Direct Investment in Mutual Funds

[rajivnc]

Entry loads for all Indian mutual funds were banished by SEBI effective from 1 Aug 2009.

Exit Loads will still be applicable for funds. In fact some of the funds have increased exit loads.

So there wont be any future issues with the Broker code other than "DIRECT". Is that what you mean, Mr. Nikrod ?

 

[nikrod]

So there wont be any future issues with the Broker code other than "DIRECT". Is that what you mean, Mr. Nikrod ?

Yes thats what I meant. Investor won't be affected by broker code in application form. Only difference is that if brocker code is mentioned then, that broker will receive some up front & trail commissions from AMC's.

 

[palka]

Another question, is there any software ( paid/free) I can use to track the investments?

i am not sure if you have already found your solution. There are many online free solutions that will let you track your investments and do a lot more.
I use the following : http://new.valueresearchonline.com/port/default.asp

 

[amrut24]

Hello all,
My father has retired and has a corpus of around 2 lacs to invest . Can u tell me the best asset allocation for him in mutual fund and otherwise, considering his retired status. He is currently withdrawing his money from Equity linked Mutual funds he had invested in ,as he has retired.
Pls guide me.
Thanking one and all for their replies ....

 

[palka]

@amrut24: You must post what your father expects from that money.
Is he getting a pension?
What are his other investment?
Does he need a regular income from that money?

 

[amrut24]

Palka, thanks for replying.
My father is getting a pension around 15000/ mnth.
He has some LIC policies . But he is withdrawing all the money from the current equity based mutual funds . He expects to grow the money without any monthly returns from them at least till next 2 years. So considering his low risk profile and retired status where should he invest the money . Which will be the best mutual funds for him ?

 

[yodlee99]

For pensioners, I think the best options out there include FDs and a few debt based mutual funds. FDs with nationalized banks gives around 9% now (check it yourself) + 0.5% for senior citizens... these will give piece of mind. Plus postoffice savings gives, if I remember right, 8% compounded annually. Try Kisan vikas patra (Money doubles in 8 years & 7 months), NSCs, Senior citizen savings funds etc. These are the safest out there:
http://www.indiapost.gov.in/netscape/Banking.html

Never go with private companies, even though, my parents have investments with Shriram transport since last 15 years or so and they are relatively safe out there... but not beyond say, 20k. Check out their latest Unnati scheme, only if he is comfortable.

Other option is debt mutual funds that are actively managed.. like I have SIP in Canara Robeco income. These are also safe in the long run, but, when RBI raises interest rates, their returns go down for short term.
check out:
http://new.valueresearchonline.com/...Year&Percentage=0.1&rating5=5&Submit=Get+Data

I would also suggest may ~5% in gold ETFs, only if he is comfortable. The closest he can come into equity would be balanced funds like HDFC prudence or balanced.
A big NO to mid&small caps, sectoral funds or stocks.

 

[amrut24]

Thanks for the information and valuable opinion

 

[yodlee99]

Very similar scenario:
http://new.valueresearchonline.com/story/h2_storyview.asp?str=14954

 

[INDU1]

I think Mip schemes of HDFC/Reliance/L& t are good option for him. These give a typical return of 9-12% tax free. Another good option is yearly Fixed maturity Plan which give a return of 8% with indexation benefit. Also companies Fd can also be a good option.