Mr Vicky Mehta, senior research analyst, MorningStar India, takes you through the labyrinth of MF investments in this column.
I had invested in 1,800 units of GIC Balance Fund under Dividend Plan in 1992. Later, Canara Bank, which is now operating as Canara Robeco, took over. On January 18, 2010, it declared a 70% dividend, but refused to pay me saying that these were held under investment plan since inception. Can a fund change the mode of plan (from dividend to investment) without the holder’s consent? Please advise.
Ratnapriya Ghosh
When GIC Balance Fund migrated to the erstwhile Canbank Mutual Fund, the investors were required to choose between growth, dividend payout or dividend reinvestment plans. In its communication, the fund house had stated that if investors fail to make a choice, the growth plan would be treated as the default choice and such investments would be classified under the growth plan. Perhaps, in your case too, the failure to make a choice may have resulted in investments being classified under the growth plan.
I am a 64-year-old senior citizen drawing a monthly pension of Rs 17,700. I have invested in Reliance Equity Opportunities Fund, Reliance Vision Fund, HDFC Monthly Income Plan, HDFC Prudence, apart from post office monthly income scheme and senior citizens’ savings scheme. Rentals also contribute to my income stream. Please review my portfolio.
SC Jain
Your portfolio has a mix of assured return schemes and market-linked investment avenues (mutual funds and stocks) which is certainly positive. If you are a risk-taking investor and can take on the risk associated with market-linked investments, the portfolio seems fine. If not, you may want to consider realigning the portfolio and make a higher allocation to assured return schemes.
I have investments in four mutual funds — Reliance Regular Savings, SBI Magna Contra, UTI Opportunities and UTI Dividend Yield — through SIP route. Since these investments are over a year old, I plan to sell them and switch to other funds. Please advise.
Melwyn D’Souza
In case of investments made via the SIP route, the exit load is computed from the date of each instalment and not the date when the first instalment was invested. In terms of performance, Reliance Regular Savings–Equity and UTI Dividend Yield enjoy a 5-star rating from Morningstar, while Magnum Contra and UTI Opportunities have a four-star rating. These ratings indicate that the funds have delivered an impressive showing on the risk-adjusted return front vis-à-vis peers. As regards thematic funds like infrastructure funds, it isn’t uncommon for them to be at their best in time periods, when the underlying theme hits a purple patch.
source: www.blogger.com
Mr Vicky Mehta, senior research analyst, MorningStar India, takes you through the labyrinth of MF investments in this column.
I had invested in 1,800 units of GIC Balance Fund under Dividend Plan in 1992. Later, Canara Bank, which is now operating as Canara Robeco, took over. On January 18, 2010, it declared a 70% dividend, but refused to pay me saying that these were held under investment plan since inception. Can a fund change the mode of plan (from dividend to investment) without the holder’s consent? Please advise.
Ratnapriya Ghosh
When GIC Balance Fund migrated to the erstwhile Canbank Mutual Fund, the investors were required to choose between growth, dividend payout or dividend reinvestment plans. In its communication, the fund house had stated that if investors fail to make a choice, the growth plan would be treated as the default choice and such investments would be classified under the growth plan. Perhaps, in your case too, the failure to make a choice may have resulted in investments being classified under the growth plan.
I am a 64-year-old senior citizen drawing a monthly pension of Rs 17,700. I have invested in Reliance Equity Opportunities Fund, Reliance Vision Fund, HDFC Monthly Income Plan, HDFC Prudence, apart from post office monthly income scheme and senior citizens’ savings scheme. Rentals also contribute to my income stream. Please review my portfolio.
SC Jain
Your portfolio has a mix of assured return schemes and market-linked investment avenues (mutual funds and stocks) which is certainly positive. If you are a risk-taking investor and can take on the risk associated with market-linked investments, the portfolio seems fine. If not, you may want to consider realigning the portfolio and make a higher allocation to assured return schemes.
I have investments in four mutual funds — Reliance Regular Savings, SBI Magna Contra, UTI Opportunities and UTI Dividend Yield — through SIP route. Since these investments are over a year old, I plan to sell them and switch to other funds. Please advise.
Melwyn D’Souza
In case of investments made via the SIP route, the exit load is computed from the date of each instalment and not the date when the first instalment was invested. In terms of performance, Reliance Regular Savings–Equity and UTI Dividend Yield enjoy a 5-star rating from Morningstar, while Magnum Contra and UTI Opportunities have a four-star rating. These ratings indicate that the funds have delivered an impressive showing on the risk-adjusted return front vis-à-vis peers. As regards thematic funds like infrastructure funds, it isn’t uncommon for them to be at their best in time periods, when the underlying theme hits a purple patch.
source: www.blogger.com
