Ask me anything about becoming a good Mutual Fund investor

[Tintin]

Hi @kalpenparekh,

Is the DSP Blackrock tax saver fund different from the other ELSS funds provided by other AMC’s?

[Charlie]

Hey, what % of an MF portfolio should be directed towards debt funds? Does it even make sense buying debt funds because equity fund returns are better and equity funds are also better from a taxation point of view.

[Sanket]

Hello @kalpenparekh, I’m really glad that you are taking out time for this AMA and thank you.

I have 2 questions.

This is a common question that people in my circle ask me. With over 1500+ MF schemes out there people ask me in which fund do I invest. I usually respond saying contact your financial advisor but not everybody has access to one. So do you have any pointers for investors on how do they go about choosing a fund. Any tools, checklists etc.

My second question is about the reclassification of MF schemes. What do you think about this move by SEBI? Does this ultimately help the investors and how will this impact returns of funds going ahead

[krushna_kusale]

Which small cap mutual fund is better for long term?

[mahesh_s]

How to choose a ELSS fund for greater returns. What are all things we need to check before decide to invest in certain fund. I am new investor soon going to invest in ELSS. So kindly let us know your thoughts on this…

[Popeye]

Hello,

I’m curious, why hasn’t SEBI promoted direct mutual funds if buying direct is the right way to go about mutual fund investments?

And a slightly technical question: Experts say that a mutual fund should have a good alpha, but I’ve never understood this in detail. How do we check this detail and what is the significance of this factor?

[Somnath_Devarde]

Hi,

Which types of funds an ideal portfolio should contain? Large cap, small & midcap, debt, hybrid. How would you suggest the distribution of investment across various categories?

[Ajay_Patil]

Hi Sir, I am Beginner to Mutual fund. i want to know is there any specific date in month that we need to invest in sip regularly . as i have heard from many of guys that every month of 20th will returns good returns than other dates in the month. please do let me know and thanks in advance.

[kalpenparekh]

There is no such rule about a specific day giving better returns

I invest the day I get my Salary

Thankfully SIPs can be registered on any day

[kalpenparekh]

There are many websites which would do this comparison for you

Valueresearch is one of them

Even Zerodha would have this comparison for you

[kalpenparekh]

I prefer using a diversified fund for equity and short term fund for debt part of my asset allocation

There are periods when markets correct and mid caps become v cheap and vice versa

Difficult for you to identify such points in time hence speak to your advisor for such thematic timing

Basic thumb rule - large caps are safer than mid caps and mid caps earn higher return if you hold for more than ten years

Diversified funds are good as they invest across large mid and small cap companies

[kalpenparekh]

Sebi has defined cost structure for direct and regular plans

If you are an expert yourself choose direct plans

Else stick to an advisor and go for schemes recommended by advisors

Good advisors help you choose Right funds based on your risk time horizons and your goals

Alpha is the return a scheme makes over its benchmark

For eg dsp blackrock equity fund is benchmarked to Nifty 500 - its first role is to earn returns higher than the index

If a fund has done that 70 Pc of times in its lifetime it’s a good track record

[Spaceship]

@Spaceship

Performance wise DSP black mutual fund is on the rocks, as the name says it. Past performance has been great too.

My question is more about insider happenings in a mutual fund company.

1st- Please guide us how do you manage huge corpus & responsibility of trust for lacs of investors who have invested through your mutual fund company.

2nd- Being a fund manager is not an easy job & working on the top of those fund managers is something much BIGGER a responsibility.

What role do you play & how do you manage your team with regards to profitability? Do you have strict targets to make some 20 - 30% returns every month for your company from your team?

Yes 20 - 30% per month or maybe even much more. Because I heard mutual fund groups make much BIG money for themselves than their investors.

3rd - Do you as a company only operate by investing the money in different stocks, or do you also make money through frequent intraday/ swing trading ?( index, stocks, F&O)

4th - Do domestic institutions including mutual funds groups have access to insider news / insider trading?

For eg- Govt of india came up with recapitalization of PSU Banks. Don’t you think that many DIIs like LIC, govt institutions, PSU’s & some pvt institutions would have secretly taken long positions in banking shares being aware of all this well before govt of india broke out the news through finance minister Arun Jaitley.

5th - There are many shares like just dial, infibeam, earlier suzlon, & many more which gives suspicious moves on account of rumors, etc. Do you believe that promoters of these companies are playing big game behind the screens & many mutual funds companies are seen taking trades in such cases.

For eg, recent rumor of just dial getting merged with Google , resulted in huge upmove in the stock price & studying the bulk deals data, HDFC mutual fund group was too in the list who bought this stock that day.

6th - Do you have secret softwares, programs, technical indicators which are beyond the reach of retail traders & especially the automated programs which can perform endless trades , scalping etc all day & yield big profits everyday.

7th- There are many small caps/ mid caps hidden gems which double, triple & multiply in few months. Do mutual funds companies approach owners , management of such companies for exploring such opportunities & vice versa for mutual benefit?

8th- How can one become a fund manager & what’s an average salary range of a fund manager alongwith commission on profit making?

I would request you to answer all of these above listed queries in an open manner sharing maximum knowledge & experience.

Thanks

Waiting for your answer. Take your time. Hope you are not missing some questions.

[Ajay_George]

Weekly SIP or Monthly SIP? Which is better? or it does not matter?

[RahulN]

Which Mutual fund type is an ideal replacement to bank FDs?

[Viswanath_Kadiyala]

Please give a mutual fund of DSP with high returns !! I have lumpsum amount.What do u suggest to put total amount or SIP ?

[Ranjit_Krishnan_Nair]

How good is invest and forget strategy for Mutual Funds, provided you invest in funds by reputed AMCs?

[khiremandar]

I choose ‘Tata India Tax Savings Fund - Direct Plan’ for monthly 500Rs saving. Might it help me, 1. More returns than Recurring Deposit in any bank, 2. Learn how to SIP in MF, 3. Any other. Guide me about this fund!

[Minjesh_Patel]

dear sir

i have presently free cash around 60k.should i invest them via lump sump at this moment on higher market values r should i wait for market to go down? or i should invest them in liquid fund.

[Yash_Nigam]

how to use jenson’s alpha, sortino ratio etc to compare mfs? thanks