I am investing in mutual funds funds from past 5 years now so I started with Paragh Parikh Flexicap .with 1K and currently I am doing SIP of 30K per month to generate corpus for my kids education and our retirement in next 20-25 years. so here is my mutual fund allocation.
1.Parag Parikh Flexi cap(6500)
2.Quant Small cap(8500)
3.Nippon Nifty midcap 150 Index(10000)
4.Motilal oswal nifty microcap 250 index(5000)
though the amount investing now shows I am highly concentrated to words mid and small cap but I will be changing this based on my risk condition. If you see now my allocation across deferent sector includes.
Large Cap- 68.64
Mid Cap -20.71
Small Cap- 10.64
With a View of 20-25 years investing in Micro/Small/Mid caps seems sensible.
However, you need to be ready for the journey, these can fall 20-30%, so don’t let your emotions take over.
Hopefully, you have begun SIP in Small/Mid/Micro at least 3 Years before. If you have entered recently seeing recent performance you might be in for some disappointment. Since, these are cyclic.
Hopefully, I have added some value.
Hi @someshbiradar ,
I have been investing in the markets for about 4 years now. Just 2 cents,
I like Parag Parikh fund, it’s just that the AUM has become too big for fund to take any major positions in the company. It remains to be seen whether it continues to outperform or become a normal large cap mutual fund.
I don’t know much about Quant mutual fund. Tried studying their strategy, portfolios but could never get the confidence to invest my money in this. It is more like trading than investing.
& 4. I don’t understand why people are getting attracted to microcap Index. Index funds only make sense if we want to invest in Large caps as nifty 50 is made with already top 50 companies so it doesn’t make any sense to buy large cap mutual funds and instead people buy nifty 50 Index funds. But for small, mid and Microcaps, the quality of the company matters a lot. A company can enter into the index irrespective of the fact that it has good accounting standards or not, clean management or not, future plans or not, growing or not; just on the basis of its size. So it is only beneficial if we invest in actively managed direct mutual funds for small and micro cap categories as the choice is the company(stock picking) becomes crucial in this.
Just my opinion. Open to any constructive criticism
Certainly, it will cover all the varieties but expect no miracle in term of returns. You can make maximum 14-15% CAGR over the long term. In case you don’t want to take any risk and headache, it’s fine to invest like this.
By investing in these 6 funds you are essentially investing in 200-250 companies, for me it doesn’t make a good sense. If you really invest in any 20-30 well known/discovered companies with good business model you can easily beat all the funds.
All mutual funds (barring a few focused funds) have 40 - 60 stocks in them. Having a diversified portfolio of 150-200 stocks will easily increase your number of stocks to 150+. Investing in 20-30 well discovered companies would require one to invest in them directly and take the headache of constantly reviewing and monitoring them.
When you are investing in mutual funds, your objective is to get 12-15% returns. Since we dont have Total Market Index…through these funds , you are trying to invest in top 750 companies. Within that universe you are experimenting a bit by investing some portion in Factor index, some in momentum and some active funds. Next 10-15 years, we dont know what will be the scenario…whether Index will perform or Factor index will perform or momentum will perform or active funds will perform…Hence we are putting some portion in all segments…to get the bite of everything.
For direct stock investing , you can always research and track in 15-20 companies…
Good thinking process to start with. IMO you can look either of the following two funds 1) Groww Total Market Index Fund 2) Motilal Nifty 500 Index Fund.
Either of these will cover the broad market comprising of all caps Large, Mid, Small. So no need of unnecessary keeping headache of all different kind of funds in PF. In long term of 15-20 years Index will beat active funds. And sum total of returns will be more or less remain same in the range of 15% in either option.
Easier said than done. The investing evolves over a period of time so keep learning, churning till you get your desired fit and comfortable candidate in 3 to 4 years of time frame. I learned that investing needs periodic monitoring and there is no holy grail.
VK
Disclaimer: Not a SEBI registered advisor. Invested in PPFAS and Groww MF since inception.
From Axis MF front ending case, the impact to investors of that fund was low returns. I don’t see that happened in quant MF yet. But the fund managers may get sacked if found guilty that will have an impact on the investing philosophy leading to performance difference in future.
From: Team quant Mutual communication@quant.in To:anon@yahoo.com Sent: Monday 24 June, 2024 at 05:04:04 am IST Subject: Message from quant Mutual
Dear Investor,
Greetings from Mutual Fund
As a policy, we don’t comment on the media reports, however here is an important update to clarify some points to maintain transparency with all our stake holders .
Recently, quant Mutual Fund has received inquiries from SEBI, and we want to address any concerns you may have regarding this matter.
We want to assure you that quant Mutual Fund is a regulated entity, and we are always fully committed to cooperate with the regulator throughout any review. We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.
quant mutual fund has emerged as one of the fastest growing in the country and best performing fund houses in most of schemes. Our primary goal remains unchanged: to deliver superior risk-adjusted returns to all our valued investors. Your confidence in quant Mutual Fund is of utmost importance to us, and we are dedicated to maintaining transparency and adherence to regulatory standards.
We appreciate the confidence, faith and strength of 80 lacs plus folios and Rs. 93,000 Crore plus AUM and we believe that the same support will continue as quant’s research capabilities and analytical tools will keep our investors ahead in the curve and we remain committed to deliver superior risk-adjusted returns in the future too.
We wish to thank you once again for showcasing the continued trust in quant Mutual Fund.
quantMF shared another email regarding the issue and shared a 1hr zoom call recording of their assessment of the scenario.
Personal assessment:
I am reading “front-running”, “exits” and other keywords/accusations but what I haven’t read in any of the articles is a statement from SEBI spokesperson themselves. A statement from them would, in due time, bring this matter to an end and give clear direction to take action.
I hope I’m not overlooking anything out in this assessment.
Disc: Invested in quantMF. Not buying anymore until story develops.
