Southern_Cross's Portfolio

@james_kerala - Thanks for dropping by.

From March-19 to December-20, I invested in the below MFs through direct route using SIP. I did one additional SIP in March-20 for all except DSP Healthcare. I did 3 extra SIPs for DSP Healthcare in March-20. SBI Small Cap is from July-18. I stopped all SIPs in December-20.

Fund Return
Axis Midcap 39
DSP Helthcr 43
Invesco India Contra 30
Parag Parikh Flexi Cap 42
Quantum LT Eqt Value 24
SBI Small Cap 37
Overall Mutual Funds 27

In my case, my capital is fixed and did not add any incremental amounts. Now, the reason why I was comparing between my performance as Investor_MF and Investor_Stock is to check the best pathway for my portfolio. In the case of MF, the best returns come when we invest during the down cycle. After watching the carnage of Mid and Small Caps in 2018, as seen in the above table, I invested in sector/caps which were out of favour. As I cannot time the market, I opted to SIP route. If you look into the below chart , it gives you the correlation between CNXSMALLCAP(Nifty Small CAP 100 Chart) with NIFTY 50. The Small Caps peaked in 2017 and then they were down till Apr-20. If we accumulate the SIPs during the downcycle, the returns will be maximum.

Now, I cannot compare between MF and Stocks as the best case for these investments are different. Like, the SIPs in 2021 will not yield great results compared to ones accumulated in 2020. Ideally, the best case for MF investor will be putting yearly SIP as lumpsum for each 1000 points drawdown in Nifty starting from March 2020. This is because in March-2020, some of the stock prices were similar to 2013/2014. However, I added only 1 extra SIP as I felt, I may do better as stock_investor.

In Small Cap MFs, I personally like SBI Small Cap.

Lets say you invest in SIP in SBI Small Cap, the amount did not show great returns till Jul-20 from Jan-17 but after that the returns will be disproportionate. If you have long horizon and able to top up in huge drawdown cases like March-2020, the CAGR of this small cap fund is very impressive.

Hope I answered your question.

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