anm
Well-Known Member
I too wonder what was I smoking during this rally. Thankfully I had my tiny SIPs going on to give me just a sip of the ocean.
Mutual Funds - Investment
- Thread starter vinay
- Start date
Any equity investment is risky. (and investing in debt instruments for the long term is even riskier !!!) What I do is try and minimise this risk. How I do it one may ask.
1. I would never invest a lumpsum in one go unless the Sensex goes to 3000 levels !!! :licklips:
2. For SIP investments, I never look at Sensex numbers.
3. I never invest in Equity MF's unless I don't need the cash for the next 10 years.
4. I don't usually invest in funds that have not been around for a minimum of 7 to 8 years.
One could pick the best funds (actually there are no best funds, just good funds which have performed well over many years) and still make a loss if basic rules of investment in MF's are not followed.
Regards,
Sunil
Fixed Deposit - Mutual Funds
Anm,
About the taxation issue i do not know much, you will have to work this out with your CA.
It is right to invest only in fixed deposits if one does not want to take any risk with the capital. As far as liquidity goes, MF are more liquid, flexible and convenient.
If your fixed deposits are for long term, say 5 years or so, then you are likely to gain more by investing in equity funds, for the starters one can choose a "balanced fund".
Indeed real estate also can give good returns, one can consider a mix investment, mutual fund cum property.
V.
Anm,
About the taxation issue i do not know much, you will have to work this out with your CA.
It is right to invest only in fixed deposits if one does not want to take any risk with the capital. As far as liquidity goes, MF are more liquid, flexible and convenient.
If your fixed deposits are for long term, say 5 years or so, then you are likely to gain more by investing in equity funds, for the starters one can choose a "balanced fund".
Indeed real estate also can give good returns, one can consider a mix investment, mutual fund cum property.
V.
Mutual Funds - Risk Management
Ajay,
You are right that advice will be sought on funds and stocks too. I recommend that you open a separate thread for stocks, i will also participate there.
I think most of us will agree that there is always a scope of loss though chances are very thin when it comes to mutual fund, if investments are made rightly for larger periods.
Well anyone getting into the market with a lump sum amount instead of a SIP, is a sure recipe of disaster in the waiting, most of us know these things, but still many of them do the blunder.
I am very sure that no one knows when the market is going to rise or fall, so there is no question that so and so time was to exit and not to buy or otherwise.
If the sensex crashed from 21,000 to 8,000 still it is not a big deal because if one was selling on regular intervals between 8,000 to 21,000 has made money.
On the other hand when market was falling from 21,000 to 8,000, and if he was still buying in piece meals via SIP and related, he has again made money because after hitting the low of 8000 it had again climbed to 21,000.
If valueresearchonline (VROL) says a particular fund is very good, then let there be no doubt about that. The massive blunder probably was done by your respective relative by the patterns which she invested, so it is not of any surprise that her fall at the market place was dynamic.
V.
Ajay,
You are right that advice will be sought on funds and stocks too. I recommend that you open a separate thread for stocks, i will also participate there.
I think most of us will agree that there is always a scope of loss though chances are very thin when it comes to mutual fund, if investments are made rightly for larger periods.
Well anyone getting into the market with a lump sum amount instead of a SIP, is a sure recipe of disaster in the waiting, most of us know these things, but still many of them do the blunder.
I am very sure that no one knows when the market is going to rise or fall, so there is no question that so and so time was to exit and not to buy or otherwise.
If the sensex crashed from 21,000 to 8,000 still it is not a big deal because if one was selling on regular intervals between 8,000 to 21,000 has made money.
On the other hand when market was falling from 21,000 to 8,000, and if he was still buying in piece meals via SIP and related, he has again made money because after hitting the low of 8000 it had again climbed to 21,000.
If valueresearchonline (VROL) says a particular fund is very good, then let there be no doubt about that. The massive blunder probably was done by your respective relative by the patterns which she invested, so it is not of any surprise that her fall at the market place was dynamic.
V.
Sunil,
The risk in equity based mutual fund will keep dropping, if our time horizon gets longer.
I would still never invest in lump sum even if sensex drops to 99, i will continue to follow the recipe of investing in peace meals. After all there is no way to know how deep the fall or rise can be.
With a time horizon of 10 years, one can never loose money in mutual funds if proper risk management is in place.
V.
The risk in equity based mutual fund will keep dropping, if our time horizon gets longer.
I would still never invest in lump sum even if sensex drops to 99, i will continue to follow the recipe of investing in peace meals. After all there is no way to know how deep the fall or rise can be.
With a time horizon of 10 years, one can never loose money in mutual funds if proper risk management is in place.
V.
sanro
Member
reviving this thread .. hopefully Vinay n others are still into MFs.. can share some info.
In September 2013 ,I started SIPs in three equity funds (5k each) via broker. Recently I learned if we purchase Direct funds , in the long term , we can expect better returns. reason being the lesser expense ratio as compare to the regular plan( via brokers / distributors) .
Since , its just two moths since I started SIPs , I am wondering if I should switch it to Direct. exit load for all three is 1% and then some STGT.
appreciate any info on this.
.. hopefully Vinay n others are still into MFs.. can share some info.In September 2013 ,I started SIPs in three equity funds (5k each) via broker. Recently I learned if we purchase Direct funds , in the long term , we can expect better returns. reason being the lesser expense ratio as compare to the regular plan( via brokers / distributors) .
Since , its just two moths since I started SIPs , I am wondering if I should switch it to Direct. exit load for all three is 1% and then some STGT.
appreciate any info on this.
direct mutual fund plans might have lower expense ratio, may be around 0.50 percent. But also consider the service you get through a broker or an investment advisor. Broker/ investment advisors can further give you some guidance on investments incase you need the same.
You can give a letter to the respective mutual fund co to stop the SIP and you can restart the sip directly once you get a confirmation for the cancellation.
It may not make much sense to exit the recent mf investments knowing the fact that the cost of exit and tax will be more than the amount you will loose as brokerage to your broker.
Hope this helps in some way.
You can give a letter to the respective mutual fund co to stop the SIP and you can restart the sip directly once you get a confirmation for the cancellation.
It may not make much sense to exit the recent mf investments knowing the fact that the cost of exit and tax will be more than the amount you will loose as brokerage to your broker.
Hope this helps in some way.
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