The Mutual Funds Thread

C300 · 31st January 2022, 15:23

Looks like some changes for the funds investing in overseas stocks. Anyone knows whats the reason for this?

"PPFAS Mutual Fund has stopped accepting inflows into PPFAS Flexicap Fund with effect from 2 February 2022. This moves comes after the Securities and Exchange Board of India directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks.

Read more at:
https://economictimes.indiatimes.com...campaign=cppst

DaptChatterjee · 31st January 2022, 15:36

Quote:

Originally Posted by C300

"PPFAS Mutual Fund has stopped accepting inflows into PPFAS Flexicap Fund with effect from 2 February 2022. This moves comes after the Securities and Exchange Board of India directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks.

THE ET article itself provides the reason-

Quote:

The notice was sent by Sebi after the Indian mutual fund industry crossed the mandated limit of $7 billion for overseas investments.

As per PPFAS twitter handle, they will keep on accepting existing SIP's.

rayjaycleoful · 31st January 2022, 20:28

Hi team,

I am unable to pause my "Franklin India Feeder - Franklin U.S. Opportunities Fund" SIP on Zerodha (no option to pause, can pause all other SIPs).
I am pretty sure I've paused it multiple times in the past but there's some "AMC Fund" sticker on it this time which I haven't seen before.

edit: after deleting the SIP and re-adding, all is per normal. Strange :S

manavdotcom · 31st January 2022, 21:45

Quote:

Originally Posted by SmartCat

CRISIL does not rate mutual funds

Incorrect info !

https://www.crisil.com/en/home/what-...f-ranking.html

ashvek3141 · 31st January 2022, 22:23

Quote:

Originally Posted by C300

Looks like some changes for the funds investing in overseas stocks. Anyone knows whats the reason for this?

"PPFAS Mutual Fund has stopped accepting inflows into PPFAS Flexicap Fund with effect from 2 February 2022. This moves comes after the Securities and Exchange Board of India directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks.

Read more at:
https://economictimes.indiatimes.com...campaign=cppst

Zerodha has deleted my FORTNIGHTLY SIP in PPFAS. However, they haven’t deleted the MONTHLY SIP. Instead, they converted the Monthly SIP into an AMC SIP.

What does this mean exactly? I am a little confused now. Will the deleted SIP be stopped till SEBI increases the limit? Or will it be deleted permanently and I will have to create a new SIP once the limit is increased?

Please advice.

FURY_44 · 1st February 2022, 09:33

So I was using Paytm Money to invest in a couple of mutual funds from different fund houses, I do a manual SIP and it used to take at least 3-4 days for the units to get credited (3rd or 4th day NAV) even if I had placed an order during market hours. Yesterday, I tried investing directly from the fund house website and the units got credited the same day with same day NAV.

No more Paytm Money for investing.

vijaykr · 1st February 2022, 09:46

I would recommend checking out https://www.mfuindia.com/ as a one-time registration here allows you to transact in almost all MFs available. This is a shared infrastructure setup by the Indian AMCs. Below is an extract from their website->corporate overview.

MF Utilities India Pvt Ltd (MFUI) is the Mutual Fund Industry’s “Shared Services” initiative formed by the Asset Management Companies (AMCs) of SEBI registered Mutual Funds under the aegis of AMFI, with an objective of investor empowerment, distributor / RIA convenience, consolidation of information to various agencies, operational efficiency for RTAs and benefits to AMCs, thereby benefitting all stakeholders in the industry. The prime objective of MFUI is to consolidate all “Transaction Requests” received by the industry from multiple sources and transmit it to the “Fulfiller” of the request (Transfer Agent), thereby bringing in operational efficiency by reducing multiplicity and duplication of activities. Towards achieving this objective, MFUI has developed the Portal, MF Utility (MFU), which operates as a “Transaction Aggregating System” for transactions in Mutual Funds.

MF Utility (MFU) is an innovative initiative of the Indian Mutual Fund Industry that brings significant benefits to all stakeholders, i.e. Investors, Distributors, RIAs and Asset Management Companies, by leveraging technology, MFU will bring many conveniences to the investors and distributors /RIAs and allow Mutual Funds to significantly enhance their reach and presence in the country to further the goals of retail penetration. MFU will also help remove duplicities in the system and reduce the inherent risks in the industry.

MFUI is equally owned by the AMCs of SEBI registered Mutual Funds in India.

Personally I have been using their website https://www.mfuonline.com/ for some years now as I have found it most convenient since there is a single window to access Direct plans of all participating AMCs.

DaptChatterjee · 1st February 2022, 10:02

Quote:

Originally Posted by rayjaycleoful

Hi team,

I am unable to pause my "Franklin India Feeder - Franklin U.S. Opportunities Fund" SIP on Zerodha (no option to pause, can pause all other SIPs).
I am pretty sure I've paused it multiple times in the past but there's some "AMC Fund" sticker on it this time which I haven't seen before.

Quote:

Originally Posted by ashvek3141

Zerodha has deleted my FORTNIGHTLY SIP in PPFAS. However, they haven’t deleted the MONTHLY SIP. Instead, they converted the Monthly SIP into an AMC SIP i.e., regular SIP.

It appears that Zerodha SIPs are technically lumpsum investments (The AMC statement and CAMS statement would show them as lumpsum).
Link1

Now that SEBI has come out with restrictions on new investments for international funds but allowed the SIPs to continue, Zerodha had to convert the Zerodha SIPs into AMC SIP.
Link2

Quote:

Originally Posted by rayjaycleoful

edit: after deleting the SIP and re-adding, all is per normal. Strange :S

You may not be able to restart the SIP till SEBI increases the limit of foreign investment by Fund houses.

Quote:

Originally Posted by ashvek3141

What does this mean exactly? I am a little confused now. Will the deleted SIP be stopped till SEBI increases the limit? Or will it be deleted permanently and I will have to create a new SIP once the limit is increased?

You can start a new SIP before 3pm today (12/1pm to be on safer side).

ashvek3141 · 1st February 2022, 12:05

Quote:

Originally Posted by DaptChatterjee

You may not be able to restart the SIP till SEBI increases the limit of foreign investment by Fund houses.

You can start a new SIP before 3pm today (12/1pm to be on safer side).

Thanks for your response.

Any idea what will happen to the investments of my existing SIP in PPFAS i.e. the earlier WEEKLY SIP?

DaptChatterjee · 1st February 2022, 12:23

Quote:

Originally Posted by ashvek3141

Any idea what will happen to the investments of my existing SIP in PPFAS i.e. the earlier WEEKLY SIP?

Ideally, the monthly SIPs and weekly SIPs should be under a single folio number. These should reflect in the statement from the AMC. Same folio or not, your money will stay invested unless you withdraw.

batish · 1st February 2022, 19:03

Can somebody tell me what should be taken into account while investing in Index Mutual Funds except for expense ratio and exit load? Obviously, CAGR too.

For example: There are several Nifty Index Funds like Nifty Next 50. So what can these be compared in as the CAGR will almost be the same in these. Only the expense ratio should be considered then?

Fx14 · 1st February 2022, 20:58

Quote:

Originally Posted by batish

Can somebody tell me what should be taken into account while investing in Index Mutual Funds except for expense ratio and exit load? Obviously, CAGR too.

You can consider the 'Tracking error' too. This is the variance in tracking the underlying index.

ghodlur · 2nd February 2022, 08:16

Experts need some advice.

As many of us are having SIP's and it is also a known fact that the although the SIP amount is deducted from the savings account on the day of the SIP, the units allotted aren't of the SIP date but of the date when the Mutual Fund house receives the money. Few queries related to this:

1. When the money is deducted from the account on the SIP date why isn't the amount recd by MF house the same day when the NEFT/RTGS/IMPS are credited within hours. What's the logic of MF house to allot the units for a different date than the SIP date? Isn't this a loss for the investor? For eg on the SIP date is the markets are lower a few additional units will be allotted as compared to the day of unit allocation when the markets would be higher.

2. Many a times its happened with me that the amount is not deducted from my savings account for weeks together although the SIP's are scheduled SMS is recd from the savings bank. I have to follow up with the MF house and I have been told that the request for amount transfer by MF house has been rejected by Banks. Why is there such discrepancy when normal money transfers happen smoothly.

I intend to write to SEBI and AMFI and individual MF houses where I have SIP's registered to ask for the resolution. Does this sound good or it would be a waste of time and energy?

download2live · 2nd February 2022, 09:08

I am looking at a period of 10 years and want to put in 15k a month into a SIP.
The idea is to create some funds to draw upon to pay for college.
Essentially a fund for my kids.
What could be an ideal mix? Any suggestions? I am not looking for short term performance.

dmplog · 2nd February 2022, 11:04

Quote:

Originally Posted by download2live

I am looking at a period of 10 years and want to put in 15k a month into a SIP.
The idea is to create some funds to draw upon to pay for college.
Essentially a fund for my kids.
What could be an ideal mix? Any suggestions? I am not looking for short term performance.

You can look at breaking 15K into 3 buckets of 5K each. And in my view, following could be distribution (pick 1 in each category)
1. One of the Nifty or Sensex Index Fund (e.g. HDFC Sensex ETF, UTI/SBI/HDFC Nifty ETF, or Kotak / Nippon NV 20 ETF )
2. FlexiCap, Multi-Cap: Canara Robeco Emerging Equities , PGIM Ind Flexi Cap, UTI Flexi Cap
3. Hybrid Aggressive, just for diversification: Quant Absolute , ICICI Pru Eqt & Debt

I use Valueresearch to select and shortlist funds:

Fund Selector:
https://www.valueresearchonline.com/...urns-long-term

Fund Compare: https://www.valueresearchonline.com/funds/fund-compare/

31st January 2022, 15:23	#4006
C300 BHPian Join Date: May 2009 Location: Pune, Melbourne Posts: 771 Thanked: 1,032 Times	Re: The Mutual Funds Thread Looks like some changes for the funds investing in overseas stocks. Anyone knows whats the reason for this? "PPFAS Mutual Fund has stopped accepting inflows into PPFAS Flexicap Fund with effect from 2 February 2022. This moves comes after the Securities and Exchange Board of India directed mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. Read more at: https://economictimes.indiatimes.com...campaign=cppst
	() Thanks

31st January 2022, 20:28	#4008
rayjaycleoful BHPian Join Date: Aug 2012 Location: Gurgaon Posts: 448 Thanked: 571 Times	Re: The Mutual Funds Thread Hi team, I am unable to pause my "Franklin India Feeder - Franklin U.S. Opportunities Fund" SIP on Zerodha (no option to pause, can pause all other SIPs). I am pretty sure I've paused it multiple times in the past but there's some "AMC Fund" sticker on it this time which I haven't seen before. edit: after deleting the SIP and re-adding, all is per normal. Strange :S Last edited by rayjaycleoful : 31st January 2022 at 20:36.
	() Thanks

1st February 2022, 09:33	#4011
FURY_44 BHPian Join Date: Sep 2018 Location: KA 04/TN 23 Posts: 289 Thanked: 1,560 Times	Re: The Mutual Funds Thread So I was using Paytm Money to invest in a couple of mutual funds from different fund houses, I do a manual SIP and it used to take at least 3-4 days for the units to get credited (3rd or 4th day NAV) even if I had placed an order during market hours. Yesterday, I tried investing directly from the fund house website and the units got credited the same day with same day NAV. No more Paytm Money for investing.
	() Thanks

1st February 2022, 09:46	#4012
vijaykr BHPian Join Date: Jul 2021 Location: Bangalore Posts: 145 Thanked: 627 Times	Re: The Mutual Funds Thread I would recommend checking out https://www.mfuindia.com/ as a one-time registration here allows you to transact in almost all MFs available. This is a shared infrastructure setup by the Indian AMCs. Below is an extract from their website->corporate overview. MF Utilities India Pvt Ltd (MFUI) is the Mutual Fund Industry’s “Shared Services” initiative formed by the Asset Management Companies (AMCs) of SEBI registered Mutual Funds under the aegis of AMFI, with an objective of investor empowerment, distributor / RIA convenience, consolidation of information to various agencies, operational efficiency for RTAs and benefits to AMCs, thereby benefitting all stakeholders in the industry. The prime objective of MFUI is to consolidate all “Transaction Requests” received by the industry from multiple sources and transmit it to the “Fulfiller” of the request (Transfer Agent), thereby bringing in operational efficiency by reducing multiplicity and duplication of activities. Towards achieving this objective, MFUI has developed the Portal, MF Utility (MFU), which operates as a “Transaction Aggregating System” for transactions in Mutual Funds. MF Utility (MFU) is an innovative initiative of the Indian Mutual Fund Industry that brings significant benefits to all stakeholders, i.e. Investors, Distributors, RIAs and Asset Management Companies, by leveraging technology, MFU will bring many conveniences to the investors and distributors /RIAs and allow Mutual Funds to significantly enhance their reach and presence in the country to further the goals of retail penetration. MFU will also help remove duplicities in the system and reduce the inherent risks in the industry. MFUI is equally owned by the AMCs of SEBI registered Mutual Funds in India. Personally I have been using their website https://www.mfuonline.com/ for some years now as I have found it most convenient since there is a single window to access Direct plans of all participating AMCs.
	() Thanks

1st February 2022, 19:03	#4016
batish BHPian Join Date: Jan 2017 Location: - Posts: 840 Thanked: 2,450 Times	Re: The Mutual Funds Thread Can somebody tell me what should be taken into account while investing in Index Mutual Funds except for expense ratio and exit load? Obviously, CAGR too. For example: There are several Nifty Index Funds like Nifty Next 50. So what can these be compared in as the CAGR will almost be the same in these. Only the expense ratio should be considered then?
	() Thanks

2nd February 2022, 08:16	#4018
ghodlur Senior - BHPian Join Date: Sep 2009 Location: Thane Posts: 6,091 Thanked: 4,373 Times View My Garage	Re: The Mutual Funds Thread Experts need some advice. As many of us are having SIP's and it is also a known fact that the although the SIP amount is deducted from the savings account on the day of the SIP, the units allotted aren't of the SIP date but of the date when the Mutual Fund house receives the money. Few queries related to this: 1. When the money is deducted from the account on the SIP date why isn't the amount recd by MF house the same day when the NEFT/RTGS/IMPS are credited within hours. What's the logic of MF house to allot the units for a different date than the SIP date? Isn't this a loss for the investor? For eg on the SIP date is the markets are lower a few additional units will be allotted as compared to the day of unit allocation when the markets would be higher. 2. Many a times its happened with me that the amount is not deducted from my savings account for weeks together although the SIP's are scheduled SMS is recd from the savings bank. I have to follow up with the MF house and I have been told that the request for amount transfer by MF house has been rejected by Banks. Why is there such discrepancy when normal money transfers happen smoothly. I intend to write to SEBI and AMFI and individual MF houses where I have SIP's registered to ask for the resolution. Does this sound good or it would be a waste of time and energy?
	(1) Thanks

2nd February 2022, 09:08	#4019
download2live Senior - BHPian Join Date: Feb 2010 Location: - Posts: 1,155 Thanked: 1,218 Times	Re: The Mutual Funds Thread I am looking at a period of 10 years and want to put in 15k a month into a SIP. The idea is to create some funds to draw upon to pay for college. Essentially a fund for my kids. What could be an ideal mix? Any suggestions? I am not looking for short term performance.
	() Thanks

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