How many mutual funds do you invest in?

[sumit_yadav]

I started investing in 2012 and over time, I have made investments in 29 mutual funds. Currently, I am only investing in 5 Mutual Funds via SIPs across different categories. I want to consolidate my current investments. What approach should I take?

1. SWP (Systematic Withdrawal Plan)
2. Redeem all at once
3. STP (Systematic Transfer Plan)

 

[BVCBVC is verified member.]

I started investing in 2012 and over time, I have made investments in 29 mutual funds. Currently, I am only investing in 5 Mutual Funds via SIPs across different categories. I want to consolidate my current investments. What approach should I take?

1. SWP (Systematic Withdrawal Plan)
2. Redeem all at once
3. STP (Systematic Transfer Plan)

1. SWP ideally suitable for people who are planning to retire or retired. (if you have large corpus and if you want to enjoy the life you can do this)
2. Redeem it if you need funds or worried about recession (Park it in Debt funds or Bonds)
3. Same as 2 (If you want to protect the corpus and worried about volatility)

 

[sumit_yadav]

1. SWP ideally suitable for people who are planning to retire or retired. (if you have large corpus and if you want to enjoy the life you can do this)
2. Redeem it if you need funds or worried about recession (Park it in Debt funds or Bonds)
3. Same as 2 (If you want to protect the corpus and worried about volatility)

It sounds like if I want to continue to stay invested, I don't have the option to get rid of the junk that I have collected in these years. The funds have become difficult to manage/ track.

 

[devine_mortal]

1. SWP ideally suitable for people who are planning to retire or retired. (if you have large corpus and if you want to enjoy the life you can do this)
2. Redeem it if you need funds or worried about recession (Park it in Debt funds or Bonds)
3. Same as 2 (If you want to protect the corpus and worried about volatility)

For 1 and 2, you'll have to pay capital gains tax. For 3, if the switch is between the funds of same house and category, i.e. equity to equity, then no tax otherwise it'll be taxable.

 

[sumit_yadav]

For 1 and 2, you'll have to pay capital gains tax. For 3, if the switch is between the funds of same house and category, i.e. equity to equity, then no tax otherwise it'll be taxable.

STP is always in the same fund house and technically they sell and buy the MF units.

 

[sri_cc]

1. SWP ideally suitable for people who are planning to retire or retired. (if you have large corpus and if you want to enjoy the life you can do this)
2. Redeem it if you need funds or worried about recession (Park it in Debt funds or Bonds)
3. Same as 2 (If you want to protect the corpus and worried about volatility)

great points, one more thing I would consider is, taxes and make redemptions more efficient considering them
upto 1.25L, there are no LTCG taxes, you can make use of this

 

[sri_cc]

It sounds like if I want to continue to stay invested, I don't have the option to get rid of the junk that I have collected in these years. The funds have become difficult to manage/ track.

if you want to stay in equity itself, you can transfer the money from all the junk funds to your main 5 funds
basically, redeem all other funds and then invest the same into these 5 funds
you might need to pay taxes according to your situation
consider this a good lesson, even I was in the same boat when I started, about 15 funds, but right now I only have 3
all the best

 

[sumit_yadav]

if you want to stay in equity itself, you can transfer the money from all the junk funds to your main 5 funds
basically, redeem all other funds and then invest the same into these 5 funds
you might need to pay taxes according to your situation
consider this a good lesson, even I was in the same boat when I started, about 15 funds, but right now I only have 3
all the best

Thanks! Taxes (LTCG) is the penalty for making such mistakes. Life Lesson!

 

[cardio_guy]

I have majority of the money in debt instruments like EPF, PPF, SCSS, PMVVY, Money market funds etc.

In equity, I just have 3 mutual funds:

• ICICI Largemidcap 250 index fund
• Axis Nifty 100 index fund
• ICICI Nifty 50 index fund.

 

[fradela]

Too much funds spoil your wealth.
Max 7 index funds enough for Equity Portfolio.
One mutual fund is enough for Debt Portfolio along with EPF and VPF.

 

[Pradumya]

Too much funds spoil your wealth.
Max 7 index funds enough for Equity Portfolio.

Too many funds and 7 index funds in a single line seems like
Itne saare funds se acha Total market index fund utha lete

 

[GGGGGG]

I started investing in the mutual fund in the year 2020 (just before COVID) with very small capital and dipped - stopped investing, withdrew the remaining amount from MF - poor decision when I reflect now. Again started in 2022/2023 and have continued. The distribution looks like as following:

 

[fradela]

Too many funds and 7 index funds in a single line seems like View attachment 71930
Itne saare funds se acha Total market index fund utha lete

I said maximum. Min 1 fund is enough for Equity.
If you have small amount, then go for 1 Equity Index fund is enough.
If you are HNI and above, max 7 is enough for well diversified including domestic and international.
It all depends on your investment amount.

Debt:
If you are small investor, EPF and VPF (optional) enough.
No need any Debt mutual funds.

 

[fradela]

Too many funds and 7 index funds in a single line seems like View attachment 71930
Itne saare funds se acha Total market index fund utha lete

I don't think it is a wise decision on invest Total Market Fund.
Finfulanzer always say something. you can't change your portfolio soon. Please ignore noise.
Stay invested for long period of time. No fixed strategery. Each person is unique. You are the responsibile person for your portfolio.
Generally, we can give ideas on how to build portfolios.

 

[fradela]

I started investing in the mutual fund in the year 2020 (just before COVID) with very small capital and dipped - stopped investing, withdrew the remaining amount from MF - poor decision when I reflect now. Again started in 2022/2023 and have continued. The distribution looks like as following:

View attachment 71931

Your portfolio contains almost 80% percentage in Debts. You should have this portfolio at your late 80s, not now. At least invest on 60% in equity.

 

[GGGGGG]

Your portfolio contains almost 80% percentage in Debts. You should have this portfolio at your late 80s, not now. At least invest on 60% in equity.

It is pledged as cash component for trading.

 

[fradela]

Everyone try icici prudential business cycle fund!!!

Don't recommend Thematic funds to everyone.
You should have very good knowledge, how to enter and exit.
It is not a core fund. We can consider as a satellite fund.

 

[Avijit Paul]

My funds:
1. HDFC Nifty 50 Equal Weight Index Fund
2. Navi Next Nifty 50 Index Fund
3. UTI BSE Low Volatility Index Fund
4. DSP Nifty Midcap 150 Quality 50 Index Fund.
5. DSP Nifty Smallcap 250 Quality 50 Index Fund.

Any reviews.

 

[kuchbhi]

Don't recommend Thematic funds to everyone.
You should have very good knowledge, how to enter and exit.
It is not a core fund. We can consider as a satellite fund.

it has been delivering quite a handful return if we see the past not too bad of a fund

 

[cardio_guy]

Don't recommend Thematic funds to everyone.
You should have very good knowledge, how to enter and exit.
It is not a core fund. We can consider as a satellite fund.

Is direct equity required on ones portfolio? Have seen many stories of mutlibagger stocks and few thousands becoming lakhs in many years. What advantage does stock investing have over mutual funds?