Mutual Fund Q&A, Bharat 22 ETF & SIP Closure, November 17, 2017
Date: 18-11-2017 Views: 992
In this video, we answer viewer questions on "listing gains" for Bharat 22 ETF and SIP closure
Edited Highlights
0:25 In this video, we take up mutual fund question by Anand Kumar who wants to know whether to buy Bharat 22 ETF for "listing gains"
0:34 We also take up the question of Rajat Arora who wants to know how to get the money back after his 5-year SIP gets over
1:26 When you are looking for listing gains, you are thinking like a trader, quickly buying and selling for gains
1:35 You do that with shares and not mutual funds
2:07 When you don't want to bother about picking individual stocks, you invest in mutual funds since the fund manager is doing it for you
2:18 The reason you are going into ETF is that you don't even want to worry about investment calls made by fund managers
2:37 In an ETF, like Bharat 22 ETF, the investment is made in stocks comprising the index in the same proportion as in the index
2:18 Since ETF is a passive investment, you are unlikely to make large short-term gains
2:37 In an ETF, like Bharat 22 ETF, the investment is made in stocks comprising the index in the same proportion as in the index
2:49 Since ETF is a passive investment, you are unlikely to make large short-term gains
2:59 Even if you make large short-term gains, you will end up paying 15% short term capital gains tax
3:18 This tax is applicable to equity investments of less than one year
3:47 Rajat can get his money back after ending his 5-year SIP. However, if it is an ELSS, each SIP instalment has a lock-in of three years
3:54 There you can't access all your money together. The instalments in the lock-in period will be out of bounds
4:39 For equity SIPs, the instalments in the fifth year would be subject to short-term capital since the investments would be less than one year old
4:48 There will be no tax on the capital gains from other instalments since they will be subject to long term capital gains tax, which is nil
5:09 When you want to stop the SIP, you tell your bank to stop the funds transfer. You will need to intimate your fund house and advisor who kicks off the redemption procedure
5:29 If you have bought it directly from the fund house, you could visit the fund house website
