Hello everyone, I am 35 years old IT professional, and planning to start investment in mutual funds. Based on my knowledge, I am planning to do an SIP of 10k per month for below funds. I am doing this for long term goals like retirement and kids’ (both currently 1 year old) education.
Kindly analyze this portfolio and let me know if any improvements are required. I have tried to keep this diverse as much as possible.
Kotak Emerging Equity Fund Rs. 2250 per month
Nippon Small Cap Fund Rs. 2250 per month
HDFC Balanced Advantage Fund Rs. 3000 per month
HDFC Gold Fund Rs. 1000 per month
Motilal Oswal Nasdaq 100 FOF Rs. 1500 per month
Very good to hear that you are taking the right step now.
Since kids college education is at least 17 years away, avoid investing in Balance advantage fund. Instead invest aggressively in mid/small cap funds. you could shift to less risky (debt / hybrid funds etc.,) when goal is 2-3 years away…
If you still feel that you need Balanced fund, consider restricting to 1000/month or so.
Instead of HDFC Gold fund, consider SGB as the Capital Gain is 0 when held till maturity.
it could also be bought from secondary market as well.
You could also consider Nippon India Nifty Midcap150 fund … cost effective and tracks benchmark index.
I hope you are considering DIRECT plan - Growth option in all funds.
More important, hike MF investments aggressively year on year based on your salary growth and/or optimizing expenses wherever feasible.
Thanks for your inputs. Yes I am considering “Direct - Growth” funds only. 1 SGB to buy today will cost atleast Rs. 7000 from secondary market as well. That’s why I had considered Gold Fund. Not sure then how to proceed with gold.
Let me restrict balanced fund to Rs. 1500 and put remaining amounts in midcap and small cap.
For gold, an alternative approach could be…
instead of 1K/month, try approx. 7K for every 7 months roughly… Till then park 1K /month in separate account earmarked for investment.
hope this helps.
Since you are inclined to invest in balanced fund (1.5K), try considering Aggressive Hybrid fund category (instead of balance advantage which is dynamic category).
As you are investing for goals and are beginning your journey, how about consulting a financial planner, so that you can invest with more clarity w.r.t asset allocation, return expectation, rebalancing etc. You can DIY, of course, but this would be a better option. As your knowledge and experience increase you can change your investments talking with the planner.
Quant MF is being cautious and has raised its cash allocation from ₹12269 Cr in July to ₹17102 Cr in Aug. Cash now represents 19% of AUM, the highest percentage among all mutual funds.
NIPPON INDIA NIFTY 500 EQUAL WEIGHTAGE INDEX FUND 2500
HDFC SMALL CAP 250 INDEX FUND 2500
PARAG PARIKH FLEXICAP FUND 2500
Out of these 4 are index fund because i want to minimize the involvement of fund manager and also i want to minimize the expense ratio.
My planning is to invest in these mutual fund for next 25 years and please suggest one or two more funds and also suggest funds with focus on gold and silver to add in this list.
THANKS
One of the reasons I invested in that fund is because it’s one of the top-performing large-cap funds. It beats most flexi-cap and multi-cap funds over the mid-term, and it does so with a lower expense ratio too.
Here are a few comparisons:
Nippon Large Cap Fund
5-year return: 27.72%
3-year return: 19.29%
Expense ratio: 0.74%
SBI Multicap Fund
5-year: No data available
3-year: 16.03%
Expense ratio: 0.89%
Axis Multicap Fund
5-year return: No data available
3-year return: 19.73%
Expense ratio: 0.76%
Finally, you realised it,
But let me tell you TBH, return can be generated by fluke. Few funds gave 60 to 80% return in a year but also fell 30 to 40% in this recent correction.
I believe many investors invest with a positive hope to garner good returns, but Im seeing Many fund managers are not even investing as per our expectation. No proper study doing over diversification. (80+ stock) how will you generate alpha with this high concentration baring few.
When i spoke abt motilal Many said i promote them fine let others say whatever they can, see the portfolio of their funds their style,
So Patel bro, I personally fell large cap funds you should shift 50% to probably MULTICAP or flexi cap. bcz there are much more and better alternative funds which you can substitute with it.
Again call is yours, Im just sharing my knowledge. Not as recommendation.
Thanks
(1) As far as possible, do not change Mutual Funds due to 1-2 years of poor performance.
(2) Once funds are selected and investment is done, stay invested for a long period, Say, Minimum 5-6 Years or even in some cases more than 8-10 years. You will then appreciate the returns which MF can generate.
(3) Also, give more importance to achieving your financial goals. Without defining goals, you may not able to build the corpus necessary for achieving financial goals.
(4) Always, shift from Equity Funds to Liquid or Debt funds as your financial goals approaches near. Ideally you should be fully in Debt / Liquid funds or Bank FD(s) for goals which are 3 years away. Else you will struggle to fulfill the goal if market crashes in 3rd year. This is the most important point.
Apart from this, selecting correct funds with low expense ratio and good reputed fund house should be the criteria for selection of funds.
I am not suggesting any funds here, as that is an individual choice based on his/her goals, time period of investment, and personal risk appetite.
Guys, this is just a quick and essential update. Don’t invest in Trust AMC even by mistake.. I was interested in this AMC only and only because of MIHIR sir who is CIO.
I initially faced huge embarrassment from the staff who were not even interested in promoting NFO during a small cap. Still I invested bcz of Mihir Sir,
Even this year, I felt their small cap corrected less as compared to the market I appreciated the MIHIR sir on X, and he responded to.
Here comes the plot. After Jan, they were not using this opportunity much, not even balancing stocks and their funds’ NAV of this small cap fell from 10.99 to 8.35 after having 60+ stocks diversification.
Today I wrote this in X that im not happy with the performance. Within 9 minutes, i get blocked. This is the current state of affairs of the TRUST AMC. Im attaching all these images as proof.
last week I spoke with JM AMC regarding the underperformance the team. has assured that they will arrange a call back from the Fund manage,r .i.e Asit Bhandarkar sir. This shows the AMC commitment. But here Trust they broke my trust permanently.
