Team-BHP - The Mutual Funds Thread

Quote:

Originally Posted by srsrini (Post 5518466)

One very key advantage is this: In a FD spanning financial years, the interest for each FY is taxed in that FY. While in a debt fund, it would be taxed only when you withdraw.

Depends how you look at it - a tax shock accumulated over years at once or small yearly tax! Also, counting income accumulated over years in one year can simply change the slab for some people.

Quote:

Originally Posted by mayuresh (Post 5518811)

Depends how you look at it - a tax shock accumulated over years at once or small yearly tax! Also, counting income accumulated over years in one year can simply change the slab for some people.

Or keep accumulating and then redeem when you retire. In such a way that your total taxable income is below the minimum level to be taxed and hence possibly pay zero tax.

Quote:

Originally Posted by JediKnight (Post 5519039)

Or keep accumulating and then redeem when you retire. In such a way that your total taxable income is below the minimum level to be taxed and hence possibly pay zero tax.

The wise way for retirement planning/investment would be to assume the worst, ie., 30-39% percent tax on every product, be it EPF, PPF, NPS, SGB, debt/hybrid/equity MF and direct equity. So we’ll need to target 1.4/1.6 times the corpus we planned for.

PS: Debt funds still have the STCG tag, so we can offset the gains against ST/LT losses.

PS-2: Real estate would probably remain as the only option with LTCG and indexation benefit since it’s the preferred avenue for lawmakers and bureaucrats.

Quote:

Originally Posted by JediKnight (Post 5519805)

Was wondering if the increase in STT will negatively impact returns of equity arbitrage funds?

Negative impact will NOT be noticeable. Equity arbitrage funds don't take frequent entry/exit trades in stock futures - it will be maximum of one trade per month per stock.

I have a SIP in Motilal Oswal Nasdaq 100 FoF from Jan 2022 . Wondering if I need to cancel the SIP now and move to some other equity fund.

Quote:

Originally Posted by SoumenD (Post 5518346)

Looks like International funds also come under same ambit now as debt funds. So for those as well you pay tax as per slab.

I was investing in international funds for diversification and $ cost advantage. But with indexation gone, wonder if it makes any more sense now to continue with this?

Having said that, now I wonder what stops the government from extending the same love to Equity MFs as well? Matter of time before they totally remove LTCG altogether. :disappointed

Quote:

Originally Posted by SoumenD (Post 5518346)

..
I was investing in international funds for diversification and $ cost advantage. But with indexation gone, wonder if it makes any more sense now to continue with this? ..

Quote:

Originally Posted by kap04 (Post 5520065)

I have a SIP in Motilal Oswal Nasdaq 100 FoF from Jan 2022 . Wondering if I need to cancel the SIP now and move to some other equity fund.

I started investment for long term via Navi FOF since its inception and started direct investment in US markets since end of last year.
Now with this year's budget, have been dealt with a double whammy - 20% TCS for the money being remitted abroad (for direct stock purchase) and taxation at slab rates in case of the international equity mutual funds.

Will be going slow now on any further investments.

If a person is holding mutual fund or Nifty etf where dividend is reinvested, how do we calculate total tax liability on the total dividend received. I know dividend is taxed as per individuals tax slab, but how much dividend one received from different mutual fund and etf for a financial year? Will it automatically given in ITR under "Other income" ? For dividend from stocks it will be automatically shown under "other income" i guess but what about ETF ?

Quote:

Originally Posted by skumare (Post 5525431)

My investments are spread acorss a few MFs, including a few which are not serviced by CAMS. Apart from the CAMS web form, is there any other way of getting an annual captial gains statement covering all MFs ?

Try Karvy. Many MFs not covered by CAMS are covered by Karvy.

Quote:

Originally Posted by skumare (Post 5525479)

Looks like CAMS+Kfintech covers most MFs.

CAMS & KFINTECH (previously Karvy) are the only 2 RTA/ registrars now. Combinedly, they cover all MFs in India currently. Earlier there were 3 more registrars- Franklin, Sundaram and Escorts, catering to their own AMCs- all of them went with CAMS or Karvy finally. Escorts was taken over by Quant MF.

Quote:

Originally Posted by mayuresh (Post 5461320)

There is a big change in their attitude compared to the early days. May be Ramesh's exit has left some undesirable impact on MFU.

From a "refreshing novel idea" at inception, through being investor-centric, adapative, innovating etc in the middle years MFU's credibility has started nosediving. They can best be described as "barely managing to run" due to past loyal customers.

I previously described how they messed up the implementation of new cut-off time mandate by SEBI. For shorts: If you do NEFT transfer before 7am your order gets rejected! So you cannot simply use scheduled NEFT. On a call MFU person "explained" to me why they do it - it's because people are not awake earlier than that, so they run some job called "approval" after 7. Ridiculous excuse.

Now it's the turn of 2FA authentication that came into force from 01 Apr. SEBI order has clearly exempted "SIPs and mandates" from having to take 2FA ON the day of execution. For these orders, 2FA can be taken on the day of placing an order. MFU has once again messed this up by mandating investor to go and approve every future dated order on the day of execution, totally defeating the purpose of scheduling the orders. They have completely disregarded the leeway SEBI order has given and done what their IT staff felt was easy to program. And on complaining the standard skin-saving defense they talk is "look SEBI order..."

Once a strong supporter and admirer of MFU, I am now totally fed up of them and will be moving elsewhere.