Suggest bank account for investing large sums in mutual funds over time.

[e0lithic]

Hi,

Currently I am contemplating opening a savings account where my primary requirement is that the account would have close to 1.5-2 crore funds which would be gradually invested in mutual funds. Any savings post expenditure from incomes would also later go into these mutual funds.

I would be primarily be moving around in a lot of small remote districts and hence a good mobile banking experience is a must. Additionally, if the TRV enables me a good debit/credit card or additional services then it is surely something to factor in.

Currently I hold an account with Axis burgundy account, icici direct for securities and HDFC infinia as my only credit card.

IDFC FIRST Wealth/private and IndusInd Pioneer looked promising since they offer good interest rates on savings account till the time the money gets vested in the mutual funds. Additionally their digital experience is quite recommended on this forum.

Any recommendation or advices to conclude to a selection would be much appreciated.

Thanks

 

[vine]

IDFC has better digital experience than IndusInd, RBL, etc.
Kotak, ICICI also have good mobile app. ( I'm told sbi is also good but I haven't used it)
But small banks are small banks. They will entice you with higher percentage.
I would suggest to stick with the big three SBI, ICICI, HDFC, and Kotak.
(I have personal bias against Axis).
However, since you have a large TRV, you can have a good relationship with the branch manager of any bank. Things will surely be better handled if you have a good relationship.
You can open an account with MFUtility or MFcentral for mutual funds.
Instead of icici direct, for stocks/options, Zerodha is best, Upstox and Angel One are also good.

 

[Deleted member 26954]

MF Utility is reliable platform for Direct MF investment (I am using from last 6 years)..It is backed by AMFI...If you invest through BANK, your expense ratio will be high and since your TRV is high, it will hurt you financially in long run. Bank employee will only provide services till you are completing their targets, once the amount is fully invested, they will treat you like normal customer.

 

[sahilgulati5]

It depends on What kind of return u r expecting , time frame of ur investment like 5yr 10yrs extra

 

[sm9811911]

Hi,

Currently I am contemplating opening a savings account where my primary requirement is that the account would have close to 1.5-2 crore funds which would be gradually invested in mutual funds. Any savings post expenditure from incomes would also later go into these mutual funds.

I would be primarily be moving around in a lot of small remote districts and hence a good mobile banking experience is a must. Additionally, if the TRV enables me a good debit/credit card or additional services then it is surely something to factor in.

Currently I hold an account with Axis burgundy account, icici direct for securities and HDFC infinia as my only credit card.

IDFC FIRST Wealth/private and IndusInd Pioneer looked promising since they offer good interest rates on savings account till the time the money gets vested in the mutual funds. Additionally their digital experience is quite recommended on this forum.

Any recommendation or advices to conclude to a selection would be much appreciated.

Thanks

Don't park this money in bank saving account. Use liquid mf. Transfer money to equity mf manually from there. Or you can set up systematic transfer plan. This will give you better interest rates than a big bank saving account.

But if you have to use bank, will suggest to use one with which you have good relations currently rather than looking at interest rates or credit card offering. Big amount big problems (fraud, kyc, etc). If there are none, for cc go with hdfc and for high interest rates go with idfc (or small fin banks, if you are not risk averse).

Last suggestion will be consider a wealth advisor.

 

[e0lithic]

Don't park this money in bank saving account. Use liquid mf. Transfer money to equity mf manually from there. Or you can set up systematic transfer plan. This will give you better interest rates than a big bank saving account.

But if you have to use bank, will suggest to use one with which you have good relations currently rather than looking at interest rates or credit card offering. Big amount big problems (fraud, kyc, etc). If there are none, for cc go with hdfc and for high interest rates go with idfc (or small fin banks, if you are not risk averse).

Last suggestion will be consider a wealth advisor.

Thanks for the insights. I went through the books "Let's talk money" and "Let's talk mutual fund" yesterday and your suggestion resonate with the books. Regarding wealth advisors do you any pointers which I can explore? Are there firms/individuals which can be trusted and what are the charges usually associated with such services?

 

[e0lithic]

It depends on What kind of return u r expecting , time frame of ur investment like 5yr 10yrs extra

Currently, I am quite young with no liabilities. Till date I have managed to build a good corpus for emergency funds, a family health insurance and a term insurance. After all the expenses I can also put in close to 2L/month additionally to mutual funds. I don't forsee any large expenses as such in the next 10 years (fingers crossed). So I can invest in 10years + time frame.

I am very new to investment so if you feel that there are other better opportunities, let me know and I would read up on those as well.

 

[sm9811911]

Thanks for the insights. I went through the books "Let's talk money" and "Let's talk mutual fund" yesterday and your suggestion resonate with the books. Regarding wealth advisors do you any pointers which I can explore? Are there firms/individuals which can be trusted and what are the charges usually associated with such services?

If you are reading such books, you don't need wealth advisors unless you are too occupied to manage.

The charges are different. Some charge % basis total assets and some charge a fixed amount.

I manage funds on my own. But if you find a good advisor let me know.

 

[msankadi]

Most of the advice has already been shared above...just one thing on the knowledge front...you can go through freefincal its a free blog ...offers good advice a bit dramatic and really good spreadsheets that will be handy for self planning

I was in similar situation to yours about 15-20 years back and based on my experience and evaluation...there is no other wealth advisor who is going to be as good as you when it comes to alignment with your goals and understanding...

 

[e0lithic]

Most of the advice has already been shared above...just one thing on the knowledge front...you can go through freefincal its a free blog ...offers good advice a bit dramatic and really good spreadsheets that will be handy for self planning

I was in similar situation to yours about 15-20 years back and based on my experience and evaluation...there is no other wealth advisor who is going to be as good as you when it comes to alignment with your goals and understanding...

Thanks. Will look into it.

 

[sahilgulati5]

Try to split ur funds into Multiple Assets like( Agriculture Land, FD, Mutual Funds, Stock,Portfolio Management services) and certainly some amt of cash in hand. With This u should be getting an avg of min 14-15% return..

 

[vine]

Thanks. Will look into it.

Freefincal website lists 'fee-only' advisors.
i.e. their fees is not commission based and not based on amount of your Corpus.
They are good. I didn't use their services but heard a lot of good reviews about a lot of them. And it looks like you do need good advice.
Also, hope you have term insurance, health insurance, emergency corpus in place , before you start investing.

 

[e0lithic]

Currently, I am quite young with no liabilities. Till date I have managed to build a good corpus for emergency funds, a family health insurance and a term insurance. After all the expenses I can also put in close to 2L/month additionally to mutual funds. I don't forsee any large expenses as such in the next 10 years (fingers crossed). So I can invest in 10years + time frame.

I am very new to investment so if you feel that there are other better opportunities, let me know and I would read up on those as well.

@vine . Yes I have ensured those before trying to jump on the investment wagon. Freefincal looked quite intimidating to begin with. Will take some time to go through everything they have to offer. Thanks

 

[msankadi]

@vine . Yes I have ensured those before trying to jump on the investment wagon. Freefincal looked quite intimidating to begin with. Will take some time to go through everything they have to offer. Thanks

He has a youtube channel too and relatively cheap guided courses for starters... Depending on your preference you can start with videos for education and ease into his blog post that

 

[vine]

IMO
You don't have to watch all the videos or read all the blogs and attend a course or two.
Google "freefincal plumbline" open the first link / latest , say Jan-Mar 2024, and you will see a few broad categories of mutual funds, where you might want to look at when you start investing.

 

[mayankpatel]

A lot of good suggestion shared above. One thing I would like to highlight is to make sure you have diversified portfolio of investment. Especially because your investment amount is significant. You should have proper assessment of your risk appetite and invest accordingly. There is no point loosing sleep over intermittent downturn. At the same time do not overcomplicate it. Simplest thing I could suggest is:

- Gold (e.g. SGB): 25%
- A good index fund (LargeMidcap250 seems promising https://www.niftyindices.com/indices/equity/broad-based-indices/nifty-largemidcap-250): 60%
- Debt fund: 15%

Percentage depends on your age and risk appetite.

And rebalance half yearly. For your amount it will be worthwhile to consult fee only advisor once. All the best

 

[Firewing224]

Hi,

Currently I am contemplating opening a savings account where my primary requirement is that the account would have close to 1.5-2 crore funds which would be gradually invested in mutual funds. Any savings post expenditure from incomes would also later go into these mutual funds.

I would be primarily be moving around in a lot of small remote districts and hence a good mobile banking experience is a must. Additionally, if the TRV enables me a good debit/credit card or additional services then it is surely something to factor in.

Currently I hold an account with Axis burgundy account, icici direct for securities and HDFC infinia as my only credit card.

IDFC FIRST Wealth/private and IndusInd Pioneer looked promising since they offer good interest rates on savings account till the time the money gets vested in the mutual funds. Additionally their digital experience is quite recommended on this forum.

Any recommendation or advices to conclude to a selection would be much appreciated.

Thanks

1) Use an A-Grade Bank. Helps in redemption process.
2) There are 2 types of financial advisors. Who will take a small cut and manage your portfolio vs who will only show you where to invest. I'm using Etica Wealth Management Services who designed my portfolio. When I want to withdraw / invest, I only tell them and funds are in my account. dm me for insights on my portfolio and I'll be happy to share how its structured.
3) Regarding TRV & Credit Card - Go to HDFC, ask to open infiniti account (dont settle for less. Either this or Infinia). tell them you'll give an initial funding chq of 1cr. See the branch manager standing out holding a bouquet of flowers for you. Saying "Jahapana, Tohfa Kabool Karo".

Honestly I'm salaried so I just keep this money using a wealth advisor and forget about it. It has given me 8.62% Ab Returns (Since Sept 23) with 19.92% CAGR. These returns are with below breakup: