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MF Investment Help
Tracked by: 0 Boarder
Dear Ashal,
I thought I had a good ULPP. The Fund Management Charge was only 0.80% which is pretty good for a equity fund. And there were no other recurring charges except for a paltry Rs.20 per month.
But now I am back to square one again looking for a decent ULIP. As Sharmaji suggested, I have been looking at Reliance ULIPS. So far I am not impressed. They have a health insurance ULIP which does not have life cover which I am evaluating. HDFC ULIPS were attractive some time back, but even they have increased there fund management charges from 0.80% to 1.25%. Do let me know if you have come across any ULIPS which have minimal charges.
Thanks,
Raj...
In reply to:
SIP (or) Timing the Market
Posted by :
ashalanshu
Dear vvrk, Ur Ins. Agent had fooled u.
1. Premature Withdraw - In case of Premature withdraw of ULPP or Ordinary Pension Plans, The amount received \\`ll be added to ur income from all other sources in the FY of receipt & \\`ll be taxed accordingly.
2. Held till Maturity - If u hold ur ULPP or OPP till maturity, out of total accumulated corpus, u can withdraw only 1/3rd of it tax free, rest u can invest with the same ins. co. or any other which is offering higher return (read pensions) on this corpus for the same parameters. Pension received from pension plans is taxable. Also @ age 60, the cash commuted part (1/3rd of total corpus) is tax free at the time of receipt but wherever u invest it except Eq. & Eq. MFs, be it SCSS, POMIS, Bank FDs, Debt funds the income generated from such taxfree cash commuted part \\`ll also be taxable.
That\\`s why from Taxation angle, Pension Plans r not that much beneficial. So u should also think what i suggested in my prev. post.
Opt either whole life or till age 75 coverage type - 1 ULIP, with minimum possible sum assured. As the inter funds (Pure Eq. to balanced to Pure debt & vise versa) transfer is more Tax efficient in ULIPs, one can use this type of ULIPs as pension plans. After age 60, whenever u \\`ll withdraw a part from ur ULIP, it \\`ll be tax free & at the same time \\`ll be just like receiving a pension to u.
Thanks
Ashal 
Tracked by: 0 Boarder
Dear NRE Investor,
The name of the book is
Value Averaging
-The Safe and Easy Strategy for Higher Investment Returns
By Michael E. Edleson
This could be the same book that you have?...
In reply to:
SIP (or) Timing the Market
Posted by :
NRE Investor
Dear Raj (vvrk),
"I do have a book on Value Averaging by Michael Edleson. Mr. Edleson"
Would you be kind enough to let me know the name of book that you refer above.
Regards
NRE INVESGTOR
(New Boarder)
Tracked by: 1 Boarder
I think i have got some sense of options.. would it be possible to do the same thing with futures also.. so that the concepts can be clear.....
In reply to:
Understanding the ABC of Options trading
Posted by : MMB Messenger
Talks about option premiums, calls and puts can be extremely confusing for somebody who has no idea at all about all these things. Yogesh Chabria explains 'Options' in layman's language.
Tracked by: 0 Boarder
I am investing 50,000 Per year in Aviva Ulip plan with dismal returns. Should I continue after 3 years of invest in HDFC fund instead?...
Tracked by: 2 Boarders
Gold might see Rs. 8800 to Rs. 9200 per 10 gms on lower side. & next year target for Gold could not more than Rs. 12000 per 10 gms. However some bounce back from Rs.10000 to Rs. 10600 could be seen. This diwali Heavy gold selling will be seen however, few buyers for it. It would take gold down significantly immediate after diwali. Also, Chinese demand drop would be one more reason for this. Even if Gold corrects during Diwali time, it will not be a surprise as many many jwellers would stop gold buying for months....
In reply to:
Not the best time to buy gold now: Dhirendra Kumar
Posted by :
kentmss
Also, I am against investing ETF. You can invest in them, but it should be very minimal. I would rather invest in Gold Funds like DSPML World Gold Fund and AIG World Gold fund.
Srikanth
Tracked by: 2 Boarders
Don't invest in AIG funds. AIG is troubled and may soon go bust....
In reply to:
Not the best time to buy gold now: Dhirendra Kumar
Posted by : kentmss
Also, I am against investing ETF. You can invest in them, but it should be very minimal. I would rather invest in Gold Funds like DSPML World Gold Fund and AIG World Gold fund.
Srikanth
Tracked by: 0 Boarder
Stop your SIP in Reliance Vision, HDFC EQUITY & HDFC PRUDENCE immediately.
Stay invested in these funds for 1 year and then switch to better funds in the same fund house.
Start SIP in Sundaram Select Focus, DWS Investment Opportunity & DSPML Balanced fund. ...
In reply to:
portfolio has past, not current performer
Posted by : Guest
Hi
I am doing SIP in 7 funds since past 1.5 yrs
1. Rel Vision (large cap)
2. Rel growth (mid cap)
3. HDFC top 200(large)
4. HDFC equity (diverdified cap)
5. Pru ICICI infra(sectoral)
6. Magnum COntra ( special/large cap)
7 HDFC prudence(balanced fund)
Rel visisona nd HDFC equity were great performers few years back . Now their performance has lagged.
Newer funds from other fund houses like DSPML equity and Birla have become better choices.
The question is whther SIP in these 2 funds shuld be stooped, and new SIP be started. Then i risk losing the chance to fully average my cost of purchase on these two funds.
Please advice
Tracked by: 0 Boarder
can i hold for long term?...
Tracked by: 2 Boarders
hi how is the future of infrastracture fund. I have invested some money in Kotal Indo World Infrastracture Fund ?...
In reply to:
Not the best time to buy gold now: Dhirendra Kumar
Posted by : kentmss
Also, I am against investing ETF. You can invest in them, but it should be very minimal. I would rather invest in Gold Funds like DSPML World Gold Fund and AIG World Gold fund.
Srikanth
Tracked by: 0 Boarder
How To Read a Factsheet
The document is a report card of the schemes you have invested in ---------------Most mutual funds release details of portfolios every month in a factsheet, which is considered to be a report card of the schemes. It is meant to inform the investor where his funds have been deployed and also for showcasing the credit quality of the investments.
A factsheet can also be used as reference guide by a potential investor to deploy their savings.
Here’s what you should look for in it.
Is your portfolio concentrated? You need to know whether your fund is concentrated or well-diversified. A concentrated portfolio has the potential to bring in more returns. However, it is quite risky as any volatility in the stockmarket can render your investments more volatile as compared to others.
Although the Securities and Exchange Board of India’s mutual fund guidelines mandate that a fund cannot invest more than 10 per cent in any scrip at the time of investment, it’s generally a good practice if your mutual fund remains below 10 per cent, at all times, in all its scrips.
What’s the score? You invest in various mutual funds to earn money. So you need to check out its performance. If it is an equity fund, check out the long-term performance. If it is a debt fund, check out the short-term and the long-term performances. Look at the scheme’s benchmark returns too. This will show how the fund has performed against them.
Cash levels. In the past few years mutual, funds have increasingly been using cash as a strategic tool to combat volatility. When a fund manager feels that markets are too volatile, or fears redemption pressure, he sells scrips and sits on cash. Check out your mutual fund’s cash level as it can indirectly give you a hint as to what market conditions your fund manager is expecting in the near future.
Expense ratios and loads. A factsheet also carries the expense ratio along with entry or exit loads associated with the respective scheme. Expense ratios impact the returns of the scheme. The impact is more in case of debt funds as here the payback is less than for equity funds. The maximum expense ratio, charged as a portion of weekly average net assets, cannot exceed 2.5 per cent in case of equity funds and 2.25 per cent in the case of debt funds.
Average maturity of schemes. Check your scheme’s average maturity (average of total maturity of papers) if you have invested in a debt fund. The higher the average maturity of a scheme, the more vulnerable it is to the interest rate scenario.
Your scheme’s average maturity should be in line with your investment objective. Due to a volatile interest rate scenario, some bond funds sit on cash and, therefore,
sport an average maturity of zero. You should be careful of such discrepancies.
Credit quality. A company’s chances of timely interest and principal payments are reflected by its credit rating. It is expressed in a mix of letters and numbers (AAA, F1+, B-). The higher the credit rating of a scrip, the better is the quality.
A higher-rated scrip is also liquid. It speaks well of a fund that has invested in a majority of its instruments in higher-rated instruments as it indicates safety and liquidity.
OutLook Money............
Tracked by: 0 Boarder
Dear db8037,
Dividend PAYOUT may be seen as Profit Booking ( Part of Asset Allocation Strtagy). Dividend Payout may be Kept in Liquid fund &
Re-invested in Equity /Balance Fund when market Declines .
P.C.Sharma
...
In reply to:
Importance of Asset Allocation Strategy
Posted by : db8037
Hello Raj,
Brilliant work. I appreciate your postinig. In fact it came to me as a surprise. I have been investing in MF via SIP for past 3 yr and looking to remain invested for next 7 yr targeting investment for 10 yr but off late, I have been feeling that pure SIP (sounds dull) is not going to serve the purpose (looking at inflation). Your article of FT fund is good to read but can you please let me know how can I do asset allocation among regular div fund. For ex if I am investing 2500 in Sundaram Focus, how can I achieve asset allocation similar to FT fund. How to do it? Is it simple? Value Averaging is a complex thing to manage I believe since one has to do monthly calculations and then in a market which is going in single direction (like our market in last 2 yrs) it is diff to invest since the amount will come down drastically..Our markets are very very volatile and it seems we can reach 18K in 2-3 months and at current levels of 15K, as per value averaging, I will be investing hardly 1500 if that happens comparing to 2500 per month on sip...I hope I am clear in explaining my question.
Thanks to all for spending time to make others understand the complexity associated with investments. they are doing a nobal work and I salute all such members...
Tracked by: 0 Boarder
Dear kentmss,
Reliance VISION could be replaced by any one of Following Funfds.
DWS Alpha Equity / Investment Opportunity
HDFC Growth Fund
Reliance RSF Equity
P.C.Sharma
...
In reply to:
Fund Advise
Posted by : kentmss
One Mr.shah wrote :
"Hello
I need your help to plan my investments. The background....
I am 32 and I started investing regularly since this year. I invested through
SIP on a monthly basis.
Please advise if I need to stop any of these SIPs / switch to other funds.
Kotak Opportunities - Growth - Rs 5000 Per Month
Birla Sun Life Frontline Equity Fund-Growth - Rs 5000 Per Month
DSP India T.I.G.E.R. Fund - Growth - Rs 5000 Per Month
Prudential Infrastructure Fund - Growth - Rs 5000 Per Month
Reliance Vision Fund - Growth - Rs 5000 Per Month
Reliance Growth Fund - Growth - Rs 5000 Per Month
Srikanth's reply ::
Dear Ritesh,
Your portfolio is neat, compact and nearly perfect for your age. There is very little change required, in fact, if any.
But still, you could switchover from Prudential Infrastructure Fund to ICICI Infrastructure or DSPML Tiger Fund, in the infrastructure Space.
Also, you could stop your sip in Reliance Vision Fund, for now as it's performance has been below average recently. You could invest in HDFC Top 200 fund or Sundaram Select Focus fund. This will not only maintain your large cap bais, but also reduce your slight overexposure to Reliance Mutual Fund House.
And, one more thing, split your 5000 into 2000 (2) and 1000 (1) sip over three different dates to maximise the advantage of volatility in the movement of NAVs.
Other than the above, I would like you to take a small exposure (say 1000 per month) into an International Fund (Templeton India Equity Income Fund/Birla Sunlife Intl fund) and also into a Commodity Fund like (DSPML World Gold fund / Mirae Asset Global Commodities Stock Fund).
These would compliment your portfolio perfectly.
After 5 years or so, gradually shift away from Sector/Commodity Funds into Diversified Equity Funds.
Best of luck.
Regards,
Srikanth'
Do you feel anything more could have suggested to Mr.Shah
Tracked by: 2 Boarders
If one invests in Diversified Mutual Funds it is necessary to see that not all the funds have more or less same portfolio,Verify their holdings....
In reply to:
Not the best time to buy gold now: Dhirendra Kumar
Posted by : kentmss
Also, I am against investing ETF. You can invest in them, but it should be very minimal. I would rather invest in Gold Funds like DSPML World Gold Fund and AIG World Gold fund.
Srikanth
Tracked by: 0 Boarder
One Mr.shah wrote :
"Hello
I need your help to plan my investments. The background....
I am 32 and I started investing regularly since this year. I invested through
SIP on a monthly basis.
Please advise if I need to stop any of these SIPs / switch to other funds.
Kotak Opportunities - Growth - Rs 5000 Per Month
Birla Sun Life Frontline Equity Fund-Growth - Rs 5000 Per Month
DSP India T.I.G.E.R. Fund - Growth - Rs 5000 Per Month
Prudential Infrastructure Fund - Growth - Rs 5000 Per Month
Reliance Vision Fund - Growth - Rs 5000 Per Month
Reliance Growth Fund - Growth - Rs 5000 Per Month
Srikanth's reply ::
Dear Ritesh,
Your portfolio is neat, compact and nearly perfect for your age. There is very little change required, in fact, if any.
But still, you could switchover from Prudential Infrastructure Fund to ICICI Infrastructure or DSPML Tiger Fund, in the infrastructure Space.
Also, you could stop your sip in Reliance Vision Fund, for now as it's performance has been below average recently. You could invest in HDFC Top 200 fund or Sundaram Select Focus fund. This will not only maintain your large cap bais, but also reduce your slight overexposure to Reliance Mutual Fund House.
And, one more thing, split your 5000 into 2000 (2) and 1000 (1) sip over three different dates to maximise the advantage of volatility in the movement of NAVs.
Other than the above, I would like you to take a small exposure (say 1000 per month) into an International Fund (Templeton India Equity Income Fund/Birla Sunlife Intl fund) and also into a Commodity Fund like (DSPML World Gold fund / Mirae Asset Global Commodities Stock Fund).
These would compliment your portfolio perfectly.
After 5 years or so, gradually shift away from Sector/Commodity Funds into Diversified Equity Funds.
Best of luck.
Regards,
Srikanth'
Do you feel anything more could have suggested to Mr.Shah
...
Tracked by: 0 Boarder
Dear db8037,
To do asset allocation, you will need a equity and a debt fund from the same fund house. You can transfer funds from the equity to debt fund or vice versa depending on your formula.
The disadvantage is that there are taxes, entry/exit loads involved in trying to implement asset allocation strategies using mutual funds. It is easier to invest in a fund of funds which follows a asset allocation strategy (or) try to implement it in ULIPS. With fund of funds, you will have to pay long term capital gain tax when you sell the fund.
Thanks,
Raj...
In reply to:
Importance of Asset Allocation Strategy
Posted by : db8037
Hello Raj,
Brilliant work. I appreciate your postinig. In fact it came to me as a surprise. I have been investing in MF via SIP for past 3 yr and looking to remain invested for next 7 yr targeting investment for 10 yr but off late, I have been feeling that pure SIP (sounds dull) is not going to serve the purpose (looking at inflation). Your article of FT fund is good to read but can you please let me know how can I do asset allocation among regular div fund. For ex if I am investing 2500 in Sundaram Focus, how can I achieve asset allocation similar to FT fund. How to do it? Is it simple? Value Averaging is a complex thing to manage I believe since one has to do monthly calculations and then in a market which is going in single direction (like our market in last 2 yrs) it is diff to invest since the amount will come down drastically..Our markets are very very volatile and it seems we can reach 18K in 2-3 months and at current levels of 15K, as per value averaging, I will be investing hardly 1500 if that happens comparing to 2500 per month on sip...I hope I am clear in explaining my question.
Thanks to all for spending time to make others understand the complexity associated with investments. they are doing a nobal work and I salute all such members...
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