[mayuresh]

Originally Posted by Fx14

Is there an option / process for the Nominee to transfer the holdings to the Nominee's CAN?

I do not know the exact procedure. But calling them or if the nominee has MFU a/c, filing a query on their portal will get you some response.

Originally Posted by Fx14

Are all holdings in the deceased holder's account to be compulsorily redeemed irrespective of whether in profit or loss?

No redemption is required. The units are just transferred in nominee's name.

[lapis_lazuli]

Originally Posted by bharanidharang

Two years is a very short period for parking funds. Stick to FD's which will keep the capital secure. If you want to go the mutual fund route, maybe liquid fund (slightly more riskier than FD) would be the only choice. Everything else will carry risk for this short a period.

Can we park in arbitrage funds? For a short duration, say 2 years?

[bharanidharang]

Originally Posted by lapis_lazuli

Can we park in arbitrage funds? For a short duration, say 2 years?

While arbitrage funds are stable, you need to take into account any expense ratio for the same. Also, for the first few months, the return could be near FD rates or lower. My absolute return has been around 6.7% in 3 years time.

[navtiwari]

Need advise on changing my bank account with AMC’s.

Some background first:
1. I am an NRI and started MF investment on FundsIndia platform back in 2019
2. Earlier this year I stopped all my SIP on FundsIndia and started investing through Kuvera. Note, I did not redeem or switch any investment already done through FundsIndia.
3. My existing bank account on both platform and all AMC’s is my Citibank NRO account.
4. I now have a new ICICI NRO account as Citibank is moving away from retail banking.
5. I reached out to Kuvera and they said bank account will be changed on their platform but I still need to submit bank mandate change form with all AMC’ at their office.
6. My current investment is with Axis, Kotak, Parag Parikh and ICICI.

Currently, I have sent email to AMC’s to let me know if there is an online process to change bank account as I cannot physically submit the request and awaiting response.
I checked on CAMs portal but their online process is available for resident individual only.

Question1. Is there a easier way to change bank account with all fund houses with one online submission? Even separate online submission with each fund house is ok with me but I don’t know how?
Question 2. As suggested by Kuvera support team, I stopped all SIP’s till bank mandate change request is in progress. Once my bank account with Kuvera is changed can I continue my SIP with new bank account? I assume change of bank account is needed only for redemption, switch etc. I have asked this question to Kuvera also and awaiting their response.
Question3: This is unrelated but I want to move away from FundsIndia. Should I redeem or switch? Can this be done through Kuvera as I imported all my fund information when I moved?

Thanks in advance.

-Naveen

[thirugata]

Originally Posted by navtiwari

Need advise on changing my bank account with AMC’s.

Question3: This is unrelated but I want to move away from FundsIndia. Should I redeem or switch? Can this be done through Kuvera as I imported all my fund information when I moved?

Thanks in advance.

-Naveen

I can answer your 3rd question.
I had moved my MFs from IIFL to MOSL and my wife's MFs from Karvy to Kotak few years ago. But that was non digital era where I had fill in form and get it done, it should be much simpler now. Kuvera should be able to provide the information about how to do it.
Bottom line is it is possible. Previously it used to look like redemption and buying, not sure if it is treated the same way now. Do consult your CA for the tax implications of this.
Only difference in procedure could be you being NRI.

[Comrade]

Originally Posted by navtiwari

Question1. Is there a easier way to change bank account with all fund houses with one online submission? Even separate online submission with each fund house is ok with me but I don’t know how?

Try MFCentral.com. Its directly owned by KFintech & CAMS; and can process a lot of "service requests" online. They will already have all of your existing investments (both from FundsIndia and Kuvera) associated with your PAN. You can register on mfcentral just by using your PAN and email tied with (needed for OTP).

Question 2. As suggested by Kuvera support team, I stopped all SIP’s till bank mandate change request is in progress. Once my bank account with Kuvera is changed can I continue my SIP with new bank account? I assume change of bank account is needed only for redemption, switch etc. I have asked this question to Kuvera also and awaiting their response.

Yes. You can restart SIP once Kuvera registers your ICICI account. However, bank information in the folios for redemption will still be Citi, which can be updated online using mfcentral.

Question3: This is unrelated but I want to move away from FundsIndia. Should I redeem or switch? Can this be done through Kuvera as I imported all my fund information when I moved?

You don't need to redeem or switch as mfcentral as well as your eCAS statement will show all the investments. If you wish, you can even consolidate all your investments with a fund house into single folio using mfcentral. This will allow easier tracking.

[wocanak]

Originally Posted by bharanidharang

While arbitrage funds are stable, you need to take into account any expense ratio for the same. Also, for the first few months, the return could be near FD rates or lower. My absolute return has been around 6.7% in 3 years time.

But the advantage is Arbitrage funds are taxed as equity, if you are in the highest tax bracket the taxes on redemption will be lower than FD or debt funds.

[bharanidharang]

Originally Posted by wocanak

But the advantage is Arbitrage funds are taxed as equity, if you are in the highest tax bracket the taxes on redemption will be lower than FD or debt funds.

Yes. Purely from a taxation perspective Arbitrage is better provided the gain is less than Rs. 1 lac. FD would be taxed at 10% for anything over 10K.

[wocanak]

Originally Posted by bharanidharang

Yes. Purely from a taxation perspective Arbitrage is better provided the gain is less than Rs. 1 lac. FD would be taxed at 10% for anything over 10K.

To be clear FD TDS is 10%, taxation is as per the slab rate applicable for your total income.
From https://cleartax.in/s/income-tax-on-...posit-interest

How is interest income taxed?

Interest income from Fixed Deposits is fully taxable. Add it to your total income and get taxed at slab rates applicable to your total income. It is to be reported under the head ‘Income from Other Sources’ in your Income Tax Return.

Arbitrage funds fall under Hybrid equity-oriented funds, and are taxed same as equity funds.
From https://cleartax.in/s/different-mutual-funds-taxed

Short-term capital gains: 15% + cess + surcharge
Long-term capital gains: Up to Rs 1 lakh a year is tax-exempt. Any gains above Rs 1 lakh are taxed at 10% + cess + surcharge

So if you are in the higher tax slabs, Arbitrage funds are more tax efficient.

[mayuresh]

Originally Posted by navtiwari

Question1. Is there a easier way to change bank account with all fund houses with one online submission? Even separate online submission with each fund house is ok with me but I don’t know how?

MFU provides a single request for all folios. But I am not sure whether it's online.

Originally Posted by navtiwari

Question 2. As suggested by Kuvera support team, I stopped all SIP’s till bank mandate change request is in progress. Once my bank account with Kuvera is changed can I continue my SIP with new bank account? I assume change of bank account is needed only for redemption, switch etc. I have asked this question to Kuvera also and awaiting their response.

I think there is something called source of funds validation (SOF). The funds must go from a registered bank account. I am not sure how well this is imposed.

Originally Posted by navtiwari

Question3: This is unrelated but I want to move away from FundsIndia. Should I redeem or switch? Can this be done through Kuvera as I imported all my fund information when I moved?

Folios are held with the AMC, not with the intermediary. Neither redemption nor switch is needed if you change the intermediary.

Also, I hope you are investing in Direct funds.

[Sri Vathsa]

Originally Posted by vinodh_eee

Hello All.
I have been using Zerodha for mutual funds SIP. I have been using mandates for automatic payment. However, since July 1, SEBI has disallowed the use of funds in trading account for investing in mutual funds. And we have to transfer funds for MF directly from our bank account to ICCL. For the past two months, I am paying the SIP amount manually. Is there any way to automate the payments?

Thanks in advance.

The only option as far as I know is to create a new Amc sip in coin(I don’t think it will allow your existing sip to be converted to amc sip). This also has frequency of monthly only.

[navtiwari]

Originally Posted by thirugata

I can answer your 3rd question.
Do consult your CA for the tax implications of this.
Only difference in procedure could be you being NRI.

Thanks for advice, I will check with my CA if I go for redemption.

Originally Posted by Comrade

Try MFCentral.com. Its directly owned by KFintech & CAMS; and can process a lot of "service requests" online. They will already have all of your existing investments (both from FundsIndia and Kuvera) associated with your PAN. You can register on mfcentral just by using your PAN and email tied with (needed for OTP).

Thanks Comrade, good suggestion. I registered with MFCentral.com and submitted my request for bank account change. It says my request can be completed in 6hrs depending on the quality of canceled cheque photo I uploaded for old and new account
However, two fund houses HDFC and Kotak are not available for bank account update service even though I can see my investment. I will reach out them separately over email.

Originally Posted by mayuresh

Folios are held with the AMC, not with the intermediary. Neither redemption nor switch is needed if you change the intermediary.

Also, I hope you are investing in Direct funds.

Ok, good to know. I want to switch existing investment at regular plan to Direct plan.
I moved from FundsIndia to Kuvera due to unavailability of direct funds. I have same funds at regular and direct plans though in same portfolio so should be easy to switch. Kuvera has a nice feature called TradeSmart that recommends actions for this scenario, this is next on my to-do list.

[JediKnight]

Originally Posted by wocanak

But the advantage is Arbitrage funds are taxed as equity, if you are in the highest tax bracket the taxes on redemption will be lower than FD or debt funds.

Not less than debt funds if the fund is held for three years or more. The reason is indexation. Since the inflation has been high recently and debt returns low, there is a high chance, that you may not have any or very nominal tax on a debt fund.

[Comrade]

Originally Posted by navtiwari

I have same funds at regular and direct plans though in same portfolio so should be easy to switch.

Careful, switch is a misleading term being used by the mutual fund industry. When you execute a switch transaction, you are performing two seperate transactions. Switch-out involves selling/redeeming the units in original fund and switch-in involves purchasing the units in new fund. And the first transaction (switch-out) is subject to our usual capital gain taxation. I personally think govt should allow switching without taxes but this is the rule for now!!

[shipnil]

Originally Posted by DigitalOne

These results again indicate the difficulty of actively managed funds beating a flagship index. We urge young earners to invest in index mutual funds and not repeat the mistakes of older investors like me.

While on the topic of index funds, wanted to check the thoughts of seasoned investors on this thread. Does fund house matter when it comes to index funds? I understand the returns vary very slightly due to tracking error among different schemes so we can ignore it but still I see the fund size vary hugely among index funds (not referring ETF here).