[SmartCat]

Originally Posted by lapis_lazuli

Thanks for your insight. Should I continue the Sip and redeem the direct lump-sum investment I had made? I have a sip (regular) since 2009 and lump sum (direct) periodically. I can park the proceeds in a short term fund, as starting a sip or switching to a better fund, in an upwardly volatile market doesn't make much sense to me personally.

If you are unhappy with the fund's performance, stop SIP and invest elsewhere. But pulling out already invested funds and investing in another fund has 50/50 probability of working out well. Just go back in time and review your previous such decisions.

Taking a closer look at the portfolio, Prashant Jain seems to have loaded this particular mutual fund with PSUs. So it is a contrarian bet, because markets are currently ignoring these stocks.



Why Prashant Jain likes PSUs
https://www.valueresearchonline.com/...ain-likes-psus

[anandhsub]

Originally Posted by lapis_lazuli

Thanks for your insight. Should I continue the Sip and redeem the direct lump-sum investment I had made? I have a sip (regular) since 2009 and lump sum (direct) periodically. I can park the proceeds in a short term fund, as starting a sip or switching to a better fund, in an upwardly volatile market doesn't make much sense to me personally.

I dont have a bias on the mutual fund. But given you are doing lumpsums direct why are you continuing with SIPs in regular funds? That's a straight ~0.5% hit to the annual return.

[Ragul]

Guys,
Due to the really low interest rates on savings, I want to park my funds elsewhere. Mid+long term tenure.
I am just starting my familiarisation with this thread history to learn past advice, but it will take a few days to go back a years worth of posts and I’d like some quick tips on what funds to look out for when I scroll and eyeball past discussions.

Also I also want to learn how to trade in the stock market - which online course do you folks recommend for this? I’m looking for a zero to hero course...

[lapis_lazuli]

Originally Posted by anandhsub

I dont have a bias on the mutual fund. But given you are doing lumpsums direct why are you continuing with SIPs in regular funds? That's a straight ~0.5% hit to the annual return.

Actually I started SIP long back but only after direct schemes started I started lump-sum. Only plain lethargy of going to the CAMS center to manually cancel the SIP is the reason for procrastination....

[Vikalp]

Guys, wish to start a SIP for long term (minimum 15 years), thinking to go for bluechip funds. Is it ok or some other funds you guys could recommend for long term horizon.
Also, need recommendation for lumpsum investment (around 15L) of which 5L should be available to withdraw instantly, as an emergency fund, the rest can be remained invested for long term (~10 years).
Appreciate your advices.

Thank you.

[raksrules]

Couple of questions...

I have 2 folio in ICICI Prudential. The funds are..

ICICI Prudential Balanced Advantage Fund - Growth
ICICI Prudential Medium Term Bond Fund - Growth


We had invested lumps back in 2016 January and the investment has appreciated now. So does it make sense to take out the money, book profits and start either another SIP or invest lumpsum in some mutual fund or may be use the money to buy something that we may be planning (car?).

I don't track performance of mutual funds (my bad) and until now my dad was doing investment for me but no I have started to check everything.

Second question is, that I have few more SIPs going on. How do I analyze those to determine if I should stop the SIP as it is futile investing in the same?

[pradkumar]

Prashant Jain does not talk about the increasing dividends the PSUs are paying to the central government. As the revenues earned by the Central government have dried up, it wants cash-rich public sector undertakings (PSUs) to declare higher dividends this year to reward its shareholders during the ongoing Covid-19 pandemic.

https://economictimes.indiatimes.com...w/78766246.cms

The largest shareholder is the central govt in this case. They have been paying huge dividends to the central govt in the last 2-3 years beyond the immediate covid-19 scenario. This is a disturbing trend. It means that these companies are not keeping aside enough surplus for their own R&D. How will they remain competitive in the long run?

Pradeep

Originally Posted by SmartCat

Taking a closer look at the portfolio, Prashant Jain seems to have loaded this particular mutual fund with PSUs. So it is a contrarian bet, because markets are currently ignoring these stocks.

Attachment 2069364

Why Prashant Jain likes PSUs
https://www.valueresearchonline.com/...ain-likes-psus

[SmartCat]

Originally Posted by pradkumar

The largest shareholder is the central govt in this case. They have been paying huge dividends to the central govt in the last 2-3 years beyond the immediate covid-19 scenario. This is a disturbing trend. It means that these companies are not keeping aside enough surplus for their own R&D. How will they remain competitive in the long run?

These PSUs are mostly involved in energy, mining and power sector businesses. These companies don't do R&D, only capital expenditure. And going by the article, it looks like dividend is to be paid out only after funds have been allocated towards capex. Also, dividend payout is fair towards both majority & minority shareholders. Some of these companies are already offering a yield of 8% at current market price.

But I get what you are saying - cleaning out the coffers is not a very good idea in the long term.

[adimicra]

Originally Posted by Ragul

Guys,
Due to the really low interest rates on savings, I want to park my funds elsewhere. Mid+long term tenure.
I am just starting my familiarisation with this thread history to learn past advice, but it will take a few days to go back a years worth of posts and I’d like some quick tips on what funds to look out for when I scroll and eyeball past discussions.

Also I also want to learn how to trade in the stock market - which online course do you folks recommend for this? I’m looking for a zero to hero course...

start with ultra short term or short term debt funds where you can expect 7-8% (9% if you are lucky) returns before tax. If you hold for more than 3 years, the tax rate comes down drastically compared to FDs. Also, make sure you go for the direct funds to save on expense ratio. I have the following funds in my portfolio -
ABSL Savings (ultra short term)
HDFC short term

Good luck!

[sagarpadaki]

Originally Posted by raksrules

Couple of questions...

I have 2 folio in ICICI Prudential. The funds are..

ICICI Prudential Balanced Advantage Fund - Growth
ICICI Prudential Medium Term Bond Fund - Growth


We had invested lumps back in 2016 January and the investment has appreciated now. So does it make sense to take out the money, book profits and start either another SIP or invest lumpsum in some mutual fund or may be use the money to buy something that we may be planning (car?).

I don't track performance of mutual funds (my bad) and until now my dad was doing investment for me but no I have started to check everything.

Second question is, that I have few more SIPs going on. How do I analyze those to determine if I should stop the SIP as it is futile investing in the same?

Assuming both the ICICI funds have same investment made, I would withdraw from the debt fund. The ICICI balanced advantage is a fund with very good downside protection and above average returns. I would keep it going.

You can track the returns of the fund on value research or morning star etc. Compare it with other funds in the category and see the performance relative to other funds and take a call

[raksrules]

Originally Posted by sagarpadaki

Assuming both the ICICI funds have same investment made, I would withdraw from the debt fund. The ICICI balanced advantage is a fund with very good downside protection and above average returns. I would keep it going.

You can track the returns of the fund on value research or morning star etc. Compare it with other funds in the category and see the performance relative to other funds and take a call

Both funds don't have same investment. Here is the breakup..

Balanced Advantage - Invested: 5L, Current Value: 7.5L
Debt Fund - Invested: 2 L, Current Value: 2.8L.

XIRR (I don't understand this yet) is almost same (.70% difference) for both.


What do you mean when you say "Downside Protection" ? I am new to all this inspite of being 37 years old but till now my dad was investing my money but now I am taking some charge.

[sagarpadaki]

Originally Posted by raksrules

Both funds don't have same investment. Here is the breakup..

Balanced Advantage - Invested: 5L, Current Value: 7.5L
Debt Fund - Invested: 2 L, Current Value: 2.8L.

XIRR (I don't understand this yet) is almost same (.70% difference) for both.


What do you mean when you say "Downside Protection" ? I am new to all this inspite of being 37 years old but till now my dad was investing my money but now I am taking some charge.

Downside protection is how much will the fund value(NAV) falls when the index against which it is benchmarked drops during downward market(bear phase). A fund with good downside protection falls less when the market falls. On the flip side, it does not shoot up when the market is in bull phase. The Balanced advantage is one such fund

I would suggest you to educate yourself on the basics since now you will be taking charge.

[ghodlur]

Experts,

There are some dud funds in my portfolio - 3 equity funds and 2 for debt
Equity:
1) Franklin India Equity Fund (formerly Prima plus fund)
2) Franklin India Opportunities fund
3) ICICI Pru Value Discovery fund

Debt:
1) Franklin Ultra short term
2) Nippon Ultra Short term

I am planning to redeem all of the above since they have been oscillating between positive and negative returns for too long. The returns too have been miniscule. I had SIP in these funds and during restructuring portfolio had stopped the SIP. If I redeem where do I invest the corpus? These funds are actually not part of any goal and were meant for support only. The devlish plan coming to me is use this for a new car.

[Vikalp]

Guys need advice for funds with the sole goal of capital appreciation for long term (15+ years) via SIP.
Thinking to go for Axis Bluechip Fund or any recommendations from the experts will be highly appreciated.

Thank you.

[DigitalOne]

Update on the 6 Franklin Templeton debt funds :

Karnataka HC rules consent of unit holders needed

The Karnataka high court on Monday ruled that Franklin Templeton India’s decision to wind down its suite of six debt schemes required a simple majority consent of unit holders.

The court ordered that trustees should not take any action on the winding up of the six schemes till a simple majority consent of unit holders is obtained. This means that for any further winding up actions, they would need a consent of unit holders.

However, considering that the Supreme Court is on vacation, the operation of the order has been stayed for six weeks to give time to Franklin Templeton India to appeal the order. Till then status quo on refund, redemptions should be maintained, the Karnataka high court ruled.

Source

As an affected investor, I have mixed feelings on this judgement. The court has rightly said unit holders consent needs to be taken before taking decision to change the fundamental attributes of a scheme.

However, FT is certain to appeal to the SC and that will prolong the process.

If SC cancels the winding up process (in effect, making the funds again as open ended), it would lead to huge redemptions on day 1. This will consequently crash the underlying bonds, and investors will have to bear a huge loss, not only on these 6 funds but funds (of other AMCs also) which hold these bonds. Definitely not in any investors benefit.

SC needs to come up with some compromise formula on these lines:

- allow continuation of the 'controlled' winding up
- Put a fine on FT, for example 5% of AUM , to be added to the funds
- Make these as 0 expense funds; which will directly affect the FT brass.

This in my opinion will be a good punishment for FT, and investors will also suitably compensated for the trouble.