[sgiitk]

I have all my MFs in Joint Holdings (E or S). In fact my new folios also include our son to minimise hassles when me and /or my wife are no more. I am slowly winding up my old (two name folios).

[subbarp]

Originally Posted by sgiitk

I have all my MFs in Joint Holdings (E or S). In fact my new folios also include our son to minimise hassles when me and /or my wife are no more. I am slowly winding up my old (two name folios).

great idea. Have you added your son as a 3rd holder or as a nominee? Is he a major, if the child is a minor, believe we have to have a guardian as well, so it complicates things a bit.

Also, can we add a 3rd holder to an account having 2 holders or does it need to be a fresh account ?

[faustus77]

J.Ravi
Hi.It is good of you to post your travails when dealing with different mutual fund houses.
Some have evolved and some still have the old bureautic mentality.And beacause of that you had to spend time and money to get your legitimate dues.
Hope you got a higher amount due to tardy settlement.
Regards

Originally Posted by faustus77

Hope you got a higher amount due to tardy settlement.

You said it! Thanks, Sir. Yes, I got some thousands of Rupees more in each account due to their delay, thanks to the Sensex going northwards!

[sgiitk]

Originally Posted by subbarp

great idea. Have you added your son as a 3rd holder or as a nominee? Is he a major, if the child is a minor, believe we have to have a guardian as well, so it complicates things a bit.

Also, can we add a 3rd holder to an account having 2 holders or does it need to be a fresh account ?

Only possible if he is a major. A name cannot be added so a fresh set of folios is necessary. Now I am slowly exiting the old folios. In many cases it is part of the 'churn'. Only in today's volatile times I make sure the redemption and contribution requests are put in on the same day, with my bank account buffering the thing.

[S_U_N]

I wish to invest Rs. 1 lac in mutual funds. I have the cash lying in my account. Question is whether to do a SIP or invest right away.
Should I wait for the index to come down and then put in the money?
Doing a SIP means keeping money at 4% interest for quite some time.
Or should I do some investment in liquid fund and do some SIP from that one over the next 12 months? Is it worth the extra hassle?
Note: I am using FundsIndia.

[ghodlur]

Originally Posted by S_U_N

I wish to invest Rs. 1 lac in mutual funds. I have the cash lying in my account. Question is whether to do a SIP or invest right away.
Should I wait for the index to come down and then put in the money?
Doing a SIP means keeping money at 4% interest for quite some time.
Or should I do some investment in liquid fund and do some SIP from that one over the next 12 months? Is it worth the extra hassle?
Note: I am using FundsIndia.

I would suggest invest the same in a Tax free Bond. IRFC has come out with an issue - only drawback is the money stays invested for 10 yrs. Since the market is heading northwards, investing in MF's would not give good returns. FD's are a good option but again the interest is taxable. My personal opinion

[JoshMachine]

Originally Posted by S_U_N

I wish to invest Rs. 1 lac in mutual funds. I have the cash lying in my account. Question is whether to do a SIP or invest right away.
Should I wait for the index to come down and then put in the money?
Doing a SIP means keeping money at 4% interest for quite some time.
Or should I do some investment in liquid fund and do some SIP from that one over the next 12 months? Is it worth the extra hassle?
Note: I am using FundsIndia.

Hi, just came across this piece...
My 2 cents on this - investing in mutual funds can be done via SIP or through lumpsum also however financial gurus dont recommend any lumpsum investing.
How you want to invest your Rs 1 lakh depends on what you want to achieve out of it and more importantly in what time frame?
MFs actually negate the impact of an index going up or down and help you via the concept of rupee-cost averaging....so you dont have to bother about timing the market...as they say its about how much time you remain invested rather than what time you enter.

Will be glad to share more offline or on this thread if the moderators are fine.

regards, JM

[sgiitk]

@S_U_N; At the moment all pundits are saying that the markets are headed to lump sum may not be so bad after all. SIP is spreading the risks, but also losing out on a windfall if there is one. However, I will wait another month and see what is PC up to!

[S_U_N]

Originally Posted by ghodlur

I would suggest invest the same in a Tax free Bond. IRFC has come out with an issue - only drawback is the money stays invested for 10 yrs. Since the market is heading northwards, investing in MF's would not give good returns. FD's are a good option but again the interest is taxable. My personal opinion

(For FD) Taxable interest and that too long term investment is of not a good choice according to me.

I am just thinking of putting in my money at something better than 4% interest that it is accumulating. Perhaps I should look at liquid funds. I know I have to pay tax, but perhaps I can gain 7-9% across 12 months?

Originally Posted by JoshMachine

Hi, just came across this piece...
My 2 cents on this - investing in mutual funds can be done via SIP or through lumpsum also however financial gurus dont recommend any lumpsum investing.
How you want to invest your Rs 1 lakh depends on what you want to achieve out of it and more importantly in what time frame?
MFs actually negate the impact of an index going up or down and help you via the concept of rupee-cost averaging....so you dont have to bother about timing the market...as they say its about how much time you remain invested rather than what time you enter.

Will be glad to share more offline or on this thread if the moderators are fine.

regards, JM

You can always share more on the thread - that is the purpose.
I already have a SIP in the name of my son - that is for long term and the returns are also pretty good at the moment.
I also have investment in debt funds which is also doing good (touch wood).
Now, I don't have any investment in equity based MF in my name and I thought I should put in some money there as well.
The other option is to buy gold.
Note: PPF and other safer investments are already done as per my targets, so I don't have those options for this Financial Year.

Originally Posted by sgiitk

@S_U_N; At the moment all pundits are saying that the markets are headed to lump sum may not be so bad after all. SIP is spreading the risks, but also losing out on a windfall if there is one. However, I will wait another month and see what is PC up to!

Your statement is missing some word? headed to ... what?
I also thought of waiting till the budget, but I don't know how much of money I will lose if the markets fall after the budget.
The money can be kept invested for 3 years or so (unless I have make a real estate investment when I have to put in all resources). It is better to use own money foregoing some interest rather than pay 11-14 % interest to the bank, right?

[sgiitk]

Originally Posted by S_U_N

Your statement is missing some word? headed to ... what?

Headed Northwards. also So in place of to.

[mithun]

Originally Posted by S_U_N

I wish to invest Rs. 1 lac in mutual funds. I have the cash lying in my account. Question is whether to do a SIP or invest right away.
Should I wait for the index to come down and then put in the money?
Doing a SIP means keeping money at 4% interest for quite some time.
Or should I do some investment in liquid fund and do some SIP from that one over the next 12 months? Is it worth the extra hassle?
Note: I am using FundsIndia.

Since the market is on a bull run, you can either go the SIP route with a monthly SIP of about Rs.8000 or invest in two equity mutual funds(lumpsum).

[JoshMachine]

@ SUN - Yes, equity based MF is a good option - it is divided further into large cap, mid & small cap and small cap funds. For really long term goals (like children's marriage, education etc.) it is recommended to invest in large cap funds since they have an ability to diversify and derisk to a large extent. For near to medium term goals, you can opt for mid & small cap funds since they help in boosting the returns but also have a higher risk.
Buying gold should be considered through a ETF manner or through recognised bank coins.

[faustus77]

Sun
Hi.
I personally prefer the lump sum investment route for my daughter's investment.I prefer it that way as it is easier for accounting purposes.Since money is lying with you hedge your bets and invest in hybrid schemes.
What I have done recently is that I split up in 3 parts.On 22nd invested 1/3 rd in SBI Dynamic bond (100% debt),1/3rd in HDFC Prudence(75% equity/25%debt) and the third part,for which the cheque will be given tomorrow,HDFC monthly income plan(70% debt and 30% equity)
Due indexation,debt funds are quite tax efficient if redeemed after a year.Gains from equity and equity oriented funds like HDFC Prudence are tax free if redeemed after a year.
In case if there is a need for money will start encashing the the equity and equity oriented funds.
If somebody can suggest a better way I too would appreciate reading about it.
Regards
PS:Totally reluctant to invest for 10 years.Personally wont think of it.

[S_U_N]

@faustus77:
For my 4 year old son, I am already doing an SIP of 10K per month spread across top performing equity funds (around 4-5 of them from various fund houses).


Also, all the SIP are going from my son's bank account. The money is going to be needed (hopefully) only after he becomes a major.
At that point in time, the money is entirely his money and I would have no tax liability on the same.

I will review the situation in September when I complete 1 year of investment. Then I can choose to stop the SIP or continue for the next year.

I have not invested in Fidelity so far, but I think they are still doing good after the take over by L&T. (Is it good to go ahead with Fidelity now?)

I don't see any need to invest in short term for a child if he/ she is below 10 in age.
That part has to be taken care of using other investments done in my name or my wife's name.

Please share your views.