[Maibaa]

Originally Posted by SoumenD

Any suggestions on L&T emerging business fund? I am invested in it since 2017(stopped SIP 1 year ago). Have always been in red. Finally thanks to the current rally it’s showing green for first time (barely 3% returns) . Is it a good time to exit this fund and invest the amount somewhere else?

Its a substantial amount (around 20% of my portfolio).

I am in the same situation and my investment started in this fund since 2017. Was in red all these years and now the value is a little over my investment total. I am wondering if it's a good time to exit and reinvest in another fund or in direct equity, or to leave it as it is for some more years since I don't plan to use this capital for a good number of years in future.

[SilentEngine]

Is it an issue if we make back to back redemptions on same fund with just one day gap (Nov 23 and Nov 25)? I am facing an issue with SBI MF where i received amount only for second transaction. In account statement, it shows that units have been deducted for both transactions.

[Fx14]

Originally Posted by SilentEngine

Is it an issue if we make back to back redemptions on same fund with just one day gap (Nov 23 and Nov 25)? I am facing an issue with SBI MF where i received amount only for second transaction. In account statement, it shows that units have been deducted for both transactions.

If units have been deducted, then you should receive the amount corresponding to the applicable NAV.

Sometimes if the electronic credit fails for whatever reason, they tend to send a physical cheque for the redemption amount, which takes a longer time.

Follow - up with them for reconciliation.

[Rachit.K.Dogra]

Originally Posted by Maibaa

I am in the same situation and my investment started in this fund since 2017. Was in red all these years and now the value is a little over my investment total. I am wondering if it's a good time to exit and reinvest in another fund or in direct equity, or to leave it as it is for some more years since I don't plan to use this capital for a good number of years in future.

I have a very similar situation with a couple of SBI mutual funds of mine. They were good 4-5 years back, but for the last 2 years or their performance have dipped. They have mostly been in Red since the last 2-3 years, but because of the recent rally have come in positive. I was thinking of cashing in and investing this money elsewhere.

Will it be a good move.
The SBI funds are:
Magnum Blue Chip
Long Term Equity saving or something. The ELSS one.

Rachit

[ghodlur]

Anybody recd a call from Franklin India MF regarding the voting for the winding up of the 6 debt schemes? I was being continuously being reminded by the lady on the call to vote for Yes if I wanted to redeem my investment in the Ultra short term bond fund. She also kept reminding me that a No vote will result in the crash of the NAV of the debt funds. Also a Yes vote will need an authorization to either Franklin trustees or Deloitte or somebody appointed by SEBI to minor the redemption process.

[DigitalOne]

Originally Posted by ghodlur

Anybody recd a call from Franklin India MF regarding the voting for the winding up of the 6 debt schemes? I was being continuously being reminded by the lady on the call to vote for Yes if I wanted to redeem my investment in the Ultra short term bond fund.

No call yet. The voting process is from 26-Dec, so there is still time.

I am planning to vote "Yes". I feel a controlled winding in FT USB fund up serves me better. I have no immediate need of the funds and I see no reason to bear losses.

Originally Posted by DigitalOne

If SC cancels the winding up process (in effect, making the funds again as open ended), it would lead to huge redemptions on day 1. This will consequently crash the underlying bonds, and investors will have to bear a huge loss, ..... Definitely not in any investors benefit.

SC needs to come up with some compromise formula on these lines:

- allow continuation of the 'controlled' winding up
- Put a fine on FT, for example 5% of AUM , to be added to the funds
- Make these as 0 expense funds; which will directly affect the FT brass.

This in my opinion will be a good punishment for FT, and investors will also suitably compensated for the trouble.

As I had written earlier, SC should punish FT and make good for investor agony.

[basuk]

Originally Posted by Maibaa

I am in the same situation and my investment started in this fund since 2017. Was in red all these years and now the value is a little over my investment total. I am wondering if it's a good time to exit and reinvest in another fund or in direct equity, or to leave it as it is for some more years since I don't plan to use this capital for a good number of years in future.

The situation is the same here! Every time I check, it is always red or just giving a 3-5% ROI..

Slowly I tend to believe that SIP is just a scam - a way of investment that traps you deep enough before you really start understanding the nuances of it.

It is always better to invest in stocks directly (NIFY100 shares) and get 10-15% yield very safely and easily..!

[neelkumar]

Originally Posted by basuk

Slowly I tend to believe that SIP is just a scam - a way of investment that traps you deep enough before you really start understanding the nuances of it.

Whoa.. whoa.. whoa.. You got to be kidding us!

Even with SIP you are eventually investing in stocks, so the performance of a SIP (actually the mutual fund) is directly dependent on the stocks itself. In any case, research of funds is required before investing.

If the mutual fund is properly diversified, then even when there's a loss in one of the stocks, some other stock's value might be increased. This balances the overall P&L of the fund.

You are expecting good returns in the NIFTY 100? Then you can invest in that particular index fund (performance of index funds)

[basuk]

Originally Posted by neelkumar

Even with SIP you are eventually investing in stocks, so the performance of a SIP (actually the mutual fund) is directly dependent on the stocks itself. In any case, research of funds is required before investing.

SIP is always a safe-man's bet - someone else is managing the fund, and it is diversified.. that's all ok as long as you see decent ROI.

But, many a cases, it did not yield the output that is expected - be it SBI MF, ICICI PRU or KOTAK M etc..

On the other hand, if I invest the same amount of money into stocks of my choice (yes, with a little bit of theoretical studies), my yield is always much higher.

But this is subjective... as I said, you are hands-off with SIP.. and pray that your fund well managed and will give you a good result, when you redeem.

my two cents only..!

[SilentEngine]

Originally Posted by Fx14

If units have been deducted, then you should receive the amount corresponding to the applicable NAV.



Sometimes if the electronic credit fails for whatever reason, they tend to send a physical cheque for the redemption amount, which takes a longer time.



Follow - up with them for reconciliation.

Yes, I am following by up with distributor as well as the fund house. They kept pointing me to one of the two transactions which was successful while ignoring the other one.
In hindsight, I think I made a mistake in not waiting for redemption of first transaction to hit my bank before initiating second redemption.

[fhdowntheline]

This year onwards I am opting for "quasi" SIPs, i.e, smaller chunks of typical lump sum money at periodic intervals, say once in 2-3 months in select good quality equity funds. That way you can monitor your fund value and defer investment when you don't feel like it, and vary the amount as well.

[carlosTHEjackal]

Originally Posted by Maibaa

I am in the same situation and my investment started in this fund since 2017. Was in red all these years and now the value is a little over my investment total. I am wondering if it's a good time to exit and reinvest in another fund or in direct equity, or to leave it as it is for some more years since I don't plan to use this capital for a good number of years in future.

L&T Emerging Business fund has been underperforming its benchmark for a good 12 Months.
It is also underperforming its peer group consistently from past 3 Years.

Any fund which underperforms its benchmark need to be avoided at all cost.
My advise / suggestion is to redeem all investments from this fund as early as possible before it goes back to loss.

[kushagra452]

I have been a regular SIP investor in various MFs since 2016. I redeemed all my MF units (expect those locked in ELSS funds) last week. The overall XIRR worked out to 11% post fees and other charges.

For me the two best performing funds have been Canara Robeco Emerging Equities and Mirae Asset Emerging Bluechip. Rest of the funds have been disappointing. I will now be shifting to passive funds/ ETFs.

I am planning to start a SIP in the Motilal Oswal NASDAQ ETF. For domestic equities I will explore direct equity as well as smallcase.

[SoumenD]

Originally Posted by Maibaa

... I am wondering if it's a good time to exit and reinvest in another fund or in direct equity, or to leave it as it is for some more years since I don't plan to use this capital for a good number of years in future.

Originally Posted by carlosTHEjackal

L&T Emerging Business fund has been underperforming its benchmark for a good 12 Months.
It is also underperforming its peer group consistently from past 3 Years.

Any fund which underperforms its benchmark need to be avoided at all cost.
My advise / suggestion is to redeem all investments from this fund as early as possible before it goes back to loss.

Yeah, that's what I am planning to do now. A market correction seems around the corner with current valuation. Just waiting for some sign of the same(i.e. 2-3 days of 3 figure reds) and I will exit the entire corpus invested in this fund. Till then trying to stay hungry(err greedy), stay foolish

Originally Posted by SmartCat

Exiting this fund now is akin to:

- Waiting inside a stationary bus for 3 hours
- But just when the driver has started the bus and started moving, you are thinking about exiting the bus.

Exit the L&T Emerging Business fund now only if you believe smallcaps will crash again.

That's why trying to piggyback the current rally as long as it stays. Normally when market crashes small caps are the ones with maximum losses and its vice versa for bull market. I am invested in Axis small cap as well and it isn't as bad a performer as this L&T small cap. Hence, planning to exit this once market correction starts. However will continue to be invested in the Axis one.

[SmartCat]

Since many of you are invested in L&T Emerging Business fund, I just took a quick look. It is just a small cap fund with a fancy name. It has underperformed NIFTY, sure, but not the small cap index.



And now that small caps have started moving after almost 3 years (index peaked in 2018), L&T Emerging Business fund too has started picking up pace.

Exiting this fund now is akin to:

- Waiting inside a stationary bus for 3 hours
- But just when the driver has started the bus and started moving, you are thinking about exiting the bus.

Exit the L&T Emerging Business fund now only if you believe smallcaps will crash again.