Team-BHP - The Mutual Funds Thread

Quote:

Originally Posted by Pancham (Post 3797125)

Since I am new into SIPs can you guys suggest which ones to go for?

Sorry for all the questions. I am quite new in the equity investment front.

To start with go through this article.

http://www.moneycontrol.com/news/mf-...er_168248.html

The thumb rule is minus your age from 100% and that much % allocation should be for equity, rest of debt funds. Go for the direct mode of investment rather than through agents. There days you can register online on the MF house websites if your KYC is verified and create a folio online with SIP registration as well.

Check the website valuereasearchonline.com to find out the top performing MF's.

Quote:

Originally Posted by J.Ravi (Post 3797134)

Just a few minutes back, I invested in Franklin India Taxshield - Direct - Growth - for claiming fresh IT exemption u/s 80C for AY 2016-17. :)

You can consider to redeem and reinvest in the same fund or elsewhere under ELSS for claiming fresh IT exemption u/s 80C for AY 2016-17.

J. Ravi
Hi
Thanks a lot for your response.
I have already done that viz have exhausted the 80C limit.
My query is whether to encash the matured proceeds and reinvest in other equity mutual fund.
If I dont do that I sava a bit of money in swithching. Also one cant be sure if the fund that you switch to will do better.
Regards

My mother got some folios transmitted to her name after my father's demise. But at the time when it was transmitted, her name on the PAN card was misspelled. Now that I have corrected it in the PAN card, what is the procedure to update the same in KYC details so that any new funds come with the correct spelling?

Though a new PAN card with the corrected name has come, when I check KYC status online, I get the old name.

My bad... The link i sent is to change PAN details and not for changing KYC details.

Quote:

Originally Posted by thoma (Post 3818749)

How do I do it, from where? Do I have to contact each of the individual fund houses if I am dealing in direct funds? Or can I approach a CAMS/Karvy center?

You can do it online from here: https://tin.tin.nsdl.com/pan/correction.html

You have to fill up the form online, make the payment online and then take a print out of the acknowledgement, attach the documents and courier it to them. It takes a few weeks but the process is fairly seamless. I have done it a few times.

If there is any query (like document is not complete etc) they will email you and ask for more documents.

Hope this helps...

No. Just one place is good enough. The same KYC data is used by all fund houses.

Since KYC is a one-time exercise, the name correction should also work the same way.

Where and how does one get to be KYC Compliant? Does the investor have to repeat the KYC process with every Mutual Fund?

The Association of Mutual Funds of India (AMFI) has facilitated a centralized platform through CDSL Ventures Limited ("CDSL"), a wholly owned subsidiary of Central Depository Services (India) Limited, to carry out the KYC procedure on behalf of all Mutual Funds. CVL through its Points of Service (POS) will accept KYC Application Forms, verify documents and provide the KYC Acknowledgement (across the counter on a best effort basis). The list of PoS will be displayed on the websites of Mutual Funds, CDSL and AMFI. Once the KYC is duly completed in all regards, the investor needs to produce a copy of the acknowledgement when investing for the first time with a Mutual Fund. There is no need to repeat the KYC process individually for each mutual fund.

https://www.cvlindia.com/faqs01.html

Sadly, the FAQ doesn't talk about KYC changes.

After you submit the KYC change to a POS, check if the name change is correct:

https://www.cvlkra.com/kycpaninquiry.aspx

Quote:

Originally Posted by thoma (Post 3818749)

How do I do it, from where? Do I have to contact each of the individual fund houses if I am dealing in direct funds? Or can I approach a CAMS/Karvy center?

Quote:

Originally Posted by faustus77 (Post 3797725)

If you have exhausted your 80C limit (just like me), it does not matter which MF you go for - since you won't get any benefits on the principal.
Switching from one fund to another is the same as redeeming + investing as far as taxation is concerned.

Quote:

Originally Posted by S_U_N (Post 3819138)

SUN
Hi
Thanks for your response.
This what I have done.
I cannot be sure whether the fund that I switch to will perform any better so might as well continue.
Incidentally I have heard a few experts recommending switching but disregarding that
Regards

Good morning friends.

I am planning to invest a lump sum amount through scripbox.com, they have presented me with the following equity funds.

ICICI Prudential Focused Bluechip Equity Fund (G)
UTI Equity Fund (G)
ICICI Prudential Top 100 Fund (G)
Kotak Select Focus Fund (G)

(e.g.) If I plan to invest 100/- INR, they would split my amount equally among the above funds.

My questions:
1.) Should I take the same approach or go for variable split (e.g.) 40/- INR each for 2 funds and 10/- for the remaining funds. I also have an option to ignore few of the presented funds in the list, but cannot pick anything outside of it.

2.) Should I go for SIP or single payment.

Appreciate your response. Thanks in advance.

Quote:

Originally Posted by Mr_Bean (Post 3819543)

2.) Should I go for SIP or single payment.

Never invest lump sum, especially if it is your first time.

What you should do instead is invest in a liquid fund with the same AMC and then initiate an STP to buy in your equity fund, say once every month for 6 or 12 months.

Scripbox recommendations you mention are all Large cap funds and they overlap each other. Depending on your age you could take a slightly more aggressive position.

Finally, do explore the possibility of investing in direct plans.

Quote:

Originally Posted by nareshov (Post 3820831)

You could use scripbox for an initial opening in order to get a folio number with each AMC and then invest in them directly through their online interfaces.

+1 to this approach. A few of my office colleagues use fundsindia to create a folio in MF with one time small amount and then register online at the MF houses directly and start investing.

Quote:

Originally Posted by Mr_Bean (Post 3819543)

My questions:
1.) Should I take the same approach or go for variable split (e.g.) 40/- INR each for 2 funds and 10/- for the remaining funds. I also have an option to ignore few of the presented funds in the list, but cannot pick anything outside of it.

2.) Should I go for SIP or single payment.

As suggested, pls take the SIP route instead of lump sum investment. The approach should be target or goal based MF selection: Have one MF SIP for a particular goal for eg: Child's education, Child marriage, retirement etc. And then invest accordingly to achieve that goal. Your MF portfolio must be a mix of Equity - Large Cap, Equity - Midcap & Small Cap and Balanced funds. Check Value Research online to short list the top performing funds over 5 yrs range and then choose accordingly.

Friends, is there any kind of tax deducted at source when selling mutual fund units? If so, is there any way to prevent it? Do not get me wrong, I am not trying to evade tax. I do not have other taxable income in India, so would like to prevent TDS than claiming returns at the year end. In case TDS is unavoidable what kind of statement can I expect from the AMC which could be used for tax filing? Also, for mutual funds incurring wealth tax, is it anyway linked with taxable income?

Quote:

Originally Posted by georgesraju (Post 3822475)

Wealth tax has been abolished since March 2015.

No TDS is deducted on mutual funds as per my experience.

Depending on the AMC, they may have a facility to generate capital gains statement online.

PS: US persons (anyone who is paying taxes in the US) cannot hold MF units in India as per FATCA. The MF will automatically sell your units and pay you the money the moment they come to know.