC, I was told that they are aware of it, as it has happened in quite a few folios, and are working to remedy the issue. I am also planning to lodge a grievance with SEBI.

[earthian]

Any idea when the balance money of Franklin Templeton Funds would be paid? No intimation and the money would be handy.

[tc_rides]

I've been badly hit by LTCG and also STCG (because of SWP) this year in the mutual fund. My CA is laughing at me since I've not invested in real estate and benefitting the all purpose Sec 24. I hear there is no upper limit for claiming deductions on interest for let out property.

Would you advice buying property for renting out and benefitting tax deductions under sec 24?

Would you be knowing if we can claim it for more than 1 let out property?

How do you joint owners and co-borrowers claim the deductions for a property? Does the EMI needs to be paid separately from each account according to the proportionate share of ownership?

[ghodlur]

Originally Posted by earthian

Any idea when the balance money of Franklin Templeton Funds would be paid? No intimation and the money would be handy.

I had raised this on numerous occassion whenever I receive the marketing calls from Franklin. Last I was told that SBI has the money but is yet to disburse it. One time they said they are still in the process of liquidation of the assets. Everytime I receive a call from Franklin for buying any MF, I tell them to redeem the existing units first. Still no luck.

[Simhi]

Originally Posted by earthian

Any idea when the balance money of Franklin Templeton Funds would be paid? No intimation and the money would be handy.

Originally Posted by ghodlur

I had raised this on numerous occassion whenever I receive the marketing calls from Franklin. Last I was told that SBI has the money but is yet to disburse it. One time they said they are still in the process of liquidation of the assets. Everytime I receive a call from Franklin for buying any MF, I tell them to redeem the existing units first. Still no luck.

Extract from FT mail - "The matter regarding expenses chargeable to schemes under winding-up including distribution commission is under the consideration of the Honorable Supreme Court (SC). As directed by the SC, further distributions from the schemes can be made only after obtaining permission from the SC. We will keep you informed once we receive further orders from the SC on the distribution of the next tranche."

[whitewing]

Originally Posted by tc_rides

I've been badly hit by LTCG and also STCG (because of SWP) this year in the mutual fund. My CA is laughing at me since

Well it is a matter of perspective isn't it?
In your case, you are paying taxes on the GAINS you have made, ie you are increasing your kitty (70% or 80%).
With section 24, effectively you get a discount on the EMI payments for the home loan. Essentially meaning your LOSS is reduced marginally based on your tax slabs.

Originally Posted by tc_rides

I've not invested in real estate and benefitting the all purpose Sec 24. I hear there is no upper limit for claiming deductions on interest for let out property.
Would you advice buying property for renting out and benefitting tax deductions under sec 24?

I would suggest you assess if having a house fits into your overall scheme of things and fits in to your planned portfolio.
Keep in mind that a house generally needs periodic maintenance like painting, plumbing etc. Will involve assessing people before renting out, negotiating with brokers etc. And most important, will mean a large capital sunk in upfront (with no guarantee of making profits).
The largish loan amounts typically needed for real estate also means that one needs to be able to service the EMIs for duration where there is no tenant/there is dip in earnings etc.
That said, I believe that having a exposure to real estate is an important part of diversification. In addition, once the loan is paid off, will be a source of emotional security that you have a roof over you come what may.

Originally Posted by tc_rides

Would you be knowing if we can claim it for more than 1 let out property?

Yes you can.

Originally Posted by tc_rides

How do you joint owners and co-borrowers claim the deductions for a property? Does the EMI needs to be paid separately from each account according to the proportionate share of ownership?

EMI paid from the same account, you need to declare the % of share while claiming the deduction.

[skumare]

I have an account with MFU and have the Payezz (NACH mode) set up. However, debit to my ICICI bank account is happening on T+2 and units credited with NAV as on T+2/T+3. Even with instant payment (UPI), MFU still credits units with NAV as on T+1. (Assume all orders are placed before cut-oof time on working day).

Is there is a any service provider available who have direct net-banking interface with major banks (not thru payment gateway) or UPI and will be able to credit untis with same day NAV?

ICICIDirect does credit units with same day NAV if ordered before 2:00pm for non-liquid schemes, however one can't buy in Direct schemes.

[graaja]

Originally Posted by skumare

Is there is a any service provider available who have direct net-banking interface with major banks (not thru payment gateway) or UPI and will be able to credit untis with same day NAV?

I use netbanking facility with MFU, but I am not 100% sure if same day NAV gets applied for all transactions. There are a few which get same day NAV and a few that get T+1. But never beyond T+1. I do not use the Payez facility.

[skumare]

Originally Posted by graaja

I use netbanking facility with MFU, but I am not 100% sure if same day NAV gets applied for all transactions. There are a few which get same day NAV and a few that get T+1. But never beyond T+1. I do not use the Payez facility.

Pls check if this is still the case after April 01, 2022. SEBI mandated that effective this date, entities like MFU can't accept funds into their pool account and then transfer to AMCs. Funds are to be routed from customer account to AMC directly, this may be causing the delay in settlement.

[tc_rides]

Appreciate the detailed and thoughtful response. I wish the gain was that huge :-). Keep hearing the hallway talks of relaxing the LTCG or simplifying the taxes, and it never happens. If govt is contemplating increasing the equity share for entities like EPFO, it should revisit the tax policy for citizens and make the equity market attractive for retailers. Its a one way street if we need to share the profits, and bear the losses alone. There can be a better mechanism to attract retail investments specially in a bear market. In a bull market, even the govt makes a windfall without much ado.

[ghodlur]

Experts,

Need to know how to update the changes to the residential address in the folios of the mutual fund post the update in Aadhar card. Is there any one quick possible way online to do this or will I have to submit the info to the MF's houses individually.

[sunilch]

Originally Posted by ghodlur

Experts,

Need to know how to update the changes to the residential address in the folios of the mutual fund post the update in Aadhar card. Is there any one quick possible way online to do this or will I have to submit the info to the MF's houses individually.

Won't the updates to C-KYC propagate to all MFs? I guess that is what the c-KYC was for.

[skumare]

Originally Posted by ghodlur

Need to know how to update the changes to the residential address in the folios of the mutual fund post the update in Aadhar card. Is there any one quick possible way online to do this or will I have to submit the info to the MF's houses individually.

If you submit an updated KYC form to update the details to one of the entities (ex: bank), the same may be cascaded to all entities who use the KYC info.