[DigitalOne]

Originally Posted by DaptChatterjee

They are adjusting the new investments against redemptions so that the amount invested overseas remains unchanged.

That would work only if the amount that can invested by an AMC got frozen when the overall industry wide limits was reached in 2022 i.e. there is a 'quota' which got implicitly allotted to each AMC in 2022. Only then can an AMC adjust against their own allotted quota. I don't think this is the case.

[civic-dk]

I have my son's and daughter's weddings coming up in next 2-3 years time. I am thinking of creating a sip for the marriage expenses. I believe the mutual fund I choose for this should be a low risk one with moderate returns. Look forward to inputs from esteemed members on what are good mutual fund schemes meeting this criteria.

[skchettry]

Originally Posted by civic-dk

I have my son's and daughter's weddings coming up in next 2-3 years time. I am thinking of creating a sip for the marriage expenses. I believe the mutual fund I choose for this should be a low risk one with moderate returns. Look forward to inputs from esteemed members on what are good mutual fund schemes meeting this criteria.

For such a short duration, I don't think you have much options in the MF space. Debt Funds or the at most very conservative Hybrid fund could be the only options. Expected returns could be in the range of 6-8%.
Regards
Sravan

[srsrini]

Originally Posted by skchettry

For such a short duration, I don't think you have much options in the MF space. Debt Funds or the at most very conservative Hybrid fund could be the only options. Expected returns could be in the range of 6-8%.
Regards
Sravan

Just to be clear, debt funds are also mutual funds. In fact there are more categories in debt funds than equity funds.

Originally Posted by DigitalOne

I still have not understood this. If this is an industry wide limit how some funds are still accepting fresh investments?

ps - An industry wide limit seems anti-competition and unfair to new entrants. Wondering why the AMCs are not objecting to it.

There are industry wide limits - imposed by RBI, and then SEBI put AMC wide limits. There are also two separate categories - funds that invest in securities (like MO does), or funds that invest in ETFs.

BTW, most current transactions in ETFs are exchanges between people - additional units are not getting created. Hence the premium.

[pradkumar]

A new category of debt funds that are taxed at 12.5% if the holding period is more than 24 months.

https://youtu.be/0m6IKieJ8dY?si=WWNTGyZN15B8gxig

I looked at the portfolio of Kotak Income Plus Arbitrage FOF - Direct Plan. AAA securities is 52.85% and SOV is 14.81%. AA and unrated are just 0.32 + 0.17%. The rest 31.97% is held in cash, which means arbitrage. That is fairly safe because it is hedged. We don't have enough info about Macaulay duration that indicates interest rate sensitivity. That is because it has been reconstituted as a new fund.

The expense ratio is 0.10%.

[Ananthang]

Originally Posted by civic-dk

I have my son's and daughter's weddings coming up in next 2-3 years time. I am thinking of creating a sip for the marriage expenses. I believe the mutual fund I choose for this should be a low risk one with moderate returns. Look forward to inputs from esteemed members on what are good mutual fund schemes meeting this criteria.

Since the time frame is too close, best is to keep it in FDs and Post office schemes. World is very uncertain now, due to Donald Duck tariffs. There is no time to recover if there is a slide.

[whitewing]

Originally Posted by pradkumar

...
I looked at the portfolio of Kotak Income Plus Arbitrage FOF - Direct Plan...
The expense ratio is 0.10%.

Please note this is a FOF which holds other mutual funds/securities that match the stated investment goals.
This will imply that the expenses incurred with the underlying MF holding is in addition to the expense ratio stated in this fund.

The current portfolio & underlying expense ratio is as below

• Kotak Corporate Bond Fund - 57.01% of portfolio with Expense Ratio (Direct) 0.34%
• Kotak Equity Arbitrage Fund Direct Plan Growth - 38.79% of portfolio with Expense Ratio (Direct) 0.44%

So, the actual expense ratio will be far higher than the stated 0.10%

[saket77]

Originally Posted by pradkumar

The expense ratio is 0.10%.

Expenses ratio started for all FoFs is in addition to the expenses of the ETF it invests into; so it is actually higher.

[pradkumar]

Thanks! I didn't know that expense ratio of FOF is different. Value research and morningstar.in puts the expense ratio as 0.10%.

Originally Posted by saket77

Expenses ratio started for all FoFs is in addition to the expenses of the ETF it invests into; so it is actually higher.