Investment, Financial Planning, Mutual Fund & Income Tax Queries

I want to understand reasons behind the magnitude of difference of NAV Regular Vs Direct plan

I took two well known Large cap funds, the difference in the NAV of Regular Vs Direct plan of Franklin India Blue Chip Fund - Growth is Rs. 8.04. The difference in the NAV of Regular Vs Direct plan of HDFC Top 200 Fund - Growth is Rs. 5.4. Is the magnitude of difference in the NAV (Regular Vs Direct plan) only because of the Expense ratio Franklin India Blue Chip Direct Fund - GROWTH is 1.36% and Franklin India Blue Chip Direct Fund - Growth is 1.60%. Welcome your help in understanding reasons behind the magnitude of difference in the NAV (Regular Vs Direct plan)?

Dec 5, 2015 by Khushroo Satarawala, Mumbai | Mutual Fund

The difference in NAVs of regular plans and direct plans are due to expense ratio only. Structure of expenses are different for different AMCs, as you yourself have observed by comparing the expense ratios of... Read More

I want to invest about 3 to 4 lacs in Debt funds or Fixed Deposits

I want to invest about 3 to 4 lacs as Debt Fund or FD, please advice me in which I should invest by return of mail?

Dec 5, 2015 by kanaiyalal panchal, | Mutual Fund

You should be clear about your investment objectives and timeframe. FDs will give you assured returns, while Debt funds cannot give you assured returns. However, debt funds offer a wider array of... Read More

At present shall I continue investing in Sahara Credit Cooperative Society Ltd

At present shall I continue investing in sahara credit cooperative society Ltd.?

Dec 1, 2015 by Harpreet Singh Ahluwalia, Bilaspur | General

The Sahara Credit Cooperative Society is not regulated by SEBI or RBI. About a year back, the liability of the society was more than Rs 35,000 crores. Sahara had said back then that, they expected to bring... Read More

Closure of SIP submitted at CAMS Nagpur but not received any message

I submitted application form for close my SBI gold fund SIP, folio no. 12213491 through CAMS Nagpur but not receive any message?

Nov 28, 2015 by Mahendra Kumar Thepey, Betul | Mutual Fund

You can know your transaction status either through the online query form of CAMS or by calling their toll free number 1800-200-2267 or 1800-419-2267. You will find the online form and contact details by... Read More

Does Mutual Fund Monthly Dividend Option gives LESS Dividend and has LESS NAV

Based on the data provided in the Reliance AMC Factsheet-October-2015.pdf If I have 1000 units invested in Reliance Arbitrage Advantage fund - Monthly Dividend Option from Aug 2014 to Sept 2015, I get a dividend of Rs. 740 and the NAV as on 30 Sept 2015 is Rs. 10.4777. If I have 1000 units invested in Reliance Arbitrage Advantage fund - Dividend Option from Aug 2014 to Sept 2015, I get a dividend of Rs. 950 and the NAV as on 30 Sept 2015 is Rs. 11.7813. We all know that in Mutual funds if MORE Dividend is declared then the NAV drops to a greater extent as a long term investor in Reliance Mutual fund schemes. I need help to understand WHY is the investor getting more DIVIDEND and more NAV in the Dividend option as compared to the Monthly Dividend option of the same fund. Is it ONLY because of the Power of Compounding? Is Reliance AMC applying a EXTRA CHARGE on the investors who subscribe to the Monthly Dividend option as compared to the Dividend option?

Nov 18, 2015 by Khushroo Satarawala, Mumbai | Mutual Fund

Please note that Reliance Mutual Fund or for that matter any AMC does NOT charge EXTRA EXPENSES to investors subscribing to different options. Let us now try to understand why the dividend amounts... Read More

Where to invest in lieu of Bank Recurring Deposit to avoid TDS

I am searching for some investment options for my parents where monthly investment possible is 1lac rupees. Presently the said amount is being invested in RD which is leading to deduction of TDS. Can you suggest some other options other than insurance plans where the tax deductions can be less?

Nov 13, 2015 by Dwarkesh, Gwalior | Taxation

You have not mentioned the risk profile of your parents, their investment goal and time horizon. Assuming they are looking for an alternative to recurring deposits, you can consider investing in Long Term Income... Read More

Whether ETF is a good investment option

I have been hearing about ETFs in news everywhere these days, want to know is it a good option for investment as per your experience & seeing the past? Also I want to start investing in stock so need some articles & thought on it?

Nov 13, 2015 by Ankit, Udaipur | Mutual Fund

It is important that you understand the differences between ETFs and mutual funds, as they are different in many respects, while similar in some... Read More

How to renew the expired ARN Number

The validity of my ARN 17183 has been expired during March 2013. I want to get it renewed again. The procedure of which may kindly be known to me?

Nov 4, 2015 by Smita Agarwal, Lucknow | Financial Advisory

Since your ARN has expired a long time back, you need to submit a renewal application to AMFI along with the renewal fee (details are available on the AMFI website). The validity of your renewed ARN issued... Read More

Suggest Mutual Fund schemes to be invested in SIP mode for my son

I am retired 65 yrs old. Kindly suggest Mutual Funds in SIP route to create a lump sum for my different lyabled son. I can invest monthly Rs. 10000 towards this. Kindly advise the best option for a long term iperspective( say 10 to 15 years)?

Nov 4, 2015 by Ganapathy, Chennai | Mutual Fund

Even though you are retired, since you want to create a corpus for your son, you should invest in equity funds. Over a 10 to 15 year investment horizon, equity as an asset class has the potential to give much... Read More

Suggest me Mutual Fund SIP scheme for investing for the long term

I am Saurav Pushkar. I want to invest 5000 per month in mutual fund. Which is the best fund for long term about 40 years. Please suggest me

Nov 4, 2015 by Saurav Pushkar, Patna | Mutual Fund

Firstly you have made the correct decision to invest in mutual funds over a sufficiently long investment horizon through SIP. Over 40 year investment horizon you can create substantial wealth, if you invest... Read More