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Showing posts with label modi. Show all posts
Showing posts with label modi. Show all posts

Index Funds vs Actively Managed Mutual Funds

There is an ongoing debate in India about Index Mutual Funds Vs Actively Managed Mutual Funds. Is the debate worth it? Which type of Mutual Funds are better for Indian market? Is Indian market mature enough to switch to Index Funds across all segments of Mutual Funds? Who is the winner?


What are Index Funds?

Index funds, as the name suggests, are the funds or the schemes that invest in a particular index. These funds purchase all the stocks in the same proportion as the index it is bench-marked to. This means the scheme will perform in tandem with the index it is tracking. For example, if an index fund is bench-marked to Nifty 50, it will buy all the 50 stocks in the Nifty index in the same proportion as Nifty 50.

Some examples of popular Index Funds include NSE Nifty 500 TRI, S&P BSE 100 TRI, NSE Midcap 100 TRI, S&P BSE Small cap TRI. Big institutions such as the Employees Provident Fund Organisation (EPFO) also invest through index funds rather than actively managed funds. Such funds are process driven rather than person driven. And the reason is obvious. These funds invest in an index and the manager doesn’t have to choose the stocks to invest. These are, therefore, also known as Passive Funds.

What are Actively Managed Funds?

Actively Managed Funds or Active Funds, or simply referred as 'Mutual Funds' are just the reverse of Passive Funds. These are the most preferred route for Mutual Fund investments in India as on date. In an active fund, the fund managers choose the stock to invest based on the goal of that fund. Here, the manager tries to beat the market by choosing better stocks. Nevertheless, the problem with active funds is that the return on these funds depends on the goal and efficiency of the fund manager. Moreover, even if you are able to find a good fund with a coherent manager, still there is some danger of what might happen in the case the manager quits and moves to some other company. Tracking the manager along with the fund becomes a headache for many investors. Since these funds have more freedom and flexibility on investments, they are expected to outperform the index funds.

There are hundreds and thousands of Actively Managed Funds to chose from. Some of the examples are ICICI Pru Value Discovery Fund, Reliance Small Cap Fund etc.

Why Index Funds are preferred?

1/ Low Total Expense Ration (TER)

These funds incur significantly lower expenses than actively-managed funds. For example, UTI Nifty Index Fund has an expense ratio of 0.20 per cent, whereas actively-managed funds may charge around 1 per cent on direct plans and around 2 per cent in regular plans.

2/ No dependency on Fund Manager

In the index funds, the stocks are not picked by the fund managers. These funds are merely copying the index. That’s why even if the fund manager of an index fund quits, it won’t create any havoc (unlike actively managed funds).
3/ Easy Selection of Funds
For the active funds, you need to read and understand the reason why the fund manager believes any stock can perform well in future. And this can be a very tedious job. On the other hand, the stock selection in the index fund is quite straightforward.



Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

Mutual Fund Investors And Blind Fund Managers Following

Are you Mutual Fund Investor? Are you following Fund Managers cautiously along with the funds they manage? Are you switch the funds whenever there is a change in Fund Manager? Read these facts about Fund Managers before you act on your investments.


Let us understand few untold or unshared stories about Fund Managers.

# They need new theme and stories to accumulate AUM

Yes, to be in the market they have to float new stories and new themes. This way they attract new investors. With boring only 5-10 funds, how can they accumulate the AUM? How can they sustain in such a competitive business?

Therefore, once in a while they come up with the theme or stories to attract and float the new fund offer (NFO). Advisers or middlemen brainwashed with lucrative NFO commission. Finally, scapegoats will be investors.

# Equities will work in the long run

Yes, definitely and none have the second view on that. However, to sustain in the long run as an investor, it needs a tremendous behavior training and mind control.

Sadly your fund manager will not teach you such lessons. Also, they do not define what is the meaning of the long term. Hence, for few investors, it maybe 3-4 months, 3-4 years or 10-15 years.

# Have you heard Fund Managers confession?

Have you heard somewhere that Fund Manager came up and confessed his wrong theme selection, wrong stock selection, wrong entry or understanding the market wrongly?

In my view, they never do that. They have every reason ready to defend of what they did (even if it is wrong). They are also human beings. Doing errors is human nature. What if we assume that during a role as our fund managers they never did any mistake? Is it believable?

# Do they suggest you to exit from equity?

Have you ever heard from Fund Managers suggesting you that you must exit from equity NOW? Exit may be due to your nearing of financial goal or high market valuation.

They never say you exit. However, they defend at each level the growth story of India whether the market PE is at 10 or 100 level. Because at the end they need AUM to run their show. How can they themselves suggest you exit and reduce the AUM?

# They predict always a POSITIVE story

No matter whether your goal is 2-3-5-10 years, for them it is always a positive equity story and forces you to invest. They never confess that their macro or microeconomic views MAY be wrong. Instead, they talk with confidence as if everything is happening as per their term.

Sadly it does not happen in this way. Including the Fund Managers, we all humans. While expecting future scenarios, they may or may not happen. However, they act like GODs who knows everything in advance.

# They defend the expense ratio

Today morning I was reading an article. In that article, they compared the Liquid Funds returns with other Debt Fund types. It was shown that Liquid Funds with less than around 0.2% expenses, generated around the same or more return than the other types of debt funds during the last period of 1 Yr, 5 Yrs and 10 yrs.

These are the few bitter truths which you must digest before investing in Mutual Funds or start following Fund Managers like their fans. Stick to your basics of investments. Mutual Fund Companies, Fund Managers and Advisers need money from you to run their show. Hence, they floated these many 1000+ funds. If they are so caring towards your need, then they might have satisfied with 5-10 funds in each Mutual Fund Companies.

 We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927

Capitalstars is a SEBI registered investment advisor. Schedule a call with Capitalstars investment consultant or drop a mail at backoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927

Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

DSP Mutual Fund has Announces Dividend under its schemes

DSP Mutual Fund has announced 27 September 2019 as the record date for declaration of dividend in the following schemes. The proposed dividend on the face value of Rs 10 per unit (except for DSP Ultra Short Fund, which has a face value of Rs 1000 per unit) will be:


DSP Equity & Bond Fund - Regular Plan - Dividend & Direct Plan - Dividend: 0.210 each.
DSP Government Securities Fund - Regular Plan - Dividend:
Individuals & HUF: 0.738690
Others: 0.684031
DSP Government Securities Fund - Direct Plan - Dividend:
Individuals & HUF: 0.766855
Others: 0.710112
DSP Savings Fund - Regular Plan - Dividend:
Individuals & HUF: 0.333797
Others: 0.309098
DSP Savings Fund - Direct Plan - Dividend:
Individuals & HUF: 0.344890
Others: 0.319370
DSP Ultra Short Fund - Regular Plan - Dividend:
Individuals & HUF: 13.877796
Others: 12.850913
DSP Ultra Short Fund - Direct Plan - Dividend:
Individuals & HUF: 15.273203
Others: 14.143068
DSP Regular Savings Fund - Regular Plan - Quarterly Dividend & Direct Plan - Quarterly Dividend:
Individuals & HUF: 0.166470 each.
Others: 0.154152 each.
DSP Banking & PSU Debt Fund - Regular Plan - Quarterly Dividend:
Individuals & HUF: 0.209830
Others: 0.194304
DSP Banking & PSU Debt Fund - Direct Plan - Quarterly Dividend:
Individuals & HUF: 0.217105
Others: 0.201040
DSP 10Y G-Sec Fund - Regular Plan - Quarterly Dividend:
Individuals & HUF: 0.252113
Others: 0.233458
DSP 10Y G-Sec Fund - Direct Plan - Quarterly Dividend:
Individuals & HUF: 0.254922
Others: 0.236059
DSP Low Duration Fund - Regular Plan - Quarterly Dividend:
Individuals & HUF: 0.319751
Others: 0.296091
DSP Low Duration Fund - Direct Plan - Quarterly Dividend:
Individuals & HUF: 0.331780
Others: 0.307230
DSP Corporate Bond Fund - Regular Plan - Quarterly Dividend:
Individuals & HUF: 0.239507
Others: 0.221785
DSP Corporate Bond Fund - Direct Plan - Quarterly Dividend:
Individuals & HUF: 0.243973
Others: 0.225920


We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
Capitalstars is a SEBI registered investment advisor. Schedule a call with Capitalstars investment consultant or drop a mail at backoffice@capiltalstars.in and we will get in touch with you. You may also call us on 9977499927

Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

अब वॉट्सऐप के जरिए करें म्युचुअल फंड में निवेश, आसान है प्रक्रिया


नई दिल्ली. अब तक आप वॉट्सऐप का इस्तेमाल सिर्फ चैटिंग और फोटोज-वीडियोज भेजने के लिए करते रहे होंगे। अब आप इसके जरिए म्युचुअल फंड में भी निवेश कर सकते हैं। कई म्युचुअल फंड कंपनियों और इन्वेस्टमेंट प्लेटफॉर्म ने ग्राहकों की सुविधा के लिए वॉट्सऐप के जरिए निवेश करने का फीचर ऑफर किया है। महज चंद स्टेप्स में आप अपने वॉट्सऐप के जरिए म्युचुअल फंड में इन्वेस्टमेंट कर सकते हैं। वॉट्सऐप के जरिए निवेश की सुविधा का इस्तेमाल करने से पहले बस एक बात का ध्यान रखना जरूरी है कि आपने KYC औपचारिकताएं पूरी कर ली हों।

1. शुरुआत निवेश की प्रक्रिया की शुरुआत के लिए सबसे पहले सर्विस प्रोवाइडर की वेबसाइट पर जाएं। यहां अपना मोबाइल नंबर डालकर नियम और शर्तों को स्वीकार करें। कुछ सर्विस प्रोवाइडर्स ट्रांजैक्शन की शुरुआत के लिए निवेशक से एक मोबाइल नंबर पर मेसेज भेजने के लिए कहते हैं।

2. शर्तें यह सुविधा सिर्फ मौजूदा रेजिडेंट इन्वेस्टर्स के लिए उपलब्ध है जो सिंगल होल्डिंग फॉर्मेट (इस तरीके में जॉइंट होल्डिंग सपॉर्ट नहीं मिलता) में निवेश करना चाहते हैं। पॉलिटिकली एक्सपोज्ड व्यक्तियों को भी इस सुविधा के जरिए निवेश की अनुमति नहीं है।

3. KYC वेरिफिकेशन जैसे ही आप नियम व शर्तों को स्वीकार कर लेते हैं, तो आपके फोन पर एक मैसेज भेजा जाता है, जिसमें KYC वेरिफिकेशन के लिए पैन नंबर पूछा जाता है। सर्विस प्रोवाइडर द्वारा यह पुष्टि करने के लिए पैन की जांच की जाती है कि इन्वेस्टर केवाईसी अनुपालक है।

4. निवेश की जानकारी आप एक मुश्त रकम या फिर SIP के जरिए निवेश की शुरुआत कर सकते हैं। आपको उस स्कीम को चुनना होगा, जिसमें आप निवेश करना चाहते हैं। इसके साथ आपको यह भी बताना होगा कि आपको कितना पैसा निवेश करना है और इसकी आप कितनी किश्तें भरेंगे। इसके बाद ऑर्डर समरी जेनरेट होगी, जिसमें आपको डीटेल्स को वेरिफाई या एडिट करना होगा।

5. भुगतान वेरिफाई करने के बाद आपके मोबाइल नंबर पर एक OTP भेजा जाएगा। इसके बाद आपको URN रिसीव करने के लिए OTP एंटर करना होगा। SIP ट्रांजेक्शन को एक्टिवेट करने के लिए बैंक के साथ URN रजिस्टर कराना होगा। ये औपचारिकताएं पूरी करने के बाद आप आसानी से वॉट्सऐप के माध्यम से म्युचुअल फंड में निवेश कर सकेंगे।


Investment  trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647
For more details call on 9977499927 or visit our website www.capitalstars.com

How to download LTCG Tax Statement of Equity Mutual Funds?

We all know that effective from 1st April 2018, we have to pay tax on equity mutual funds if there is LTCG. However, the biggest task is how to calculate or identify the NAVs. To make your life simple, we can now download LTCG Tax Statement of Equity Mutual Funds.


Effective from 1 April 2018, equity mutual funds and direct equity investments will attract 10% long-term capital gains (LTCG) tax on gains exceeding Rs1 lakh a year.
Before proceeding further, let us first understand the taxation of Mutual Funds.

3 Factors that determine the Mutual Fund Taxation

First, let us understand what are the factors that determine the Mutual Fund Taxation. The three major part of these are below.

# Your Residential Status-Resident or Non-Resident (NRI)

Your tax will be based on your residential status. If you are resident then the taxation rules will be different and if NRI then it differs. Hence, first, you have to make sure of what is your residential status.

# Types of Funds-Equity Funds or Non-Equity Funds-

Any fund which invests 65% or more in equity is called as Equity Fund. For example, large-cap funds, multi-cap funds, small and mid-cap funds or equity-oriented balanced funds (where the equity exposure is 65% or more) are all called equity-oriented funds.
If the equity portion is less than that, then they are all treated as debt funds or non-equity funds. For example liquid funds, ultra-short term funds, short-term funds, income funds, gilt funds, debt-oriented balanced funds, gold funds, fund of funds or money market funds.

# Holding periods of Investment–

The holding period for Equity and Debt Funds will be different for taxation purpose. For equity funds, if the holding period more than a year, then it is called long term. If the holding period is less than a year, then such equity mutual funds holding period is considered as short term. Whereas in
Whereas in the case of debt funds, holding period more than 3 years is considered as long-term. If holding period of debt funds is less than 3 years, then it is considered as short-term and taxed accordingly.

How will the LTCG Tax on Equity Mutual Funds be calculated?

After Budget 2018 announcement, as you are aware that you have to pay 10% LTCG Tax on Equity related products also. Below is the method to calculate the LTCG Tax on Equity Mutual Funds be calculated 

How to download LTCG Tax Statement of Equity Mutual Funds?

Now this above Budget 2018 announcement made the date 31st January 2018 as the most important date for all equity and equity mutual fund investors. Because based on the value of as on 31st January 2018, you have to pay the LTCG Tax.
Hence, it is a cumbersome task for mutual fund investors to mark that date and identify the NAV and the gain as on 31st January 2018.
In order to avoid such difficulty, CAMS and Karvy came with the LTCG Tax Statement of Equity Mutual Funds. Using this feature you can easily download the values and calculate your tax.
As of now, CAMS and Karvy started this facility and in coming days remaining R&T Agents will also start providing this statement.
  1. HDFC Mutual Fund
  2. DSPBR Mutual Fund
  3. Birla Sunlife Mutual Fund
  4. HSBC Mutual Fund
  5. ICICI Prudential Mutual Fund
  6. IDFC Mutual Fund
  7. IIFL Mutual Fund
  8. Kotak Mutual Fund
  9. L&T Mutual Fund
  10. Mahindra Mutual Fund
  11. PPFAS Mutual Fund
  12. SBI Mutual Fund
  13. Shriram Mutual Fund
  14. Tata Mutual Fund
  15. Union Mutual Fund
Hence, if you used CAMS online platform to link Aadhaar to Mutual Funds folios online, then it means that you automatically linked to all Mutual Funds which you are holding in these above listed mutual fund companies.
Along with CAMS, there are other Transfers Agents and they are as below.
  • Karvy Computers (Provides services to rest of AMCs)
  • Franklin Templeton International Services (Provides services only to Franklin Templeton Mutual Funds)
  • Sundaram BNP Paribas Fund Services (Provides services only to Sundaram and BNP Paribas Mutual Funds)
In CAMS portal you will find two types of statement to download LTCG Tax Statement of Equity Mutual Funds. They are as below.

# Consolidated Grandfathered Statement of Equity Mutual Funds

In this statement, you will come to know the NAV, Unit Balance and Fair Market Value as on 31st January 2018. The statement looks like below.

# Capital Gain Statements of Equity Mutual Funds

The enhanced Capital gain/loss statement will allow investors to view the consolidated capital gains/losses across all mutual funds that are serviced by CAMS. Along with providing short-term and long-term capital gain /loss, the statement will also provide the original cost and the NAV as on 31st January 2018.
You can download the same under myCAMS—>Statements—>Realised Gains.




Both these statements are served as part of CAMS “mail back services” from CAMS website. Hence, you will receive both statements to your registered email id and it is completely free.

How to download LTCG Tax Statement of Equity Mutual Funds from Karvy?

Now Karvy also started an option to provide the LTCG Tax Statement of Equity Mutual Funds to unitholders where Karvy is R&T Agents.
You have to visit this link of KARY. You have to provide the registered Email Id and enter the new password. Then you have to select the time period of the statement. Then you can download the statement easily.
As I said above, as of now CAMS and Karvy started this facility. Once other R&T Agents start this, then I will update this post again.




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