MR RASTOGI IS A VETERAN IN HIS CAPACITY, RELIANCE MIP HAS BEEN GIVING CONSISTANT RETURNS A GOOD RECOMMENDATION VIS A VIS BANK FDS

Excellent article thanks

Dear Mr. Rastogi, thanks for sharing your views and we endorse this completely. This can be ideal for an investor who is not looking at drawing regular income from MIP for consumption purpose and hence is moving a portion to equity systematically through different modes including SWP, STP (Systematic Transfer Plan) or DTP (Dividend Transfer Plan). From operational convenience perspective, both STP & DTP can be exercised in the same AMC with best available schemes. The past simulation suggests that such practise has higher probability of adding alpha to the investor. Thanks again for sharing the views. Reliance Mutual Fund Team

if investment lump sump amount and after 1 year we strat STP till 4-5 years what is the investment idea ?

Whats your view if the investor have the view of 5yrs + & willing to have 1% average SWP with some of the best value Stocks MF schemes.(like icici Discovery, Uti DYF, etc)

Really it is not explainable how good & useful article for all. Thank you Sir, for such anice article.

Dear Mr. Ravindra Kumar, we appreciate your points of view. In our view, managing 85% in Debt & 15% in equity seperately & aligning it to different market conditions would work in case of closely advised clients. However if this preposition was to be offered in mass retail, it may find challenge in execution, hence its advisable to have MIP in mass retail that offers auto-alignment of portfolio to different market conditions thereby capturing opportunities in both debt & equity space. Thanks for sharing your views: Reliance Mutual Fund Team

Good, You still have faith in stock market ! All infrastructure shares had capital erossion of about 40 % in last four years, without any return ! Defenite return and safety is there in 5 yr. Bank FDs. Can you give itn writing the same return in 5 yr investment in Equity ? More over why should anybody take that risk and loose his hard earned savings ? What is that extra ordinary benefit the investor is getting ? It is foolish to compare it with Equity/MF.

Dear Mr. Ramanathan, we appreciate your points of view. In our perspective, the inference we draw from the article above is the length of investment tenure that leads the investment to ride through different market conditions and capture opportunities offered both in debt & equity space. Viewing returns exactly from 5 years perspective may not be advisable as point to point return is not a true indicator of the purpose & potential of the scheme especially in situation if markets levels are low. Its advisable to avoid redeeming funds at such situations & let the phase pass-by. Thanks again for sharing your views: Reliance Mutual Fund Team

I am not convinced. At the end of five years if the market is at bottom. equity part is not going to perform and returns may be much less than FD.

opting STP of 10% from MIP in equity has proved very good over a min period of 5 years .one gets good equity exposure and his capital remains intact.

Whatever Mr Hemant has explained is correct. In fact good MIPs have doubled the money within seven years and with tax efficiencies i.e. with indexation benefit the tax liability is minimal as compared to TDS on FDs. His suggestion of introducing the new comers with MIP offering to an extent is also appreciable considering the volatile returns even thru SIPs for 3 to 5 years duration.

Nice Article.

I AM NOT FULLY CONVINCED. BETTER IS 85% OF TOTAL INVESTMENT IN DEBT FUND/INCOME FUND, AND REST 15% IN DIVERSIFIED EQUITY FUND. SO GET BETTER LIQUIDITY DURING VOLATILE /FALLING MARKET. ALSO GET TAX FREE RETURN ON EQUITY FUND.

MIP CAN BE BEST TOOL FOR TRANSFERING DIV TO DIV EQUITY SCHEMES FOR BETTER POST TAX RETURNS

All said and done, I am not very sure this works in a bear mkt or a gloomily volatile scenario. What if these negative periods are reached nearer to the 4th or 5th year. In the bearish phases, I have seen the returns around 5-6% ....

thank you hemantji i hope that u keep making us update on knowledge.

highly informative

Happy to see the performance of the scheme with an article about the product. I remember having commented in this column that returns should be included in the presentation/interview for better understanding and co relating. Thanks.