General Trading Chat

[Raj232]

FINNIFTY given a great move.. anyone caught it ??

 

[bottrade]

FINNIFTY given a great move.. anyone caught it ??

I didn't it. But looking at the chart, decent trade would be on 19650CE from 65 around 1200hrs to 225 around 1400hrs.

 

[timepass]

Banknifty CEs are at a discount to the spot.

whereas the PEs are at a premium to the spot.

 

[timepass]

Systematic withdrawal is a feature in pretty much all funds, right? Whether you investment in lumpsum or SIP, you will have the option to choose systematic withdrawal. Anyway, you can find that information in product brouchure.

So, help me out here. How do I generate passive income from the mutual funds ? I want to use small/ micro amounts only.

e.g. I buy 1 share of PFC for, say, Rs. 240. Then it gives me a passive income / dividend of about 4-5 Rs. per year. I am ok with that.

How do I do that with MFs ? I want to go in with Rs. 1000 at a time of my choosing, not SIP, but when I feel that the unit is available at a good price.

 

[bottrade]

So, help me out here. How do I generate passive income from the mutual funds ?

You do your research which will help better than my rough guideline.

Dividends are not guaranteed. If the fund is regularly giving dividends in the past, it will likely give in the future just that it's not guaranteed.

Yes, I think there is provision for investing whenever you want. I guess you pick one time investment when you're starting, the amount doesn't have to be a big one (check what's the minimum for the fund you pick) and invest further whenever you feel right. General guideline is you don't withdraw more than the average annual growth of the fund, preferably about half or less (If CAGR is 12%, withdraw 6% or less per year). So that you will have both passive income and let the fund grow. If you're taking pain to find right time to invest further, take some more and find the right time to withdraw as well and go for growth fund instead of dividend fund.

 

[timepass]

You do your research which will help better than my rough guideline.

Dividends are not guaranteed. If the fund is regularly giving dividends in the past, it will likely give in the future just that it's not guaranteed.

Yes, I think there is provision for investing whenever you want. I guess you pick one time investment when you're starting, the amount doesn't have to be a big one (check what's the minimum for the fund you pick) and invest further whenever you feel right. General guideline is you don't withdraw more than the average annual growth of the fund, preferably about half or less (If CAGR is 12%, withdraw 6% or less per year). So that you will have both passive income and let the fund grow. If you're taking pain to find right time to invest further, take some more and find the right time to withdraw as well and go for growth fund instead of dividend fund.

Thanks. This is a lot. Good idea about withdrawing 50% CAGR.

How does one invest in these ? Through their website or through the broker ?

 

[bottrade]

How does one invest in these ? Through their website or through the broker ?

I invested directly through them, it was before brokers started giving MF in their platforms. I guess it's convenient to have all things in one login. If your brokers is not gonna charge, why not? If you're planning to pledge MF for margin with your broker, I guess it's better buying MF with your broker.

 

[timepass]

I invested directly through them, it was before brokers started giving MF in their platforms. I guess it's convenient to have all things in one login. If your brokers is not gonna charge, why not? If you're planning to pledge MF for margin with your broker, I guess it's better buying MF with your broker.

When I checked Finvasia's list, I found only the MFs by Aditya Capital. So I guess the broker would have their own bias regarding this.

 

[bottrade]

When I checked Finvasia's list, I found only the MFs by Aditya Capital. So I guess the broker would have their own bias regarding this.

I haven't got into the business of pledging yet. I don't know who all (Exchange/AMC/Clearing corporation/DP/Broker/SEBI) have a say in which stock/MF or any for that matter can be pledged and they do have member level limit. I don't think broker can decide on it's own in this regard. With MF broker can't liquidate and recover the money like they do for stocks. If they can't recover money when client's account goes into debit, it's bit risky for them. So the reason almost all don't accept FD as collateral.

 

[timepass]

I haven't got into the business of pledging yet. I don't know who all (Exchange/AMC/Clearing corporation/DP/Broker/SEBI) have a say in which stock/MF or any for that matter can be pledged and they do have member level limit. I don't think broker can decide on it's own in this regard. With MF broker can't liquidate and recover the money like they do for stocks. If they can't recover money when client's account goes into debit, it's bit risky for them. So the reason almost all don't accept FD as collateral.

Buying through a broker, will it be possible to define SWP ?