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Building a Solid Equity Mutual Fund Portfolio
- Thread starter fradela
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fradela
TF Ace
Who told index funds have no risk?
For aggressive, you can go with index funds.
Don't go with Active funds.
A lot of index funds for Flexi cap, Mid cap, and small caps.
Astraea
TF Premier
@fradela I had mentioned earlier – “If you don’t want to take much risk, then stick to index funds and large-cap funds.”
Note : In earlier post I should mentioned them clearly.
What I meant to say is if someone doesn’t want to take too much risk but still wants returns in line with the benchmark then index and large-cap funds are the safer choice rather then an active fund. Equity funds will always have volatility that’s their nature it’s either passive, active or hybrid.
I was only giving a comparison:
If you want to be very aggressive and can handle risk, then go with Flexi-cap, Mid-cap and Small-cap.
But in the long term active funds may or may not beat the benchmark since they depend on the fund manager.
End of the day it’s about your risk appetite and whether you are ready to bear +/-10–15% profit/loss.
I’m not a expert but this is what I’ve understood from my own research and experience. To be honest I’ve been following this same portfolio split for almost 5 years now (started back in 2nd of Engineering college, just 3 months short of 5 years). It’s still going strong with an average CAGR of 18%+ and I’ve only switched funds recently while keeping the same allocation.
Note : In earlier post I should mentioned them clearly.
What I meant to say is if someone doesn’t want to take too much risk but still wants returns in line with the benchmark then index and large-cap funds are the safer choice rather then an active fund. Equity funds will always have volatility that’s their nature it’s either passive, active or hybrid.
I was only giving a comparison:
If you want to be very aggressive and can handle risk, then go with Flexi-cap, Mid-cap and Small-cap.
But in the long term active funds may or may not beat the benchmark since they depend on the fund manager.
End of the day it’s about your risk appetite and whether you are ready to bear +/-10–15% profit/loss.
I’m not a expert but this is what I’ve understood from my own research and experience. To be honest I’ve been following this same portfolio split for almost 5 years now (started back in 2nd of Engineering college, just 3 months short of 5 years). It’s still going strong with an average CAGR of 18%+ and I’ve only switched funds recently while keeping the same allocation.
Please share names of index funds for Flexi cap
fradela
TF Ace
Many strategy indices are equivalent to Flex cap.
For Multi cap, use this fund:
End of this each index page, list out the AMC names.
fradela
TF Ace
It was good once upon a time. Due to high volume Assets, it is a Large Cap now.
Previously they invest 35% foreign equity. Now they reduced drastically due to SEBI rules.
In Flexi cap, there is no rule. They can have 100 Large or Small or Mid.
Better go with Multi cap index fund (Mentioned above post), if you want exposure to Small cap.
Otherwise go with Nifty Large Midcap index fund or Low volatility index fund.
My MFs are only Nifty 50, Nifty 100, and Nifty LargeMidcap 250.
Yes there is considerable overalap, but mostly all of them are close to N50.
Yes there is considerable overalap, but mostly all of them are close to N50.
fradela
TF Ace
So much overlap. No need Nifty 100 and Nifty Large Midcap 205 for you.
Consider you are investing a lot of money, invest following index funds. zero overlap.
1. Nifty 50
2. Nifty Next 50
3. Nifty Midcap 150
4. Nifty Smallcap250 Momentum Quality 100
5. NASDAQ-100 ETF [US Exposure] [At that moment we can't via MFs]
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