[ashvek3141]

Originally Posted by Fx14

Small correction here. The LTCG are not totally tax free, but taxable for the proportionate amount above the "GRAND FATHERED PRICE".

Pardon my noob question, but if we withdraw anything under 1 L in profits is still taxable?

For ex, if I have made a profit of around 1.50 L over a period of 5 years in a particular MF. Say I withdraw only 90k & leave the balance 60k as is in a financial year; wouldn’t it be tax free?

[thanixravindran]

Originally Posted by ashvek3141

Pardon my noob question, but if we withdraw anything under 1 L in profits is still taxable?

For ex, if I have made a profit of around 1.50 L over a period of 5 years in a particular MF. Say I withdraw only 90k & leave the balance 60k as is in a financial year; wouldn’t it be tax free?

AFAIK, No. LTCG will not be applicable in your example of 90K profits but 1L limit is on the entire combination of all equity or equity oriented mutual funds sold in that FY. Given this governments penchant to 'simplify' tax, I am not sure how long this 1L exemption is going to survive

[DigitalOne]

Originally Posted by astrodex

I treat these very much like 401K accounts where I don't go and take money out. To date, I haven't liquidated any of my folios...

How many others take this approach, or are most people actively moving money around, which I believe is actually trading than investing.

My earlier post may have given the wrong impression that I do a lot of churning. It is not so. All my investments are for the long term. Of course, I have made my fair share of mistakes like chasing the "best performing fund", investing in dividend option, NFOs etc but by and large I keep funds for a long time. For the last 4-5 years, I have followed the STP route from liquid funds to other funds. I hardly login to the AMC websites 3-4 times a year to do any transaction.

[KaartooS]

HAs anyone used Capital Mind subscription for their equity and mutual fund portfolios? Keen to get any feedback about them.

[DigitalOne]

How come there are very few funds in the Balanced Hybrid category i.e. 35% < Equity < 65%. Valueresearch shows only 6 funds in this category.

I believe the taxation for this category still enjoys long term indexation benefits on 20% tax rate, as was the case for all debt funds before this year.

Combining indexation benefits with a SWP can practically bring down taxes to 0. Am I missing something?

[sushantr5]

I would like to understand XIRR or in general returns shown in my portfolio. I want to understand how the compounding is generally considered.

Lets say I invested 1 Lakh for 3 years, lumpsump. Assuming rate of returns 10% each year, for my investmentment, what will be my returns

A. Rs. 1,30,000
2. Rs. 1,33,100 ( Compounded Annually)

Does Mutual Fund returns show compounding returns or simple returns in absolute terms?

[vijaykr]

My understanding is that there is no power of compounding in MFs. Compounding applies to an investment on where the accumulated interest earns interest in 2nd year and so on - e.g. a bank FD.

Value of an MF investment can go either way compared to the initial amount - higher or lower as it is market linked. Even over many years, this value can (and likely will) fluctuate with respect to the initial investment. As there is no actual "interest" being paid out in MFs, be it equity or debt funds (or other categories for that matter), we cannot apply the concept of power of compounding here.

The typical understanding appears to be that over the long-term, an equity MF investment will grow significantly compared to the initial amount and hence benefits of power of compounding is available with MFs.

Usually when annualized returns of a MF are discussed, the assumption is that the growth is a smooth, linear year on year increase of the investment. It is unlikely that a MF investment will give the same return each year. The returns are more probably going to be different each year with investment value being higher/lower compared to start. We smooth out the return variations over the years to get the CAGR which gives us an idea of how the fund has performed over time and also to help compare this performance with another instrument - say FD or PPF etc.

[ramki067]

Hi Bhpians,
I plan to invest in Nifty 50 index fund through SIP mode for 14 years for my daughter. Which is the best fund house to invest considering low expense ratio and low tracking error?
Also is there user friendly app that is trouble free with no additional cost except expense ratio of MF?


Thanks

[m2maddy]

Originally Posted by ramki067

Hi Bhpians,
I plan to invest in Nifty Next 50 index fund through SIP mode for 14 years for my daughter.

Thanks

For a daughter, I would suggest Sukanya Samruddhi Yojana if she is a kid still, it has 8.2% and not taxed and will compound as well. Downside is it is locked till the daughter attains 21 years age.

Mutual funds though risky are good option, but markets are high right now might be high till election and not sure if we see correction post that. Being said any Index fund is good, new entrant Zerodha is good and so is ICICI (look for any Index fund with TER around 0.1% and not more).

[hothatchaway]

Originally Posted by m2maddy

For a daughter, I would suggest Sukanya Samruddhi Yojana if she is a kid still, it has 8.2% and not taxed and will compound as well. Downside is it is locked till the daughter attains 21 years age.
e).

I think there is a lock in period of 21 years from the time the account is opened. One has to mandatorily contribute for 15 years and the account matures after 21 years. Partial premature withdrawal is allowed once the girl turns 18 for education/marriage.

Happy to be corrected if it's otherwise!

[ashvek3141]

Originally Posted by ashvek3141

Can someone please guide me on how to export the entire MF list via excel from value research? I tried exporting from the 'Best Mutual Funds' tab, but I find some really good MF's missing from that particular list like Canara Robeco Emerging Equities. I don't understand what according to value research is 'best' than?

Hence, I wanted to get the COMPLETE list of MF's as I am looking to start a new SIP in coming month.

Also please guide me if I am doing it all wrong.

Originally Posted by DigitalOne

How come there are very few funds in the Balanced Hybrid category i.e. 35% < Equity < 65%. Valueresearch shows only 6 funds in this category.

I hd also raised a similar query a few days ago. Somehow Value research is not showing all the funds in their lisiting.

@smartcat - Could you please guide us here , as I believ you have a good hold pn these sites.

[m2maddy]

Originally Posted by hothatchaway

I think there is a lock in period of 21 years from the time the account is opened. One has to mandatorily contribute for 15 years and the account matures after 21 years. Partial premature withdrawal is allowed once the girl turns 18 for education/marriage.

Happy to be corrected if it's otherwise!

You are right, it is locki-n for 21 years.

[Way2Jimny]

Hi All,

Total newbie question here. I'm planning to invest 25k per month on mutual funds for the next 8-10 years using SIP route. For this use case which fund is advised to go for? Should I look at hybrid funds or any top Nifty 50 blue chip equity funds?
Should I split between different funds or just place my bet on one good fund for this amount?

[thirugata]

Originally Posted by Way2Jimny

Hi All,

Total newbie question here. I'm planning to invest 25k per month on mutual funds for the next 8-10 years using SIP route. For this use case which fund is advised to go for? Should I look at hybrid funds or any top Nifty 50 blue chip equity funds?
Should I split between different funds or just place my bet on one good fund for this amount?

My suggestion would be to go for 5K each in 5 funds.
Now depending on your risk appetite, you can choose the funds.

If you like safe investments: You can look at 1 Nifty index fund, 1 Next 50 index fund, 1 large cap fund, and couple of balance funds.

If you have the risk taking ability: 1 large and mid cap fund, 1 flexi cap fund, 1 multi cap fund, 1 midcap fund and 1 smallcap fund.

Good luck with your investments.

[VWAllstar]

Originally Posted by Way2Jimny

Hi All,

Total newbie question here. I'm planning to invest 25k per month on mutual funds for the next 8-10 years using SIP route. For this use case which fund is advised to go for? Should I look at hybrid funds or any top Nifty 50 blue chip equity funds?
Should I split between different funds or just place my bet on one good fund for this amount?

You should go through this thread in detail and also consult a certified financial advisor. There are many factors like your current age, current debts, future goals, expenses, your risk appetite and so forth. Though most MFs will return more than your FD interest if you remain invested for a long period (10 years +) still it is a huge commitment. My experience was that I played very safe during my 20s when I should have taken more risks with Small Caps and now I have reworked my allocation (probably should have done it 5 years ago) So think through all parameters before you start a SIP. Best of luck. Mutual Funds Sahi Hai!