[nowwhat?]

Originally Posted by AkMar

I am below 30 years of age & have ongoing SIPs in ICICI Value Discovery & Mirae Asset Emerging Equities funds (apart from some FMPs and lump sum investments). I wish to start another SIP, but not sure of which category of fund I should choose. Balanced Fund/Large cap/some other type? Some pointers will be useful.

30 years, you have a long way to go. So unless you have some short/mid term goals, best to go with equity.

I have mentioned earlier on this thread that ICICI Pru Value Discovery was earlier a mid-cap fund but is now re-categorized as a multi-cap with a change of name, as a result if one looks at its returns over the past 5/7 years or longer, it can be misleading.

Anyway ICICI Pru Value Discovery is 75% large cap (giant + large), Mirae Emerging Bluechip is 65% mid cap (mid + small), so you seem to have both bases covered. If you want to fine-tune some more, you can invest in a large cap fund (>85% large cap) or a small cap fund. If the latter, bear in mind that there are very few funds in this sector and the ride can be harrowing for most, but it shouldn't be a problem for someone investing via SIP.

Other option that you have is to add one or more SIPs to your existing funds especially if your current SIP amount is small.

[hserus]

A large cap fund will be a good idea. In fact with demonetisation there is going to be at least a two or three year cash crunch and dip in the economy that will make value buys of large caps a good idea - these will be cheaper for now and they are large enough to ride out the coming crunch, after which recovery is likely to be sharp and sustained, if only out of just how low a dip is coming

Keep buying during dips

[greenhorn]

Just getting started in investing. I understand that i need to look at 2 to 3 different types of funds - blue chip, midcap etc, but is it OK to get it all from the same firm? Say icici pru or Franklin Templeton?
Asking because it would make it easier to manage it, but at the same time not sure about the risk implications as i don't want to put all my eggs in one basket

[SmartCat]

Originally Posted by greenhorn

Just getting started in investing. I understand that i need to look at 2 to 3 different types of funds - blue chip, midcap etc, but is it OK to get it all from the same firm? Say icici pru or Franklin Templeton?
Asking because it would make it easier to manage it, but at the same time not sure about the risk implications as i don't want to put all my eggs in one basket

Best to pick funds from different companies. Each MF company has an "investment process" - so there is risk that your portfolio is skewed towards one particular sector or theme if you choose only one fund house.

[sgiitk]

Originally Posted by greenhorn

Just getting started in investing. I understand that i need to look at 2 to 3 different types of funds - blue chip, midcap etc, but is it OK to get it all from the same firm? Say icici pru or Franklin Templeton?

Originally Posted by smartcat

Best to pick funds from different companies.

I agree with smartcat. Each fund house has its own philosophy. If you want a single fuynd house, then at least look for different fund managers. Yes, at the moment both ICICI Pru & FT are doing well. The latter has a record of being a conservative and good fund house. ICICI Pru do not have that long a pedigree at or near the top. greenhorn, I would suggest some element of a equity oriented balanced fund as well. I will say start with a Diversified fund like ICICI Value Discovery, add a Large/ Giant cap, like FT Blue Chip, and maybe a Balanced one like HDFC or L&T Prudence (both use that name).

Remember these are volatile times, so the risks (and gains) are higher. At the moment with Interest rates on the decline, debt/money funds will give a good return, but in these the lock in for indexation benefits is three years. My own view is that Equity/Equity Oriented I prefer Dividend Payout, and with debt/money-market Growth.

[sgiitk]

Now with 100% incremental CRR (backdated to 26/11 or something) incremental liquidity will be zero (or negative). It will definitely have an effect on the interest rates, and availability of credit. As some bank chaps tell me, practically all honest money is in, and now it is almost all the money which is being laundered which is coming in.

[sharninder]

MFU (Mutual fund utility) has now made changes in their registration process to let existing KYC certified individuals to open new accounts completely online.

https://www.mfuindia.com/eCANFormFill

Those bothered with the offline process earlier, no reason to not start investing in direct funds.

[sgiitk]

@sharnindert; Thanks for the information. I had refrained from opening a folio for one of my accounts in FT since I did have any existing folio. Does this apply to HUF also?

[sharninder]

Originally Posted by sgiitk

@sharnindert; Thanks for the information. I had refrained from opening a folio for one of my accounts in FT since I did have any existing folio. Does this apply to HUF also?

No idea about HUFs. The form is pretty simple, maybe you could try filling it up and see if lets you.

[hserus]

Originally Posted by sgiitk

@sharnindert; Thanks for the information. I had refrained from opening a folio for one of my accounts in FT since I did have any existing folio. Does this apply to HUF also?

I have a HUF account in Franklin Templeton. I believe I had to submit the application in paper form, along with a copy of the HUF incorporation deed, HUF PAN, Karta ID proof and PAN.

Fully online application was not possible, but I did get a login to operate my folio, redeem / open new sips / whatever else once I registered.

[sgiitk]

Thanks @hserus; We have FT folios in all our individual accounts (mine, my wife, my son, my d-i-l, my grandson), so could do without one for the HUF. I invested in another fund. I had to fill in forms for the FATCA for the HUF, and got it done. FATCA was online for the personal folios.

[roadjourno]

Originally Posted by sharninder

MFU (Mutual fund utility) has now made changes in their registration process to let existing KYC certified individuals to open new accounts completely online.

https://www.mfuindia.com/eCANFormFill

Those bothered with the offline process earlier, no reason to not start investing in direct funds.

Thanks, quick question can we add additional bank account at a later stage after filling and submitting can form?

[hserus]

Originally Posted by roadjourno

Thanks, quick question can we add additional bank account at a later stage after filling and submitting can form?

When you open a SIP you can provide a different bank account - but you will have to submit kyc docs for your new account.

For example for Franklin Templeton MF -

http://www.franklintempletonindia.co...docid=h5tlreqy

[roadjourno]

Originally Posted by hserus

When you open a SIP you can provide a different bank account - but you will have to submit kyc docs for your new account.

For example for Franklin Templeton MF -

http://www.franklintempletonindia.co...docid=h5tlreqy

Ofcourse that is one of the options across MF's. My main point was about CAN (There are options to add multiple bank accounts and currently i gave 1 and uploaded necessary documents.)

[anku94]

I'm new to the debt fund market and I can't quite figure out how VRO ratings work with debt funds.

With equity funds, there is usually a strong correlation between consistent performance over the years and VRO rating.

With debt funds I see that is not the case.

HDFC Income Fund - 2 stars
ICICI Prudential Income Fund - 3 stars

While 5-star rated plans like Birla SL Treasury Optimizer have ranks between 25-50. Does it have to do with the credit quality of the funds' holdings?