The Mutual Funds Investment Thread

rockfella

In the zone
Interesting quote I read today and feel is true:
True. Happened with me too. Once a spendthrift I live like a miser now lol.

Another thing wanted to point out: Avoid investing large lumpsums. It is not recommended. I've seen portfolios set up by naïve investors (some friends of mine) who were advised by relationship manager to do that. 10 lakh in single fund invested as lumpsum ... hovering at mere 6/9% after 2 years. 7 lakh done in one shot giving negative returns after 5 years (No clue how that happened but it did). If you have a big amount split it into SIPS for 24 months and let it "time release" to MFs. This is to safeguard against calamities like 2008 recession/Covid/anything in the future.
 

TheSloth

The Slowest One
Hey guys! One more question!
Say I started investing in ELSS fund A and I plan to invest fo10 yrs. But after 3 years A isn't performing well and I want to switch to fund B. So after withdrawing money from A, i will have to pay 10% tax. then If the remaining money I invested in B as lumpsump and started SIP like earlier I was doing with A. Will B give good returns after remaining 7 yrs or continuing with A for 10yrs will give better returns?
Point, is how do you people switch and continue investments from one fund to another? Or no one usually switches?
 

rockfella

In the zone
What is time release?
Safe guard for 24 months you mean? Long term investment is safe anyways.
Multiple sips posting at different dates spread across 24 months to counter calamities like 2008 recession/covid/anything. Anything is always possible. Market tends to crash often but always goes up.
 

whitestar_999

Super Moderator
Staff member
Hey guys! One more question!
Say I started investing in ELSS fund A and I plan to invest fo10 yrs. But after 3 years A isn't performing well and I want to switch to fund B. So after withdrawing money from A, i will have to pay 10% tax. then If the remaining money I invested in B as lumpsump and started SIP like earlier I was doing with A. Will B give good returns after remaining 7 yrs or continuing with A for 10yrs will give better returns?
Point, is how do you people switch and continue investments from one fund to another? Or no one usually switches?
Each SIP in ELSS has its own 3 years lock-in period. You can only switch between MF schemes of same AMC(e.g.switch from sbi elss scheme A to sbi elss scheme B after 3 years lock-in period). To assess MP performance you must see relative performance of your MF in that category so if it usually stays in top 5 performers(on annual/cumulative basis) in last 2-3 years then it is doing alright.
 

TheSloth

The Slowest One
Each SIP in ELSS has its own 3 years lock-in period. You can only switch between MF schemes of same AMC(e.g.switch from sbi elss scheme A to sbi elss scheme B after 3 years lock-in period). To assess MP performance you must see relative performance of your MF in that category so if it usually stays in top 5 performers(on annual/cumulative basis) in last 2-3 years then it is doing alright.
Ok so we can switch between same fund house, got it. But can I switch to another fund house after withdrawing money from fund A, with first payment as lumpsump and then restarting fresh SIP in fund B?
3yrs is too less to show good progress for any equity fund, i took wrong period in my example above, my bad. Let total period be 12yrs and after 6yrs, can I switch to B from A at 7th year and expect same returns after the remaining 6yrs like I initially expected from A ? Or this timer of 12yrs get reset and I need to wait again for another 12yrs t get originally expected returns?

Or this concept of switching from A to B is doesn't exist for long term investment plans?

I am asking because many people after Covid market crash would have withdrawn amount at that time and sitting with huge amount in their bank account. After market seem to get back on track again they would have invested all the amount in funds. How does this all work?
 

whitestar_999

Super Moderator
Staff member
Ok so we can switch between same fund house, got it. But can I switch to another fund house after withdrawing money from fund A, with first payment as lumpsump and then restarting fresh SIP in fund B?
3yrs is too less to show good progress for any equity fund, i took wrong period in my example above, my bad. Let total period be 12yrs and after 6yrs, can I switch to B from A at 7th year and expect same returns after the remaining 6yrs like I initially expected from A ? Or this timer of 12yrs get reset and I need to wait again for another 12yrs t get originally expected returns?

Or this concept of switching from A to B is doesn't exist for long term investment plans?

I am asking because many people after Covid market crash would have withdrawn amount at that time and sitting with huge amount in their bank account. After market seem to get back on track again they would have invested all the amount in funds. How does this all work?
It is recommended to switch only if performance is really poor & if a fund perform so badly after cumulative basis of 7 years then most likely you chose the wrong fund from the start. In such case nothing you can do other than investing fresh in another good fund & wait for 7 more years to see if you get decent return.
 

rockfella

In the zone
It is recommended to switch only if performance is really poor & if a fund perform so badly after cumulative basis of 7 years then most likely you chose the wrong fund from the start. In such case nothing you can do other than investing fresh in another good fund & wait for 7 more years to see if you get decent return.
Some of the good performing funds tend to loose ground after some years.. hence monitoring is essential.
 

whitestar_999

Super Moderator
Staff member
Some of the good performing funds tend to loose ground after some years.. hence monitoring is essential.
Some example, I look at avg performance of past 5 years at least & till now any good MF I see has been able to remain in one of the top 5 position on a cumulative 5 years basis(maybe it falls down to 10th or 15th position in a certain year but on 5 years cumulative basis it remains in top 5).
 

Vyom

The Power of x480
Staff member
Admin
My funda for long term investing would be: if a fund is not performing well, I stop it's SIP and continue SIP in good funds.
But I wouldn't transfer funds from previous fund to new fund.

You see, if a fund is not performing well, that means the timing of the sector in which the fund invested failed, not the fund itself. Hence I would give it time to grow, while not investing fresh money. Hope that makes sense.

Also, a good ELSS fund is diversified enough, so I don't think there would be a situation to change an ELSS fund. I am happy with the one I am investing: DSP's Tax saver fund.
 

rockfella

In the zone
My funda for long term investing would be: if a fund is not performing well, I stop it's SIP and continue SIP in good funds.
But I wouldn't transfer funds from previous fund to new fund.

You see, if a fund is not performing well, that means the timing of the sector in which the fund invested failed, not the fund itself. Hence I would give it time to grow, while not investing fresh money. Hope that makes sense.

Also, a good ELSS fund is diversified enough, so I don't think there would be a situation to change an ELSS fund. I am happy with the one I am investing: DSP's Tax saver fund.
It does make sense.
 

TheSloth

The Slowest One
Hey guys!
I started doing SIP in one the ELSS fund. But I am having 1 problem now. After the 1st month statement which came to my email, I found out that my Address in PAN card were old and not updated. I want to correct those address related fields but not seeing any way to correct it through fund house or through Groww app. Any suggestions here?
I have updated the address in PAN through Aadhaar card but the I do not know how to change address in Fund's monthly statements.
Do I need to stop this SIP and start another fresh SIP which will reflect my updated address?

On their website they are telling
Individual: Please submit a CKYC Form at any of the Investor Service Centres of any Mutual Fund along with:
  • Proof of identity (PoI)
  • Proof of address (PoA)
  • NRI/PIO/OCI - Copy of passport/PIO Card/OCI Card and overseas Proof of Address

Could anyone tell what is Investor Service Centres of any Mutual Fund?
 
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whitestar_999

Super Moderator
Staff member
Hey guys!
I started doing SIP in one the ELSS fund. But I am having 1 problem now. After the 1st month statement which came to my email, I found out that my Address in PAN card were old and not updated. I want to correct those address related fields but not seeing any way to correct it through fund house or through Groww app. Any suggestions here?
I have updated the address in PAN through Aadhaar card but the I do not know how to change address in Fund's monthly statements.
Do I need to stop this SIP and start another fresh SIP which will reflect my updated address?

On their website they are telling


Could anyone tell what is Investor Service Centres of any Mutual Fund?
You need to submit this filled form with attached documents as proof to a nearby service centre of any MF/CKYC agency like CAMS(contact the fund house to know nearest such centre in your city).
 

TheSloth

The Slowest One
You need to submit this filled form with attached documents as proof to a nearby service centre of any MF/CKYC agency like CAMS(contact the fund house to know nearest such centre in your city).
Thanks! One more question. I checked on this portal : Know Your Status
and found out that my KYC was done by CVL. Do I need to do KYC again through CVL or any one of those 5 nearest to my house would be fine?
 
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