A Passive Folio - My 1Y of Investing!

Hi Everyone!
This is my very first post at form.valuepickr.com. Let me introduce myself briefly: I am a 21yo Senior Computer Science undergrad. I started investing in Aug’ 20 (mainly mutual funds, index funds and ETFs). Currently, I have a 30k portfolio all built out of my savings.
I would like to make this a feedback and suggestions thread on my portfolio. Here I go:
CV - Current Valuation

MUTUAL FUNDS

  1. Mirae Asset Bluechip Emerging Fund
  • Invested - 1,000/-
  • Current Value - 1,111/-
  • Abs Return - +11.41%
  • SIP - 1000/- P.M.
  1. Invesco India Financial Services Fund
  • Invested - 1,600/-
  • Current Value - 1,891/-
  • Abs Return - +18.22%
  • SIP - 250/- P.M.
  1. Axis Small Cap Fund
  • Invested - 750/-
  • Current Value - 827/-
  • Abs Return - +10.35%
  • SIP - 500/- P.M.
  1. Nippon India US Opportunities Fund
  • Invested - 2,000/-
  • Current Value - 2,270/-
  • Abs Return - +13.52%
  • SIP - 200/- P.M.

ETFs

  1. MAFANG
  • Units - 114
  • Avg Price - 48.83/-
  • Invested - 5,566/-
  • Current Value - 6,137/-
  • Abs Return - +10.27%
  1. MOM100
  • Units - 12
  • Avg Price - 24.92/-
  • Invested - 300/-
  • Current Value - 420/-
  • Abs Return - +40.23%
  1. NIFTYBEES
  • Units - 35
  • Avg Price - 156.00/-
  • Invested - 5460/-
  • Current Value - 6905/-
  • Abs Return - +26.50%

STOCKS

  1. FEL
  • Units - 100
  • Avg Price - 10.90/-
  • Invested - 1090/-
  • Current Value - 936/-
  • Abs Return - -14.50%
  1. ITC
  • Units - 5
  • Avg Price - 207/-
  • Invested - 1035/-
  • Current Value - 1283/-
  • Abs Return - +24%%

FD

  • Amt - 15k

Also, as I am new to this platform i request everyone to please me how can I take take the max out of this valuepickr.

Summary

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Thanks.
Chandan Taneja

11 Likes

Hello chandan ! Glad that you are starting very early… just a small suggestion there… its better to diversify in stocks than in mutual funds!
I think other than a large cap/index fund and a flexi cap fund you really don’t need any other type of fund to invest in!
These two categories actually cover entire BSE500 universe.

For the mix of Indian and global stock fund i would prefer PPFAS as their investment framework is legit and makes sense than most of the mutual funds.

For investing in USA etfs are best! Thats good geographical diversification.
And about stocks… i would gradually increase my exposure from mutual funds to stocks as i develop more curiosity and understanding of how businesses work.
All the best! Time is your friend

6 Likes

Hi Chandan,

Good to see at your age you are believing in passive investing and not taking any unnecessary risk.

Please note that this is my personal views and you should do research and work before taking any actions. ( here is my 2cents)

I think you are too much diversified (at your age - assuming you have day job and investing for long term). Only index fund should do the trick. I prefer nifty index fund.

You get 3 benefits.

  1. Low cost
  2. Best companies in India
  3. Reviewed and upgraded at every 6 months(not sure about frequency but I think it is half yearly) - without paying any performance fee.

So as long as India grows you should not have problem in your portfolio(again assuming long term time horizon)

Ideally you should not invest directly in stock unless and until you really love researching and want to know bits and pieces of business and the way it works ( last 1 - 1.5 years are good from returns perspective so everyone loves stock market now but you should wait at least one bear or long consolidation in market then you can test your passion)

All the best!

Thanks!

Great beginning. My advice would be to stick to just one Index fund alone in SIP mode. Build your knowledge base of equity investing and then gradually move to stocks directly.

2 Likes

Hi Chandan…good to see you have started at the this early age…my only suggestion…dont over diversify…so many funds for 30k investment is not wise… Cheers…

also share through which trading platforms you have bought ETFs ?

A great start! Learn, invest, repeat. Best wishes.

Thank you! Best wishes to you tooo!

I have a Demat account with Zerodha and I manage all my Mutual Funds through Paytm Money. I am aware of Coin by Zerodha but I just find the User Exp. of Paytm Money much better than Coin.

Even I feel that I have over-diversified my portfolio. For Eg- The correlation b/w NiftyBees and Mirae Asset Emerging Bluechip is really high. I will correct this soon. Thanks for the suggestion.

This is just my thought process, for now, to stick to some funds until I get comfortable with the Market. Thank you for your suggestion.

They said time matters exponentially. :wink:
Even I believe that I have an over-diversified portfolio and I have to correct this.
PPFAS is on my watchlist for some time now and even I believe it’s a good fund. Just short on cash for now as am still a student. All that I have invested over the year was completely from my savings and pocket money.
I was reading a really good article the other day, it suggested that: PPFAS Flexi cap fund is nothing but a joint fund of Nasdaq100 and Nifty 50. Over the years it has generated the same returns as a joint/custom fund of Nasdaq100 and Nifty50. Whereas, the mutual fund that invested into rn i.e. Nippon US Opportunities has failed to beat Nasdaq over the years. I wanted to buy MON100 (then N100) but the price per etf was too high. Then there was a split in this ETF, but I had started a SIP in the Nippon US fund by that time. :frowning: I Will act accordingly now. Thanks for your suggestion.

Hello,
Even I believe that I have a overdiversified portfolio rn. Index funds are a no-brainer. I believe investing in Nifty or Sensex Index Fund is same as investing in India as you are investing in the nation’s top notch companies.
Thanks for your suggestion. :slight_smile:

It’s great !!
you are beginning your financial journey so early.

My Suggestion :slight_smile:

  1. Too much diversified portfolio…
  2. it’s time to focus on your career & not on investing at this point.
    Spend more time on your education.
  3. Equity investment is great .
    Start buying great stocks like TCS, Infosys, Wipro, ITC, HUL

ITC is very cheap. So just go ahead keep adding till you accumulate 1000 shares…

1 Like

Hi Chandan,

A good beginning is half done. I think you had a great start and congrats for that. Everyone needs to spend some time in the market to understand his/her investing style. Based on your strengths, you will identify the path best suited for you. It can be technical/fundamental/value/momentum or mix of any of these. May be you can start with understanding different asset classes and returns expectation.

Invest in learning(some books here) and also try to find ways to increase your base capital. May be you need to invest in your education to procure more capital to invest.
I hope this post and the thread can help you with some pointers.

My Portfolio