[Naetik30]

So, here is a list of mutual funds that have invested in the mamaearth IPO.



Given everything we have seen in the past 2 years - all MF investors are basically bailing out the venture capitalists and founders. This is just fraud in the name of mutual funds. And we keep harping on 'Mutual Funds Sahi Hai!!!'.

This just brings to the fore the fact that there is no way to question these MF fund managers on their decisions. They can always hide behind a simple answer of 'it is a small exposure'.

I would call for an investigation by SEBI and other regulators on all the fund managers and their relatives. Who bought a luxury car recently, who got a nice appartment in Dubai recently, who went on a world tour may be.

Just no stop to this nonsense. I am an honest tax payer (pay for every penny without fail) and just gets me mad that everyone in this god forsaken country can take advantage of us.

[DigitalOne]

Originally Posted by Naetik30

So, here is a list of mutual funds that have invested in the mamaearth IPO.

While I have highlighted such issues before (The Mutual Funds Thread) in this thread, the funds that have invested in the mamaearth IPO seem to be Thematic/Sectoral funds ("Consumption"," Gennext" etc). These are categorized as very high risk and novice investors should not invest in these. In this instance, I would give the benefit of doubt to the AMCs as long as they are sticking to their declared mandates.

[Fx14]

Originally Posted by Naetik30

So, here is a list of mutual funds that have invested in the mamaearth IPO.

Interesting to note that atleast 3 Life Insurance schemes also invested in it.

Probably a much easier way to get sizable funding by influencing a few fund managers.

[Naetik30]

Originally Posted by DigitalOne

While I have highlighted such issues before (The Mutual Funds Thread) in this thread, the funds that have invested in the mamaearth IPO seem to be Thematic/Sectoral funds ("Consumption"," Gennext" etc). These are categorized as very high risk and novice investors should not invest in these. In this instance, I would give the benefit of doubt to the AMCs as long as they are sticking to their declared mandates.

Hi @DigitalOne. Even 'good' funds like Nippon Small cap have invested. So has the Axis Retirement fund, not sure what will be left for retirement of the investor in this case. But hey, I guess it means - "Axis MF Fund Manager's Retirement Fund'. Who am I to complain.

[mayuresh]

Originally Posted by Naetik30

So, here is a list of mutual funds that have invested in the mamaearth IPO.

Sorry, a late tuner here. Can you give some pointers regarding why this has raised a concern?

EDIT: Now that you raised this I see some material through web searches. But wonder why this has not got enough attention so far.

[VWAllstar]

Need some advice on Mutual Funds which I have been investing since 5 years now. Below is the list of mutual funds. I know most financial advisors keep 8 (+/-2) as the most number of MFs one must have in portfolio. I have 11 MFs via SIP. The other 3 apart from the screenshot given are:
SBI Contra Fund
UTI Nifty 50 Index
HDFC Small Cap Fund

Most of the SIPs are of nearly similar amount with just HDFC Small Cap Fund being 17% of the total investment per month.

Questions:

1. I have stopped SIP in Aditya Birla Sunlife Equity as it was the least performing MF. However I have not withdrawn the amount. Does it make sense to keep it invested and treat it like a lumpsum or withdraw it and invest in other script or MF or other instruments.

2. Experts how do you asses & give feedback on the diversity of MFs in my portfolio?

3. I have never increased the SIP amount in any of the MFs over the last 5 years. Is there a possibility I can increase the amount in the same MF? Is there a thumb rule to increase the SIPs by a certain percentage every year?

[DetectiveMiles]

I got notification from Zerodha about NFO of their two new funds by newly launched in-house MF. Is it a good idea to do SIP in this?

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

Zerodha Nifty Large Midcap 250 Index Fund --> Looking to invest small amounts in this.

[wocanak]

Originally Posted by VWAllstar

Need some advice on Mutual Funds which I have been investing since 5 years now. Below is the list of mutual funds. I know most financial advisors keep 8 (+/-2) as the most number of MFs one must have in portfolio. I have 11 MFs via SIP.

Can only give a few general pointers:

• All mutual funds come in two flavours, regular and direct. Regular is where you go through an intermediary like bank or agent who will provide advice and gets commission directly from the fund house (reflects as higher expense ratio). I noticed the regular funds in your portfolio, hopefully you are getting good advice and its worth the commission. But if you are doing it one your own, you are better of investing in the direct version, where no commission will be paid out. Consequently the direct version of the fund will have lower expenses and will offer better returns, for equity funds its between 0.5% and 1% better. There are many ways to invest in direct funds, easy to search and figure it out.
• 11 SIP is definitely more, and you may have additional MFs without SIP. My suggestion would be to use something like Value Research Premium or other reputed portfolio planner/analyser and workout a plan to consolidate it over a period of time. If you decide to switch from regular to direct, you can work that also into the plan.

Originally Posted by VWAllstar

3. I have never increased the SIP amount in any of the MFs over the last 5 years. Is there a possibility I can increase the amount in the same MF? Is there a thumb rule to increase the SIPs by a certain percentage every year?

It is generally advised to increase SIP amounts by the average salary hike you get, or at least around ~10%, but really depends on your stage of life and financial situation.

The hardest part of investing is having the discipline and patience to do it consistently over long period, you have already mastered that by doing it for 5 years, congrats. You are also seeking ways to improve, that will be much easier to do. Good luck with your investments.

[SoumenD]

Originally Posted by VWAllstar

I have never increased the SIP amount in any of the MFs over the last 5 years. Is there a possibility I can increase the amount in the same MF? Is there a thumb rule to increase the SIPs by a certain percentage every year?

No thumbrule as such but it’s advisable to increase atleast ~10% each year, more the merrier.

About diversification, I personally have stopped bothering and invest only in Nifty 50 & Nifty Next 50 covering top 100 stocks. For foreign exposure I invest in company stocks(Fortune 500 profitable conglomerate doing well) which we get annually at 15% discount plus company adds equal amount capped at ~2-2.5L in total. Plain and simple.

Earlier had tried experimenting with bluechips, small caps, midcaps etc but found direct index funds more or less giving similar returns over the years.

I am relatively new investor(5 years only)

[VWAllstar]

Originally Posted by wocanak

Can only give a few general pointers:[list]
I noticed the regular funds in your portfolio, hopefully you are getting good advice and its worth the commission.

The commission will be the expense ratio right? Expense Ratio mentioned is 1.1% which I infer as some % goes to the Fund/AMC and some % to the Agent through which I have opted the MFs. Is this % of the invested amount or the current value (including the profits) and the frequency is every year? My agent does not give me any kind of value add on top of the already purchased MFs. However, considering he maintains the data and is readily available for any queries then 1% a year to him seems to be ok? Also, considering he is a standalone entity, is there a risk of losing the money in case if anything unfortunate happens to him or his company? (could be really a noob question) I understand he is only the middle man and the actual money is with the Fund House, then withdrawing the money would be a hassle?

Originally Posted by wocanak

It is generally advised to increase SIP amounts by the average salary hike you get, or at least around ~10%, but really depends on your stage of life and financial situation.

I have contacted my agent and have asked them to increase the amount of few MFs by 50% (considering there was no increase in the last 5 years) The worry is that I should be able to increase the SIP amount in the same Folio Number and not have an additional line item with the same MF.

Originally Posted by wocanak

The hardest part of investing is having the discipline and patience to do it consistently over long period, you have already mastered that by doing it for 5 years, congrats. You are also seeking ways to improve, that will be much easier to do. Good luck with your investments.

Thank you for the encouraging words and the feedback is really appreciated.

Originally Posted by SoumenD

No thumbrule as such but it’s advisable to increase atleast ~10% each year, more the merrier.

About diversification, I personally have stopped bothering and invest only in Nifty 50 & Nifty Next 50 covering top 100 stocks. For foreign exposure I invest in company stocks(Fortune 500 profitable conglomerate doing well) which we get annually at 15% discount plus company adds equal amount capped at ~2-2.5L in total. Plain and simple.

Earlier had tried experimenting with bluechips, small caps, midcaps etc but found direct index funds more or less giving similar returns over the years.

I am relatively new investor(5 years only)

I did not understand the second part pertaining to Foreign Stocks. I guess you meant you work in a company which is Global and purchases Fortune 500 stocks for you of the same value as you do with a capping.

Investing is Index funds is what everyone is suggesting. Especially the Nifty Next 50 which has great growth potential.

[SoumenD]

Originally Posted by VWAllstar

I did not understand the second part pertaining to Foreign Stocks. I guess you meant you work in a company which is Global and purchases Fortune 500 stocks for you of the same value as you do with a capping.

No they allocate their own stocks to employees as ESOPs. The value is around 1-1.2L and additionally we can purchase stocks worth same value at 15% discount on their market rate. Total being around 2.5L annually. My employer firm is a Fortune 500 Product based firm. That’s my only global equity exposure.

Originally Posted by VWAllstar

Investing is Index funds is what everyone is suggesting. Especially the Nifty Next 50 which has great growth potential.

Yup Nifty 50 & Nifty Next 50 covers top 100 firms at very nominal expense and usually returns are decent. So understandably everyone suggests them.

[mayuresh]

Originally Posted by VWAllstar

The commission will be the expense ratio right? Expense Ratio mentioned is 1.1% which I infer as some % goes to the Fund/AMC and some % to the Agent through which I have opted the MFs. Is this % of the invested amount or the current value (including the profits) and the frequency is every year?

Every fund has its own figure of expense ratio and it also varies over time. How are you able to tell a fixed figure of 1.1%? Is the agent charging you this? Then it is over and above what the AMCs deduct.

The trail commission is based on the current value of your investments. The frequency of payment is not publicized, but the expenses ratio is. That is why the difference between direct and regular returns becomes very significant on a compounding basis over time.

My agent does not give me any kind of value add on top of the already purchased MFs. However, considering he maintains the data and is readily available for any queries then 1% a year to him seems to be ok?

All MF investment data is maintained with the RTA (Registrars such as CAMS and others - whosoever the AMC has hired). Your entire transaction history of each folio is with them and any free or commercial tool can, in theory, produce whatever analysis you want. As such your agent is not "maintaining" the data - in the sense that he is not really the custodian of the data. If he goes out of the picture RTAs have all your data.

There are many platforms out there (many of which are free) which give you all the data you need. You have to assess whether regular funds are really adding value to you. You may like to shift newer investments to direct and over a period of time (considering tax implications) move regular to direct.

Otherwise, it's really up to you to judge whether the fees you are paying are worthwhile for you.

Also, considering he is a standalone entity, is there a risk of losing the money in case if anything unfortunate happens to him or his company? (could be really a noob question) I understand he is only the middle man and the actual money is with the Fund House, then withdrawing the money would be a hassle?

If the money goes directly from your account to AMC account there is less of a worry. Hope the money doesn't go to the agent's account.

I have contacted my agent and have asked them to increase the amount of few MFs by 50% (considering there was no increase in the last 5 years) The worry is that I should be able to increase the SIP amount in the same Folio Number and not have an additional line item with the same MF.

If you choose any DIY option (MFU, MFC, AMC portal or others) these things are much easier to do by yourself. And you can also invest in direct funds saving a good deal of money in the long run on a compounding basis. But of course the cost-value proposition of the service you get from an agent is your own call.

[Mr.Ogre]

Me and my wife started investing in SBI mutual funds from around 2015. We started small and till the time I left India we were investing almost 50k INR monthly in SIPs. And that was one of the best decisions I ever made.

I tried investing in shares before I got into Mutual Funds, however I could not find time to read and understand the market. SBI Mutual Fund was safe haven for us.

It paid for our foreign vacation, and our entire expense for getting a PR and then migrating to Australia. I had to close my SIP's as we are taking Australian citizenship, however if I get an opportunity again I would definitely invest into SBI MF.

The only 2 points I stuck to were:

1. Stay invested for longer
2. Always buy the dips - outside of my SIPs I always invested lumpsum amounts as and when I saw a dip in the market.

[saket77]

Originally Posted by mayuresh

If you choose any DIY option (MFU, MFC, AMC portal or others) these things are much easier to do by yourself. And you can also invest in direct funds saving a good deal of money in the long run on a compounding basis. But of course the cost-value proposition of the service you get from an agent is your own call.

Yes, one can save around 0.6% to 0.9% on annual basis on the average AuM of your investment when investing in direct funds over regular schemes. This part goes to the MF distributor. However, if your distributor is someone who gives you time, understands your requirement, and advises you better funds based on your needs, then you may be better staying with him. If the investor is smart enough, has good grasp over the MF products and understands the risks associated with various schemes and can select them according to their need, then an agent or distributor may not be necessary. But I will advise to use the services of a good distributor if you are not well versed with these products/ investments. A good distributor can provide you with better schemes in a category and generate much more return for you against the the 0.6%-0.9% commission (for equity schemes; debt schemes commissions are lower) that you lose. Compare this to a layman investor who chooses a bad scheme for himself, saves 0.9% of commission and loses much more had he invested in better performing funds by getting good advice from a distributor.

[mayuresh]

Originally Posted by saket77

Yes, one can save around 0.6% to 0.9% on annual basis on the average AuM of your investment when investing in direct funds over regular schemes. This part goes to the MF distributor. However, if your distributor is someone who gives you time, understands your requirement, and advises you better funds based on your needs, then you may be better staying with him.

Also, there is an option to seek advice from a certified financial advisor (CFA) who is not a distributor. You pay them for the advice and invest in direct funds yourself. In most cases the extra gain due to direct funds should be much more than the CFA fees. They don't get money from AMC. So they are unlikely to be biased towards selling you funds that earn them more commission. They are likely to be more loyal to you, since if you benefit from their advice you are likely to visit them again.

(For analogy, it's just like a medical physician who advises you medicines that you can buy from pharmacy and earns his fees from you; compared to old times' doctors who would sell you medicines themselves.)