I want to invest in the HDFC Index Sensex Fund in three instances so that each of my kids can learn to save and make sip payments towards their own funds. Is it possible to open three instances of the same fund in one Demat account?
Thanks.
Hi,
If having a separate demat account for each individual is not possible, then I think you could try investing with the AMC [HDFC Mutual Fund, in this case] directly and creating a separate folio - each for a specific purpose, since I do not think it is possible to demarcate units held in a demat account.
Another way, would be to invest in the variants of the same scheme - like Dividend/Growth, Regular/Direct etc., if it is necessary that you want to hold the units in a demat account, but depending on the circumstances, this might not be efficient, either in terms of taxation or returns involved.
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Thanks Pratist
Sorry but please don’t do this, this is a bad idea. You’ll lose more money in taxes and expenses than necessary.
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We’ll soon have a goals feature. You can make one investment a d tag it to multiple goals that will take care of the problem.
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If investing in index funds you can invest in the same index fund by different fund houses as well.
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There are atleast 5 funds tracking the sensex. Yes HDFC is the largest in terms of AUM, but that doesn’t matter much in an index fund. Expense ratios are more or less the same, tracking error is the only parameter that differentiate these. But that too is miniscule, and shouldn’t matter much in a long enough time horizon
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Do we have any ETFs of sensex ?
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Yes we do have a few. But volumes are no way near top nifty etf’s. For any etf, volumes & low buy/ask spreads are the key
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Can u pls name them ?
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Sensex etf’s
Find below the list of all the etf’s in India. Be informed that not all etf’s have volume or spread like Bank Nifty or Niftybees. Tread with caution
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Absolutely true. If one wishes to have such hard separation, one could create separate demat accounts in the names of their minor children, operated by the guardian and AFAIK, this is perfectly fine. OTOH, such hard separation is not without inconvenience, as these are effectively separate accounts. Instead, have clear split (in the estate management or will sense) of the investment against your children, and involve them in your investment decision making, role-playing, explaining the stuff from the excellent Zerodha Varsity. Hopefully, by the time they are old enough to operate their accounts, they’d have developed interest and understanding of how to make judicious investment of the estate passed on to them.
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