Team-BHP > Shifting gears


Reply
  Search this Thread
1,370,094 views
Old 11th June 2019, 12:07   #2476
Team-BHP Support
 
SmartCat's Avatar
 
Join Date: Jun 2007
Location: Bangalore
Posts: 6,331
Thanked: 42,093 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by ghodlur View Post
With a returns of 3% over the past 2 yrs, this fund has indeed tested my patience. I was doing a SIP in this scheme and its time to renew the SIP, hence giving a second thought. I am thinking of shifting to a Hybrid aggressive equity fund. Any views on this and any suggestions if the move is right.
Stopping SIP because of recent under-performance is not an unreasonable move. But selling off units is not a good idea since fund manager has not made any serious goof-ups. This fund might start outperforming against its peers in the future.

Hybrid aggressive equity funds put 65% in stocks and 35% in bonds, and is treated as an equity fund for tax purposes. These funds will have significantly lower volatility than pure equity funds. However, expect a couple of percentage points lower returns than pure equity funds.
SmartCat is online now  
Old 11th June 2019, 12:15   #2477
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,997
Thanked: 4,174 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by SmartCat View Post
Stopping SIP because of recent under-performance is not an unreasonable move. But selling off units is not a good idea since fund manager has not made any serious goof-ups. This fund might start outperforming against its peers in the future.

Hybrid aggressive equity funds put 65% in stocks and 35% in bonds, and is treated as an equity fund for tax purposes. These funds will have significantly lower volatility than pure equity funds. However, expect a couple of percentage points lower returns than pure equity funds.
I intend to just stop the SIP not redeem. But considering the crisis the debt market is currently in, would it be prudent to stick to pure equity fund (say multicap) or try the Hybrid funds. I haven't invested in any Hybrid fund till date.

Another dud which I am facing in my portfolio is the Reliance Ultra Short term bond fund. This along with Franklin Ultra short Bond fund Super institutional and PPF complete my debt folio. Franklin has been giving some decent returns but Reliance has tanked. I have an SIP in these debt funds. Any advise on Reliance one.
ghodlur is offline  
Old 11th June 2019, 13:17   #2478
BHPian
 
SAHIR.KITTUR's Avatar
 
Join Date: Mar 2009
Location: Belgaum / Doha
Posts: 298
Thanked: 113 Times
Re: The Mutual Funds Thread

Kindly clear my query on the below,

HDFC Balanced Advantage Fund - Dividend

Is the Monthly dividend for this fund Tax Free

Thanks in advance.
SAHIR.KITTUR is offline  
Old 11th June 2019, 13:53   #2479
Senior - BHPian
 
bluevolt's Avatar
 
Join Date: Jan 2011
Location: New Delhi
Posts: 3,274
Thanked: 3,474 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by SAHIR.KITTUR View Post
Kindly clear my query on the below,

HDFC Balanced Advantage Fund - Dividend

Is the Monthly dividend for this fund Tax Free

Thanks in advance.
Yes, it is tax-free for the investor. Dividend received already has incurred Dividend Distribution Tax!

Last edited by bluevolt : 11th June 2019 at 14:23.
bluevolt is offline  
Old 11th June 2019, 14:04   #2480
BHPian
 
Join Date: Mar 2016
Location: Bengaluru
Posts: 818
Thanked: 3,035 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by SAHIR.KITTUR View Post
Kindly clear my query on the below,

HDFC Balanced Advantage Fund - Dividend

Is the Monthly dividend for this fund Tax Free

Thanks in advance.
I believe this fund is equity-oriented hybrid fund (equities allocation > 65%). Hence, dividend is tax-free. You can declare dividend as exempt incomes in your income tax returns (ITR-2).
srvm is offline  
Old 11th June 2019, 22:14   #2481
BHPian
 
Join Date: Dec 2009
Location: Bangalore
Posts: 582
Thanked: 281 Times

Quote:
Originally Posted by ghodlur View Post
I intend to just stop the SIP not redeem. But considering the crisis the debt market is currently in, would it be prudent to stick to pure equity fund (say multicap) or try the Hybrid funds. I haven't invested in any Hybrid fund till date.

Another dud which I am facing in my portfolio is the Reliance Ultra Short term bond fund. This along with Franklin Ultra short Bond fund Super institutional and PPF complete my debt folio. Franklin has been giving some decent returns but Reliance has tanked. I have an SIP in these debt funds. Any advise on Reliance one.
Coindence I guess, just stopped my 3 SIPs of ICICI pru Value yesterday. Shall continue to hold for sometime.
Seriously contemplating an Index fund.
sansvk is offline  
Old 12th June 2019, 08:53   #2482
Newbie
 
srsrini's Avatar
 
Join Date: Sep 2009
Location: Bangalore
Posts: 14
Thanked: 55 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by SAHIR.KITTUR View Post
Kindly clear my query on the below,

HDFC Balanced Advantage Fund - Dividend

Is the Monthly dividend for this fund Tax Free

Thanks in advance.

Ah, my favourite rant topic. Mutual fund dividends, particular from equity funds, are basically a sham. The dividends come from the fund's corpus; unlike stocks where the dividends come from profit. The government takes its cut by way of Dividend Distribution Tax of 10% plus surcharge. To give you a dividend of 31 paise, the fund value dips by 35 paise. Here is the info from the AMC itself: (this is from Oct 2018; they pay out dividend almost every month and the story is the same....)




Name of the Scheme/Plan/Option Amount of Dividend
( per unit)# Face value
( per unit) NAV as on October 17, 2018
( per unit) Record Date* Dividend Frequency Impact of Dividend Distribution on NAV
( per unit) HDFC Balanced Advantage Fund - Regular Plan - Dividend Option (Payout and Reinvestment) 0.310 10.00 28.528 Thursday, October 25, 2018 Monthly 0.350 HDFC Balanced Advantage Fund - Direct Plan - Dividend Option (Payout and Reinvestment) 29.887


Please. please stay away from MF dividend plans. You can instead opt for redemptions as needed. In all the cases, this would give you control over the amount. And in most cases it would be more tax efficient.

Last edited by benbsb29 : 12th June 2019 at 09:05. Reason: Removed redirection to external blog. Please provide the content on this thread, as appropriate. Thanks.
srsrini is offline  
Old 12th June 2019, 11:20   #2483
BANNED
 
Join Date: Dec 2007
Location: Gurugram
Posts: 7,969
Thanked: 4,786 Times
Re: The Mutual Funds Thread

I will advise all to be cautious. I for one am not investing till after the budget. Also, markets will continue to be choppy.
sgiitk is offline  
Old 12th June 2019, 12:32   #2484
BHPian
 
Engine_Roars's Avatar
 
Join Date: Feb 2015
Location: Pune
Posts: 415
Thanked: 2,536 Times
Re: The Mutual Funds Thread

I have a monthly SIP for L AND T EMERGING BUSINESSES FUND GROWTH plan & it is underperforming & is in loss of 6%. I am thinking of stopping the SIP, not redeeming it, any guidance would be much appreicated.
Engine_Roars is offline  
Old 12th June 2019, 16:00   #2485
BHPian
 
Join Date: Oct 2007
Location: Bangalore
Posts: 177
Thanked: 78 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by Engine_Roars View Post
I have a monthly SIP for L AND T EMERGING BUSINESSES FUND GROWTH plan & it is underperforming & is in loss of 6%. I am thinking of stopping the SIP, not redeeming it, any guidance would be much appreicated.
I had bought this in 2017 sold my units just before election results when I was still in the black, thinking I'll buy again after the drop. But then I changed my mind and re-started SIP in Mirae Asset Emerging Bluechip Fund.

I have seen it perform well in the past. I think it will recover, you may have to give it time.
prashkul is offline  
Old 13th June 2019, 05:23   #2486
BHPian
 
Engine_Roars's Avatar
 
Join Date: Feb 2015
Location: Pune
Posts: 415
Thanked: 2,536 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by prashkul View Post
I had bought this in 2017 sold my units just before election results when I was still in the black, thinking I'll buy again after the drop. But then I changed my mind and re-started SIP in Mirae Asset Emerging Bluechip Fund.

I have seen it perform well in the past. I think it will recover, you may have to give it time.

Yes, I had bought these looking at their past performance but for some reason they have never shown me a positivie growth, it has been an year that I have been investing in this fund. I am not sure if I should keep investing in this or should stop my SIP and the let the invested amount be.
Engine_Roars is offline  
Old 13th June 2019, 10:40   #2487
BHPian
 
Join Date: Oct 2007
Location: Bangalore
Posts: 177
Thanked: 78 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by Engine_Roars View Post
Yes, I had bought these looking at their past performance but for some reason they have never shown me a positivie growth, it has been an year that I have been investing in this fund. I am not sure if I should keep investing in this or should stop my SIP and the let the invested amount be.
Last year (& half) has not been very good for small and midcaps. The expected earnings recovery never came about, and all mid/small cap funds fell from their peaks of 2016/7. But - now the major domestic event is out of the way, there's turn-around expected over the next few quarters, analysts also sound positive about the mid/smallcap space, albeit with customary disclaimers regarding stock-specific growth etc. I have re-started my SIP based on all these factors. If you are not comfortable, you may stop the SIP in this fund and pick an alternate one.
prashkul is offline  
Old 13th June 2019, 23:22   #2488
Senior - BHPian
 
thoma's Avatar
 
Join Date: Oct 2011
Location: Kerala
Posts: 1,980
Thanked: 1,447 Times
Re: The Mutual Funds Thread

My wife had done e-KYC long back and recently she did 'in-person verification' for full KYC.

But the modification has been rejected citing the below reason. Can anybody help me decipher this?

Quote:
KRA Name : KARVYKRA
Entry Date : 22-12-2017
KYC Status : KYC REGISTERED AADHAAR eKYC - OTP (WITH IPV,WITHOUT SIGNATURE)
KYC Status Date : 02-02-2018
Remarks :
Modification Status : Modification Rejected
Modification Date : 10-06-2019
Modification Remarks : AADHAR NUMBER PRESENT IN KYC IMAGE / KYC DATA
Current Date : 13-Jun-2019
thoma is offline  
Old 14th June 2019, 05:40   #2489
BHPian
 
Engine_Roars's Avatar
 
Join Date: Feb 2015
Location: Pune
Posts: 415
Thanked: 2,536 Times
Re: The Mutual Funds Thread

Quote:
Originally Posted by prashkul View Post
Last year (& half) has not been very good for small and midcaps. The expected earnings recovery never came about, and all mid/small cap funds fell from their peaks of 2016/7. But - now the major domestic event is out of the way, there's turn-around expected over the next few quarters, analysts also sound positive about the mid/smallcap space, albeit with customary disclaimers regarding stock-specific growth etc. I have re-started my SIP based on all these factors. If you are not comfortable, you may stop the SIP in this fund and pick an alternate one.
It probably makes sense to keep investing in the fund since it is on a lower side & can give good returns in future. Thanks for your suggestions
Engine_Roars is offline  
Old 14th June 2019, 07:29   #2490
BHPian
 
Join Date: Aug 2011
Location: Chennai
Posts: 98
Thanked: 55 Times
Re: The Mutual Funds Thread

I was investing on an ad hoc basis in Mirae Assest Emerging Bluechip Fund. However, this fund is closed for fresh subscription for a long time now with no indication of when it will be opened up. Hence, I am unable to contribute further to this fund. I don't want to go the SIP way as my staggered investments cannot be timed.

Now, I want to start investing in another mutual fund of similar caliber to Emerging Bluechip Fund. I want to go with a fund that is purely a mid-cap fund, with at least 75-80% assets mandated to be invested into midcaps. I will be grateful if anyone can suggest a couple of funds of this type, caliber, reputation, and past performance.
murillo is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks