Team-BHP - The Mutual Funds Thread

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Quote:

Originally Posted by saket77 (Post 4286412)

It is not proven that ELSS schemes give more returns than normal equity schemes. And without any additional benefit, even theoretical, I would not like to keep my money locked in for 3 years.

My friend why would you keep your money locked in for 3 years. You can take out your money anytime you like. If you have your 80c needs fulfilled from other schemes then treat the ELSS funds as normal funds and take out your money whenever you need.
Nothing is proven in MF market. I just mentioned my scenario.

Friends, Anyone using "Goalwise" to invest in Regular MF and the reviews are good, in general. Re-balancing of the portfolio is what they claim as their USP and a differentiating factor from others such as ICICI Direct and Scripbox.

Any inputs on this are welcome.

Today the $ dropped below ₹65 after ages. The drop is pretty steep and also with the US rate cut on the cards it may stick. So that is good news. About a month ago I was speculating on the 64 mark being breached.

Quote:

Originally Posted by Pancham (Post 4286694)

As far as I know, you will have to give a declaration to the fund that you have not claimed tax deduction on your ELSS investment. Isn't that the process? Never tried it.

Quote:

Originally Posted by Pancham (Post 4286694)

ELSS funds are basically locked in for 3 years. Your normal redemption application will get rejected by the AMC. I don't know practically how easy or tough the process to withdraw the ELSS fund before 3 years lockin is with the Income tax department in picture and even if practically it is possible. And even if it is possible, it is not simple as compared to normal equity redemptions.

And again, my scenario remains the same. Without any benefit over non-ELSS schemes, I would not invest in ELSS, esp. when I have exhausted my 80C otherwise.

Initially when ELSS was launched, I put some money in expecting the longer lock in to deliver better results, but was disappointed. So today I may go into ELSS for some of the 150k in Sec 80C but then pull out as soon as the lock in is over, quite often switching to a normal scheme of the same fund house.

ELSS should never be used as investment vehicle out of Tax angle. Because ELSS has less churning by design and hence may not give great returns and in turn would not move out of losing stocks too. So it is always better to use ELSS as tax saving. All other equity funds' returns are tax free after 365days. And ELSS or any other equity funds' should be through SIP only.

Friends I have received my CAN from www.MFUIndia.com. How should i request for online access to www.mfuonline.com ? Thanks.

Quote:

Originally Posted by DigitalOne (Post 4287008)

As far as I know, you will have to give a declaration to the fund that you have not claimed tax deduction on your ELSS investment. Isn't that the process? Never tried it.

I do not think it is possible. Once I have tried to switch from Growth to Dividend option that itself was not allowed citing 3 years lock in.

Quote:

Originally Posted by blorebuddy (Post 4287817)

I do not think it is possible. Once I have tried to switch from Growth to Dividend option that itself was not allowed citing 3 years lock in.

Growth & Dividend are treated as separate channels most of the time. So i will consider it quite normal.

Any opinion on recent DSP Equal Nifty 50 fund (Difference is 2% weight on all constituents of Nifty 50, as opposed to based on Market cap by Nifty50 itself)?
I missed the NFO window due to a hectic last week. Is it ok to buy sometime this coming week (as it's a new fund) or worth waiting for market to slow down (just like any other MF)? :confused:

Quote:

Originally Posted by ventoman (Post 4287930)

The following article discusses this fund in detail.
http://www.subramoney.com/2017/09/ds...ed-index-fund/

Quoting from the article

Quote:

However the DSP brochure shows some out performance for an equal weighted index over the past few years. I rest my case. In India, it was observed that the ‘Nifty 50 Equal Weight’ index has outperformed the Nifty 50 index over longer periods of time, therefore, the scheme may be better than a plain index scheme, but can it beat a diversified equity scheme? Maybe, Maybe not.
What I like? I like the cost at 0.90 and 0.40 (direct) amc charges. Is it something to go ga ga about this? NO. An ETF would charge a similar amount – hey they told me this is not an ETF. Actually I do not know why this is not an ETF. I am wondering why this is not an ETF? Speaking of Sundaram Equal Weight Index fund: It has an expense ratio of 1.8% for regular and 0.9% for direct (as per VR). Bogle will be boggled ! (this line was sent in by a reader)
I also do not know the role of a fund manager in an equal weighted index fund. Should a nice intelligent algorithm do the work? Does the fund manager act more like a compliance person? She has to make sure that the rules are followed diligently? No, no sarcasm here I really do not know and would love it if DSP Blackrock can throw some light.
I do not know what can be the benchmark for a fund like this. Is changing weights not an important part of active management? or since the rules are made upfront this is a passive fund with pre set rules?
I do think that the greater the number of active funds, it will become more and more difficult to generate alpha. If each fund manager changes weights, chooses different companies, and some big funds do closet indexing, will alpha disappear?
So is DSP Blackrock an actively managed fund house or an ETF aggregator?

Quote:

Originally Posted by vinit.merchant (Post 4284787)

I already have got the online access to MFU, thanks to step by step guidelines I received from "The Rationalist".

Hello Vinit , Please tell me how did you get online access to MFU enabled ? how much time did it take ? I have got my CAN and sent them a request for online access via email but haven't received any user id / password so far. Thank you.

Quote:

Originally Posted by spookey (Post 4288635)

I have received the link to create the account from MFU. Please ignore this query.

Quote:

Originally Posted by blorebuddy (Post 4287817)

I do not think it is possible. Once I have tried to switch from Growth to Dividend option that itself was not allowed citing 3 years lock in.

Quote:

Originally Posted by sgiitk (Post 4287878)

Growth & Dividend are treated as separate channels most of the time. So i will consider it quite normal.

Yes. Scheme change or switching is considered as redemption, so no wonder that the request was rejected. Since switching from one scheme to another is treated as redemption, so much that you are even liable to pay tax, if any accrues in the process. Eg. Redemption from liquid fund or STCG in equity schemes.

Regards,
Saket.