[dsnaveen21]

Hello Guys,

Planning to invest in below mutual funds, any suggestion let me know please

Axis Growth Opportunities Fund
Parag Parikh Flexi Cap Fund
SBI Magnum MidCap Fund
Tata Large & Mid Cap Fund
ICICI Prudential Multi-Asset Fund
Quant Absolute Fund
HDFC Mid-Cap Opportunities Fund

Thanks,

[Small Bot]

Originally Posted by dsnaveen21

Hello Guys,

Planning to invest in below mutual funds, any suggestion let me know please

Axis Growth Opportunities Fund
Parag Parikh Flexi Cap Fund
SBI Magnum MidCap Fund
Tata Large & Mid Cap Fund
ICICI Prudential Multi-Asset Fund
Quant Absolute Fund
HDFC Mid-Cap Opportunities Fund

Thanks,

I'm nowhere even close to an expert, so I'm not really qualified to advise. But too my layman's eyes, this seems like a cluttered portfolio. Some of these might be top-performing funds, but you need to check if this actually meets your goals.

What I did was just plonk my biggest MF portfolio in a Nifty 50 Index fund (a good bite of my Equity portion), and then surround it with satellite funds like Nifty Next 50, Midcap 150 and Smallcap 250 funds, along with one US Index fund.

This doesn't strain my brain cells much.

[vijaykr]

Originally Posted by dsnaveen21

Hello Guys,
Planning to invest in below mutual funds, any suggestion let me know please
Thanks,

My apologies in advance if my opinion comes across as overly critical, but why these funds specifically? Have you already done your research and shortlisted them as these funds go across multiple categories? Since you have not mentioned your timeframe for these investments. It is not straightforward to say yes/no to them as I feel duration is important to consider as well. So having targeted goals for your investments will help narrow down what MF categories to narrow down to and which specific fund in that category to pick.

General comments aside, if you are a new investor to MFs, then I would recommend investing allocating a significant amount to index funds. This gives you time to get used to market volatility and assess your appetite for handling ups/downs. There are enough articles highlighting good percentage of investors exiting MFs when markets go down which unfortunately impacts their portfolio in the long run.

For you assuming a new MF investor, I'd suggest:
a) a Nifty50/Sensex index fund (large-cap)
b) an active flexi-cap fund (Parag Parikh is good currently, but with growing, huge AUM not sure how long they can maintain returns
c) instead of midcaps, think about having a Nifty Next50 index fund
d) a multi-asset fund (you have mentioned ICICI Pru which could work)
e) for intl. diversification (if required), then an equity MF that invests into overseas markets can be considered

If you are an experienced MF investor, then I would echo the comment from @SmallBot on this list being more cluttered than needed given the number of categories.

[Naetik30]

Originally Posted by dsnaveen21

Hello Guys,

Planning to invest in below mutual funds, any suggestion let me know please

Axis Growth Opportunities Fund
Parag Parikh Flexi Cap Fund
SBI Magnum MidCap Fund
Tata Large & Mid Cap Fund
ICICI Prudential Multi-Asset Fund
Quant Absolute Fund
HDFC Mid-Cap Opportunities Fund

Thanks,

Hope you have already broken up your total portfolio to include debt and other assets. For the equity portion my suggestion is this -

Option A: If you are relatively young (less than 40 year old, 20 years of earnings left) - 40% of equity portion in Nifty 50 Index Fund (or) PPFAS, 30% in HDFC Mid Cap Oppurtunities fund, 30% in Nippon Small Cap Fund.

Option B: If you are about to touch 50. 70% in Nifty 50 Index fund, 30% in a midcap fund.

Option C: If you are about to touch 60. 100% in Nifty 50 index fund or a Balanced Advantage fund.

[ghodlur]

Experts a query reg the MF holdings

Over the period of 20 yrs I have churned the MF portfolio and have some decent returns. The MF's where I no longer have SIPs are lying in the portfolio albeit some giving handsome returns. But the Portfolio is now bloated and I need to trim the same. What should be my strategy for the MFs where I have stopped the SIPs. Should I redeem them and invest in a Liquid fund or Short term fund or move the corpus to a FD. These are equity funds and I am not sure if they can be moved to a debt fund within the same MF house although this doesn't serve the purpose of trimming. I would having and equal no of funds again but this time in debt.

Some example mutual funds are ABSL Frontline equity, HDFC Mid cap opportunities etc

I am still a good 7 yrs away from retirement and these funds will be for the post retirement expenses.

[DigitalOne]

Originally Posted by ghodlur

But the Portfolio is now bloated and I need to trim the same. What should be my strategy for the MFs where I have stopped the SIPs.

In my opinion, number of funds is not a problem as long the number of AMCs (i.e. folios) are not too many. These days one can manage KYC, Nominations, address or bank changes centrally in CAMS, Karvy, MFUtilities etc. As long as you are able to track these effectively don't bother much about portfolio bloat. Trimming of funds will entail unnecessary capital gains tax.

Still if you want to go ahead and do it, stagger the switch to keep the capital gains < 1 Lakh per year.

[ValarMorghulis]

Question to the experts:
How do Coin (Zerodha) and Groww earn when they charge no commission for Mutual funds?

Google says "direct source of earning for Zerodha from Coin is the interest on the surplus funds lying for a few days in your trading account". That seems pretty less.

[SmartCat]

Originally Posted by ghodlur

Should I redeem them and invest in a Liquid fund or Short term fund or move the corpus to a FD.

Think of debt mutual fund as "mutual fund of fixed deposits at various banks, financial institutes & corporates". Basically, there is no difference between the two options.

These are equity funds and I am not sure if they can be moved to a debt fund within the same MF house although this doesn't serve the purpose of trimming. I would having and equal no of funds again but this time in debt.

More the merrier

No seriously, this is not a problem.

Originally Posted by ValarMorghulis

Question to the experts:How do Coin (Zerodha) and Groww earn when they charge no commission for Mutual funds?

Zerodha charges zero commission for investing in stocks and mutual funds. But they are the most profitable brokerage firm in India with FY23 revenues of Rs.6,800 cr and profits of Rs.2,900 cr

Zerodha earns all their revenues and profits from customers who do day trading and futures/options trading. The reason why they are still offering stock/MF investing is that most traders utilize these investment avenues for their capital.

[IamNikhil]

Guys, any suggestions on starting an SIP with a moderate-risk but decent returns MF?

Current investments are conservative, hence MF was an unexplored avenue till now.

For context, I am 33 and salaried.

[saket77]

Originally Posted by IamNikhil

Guys, any suggestions on starting an SIP with a moderate-risk but decent returns MF?

Current investments are conservative, hence MF was an unexplored avenue till now.

For context, I am 33 and salaried.

You are relatively young and most likely your liabilities like children's education/ marriage/your retirement are far away. As you write, your current investments are also on the conservative side. Unless you have a foreseen liability to be paid off in near future, I suggest you should go little aggressive and get yourself a full equity mutual fund. Of course, this is a general suggestion based on the facts shared in your post. I do not know your actual risk profile but for most, this should fit the bill at your age.

Originally Posted by SmartCat

Zerodha charges zero commission for investing in stocks and mutual funds. But they are the most profitable brokerage firm in India with FY23 revenues of Rs.6,800 cr and profits of Rs.2,900 cr

Zerodha earns all their revenues and profits from customers who do day trading and futures/options trading. The reason why they are still offering stock/MF investing is that most traders utilize these investment avenues for their capital.

Thanks SmartCat!
Along with what you say, Zerodha also charges AMC for the DP/ trading account. Also, their MFs (purchased through 'Coin', are also in the DP. This should also form a good chunk of revenue for Zerodha.


Regards,

Saket

[SmartCat]

Originally Posted by saket77

Thanks SmartCat! Along with what you say, Zerodha also charges AMC for the DP/ trading account. Also, their MFs (purchased through 'Coin', are also in the DP. This should also form a good chunk of revenue for Zerodha.

Nah, that takes care of just chai paani expenses.

In brokerage business, real money is in futures & options trading commissions. Even NSE derives most of its revenues/profits from FNO trading.
https://www.thehindubusinessline.com...le67288676.ece

Options trading has become a cash cow for NSE. Equity derivatives constituted 88 per cent of NSE transaction revenues at the end of FY23, while index options contributed 73 per cent. The revenue share for index options was 21 per cent in FY18. Share of cash revenue, on the other hand, went down from 26 per cent in FY18 to 9 per cent in FY23

[IamNikhil]

Originally Posted by saket77

You are relatively young and most likely your liabilities like children's education/ marriage/your retirement are far away. As you write, your current investments are also on the conservative side. Unless you have a foreseen liability to be paid off in near future, I suggest you should go little aggressive and get yourself a full equity mutual fund. Of course, this is a general suggestion based on the facts shared in your post. I do not know your actual risk profile but for most, this should fit the bill at your age.

Getting married in the coming year. Liability-wise, my home loan payout has 3 more years to go. Medical is completely covered by the corporate I work at. Do let me know options for the full equity MF you mentioned and the bracket of investment needed per month. Thanks a lot

Candid confession: I am a noob in this regard. Apologies in advance.

[Small Bot]

Originally Posted by IamNikhil

Do let me know options for the full equity MF you mentioned and the bracket of investment needed per month.

Candid confession: I am a noob in this regard. Apologies in advance.

There are just a couple of suggestions that I'd like to give you:

• Firstly, if you want to do it your own way, why don't you probably try dipping your feet into some Nify 50 Index Funds? It's a good way to get into the game, and then you can explore as you see fit to later.
  
• Secondly, if you are still unsure about yourself, and it's perfectly alright to be so, why don't you try consulting a fee-only financial advisor? They might listen to your budget available to invest, your risk appetite, your goals etc and then suggest some funds for you.

[Naetik30]

Originally Posted by IamNikhil

Getting married in the coming year. Liability-wise, my home loan payout has 3 more years to go. Medical is completely covered by the corporate I work at. Do let me know options for the full equity MF you mentioned and the bracket of investment needed per month. Thanks a lot

Candid confession: I am a noob in this regard. Apologies in advance.

I am 41+ now and was in your situation several years back. Most other BHPians in my age will agree with what I say below -

1. We exactly know how confusing it is to get into the equity market initially. Especially when you are young.
2. Even if you have x amount of money ready for investment - you will feel like putting in only 10% of it in Equity MF and the rest in a FD. I did the same.
3. But knowing what I know now, I am beating myself up for not investing 80% or at least 50% of that in the Equity MF.
4. When you have low dependencies on you and a long runway of working life, please invest more in Equity in the initial days. Even a 100Rs you invest now would be much more valuable than 1000Rs 10 years later.
5. Remember the real inflation in India is 10+%. Do not go buy what the official number tell you.
6. May be to calm your nerves start with NIFTY50 index fund. Then within a few months try to get into mid cap.

[vijaykr]

Originally Posted by IamNikhil

Guys, any suggestions on starting an SIP with a moderate-risk but decent returns MF?

Current investments are conservative, hence MF was an unexplored avenue till now.

Originally Posted by Small Bot

[*]Secondly, if you are still unsure about yourself, and it's perfectly alright to be so, why don't you try consulting a fee-only financial advisor? They might listen to your budget available to invest, your risk appetite, your goals etc and then suggest some funds for you.[/list]

On @SmallBot's point on consulting a financial advisor, do take a look at this website: https://www.feeonlyindia.com/

Note that I am NOT related in any way, financially or otherwise, to this website or any of the financial advisors in it. And I am not a qualified financial investment professional either

Given that you are starting out on MF investments, it makes most sense to get a full perspective now of your current financial situation and where you'd like to be in future. This is exactly where I believe a financial advisor is super-helpful and adds value by putting you on the correct investment path. You will have to do your due diligence in identifying the right advisor though.

All the best!