What Investment mistakes you made that you want others to avoid?


raksrules

Well-Known Member
Veteran
How is tax calculated for MFs operating on S&P or NASDAQ holdings ? Say ICICI US Blue-chip or MO NASDAQ 100 ETF ?

I read on /r/indiainvestments that they are treated as Debt instruments so 3 years minimum holding of units required. If you sell before 3 years, it is STCG and after 3 years it is LTCG. But I have no clue whether Indexation benefits apply or not.
 

raksrules

Well-Known Member
Veteran
Thanks. Did you surrender that lic policy?

Yes I surrendered mine already but they told it will take about 10-15 days to get money. I did that last week only so waiting now. For my wife's, I will need to wait as something urgent has come up and we cannot be in our home right now.
In fact for my wife's policy now, I have a question. Her policy due date is 15th April (this includes the grace period of 1 month) so if we cannot surrender her policy before the due date, should we go ahead and pay the premium and then go ahead and cancel later?
 

becool773

Active Member
Disciple
Yes I surrendered mine already but they told it will take about 10-15 days to get money. I did that last week only so waiting now. For my wife's, I will need to wait as something urgent has come up and we cannot be in our home right now.
In fact for my wife's policy now, I have a question. Her policy due date is 15th April (this includes the grace period of 1 month) so if we cannot surrender her policy before the due date, should we go ahead and pay the premium and then go ahead and cancel later?
For the first part, it is their way of harassing customers. Send a mail to IRDA and you will have your money within 24 hours. I told you before also.
Don't pay any more money to them. Just surrender whenever you can.
 

raksrules

Well-Known Member
Veteran
For the first part, it is their way of harassing customers. Send a mail to IRDA and you will have your money within 24 hours. I told you before also.
Don't pay any more money to them. Just surrender whenever you can.

So it is ok to NOT pay premium even after the date of premium due passes?
 

VivekSood

WFH FTW!
Staff member
There are probably too many fee/taxes involved.
Try this one:

Yes taxation is complicated but they allow fractional holding of shares. You can buy shares of Alphabet by investing Rs. 1000 also. In the long term won't the returns offset the taxes/fees? One can probably bet on FAANG to be there in the next 20 years. The same is hard to say even about the Nifty 50. That flexicap fund is good but I am talking about direct foreign investment. Also iirc that fund has like 65% holdings in Indian market. If one is looking for pure foreign investment the S&P and NASDAQ index funds seem to be a better choice.
Well I was recently trying to read up this stuff but reached nowhere.
Yes. Stop PPF only PF + this fund.
What is there in place of PF for self employed? A question say one is investing via sip in an elss fund. Now say one is investing 10k each month. So, 80c limit exhausted at the end of the year Rs. 120000 lac and lock in period eg. of units bought in April'21 will be in April'24 and May'21 in May'24 and so on, right?
PPF VS equities is a 7/8% VS 12/25% comparison.
Yes. I withdrew some amount from 36 months + transactions from one of my ELSS few months ago. app/site shows "available" amount one can withdraw.
 

raksrules

Well-Known Member
Veteran
PPF VS equities is a 7/8% VS 12/25% comparison.



I understand PPF is fixed and not so great returns vs MFs which can sometimes give great returns but for diversification and maintaining their debt part, won't people invest in PPF, especially due to their EEE status.
I myself max out PPF every year (started in 2019 only) but do invest enough (at least as per me) per month via SIP in mutual funds.
 

VivekSood

WFH FTW!
Staff member

I understand PPF is fixed and not so great returns vs MFs which can sometimes give great returns but for diversification and maintaining their debt part, won't people invest in PPF, especially due to their EEE status.
I myself max out PPF every year (started in 2019 only) but do invest enough (at least as per me) per month via SIP in mutual funds.
 

becool773

Active Member
Disciple
So it is ok to NOT pay premium even after the date of premium due passes?
Yes.
Well I was recently trying to read up this stuff but reached nowhere.
You have 50k that you wanna invest somewhere for 25 years. On one hand you have FAANG with tax complications and what not and on the other hand you have Nifty 50 companies with lower tax, as of now but LTCG might be increased to 30% by the end of this year or pretty sure. I don't have to mention where the returns will be better. I hope you get my point.

The only point is if one invests for a long time in US companies from India and then migrates to some other country what will happen then? Will he/she have to sell their shares?
Problem with me is I have no idea which mutual fund is good. I don't fully understand everything and analysis also I cannot do much.
Stick to passive mutual funds then. I also believe that ppf is necessary btw.
 
Last edited:

VivekSood

WFH FTW!
Staff member

becool773

Active Member
Disciple
PPF+Equity mutual funds, isn't that a good combo? Sure the returns are low in the former but it is EEE. And has real power of compounding.
P.S. I might change my opinion once the goberment rolls in the interest rate deduction after elections. The fm is a joke.
 

t3chg33k

Well-Known Member
Adept
PPF+Equity mutual funds, isn't that a good combo? Sure the returns are low in the former but it is EEE. And has real power of compounding.
P.S. I might change my opinion once the goberment rolls in the interest rate deduction after elections. The fm is a joke.
If you take the market slump from last year, PPF/EPF came to the aid of people who needed immediate liquidity but were otherwise not following specific saving plans. You can also borrow from your PPF account for key events. In such a scenario, liquidating equity is going to be extremely costly, specially if there is a prolonged bear phase. You need some amount of security through and towards the end of your working life.

Once you cross a base figure in debt, you can put as much money in equity as you like. As historical depressions have shown, over-reliance on equity can backfire immensely at times when you need money the most.
 

VivekSood

WFH FTW!
Staff member
PPF+Equity mutual funds, isn't that a good combo? Sure the returns are low in the former but it is EEE. And has real power of compounding.
P.S. I might change my opinion once the goberment rolls in the interest rate deduction after elections. The fm is a joke.
ROI in FD / Savings account is all affected by economy, that is why MF returns (over time 7+ years) will always be more than FD and other crap.
 

raksrules

Well-Known Member
Veteran
Yes but equities (is the economy in a way) give more returns over fds over time... :)

You are right and I myself know equities is better but I personally am very “not risk taking" investor. And if I have ability to put 3L in PPF every year (for myself and wife) and still be able to invest 50K a month in equity funds, I think that should be good spread.
This is not counting something that matures in between and I reinvest that in some other scheme like bonds or something and if nothing then park in my IDFC account to get 6% interest (at least as of now).
 

VivekSood

WFH FTW!
Staff member
You are right and I myself know equities is better but I personally am very “not risk taking" investor. And if I have ability to put 3L in PPF every year (for myself and wife) and still be able to invest 50K a month in equity funds, I think that should be good spread.
This is not counting something that matures in between and I reinvest that in some other scheme like bonds or something and if nothing then park in my IDFC account to get 6% interest (at least as of now).
I understand if something like this happens in India we are doomed!


:(
 

booo

BA BA BA BABANANA
Veteran
You are right and I myself know equities is better but I personally am very “not risk taking" investor. And if I have ability to put 3L in PPF every year (for myself and wife) and still be able to invest 50K a month in equity funds, I think that should be good spread.
This is not counting something that matures in between and I reinvest that in some other scheme like bonds or something and if nothing then park in my IDFC account to get 6% interest (at least as of now).
don’t forget to live the “now”. even if you have couple if crores in your old age you wont be able to spend them on anything other than hospitals and nursing homes.
The idea of making money is to enrich life with experiences and happiness.
 
Last edited:

Top