The Mutual fund investment cannot be gifted or transferred. The only situation in which a transfer is allowed from one person to another is upon the death of the investor.
In such situation , the nominee is required to produce the death certificate of the investor along with KYC documents.
However if you wish to gift a fund, then Gift this amount of Rs. 20000 into the bank account of your brother’s son and then complete the procedure of MF investment in his name .Accordingly the objective that amount gifted in parked in mutual fund will be achieved.
However if you already have investments in mutual funds and you wish to gift out of it, then it is not possible. You have to redeem the existing mf investment and then gift the proceeds.
Motilal Oswal Nifty 50 ETF has provided returns as under : last one year 8.27% return, Last 3 years : 17.47% returns, last 5 years : 12.46% and last 10 years : 13.06 % return.
The above returns are marginally below the returns of Nifty. Since you have invested in Nifty ETF, the portfolio of your fund will be replica of Nifty and is expected to provide returns equivalent to Nifty minus fund manager’s expences.
To this extent, the scheme has provided sufficient returns.
However its returns are much lower than some of the other large cap funds, where the fund manager is at liberty to choose the scrips.
For example , Nifty India large cap fund has provided 13.83% returns during last one year ( as compared to MO Nifty 50 ETF return of 8.27)
So, you may shift your investment to Nippon India Large cap or HDFC Top 100, where the fund manager is at liberty to choose better performing scrips and bring in higher returns.
Dear Mr. Selwyn,
Since you wish to invest for about 20 years, I suggest Equity ( Large & Midcap) which can give benifits of large cap shares ( Stability plus growth ) and midcaps ( Growth).
I would suggest 3 funds to choose from:
1) ICICIPrul Large & Midcap 2) Quant Large & Midcap & 3) HDFC Large & Midcap funds. These 3 funds have good track records.
Alternatively you may go for Quant large & Mdicap fund only.
Dear Ms. Sushma,
The strategy you wish to adopt is not advisable. For example if you have been investing Rs. 10000 per month through an SIP for last 10 years, you would have capital contribution of about Rs. 12 lakhs and this may be worth Rs. 30/40 lakhs at the current valuations. Now if the market drops by 10% and you stop SIP,you will withdraw the investment at lower market value and may take hit of Rs. 4 lacs.
The whole advantage of SIP lies in maintaining discipline investment. Changing methods according to the market trends will not bring good results and you will lose the advantage of sudden rise in the market valuations.
Sir, you have sufficient long period of investing.
So I suggest you to go for equity focused funds with good track record of high performance even during a falling market and the fund manager is well experienced. You are requested to study our Categorywise fund-track record to decide about the funds.
Since you wish to invest Rs. 35000 permonth, I suggest, you go for 3 funds with allocation of Rs. 10000,10000 & rs. 15000. Do understand the returns of the Equity funds may fluctuate over the period, yet in the longer period such investment will bring in much higher returns as compared to PPF or fixed income investments.I believe in the next 3 years, your funds will start showing decent returns.
Dear Mr. Oza, You have not mentioned your question in detail.
HDFC Balance Advantage fund is open ended Nifty50 hybrid fund with very large AUM of Rs. 43079 crore. Compared to its benchmark index and other funds of its category, it is well managed and garnered higher return. Only issue is its expense-ratio is somewhat high at 0.99%. ICICI Asset allocator fund charges only 0.13% as expenses and during the period of 3 years and five years, it has earned return equivivalent to HDFC Balance Advantage fund.
However do understand that compared to Equity focused fund, Hybrid fund bring in lower returns. So you have study your overall portfolio and decide the allocation among various categories.
It is never too late. You should start now and if you plan to retire by 60, you can still invest for another 20 years which is long enough period for equity to bring strong returns.
So start investing in some good performing Equity fund. Donot just rely on last one year returns, also check the consistency of the returns for the periods of 5 years, 10 years and 20 years and you will definately find some good equity funds. you take help of our Scoreboard to identify such good funds. I suggest you allocate some of your funds to Midcap funds, or Nifty next50 funds which have offered better returns in the past.
I would say that your decision to invest in NFO is partially wrong .I am not aware, whether you have regular studies of the stock market or not. If you have regular study of the stock market, you must be aware that the markets world over are showing downtrend and in spite of this knowledge, if you have made investment in Equity NFO, then you have made a mistake.
However, if you have no knowledge of stock market trends, then your decision to invest now in NFO can be excused as Ignorance.
your thinking is partially correct. Yes, to some extent Gold is considered as an hedge to inflation and at the same time, the value of Gold fluctuates depending on many other factors, such as liquidity in the market, interst-rates by the leading economies etc. At present, I believe that due to hike in interest rates by the US federal reserve, the price of Gold are showing down trend and such downtrend will continue for next few months.
Accordingly I suggest to defer your decision to invest in Gold funds, for few months, till the down trend stops.
REITS ( Real Estate Investment Trusts) are the derivation of commercial rental yields by investment made in those properties. The rental yield as of now is not very high and the possibility of a good appreciation in your investment over a period of 10 years is not likely. Compared to REITs, the sensex and Equity funds have been doing excellently well. So in that sense, the investment in Equity funds can turnout to be more rewarding as compared to REITs.