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MF Investment Help
Tracked by: 1 Boarder
Hi
Bank FDs are not so safe nowadays considering the crisis in the credit market. The PSU Banks are not offering the highest interest rates for the FDs, only the newgen banks like ICICI are offering 10+% but its not safe to be with them.
Considering the 0% risk on capital, POIMS comes as the 1st Option - irrespective of the tardy service in the post offices.
Happy Investing
Sodium...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
wadia
Dear Adi,
You are absolutely right about investing in FDs choosing monthly interest option but when this article was initialy published sometime last year, year and a half, the FD interest rate scenario was different and the old article is just repeated word to word here. If I remember correctly, even Mutual Fund Insight magazine too published the same idea 2 years back.
regards,
Wadia
Tracked by: 0 Boarder
i understand that because of amalgamation of dsp ml with a singapore company called hardrock, investors have been asked to redeem if they wish at current nav
i have an investment of rs 15000 in dsp top 100, 30,000 in tiger and 20,000 in opportunity eq. these are doing so badly even my principal has been heavily eroded.
i shall be very grateful if somebody will please advise.should i redeem even at a loss of 23,000 rs.or should i let it be for a few months. here let me mention i am a senior citizen
thanks a lot
sen
...
Tracked by: 1 Boarder
Dear Adi,
You are absolutely right about investing in FDs choosing monthly interest option but when this article was initialy published sometime last year, year and a half, the FD interest rate scenario was different and the old article is just repeated word to word here. If I remember correctly, even Mutual Fund Insight magazine too published the same idea 2 years back.
regards,
Wadia
...
In reply to:
Learn to invest in equities without an iota of risk
Posted by :
Adi
Why are u talking abt Post office schemes.. FDs are easily giving close to 11% today.. why not go for them.. it would increase the overlall return in the above case... one can always take monthly interest option!!
Tracked by: 0 Boarder
Since various types of mutual funds come with distinct investment objectives, as an investor, the onus is on you to opt for a fund whose objectives best match your own investment needs and gives you the kind of returns you want from your investment. But your decision to opt for either a dividend or growth scheme should be based on three crucial factors— investment horizon, market conditions and taxes.
If you are looking at an investment horizon of three years or more in an equity fund, then you should consider the growth option. This allows your investment to compound over a period of time, thus, improving your rate of returns.
As dividends from mutual funds are basically a portion of the corpus that is returned to you, they do not help create wealth over time (unless you reinvest the dividend elsewhere).
However, if you are investing for the short term, a dividend option is more tax-efficient—dividends of equity funds are tax-free in the hands of investors.
On the other hand, short-term capital gains are taxed at 15 per cent plus surcharge and cess, which works out to 17 per cent. In an ELSS (equity-linked savings scheme), since your investment is locked in for three years, you could opt for a dividend option only if you need the income.
Also, dividends from equity funds are irregular. Fund houses may declare dividends depending on the market conditions; in a bull market, the frequency of dividend payouts may rise, while the reverse may happen in a bear market. Says Sridhar Vetapalem, an independent financial planner from Pune: “There are no certainties of dividends from a mutual fund. In bear markets, they may not pay any at all.”
Debt funds, however, are taxed at a different rate. The dividend is taxed at 14.12 per cent. The shortterm capital gains from a debt fund is taxed as per the regular income tax slabs for individuals while the long-term capital gains is taxed at 11.33 per cent without indexation or 22.66 per cent with indexation.
So, it’s tax-efficient for you to opt for the growth option if your investment horizon is over a year for a debt fund. Otherwise, you can go for the dividend option if the tax rate is less than your slab rate. Note that the fund house deducts the tax and then gives the dividend. Yet, some savvy investors think that dividends from equity funds are good in a heated bull market. A dividend option is a form of profitbooking in a mutual fund.
A dividend option gives you the discipline to book your profits. You can reinvest the dividends you receive in a liquid fund for a short term and, perhaps, re-enter when the markets cool down. Says Y.S. Suresh, Financial Advisor at Bajaj Capital: “Investors close to retirement must opt for dividends from an equity fund.”
Business Today...............
Tracked by: 1 Boarder
bank fd with sweepin facilty is very good- where your fd of say one lac gets 11% annual interes and one can have sip of the interes part say 1000rupees per month. fd will not be broken it will continue to earn same amount and money will be taken from either savingsaccount or fd ,--...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : Adi
Why are u talking abt Post office schemes.. FDs are easily giving close to 11% today.. why not go for them.. it would increase the overlall return in the above case... one can always take monthly interest option!!
Tracked by: 0 Boarder
you can add HDFC-growth, kotak-30 and reliance-growth funds as a sip.birla sunlife frontline is a inferior fund....
In reply to:
MF investment
Posted by :
ashalanshu
Dear dr sundeep, plz. invest in following large cap oriented diversified funds.
HDFC Top 200
DSP Top 100
Sund. select focus
Birla Sunlife Frontline Eq.
Plz. invest using liquid + fund & STP route. Plz. don't invest in a lump sum.
Thanks
Ashal
Tracked by: 0 Boarder
Dear dr sundeep, plz. invest in following large cap oriented diversified funds.
HDFC Top 200
DSP Top 100
Sund. select focus
Birla Sunlife Frontline Eq.
Plz. invest using liquid + fund & STP route. Plz. don't invest in a lump sum.
Thanks
Ashal...
In reply to:
MF investment
Posted by : dr sundeep
I do not have the the market knowledge.I want to invest for long term in mutual funds should I go for sector spesific MF? /Diversified MF/Balance MF
Tracked by: 1 Boarder
Why are u talking abt Post office schemes.. FDs are easily giving close to 11% today.. why not go for them.. it would increase the overlall return in the above case... one can always take monthly interest option!!...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : MMB Messenger
One can invest in equities with the guarantee of not losing capital. In other words, "having your cake and eating it too." Sandeep Shanbhag tells you how.
Tracked by: 1 Boarder
Nice article. Mutual Funds are best and now they are availabe at a rock bottom price. Great opprtunity to buy....
In reply to:
Learn to invest in equities without an iota of risk
Posted by : MMB Messenger
One can invest in equities with the guarantee of not losing capital. In other words, "having your cake and eating it too." Sandeep Shanbhag tells you how.
Tracked by: 1 Boarder
Actually Kotak has come up with a product on similar lines. It is called Kotak ACE Account. How this works is, the money you invest is put in a Fixed Deposit which pays monthly interest and this amount is transferred automatically to the mutual fund of your choice through SIP. ...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : MMB Messenger
One can invest in equities with the guarantee of not losing capital. In other words, "having your cake and eating it too." Sandeep Shanbhag tells you how.
Tracked by: 0 Boarder
Hi Shakti,
Could you please explain in detail the 2nd point?
Let me tell you my scenario, I have invested lumpsum money in Liquid+ funds and set up 1k weekly STP. Now on days of heavy fall, I intend to increase that to 2k/5k depending on situation.
But this is not what you are talking about right?
Thanks,...
In reply to:
beware of sips in bear market
Posted by : sp.palo
Two simple rules to my knowledge in prolonged bear phases to all MF investors:
1. Dont discontinue the SIP in panic or frustration. Rather be sincere in its payment date.
2. Average your units ( for lump sum investors ) in existing funds by repurchasing units in every 5% market dips.
regards
shakti
Tracked by: 1 Boarder
WHat the author seems to have done is created his own \\\\\\\\...
In reply to:
Learn to invest in equities without an iota of risk
Posted by : MMB Messenger
One can invest in equities with the guarantee of not losing capital. In other words, "having your cake and eating it too." Sandeep Shanbhag tells you how.
Tracked by: 1 Boarder
One can invest in equities with the guarantee of not losing capital. In other words, "having your cake and eating it too." Sandeep Shanbhag tells you how....
Tracked by: 0 Boarder
I do not have the the market knowledge.I want to invest for long term in mutual funds should I go for sector spesific MF? /Diversified MF/Balance MF...
Tracked by: 0 Boarder
These are the investors who have no future goals or plans that they have invested their money in MF for. The most probable reason would be to earn some quick money thinking everybody is making money in this market so why not me. We all keep repeating that equity is for long term and SIP is the best way to invest systematicaly and regularly but at the first sign of a down turn, they want to run away and hide.
Dear Scary investors, remember that one buys low and sells high to make money and not the other way around whch is the sure way of loosing money and allowing others to make money at your cost,
Regards,
Wadia ...
In reply to:
INVESTMENT IDEAS !
Posted by :
db8037
u know what. earlier people used to come to this section for advice on which fund to go for? but now people are saying..i want to stop my sip...i want to open a rd account with bank...we have seen that mf are buying exactly the same quantity fii are selling on daily basis. in fact the annual figure since 1 jan 08 is also close...whatever amount fii have sold has been absorbed by mf. which means mf will be able to show us the gains once this panic is over...mf are shielding us otherwise these foreigners would have pulled the market to 8000 or 9000 on sensex already but we are still sitting at 12000 around...we must strengthen mf hands rather running away...if we educated people also start running away from mf. it will indirectly help fii...mf money is india's money...our small investor money...so i suggest to hold the things rather start running...
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