@Finvestomate Thanks for the video. How about stock suggestion from Et money or they are following same standard investing principle of a diversified portfolio
My membership is over now. However, as far as I remember, in this category as well, they were recommending SENSEX / NIFTY ETFs only. It's all same except ETFs are traded like stocks and price fluctuates the whole day. ETFs generally have lower expense ratios compared to index funds, however, investors may incur trading commissions when buying and selling ETF shares, which can add to the overall cost.
Capital gain tax in first year is charged as per the tax slab in which we fall in. Let's understand this with an example. I invested Rs.1,00,000/- via ET money. They charged Rs.250/- per month, which is Rs.3000/- in first year Now at the end of first year, suppose you get 12% returns on the invested amount, making your investment to Rs.1,12,000/- with capital gains in first year as Rs.12,000/-. Assuming I fall in 30% tax slab. So Capital Gain Tax = Rs.30% of Rs.12,000/- = Rs.3,600/- And my net returns are Rs.1,12,000-Rs.3,000-Rs.3,600 = Rs.105400/- Hope this helps :)
@@finvestomate I am not trying to understand the methodology of taxation, but trying to get an estimate of total tax for the financial year. (a) Can a ballpark estimate be made? (b) How competitive is it w.r.t to active funds? After all one has no control on taxation in the Genius product once your capital. appreciates - either with fresh capital infusion or on a compounding effect? Using my case as an example: I started with 30k each in High Growth & Growth. For F22-23, I paid STCG of Rs 127/ and STT & other charges of 126/. Which was not bad for a total investment of about 1L. Can give me a better idea to plan taxation, investments based on tax for this product,,? To be fair it is new ...Thanks, appreciate the prompt response.
@@stcoktin Total Tax in a FY depends directly on the gains that you have made and the slab in which you fall in. For ballpark estimate, assuming you lie in 30% tax slab, your STCG are taxed directly @ 30% For active mutual funds also, conditions are same. However, I believe returns are lesser in active funds over long run. Pattern shows that out of 100, only ~20 are giving returns greater than index returns. For your example and further recommendations, it is better to study all details and then comment. You may book a session if you would like to. topmate.io/finvestomate
No. Tax Implications come only when you withdraw your money. If mutual fund itself is doing that rebalancing within, then no tax implications are there.
I am investing in ET money genius and my capital gains statement says I need to pay taxes for the rebalancing that genius does. Every month when the rebalancing is done there is stcg/ltcg that keeps adding up. This constant rebalancing has actually grown the tax amount considerably. If the investment was untouched the tax amount would have also been inside the portfolio which also would have grown considerably in the long term. Looking at this unless genius gives a substantial percentage over regular funds we might not be beating the regular funds. However the risk mitigation done through genius is a benefit as you're portfolio is better protected for crashes especially when you are closer to your goals.
No charges apart from their annual fees. Rebalancing is required at times, especially when market corrections happen. For example covid situation or when RBI increased the interest rates or your personal finance goals achievement timelines, etc.
Thank you , also had one more doubt one of my friend has been using genius since its launch last year but still now its not given the 16% annual returns as promised ??
@@mudassarsayed4792 Market hasn't seen a tremendous growth from Jan 2022. Sensex was 61k in Jan 2022, and 60k in Feb 2023. These returns take time, it's a long-term game. One thing which I highlighted in video as well at 07:00 is ET Money will keep charging 3k per annum. In order to break even this amount, one should invest huge amounts like Rs.1 lakh per month to have ET money expense ratio as 0.25%.
I think this is basically same as FoF with almost no risk for the AMC nor regulatory checks that mf have. NJ funds alao came up with something's similar in early 2010s and same us there with other " mf base pms"
Current genius subscription fee is ₹747/- per quarter (about 3000/- a year). That’s about 3% of 100000, only if you make that much extra interest with et money! So even if et money is giving 15% as compared to 12% of category avg, it would equalise only if that 3% is equal to ₹ 1 lac. Which means your investment should be to the tune of minimum 33 lacs (in genius portfolios alone). Below that it is not beneficial rather harming. Counter opinions are welcome.
@@musi6666well he did not reply so I will, I punched in some numbers in sip cal to proove he is talking bullshit. So I compared two scenarios Scenario 1: normal index investing Scenrario 2: Et money genius investing In scenario 1 returns expected is 12% Time horizon is 10 years Sip amount monthly is 20000 In scenario 2 Returns expected 15% Time horizon same 10 years Sip amount 19750 pm I decreased sip amount by 250 because that will go to genius fees According to the OP The maturity amount would be less in scenario 2 as min investment one should do is 33lac But as I expected the math does not match and the returs are Scenario 1: 44 lac Scenario 2: 52 lac So yeah he and you are just lazy to actually do some calc or maybe you guys do not know how to. Which I do not judge but would like you to try learning how to use sip calc. Atleast. All the best
The thing you are missing here, and I realised I lack myself, is discipline. We humans get too emotional, get greedy or fearful and do stupid mistakes. If this tool gives me that automation, where I can simply do SIPs in Low cost index funds and by balancing them get 16% return, then I should park my long term SIP goals here.
Definitely! That's what even I also shared at the end! If you can't do it on your own, then one may opt their services! They provide an ideal asset allocation portfolio for the long term.
One like for ur honest review. Keep sharing honest unbiased review.
Thank you for sharing the Equity Debt allocation for different categories. 👍
@Finvestomate Thanks for the video. How about stock suggestion from Et money or they are following same standard investing principle of a diversified portfolio
Glad you liked it. Unfortunately, I am not sure on their stocks recommendations.
I really appreciate ur Research and way of explaining.... God bless u.
Thank you v much :)
This is a review of mutual funds, what about stocks/etfs which is also an option? They don't invest them in index funds... Any thoughts?
what about their stocks + etf recommendations ? Is it worth the fees ?
My membership is over now. However, as far as I remember, in this category as well, they were recommending SENSEX / NIFTY ETFs only.
It's all same except ETFs are traded like stocks and price fluctuates the whole day. ETFs generally have lower expense ratios compared to index funds, however, investors may incur trading commissions when buying and selling ETF shares, which can add to the overall cost.
Thank you@@finvestomate , So there are no Stocks in the portfolio.. ? Only ETFs ?
@@carpediem5666 I think they have stocks
Can you comment on what is the Capital Gain Tax in the first year - you could indicate as percent of investment.
Capital gain tax in first year is charged as per the tax slab in which we fall in. Let's understand this with an example.
I invested Rs.1,00,000/- via ET money. They charged Rs.250/- per month, which is Rs.3000/- in first year
Now at the end of first year, suppose you get 12% returns on the invested amount, making your investment to Rs.1,12,000/- with capital gains in first year as Rs.12,000/-.
Assuming I fall in 30% tax slab. So Capital Gain Tax = Rs.30% of Rs.12,000/- = Rs.3,600/-
And my net returns are Rs.1,12,000-Rs.3,000-Rs.3,600 = Rs.105400/-
Hope this helps :)
@@finvestomate I am not trying to understand the methodology of taxation, but trying to get an estimate of total tax for the financial year. (a) Can a ballpark estimate be made? (b) How competitive is it w.r.t to active funds? After all one has no control on taxation in the Genius product once your capital. appreciates - either with fresh capital infusion or on a compounding effect?
Using my case as an example: I started with 30k each in High Growth & Growth. For F22-23, I paid STCG of Rs 127/ and STT & other charges of 126/. Which was not bad for a total investment of about 1L. Can give me a better idea to plan taxation, investments based on tax for this product,,? To be fair it is new ...Thanks, appreciate the prompt response.
@@stcoktin Total Tax in a FY depends directly on the gains that you have made and the slab in which you fall in.
For ballpark estimate, assuming you lie in 30% tax slab, your STCG are taxed directly @ 30%
For active mutual funds also, conditions are same. However, I believe returns are lesser in active funds over long run. Pattern shows that out of 100, only ~20 are giving returns greater than index returns.
For your example and further recommendations, it is better to study all details and then comment. You may book a session if you would like to.
topmate.io/finvestomate
Does rebalance have tax implications?
No. Tax Implications come only when you withdraw your money. If mutual fund itself is doing that rebalancing within, then no tax implications are there.
I am investing in ET money genius and my capital gains statement says I need to pay taxes for the rebalancing that genius does. Every month when the rebalancing is done there is stcg/ltcg that keeps adding up. This constant rebalancing has actually grown the tax amount considerably. If the investment was untouched the tax amount would have also been inside the portfolio which also would have grown considerably in the long term. Looking at this unless genius gives a substantial percentage over regular funds we might not be beating the regular funds. However the risk mitigation done through genius is a benefit as you're portfolio is better protected for crashes especially when you are closer to your goals.
When they do this re-balancing in mutual fund portfolio will their be any kind of charges involved and do think this monthly rebalancing is needed
No charges apart from their annual fees.
Rebalancing is required at times, especially when market corrections happen. For example covid situation or when RBI increased the interest rates or your personal finance goals achievement timelines, etc.
Thank you , also had one more doubt one of my friend has been using genius since its launch last year but still now its not given the 16% annual returns as promised ??
@@mudassarsayed4792 Market hasn't seen a tremendous growth from Jan 2022. Sensex was 61k in Jan 2022, and 60k in Feb 2023. These returns take time, it's a long-term game. One thing which I highlighted in video as well at 07:00 is ET Money will keep charging 3k per annum. In order to break even this amount, one should invest huge amounts like Rs.1 lakh per month to have ET money expense ratio as 0.25%.
How o rebalancing @@finvestomate
Rebalancing should cost you taxation impact though which you still need to pay so no specific benefit for doing it manually or through them
Please put more videos on mf bro
Sure. Here is one on mutual funds. Will keep making more! Thanks for the advice! ua-cam.com/video/ZqguCt7m5iE/v-deo.html 🙂
I think this is basically same as FoF with almost no risk for the AMC nor regulatory checks that mf have.
NJ funds alao came up with something's similar in early 2010s and same us there with other " mf base pms"
Excellent👍👏
Current genius subscription fee is ₹747/- per quarter (about 3000/- a year). That’s about 3% of 100000, only if you make that much extra interest with et money!
So even if et money is giving 15% as compared to 12% of category avg, it would equalise only if that 3% is equal to ₹ 1 lac. Which means your investment should be to the tune of minimum 33 lacs (in genius portfolios alone). Below that it is not beneficial rather harming.
Counter opinions are welcome.
Saw you posting same comment on multiple ET Money videos. But not sure what you mean by those numbers. Cany you please elaborate?
@@musi6666well he did not reply so I will,
I punched in some numbers in sip cal to proove he is talking bullshit.
So I compared two scenarios
Scenario 1: normal index investing
Scenrario 2: Et money genius investing
In scenario 1 returns expected is 12%
Time horizon is 10 years
Sip amount monthly is 20000
In scenario 2
Returns expected 15%
Time horizon same 10 years
Sip amount 19750 pm
I decreased sip amount by 250 because that will go to genius fees
According to the OP
The maturity amount would be less in scenario 2 as min investment one should do is 33lac
But as I expected the math does not match and the returs are
Scenario 1: 44 lac
Scenario 2: 52 lac
So yeah he and you are just lazy to actually do some calc or maybe you guys do not know how to.
Which I do not judge but would like you to try learning how to use sip calc. Atleast.
All the best
Dont just calculate the returns, calculate the downside risk whcih genius helps to mitigate
The thing you are missing here, and I realised I lack myself, is discipline. We humans get too emotional, get greedy or fearful and do stupid mistakes.
If this tool gives me that automation, where I can simply do SIPs in Low cost index funds and by balancing them get 16% return, then I should park my long term SIP goals here.
Definitely! That's what even I also shared at the end! If you can't do it on your own, then one may opt their services! They provide an ideal asset allocation portfolio for the long term.