Systematic Investment Plan

[sehribabu]

Re: Good time to buy MFs? Gurus give me advice

actually you are right. MF's are supposed to be for long term buy and hold people.. But that doesnt stop you from trading them.. You can sell it just like any stock isnt it?.. you only loose 10% STT..

 

[Vicky78]

Re: Good time to buy MFs? Gurus give me advice

Apart from STT & capital gains tax you have exit loads from the fund house as well.

But the bigger loss is timing the markets. The fund manager should do that. It is very easy to lose money while timing the market.

 

[moonshaker]

Re: Good time to buy MFs? Gurus give me advice

Hi members,

I am new to MF and would like to start investing through SIP.
Right now, I have invested only in ICICI ULIP ( Rs.15,000 half yearly from January )

I have shortlisted below mutual funds, please suggest if any changes required.

1. DWS investment opportunity - 1000
2. Sundaram BNP paridas Select Focus - 2000
3. HDFC top 200 - 1000
4. SBI Magnum Tax gain - 1000
5. DWS tax saving fund - 1000

Thanks,
Chandru

 

[mayurkotlikar]

Re: Good time to buy MFs? Gurus give me advice

1. Now or ever it is never a good time for lump some investing. Always SIP!!
2. Setting a target and selling a MF is a very bad idea. MF is not a stock. it is simply a long term saving insturment. You can end up exiting too early or too late if you plan to trade in MFs. Be prepared to stay for five years in equity mfs.

Always SIP>>So do you recommend to start SIP even if lump some is available.
For example, I will get a bonus of say 24,000. Instead of investing everything right now, I can have a SIP of 24 months 1,000 Rs a month?

Not sure this might help. But your answer will clear some doubts.

 

[Vicky78]

Re: Good time to buy MFs? Gurus give me advice

Always SIP>>So do you recommend to start SIP even if lump some is available.
For example, I will get a bonus of say 24,000. Instead of investing everything right now, I can have a SIP of 24 months 1,000 Rs a month?

Not sure this might help. But your answer will clear some doubts.

Yes. But instead on your money laying idle in your bank account, you can invest the 24000 in a short term debt fund and do a STP ( Systematic transfer Plan). In STP money will be transfered from the debt fund to the equity fund within the same fund house.

So you can do a 6 month STP of 4000 each month. and for whatever amount in the debt fund you would get a yield similar to the prevailing interest rate.

 

[mayurkotlikar]

Re: Good time to buy MFs? Gurus give me advice

Will this STP not incur any tax?

 

[swama694]

Re: Good time to buy MFs? Gurus give me advice

Always SIP>>So do you recommend to start SIP even if lump some is available.
For example, I will get a bonus of say 24,000. Instead of investing everything right now, I can have a SIP of 24 months 1,000 Rs a month?

Not sure this might help. But your answer will clear some doubts.

Select a good debt fund and start a STP to a good equity fund.

 

[tanveer]

Re: Good time to buy MFs? Gurus give me advice

It is very difficult to predict the market.Timing the market is very difficult. For eg. If we think that the current level is good and now we should invest then there are lot of chances that market would go down even further.There is no good time or bad time as long as you invest for a longer duration. My advice would be to go for a SIP with a time frame of atleast 5 years.

 

[Cactus]

Re: Good time to buy MFs? Gurus give me advice

few days more.......

.......and for l t investor........shopping time in equities.

 

[swama694]

HI!


can anyone tell me if I have to pay any entry load if I do an STP from a short term fund to an equity fund with HDFC if I submit the STP application form directly?

regards

Swama