Team-BHP - The Mutual Funds Thread

There is a 62% portfolio overlap between Mirae Asset Equity Hybrid and Mirae Asset Emerging Bluechip. Try it on this website: http://thefundoo.com/Tools/PortfolioOverlap

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Originally Posted by audioholic (Post 5066905)

My investments in Mirae Asset Equity Hybrid have consistently outperformed SBI Equity Hybrid over the last three years. Hence between the two, I would pick Mirae especially when you already are investing in their Emerging Blue chip fund.

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Originally Posted by manish_symc (Post 4968485)

Looking for some experts views on my mutual funds investment. My CAGR is 40% up, should I stay invested or exit?

I have Mirae Blue Chip, Focused and Great Consumer funds. SIP started in Feb 2019. Also heavily invested lump sum amounts during Mar'20 to July'20 when market was down.

Update on my earlier post.
SIP is still on and today CAGR stands at 54%. So, looks like Mirae MFs are performing well.

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Originally Posted by audioholic (Post 5066905)

But they have limited investments in Emerging bluechip and I think now its a max of 2500 per month, correct me if I am wrong.

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Originally Posted by pradkumar (Post 5067916)

Try it on this website: http://thefundoo.com/Tools/PortfolioOverlap

Nice tool! It also tells me that between Mirae Asset Emerging Bluechip & Mirae Asset Tax Saver (ELSS), more than 85% stocks are common. So more or less they are the same funds and if someone has long term goals but can’t get sufficiently into Emerging Bluechip now due to 2500/- pm restriction, the other one might help.

The other option is to take help from family members to invest 2500/- each directly through the website post KYC.

International mutual funds have caught my eye , extremely late to the party though.

Most have returned 20%+ average returns over the past 8 years. Have started a SIP as I feel the tech giants will continue to grow in value and influence. My idea is to mainly diversify from the Indian market where tech presence is weak. Some of the funds I identified are
1. Edelweiss Greater China Fund
2. Motilal Oswal Nasdaq 100 Fund
3. Motilal Oswal S&P500 Fund
4. DSP US fund etc

Here is a quick comparison of 5 years:
https://www.google.com/finance/quote...S_FLEX_1VR5RRR

There is nothing much to differentiate between BSE Sensex and S&P 500.

See SmartCat's post:
https://www.team-bhp.com/forum/shift...ml#post4905045

Quote:

Originally Posted by Ragavsr (Post 5068253)

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Originally Posted by shashant (Post 5068612)

Spent my weekend going through the thread. based on the recent discussions, I have put below portfolio

Attachment 2160167

Debt to equity is 30:70 as i have not considered VPF/ PPF investment

Since there is lot of discussion around passive and active investment. I have kept both as part of the portfolio

Monthly balancing based on whether debt or equity has low value

Looking for recommendation in terms of overall distribution of funds in different categories

That's a good effort. 30:70 allocation is fine if instruments like EPF etc are not included.

Here is my advise -

reduce the number of funds. Unless you have really huge networth, 3-4 equity funds and 2-3 debt funds should be more than enough for all investors. For example, in debt 1 short term and 1 long term/gilt is enough.
Check the allocation between largecap:midcap:smallcap. You should have at least 60% in largecap stocks. Your equity allocation seems very aggressive (more midcap and smallcap) and will see huge drawdowns in bear market. Do not go by the midcap and smallcap returns in the last 1 year. From 2018-2020, the midcaps and smallcaps crashed badly and so, the returns look very impressive for the last 1 year.
Passive funds are good for largecap like nifty or niftynext. For midcap and smallcap, many active funds tend to outperform the indexes. Also, with so many illiquid stocks, midcap/smallcap index funds might have large tracking errors.
Historically, smallcap funds have not beaten midcap funds in terms of rolling returns (5 or 7 or 10 year) but at the cost of much higher volatility and risk. So, unless you have a very strong reason, avoid smallcap funds.

You can just have the following equity funds -

Axis blue chip/Can Robeco flexicap
ICICI/UTI Nifty next index fund (last I checked UTI was much better in terms of tracking error)
Axis/Invesco midcap- better to diversify across fund houses
Parag parikh flexicap.
Motilal S&P 500 index fund -(please note that Parag Parikh also has good exposure to US stocks, so adjust the allocation accordingly).

So, if I were you, I will just have these 5 equity funds and 2 debt funds, other than the emergency fund. Hope it helps.

Good people, I have 2 noob questions. Please help your man out.
1) Can you point me towards a simple asset allocation tool. Something where I enter all my financial details and it indicates what should be my allocation.
2) I have my savings currently lying in the bank, fetching me about 6% pre tax. I'm late to the party but have realised I should rather park it in MFs. However, at this hour when the markets are sort of peaking, doesn't make sense to invest right now or does it ? I want an an avenue where I can retrieve my cash anytime. However the cash I'm looking to park is pretty much spare as the plan to buy a new car has been dropped.

Thanks adimicra for writing a detailed reply.

Quote:

Originally Posted by adimicra (Post 5068682)

Here is my advise -
reduce the number of funds. Unless you have really huge networth, 3-4 equity funds and 2-3 debt funds should be more than enough for all investors. For example, in debt 1 short term and 1 long term/gilt is enough.

There is a line of thought where you diversify your risk with different fund managers. That's why you see more number of funds. so instead of investing 6000 in one fund I can have 2000 in 3 funds.

Quote:

Check the allocation between largecap:midcap:smallcap. You should have at least 60% in largecap stocks. Your equity allocation seems very aggressive (more midcap and smallcap) and will see huge drawdowns in bear market. Do not go by the midcap and smallcap returns in the last 1 year. From 2018-2020, the midcaps and smallcaps crashed badly and so, the returns look very impressive for the last 1 year.

Thanks I will reshuffle.

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Passive funds are good for largecap like nifty or niftynext. For midcap and smallcap, many active funds tend to outperform the indexes. Also, with so many illiquid stocks, midcap/smallcap index funds might have large tracking errors.

Historically, smallcap funds have not beaten midcap funds in terms of rolling returns (5 or 7 or 10 year) but at the cost of much higher volatility and risk. So, unless you have a very strong reason, avoid smallcap funds.

Thanks make sense.

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ICICI/UTI Nifty next index fund (last I checked UTI was much better in terms of tracking error)

Seems information on tracking error for index fund is not easily available. Any recommended website for that

A couple of questions related to the strategy on handling ELSS funds. Do you folks liquidate or switch to other funds once the ELSS lock-in period is over? And how do you classify ELSS funds, as small/mid/large-cap?

I am in the process of cleaning up my MF portfolio and have found that the bulk of my holdings are in ELSS, and most of them have passed the lock-in period.

This is how my current Equity MF allocation look like

ELSS - 40%
Index/ETF - 10%
Large-cap - 15%
Small-cap - 10%
Others (Flexi, Thematic, Value, etc) - 25%

I am thinking of increasing Index funds to 25% and small-cap to 15% and bring down ELSS to 20%. Is that a good idea?

PS: I am looking at > 5 years investment horizon and okay for an aggressive portfolio allocation

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Originally Posted by Jaguar (Post 5069890)

If the ELSS is the only fund I have with the fund house, then I liquidate it. If I have other funds with the AMC, I let it remain. Since I prefer to do direct investment via individual AMC websites, I prefer to have investments in very few AMCs. Liquidation has tax implication and I prefer not do it unless there is a big advantage i.e. simpler operations. One final pending ELSS/AMC needs to be cleaned up this November.

I always bracket them as Flexi-caps. I have not done a data based classification.

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Originally Posted by graaja (Post 5070366)

If you are in for the long term (read 7 years+), then do not try to time the market. Start investing in SIPs and use the portfolio rebalancing concept.

Typically, for people who accumulate more surplus in the later years like mid-40s due to change in job profile, would you still recommend SIPs since they would be looking to accumulate wealth by their mid-50s so they can plan for rebalancing at the time of retirement?