mutual fund scheme with largest share of investment

[jade]

is this much investment in MF suggested? coz if something happens to market by any external means,all gone?

Markets are volatile by nature, however they have a upward trajectory. BSE index in 2000 was 6000, now it is 60000, a ten times return in 20 years. There are very few asset classes that can match the returns of equity. However, one should invest in equity only if they can remain invested for at least 5 years. I have a investment horizon of 20 years, so I invest predominantly in equities, both MF and direct.

 

[COSMOCRAT]

is this much investment in MF suggested? coz if something happens to market by any external means,all gone?

Depends on age. If you are investing in something which gives less than 6% returns, you are basically reducing your money's worth for coming years.
Instruments that give less than 6% are good for wealth preservation and those that give more are good for wealth creation.
If you are young put it in wealth creation instruments. When you start to get near your retirement age start transferring it to wealth-preserving instruments.
Equity/MFs may fall short term but in the long term, they are expected to go up as they are linked with the country's economic growth.

The above is just a simplified take.

 

[nrb]

My list:

1. Parag Parikh Flexi Cap
2. Mirae Asset Large Cap

 

[cnishith1]

Some very good points and words of wisdom mentioned in this thread. I will share some of my thoughts based on my research and take on investments:

If you have Time then -

1. Spend few days and learn about various investment products in the market (Mutual Funds/Direct Equity/ETFs, Debt (Bonds/NPS/PPF) etc
2. Pick the one which interests you more and dig deeper. I would recommend learning about MFs instead of direct equity , then understand the core concepts, ways to measure returns, ratios etc.
3. Learning about these are important so that you don't always depend on word of mouth and you are not lost in conversations
4. Once you know the basics, you can do your own reserach with so much info available on web.
5. Build a portfolio for long term
6. Depending on your age, investment horizon and risk appetite - pick mutual fund recommendations from various sources. Then match it to your shortlisted mutual funds to give you confidence.

Other Points:
1. Keep your emotions aside while investing
2. Do not look at performance of mutual funds every day (I know it's tempting esp when markets rise)
3. Review and rebalance if required every year
4. Invest in direct funds and not regular
5. Diversify your portfolio (Max 4-5 funds)
6. Avoid lump sum investments
7. When markets fall - invest more

Mutual Funds Balance:
1. Keep a balanced approach of Equity and Debt (also small allocation to Gold) depending on your age: If you are young then invest more in EQ via Mutual funds than Debt
2. If you are in Old Regime and need 80C - then use ELSS (most ELSS are Multi/Flexi cap)
3. Keep a mix of Large, Multi/Flexi, Mid, Aggresive Hybrid etc. Avoid Small Cap, Avoid Debt funds, Avoid thematic funds.-
4. Don't put everything in mutual funds even if you are very young. You can use Equity via Mutual Funds and Debt via PPF/NPS etc.
5. Invest in mutual funds with a minmum horizon of 5-7 yrs.

India is an emerging market which has lot of potential in economic growth for at least 15-20 Yrs.
Remember, there is no shortcut to wealth creation, so never look for making huge profit in short term. Be consistent in investing with a balanced approach using SIPs.

If you don't have time then - hire a Fee Only Financial adviser who can look at your individual situation and recommend investments.

Now to answer the OP's question: My MF breakup
Large/Large & Mid (55%) -
Flexi/Multi - 30% -
Agressive Hybrid - 15%

Sorry for the lengthy post. I hope this helps!

 

[CARDBITRAGE]

I'm sure most of them have jumped into the equity market after seeing the post covid bull run. I read some comments saying that index investing isn't that lucrative and whatnot. Guys, you are in it for the long run. And going by pure statistics, not many funds can manage to beat the low cost index funds in a longer time horizon. A simple Google search on the same can help deduce why. Sure you can catch a particular trend and make very handsome returns in the short term, but it's very hard to sustain returns over 15-20% consistently over a longer time horizon(10-15 years). I believe that Nifty/Sensex-based indices track very well with our economy and the next couple of decades will be golden for India's growth. This is just my opinion, don't come at me.
I invest the bulk of my money based on my own research and conviction.
2023 investment split-
1. Debt- 60%(50% Gsec, 25% Tbills, 20% Corporate bonds, 5% FD)
2. Equity-30%(70% direct investing, 30% MF)
3. Gold-10%(Physical 20%, SGB 80%)

For those of you who are wondering why my debt allocation is high rn, I believe we are very close to a peak in the interest cycle so I can cash in later during the interest down cycle.

 

[CARDBITRAGE]

is this much investment in MF suggested? coz if something happens to market by any external means,all gone?

The day financial markets go kaput, everything goes. Banks, insurance companies, listed companies, and even the government will go under! Another reason? It is the best, legal way to escape tax and its beneficiaries will not let it fail. In fact, in India, there's barely a handful of ways to grow your money with respect to inflation in real terms. You might see a 10-20% dip at most, but the trend of the stock market in the long term will logically always be on an upward trajectory, so don't worry about that.

 

[jack333]

If we invest in direct mf via groww or mfcentral is there any difference in commission and other charges?

 

[COSMOCRAT]

If we invest in direct mf via groww or mfcentral is there any difference in commission and other charges?

Yep, always buy direct funds. They have a way lower expense ratio than regular funds.
PS: Some people had transactional problems in MFcentral, so beware of that.

 

[jack333]

I was asking about direct only. Any difference between groww or mfcentral?

 

[CC-Muncher]

I was asking about direct only. Any difference between groww or mfcentral?

No diff yet. But soon there can be check this:

https://www.financialexpress.com/money/mutual-funds/will-direct-plans-of-mutual-fund-schemes-become-costly-post-sebis-framework-for-eops/3125400/

 

[jack333]

Mfcentral is not through cdsl or nsdl so i think it won't charge transaction fee unlike groww or upstox for direct funds also?

 

[Recktreck]

Mine
1. Parag Parikh flexi cap
2. Axis Midcap fund
3. Quant small cap fund
4. UTI nifty 50

 

[mystic]

PPFAS Flexicap - 20%
Kotak Nasdaq FoF - Stopped SIP from March since AUM reached limit for foreign investments. Will stop investing in US MFs totally due to the taxation change from Apr 1 2023!

 

[yolofino]

In which mutual fund/scheme have you invested largest portion of your funds?

PPFAS Flexi Cap Fund - Direct Growth

UTI Nifty 50 Index Fund - Direct Growth

 

[R!ppEr]

my largest share is in CR Bluechip, returns are at 25% as of today

 

[jack333]

Which direct mf you suggest for lump sum long term investment flexi, small or mid cap? @CARDBITRAGE @bugmenot @Catalyst

 

[Slayer]

my largest share is in CR Bluechip, returns are at 25% as of today

Unironically investing in CR MFs

Oof

 

[Mohur]

Index funds have such a low AUM in India which makes difficult for me to choose because I choose tried and tested MF by the masses.

Reliance sold its mf business and then idfc also. These changes make it difficult to trust a company for investments thus i will wait for the index funds industry to mature.

 

[Slayer]

Index funds have such a low AUM in India which makes difficult for me to choose because I choose tried and tested MF by the masses.

Reliance sold its mf business and then idfc also. These changes make it difficult to trust a company for investments thus i will wait for the index funds industry to mature.

What kind of index funds you talkin about midcap or smallcap or sector?

 

[CARDBITRAGE]

Which direct mf you suggest for lump sum long term investment flexi, small or mid cap? @CARDBITRAGE @bugmenot @Catalyst

I don't know if I can make MF suggestions as I majorly do direct stock investments(70%). I have a small portion in Kotak Emerging fund, HDFC small cap and Nippon India small cap. Rest of my MF portfolio is in HDFC Index Nifty 50.