ICICI Direct unable to process MF procurement....

[rrmhatre72]

Since you must be filing your taxes jointly, do you have to have your investments done jointly too? In my understanding, correct me if I'm wrong, you can make investments in your name or your wife's or jointly and still file the taxes jointly.

Hi Yodlee,

I am office going member. I file my tax based on form16.
Any income from stock will be additional income hence I want to do it through my wife.
She is also working as LIC agent & filing her tax separately. Hence this additional inome can be clubbed with her income.
I am under impression that.... as she is first aplicant.... all tax liability will go to her. Pls correct me if I am wrong.

 

[palka]

I am under impression that.... as she is first aplicant.... all tax liability will go to her. Pls correct me if I am wrong.

Yes, you are right. Also she has an income of her own. So, the issue of clubbing of income does not arise.

My point in the previous like this.

Husband earns, which he gifts to wife, who has no income of her own. Wife invests the money and earns. In that case the wife's earnings will be clubbed with the husbands income.

 

[rrmhatre72]

Hi,

I am facing following problem with ICICI Direct account.
I am having 3in1 account (Saving, Demat & online trading). This account is opened three months back. My wife(YUGANDHARA) & myself we are joint account holder.
When I tried to buy MF through ICICI, It gives me below error message.

"Kindly note that your online trading account which has been opened in the name of YUGANDHARA RAHUL MHATRE is operated as SINGLE HOLDING. As your bank account is in Joint Holding Mode, online investments in Mutual Funds are not allowed at present. You may contact your RM at ICICIdirect Branches or contact customer service numbers for further clarifications."

I am communicating with ICICI for last three month to resolve the issue. They have got several new forms signed from me to activate this.
but is is not done till date.

Now I am understanding that there is BUG is ICICI software. This software is not compatable to authorise MF buying in joint holding. It will take two more months to activate this facility on their site.

I wanted to know
1. If any one of you faced simillar problem with ICICI?
2. Is software reason given to me correct?

At last ICICI has completed modification in their software & now it is allowing to invest in Mutual funds with joint name.

At this moment I am going for debt funds & I will be transferring funds from it to equity funds at appropriate time.

I have already placed order on Reliance Mediam term debt fund.
Pls suggest me one debt fund from HDFC which does not have exit load even if I exit within one month.
In near future I will transfering funds from it to HDFC top200 & HDFC prudence.

 

[yodlee99]

HDFC Hi Interest Short term plan. Did you mean STP into BOTH HDFC Top 200 and Prudence? r u sure that you want both these funds under the same AMC and the same fund manager with similar portfolio.

 

[S S]

Rahul,

Almost a century ago, that the people did not believe banks. They preferred crediting their savings to the facility offered by the Post Office.

Even today, you may come across some people, especially from the Rural area, who still believe in keeping their deposits with the Post Offices, because it is safe there. Like banks, there is no chance whatsoever, that a Post Office shall get Bankrupt.

However………..! Any and every educated youth from the Urban area shall laugh at the thought of keeping money with the Post Office, than any Bank… PSU or Private.

Likewise…………..!

I have always laughed at the idea of having Trading platform and Demat account at any Bank, PSU or Private, because the primary function of these organizations, is Banking.

There are many firms, who are exclusively involved in Trading related matters. India Infoline, ShareKhan, Motilal Oswal, and others.

It does NOT matter to these organizations, whether your trading account is in single name or joint because they do NOT hold your bank account, which may be in any bank providing net-banking facility and could be in a single or joint name.

Anyone and everyone relying upon ICICI Direct is a safe trader, just like the guy who would keep his money in the Post Office and grumble if he is unable to do a net-transfer.

Cheers!
SS

 

[rrmhatre72]

HDFC Hi Interest Short term plan. Did you mean STP into BOTH HDFC Top 200 and Prudence? r u sure that you want both these funds under the same AMC and the same fund manager with similar portfolio.

Thanks Yodlee.

Anyway I have also put money in Reliance medium term debt plan & I plan to transfer my money from there to Reliance regular saving growth plan & Reliance diversified power sector fund. ( I know this is sector fund but my horizon is 5-7years & I believe companies in this sector should perform based on power shortage we are having.)
So four I will be in four funds
1. Reliance regular saving
2. Reliance diversified power
3. HDFC top 200
4. HDFC prudence. (This was selected to have one balance fund in portfolio)

I want to have fifth fund. But still I am not clear which one should I go. My choice is one of following.
1. Tata infrastructure (Again this is sector fund, But want to catch on infra story)
2. Birla front line
3. IDFC premier
4. OR start Stock SIP in Reliance Ind & L&T.

So above will be my diversification. My horizon is 5-7 years.
Also note that I am starting fresh SIP in all of them starting this month.
I will keep debt fund amount as is for time being. I will switch my position in above funds when market corrects ~10-15% (It may be one shot or may initiate STP at that time)

Also while starting SIP, I will be selecting five different dates for above five funds (May be 1st, 8th 15th, 20th & 25th) This will give me advantage of investing in market in every week indirectly.

Your suggestions are welcome on the plan. If you feel any other options then I am open for same

- Rahul

 

[rrmhatre72]

Rahul,

Almost a century ago, that the people did not believe banks. They preferred crediting their savings to the facility offered by the Post Office.

Even today, you may come across some people, especially from the Rural area, who still believe in keeping their deposits with the Post Offices, because it is safe there. Like banks, there is no chance whatsoever, that a Post Office shall get Bankrupt.

However..! Any and every educated youth from the Urban area shall laugh at the thought of keeping money with the Post Office, than any Bank PSU or Private.

Likewise..!

I have always laughed at the idea of having Trading platform and Demat account at any Bank, PSU or Private, because the primary function of these organizations, is Banking.

There are many firms, who are exclusively involved in Trading related matters. India Infoline, ShareKhan, Motilal Oswal, and others.

It does NOT matter to these organizations, whether your trading account is in single name or joint because they do NOT hold your bank account, which may be in any bank providing net-banking facility and could be in a single or joint name.

Anyone and everyone relying upon ICICI Direct is a safe trader, just like the guy who would keep his money in the Post Office and grumble if he is unable to do a net-transfer.

Cheers!
SS

Thanks SS for your inputs.
You have correctly analyzed this.

I am investing in MF since last 5years. But I was doing it manually. Hence every time I use to fill up forms, giving checks then keep track of every SIP accordingly update portfolio. Also another set of paperwork need to follow for withdrawal.
I already had Demat account in ICICI since last 10years hence naturally my first preference went to them & Biggest advantage in this system is that bank account is getting linked to demant hence again fund transfers are much easier.
You are right that this selection was keeping in mind safety & another thing is simplicity.

 

[yodlee99]

Your first 4 funds are good... however, it is spread within just 2 fund houses. You can think about DSPBR Equity, Fidelity Equity, Quantum Longterm Equity etc.
Rel Reg savings fund comes in 2 forms - clarify whether u'r investing in Equity or Balanced.

For your 5th fund, you can choose IDFC Premier Equity-A as its a very consistent fund in the mid&small cap. The other good one is Birla SF Frontline equity-A which has a large cap tilt. To decide between the 2, do this: input the first 4 funds of your choice in your portfolio available in valueresearchonline.com and see the exposure to various sectors. If you want to increase the exposure to large caps (for stability), take Birla SF Frontline equityA. But, if you want higher returns & are ok with some volatility, take IDFC Premier equity A.

Alternatively, my suggestion is to have 1 multicap, 1 thematic, 1 balanced, 1 large and 1 mid/small cap (in the same order):
1. DSPBR Equity
2. Reliance diversified power
3. HDFC prudence.
4. Birla front line
5. IDFC premier Equity -A

Good luck!

Thanks Yodlee.

Anyway I have also put money in Reliance medium term debt plan & I plan to transfer my money from there to Reliance regular saving growth plan & Reliance diversified power sector fund. ( I know this is sector fund but my horizon is 5-7years & I believe companies in this sector should perform based on power shortage we are having.)
So four I will be in four funds
1. Reliance regular saving
2. Reliance diversified power
3. HDFC top 200
4. HDFC prudence. (This was selected to have one balance fund in portfolio)

I want to have fifth fund. But still I am not clear which one should I go. My choice is one of following.
1. Tata infrastructure (Again this is sector fund, But want to catch on infra story)
2. Birla front line
3. IDFC premier
4. OR start Stock SIP in Reliance Ind & L&T.

- Rahul

 

[rrmhatre72]

Your first 4 funds are good... however, it is spread within just 2 fund houses. You can think about DSPBR Equity, Fidelity Equity, Quantum Longterm Equity etc.
Rel Reg savings fund comes in 2 forms - clarify whether u'r investing in Equity or Balanced.

For your 5th fund, you can choose IDFC Premier Equity-A as its a very consistent fund in the mid&small cap. The other good one is Birla SF Frontline equity-A which has a large cap tilt. To decide between the 2, do this: input the first 4 funds of your choice in your portfolio available in valueresearchonline.com and see the exposure to various sectors. If you want to increase the exposure to large caps (for stability), take Birla SF Frontline equityA. But, if you want higher returns & are ok with some volatility, take IDFC Premier equity A.

Alternatively, my suggestion is to have 1 multicap, 1 thematic, 1 balanced, 1 large and 1 mid/small cap (in the same order):
1. DSPBR Equity
2. Reliance diversified power
3. HDFC prudence.
4. Birla front line
5. IDFC premier Equity -A

Good luck!

Thanks Yodlee.
I will consider your inputs while finalizing my plan.
Anyway to answer your query, I was looking for Reliance regular saving equity fund.