Last Updated on September 11, 2021 at 7:05 pm
No, this is not a click bait. I am being serious. There are several benefits to stopping your mutual fund SIPs and manually investing. I am working on an ebook – Mutual Fund FAQ: The Basics – that will provide short, easy to understand answers to 100+ common and basic questions that new investors ask. In parallel, I am also making a short video answer to each of the questions covered. This is the second part.
In the first part, we considered
(1) What is an equity mutual fund and a non-equity mutual fund? (2) What is a mutual fund NFO? Should we invest in NFOs?
(3) What is a debt mutual fund?
🔥Secure your future with our Robo-advisory tool trusted by over 3,000 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
(4) Can a mutual fund provide regular income?
Do start there if you have not done so: Mutual Fund Basics FAQ: Video Series – part one
In the second part, we discuss the following:
1: Growth Option or Dividend Option? Which Type of Mutual Funds should I choose?
2: Can I get my money back from mutual funds? How?
3: Do Mutual Funds offer any interest?
4: Can I book only profits from mutual funds?
5: How do mutual fund redemptions work when I make multiple investments? FIFO
6: How are mutual funds taxed? (Latest rules – 2018)
7: What is the grandfathering rule for Equity Fund LTCG taxation? (previously published)
8: What is the difference between a mutual fund SIP investment and a lump sum investment?
9: What is a mutual fund dividend?
Notice that many (if not all) of these videos revolve around mutual fund units. Stop thinking about SIPs and lump sums and think about mutual funds as the sale and purchase of units.
Benefits of stopping your mutual fund SIPs & manually buying units
1) You become more disciplined.
2) You finally understand what a SIP actually is and that it is no different from a lump sum investment.
3) You recognise that you are buying and selling mf units.
4) You understand profit and loss and taxation rules better.
5) You can manage your portfolio better. You control when you invest, where you invest and you recognise that you simply cannot keep investing hoping it will all turn out okay in the end as the sales guys claim. Want an example? Here: Why we need to gradually pull out of equity investments well before we need the money!
Sure, sure the sellers will crib and say behavioural finance this and behavioural finance that. They can all go jump for all I care.
1: Growth Option or Dividend Option? Which Type of Mutual Funds should I choose?
2: Can I get my money back from mutual funds? How?
3: Do Mutual Funds offer any interest?
4: Can I book only profits from mutual funds?
5: How do mutual fund redemptions work when I make multiple investments? What is the FIFO rule?
6: How are mutual funds taxed? (Latest rules – 2018)
7: What is the grandfathering rule for Equity Fund LTCG taxation? (previously published)
8: What is the difference between a mutual fund SIP investment and a lump sum investment?
God that is an awful screengrab!
9: What is a mutual fund dividend?
By the way, I have several videos on the freefincal youtube channel you can subscribe (and click the bell icon) to receive instant notifications.
In case you missed my Index investing options in India seminar, here it is
Have a go0od weekend!
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
Use our Robo-advisory Tool to create a complete financial plan! More than 3,000 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
🔥Join our community of 9000+ users! 🔥Avail massive discounts on our courses + freefincal investor circle!
Track your mutual funds and stock investments with our Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds, ETF screeners, as well as momentum and low-volatility stock screeners.
You can follow our articles on Google News
We have over 1,000 videos on YouTube!
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth!
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalised investment advice. We can write a detailed article without mentioning your name if you have a generic question.
About The Author
Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 14 years of experience publishing news analysis, research and financial product development.
Connect with him via Twitter(X) LinkedIn YouTube
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
Our book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Connect with us on social media
Our publications
You Can Be Rich Too with Goal-Based Investing
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
Your Ultimate Guide to Travel
