The Mutual Funds Investment Thread

TheSloth

The Slowest One
The best part of long term investment begins after 10 years when compounding becomes so aggressive that your entire invested amount doubes in 2/3 years. I won't withdraw after 5 years. It is like planting seed of a mango tree then cutting it half way just before it starts giving real good mangos ;)

Here:
View attachment 22931
5 years.

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10 years

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3 extra years from 10th year! (13 years)

This is one of the greatest aspect of compound interest which folks don't realize :)
The big numbers are the result of the the 18% expected return rate, which is too high no?
 

Nerevarine

Incarnate
What if we keep the entire investment for long term lets say 5 years and after 5 years withdraw entire amount and invest in another MF
Read the example I gave, its for 3 years. With tax harvesting and without tax harvesting.
*www.youtube.com/watch?v=k206qA7L17k&t=52s

this video explains in depth. Its slighty dated because now exemption is upto 1.25 lakh and LTCG tax is 12.5 % but still concept remains same.
 

TheSloth

The Slowest One
^I am not investing in any fund which gives 15% ROI, I picked only index funds which will probably give 12% if we are lucky. And after tax, it will be even lesser.
Or you mean to say after 10 years with large investment, the ROI increases to 15%-18%, even for index funds?
 

Vyom

The Power of x480
Staff member
Admin
BTW this is a very good product idea, if groww or zerodha implement "auto-harvest" in their apps.
This feature is already there in Kuvera platform.
I used this feature in past 2 financial years. They make it easy to identify which MF to sell and how much in order to maximize tax harvesting.
And also let me place the buy order of same amount in same MF (or in another, if I choose). Very convenient.
 

rockfella

Ambassador of Buzz
^I am not investing in any fund which gives 15% ROI, I picked only index funds which will probably give 12% if we are lucky. And after tax, it will be even lesser.
Or you mean to say after 10 years with large investment, the ROI increases to 15%-18%, even for index funds?
Your username says it all. Go for it :)
 

TheSloth

The Slowest One
Read the example I gave, its for 3 years. With tax harvesting and without tax harvesting.

this video explains in depth. Its slighty dated because now exemption is upto 1.25 lakh and LTCG tax is 12.5 % but still concept remains same.
I still didn't understand how does it work with SIP. say I invest in March and then withdraw upto 1.25L in April? How does it work with exit load? Its not 1 year since I purchased the units, i need to pay exit load if i try to redeem all the gains, which includes units bought in March. Am I correct?
 
I still didn't understand how does it work with SIP. say I invest in March and then withdraw upto 1.25L in April? How does it work with exit load? Its not 1 year since I purchased the units, i need to pay exit load if i try to redeem all the gains, which includes units bought in March. Am I correct?
Read above messages again for past 2 pages.

LTCG is only applicable if you invested for more than 1 year. If your MF has no exit load for 1+ year of investing, all good, else exit load will definitely be applicable & tax harvesting will help to a slightly lesser degree.
 

Nerevarine

Incarnate
It helps to pick mutual funds that have no exit load after 1 year of investing but dont overdo it. Your aim is wealth generation, not tax saving!. Sometimes mutual funds with exit load are better than mutual funds without.
 

TheSloth

The Slowest One
Anyone here investing in Debt Mutual Fund?
As of now I am putting all the money I invest to equity, but that doesn't seem safe at all.
I wanted to know how do you select it, same like Equity MF by seeing long term performance and XIRR ?
 

shreeux

Movie Buff
Anyone here investing in Debt Mutual Fund?
As of now I am putting all the money I invest to equity, but that doesn't seem safe at all.
I wanted to know how do you select it, same like Equity MF by seeing long term performance and XIRR ?
Debt..will perform bearish market

Invest equally....Large,Mid,Small,Flexi,Elss,Debt
 

Nerevarine

Incarnate
Anyone here investing in Debt Mutual Fund?
As of now I am putting all the money I invest to equity, but that doesn't seem safe at all.
I wanted to know how do you select it, same like Equity MF by seeing long term performance and XIRR ?

Investing in debt mutual fund is the same thing as investing in FD.
  • low risk
  • the returns will be "interest" and not "capital gains", so you will be taxed based on slab rate.

Usually debt mf has interest rate like 6-6.5 percent. I personally dont like this, since 30% will be chomped off by the govt. If you want "safe" investment, invest in FD in small finance banks.
 
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