The Mutual Funds Investment Thread

[whitestar_999]

Don't time it too much with MFs. Any day you see significant selling pressure do an investment the same day to get units alloted

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There is a certain period of delay between investing money in MF & getting the MF units, it is not like direct buying of equities at the current market price. In any case the units you get are always calculated at the market closing price/market opening price(depending on the time of the day of MF money investment).

 

[icebags]

There should be no issue but just to be on safe side keep sip amounts different.

It's definitely doesn't seem to be a good time for lumpsun. Markets at all time high, and are showing signs of weakness. It's best to maintain some cash for seeking opportunities.
But SIP, you can get it increased if you want to increase the amount to invest monthly.

thanks for suggestions.

Don't time it too much with MFs. Any day you see significant selling pressure do an investment the same day to get units alloted

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what you mean ?

 

[thetechfreak]

what you mean ?

Don't worry about timing the market with mutual funds. If you see index negative, start the SIP and get units that day itself. MF is more about consistency of SIP rather than lump-sum on a "bad market" day

There is a certain period of delay between investing money in MF & getting the MF units,

With zerodha(or similar), you can get units alloted same day when investing on a direct plan of a MF. Check it here: What is the cut-off time for mutual fund transactions on Coin?

 

[whitestar_999]

With zerodha(or similar), you can get units alloted same day when investing on a direct plan of a MF. Check it here: What is the cut-off time for mutual fund transactions on Coin?

It says "end of the day" NAV will be applicable if applied within cutoff time so if market recovers by the end of the day after a drop then it won't help but if market stays down/recover a little by the day's end then it is fine.

 

[TheSloth]

I have been investing SIP in ELSS Mirae and Canera Robeco tax saving funds for last 6 months. But since last month I am seeing decline in the returns, in Canera Robeco my current amount is -500. Any idea if should continue to invest in these? I have already declared this for income tax deductions.

 

[omega44-xt]

I have been investing SIP in ELSS Mirae and Canera Robeco tax saving funds for last 6 months. But since last month I am seeing decline in the returns, in Canera Robeco my current amount is -500. Any idea if should continue to invest in these? I have already declared this for income tax deductions.

Market fell a lot last month. Those ELSS MFs are equity based MFs, so are definitely linked to the market.

 

[TheSloth]

Market fell a lot last month. Those ELSS MFs are equity based MFs, so are definitely linked to the market.

Yes. I came to know only after seeing my returns in Groww app.

Thinking if I should stop the SIP for these long term MFs.

Is this sudden dip because of over inflated market? which everyone was talking about for last 6 months.

 

[omega44-xt]

Yes. I came to know only after seeing my returns in Groww app.

Thinking if I should stop the SIP for these long term MFs.

Is this sudden dip because of over inflated market? which everyone was talking about for last 6 months.

Not an expert to comment if the market will continue its negative sentiments.

 

[whitestar_999]

I have been investing SIP in ELSS Mirae and Canera Robeco tax saving funds for last 6 months. But since last month I am seeing decline in the returns, in Canera Robeco my current amount is -500. Any idea if should continue to invest in these? I have already declared this for income tax deductions.

It is usual in such volatile market, for a typical 10 years cycle though such fluctuations don't even matter.

 

[thetechfreak]

I have been investing SIP in ELSS Mirae and Canera Robeco tax saving funds for last 6 months. But since last month I am seeing decline in the returns, in Canera Robeco my current amount is -500. Any idea if should continue to invest in these? I have already declared this for income tax deductions.

I this Mirae fund put 1-2% of their AUM into paytm IPO also which is why the NAV might have gone down a bit. Other than that market has corrected 8-10% from the tops it formed.

 

[TheSloth]

It is usual in such volatile market, for a typical 10 years cycle though such fluctuations don't even matter.

I heard similar comments in youtube videos I watched earlier which make sense. But I am just sacared because many people also speak that MF and all is not at all safe people lives gets ruined because they took huge risk of putting their life savings in MF instead of PPF/FD. Hopefully we don't see such returns after 10 yrs.

I this Mirae fund put 1-2% of their AUM into paytm IPO also which is why the NAV might have gone down a bit. Other than that market has corrected 8-10% from the tops it formed.

Yeah even I thought that's the case but MF has several funds; their Tax Saver did not include Paytm but other 3 funds did. More on this reddit page. I checked Mirae holdings in Groww and could not find Paytm in that list.

 

[rockfella]

This is the greatest advantage of Mfs VS direct stocks. I don't think this paytm IPO will have much impact on folks who have invested in Mfs who have invested in paytm ipo.

 

[thetechfreak]

In the long run a good fund manager and your subsequent SIPs will be sufficient to get back whatever hit the NAV of the mutual fund took with paytm

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[whitestar_999]

I heard similar comments in youtube videos I watched earlier which make sense. But I am just sacared because many people also speak that MF and all is not at all safe people lives gets ruined because they took huge risk of putting their life savings in MF instead of PPF/FD. Hopefully we don't see such returns after 10 yrs.

Just like everything, there are also bad MFs but no decent/good MF will give less return than FD over a period of 10 years.

 

[TheSloth]

I was planning to invest in another MF, just small amounts like 1-2k on monthly basis as long as possible(at least 7-8yrs). Is Axis Blue Chip Large Cap still the suggested fund or I should look at other investment options.
Another question is, could Niftybees be a good long term investment option? Since I am already investing in ELSS MF(to save more on tax), I thought of investing in this instead of another Large Cap MF.

 

[rockfella]

I was planning to invest in another MF, just small amounts like 1-2k on monthly basis as long as possible(at least 7-8yrs). Is Axis Blue Chip Large Cap still the suggested fund or I should look at other investment options.
Another question is, could Niftybees be a good long term investment option? Since I am already investing in ELSS MF(to save more on tax), I thought of investing in this instead of another Large Cap MF.

Whatever MF u have expect 15-20% growth in the long run not more. Anything more is a bonus. Check Parag Parikh flexi cap. If you want a small cap fund Kotak emerging equities is a good one too.

 

[TheSloth]

Whatever MF u have expect 15-20% growth in the long run not more. Anything more is a bonus. Check Parag Parikh flexi cap. If you want a small cap fund Kotak emerging equities is a good one too.

Thanks for suggestions. I shall check these.
Also, 15-20% returns is too much to expect when inflation comes in picture, imo. I think 12% return is modest and at best. I think money control website let one calculates the returns by keeping inflation rate in picture. End numbers were quite disappointing actually but still better than FD and even PPF.
(excuse my english grammar here. "let one calculates..."No idea what should be correct sentence here. Could anyone correct me here?)

 

[rockfella]

Thanks for suggestions. I shall check these.
Also, 15-20% returns is too much to expect when inflation comes in picture, imo. I think 12% return is modest and at best. I think money control website let one calculates the returns by keeping inflation rate in picture. End numbers were quite disappointing actually but still better than FD and even PPF.
(excuse my english grammar here. "let one calculates..."No idea what should be correct sentence here. Could anyone correct me here?)

True! These numbers can be very diff if you have invested aggressively last year. Gosh you reminded me of inflation. I am thinking crypto now.

 

[Zangetsu]

Thanks for suggestions. I shall check these.
Also, 15-20% returns is too much to expect when inflation comes in picture, imo. I think 12% return is modest and at best. I think money control website let one calculates the returns by keeping inflation rate in picture. End numbers were quite disappointing actually but still better than FD and even PPF.
(excuse my english grammar here. "let one calculates..."No idea what should be correct sentence here. Could anyone correct me here?)

PPF/FD are safe investments with guaranteed returns. You should deposit necessary amount in them and invest remaining disposable income in Stocks/MF (which you don't care even if you incur loss)

 

[rockfella]

PPF/FD are safe investments with guaranteed returns. You should deposit necessary amount in them and invest remaining disposable income in Stocks/MF (which you don't care even if you incur loss)

Losses in Mfs are very rare. I was thinking 7-8% vs 12%. Mfs still better than PPF definitely Fds. FDs hover at 5-8. Indian inflation is average 7.