My experiments with MFs

[Raj232]

Yeah. But groww pushes you towards Growth option. For a lot of funds they say "Invest more not allowed". Also, redemption through them seems to take 3-4 days.

ELSS funds do not trade as ETFs, do they ? Generally ETFs should not have any lock in period, should be traded like equity scrips / BEES, right ?

Direct option (as compared to Regular) has only 1 difference .. no middleman or agent, so no commission to be paid, and so the "Direct" scheme will quote slightly 'higher' than the 'Regular scheme' in the same mutual fund house.
.. so I ALWAYS choose "Direct Option" .. as I don't want to reduce my profits by giving to a middleman. I would also encourage other to do the same .. and growth too.. as it is easier to keep track of.

ELSS is a mutual fund and have been allowed by Govt for Tax saving purposes. So they have a 3 year compulsory lock-in. If you try to sell.. it will show as greyed out. ELSS is not available with ETF's which is an "Exchange Traded Fund" (ETF) .. ETF's have no lock-in and no tax benefit.

.. but why are we looking for tax benefit in funds, basically we want our money to grow and not need to claim some tax deduction from there. ELSS investment is up to 1.5 Lacs only per year. .. so not really much that can be saved via this method ..

 

[Raj232]

Anyone can understand / explain .. why it shows 34.4% on the top but only 19.49 in the graph.
Also, the blue box gain (28.34%) is lower than the orange one(34.4%), still the blue line is plotted above the orange line.

What is the reason .. ?

 

[timepass]

One query from me too.

Look at this. What is this T-1 for liquid schemes ??

 

[timepass]

Growth option (as compared to Regular) has only 1 difference .. no middleman or agent, so no commission to be paid, and so the "Growth" scheme will quote slightly 'higher' than the 'Regular scheme' in the same mutual fund house.
.. so I ALWAYS choose "Growth Option" .. as I don't want to reduce my profits by giving to a middleman. I would also encourage other to do the same

ELSS is a mutual fund and have been allowed by Govt for Tax saving purposes. So they have a 3 year compulsory lock-in. If you try to sell.. it will show as greyed out. ELSS is not available with ETF's which is an "Exchange Traded Fund" (ETF) .. ETF's have no lock-in and no tax benefit.

.. but why are we looking for tax benefit in funds, basically we want our money to grow and not need to claim some tax deduction from there. ELSS investment is up to 1.5 Lacs only per year. .. so not really much that can be saved via this method ..

I meant they hardly ever offer the IDCW option (not Direct versus Regular).

BTW Zerodha Largemidcap 250 has zero lock in period.

 

[Raj232]

I meant they hardly ever offer the IDCW option (not Direct versus Regular).

BTW Zerodha Largemidcap 250 has zero lock in period.

Yes, sorry .. I was meaning Direct Vs Regular..
But Growth means.. profits would be reinvested.. which is also a good thing..
In case of withdrawals, manual withdrawal can be made as per requirement and amount.

 

[Raj232]

I meant they hardly ever offer the IDCW option (not Direct versus Regular).

BTW Zerodha Largemidcap 250 has zero lock in period.

That is correct, they might be able to attract much more funds with this trick
It is not lock-in .. it is exit load (of 0%) .. but still have a management free of 0.25% per year.

 

[timepass]

Yes, sorry .. I was meaning Direct Vs Regular..
But Growth means.. profits would be reinvested.. which is also a good thing..
In case of withdrawals, manual withdrawal can be made as per requirement and amount.

Growth means only price going up, not re-investment.

Re-investment is an option in IDCW where it should ask you whether you want a payout or re-investment.

 

[timepass]

That is correct, they might be able to attract much more funds with this trick
It is not lock-in .. it is exit load (of 0%) .. but still have a management free of 0.25% per year.

View attachment 50223

No lock in, no exit load. Which means that you can use it like a 100Rs. BEES (ETF). I don't yet know how many days it needs for allotment and for redemption. If fast enough, one should be able to use for quickie index trades by following strategies like 3/15 or 5/20 or whatever.

Expense ratio of 0.25% is very low as compared to other similar funds. I don't have the figures on hand right now, but HDFC large and midcap has expense ratio of 0.89%

https://groww.in/mutual-funds/hdfc-large-cap-fund-direct-growth

Just look over the other large and mid cap funds for expense ratio.

Also, that 100Rs. min investment makes it very attractive. One can take small entries on the downside, invest bigger if it feels like a bottom.

 

[Raj232]

No lock in, no exit load. Which means that you can use it like a 100Rs. BEES (ETF). I don't yet know how many days it needs for allotment and for redemption. If fast enough, one should be able to use for quickie index trades by following strategies like 3/15 or 5/20 or whatever.

Expense ratio of 0.25% is very low as compared to other similar funds. I don't have the figures on hand right now, but HDFC large and midcap has expense ratio of 0.89%

https://groww.in/mutual-funds/hdfc-large-cap-fund-direct-growth

Just look over the other large and mid cap funds for expense ratio.

Also, that 100Rs. min investment makes it very attractive. One can take small entries on the downside, invest bigger if it feels like a bottom.

If you are planning a quick IN-and-Out .. then probably Futures might be easier..
But in case of investments for 1 - 2 yrs, ETF would be good as well. The best part is you can exit INTRADAY .. and you get the exact market value that you exited at..
In case of mutual fund, they declare 1 NAV rate at the end-of-day and your entry price could be at the high of day (since it is calculated on closing price)

 

[timepass]

Look at this. Ordered on Groww, paid on 25th morning looking at the current NAV, order placed on time so why would I get the NAV of 25th ? Why not the CMP this morning ?

View attachment 50253

How do I ascertain getting the NAV shown on the screen ? Work through MFU or Kotak ??

Though you have to pay demat charges through Finvasia, with them you would get the NAV shown on the screen, if paid before the cutoff time.

Also applied for the above through Finvasia and MFU both 500 Rs. each. Don't know if it is within the cut off time.

Edit at 1336 hrs : Also applied Rs 500 through Kotak app.

With reference to the above, I had applied through 4 sources - Groww, Finvasia, MFU and Kotak app.

Three of those have been allotted, at NAV of 25th Jan, regardless of the time I applied for.

The NAV shown on the screen was 11.18xx, but I was allotted at NAV of 11.2060. So, I didn't get what I ordered, a higher NAV or less bang for the buck.

Today, I will apply for more in Axis Arbitrage Fund IDCW direct, which is also giving out regular payouts. It is showing NAV of 11.7216 at present.

Dividend payout for Rs. 500 investment