[rx100]

Originally Posted by ashvek3141

The PPFAS MF was converted to AMC SIP over a year ago and yet they haven't reverted since. Same is the case now with Nippon Small Cap Fund, which has been converted to AMC SIP in last few months.

Nippon Small cap showing as AMC SIP for me in Coin, but for PPFAS, it is allowing to create normal SIP. You can start a new SIP for PPFAS if that is the case.

[ashvek3141]

Originally Posted by rx100

Nippon Small cap showing as AMC SIP for me in Coin, but for PPFAS, it is allowing to create normal SIP. You can start a new SIP for PPFAS if that is the case.

In that case what about the existing PPFAS SIP? Will I have to stop it? Not sure if that'll be a good idea. It is giving me good returns till now, hence wanted to increase the SIP amount.

[rx100]

Originally Posted by ashvek3141

In that case what about the existing PPFAS SIP? Will I have to stop it? Not sure if that'll be a good idea. It is giving me good returns till now, hence wanted to increase the SIP amount.

You can continue with your existing SIP and create a new one with whatever amount you plan to increase. I have PPFAS two SIPs with 2 different dates on 15th and 25th. But both are mapped under a single folio number only.

[srsrini]

Originally Posted by ashvek3141

In that case what about the existing PPFAS SIP? Will I have to stop it? Not sure if that'll be a good idea. It is giving me good returns till now, hence wanted to increase the SIP amount.

Hmm... I think that this 'SIPs give returns' part has been taken a bit far. Let us say that you have a SIP running for 1,000 rupees on 5th of every month. Today is Oct 14. Suppose you manage the start the current SIP and create a new one staring from Nov 5, for 1000 rupees. If you see the entire portfolio in Nov 2024, would you notice any difference? Let us add another scenario where you did not create a new SIP, but with discipline bought units on 5th of every month till Oct 5 2024. How would it look different in Nov 2024? SIP is no magic. It is simply a regular scheme of buying mutual fund units, with a fixed total value. Your returns come from the appreciation that the units have, not from the fact that you invested in a particular way.

[ashvek3141]

Originally Posted by srsrini

Your returns come from the appreciation that the units have, not from the fact that you invested in a particular way.

Agreed, but I had started this SIP just post COVID when the markets were at low and hence the SIP has or is yielding good results as the markets today are at all time high! I also understand that 'whatever goes up, comes down' and tomorrow markets might fall for whatever reason. But I think the invested returns will still be in green against something that I may start today or tomorrow. Pardon my limited knowledge on this as I'm just learning and you'll can very well correct me.

[ghodlur]

Originally Posted by SmartCat

Anyway, for ratings, I trust valueresearchonline.com's ratings more. And this fund has a 4 star rating.

A query.

I waited for long for the SIP in Mirae Asset Emerging bluechip fund to be started for more than 5K, my last SIP ended in Dec 2021 and I wasn't allowed to renew the SIP for more than 5K hence had discontinued the SIP. Since the fund has allowed now, should I start the SIP considering that the NAV has seen an appreciation of 20% since my last SIP. Will this in any way affect the returns or the avg realised gains? We saw the value dip and rise again during the covid period. The intention of the fund is for the retirement goal.

[SmartCat]

Originally Posted by ghodlur

Since the fund has allowed now, should I start the SIP considering that the NAV has seen an appreciation of 20% since my last SIP. Will this in any way affect the returns or the avg realised gains?

It is very likely that the funds you intended into invest in Mirae Asset Emerging Fund was invested elsewhere, and that fund too would have offered good returns. So the higher 20% NAV does not matter.

The intention of the fund is for the retirement goal.

Do keep an eye on performance metrics (risk & reward). Some old funds do slack off over time.

[prabhu789]

Folks, finally decided to jump into SIP and shortlisted [read suggested by experts] the following two funds:

1] ICICI Prudential Commodities Fund Direct Growth
2] Quant Small Cap Fund Direct Plan Growth

I plan to park 40k every month and the idea is to continue for at least 10 years. I know both are equity funds and the risk associated with it.

It would be great if you can provide me your valuable inputs and also suggest me funds to consider. Thanks in advance.

Planned to use the Groww app but if there are better alternatives, please let me know. Thanks.

[DaptChatterjee]

Originally Posted by prabhu789

1] ICICI Prudential Commodities Fund Direct Growth
2] Quant Small Cap Fund Direct Plan Growth

Not an expert, still my two cents-
The first one is sectoral/thematic fund. Avoid all such funds. All sectoral/thematic funds are cyclical and not for long term investment. Commodities are perhaps the most cyclical sector. Limit yourself to diversified catagories like largecap, flexicap/multicap, midcap and smallcap funds and let the fund manager take a call on the choice of sectors.

Ideally a large cap index fund should have the largest allocation of your equity portfolio. Any Nifty 50 index fund from one of the large fund houses would do. Rest of the allocation could be in midcap and smallcap funds.

Check freefincal website for further understanding and unbiased information.

Grow or any other app offering direct funds are okay

[prabhu789]

Originally Posted by DaptChatterjee

Ideally a large cap index fund should have the largest allocation of your equity portfolio. Any Nifty 50 index fund from one of the large fund houses would do. Rest of the allocation could be in midcap and smallcap funds.

Check freefincal website for further understanding and unbiased information.

Thanks buddy for taking time to provide your inputs. I will definitely explore it and also the website.

Also what's your take on SIP vs Lumpsum investment? I went through a few youtube videos but not very sure about the same. I am not into salaried class as I do consulting and my income vary from month to month.

Though everyone suggests SIP, I am thinking of lumpsum [parking 1 or 2 lakhs every now and then whenever I have surplus funds] and forget about it for the next 10 years. I would be happy this way as I dont have monthly commitment.

Please share your thoughts.

[mayuresh]

Originally Posted by prabhu789

Also what's your take on SIP vs Lumpsum investment?

Though everyone suggests SIP, I am thinking of lumpsum [parking 1 or 2 lakhs every now and then whenever I have surplus funds]

If it is equity MF Lumpsum is not advisable.

If you have varying income, may be you can set aside one bank account that absorbs the variations and maintains a steady flow into equity MFs.

In case of the bank balance falling below a certain lower threshold you can set some end date for the active SIPs (or reduce the SIP amount). Alternatively if the bank balance is above an upper threshold you can consider increasing the SIP amount.

[Fx14]

Originally Posted by prabhu789

Also what's your take on SIP vs Lumpsum investment?

Though everyone suggests SIP, I am thinking of lumpsum [parking 1 or 2 lakhs every now and then whenever I have surplus funds] and forget about it for the next 10 years. I would be happy this way as I dont have monthly commitment.

Actually it cuts both ways.

Most SIP promotional material would highlight the benefit of cost averaging in a falling or oscillating market.

They conveniently ignore projecting a consistently rising market for obvious reasons because a lumpsum would fare better. For example, a lumpsum invested during the covid induced Market crash would fare much better than a staggered SIP in the constantly rising market thereafter.

If you can digest the fact that there could be a correction after you make a lumpsum investment, then you are good to go that way considering your 10+ year intended holding period. Just ensure to select an appropriate fund (s) to last that long.

[anandhsub]

Originally Posted by Fx14

They conveniently ignore projecting a consistently rising market for obvious reasons because a lumpsum would fare better. For example, a lumpsum invested during the covid induced Market crash would fare much better than a staggered SIP in the constantly rising market thereafter.

How would you know where a market correction ends? At 5% or 10% or 20% or 40%?

That's where an SIP helps as you take market timing completely out of the picture. You are still getting in investments around the low in any case.

It is even better in a rising market because lumpsum investors find it very hard to buy at the high even if it has been proven multiple times in the past that buying a new 52 week high is a much better investment than buying a new low.

Have seen so many cases where investors miss a 100% rally since they dont want to buy at highs and then pile in at the first signs of a correction. SIP helps because you are adding along the rally and the more on the correction and your average price is much better than a lumpsum.

[DigitalOne]

Recently, one of my SIPs lapsed. When I logged into the AMC site to renew it, they suggested to use an One Time Mandate (OTM) from the bank to execute the monthly debits. I didn't read through about OTM in much detail.

The question is whether the OTM amount is per transaction or per AMC? The OTM amount is higher than that particular SIP, but can I add another SIP (different fund, same AMC) with the same OTM as long as the new SIP amount is less than the OTM amount?

[saket77]

Originally Posted by DigitalOne

Recently, one of my SIPs lapsed. When I logged into the AMC site to renew it, they suggested to use an One Time Mandate (OTM) from the bank to execute the monthly debits. I didn't read through about OTM in much detail.

The question is whether the OTM amount is per transaction or per AMC? The OTM amount is higher than that particular SIP, but can I add another SIP (different fund, same AMC) with the same OTM as long as the new SIP amount is less than the OTM amount?

OTM done through AMC will be applicable to that AMC only. OTM amount is generally the limit for a day. For eg. a 5K OTM generally means auto debit limit of 5K per day.