[whitewing]

Originally Posted by saket77

My investment philosophy w.r.t. debt/ liquid funds is very simple- when in doubt, stay out. I can take risks with my equity investments, but if I have parked my funds in a debt scheme, it means I am not willing to take additional risks on that. You may consider switching to liquid funds for a while. Franklin has one too.

Completely agree with you on the management of the risk allocation.


For all my regular MF investment what I've done is - invest my target MF investment amount for a FY in a liquid fund and set up a switch SIP to the equity fund I want to invest in. This makes budgeting simpler and the investing runs on autopilot for the rest of the year.

[HydroFuel]

There is newly launched Tata Focus Equity Fund. How is this new fund if someone wants to take some risk for growth?

[m8002?]

Originally Posted by HydroFuel

There is newly launched Tata Focus Equity Fund. How is this new fund if someone wants to take some risk for growth?

Do not fall for the new fund myth. Read up more on this at ValueResearchOnline or other forums.

Its always better to go with an established MF with a good history than a new one.

[saket77]

Originally Posted by HydroFuel

There is newly launched Tata Focus Equity Fund. How is this new fund if someone wants to take some risk for growth?

Originally Posted by m8002?

Do not fall for the new fund myth. Read up more on this at ValueResearchOnline or other forums.

Its always better to go with an established MF with a good history than a new one.

True. A new fund, or NFO called technically, has no incentives over an old existing fund. In fact, you have a track record available for the performance of old funds which obviously gives us at least one parameter to make a decision in form of history of returns. In an NFO, there's nothing except the fund manager's name.
In case you are tempted about the Rs. 10 NAV, then just for your information, it simply doesn't matter to you if you buy a fund with Rs. 10 NAV or Rs. 1000.

Regards,
Saket

[whitewing]

I happened to stumble on the below article while searching for data on where fund houses are deploying money.
It appears that most mutual funds appear to be putting money on the NIFTY stocks


https://economictimes.indiatimes.com...w/70355433.cms

a) Wouldn't simply investing in a index fund be cheaper than the actively managed ones?

b) Given that the nifty/sensex are at their peak valuations, long term growth seems to be already factored in the price, and any negative surprises would (perhaps) pull down the prices. How much sense does it make to invest in large cap/hybrid Mutual Funds at these valuations?

[Oxy]

After some extensive reading about the various types of funds and after taking inputs from this wonderful thread, I have now come up with the following portfolio (SIP of Rs. 30,000 per month):

Axis Bluechip - Rs.7,000
Mirae Emerging Bluechip - Rs.4,000
Kotak Standard Multicap - Rs.4,000
PPFAS Long Term Equity - Rs.4,000
ICICI Prudential Multi Asset - Rs.3,500
SBI Magnum Gilt - Rs.2,500
ABSL Banking and PSU Debt - Rs.2,500
HDFC Overnight - Rs.2,500

I am 40 years old, have no investments except real estate (for self, will pay off my home loan by June 2020), and my goal is to build a corpus for my son's marriage and my retirement 18 years down the line.

Hopefully this would suffice. Please advice if I could possibly do this in a better way. I am a complete noob at this.

[SmartCat]

Originally Posted by Oxy

After some extensive reading about the various types of funds and after taking inputs from this wonderful thread, I have now come up with the following portfolio (SIP of Rs. 30,000 per month): Hopefully this would suffice. Please advice if I could possibly do this in a better way. I am a complete noob at this.

Impressive plan, diversified across different types of mutual funds. Comments:

- If your salary goes up by, say 10%, don't forget to increase your SIP allocation by 10%.
- Once your home loan is paid off, divert the cash saved into your mutual fund portfolio.
- Debt allocation is perfect - a mix of govt bonds, psu bonds and overnight funds.
- ICICI Pru Multi Asset is a nice find! I think they will invest in Gold too (if needed).
- 33% allocation to large caps (bluechip funds) is a bit excessive. You can either reduce SIP amount and/or get rid of one of the two funds.
- Replace it with one more multicap fund or you can invest in an international equity mutual fund (focussed on USA)

List of international equity mutual funds:
https://www.valueresearchonline.com/...sTabChng=1&pg=

[sansvk]

Originally Posted by Oxy

...

Hopefully this would suffice. Please advice if I could possibly do this in a better way. I am a complete noob at this.

My suggestion would be to start with just two equity funds, one a multicap and other an index fund.

[Oxy]

Originally Posted by SmartCat

Impressive plan, diversified across different types of mutual funds. Comments:

- 33% allocation to large caps (bluechip funds) is a bit excessive. You can either reduce SIP amount and/or get rid of one of the two funds.
- Replace it with one more multicap fund or you can invest in an international equity mutual fund (focussed on USA)

Excellent feedback as always, SmartCat!

I thought larger allocation into large caps is normal for someone with moderate risk taking ability. Also, Axis Bluechip is a pure large cap while Mirae Emerging Bluechip is large plus mid cap (at least that is how MoneyControl describes it).

The USA focussed funds look interesting, thanks for letting me know. In fact, my reason for choosing PPFAS long term equity fund was that it has American companies like Apple, Facebook, Microsoft, IBM etc. in it's portfolio.

[DigitalOne]

Originally Posted by Oxy

Please advice if I could possibly do this in a better way. I am a complete noob at this.

Originally Posted by SmartCat

Impressive plan, diversified across different types of mutual funds.

In addition to what SmartCat has suggested, let me add a couple of points. I have been following below strategy for a couple of years now (monthly investment around 70,000).

1. Please invest only via Direct mode, not via brokers.

2. Consequent to point 1 above, it may become difficult to track across 8 separate fund houses. So you may want to reduce it to 3-4 AMCs. You may lose out on the best fund for the category but generally "best" funds are not the best funds for long period of time.

3. Consider Systematic Transfer Plans from Liquid/Overnight categories to Equity funds. Once you have zeroed in on 3-4 AMCs, STPs are more flexible.

[carboy]

Originally Posted by DigitalOne

1. Please invest only via Direct mode, not via brokers.

2. Consequent to point 1 above, it may become difficult to track across 8 separate fund houses. So you may want to reduce it to 3-4 AMCs. You may lose out on the best fund for the category but generally "best" funds are not the best funds for long period of time.

You can use MFUtility to make direct fund purchases across multiple AMCs.

[sagarpadaki]

Originally Posted by Oxy

After some extensive reading about the various types of funds and after taking inputs from this wonderful thread, I have now come up with the following portfolio (SIP of Rs. 30,000 per month):

Axis Bluechip - Rs.7,000
Mirae Emerging Bluechip - Rs.4,000
Kotak Standard Multicap - Rs.4,000
PPFAS Long Term Equity - Rs.4,000
ICICI Prudential Multi Asset - Rs.3,500
SBI Magnum Gilt - Rs.2,500
ABSL Banking and PSU Debt - Rs.2,500
HDFC Overnight - Rs.2,500

I feel the number of funds is too high. Reduce it to max 4. I would suggest 1 Multicap, 1 aggressive Hybrid, 1 Index fund and 1 debt fund.

[skchettry]

Can anyone explain how the expense ratio of a fund affects the corpus? It is seen that between the Direct and the Regular schemes there is a difference of approximately 1% (+/-). Is there a way to calculate looking at the current value of one's investments, how much of saving could have been made if this investment would have been made in Direct Scheme rather than Regular one?

[Oxy]

Thanks sansvk, DigitalOne, sagarpadaki for your valuable views.

Originally Posted by skchettry

Can anyone explain how the expense ratio of a fund affects the corpus? It is seen that between the Direct and the Regular schemes there is a difference of approximately 1% (+/-). Is there a way to calculate looking at the current value of one's investments, how much of saving could have been made if this investment would have been made in Direct Scheme rather than Regular one?

Check this out:

https://www.etmoney.com/blog/mutual-...-direct-plans/

[saket77]

Originally Posted by skchettry

Can anyone explain how the expense ratio of a fund affects the corpus? It is seen that between the Direct and the Regular schemes there is a difference of approximately 1% (+/-). Is there a way to calculate looking at the current value of one's investments, how much of saving could have been made if this investment would have been made in Direct Scheme rather than Regular one?

Compare the NAVs of the direct and regular schemes of the same scheme for the same period. That will be conclusive.

Regards.