[Parth46]

Originally Posted by S_U_N

But it appears that if I put in money for a short term (1-2 years), I am probably not going to get the same result as I got for the last two years.

2013-15 has been pretty solid with approximately 35% annual returns.


So, then the only option is to find multi-baggers and invest directly in them (and not into MF's).

I believe the same thing as well, that last year's mega bull run is well & truly over, and it's mostly a sideways market now. With the market behaving like a yo-yo, I'm trying to put my money where my mouth is and dumping some small amounts for the long-term whenever there is a particularly steep drop, like the 400-odd points drop that happened a couple days back. If I see that the market is reasonably down since morning till around 2 PM-ish, and there are not too many chances of a last-minute revival I try to lock in some small amount in any one of my existing funds.

I think we'll not get blockbuster returns for around a year so now, and frankly am happy that there is a cool-down period after last year's run-up. This will help me average out all SIPs and lump-sums made this year and hopefully will set up comfortably for the next upswing down the line.

[sgiitk]

@Parth_46 and S_U_N; I agree the fat days are over at least for the time being.

[nowwhat?]

Originally Posted by Parth46

I believe the same thing as well, that last year's mega bull run is well & truly over, and it's mostly a sideways market now.
I think we'll not get blockbuster returns for around a year so now, and frankly am happy that there is a cool-down period after last year's run-up. This will help me average out all SIPs and lump-sums made this year and hopefully will set up comfortably for the next upswing down the line.

Exactly my thinking. However I made a killing last year and am sitting pretty. I am investing this year because I believe in the overall India story. When interest rates go down (feeding supply side economics end of 2016 after the RBI Guv'nor's term), I expect a double whammy raise. In any case, China may not raise its head for 5 years at least due to structural problems. They have spent too much in controlling their errant stock markets and building phantom infrastructure. EU will be down, but US & India should rule.

[swiftnfurious]

All, I am back to seek advice on a good ELSS fund. I am inclined to do an SIP of 15,000/- for the next 6 months to meet the tax exemption limit for the year. The SIP should start from October.

1. Which MF do you suggest? From my own experience in HDFC fund, the dividend growth option seemed to be better comparative to payout. Is it so, or was my perception?

2. Or, is there a better investment to get tax benefits than MF in the current scenario?

3. If MF is the way to go, do I change the fund after 6 months / 1 year or stay put? Is the lock in period still 3 years?

4. In case of MF, is it better to invest online? If so, which site? How about KYC formalities?

[shankar.balan]

There is a service called ScripBox which may be worth trying out.
They use intelligent algorithms to predict high growth stocks and MF's.
So far so good, for me anyway!

[aanandb]

Property vs. Equity MF vs. Gold
Read this:
http://www.brainpointinv.com/outlook_money/property.htm
On the same page, make sure you [COLOR=#D24726]'click here'[/COLOR] and study the transcript of the entire presentation on Property Invt vs Equity MFs Invt vs Gold Invt.
That transcript is the main point of this.

Who is the person who made this presentation?
The one holding the trophy in the pictures at:
http://www.brainpointinv.com/index.htm
Disclaimer: I have no connection (financial/personal/of any other kind) with either Brain Point, or with Mr. Jaideep Kashikar.

Additionally, you may be interested in reading:
Direct Investment In Stocks v/s Mutual Funds
http://www.brainpointinv.com/archive...tual_funds.htm

Equity Markets And Investor Psychology
http://www.brainpointinv.com/archive...psychology.htm

Best Equity Path: Save Time & Earn More
http://www.brainpointinv.com/archive..._earn_more.htm

[Parth46]

Originally Posted by swiftnfurious

1. Which MF do you suggest? From my own experience in HDFC fund, the dividend growth option seemed to be better comparative to payout. Is it so, or was my perception? - Franklin India Tax Shield or Axis Long Term Equity.

2. Or, is there a better investment to get tax benefits than MF in the current scenario? -I trust MFs are the best for maximising ELSS under 80C

3. If MF is the way to go, do I change the fund after 6 months / 1 year or stay put? Is the lock in period still 3 years? - Yes it's still 3 years. You can continue with the same fund, no need to change. Not sure you can initiate an SIP for less than a year, might need to check. If not, you can manually make the purchases every month just like any other online transaction

4. In case of MF, is it better to invest online? If so, which site? How about KYC formalities?

Yes, both Franklin Templeton and Axis MF have very user friendly sites. If you're KYC compliant, you can do everything online even if you're a new investor. You can make a one-time purchase to go from "new investor" to "existing investor" and subsequently setup an SIP online by adding the AMC as a biller to your net banking account

All the best!

[ghodlur]

Wanted wifey to start investing in mutual funds, hence zeroed in on Franklin Templeton mutual fund for the first investment. Unfortunately she was not KYC compliant. CAMS required the investment proof for KYC compliance processing whereas Franklin did not offer zero investment folio creation. With both parties at loggers, Franklin suggested to send the KYC compliance form and documentary proofs to their service centre and they would get the KYC done. Surprised a little bit as how would they do it without originals for verification?

Isnt there a simpler process where the KYC form could be submitted online along with other documents?

[sgiitk]

@ghodlur; They can cross verify from the PAN etc. so there is really no need for the documents. Most of the data is available to cross verify. In my view KYC in an MFF is silly, since all transactions are only through bank accounts, which have to be KYC compliant.

[aanandb]

How Mutual Fund SIPs have created wealth over the last 15 years
https://www.advisorkhoj.com/articles...rsified-Equity
The author is:
Dwaipayan Bose
An alumnus of IIM Ahmedabad, Dwaipayan is a Finance and Consulting professional, with 13 years of management experience, mostly in MNCs like American Express and Ameriprise Financial, both in India and the US.
In his last role, he was the Chief Financial Officer of American Express Global Business Services in India.
His key interests are building best in class organizations, corporate governance and talent development

[S_U_N]

Originally Posted by aanandb

How Mutual Fund SIPs have created wealth over the last 15 years
https://www.advisorkhoj.com/articles...rsified-Equity
The author is:
Dwaipayan Bose
An alumnus of IIM Ahmedabad, Dwaipayan is a Finance and Consulting professional, with 13 years of management experience, mostly in MNCs like American Express and Ameriprise Financial, both in India and the US.
In his last role, he was the Chief Financial Officer of American Express Global Business Services in India.
His key interests are building best in class organizations, corporate governance and talent development

Thanks. One way to look at this article is that if you are invested for a long time, then the average returns from MF cannot go above 20%.

I know it is not feasible for commoners (like me) to invest at the lowest point and redeem everything just before a fall, but the recent bull run has given solid returns (30% or even more) across the portfolio.

The article suggests that some of those profits will eventually get washed out and the law of averages will drag the profit back to sub-20 figures.

[aanandb]

"...Warren Buffett’s CAGR at Berkshire Hathaway has been about 19.4% for the period 1965 to 2014..."
Read more at: http://www.moneycontrol.com/news/investing/5-investment-secretswarrent-buffett-you-can%60t-miss_1403462.html?utm_source=ref_article
So, if our own mutual funds give me about 20% CAGR, I am happy.

[tiger_stripes]

Originally Posted by aanandb

So, if our own mutual funds give me about 20% CAGR, I am happy.

Experts can comment better, but the key is consistently beating the benchmark. If the benchmark index is giving, say 25% CAGR, it only makes sense to stay invested if your fund beats the benchmark. Another factor to consider is the high inflation in India, which silently eats into your returns. 15% CAGR with 2% inflation is always better than 20% CAGR with 10% inflation.

[aanandb]

1. @tiger stripes I agree entirely with what you have expressed so well.
2. In a different context, it's worth listening to this presentation by Mr. Prashant Jain, a fund manager

https://www.youtube.com/watch?v=Wm0iT5am0yk

[S_U_N]

How are members dealing with profit bookings and re-investments?
My investments from 2013 have given good notional profits. Some of them are in the name of my child - where I planned to stay invested for 15 years - really long term.
Now, I am tempted to book profit (either redeem partially OR completely) and reinvest the money again (maybe in another set of funds).

At the same time, I am wondering how I will be able to track the gain/ loss right from 2013 if I keep messing around like this.

Any good way to track such things?