CAS includes full list of mutual fund holdings and their current value

sristy
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I am 28, married, and with no kids. I started investing in systematic investment plans (SIPs) in November 2014 as follows: Rs.2,500 in ICICI Pru Focused Bluechip fund,Rs.3,500 in UTI Equity, Rs.2,000 in Franklin Flexi Cap andRs.2,000 in HDFC Mid Cap Opportunities. I also made one-time investments in the following funds during market dips (2015-16): Axis Equity-growth (Rs.10,000), Axis Long-term Equity for tax saving (Rs.70,000), and ICICI Prudential Value Discovery (Rs.10,000).

I also invest in Public Provident Fund (PPF) and PF. I also have a term plan. I wish to increase my SIPs to Rs.40,000. My wife also intends to start investing an additionalRs.3,000 per month. I have no specific goals but I am looking at 10-12 years’ horizon for the MF investments.

Am I on the right path? I can bear medium risk while my wife prefers medium to low risk.

—Tapas Ruparelia

You’re doing well. A term insurance to cover life risk and regular SIPs to take care of future are the foundations for a healthy financial life. Also, you are continuing the discipline of investing in PF options, and you have chosen good funds for your mutual fund portfolio. Your current SIP portfolio consists of a large-cap fund, two diversified funds, and a mid-cap fund in a ratio of 25%, 55%, and 20%, respectively. This is a good combination. The only change that I would suggest is to add an additional mid-cap fund. You could go for Mirae Asset Emerging Bluechip fund to split your mid-cap allocation between two funds (10% each). So, you can take the total of Rs.50,000 in your SIP portfolio and spread it in these five funds in the existing proportion.

For your wife’s portfolio, you could add a balanced fund such as HDFC Balanced fund to give moderate risk addition.

What is a consolidated account statement (CAS)?

—Vinay Jain

A CAS is a statement of transactions and investments across mutual funds and depository accounts that an investor might have. Starting March 2015, the market regulator, Securities and Exchange Board of India (Sebi), instructed depository companies to take the responsibility of consolidating all the investment information of an investor (consolidated by Permanent Account Number or PAN), and sending a monthly statement to the investor. If the investor has a registered email address, this statement would be sent electronically. If not, it could be delivered to the physical address.

CAS would contain all financial transactions (buy, sell, switch) made in mutual fund folios or equity account(s) maintained by the investor. It would also include the full list of holdings (even if no transaction was conducted during the period) and their current value. Starting October 2016, Sebi has also mandated that, for mutual fund folios, CAS should carry information about commission (if any) paid to an adviser or distributor.

[“Source-Livemint”]