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MF Investment Help
Tracked by: 0 Boarder
Dear boarders,
need your views on this. I paid premium which was around 21% of the sume assured. I have done this for 4 yrs now, monthly. It started in Aug 2004.
I want to withdraw the amount but understand the amount will get added to my taxable income. I'm a NRI and investments were done from my NRE A/C on ECS.
1)Is there any way to avoid this taxation?
2)I was advised by a reputed firm to go with this investment. Is there a place to complain this wrong adise and get compensated?
Best regards,
Prahlad....
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I am currently investing month SIP of Rs. 1000 each Reliance Growth Fund, Reliance Pharma Fund and Reliance Vision Fund. In addition to that I have an SIP of Rs. 1500 in Reliance Diversified Power Sector Fund and Rs. 500 in Reliance Media and Entertainment Fund. Plus I have done lumpsum investment in SBI Magnum Contra Fund, HDFC Equity Fund and HDFC Top 200 about a year back. What should I do with the lumpsum investments I have made, should I hold or switch to other schemes since the returns have not been good....
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Thanks for all the responses. But one thing i felt after reading all the messages is that, the time horizon for my investments is more than 8 years. I dont think the charges are high for the pension plans.
Now, tell me is it OK if i invest in ULIPs. I really want to take a decision as i will be completing 3 years by this December for the ULIPs.
Moreover, i have invested 30% in balanced and 70% as protected in the ULIP with 50k premium. So i do not have to worry about the loss.
Below is the overall summary:
Mutual Funds - 5500 Rs per month thru SIPs
PF deduction - 1606 thru salary
ULIP (more than 8 years horizon) - 50000 per annum
Pension Plan - 16000 per annum....
In reply to:
Kindly suggest changes in my portfolio..
Posted by :
RS80
Why are the ULIPs being mixed up with MFs????? Both serve different objectives. If looking for decent investment returns (as the questioner says, 75lakhs ), shares are the only option......Buy good, cheap, performing MFs......For insurance part, get Term Insurance.......Thats the best policy frm the point of view of an investor.....Financial advisors will give \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ 
Tracked by: 0 Boarder
Dear Friend, I hope Dear Ranjan's post is sufficient to quench ur thirst. Plz. update with ur views & specific queries, if u need more help.
thanks
Ashal ...
In reply to:
Attn: Ashport, Ashalanshu, RANJAN & Other
Posted by :
Guest
Dear Ashport, Ashalanshu, RANJAN & Others
-Is it the right time to sell or switch? Which option is better, sell and buy or switch from one to other within a fund house?
-Which is better Growth or Dividend pay-out option?
Very thanks to you all.
A New Commer - Pls Guide (zapper)
Tracked by: 0 Boarder
If you have just invested - it is not the right time . If you have stayed for more than 1 year and the fund is not performing well - you can switch or redeem. If you have invested in funds with 4* or 5* rating by value research - and the rating is the same - there is nothing to worry. Continue to invest via SIP. If you have made an asset allocation - rebalance your portfolio. Stopping investment in equities is the last thing you should do. Regarding option - it depends upon your requirement - need an income opt for dividend pay out. Do not need an income - opt for growth. Dividend reinvestment is as good as growth and it is my favourite because it gives you an option to switch to payout anytime in the future and enjoy tax free dividend income. ...
In reply to:
Attn: Ashport, Ashalanshu, RANJAN & Other
Posted by : Guest
Dear Ashport, Ashalanshu, RANJAN & Others
-Is it the right time to sell or switch? Which option is better, sell and buy or switch from one to other within a fund house?
-Which is better Growth or Dividend pay-out option?
Very thanks to you all.
A New Commer - Pls Guide (zapper)
Tracked by: 0 Boarder
Always look for value research rated funds. You can go for ICICI Prudential Index / UTI Sunder. ...
In reply to:
Index Funds
Posted by : Guest
Dear MF Experts,
Pls advice your opinion about investing in Index Funds and which is the good fund to invest.
thks
zapper
Tracked by: 0 Boarder
Mr. Ranjan,
That was a very timely article by Outlook Money and thanks for reproducing it here.
I also have a gut feeling that FMPs are the next big scam in the market, the way they are marketed and money is being mopped up.
According to a recent article in The Hindu Businessline, in July 08, rs 12400 crore was collected by FMPs.
Economic common sense dictates that when interest rates are higher, then the borrowing reduces (as is very clearly evident from Auto loans and home loans). Then why are companies borrowing so much from MFs through FMPs?
Since FMPs do not declare their portfolios ahead of the NFO, the investors have to take care and:
1. Diversify, diversify, diversify across Fund houses.
2. Stagger the investments
3. Do NOT put too much into a single fund house or a single FMP.
Some fund houses like HDFC, Franklin Templeton, and Standard Chartered have been traditionally good in Debt schemes (correct me if I am wrong here). Suggestion would be to start FMP with these fund houses rather than Equity expert fund houses ( Sundaram, JM, SBI, ??)....
In reply to:
Are FMPs A Ticking Time Bomb?
Posted by : RANJAN
Are FMPs A Ticking Time Bomb? Watch Out
FMPs are walking the tightrope by taking undue risk in order to beat competition
Kayezad E. Adajania
Mutual funds (MF), taking advantage of rising interest rates, have been launching fixed maturity plans (FMPs) almost every week to attract investors. FMPs are closed-end debt funds that aim to protect the downside. But, to beat competitors, some FMPs are taking undue risks. Market sources told Outlook Money that one FMP launched by a large public-sector MF recently got into trouble with one of its underlying instruments. The company in whose debt paper this FMP had invested in, defaulted on the principal payment. Eventually, the MF’s parent company—one of India’s biggest financial houses—had to bail out the fund.
Beware of credit risk. Credit risk denotes the quality of your scheme’s underlying instruments and their ability to repay the interest and principal amounts. Whenever your FMP invests its corpus in debt papers of various companies, it hopes that when the tenures end, it gets the money back and pays them back to you—the investor.
But what happens if one of these companies defaults? There’s a good chance that your FMP might also default and you may not get the yield that was indicated to you at the time of investment. Typically, FMPs roll over such debts into a forthcoming FMP and, in the interim, borrow money to repay existing unitholders.
Here’s how a typical FMP works. Companies borrow money from banks and financial institutions to meet their day-to-day needs. They also borrow from MFs by regularly issuing debt instruments such as certificates of deposit or commercial papers. These MFs then invest their funds—that they collect through FMPs—in such papers and stay invested in them till maturity. The higher the scrip’s credit rating, the lower the yield it fetches the FMP, and vice-versa.
When these scrips mature, the companies repay the MFs that, in turn, redeem the FMPs. If, however, a company is unable to repay the loan, this particular scrip is rolled over to another FMP that the MF would have just launched, or will launch soon. In other words, this scrip would then start to appear in the portfolio of the second FMP. The MF, meanwhile, borrows the shortfall from the market and ensures that the first FMP’s redemption doesn’t take a hit.
Bitter truth. Many FMPs have taken high exposures to the real estate sector. The slump in this sector has resulted in many companies defaulting and, thus, landing MFs in a repayment soup. The MF—about whom the market is abuzz with rumours—denied the problem. The reality is many FMPs, including this one, have taken additional risks to offer that extra bit of return.
For example, as per the LIC MF’s March 2008-end portfolio published in the newspapers, many of its FMPs have exposures to the real estate and construction sectors. LIC MF FMP Series 35 had invested a whopping 86 per cent in just the construction sector. What’s more, 37.7 per cent of its corpus was invested in assets whose credit rating was below AA—OLM’s threshold of safe investments. This is just one example. There are several FMPs in the market that invest in low-rated scrips and put themselves and your money at risk. The problem is compounded as most of these FMPs disclose their portfolios only twice a year—the minimum mandate by the Securities and Exchange Board of India.
What should you do? Don’t get swayed by higher indicative yields. Apart from these being just indicative—and not a guarantee—higher the yield, higher is the amount of risk your FMP could be taking to earn that yield.
Also, look at your MF’s pedigree. “It’s always better to sacrifice a little bit of return if you are offered a quality portfolio,” says Santosh Kamat, CIO (fixed income), Franklin Templeton MF. FMPs are low-risk instruments and capital protection is important.
Although most MFs disclose portfolios of all their schemes every month, they stick to the bare minimum when it comes to FMPs. This is woefully inadequate as MFs have already shown their capability for frequent disclosures. If FMPs disclose their portfolios every month, it would give an idea to the investor about the credit quality that the MF is used to taking. Also, FMPs must mention in their offer documents the lowest bar in terms of credit quality they are willing to take.
COURTESY : OUTLOOK MONEY
Tracked by: 0 Boarder
Dear Neha Alidasani,
Performance of Relilance Growth & SBI CONTRA is OK.
You may Discontinue Further SIP in DSPML T.I.G.E.R. & ICICI Power & start NEW SIP\\`s in some of following Funds.
DSPML EQUITY / Top 100
DWS Alpha Equity / DWS Investment Opportunity.
HDFC Growth Fund / Top 200
ICICI Infrastructure Fund
P.C.Sharma
...
In reply to:
ADVISE SHOULD I CONTINUE OR CHANGE
Posted by : Guest
Dear Sir,
I am 38 and investing in MF thr SIP since last 1 year which are
1. Rs.1000/- every month in REL.GROWTH
2. Rs.1500/- every month in SBI Contra
3. Rs.2000/- every month in DSP ML TIGER
4. Rs.1000/- starts now in pru ICICI POWER
Kindly advise me about my portfolio. should i continue or change it.
FROM : Neha Aildasani
Tracked by: 0 Boarder
if i am investing rs 5000 per month for 24 yr.how much return should i calculate in my net value....
Tracked by: 0 Boarder
Dear techguy1979, Plz. note -
Birla Dynamic bond fund is a bond fund, that's why its performance in terms of returns is better than liq. + fund. As it is a bond fund, exit load is there.
Birla SL Liq. + fund don't have any exit load. I personally check from birla web site for the same. In fact no liq. + fund has exit load.
If u opt Dynamic bond fund for higher returns, even in this case Exit load don't seems much as u 'll transfer 1K per week only. So u 'll pay exit load for 4 weeks only. So for a weekly STP of 1K, ur total exit load for 4K Rs. 'll be 8 Rs. (0.2% of redeemed amount) only.
One plain advise, to avoid entry load on Target Eq. fund (Birla Frontline in this case), invest under direct mode only.
thanks
Ashal ...
In reply to:
Liquid funds
Posted by : techguy1979
Please pardon my ignorance, but I have a very basic question regarding "Liquid" funds.
I am planning to park my lumpsum money in liquid funds and initiate STP to diversified equity funds of the same fund house.
This was actually discussed in this messageboard about one month back. My question is: do I need to park my money in only those funds which have the word "Liquid" in the name? I know this sounds silly, but just wanted to confirm if the term "Liquid" (when used in a fund name) has some special meaning? e.g. consider the following 2 options where I want to STP to Birla Sunlife Frontline Equity.
1. Birla SL Dynamic Bond -RP (G) --> STP to --> Frontline Equity
2. Birla SL Liquid Plus - RP (G) --> STP to --> Frontline Equity
Now, the first option seems to be a better option to me as it has given 11% return in last 1 year. So can I go ahead with this?
Or do I have to choose the 2nd option only because the name suggests it's a "Liquid" fund?
FYI, exit loads are as below:
Birla SL Dynamic Bond (0.20% if the investment is redeemed within 30 days months from the date of allotment.)
Birla SL Liquid Plus (0.25% for redemption /switch out of units within 1 month from the date of allotment)
Again, that means I cannot start STP from Birla SL Liquid Plus before 1 month, correct me if I am wrong.
Tracked by: 0 Boarder
Dear Techguy1979, please check the messages of past 3-4 days here @ MMB, there was a list of ongoing FMPs.
Alternatively u may get the list from VROL or AMFIINDIA or Other MF related websites.
Thanks
Ashal...
In reply to:
FIXED MATURITY PLAN
Posted by : techguy1979
Fellow boarders
One request, please post a message as and when you come to know about some good FMPs. It will be really helpful to people like me who are planning to invest in FMPs.
TIA
Tracked by: 0 Boarder
Dear vipinenator
There is no guarantee on return in MFs, however you remain invested in high risk, high return for 10 yrs you can expect a return of 18-20%.
Regds
Ashport...
In reply to:
mutual fund
Posted by : vipinenator
if i invest 15,000 for next 10 yr good high equity risk fund . how much i should i get after 10 yr .
Tracked by: 0 Boarder
Dear Guest
ICICI Pru Index Fund and UTI Master Index Fund are better options among index funds.
Regds
Ashport...
In reply to:
Index Funds
Posted by : Guest
Dear MF Experts,
Pls advice about investing in Index Funds and which is the good fund to invest in.
Thks
Zapper
Tracked by: 0 Boarder
Dear Neha,
Your portfolio at first glance looks good. But sadly, 60% in Sector/Theme Funds does not angur well for your financial health. while you may continue to invest in Reliance Growth and SBI Contra, kindly have a relook and stop your sips in DSPML Tiger and ICICI Power Fund. Even in SBI contra you better reduce your sip to 500 per month only. And in Reliance Growth, you split your sip for better returns.
With the saved amount of 4000 through stoppage and reduction of sip, you can consider investing in the funds suggested below:
1000 * 1 in Birla Sunlife Frontline Equity Fund (1000)
500 * 1 in DWS Tax Saving Fund (500)
1000 * 1 in DSPML Top 100 fund (1000)
1000 * 1 in HDFC Prudence Fund (1000)
500 * 1 in Sundaram Select Focus Fund (500)
Best of luck,
Srikanth shankar Matrubai
...
In reply to:
ADVISE SHOULD I CONTINUE OR CHANGE
Posted by : Guest
Dear Sir,
I am 38 and investing in MF thr SIP since last 1 year which are
1. Rs.1000/- every month in REL.GROWTH
2. Rs.1500/- every month in SBI Contra
3. Rs.2000/- every month in DSP ML TIGER
4. Rs.1000/- starts now in pru ICICI POWER
Kindly advise me about my portfolio. should i continue or change it.
FROM : Neha Aildasani
Tracked by: 0 Boarder
You need to invest more in Large cap funds -
1. Rs.1000/- every month in REL.GROWTH - CONTINUE
2. Rs.1500/- every month in SBI Contra - CONTINUE
3. Rs.2000/- every month in DSP ML TIGER- START SIP IN DSPML TOP 100 INSTEAD
4. Rs.1000/- starts now in pru ICICI POWER -START SIP IN HDFC TOP 200 INSTEAD
Whatever you have invested till now - stay invested.
...
In reply to:
ADVISE SHOULD I CONTINUE OR CHANGE
Posted by : Guest
Dear Sir,
I am 38 and investing in MF thr SIP since last 1 year which are
1. Rs.1000/- every month in REL.GROWTH
2. Rs.1500/- every month in SBI Contra
3. Rs.2000/- every month in DSP ML TIGER
4. Rs.1000/- starts now in pru ICICI POWER
Kindly advise me about my portfolio. should i continue or change it.
FROM : Neha Aildasani
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