[yosbert]

Originally Posted by warrioraks

Yes I read this somewhere in the news. The very fact that it was reported in media means it's not normal. In a market with ~40 mutual fund players, we need to look beyond a couple of examples to form a solid opinion.

10%+ cash holding is quite common in overheated market. Axis, DSP, PPFAS and lot of other AMCs do it.

[warrioraks]

Originally Posted by yosbert

10%+ cash holding is quite common in overheated market. Axis, DSP, PPFAS and lot of other AMCs do it.

The average cash position in MF industry was 5% in September 2024 (the most overheated market in recent times).
Only 3 AMCs (out of 40) had 10% + cash holding.



https://economictimes.indiatimes.com...4.cms?from=mdr

[yosbert]

Originally Posted by warrioraks

The average cash position in MF industry was 5% in September 2024 (the most overheated market in recent times).
Only 3 AMCs (out of 40) had 10% + cash holding.

https://economictimes.indiatimes.com...4.cms?from=mdr

You do realize that the data you have quoted gives the top 10 by amount and not percentage?
Also the data is AMC wise and not fund wise. For many of the large AMCs, higher equity allocation in one fund might be masking the cash allocation percentage of other funds.

[warrioraks]

Originally Posted by yosbert

10%+ cash holding is quite common in overheated market. Axis, DSP, PPFAS and lot of other AMCs do it.

Originally Posted by yosbert

You do realize that the data you have quoted gives the top 10 by amount and not percentage?
Also the data is AMC wise and not fund wise. For many of the large AMCs, higher equity allocation in one fund might be masking the cash allocation percentage of other funds.

I was responding to your initial post that mentioned it is quiet common for AMCs to have 10%+ cash allocation. At an aggregate AMC level, this doesn't hold true. At a fund-level, I can change my opinion if you or someone is able to share the appropriate data.

[yosbert]

Originally Posted by warrioraks

I was responding to your initial post that mentioned it is quiet common for AMCs to have 10%+ cash allocation.

AMC wide cash allocation is not an useful metric for someone trying to evaluate a mutual fund. The reason I mentioned AMC names in my original post was because cash holding in portfolio is an AMC trait, while some AMCs use it as a tool, others are 100% invested in market all the time. Sorry if that created the confusion originally.

Originally Posted by warrioraks

At an aggregate AMC level, this doesn't hold true.

Even though this metric is not relevant, but how did you conclude that? Based on a single month cash holding for 10 AMCs?

[volkman10]

Bandhan MF temporarily suspends new investments in US Equity Fund of Fund.

The decision likely reflects regulatory constraints on overseas investments, as mutual funds face a cap on foreign assets.
This suspension applies across all types of contributions, including lump-sum investments, switch-ins, and new as well as existing Systematic Investment Plans (SIPs) and Systematic Transfer Plans (STPs).

Link:

[Naetik30]

Originally Posted by DigitalOne

You can do that. The advantage of the "Tier-2 to Tier-1 move just before you attain 60" strategy is that you have the flexibility of no lock in in case you need the funds before 60.

As a friend pointed out to me, if you have 50% more funds in Tier-2 than Tier-1, and move it entirely to Tier-1 just before age 60, your entire Tier-2 becomes tax free.

Illustration:
Funds in Tier-1: 1,00,000
Funds in Tier-2: 1,50,000

Total in Tier-1 just before age 60 after moving from Tier-2 to Tier-1: 2,50,000
Lumpsum Tax-free withdrawal at age 60 (60% of Total): 1,50,000

Remaining 1,00,000 to be used for purchasing mandatory annuity.



As illustrated, if you need a lumpsum at age 57/58/59, you would have invested in some other instrument (MFs or so) and then withdraw it. This would be taxable. Investing in Tier-2 as a substitute to MFs makes it entirely tax-free as I illustrated above.

Got it. This is useful, only for folks who are turning 60 in the next couple of weeks I guess.

This week, just noticed my Form26AS shows TDS deduction from my EPF. With the trend of everything and anything is taxed, I expect the current Exempt-Exempt-Exempt or Exempt-Exempt-Tax to move to Tax-Tax-Tax by the time I retire.

[warrioraks]

Originally Posted by yosbert

Even though this metric is not relevant, but how did you conclude that? Based on a single month cash holding for 10 AMCs?

Just to gracefully end this discussion, I am not saying that we should base our opinion only on this data or what I quoted is perfect. If there is data on the contrary, let's look at that. I belong to Bayesian school of thought - Have my priors based on the information available. But once there is new information, I will change my beliefs aligned to new evidence.

Last public post on this topic from my side. But DM is always an option if you want to discuss more.

[DigitalOne]

Originally Posted by volkman10

Bandhan MF temporarily suspends new investments in US Equity Fund of Fund.

The decision likely reflects regulatory constraints on overseas investments, as mutual funds face a cap on foreign assets.

Today I dipped my toes into international funds by switching a moderate amount from Franklin Templeton's liquid fund to "Franklin India Feeder - Franklin U S Opportunities Fund". This is a bet that the US market and the dollar will do well under the new administration. Let us see how it goes .

It didn't show any threshold errors, so I am assuming that it will go through.

[yosbert]

Originally Posted by warrioraks

Just to gracefully end this discussion, I am not saying that we should base our opinion only on this data or what I quoted is perfect. If there is data on the contrary, let's look at that. I belong to Bayesian school of thought - Have my priors based on the information available. But once there is new information, I will change my beliefs aligned to new evidence.

Fair enough. I will end the discussion by just pointing out that the article you had quoted itself has data that at least one more fund has 10%+ cash allocation (Old Bridge) with the possibility of more (Samco). So your statement that only 3 out of 40 AMCs have more than 10% cash allocation is factually incorrect.

[samsag12]

Am looking for advice on suitable funds in the IDCW category. Plan to invest as a Lumpsum for 3-5 years but confused at the payout structure of most Fund houses.
Already have investments in HDFC Balanced Advantage IDCW with MIP structure.

[warrioraks]

Originally Posted by warrioraks

The book 'Chip War' highlights how Trump's maverick attitude led to few unconventional decisions which were a big negative for China in the semi-conductor space. Was surprised to read it but a continuation of the stance is net negative for Beijing. Would be interesting to see whether this can result in some of the FII flows coming back to India.

Originally Posted by volkman10

Likely not to change and outflows to continue as China stimulus package is one of the main reasons for the exit and the potential for higher returns from the Chinese market.

Seems it is happening.

Trump 2.0 Impact: CLSA Reverses On China To Go Overweight On India

Read more at: https://www.ndtvprofit.com/markets/t...eight-on-india

[vaibhav_a_a]

Initially i thought this was a joke (not your post, this news of a U turn and said 'paper' has been doing the rounds on X via Sameer arora (Helios capital)) since today afternoon.
Then I saw the actual papers screenshot. Guess rally from Monday (source : X)

[warrioraks]

Originally Posted by vaibhav_a_a

Initially i thought this was a joke (not your post, this news of a U turn and said 'paper' has been doing the rounds on X via Sameer arora (Helios capital)) since today afternoon.
Then I saw the actual papers screenshot. Guess rally from Monday (source : X)

The timing of this surprised me as well. I was expecting it to happen post the new president of USA takes over in January. But if you believe in the narrative that US and China are moving towards a cold war, the actual exodus of capital from China is expected. Whether that money comes back to India is a question mark.

I saw Samir's tweet where he said that people are selling China to move back to US. On that specifically, my belief is that Trump's economic agenda is overhyped and there is significant pain for USA ahead before it can start firing on all engines. So dollar strengthening will fizzle out over next few months once the reality settles in and US capital will again move out to other countries, hopefully benefiting India.

[Selective]

Is anyone using or has tried Dezerv wealth management for your investments in mutual funds? I am looking for help in actively managing my investment and Dezerv seems to be a good option. If there is someone already working with them, it would be great to get some feedback.

Thanks in advance!

Selective