How should I switch mutual funds? How to invest if I get a large lump sum?
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- Опубліковано 22 кві 2019
- Let us discuss two questions often asked in this video: How should I switch mutual funds? How to invest if I get a lump sum? Check out today's post on Virtual Credit Cards: freefincal.com/virtual-credit...
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Good evening Sir. Points noted. I'm mostly a diy goal based investor, investing for the long term. I think consulting a financial advisor will be beneficial. Thanks again for taking my questions 🙂.
Sir your content is unbiased..very informative...keep making vedios on basics of funds selection parameters....
Sir, thank you. Straight n Frank advices.. thank you
Useful info. Thank you!
Thanks for the good insights on switching mutual funds.
I'm planning to switch to Direct funds from Regular plan.
My AMC doesn't have direct plans with them.
Shall I just sell all the units and buy instantly on direct plan (I assume that redeeming will take upto a week at max).
Also Shall I redeem if overall gain is negative?
TIA
Switching from EQ to debt and vice versa for rebalancing within same fund house doesn't attract any exits loads, is this true?
Dear Sir, I am on NRI status. I have invest in all fund ( Large, Mid, Small, multicap etc)but my small cap fund is continiously in negative since last two year where as rest all are in accordance with market and giving growth. Should I redeemed my small cap and put in Large cap/ Blue chip or continued to be in small cap ( Franklin India Small cap). Total % in small cap is 13%. Pls suggest should switch or continues in smallcap
Sir you are treading a new path in this area of knowledge. I find it interesting. I am a retired govt employee for two years. It will be fine if you could do a video on money management for recent retirees.
Informative.....
Super idea
Thank you sir for addressing these questions.. these are some of my confusions and I have clear now..
Initially when I invested in mutual funds I don't have any idea.. now I can say that by watching your videos and following your blogs I have financially literate myself... First time I I know about your blog from the podcast call paisa weasa of Anupam Gupta..on ivm...
Good to know. Thank you
Bhai, maine 3 years se sbi bluechip & midcap regular fund mei sip kar rakhi hai, par ab mai chahta hu ki mai direct plan mei invest karu qki mujhe long term ke liye invest Karna hai 20-30 years, to mujhe kya karna chaiye? Kya mai sbi regular mutual fund ko stop kar dun, Or jo bh amount hai usko long time ke liye invest rehne dun, and koi dusra direct fund mei invest kar lun?
Great sir
Sir, I wait eagerly for your rational and down to earth vidioes.The way your claims & statements are backed by sound logic and that, too mathematical is without an equal.Gold contrary to popular perception is not at all a good instrument for investing.I have some gold lying idly in locker.Is it a good idea to go for SBI gold deposit scheme or sell it & move to equity & fixed income instrument in 60%- 40% proportion?
Awesome Video Sir!
Question : I have tried to figure this out myself but I'm not getting clearity. Let's say I want to keep two funds for all my goals 10,15 and 20 ahead. How should I take care of allocation and rebalancing?
I think you are talking about Unified Portfolio Approach. My personal opinion is having separate buckets for various goals. You can also check sir's calculator for Unified Portfolio.
@@chelseafcf Maybe it is what I am looking for. Could you please share the link.
I am not able to figure out how to manage all my long term goals (above 10 years) (let's say I have 4 such goals) with 2 or 3 funds
Start out with the equity / debt ratio you are comfortable with. As the time progresses, you'll find that one fund will outperform the other, and equity will outperform debt in cycles. It's immaterial to try to keep rebalancing each time one does better. If your goal is met and you redeem one fund, then no need to move the other equity funds. Any rebalancing should be done based on fresh money you put into your portfolio.
Ex : if you have a 50 : 50 balance today (maybe, 3 equity funds + 1 debt), and tomorrow if equity does well and it becomes 70 : 30, no need to balance it by trimming equity. But if you earn a cash bonus at your job, then deploy it in debt. That way, you aren't trimming anything, only allocating fresh money for balancing purposes. Trimming equity could put you in a spot where you end up trimming in the middle of a bull run when the stocks have the potential to go 3X from where they are. Let them grow. Don't keep chopping the tree if it grows a little. Any balancing should be done by allocating more to debt, and not by trimming more form equity.
Trim money from equity ONLY if your goal is met OR if equity suddenly gives 4X returns in 2 years (like it did in 2016 to 2018)
If possible I would like to get your perspective on "Parag Parikh Long Term Equity Fund". What I have observed is the fund house has only 2 offerings which is remarkable given offerings of other fund houses. It has a philosophy of its own and good number of instances doesn't seem to bother about what the general equity market thinks or does. Hope I am able to convince you.
Please see my review
Hi Pattu Sir, I am very new to investing in Mutual Funds and stocks less than 2 months... As a beginner have basic questions..not related to this video completely .. not sure if it has been already covered, if so please share the link. It's more about my knowledge gap in markets
Question:
1. How does a company gets listed in stock exchange?.. the entire journey and circumstances in which they get unlisted? Is there a way to know the start date of a stock getting listed in BSE or NSE
2. How is it decided on how much stocks is allowed for trading, intraday trading, future and options, how many units are allowed to fund managers? who decides? Is there a limit for each fund house? How does this all work..?
3. If we have a goal which is short term let's between two to three years... What homework we need to do in terms of analysis and how different is it from long term analysis
4. If we have to believe a newly started fund where we have no past history... What are the things I should ensure of?
I am fine if you want to answer these questions in Tamil as it is fresh and may be useful for people who just started viewing your Tamil videos..
I am a big fan of yours... U r doing a fantastic job... U always rock and keep going..
Thanks a ton in advance.
Nice video,Sir.Very very honest opinion.
Please make a video on details of short and long term capital gain tax rules in various mutual funds.I want to know whether taxes are deducted only when the capital gain is > 1lakh.
Please search the channel for this
Sir, I have a question it may feel to you as a stupid question. If I am correct sbi offers minimum lumpsum of 5000/- so instead of opting SIP of 5000/- p.m, can I purchase the same fund in lumpsum every month (or whenever required) so that I will not to worry about monthly payment and exit load etc.. Note: I don't know ABC about mutual fund till now and I m started learning mostly from FREEFINCAL and other tamil UA-cam channels.
When we are switching from Regular to Direct and if a year is not completed, won't the be any exit load being applied.
You'll face exit load but the thing is, the exit load penalty will usually be similar to the extra expense ratio you were paying (1%). If you don't switch, you'll end up paying the same money in the form of extra expense ratio for that year.
@@rameshparekh581 Yes right, so I guess if the difference between expense ratios of direct and regular is greater than 1%, then bearing the 1% exit load makes sense.
Hello Pattu Sir, by your above video should it be assumed that by bifurcation of 60% equity & 40% fixed income , would it be similar to invest the lumpsum in a strong balanced fund for a time frame of 15 years, how would be that option also ? I meant Because even these seem to automatically allocate their assets in the same proportion that you mentioned. Wouldnt that also be suitable also ? Your views are highly appreciated.
I do not follow
@@pattufreefincal Means that's would a good balanced fund be a decent investment option for long term
Hello Sir,
I have a question on asset allocation and rebalancing.. Most of my fixed income instruments are EPF & NPS, How can I rebalance my portfolio when fixed income portion grows out of planned asset allocation percentage? In other words, how can I pull out money from these fixed instruments to balance my portfolio?
I will make a video on this as it is a common problem
Thanks!!!
Thanks for the video Sir. I just wanted to reconfirm what you said. If i have been doing an SIP in a fund from the past 5 years and lately i realize that the fund is not performing well and want to switch to a different fund, can i just redeem all the units in one shot and invest the entire amount in the new fund in one go?
The reason why i asking you this is because, i remember you telling us in one of the video on how to reduce number of mf's in a portfolio to switch to new fund gradually in a span of six months. Please confirm if i have got it right.
It is completely possible that i have understood it wrong in the older video. Please don't mistake me for raising this question.
I regularly watch all your videos and follow you on Twitter as well. I must say you have changed the way i look at money and investments
Thank you. If the existing units are just a few switch out immediately. If not do so a bit more greadually. This has nothing to do with risk. Just about tax and exit loads
@@pattufreefincal thanks sir
Sir ,I am a big fan of your videos , do u do any workshops in Chennai?
I used to. Will have to re-start
Sir If fund is in negative still we should switch? I have ABSL Mid Cap fund from last 3 yrs and it is still showing negative return... Pls suggest
Yes! Then you do not have to pay tax (on some units)
@@pattufreefincal thank you sir... Shall I switch to HDFC Mid Cap Opportunity? Is it a good fund? Or pls suggest some good mid Cap funds
@@ChandanSingh-pz3uyAsking that question is the best way to get spammed by MF agents who are crawling the internet for leads. Follow Pattu's videos on standard deviation, see where your risk appetite and investment horizon lies and pick a fund yourself. That's the whole point of having this channel dedicated to DIY investing.
In his past videos he suggests that getting a Nifty Next 50 index fund is better than getting a Midcap fund. I agree with that advice. Typically any Midcap fund will mimic the stocks and therefore the returns of the NN50 index and underperform the index over a long term.
@@ChandanSingh-pz3uy Axis Midcap is a good option
Pattu Sir, Good Video. Thank you !
Please create a video for my query if you think it will help the viewers.
Query : Multicap fund or Combination of Large Cap+Mid Cap +Small cap funds?
Please explain the Risk and Rolling returns along with their advantages and disadvantages.
I will try
@@pattufreefincal thank you
Pattu Sir, From last 3 years, I am buying ELSS (Axis AMC) through icicidirect. That's a regular plan. Now I want to move that fund to direct fund in Axismf online portal. But I ELSS has 3 year locking period and If I switch my existing regular ELSS to Direct ELSS fund on AMC site then.. what will happen in icicidirect portal... what it will show me? Can I do that ? And Will icicidirect will allow me to do that. I have all this confusion.
Hey, you cannot switch due to lock-in. You will have to wait for 3 yrs. Any new investment you make, do it with AMC, by buying it from their website. In general, to switch you will have to go to AMC website, create account using your folio/pan details , login and then consider the switch option
Thanks
@@PradeepSingh-vm1gl Switch every month whichever units become free from lock-in
@@duderocks6483 Absolutely. Thanks Samit
@@PradeepSingh-vm1gl I'm still stuck with icicidirect with Axis ELSS, I guess by Dec 2021, I'll be completely switched to corresponding direct plan. Remaining non-ELSS funds I switched gradually to avoid exit load but then I was lucky since market has been uptrending since June 2019 (when a friend told me how stupid I was to invest in regular plans) so luckily it's not like I traded gains to save 1% exit load but then yeah my capital gains were pretty huge so my tax bill will be high this FY. Anyway, better late than never. I've opened Zerodha account and will move my stock portfolio as well and eventually close the icicidirect demat account :)
After switching from regular to direct, will my SIP continue?
Stop reg sip, switch, start direct SIP
If not switching??
@@pattufreefincal Sir if I stop all my invested amount will be credited to my bank account right? What is use of switch?
Hi
Wats the correct time to invest lumpsum
anytime if you understand your goal and risk profile for it
@@pattufreefincal sir can u tell me 2or3 best mf equity mf to invest for wealth creation
Can you hold a investors meet? You can float a google form and get to know the responses as well, I’m pretty sure many would turn up, I’m ready to come down from Bangalore any time. Please see if anything can be done about this.
I have done 7 such meets in Bangalore over the years. A bit occupied now will see what I can do
freefincal - Prudent DIY Investing oh brilliant. Wasn’t aware, started following your channel just a couple of months ago. I would also like to take a moment and appreciate the great work you’ve been doing, I’ve become more financially literate and responsible coz of you and love the face that there no bullshit in your videos, they hit the nail on its head all the time.
@@hiteshkumar7657 Thank you