[rohan_iitr]

I have been investing in Mutual Funds in various categories.

I want to add some exposure to foreign markets in my portfolio. Is ETF a good option for this ? Which foreign indices should I be looking at ?

Also, I used to invest in SGBs earlier. Are gold ETFs the next best thing ?

[vaibhav_a_a]

Yes gold ETFs and FoFs are pretty much your only tradable option that track gold prices. Select one with a decent AUM.

p.s. buying SGB from secondary remains an option if you plan to hold to maturity and select something with a long (5+ years) horizon.

[WEJ]

Hello fellow members,

I do have some queries on MF investment. Pease guide with your learned inputs.

We can keep the taxation part out of this.

For someone who requires 21 Lakhs/ year for next 3 years, the simplest route could be to collect a princely sum of 3 Cr and make a FD @ 7% or 7.5%.

Now the Queries-
1) Can this target be achieved by investing in MFs with lesser investment amount, say less that 3 Cr.
2)What best MF categories to consider reference the ongoing pessimistic market performance, although recovering now.
3)Lastly, if a SWP approach is used to redeem 21L every 13th month, what should be the ideal investment mix (between 2 to 3 Cr) and the MF categories to invest with minimal capital erosion.
Kindly assist with guidance.
Thanks- WEJ

[tasty911]

Originally Posted by WEJ

For someone who requires 21 Lakhs/ year for next 3 years, the simplest route could be to collect a princely sum of 3 Cr and make a FD @ 7% or 7.5%.

Now the Queries-
1) Can this target be achieved by investing in MFs with lesser investment amount, say less that 3 Cr.
2)What best MF categories to consider reference the ongoing pessimistic market performance, although recovering now.
3)Lastly, if a SWP approach is used to redeem 21L every 13th month, what should be the ideal investment mix (between 2 to 3 Cr) and the MF categories to invest with minimal capital erosion.
Kindly assist with guidance.
Thanks- WEJ

3yrs is too short a time to risk in equity.
FD is your best option. Everything else has lower returns or higher risk.

[digitalnirvana]

A little bump with the current volatility. Questions and thoughts from veterans as to how you are dealing with it.

Personal background:
I only started investing a few months back, and only in Nifty 50 index for equity and gilt for debt, in a rough 50:50 split. This has a 10 year horizon which will be close to my retirement. I do a manual purchase every month, generally in the first week. Currently I have some spare cash.

[SmartCat]

Originally Posted by digitalnirvana

I only started investing a few months back, and only in Nifty 50 index for equity and gilt for debt, in a rough 50:50 split. This has a 10 year horizon which will be close to my retirement. I do a manual purchase every month, generally in the first week. Currently I have some spare cash.

Perfect. This way, there is no need to make discretionary decisions. You will automatically be "buying low" when the markets fall. Since equity % will now be lower than 50%, deploy investible cash into NIFTY ETF this week.

If you want to add some seasoning to the dish, buy some Gold ETF. Maintain something like 50% in equity, 40% in gilt and 10% in Gold. Both Gilts and Gold typically go up whenever there is a serious bear market. So the portfolio has an element of in-built hedging.

[Fx14]

Originally Posted by SmartCat

Both Gilts and Gold typically go up whenever there is a serious bear market. So the portfolio has an element of in-built hedging.

Strangely though of late, have observed that Gold and Silver ETF tend to mirror the equity markets trend.

For example today's closing rates displayed on moneycontrol:

• Nippon Gold ETF down 1.55%
• HDFC Gold ETF down 1.86%
• Nippon Silver ETF down 3.0%

[SmartCat]

Originally Posted by Fx14

Strangely though of late, have observed that Gold and Silver ETF tend to mirror the equity markets trend.

Equity and Gold will not be like Yin and Yang or Tom and Jerry all the time. They can go up or down together too. But if it is a serious long term bear market, Gold typically acts as a hedge. And this happens because of structural reasons -> money pulled out of stock market has to go somewhere.

- If it rushes into banks or treasury bills, it's returns will trend towards zero. That's because banks no longer need to work hard to get deposits. If they offer 4% or 3% or 2% or even 1% as FD returns, investors will line up.
- Next popular option is investment in Swiss Francs or Japanese Yen. But they cannot absorb unlimited investment either and will start offering negative returns
- Finally, when returns on deposits or currencies become unattractive, money moves in the last available safe haven asset which is Gold. For Indian investors, there is additional bonus because USD typically strengthens against INR whenever there is a major long duration crisis, boosting Gold returns.

[NSN]

Invested in Deutsche alpha equity fund long back 2005.
It was taken over by DHFL. Later PGIM? checked PGIM website it says no account exists for the PAN provided.
Latest statement dividend not received by me.
Under which AMC presently the fund is.
How to get the redemption.
Please suggest.

[srikanthns]

Originally Posted by digitalnirvana

A little bump with the current volatility. Questions and thoughts from veterans as to how you are dealing with it.

Personal background:
I only started investing a few months back, and only in Nifty 50 index for equity and gilt for debt, in a rough 50:50 split. This has a 10 year horizon which will be close to my retirement. I do a manual purchase every month, generally in the first week. Currently I have some spare cash.

Very correct way to start investing journey. I was just thinking Had somebody told me this at the beginning, so much pain could have been avoided. Your time horizon is perfect for the portfolio. Only thing is to avoid temptation of adding more funds. Believe me, it is very tough not to succumb to that. All the best

[digitalnirvana]

Originally Posted by srikanthns

Very correct way to start investing journey. I was just thinking Had somebody told me this at the beginning, so much pain could have been avoided. Your time horizon is perfect for the portfolio. Only thing is to avoid temptation of adding more funds. Believe me, it is very tough not to succumb to that. All the best

Thanks for the kindness.

To be honest, I am 18 years too late. Burned my funds in GFC 2008 and then sat out of the greatest wealth creation period of my age.

Now dipping my toes back in, far far too late. I'm 41 now and as an IT coolie the runway is very limited.

The modest wealth that I create will be for my retirement, if I am able to ever meaningfully retire, and for the next generation.

If this helps anyone, I only wish to have not done those mistakes and stayed the course for 18 long years.

[gischethans]

Deepak Shenoy's Capitalmind has received final SEBI approval to launch Capitalmind Mutual Fund!

People here might be aware of the Capitalmind blog started by Deepak Shenoy. Currently, they run a PMS, AIF managing over ₹2000 Cr+ AUM. Momentum investing is their stronghold, and with the mutual fund approval, they are looking to launch active mutual funds for investors. The first NFO is a few months away, tweeted Deepak.

Source

[am1m]

Originally Posted by digitalnirvana

To be honest, I am 18 years too late. Burned my funds in GFC 2008 and then sat out of the greatest wealth creation period of my age.

Don't be so hard on yourself, my story is very similar. Started investing in equity early enough, but for no good reason, stopped for, like you have exactly described it, the greatest wealth creation period I had! Focused on more conservative investments. If I had switched the ratios/amounts, I would have retired comfortably by now! I blame financial illiteracy, most of us from 'professional' working families, of our generation just never imbibed the equity route the way my friends from business families did.

But hey, better late than never. (And I comfort myself by saying that at least I didn't get into debt!)

Originally Posted by gischethans

People here might be aware of the Capitalmind blog started by Deepak Shenoy.

Oh nice, I used to follow his blog way back in the early days. Very down-to-earth, practical advice. I hope he does really well!

[spookey]

Deepak is also a fellow Team - Bhpian can't recollect his handle here though. On a twitter engagement some years ago i had casually enquired his absence here and he acknowledged it due to pre occupation with Capital mind.

Originally Posted by gischethans

Deepak Shenoy's Capitalmind has received final SEBI approval to launch Capitalmind Mutual Fund!

People here might be aware of the Capitalmind blog started by Deepak Shenoy. Currently, they run a PMS, AIF managing over ₹2000 Cr+ AUM. Momentum investing is their stronghold, and with the mutual fund approval, they are looking to launch active mutual funds for investors. The first NFO is a few months away, tweeted Deepak.

Source

[DigitalOne]

Originally Posted by digitalnirvana

I only started investing a few months back, and only in Nifty 50 index for equity and gilt for debt, in a rough 50:50 split. This has a 10 year horizon which will be close to my retirement. I do a manual purchase every month, generally in the first week.

I hope you are doing "Direct" investments and not regular (i.e. via a distributor). Do an SIP instead of doing manual purchase every month. You will get doubts whether to defer/advance purchases for a day/week. You will get purchase regrets if markets fall the day after you buy. All this is highly stressful.

If you have a 10-year horizon, then put 50% (of equity investment) in a midcap index fund. The remaining 50% can be in Nifty 50.

Regarding Gilt funds, please be aware they can give negative returns. When RBI interest rates rise, Gilt funds give negative returns. This period can be as long as 1-2 years. If the negative return period coincides with your horizon, your returns will be negatively impacted. So, do keep a watch on this. Right now, the interest rate cycle is on a downtrend.

Originally Posted by gischethans

Deepak Shenoy's Capitalmind has received final SEBI approval to launch Capitalmind Mutual Fund!

People here might be aware of the Capitalmind blog started by Deepak Shenoy.

Wish them the very best!! Deepak Shenoy/CapitalMind runs a fantastic blog. I give a nod of thanks whenever I pass their office in HSR layout .

They send a free invesment/economy/general gyaan newsletter every Saturday called the "Capitalmind Saturday Coffee" which has become mandatory reading for me for past few years. I can't recall how I subscribed to the newsletter (I am not a customer). If interested, you can send a mail to "premium@capitalmind.in" and see if they respond.