Indian Mutual funds [India]

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dfw_north
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Indian Mutual funds [India]

Post by dfw_north »

My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
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Re: Indian Mutual funds

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dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
You might get better answers in the international sub forum.
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Re: Indian Mutual funds

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ETFs? maybe, total US, total international
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Re: Indian Mutual funds

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dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Right so a combination of Motilal Oswal Nifty 500 fund and Motilal Oswal S&P 500 fund should do the job for your nephew. He can buy them using Kuvera.
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Re: Indian Mutual funds [India]

Post by LadyGeek »

This thread is now in the Non-US Investing forum (non-US investing question). I retitled the thread for clarity.
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dfw_north
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Re: Indian Mutual funds

Post by dfw_north »

dru808 wrote: Sun Jan 10, 2021 2:47 pm ETFs? maybe, total US, total international

Thank you.. I do not believe he has access to US funds.
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dfw_north
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Re: Indian Mutual funds

Post by dfw_north »

Anon9001 wrote: Sun Jan 10, 2021 2:50 pm
dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Right so a combination of Motilal Oswal Nifty 500 fund and Motilal Oswal S&P 500 fund should do the job for your nephew. He can buy them using Kuvera.
Thank you for your response .. MOFSP500 Direct plan has .49 ter and regular plan has twice that. How can One invest via Direct plan..
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Re: Indian Mutual funds [India]

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dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Have you found the non-US section of the wiki? If not, this page may be of interest:

Investing from India - Bogleheads

India has a sub-par US income tax treaty, and no US estate tax treaty whatsoever. Assuming that your nephew is not a US citizen, for US tax reasons he will want to entirely avoid holding US domiciled funds or ETFs such as VT and VTI, and instead hold either local Indian mutual funds or other non-US (typically Ireland) domiciled ETFs. Full details in these wiki pages.
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Re: Indian Mutual funds [India]

Post by Ubersetzer »

dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Nifty 50 index funds are represent most of the market and are low cost. For example, UTI Nifty 50 has 0.1% expense. You can directly invest from Asset Management Company (AMC). If you want to invest across multiple, MFs consider a non-demat platform : Kuvera is great (Zerodha Coin is a Demat).
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Re: Indian Mutual funds [India]

Post by dfw_north »

TedSwippet wrote: Sun Jan 10, 2021 6:37 pm
dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Have you found the non-US section of the wiki? If not, this page may be of interest:

Investing from India - Bogleheads

India has a sub-par US income tax treaty, and no US estate tax treaty whatsoever. Assuming that your nephew is not a US citizen, for US tax reasons he will want to entirely avoid holding US domiciled funds or ETFs such as VT and VTI, and instead hold either local Indian mutual funds or other non-US (typically Ireland) domiciled ETFs. Full details in these wiki pages.
Thank you very much. I will check the link...
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Re: Indian Mutual funds [India]

Post by dfw_north »

Ubersetzer wrote: Sun Jan 10, 2021 6:58 pm
dfw_north wrote: Sun Jan 10, 2021 2:45 pm My nephew lives in India and started a new career. Could you please suggest low cost buy & hold funds that he can invest in.
Nifty 50 index funds are represent most of the market and are low cost. For example, UTI Nifty 50 has 0.1% expense. You can directly invest from Asset Management Company (AMC). If you want to invest across multiple, MFs consider a non-demat platform : Kuvera is great (Zerodha Coin is a Demat).
Thank you... You mean zerodha.com
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Re: Indian Mutual funds

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dfw_north wrote: Sun Jan 10, 2021 6:21 pm
Thank you for your response .. MOFSP500 Direct plan has .49 ter and regular plan has twice that. How can One invest via Direct plan..
You can use Kuvera for buying via Direct Plan. Or Zerodha but that stores Mutual Fund units in Demat format.
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Re: Indian Mutual funds [India]

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TedSwippet wrote: Sun Jan 10, 2021 6:37 pm
I would not advice owning anything other than local Indian mutual funds due to the strict foreign asset reporting requirement that owning foreign ETF's/mutual funds entails. I dug myself into a hole owning foreign ETF's and having to pay 40,000 rupees (544.67 USD) to CA as a result of foreign asset reporting. Luckily it seems that Indian mutual funds owning foreign stocks are not treated as foreign assets by Tax Department so I switched to using that.
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Re: Indian Mutual funds [India]

Post by bostonboglehead123 »

Anon9001 wrote: Mon Jan 11, 2021 2:46 am I would not advice owning anything other than local Indian mutual funds due to the strict foreign asset reporting requirement that owning foreign ETF's/mutual funds entails. I dug myself into a hole owning foreign ETF's and having to pay 40,000 rupees (544.67 USD) to CA as a result of foreign asset reporting. Luckily it seems that Indian mutual funds owning foreign stocks are not treated as foreign assets by Tax Department so I switched to using that.
Any ETF ticker names you'd recommend? Some alternatives to basic ones like SPY, VTI, VTIBX etc.
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Re: Indian Mutual funds [India]

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bostonboglehead123 wrote: Mon Jan 11, 2021 11:50 am Any ETF ticker names you'd recommend? Some alternatives to basic ones like SPY, VTI, VTIBX etc.
Motilal Oswal S&P 500 index Fund, Motilal Oswal Nasdaq 100 ETF and Motilal Oswal Nifty 500 Index Fund. There are no International Bond Funds here. I would advice to not invest in debt funds if you are Indian as the risk-return is much better for Public Provident Fund, Employee Provident Fund and also they are not taxable (EPF you have to wait 5 years before it is not taxable) compared to debt funds which are taxable with the only issue being liquidity for these.
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Re: Indian Mutual funds

Post by dfw_north »

Anon9001 wrote: Mon Jan 11, 2021 1:38 am
dfw_north wrote: Sun Jan 10, 2021 6:21 pm
Thank you for your response .. MOFSP500 Direct plan has .49 ter and regular plan has twice that. How can One invest via Direct plan..
You can use Kuvera for buying via Direct Plan. Or Zerodha but that stores Mutual Fund units in Demat format.
Thank you. Could you please let me know the difference between direct plan vs smart format?
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dfw_north
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Re: Indian Mutual funds [India]

Post by dfw_north »

Anon9001 wrote: Mon Jan 11, 2021 12:01 pm
bostonboglehead123 wrote: Mon Jan 11, 2021 11:50 am Any ETF ticker names you'd recommend? Some alternatives to basic ones like SPY, VTI, VTIBX etc.
Motilal Oswal S&P 500 index Fund, Motilal Oswal Nasdaq 100 ETF and Motilal Oswal Nifty 500 Index Fund. There are no International Bond Funds here. I would advice to not invest in debt funds if you are Indian as the risk-return is much better for Public Provident Fund, Employee Provident Fund and also they are not taxable (EPF you have to wait 5 years before it is not taxable) compared to debt funds which are taxable with the only issue being liquidity for these.
Thank you. Capital gains on motilal Oswal s&p 500 fund is 20% long term and 40 % on annual dividends? Am I right? Please advise..
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Re: Indian Mutual funds [India]

Post by Anon9001 »

dfw_north wrote: Mon Jan 11, 2021 9:34 pm
Yes Capital Gains are 20% Long Term with Inflation Indexation. I don't think 40% is correct on Dividends. The India US Double Taxation Agreement states that 25% of Dividends will be Taxed not 40%.
dfw_north wrote: Mon Jan 11, 2021 9:29 pm
Demat format is putting mutual fund units in demat account. There are no advantages to doing so I would recommend using non-demat format Mutual Fund platforms like Kuvera. Zerodha Coin is demat format. You can buy Direct Plans in both Zerodha Coin and Kuvera. The demat format doesn't effect this.
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