Mutual Fund Queries

Can you tell me the drawbacks of direct investing in a MF versus Regular Plans

I am 24 years old and have been tracking the markets, mutual funds for past one year. Now I have decided to invest in a mutual fund through SIP. I want to invest in a balance fund and have filtered down to three funds - a) Tata Balanced Fund Regular Plan - Growth, b)ICICI Prudential Balanced Fund Regular Plan - Growth, c) HDFC Balanced Fund Regular Plan - Growth. If I intend to invest in the above funds directly, what will be the drawbacks instead of choosing regular plan other than the higher expenses? And If you were to choose one of the above funds to start invest now which would you choose?

Feb 10, 2016 by Gopi Dinesh S, Trichy | Mutual Fund

We should clarify that, expenses are lower in direct plans compared to regular plans. As a result, direct plans give slightly higher returns than regular plans. Whether you invest in direct plans or regular plans... Read More

Is it a good time to invest in gilt funds

Is it a good time to invest in gilt funds?

Feb 9, 2016 by Malhotra, | Mutual Fund

Thanks for writing to us. Following two researched articles can really help in answering your... Read More

Should I continue with Canara Robeco Equity Diversified Fund SIP

Since 2013 August, I have been investing 5000 Per Month in the scheme Canara Robeco Equity Diversified Fund - Growth. My investment horizon is 5+ Years but these days, I am noticing loss in the invested amount. Should I continue with the same or switch to other better performing fund, please suggest?

Feb 8, 2016 by Vijay, Ghaziabad | Mutual Fund

Please note that we do not give fund specific suggestion. Due to market volatility, it is possible that SIPs or lumpsum investments might show negative returns. However, the volatile markets are also a good... Read More

Is Mutual Fund Retirement Plans suitable for you

Refer your article mentioned above. You have made a statement that the returns on investments are not tax free, unlike some other products like PPF. This is misleading. Beyond 12 months for equity oriented options and beyond three years for DEBT options the returns are tax free. Request you to look into the matter?

Feb 5, 2016 by Sanjay Relekar, Ahmedabad | Mutual Fund

We clarified the taxation aspect in details in the section Tax Treatment of Mutual fund Retirement Plan. Equity funds are tax free after 12 months, but non equity funds are taxed at 20% with indexation benefit... Read More

Please advise on selection and tenure of Mutual Fund Schemes for SIP investing

I started Monthly SIP from 10-01-2016 for Rs. 2K each in following schemes - 1. ICICI Prudential Balanced Advantage Fund, 2. Birla Sun Life Frontline Equity Fund, 3. HDFC Equity Fund, 4. HDFC Midcap Opportunities Fund, & 5. L&T India Value Fund. Please advise on selection & tenure to continue 3-5-10 Yrs?

Jan 28, 2016 by Vivek, Karad | Mutual Fund

You have taken the right decision to invest in these mutual fund schemes through SIPs. Given the volatility in equity markets, you will be able to average out your cost of purchase and get excellent returns on... Read More

Please provide risk comparison and investment style for Equity Income Category Schemes

Many MF schemes launched in 2015 under Equity Income category i.e. equity aprx 25 to 45%, plus Arbitrage making it 65% and rest in debt. Kindly give detailed analysis of these schemes with respect to risk comparison and investment style(max/min) in debt and equity?

Jan 28, 2016 by Ramesh B, Vadodara | Mutual Fund

These funds are well suited for investors with moderate risk tolerance levels and also offer tax efficiencies. The arbitrage and debt portions serve to moderate the volatility, while the arbitrage portion ensures... Read More

I have started an SIP of 3500 last month and planning to increase it up to 10000 within next month

I have started an SIP of Rs. 3500 since last month and planning to increase it up to 10,000 within next month. I am looking at long term aspect i.e at least 5 years. My portfolio details are following - Already invested from last Month, ELSS - Birla Sun Life Tax Relief 96 (G) 1000, Large Cap - ICICI Prudential Focused Bluechip Equity Fund (G) 1500, Hybrid - Reliance Retirement Fund - Wealth Creation Scheme (G) 1000, Multicap - Motilal Oswal MOSt Focused Multicap 35 Fund - Direct Plan (G) 2000, (MOSt starting from 28/2/16). Planning to Invest in coming Month - MidCap - BNP Paribas Midcap Fund - Direct Plan/Mirae Asset Emerging Bluechip Fund 2000, ELSS - Axis Long term Equity 2000, I am thinking to switch from Reliance Retirement Fund. Would that be a right decision? (I know it is too early, to switch from NFO). How my remaining fund selection looks like? Is it well balanced? Any change is required? Should I look after balanced or Debt oriented fund as well? Secondly, I am thinking to do do lumsum investment around 10-20K in Motilal Oswal MOSt Shares NASDAQ - 100 ETF Fund. would that be wise decision? Brief about me, I am 33 years old and have 3 year child?

Jan 28, 2016 by Madhu, Pune | Mutual Fund

Since you are young and have a young family, equity is the ideal asset class for you. As you grow older, you can gradually start shifting your asset allocation to debt by investing in balanced and debt funds. As per... Read More

Should I continue my SIP in HDFC Top 200 Fund for long term

1. I have Rs. 2000 SIP in HDFC Top 200 Growth(D) since Oct 2010. My horizon is of next 10 years. Should I continue with it? 2. If I put some lump sum in the same above MF say 5000 every 3 months, then does it affect the compounding behaviour of the fund. Means basically will putting lump sum amounts in between time periods affect the compounding concept?

Jan 28, 2016 by Hitesh, Mumbai | Mutual Fund

HDFC Top 200 Fund is the most popular large cap equity mutual fund scheme in this country. It has nearly Rs 12,500 crores of assets under management. The fund has given in excess of 20% compounded... Read More

Can you suggest me good Mutual Fund SIPs for seven eight years

Can you suggest me a good MF SIP for 7-8 Years, which gives a good amount of return. Can you suggest me a good MF SIP for 10-15 years which gives a good retrun, please also suggest ELSS schems too?

Jan 21, 2016 by Amit Kumar Pandey, Delhi | Mutual Fund

Since you have a long investment horizon you should select equity funds that have performed consistently well. Consistent performers give superior returns in different market conditions. You can select... Read More

I want to start a new SIP from ICICI Bank without disturbing the SIP from HDFC Bank

Currently my SIP are deducted from HDFC Bank and KYC details also shows HDFC Bank only. Now I would like to start new SIP with ICICI Bank without disturbing the existing SIP from HDFC Bank. Is this possible or I have connect all new SIP from HDFC only?

Jan 21, 2016 by Uttam, Kolhapur | Mutual Fund

Yes you can start a SIP from your ICICI Bank account, without disturbing your existing SIP which is being debited from your HDFC bank account. Firstly, you have to identify the mutual fund scheme where you will... Read More