Bi-weekly advice thread April 13, 2020. All questions about your personal situation should be asked here

[henry_]

We encourage all our visitors to ask those investing related questions they were always too afraid to ask. This thread will be moderated, to ensure it remains free of harassment and other undesirable behavior.

The members of /r/IndiaInvestments are here to answer and educate!

If you are looking for which brokerage to use, which fund house is more capable and trustworthy, which investing platform to use, which insurance company is reliable etc., you may want to read the reviews for banking and financial services, mutual funds and asset management services, brokerage products and services, and insurance products and services. Generally speaking, there is no best company, or fund, or bank. Answers are always subjective to your personal needs, but those threads a starting point for you to look at what other Redditors have to say about a company, product or service. You, may then ask a more specific question about what product or service to buy, once you are able to frame your personal situation.

NOTE If your question is "I have 10,000 rupees, what do I do?" or anything similar. There is no single answer to this question, but we will also need A LOT MORE information if we are to give some sort of answer

• How old are you?
• Are you employed/making income?
• How much? What are your objectives with this money?
• What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
• What are you current holdings? (Do you already have exposure to specific funds and sectors?)
• Any other assets? House paid off? Cars? Expensive partner?
• What is your time horizon? Do you need this money next month? Next 20yrs?
• Any big debts?
• Any other relevant financial information will be useful to give you a proper answer.

Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

Previous Threads Links

 

[resjudicata]

@henry_ Beginner questions for MFs

OLTE 21

Hi folks! A little background of myself. Early 20s. Started first job recently. 3.61 pa take home salary. About 10k expenses in total per month. Health insurance in place.

Short term goal to be redeemable in 3 years to pursue higher education. I recently started investing in MFs through SIPs (all direct funds). Currently 2 months in on -

• Axis Bluechip MF (1k monthly SIP)
• Axis Small Cap MF (1k monthly SIP)
• Kotak Gold Fund MF (1k monthly SIP)

1 month in on

• Nippon India Pharma Fund (1k monthly SIP)
• PGIM India Ultra Short Term (1k monthly SIP)

I have a couple of questions -

• Would you suggest any changes on the above, depending on the goal?
• I understand the exit load before a year. Are there any other charges of redeeming post that? To exit at a 3 year mark, should I pause my SIP at the 2 year mark?
• Negligible tax (20% tax with indexation benefit). Could anyone kindly elaborate on this? Is the benefit on the total amount or only on the taxable amount?

Thank you!

 

[addisonclark]

@henry_ I've 3 Lac to spare at this time. What would you do :
1. All of it goes into direct equity
2. Top-up existing MF holdings
3. Max-up PPF contribution for the year - spouse n self accounts
4. Any combo!

 

[inez1270]

@henry_ I am in the 30% tax bracket. I have some funds parked in FDs @ around 5.9- 6%. I want to maximise my post tax returns. Any alternative instruments to FDs which would give me better post tax returns ? I am okay with the instrument being slightly riskier than FDs. I'll be needing these funds in the next 10-15 months.

 

[thechristianblogger]

@henry_ I had applied for upstox demat and trading account three weeks ago. I got so many calls from upstox customer service to upload IPV video for verification. I did so but their support email is down and I also sent it to their official WhatsApp but they can't access it because of COVID 19 wfh. Should I try for another broker? I was thinking of Zerodha but I feel it has the same situation as Upstox from the other post. Are there any other recommendations for the stockbrokers? I was checking for share khan but for delivery trading their charge is extremely high compared to upstox or zerodha. I am looking for value investing so these are quite high charges from full-stack brokers.

 

[nischansr]

@henry_ Does anyone know of some website/app that provides S&P500 charts in INR?

Even better if it can be used to compare with existing Indian mutual funds.

 

[mr_skyfish]

@nischansr Somebody had shared this link earlier

https://eu.spindices.com/indices/strategy/sp-indian-rupee-index

5 year annualized returns are 1.17%. A lot of people were excited wil launch of Motilal S&P 500 fund but after seeing this I am confused.

 

[nischansr]

@mr_skyfish I found that when I Googled, it's not what I want... I don't know what it's measuring, but it's not the S&P500 stock index.

It looks like a simple currency exchange, but the numbers don't quite add up then either. Probably some kind of strange inflation adjusted forex index...

 

[billmcenaney]

@henry_ Is there a way where I can get the list of all my shares and Mutual funds, by just entering my PAN number?

 

[hancha]

@billmcenaney https://www.camsonline.com/InvestorServices/COL_ISAccountStatementCKF.aspx

You don't need to be registered on CAMSonline to use this but all folios must have the same email ID linked to them. Works for Karvy/Cams/FTAMIL funds.

Use whatever password you enter in the field to open the PDF mailed to you.

 

[billmcenaney]

@hancha I believe this is only for Mutual funds. I already have this.
I am looking for something similar for stocks/shares.

 

[logant2222]

@billmcenaney NSDL e-CAS - If your DMAT is with NSDL you should be getting monthly statement already. I think you can get from their website too.

 

[ezra932]

@henry_ Hello everyone,

Just wanted your opinion on this. Is there anyone who is invested in HDFC Small Cap and can suggest whether I should continue with mu holding or exit my investment. About 2% of my corpus is invested in this fund and I am holding it since early 2018 and my investment is down some 30% ever since. Can anyone analyse the portfolio or suggest whether I should cut my losses or stay put with a longer 2-3 more years outlook?

 

[dawnhammer]

@ezra932 units less than 12months old: exit. use that losses for tax loss harvesting: STCL can be carried fwd for 6-7 future years.

and if you really like the fund, can re-invest that withdrawn money (+ any new additions) over the next 12months.

 

[ezra932]

@dawnhammer Thank you! The units are more than 2 years old.

 

[dawnhammer]

@ezra932 2yrs in and the 30% losses : that's a -16% CAGR. (not incl inflation)

Assuming the fund grows at 10% CAGR right from today,

it will take a 4 yrs for it to grow back into your initial amount.

Jan2018 to Jan2024: the amount stayed the same.

 

[ezra932]

@dawnhammer That is the downside risk I guess I took. and to be correct, the investment was made in December 2018 so it's been hardly one and half year. I am comfortable with holding it for a longer term but I am concerned by the large AUM of the portfolio which leads to about 50-60 stocks being held by it which doesn't quite feel so right to me.

 

[logant2222]

@ezra932 This is always going to be subjective, but why overthink with 2% of the portfolio? Exit and consolidate.

 

[ezra932]

@logant2222 Because mate my 2% is substantially large and also because it is 1.3% right now and I am not sure whether to cut my losses or stick with it. Instinct and my understanding of the portfolio says it would be better if I stick but not so sure.

 

[hiram208]

@henry_ Last year I switched company and the new company didn't include the salary of my previous one while calculating tax. So I'm left with income tax to be paid around 1lac. Should I pay that as self assessment tax or advance tax? Also there seems to be some interest on this tax. Should I calculate that and pay that too?