Team-BHP - The Mutual Funds Thread

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Originally Posted by DigitalOne (Post 5906051)

Okay, but still didn't get why it should take 10 years to do the tax harvesting as you had mentioned in your original post. A new FY is less than 90 days away :).

Correct me if I am wrong.
With the current LTCG of 10.xxl, it would take minimum of 8 years (1.25l per year) to avoid tax. And the gain will also keep increasing every year. So, in reality, it would take many more years than 8, isn't it?

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Originally Posted by mrbaddy (Post 5906011)

Thank you for the reply. Roughly my long term gains are 10.xx lakh odd for which LTCG Tax liability is 1.30 lakhs if I sell everything this year. Please note that I have already sold and reinvested some units in this year and utilized the LTCG limit of 1.25 lakhs.

Having consulted a financial advisor and with recommendations to execute, personally I would not focus on the tax outgo and realign the investments to align with the go-forward plan.

The tax outgo is an impact, but as you also mentioned that the Franklin fund is not performing, I would opine that there is little point in continuing with it only for tax harvesting. And as you identified, the tax situation over time might change favorably or not for the investor.

Rather than focus on past/future returns, I would reinvestment the amounts keeping the goals in mind - when and how much amount will be needed.

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Originally Posted by neeravnaik (Post 5905458)

My personal opinion based on my years of experience with mutual funds.

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Originally Posted by FAIAAA (Post 5905460)

Congratulations on your Mother and your journey towards wealth creation and financial independence. Thanks for sharing your details.

Thank you both for the extremely detailed replies and helpful links. Both me and my Mom went over it in the weekend, and are deciding on our further course of action.

We may end up consulting a FOI financial advisor as well, let's see. Any which ways, the replies have been extremely helpful! Heartfelt gratitude!

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Originally Posted by mrbaddy (Post 5906011)

Hope you have considered the grandfathering clause for investments made before January 31, 2018, while arriving at the tax liability figure of ₹1.3 lakh.

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Originally Posted by 07CR (Post 5909254)

With market nearly 11.72% down from its all time high in Sep 2024, do the experts here believe it's right time to do a lump sump investment in Index fund? Or should we wait even more till it falls 15% or more?

In a very short journey of mine in stock market, all I can say, no one can predict the rise or fall. You might wait for 15% fall which may or may not come, but one thing is already there that it's already fallen 12%, which everyone knows as of today. Everyone becomes an "expert" after market rises/falls. It's a game of emotions.

So, If I would be you, I will put some percentage of money to work at this fall, rather than waiting till it falls more. That would be my strategy, may be I'm wrong.

Quote:

Originally Posted by mrbaddy (Post 5905433)

Need suggestion from members here. Sorry for the long post.

Check your funds TER for Regular and Direct.
The difference in % is the amount you will loose in an year for continuing your investment in the Regular fund. If this amount is greater than the tax you will end up in paying then you can think of doing it over 1 or 2 years to get tax harvesting benefit.

Otherwise you can consider sell and move to direct fund.

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Originally Posted by rohan_iitr (Post 5909504)

Is it a good idea to invest in Index funds for Midcap and Smallcap (as compared to actively managed Midcap and Smallcap funds) ?

Which are the NIFTY indices for Midcap and Smallcap ?

Yes, to active funds because good fund managers may be able to spot some multi-baggers in the midcap and small cap space which an index will not be cover. No, because it can also go the other way. Small cap stocks are risky bets and can cause significant negative impact on the fund, if the fund manager has taken a wrong bet.

I have both active (HDFC Midcap, Franklin Prima, DSP Midcap) and passive funds in the midcap space. No investments in any small cap funds.

Quant MF Sandeep Tandon worked out a settlement with SEBI.

https://www.businessworld.in/article...tlement-544442

Quote:

Quant Mutual Fund boss Sandeep Tandon and HNI investor Sumana Paruchuri have filed for settlement with market regulator Sebi in an alleged case of front-running, sources in the know told BW Businessworld. Sebi had conducted multiple raids on 20 June 2024 in Mumbai and Hyderabad with regard to the front-running, market abuse and insider trading, which allegedly involved Tandon and Paruchuri. But just as Sebi was concluding its investigations into the matter, both Tandon and Paruchuri filed for settlement under Sebi's consent terms, which allows the alleged wrongdoers to pay fine without admission or denial of guilt.

Reportedly, in June last year, armed with Mumbai's local court order, Sebi had raided Quant's Mumbai headquarters and Paruchiuri's premises in Hyderabad in connection with market abuse and front running. Sebi had written a letter to State Bank of India (SBI) seeking transaction details of Paruchuri. But when she was raided, to the surprise of Sebi officials, a copy of the Sebi's letter to SBI was found during raids on her, sources in Sebi said. Also, investigators noticed that the information of the raids were likely leaked to the parties involved, since just a day prior to the search and seizure by Sebi, a lot of digital data was deleted from devices of the parties involved and many documents seem to be missing, Sebi sources say.

But when it came to the Ketan Parekh case, Sebi passed an Ex-parte order nearly 18 months after the raids, defeating the whole purpose of the emergency measures. Similarly, it has been curious of Sebi to have failed to pass an Ex-parte order for more than 6 months after raiding Quant MF, Tandon and Paruchuri, who are highly influential both in the financial markets and power lobbies.

hardly any coverage on this news - couldnt find any other article on this update.

Its news like this that shows us insects our real place in this wide world.

Dear Bhpians

Need your view and help on a query. With Trump coming back in USA, I feel US Business and Stocks may have a good rebound this year, but I don’t have big funds to invest directly on different stocks. Hence wanted to choose a MF which invests in US stocks. Could you please suggest some?

Also your views on if it is even worth it? I make fairly decent money in Indian stocks at an average of 20% (not now though, but aggregating blue chips as when there is a drop).