[adi.mariner]

Hello. I need advice regarding investing in Nifty Index Funds. I was comparing a few of them online and found that the expense ratio is generally 0.1% for all of them. And also all of them follow the Nifty. Would selecting the one with the lowest NAV make sense as I would be allotted the maximum number of units? Should the performance of all funds be the same as they are all passive funds following the Index.

[saket77]

Originally Posted by adi.mariner

Hello. I need advice regarding investing in Nifty Index Funds. I was comparing a few of them online and found that the expense ratio is generally 0.1% for all of them. And also all of them follow the Nifty. Would selecting the one with the lowest NAV make sense as I would be allotted the maximum number of units? Should the performance of all funds be the same as they are all passive funds following the Index.

While investing in index funds, I would mainly look for the AMC with low expense ratio in this scheme as it’s a passive fund. NAV doesn’t matter as the gains would be anyway made as percentage gains (or loss) based on the amount which would be equal to NAV multiplied to units which would give similar result in either case.
The performance should be very similar to the index and any variation is called tracking error. This shouldn’t be a deal breaker in my opinion.

[adi.mariner]

Does it make sense to invest in Large Cap Funds which are actively managed and passive Nifty Index Funds at the same time? This is considering the portfolio of both the active and passive funds would almost be the same (all Blue-chip/Large Cap companies). My thinking is that the expense ratio would be lower for the Index Fund and subsequently the returns higher?

[Maverick Avi]

Are overnight and liquid funds also impacted by interest rates. In the current scenario with low interest rates the returns on both these categories are abysmally low. Can the returns be expected to get higher when interest rates go up in future?

Also have a question around portfolio balancing. Whenever we are considering the percentage of equity and debt fund in our portfolio do we consider the emergency fund parked under overnight/liquid fund under debt percentage?

[SmartCat]

Originally Posted by adi.mariner

Does it make sense to invest in Large Cap Funds which are actively managed and passive Nifty Index Funds at the same time?

A typical largecap fund will have the same stocks as an index fund, but its weightage will be different.

Originally Posted by Maverick Avi

Are overnight and liquid funds also impacted by interest rates. In the current scenario with low interest rates the returns on both these categories are abysmally low. Can the returns be expected to get higher when interest rates go up in future?

Yes, you will see better returns from overnight and liquid funds if interest rates go up. But the "transmission" of higher rates is not instant.

Also have a question around portfolio balancing. Whenever we are considering the percentage of equity and debt fund in our portfolio do we consider the emergency fund parked under overnight/liquid fund under debt percentage?

Not just overnight/liquid funds - consider FDs/EPF/PPF too.

[rachitarora1985]

Dear Friends,

I am a regular investor in Equity MFs and ELSS. However, being a long term investor I never bothered about the NAV calculation when buying MFs until today when I was investing for my wife (so have to be extra careful). I have the following questions when buying equity MFs/ ELSS for less than INR 2 lacs:

1. I wish to take advantage of days when the markets fall 2-3%. So for Equity MFs, should I buy the MFs before 3pm or after 3 pm (or any other cut-off time) so that this fall in market is reflected in the NAV?
2. Similarly, what should be the cut-off time when buying ELSS to take advantage of the fall in market?

Pardon if I am being too greedy and sorry if these are too basic questions.

[Simhi]

Originally Posted by rachitarora1985

I wish to take advantage of days when the markets fall 2-3%. So for Equity MFs, should I buy the MFs before 3pm or after 3 pm (or any other cut-off time) so that this fall in market is reflected in the NAV?

Please go through the following article - https://www.amfiindia.com/investor-c...f-timings.html

Effective from February 1, 2021, the applicable NAV in respect of purchase of units of mutual fund scheme shall be subject to realization & availability of the funds in the bank account of mutual fund before the applicable cut off timings for purchase transactions, irrespective of the amount of investment, under ALL mutual fund schemes

[saket77]

Originally Posted by rachitarora1985

Dear Friends,

I am a regular investor in Equity MFs and ELSS. However, being a long term investor I never bothered about the NAV calculation when buying MFs until today when I was investing for my wife (so have to be extra careful). I have the following questions when buying equity MFs/ ELSS for less than INR 2 lacs:

1. I wish to take advantage of days when the markets fall 2-3%. So for Equity MFs, should I buy the MFs before 3pm or after 3 pm (or any other cut-off time) so that this fall in market is reflected in the NAV?
2. Similarly, what should be the cut-off time when buying ELSS to take advantage of the fall in market?

Pardon if I am being too greedy and sorry if these are too basic questions.

Nothing greedy about investing your own hard earned money

If transferring money to the scheme directly from your bank (ELSS/equity), do it before 3 PM to take advantage of day’s fall. For liquid funds, the cut off is 1:30 PM. Post February ‘21, same day switch from debt or liquid to equity will not get you the advantage. So, make sure you invest ’fresh’ money from your bank account.

Regards.

[Arun_S]

Can anybody advice on the investing in international mutual funds?. Thinking of investing in some money into it.

If possible, please do recommend a good equity international fund.

[alexgv]

Originally Posted by saket77

Nothing greedy about investing your own hard earned money

If transferring money to the scheme directly from your bank (ELSS/equity), do it before 3 PM to take advantage of day’s fall. For liquid funds, the cut off is 1:30 PM. Post February ‘21, same day switch from debt or liquid to equity will not get you the advantage. So, make sure you invest ’fresh’ money from your bank account.

Regards.

I learnt the hard way the cut off time is 12:30 PM for equity funds. i invested at 12:31 PM and the NAV of next day was applicable. Also you cant switch from liquid to equity fund and expect the equity fund allocated the next day. so there is a 2 day gap when you switch.

[saket77]

Originally Posted by alexgv

I learnt the hard way the cut off time is 12:30 PM for equity funds. i invested at 12:31 PM and the NAV of next day was applicable. Also you cant switch from liquid to equity fund and expect the equity fund allocated the next day. so there is a 2 day gap when you switch.

You seem to be confused for some reason. When was it? Could you please elaborate in detail about us transaction like how did you execute this and what was the mode of payment?

[alexgv]

Originally Posted by saket77

You seem to be confused for some reason. When was it? Could you please elaborate in detail about us transaction like how did you execute this and what was the mode of payment?

thanks for the quick response.
I use kuvera.in for mutual fund transactions. The mode of payment was netbanking.

[kedar3223]

I am looking for investing in stocks and mutual funds through an online/app platform. Might also look at commodities in the future. Options found:

Direct MF- groww, zerodha coin, et money, upstox, kuvera, paytm money.
Stocks- zerodha kite, upstox, groww.

Having done my research wrt to the mf i would be investing in, i found them to be available on all the platforms. So is there any platform that stands out interms of charges, money transfer, liquidating and features like stp etc?

In terms of stocks, kite and upstox seem to be more matured compared to groww. They offer more features, commodities and the charges also seem to be on the lower side.

Should i go with a single platform(zerodha/upstox) or separate platforms for both?

https://select.finology.in/app/compa.../upstox/groww#
https://select.finology.in/brokerage.../zerodha/groww

[anandhsub]

I believe the rule has been changed. Cannot take advantage of any market fall. The NAV taken is based on when the asset manager can use the funds. And normally unless you have transferred the money early in the morning the NAV taken will be that of the next day.

[Fx14]

Originally Posted by anandhsub

I believe the rule has been changed. Cannot take advantage of any market fall.

ETFs can be considered for such an objective. They are prone to intra - day swings too.