@henry_ My personal banker is completely after my life to invest in HDFC life ULIP plans to complete his march ending targets. He was initially trying to sell me a ₹2 lac investment for a 5-year horizon, after receiving the plan documents, I noticed that the charges were pretty high at about 14% per year for a 5-year duration. The only thing it comes with is a life insurance which I'm just not interested in. I already have a term insurance which covers well for my salary bracket.
I feel that I can invest the same amount in a direct mutual fund plan and get higher returns with less cost with possibly the same equity market risks.
How can I get away from this personal banker and avoid investing in this? I'm just not confident or comfortable with the HDFC life ULIP plans.
@rodney80 Run! Hide! Don’t pickup calls
Say it’s a family emergency, won’t be able to invest.
ULIP is the worst financial product in India. Don’t buy it in any circumstances.
@henry_ What's the difference between Motilal Oswal NASDAQ100 ETF (MONAS100)/MASPTOP50 ETF and MIRAE ASSET NYSE FANG+ ETF ?
As the question suggests, I see that one is still trading on the NSE/BSE, while the other is not...I don't understand the difference? I have a few additional questions:
Why does the new SEBI rule not apply to both of these?
Does MONAS100/MASPTOP50 track the NASDAQ/S&P500 growth accurately?
How exactly is the ETF price set during live trading hours since the US market has different timings?
Is liquidity an issue for ETFs - if I need funds urgently is it guaranteed that I find a buyer?
How will the SEBI rules affect investing in the mentioned ETFs?
A little confused about all this foreign investing, and just trying to learn.
Mother | owns a residential plot and farmland in her name
Son 1 | owns one residential apartment
Son 2 | Owns two residential apartments
Now all three of them together buying a joint property (residential apartment) in Pune Maharashtra. Mother is the first name in the agreement.
Now my question is can Son 1 or Son 2 set off capital gains of the mutual funds against buying this property? The idea is to liquidate the mutual fund portfolio and use that money to buy this property. The motive is to avoid the capital gain tax of mutual funds.
@brittnyest In property, the ownership, taxation, etc. is on the share of each owner. (This is unlike financial assets where the taxation is on the first owner.) Each co-owner can independently decide on 54F - use it or not.
Son 2 can't claim 54F. The property to which 54F is applied can be at the most the second residential property of the person. (And this has to be the case for at least 3 years after claiming 54F.)
@henry_ Hi folks, I am working as Software Engineer and making around 46K a month. It's work from home so no extra expenses just 15-20K is enough for the month for whole family. Don't have any debts and neither planning on any. Big Expense might be after 2-3 years for marriage. Want to invest in mutual funds for long term. Can you please suggest some MF I should look into or some breakdown on how should I Invest? Any resources which you find reliable from personal experience for these questions would be really helpful too.
I heard there could be liquity issues in ETFs. How is it only specific for ETFs? Won't the MF have the same issue?
In terms of expense ratio, MF has 0.21% and ETF has 0.04% but since ETF is equity delivery there will be a transaction tax of 0.1% of the invested amount. If this is applicable on both buying and selling then that's additional 0.2% which totals to 0.24% for ETF. Isn't MF more or less the same in this case?
If opted for SIP, since trading fractional shares are not allowed in India does etf really provide a cost averaging like MF does? To elaborate, in MF, SIP is a fixed amount so the when the markets are down we end up buying more units and vice versa but in an ETF SIP we can only buy in units so even if the market is down we will end up spending less and buying the same number of units unless we actively participate. For a passive investor does it make sense?
From these observations I think MF is a better option for me. Please correct me if any of my assumptions is wrong.
@lapinot To encash ETF, the investor has to find a buyer in the exchange. The price may not reflect the value of the underlying security since it is a demand driven function. However you can sell anyone during the day so as a wannabe trader, take advantage of volatility.
In a MF, the MF values the underlying securities (at EOD) and pays you the fair value.
The exchange costs include brokerage/stt/SEBI charges/gst etc
@elliot44 Yes I too think MF is better but lots of articles point out that ETF is cheaper and better in the long term. Maybe that's not applicable in this case? I mean if exchange costs + expense ratio of ETF > expense ratio of MF then MF is better right?
A friend quit their government job. Their NPS account has ~18L. They do not want to continue NPS anymore. Since they are in their early 30s, they need to buy annuity with 80% of the amount. They prefer the "Annuity for Life" scheme with no bells and whistles like cashback, annuity to dependents etc. attached. They want the annuity to start at the earliest.
Which Annuity Service Provider (ASP) is the most suitable for this requirement of "Annuity for Life" with annuity beginning at the earliest?
@henry_ I invest in Navi Nasdaq 100 & Navi US Total Market funds. Will I not be able to invest in both of these anymore post 1-April basis the SEBI guidelines?
@henry_ For last few years, I am renewing my car insurance (Maruti) from their insurance website https://www.marutisuzukiinsurance.com/. Please tell if there are better alternatives to renew the insurance. Checked price on acko and there is a different of around 2k but it has mixed reviews so not very convinced.
@soheli From what I know every company has it's own policies about buying shares and most companies allow buying then and even provide an option to buy it's shares to their employees with a discount. This is called ESPP (Employee Stock Purchase Plan). Insider trading is typically when you use non-public information that could significantly impact the stock price. See https://groww.in/p/insider-trading
I tried to perform a 'Daily' STP transaction using MFCentral (website). The status of the request under 'Track Status -> Commercial Transactions' says 'Request Accepted' when I open the request details. And the STP was scheduled to start from 22nd March, 2024. It's 26th today, and still I am not able to see the results of the STP (the amount held under different folios is not changing), and there is no new Live STP visible under the section 'Transact -> Systematic Transactions'. What could be going wrong? Thanks in advance.
