[SmartCat]

Originally Posted by Jaguar

I thought that PMS would help get better returns since they have better research and time to switch between different investments, which an individual might not. So one is better off taking the help of a fee-only financial advisor to do their own investments?

PMS/equity AIF performance should be compared with that of equity mutual funds, and not individual performance or fee-only financial advisor's performance. That's because we don't have data on the latter.

And there is no difference between PMS performance (after fees) and equity mutual fund performance. You will see some outliers from time to time, but we have one-off outperformers in equity MFs too.

You can check the returns performance of all PMS and AIFs at
https://pmsbazaar.com/

[saket77]

Originally Posted by SmartCat

PMS/equity AIF performance should be compared with that of equity mutual funds, and not individual performance or fee-only financial advisor's performance. That's because we don't have data on the latter.

And there is no difference between PMS performance (after fees) and equity mutual fund performance. You will see some outliers from time to time, but we have one-off outperformers in equity MFs too.

You can check the returns performance of all PMS and AIFs at
https://pmsbazaar.com/

Plus I don't see any special rights/relaxations for a PMS fund manager over a mutual fund manager which can generate more returns for their investors. If at all, I believe any churning of portfolio in PMS and client has to pay for the STCG/ LTCG even if they are still invested which is not in the case of MF. Also, generally PMS expense is higher than MF expenses.

[SmartCat]

Originally Posted by saket77

Plus I don't see any special rights/relaxations for a PMS fund manager over a mutual fund manager which can generate more returns for their investors.

Mutual fund manager has a few constraints/restrictions when compared to PMS manager -

- Equity MF cannot have higher than 10% allocation to a stock. No such restrictions for a PMS manager.
- Most equity MFs play it safe by aligning a significant chunk of portfolio with the index it is being compared with. That's because its performance is closely watched. PMS fund manager can afford to be a bit more adventurous and take more risks.
- Equity MF AUM is usually very large compared to PMS. If an equity MF has Rs. 20,000 cr AUM, he cannot invest 5% (Rs.1,000 cr) in a smallcap stock. It will result in smallcap stock shooting up if he attempts to do that. However, a PMS will usually have 100 cr to 1,000 cr AUM. The fund manager can easily invest 5% or 10% of the assets in a smallcap stock.
- Equity MF has to keep 65% in stocks. PMS manager can reduce stock allocation if he feels markets have topped.

If at all, I believe any churning of portfolio in PMS and client has to pay for the STCG/ LTCG even if they are still invested which is not in the case of MF. Also, generally PMS expense is higher than MF expenses.

Yes, any churning results in client having to pay STCG/LTCG. An equity MF investor does not pay these taxes if fund manager churns stocks.

Fees is the biggest killer of PMS returns.

[saket77]

Originally Posted by SmartCat

Mutual fund manager has a few constraints/restrictions when compared to PMS manager -

- Equity MF cannot have higher than 10% allocation to a stock. No such restrictions for a PMS manager.
- Most equity MFs play it safe by aligning a significant chunk of portfolio with the index it is being compared with. That's because its performance is closely watched. PMS fund manager can afford to be a bit more adventurous and take more risks.
- Equity MF AUM is usually very large compared to PMS. If an equity MF has Rs. 20,000 cr AUM, he cannot invest 5% (Rs.1,000 cr) in a smallcap stock. It will result in smallcap stock shooting up if he attempts to do that. However, a PMS will usually have 100 cr to 1,000 cr AUM. The fund manager can easily invest 5% or 10% of the assets in a smallcap stock.
- Equity MF has to keep 65% in stocks. PMS manager can reduce stock allocation if he feels markets have topped.

Good analytical Points there! Thanks for these lovely posts of yours on investing.

[Fx14]

Originally Posted by SoumenD

Any news on RBI increasing Foreign investment limits for fund houses? I had just started investing in MO S&P500 for some diversification but within less than a year that fund paused any further investments as the limit was breached. Currently investing in Navi Total US FoF but would be more interested if MO S&P 500 resumes taking fresh investments.

MO S&P500 would be re-opening for fresh investments w.e.f. December 1, 2022, as per a communication from the fund house today. You may have received an email from the fund house with the details.

The fund house has however not yet opened up for SIPs / STPs in the scheme.

[aadya]

Originally Posted by Jaguar

I am not able to figure out how to set up a SIP through MFUtility. The bank account number drop-down under the SIP Mandate Registration doesn't work.

MFU has some hidden buttons to be clicked while doing transactions, which are visible only on scrolling down. Try scrolling each and every page before you move to next webpage. Try SPP which is a systematic lumpsum investment that registers only with MFU, whereas SIP mandate has to go through each amc individually.

[SoumenD]

Originally Posted by Fx14

MO S&P500 would be re-opening for fresh investments w.e.f. December 1, 2022, as per a communication from the fund house today. You may have received an email from the fund house with the details.

The fund house has however not yet opened up for SIPs / STPs in the scheme.

Yeah got a mail from MO AMC. Good news this. No SIP is fine as long as lumpsum is allowed however I think the limit would be breached pretty soon. We might not be able to make fresh investments post Dec,22

[DigitalOne]

ICICI Prudential MF doubling down on battered Nykaa

Source

One buyer that has stood out is ICICI Prudential Mutual Fund, India’s second largest. ICICI Prudential MF has snapped up 11.1 million shares in FSN since November 10. That’s roughly 16 percent of the shares sold since the end of the lock-in period.

At the end of October, ICICI Prudential held roughly 2.1 million shares of Nykaa, which would became 12.8 million shares after adjusting for the 5-for-1 bonus share issue. By the end of this month, the mutual fund would have increased the number of shares it holds of the company by nearly 100 percent.

ICICI Prudential AMC may be genuinely bullish about this stock, and doing it in investor interest. However, these kinds of potentially dubious investments are a strong reason why investors lose trust and why investors should stick to Index funds.

SEBI/FinMin should remove capital gains tax for switches, as long as both funds are within the same MF category. SEBI should also enable inter AMC fund switches on platforms like MFUtility. This will give investors a chance to vote with their feet without tax implications, improve transparency, and competition.

[SoumenD]

Was anyone able to do lumpsum in Motilal Oswal S&P 500? It was supposed to allow lumpsum from today. But while trying to do so its still blocked?

Edit: Now the investment option is open. Was able to do lumpsum.

[JediKnight]

Originally Posted by DigitalOne

ICICI Prudential AMC may be genuinely bullish about this stock, and doing it in investor interest. However, these kinds of potentially dubious investments are a strong reason why investors lose trust and why investors should stick to Index funds.

This news gave me the creeps as well. I have lot of money in funds managed by ICICI Prudential AMC. Do you know which funds are buying into Nykaa?

[SmartCat]

Originally Posted by DigitalOne

ICICI Prudential AMC may be genuinely bullish about this stock, and doing it in investor interest. However, these kinds of potentially dubious investments are a strong reason why investors lose trust and why investors should stick to Index funds.

Originally Posted by JediKnight

This news gave me the creeps as well. I have lot of money in funds managed by ICICI Prudential AMC. Do you know which funds are buying into Nykaa?

Relax folks - just do the math. Article says ICICI MF owns 12.8 million shares of Nykaa. That's 1.28 cr shares x Nykaa share price of Rs. 170 equals an investment of Rs. 200 cr

Rs. 200 cr is pocket change for ICICI MF that has atleast 20 different XXL sized equity funds.

[ghodlur]

Experts a query.

I had got the address changed in my Aadhar. Post which I did the KYC at a CAM outlet, had submitted the required documents. However didnt get any acknowledge. Waiting for the address update in MFs held by me. Any idea how long does it take for the KYC validation to happen so that the address changed can reflect in my MF folios?

Had submitted in Nov 2022 and there was a process change since 1st Nov 2022.

[saket77]

Originally Posted by ghodlur

Experts a query.

I had got the address changed in my Aadhar. Post which I did the KYC at a CAM outlet, had submitted the required documents. However didnt get any acknowledge. Waiting for the address update in MFs held by me. Any idea how long does it take for the KYC validation to happen so that the address changed can reflect in my MF folios?

Had submitted in Nov 2022 and there was a process change since 1st Nov 2022.

KYC modification takes more time as compared to fresh KYC registration. There is a process change if you go with Aadhar as the document (OTP verification is required now). Keep checking your sms folder.

[skumare]

I think MFCentral is becoming more user friendly (relative to MFU). However, MFU recently introduced virtual account number (common across all MFs), wherein you confirm a buy order on MFU and do NEFT/RTGS to this account number by 2PM, you will get you same day NAV.

Is there any such facility on MFCentral or is it only next-day NAV that is applicable with Net Banking/UPI payment modes?

[sushantr5]

Originally Posted by SmartCat

....

Just quoting SmartCat post for the notification to him.

In some post SmartCat mentioned that we can use 'Buy Put' as an insurance to the MF portfolio. I am nowhere in Options Trading. But if you could post more information or link to the information how a novice can do this? Then that would be wonderful. Thank you in Advance.