Investment, Financial Planning, Mutual Fund & Income Tax Queries

How to manage my SIPs if they are not doing well and market is also very high

I have one question: Lets say I started investing in 1 Mutual with Rs. 5000 month keeping a time horizon of 15 years. But after say 5 years, (my investment becomes 3 Lakh after 5 years), I find that the fund is not performing well, e.g. as compare to its peers, or change in Market trends (other category fund performing well), etc. Now as a SIP investor who want to remain invested for 15 years what possible approaches, I can take? I am asking this as fund value invested (3 lakh) is pretty high now, so re-investing via SIP will not make sense, and on the other hand if market is high than Lumpsum also will not make sense. Please suggest?

Aug 16, 2016 by Mohit, Noida | Mutual Fund

Thanks for writing to us. While reading through your query, we found that we also need to address some basic things about mutual fund and SIP investing. Therefore, read each and every point which not only... Read More

Is it right as I have started daily STP from liquid to equity fund for next 10 years for my client

I have started daily STP plan for my client, we do SIP in liquid fund & Transfer 1000 daily in equity is it right step for 10 years holding period, I feel instead of 12 NAV I will get almost 250 NAV for average?

Aug 16, 2016 by Bhamesh Kamble, Navi Mumbai | Mutual Fund

Systematic investing is all about rupee cost averaging and the method you have chosen is probably the best way to maximise this averaging. While the method is good, you must do back testing using our this... Read More

Can you please let me know if my fund selection is fine for investing over next 15 years

I am planning to invest in the following schemes for next 15 years. Please do review the same and provide me with your expert answer. PPF - 5000 (15 years), SBI Blue Chip Direct (G) - 5000 (15 years), SBI Midcap Magnum Direct (G) - 5000 (15 years), Franklin India Smaller Companies Direct (G) - 10000 (15 years), HDFC Balanced Direct (G) - 10000 (15 years), ICICI Prudential Value Direct (G) - 10000 (15 years). Please let me know if there are any other funds or should I invest in sector oriented funds considering that I have an investment horizon of 15 years?

Aug 16, 2016 by Muthuraman, Thiruvanthapuram | Financial Planning

Your idea of investing in PPF and mutual funds over 15 years is a wise decision. The funds selected by you are all good performing and spread over large cap, diversified, midcap and balanced funds... Read More

What would be the tax if I invest a lump sum amount for less than 3 years in debt funds growth option

I want to know if I invest a lump sum amount less than 3 years on debt / growth oriented scheme maturity value taxable on the hands of investor? if so, at what percentage?

Aug 16, 2016 by Biswaranjan Das, | Taxation

Thanks for writing to us. We have received and replied to many similar queries to many visitors on our website. Request you to go through the following which we are sure will reply your query fully... Read More

Can I and my wife invest in the same folio of an AMC using eKYC

As per SEBI rule after eKYC one can invest in Mutual fund online upto Rs. 50000 per financial year. In case of Joint holding (Two investor either or survivor mode) can we invest upto 1 LAC in a fund house. Where both have done eKYC mode of Holding in one folio: (Husband first holder, wife 2nd Holder) and in another folio (Wife 1st Holder and Husband 2nd Holder)?

Aug 16, 2016 by Arnab De, Kolkata | Mutual Fund

Thanks for writing to us. You and your wife can not invest in the same folio if the first holder’s name changes. For example – you are the first holder and your wife the second holder in a folio, then you can... Read More

In which AMCs other than Edelweiss the prepaid SIP mode of investment is available

In which AMCs, other than Edelweiss, the prepaid SIP mode of investment is available?

Aug 16, 2016 by Pranav Kumar Tewari, Patna | Mutual Fund

To the best of our knowledge, there is no other AMC which is offering exactly the same features and works the same way as prepaid SIP of Edelweiss Mutual Fund. However few AMCs also offers some... Read More

Is it possible to close SIP before the committed time frame

Is it possible to close SIP before the committed time frame? For example if I commit to do SIP for 10 years and unfortunately I don't have funds for SIP after 8 years. What should happen?

Aug 16, 2016 by Bharat, Gurgaon | Mutual Fund

Yes, you can close your SIPs any time you wish and it has nothing to do with the time period you have chosen. Just writing a letter with details of folio number, scheme name and the amount to the respective... Read More

If investor invest Rs. 10 Lakhs in a balanced fund what would be the value after 3 years post SWP of Rs. 7500 per month

If investor invest Rs. 1000000 on balanced fund with SWP OF Rs. 7500 pm and withdraw total amount after 3 years what will be his refund value?

Aug 16, 2016 by Biswaranjan Das, | Mutual Fund

It is very difficult to tell what would be the total corpus at the end of 3 years after withdrawing Rs. 7500 per month through SWP route from a balanced fund wherein the investor has invested Rs. 10 Lakhs... Read More

I was under the impression that SIP in ELSS funds had been disallowed by SEBI

I was under the impression that SIP in ELSS funds had been disallowed by SEBI?

Aug 12, 2016 by Devinder Singh Dhaliwal, | Mutual Fund

Glad that you get to know from us that SIP in ELSS fund is allowed. In fact, SIP is allowed in all the open ended funds irrespective of fund category. SIP in ELSS is very popular amongst retail investors... Read More

Can you review my SIP portfolio and tell me whether I am going on the right direction

Can you review my portfolio and tell me whether I am going on right direction Below is my SIP under different scheme. Birla Sun Life Frontline Equity Fund (G) - 2000, ICICI Prudential Focused Bluechip Equity Fund (G) - 1000, ICICI Prudential Value Discovery Fund - Regular Plan (G) - 1000, Mirae Asset Emerging Bluechip Fund (G) - 1000, Tata Balanced Fund - Regular Plan (G) - 1500, Canara Robeco Emerging Equities (G) - 1000, DSP BlackRock Micro Cap Fund - Regular Plan (G) - 1000, I am going to continue there sIP's more than 10 years kindly suggest? And if I want to do more investment should I go with the same SIP's or different?

Aug 12, 2016 by Deepak, Kalyan | Mutual Fund

Your fund selection for doing long term SIPs is good. The selection is well spread into top performing balanced, large cap, mid & small cap and diversified equity funds. We have reviewed some of these funds... Read More