How many Mutual Funds do you invest in?

[LordVoldemort]

I personally never OVER-DIVERSIFIED my portfolio.
1. Parag Parekh Flexi Cap
2. ICICI Prudential Value Discovery

REASON:
1. See I am of the opinion that if you invest in mutual funds, let the fund manager have the freedom to choose the stocks of his/her choice. That’s why Flexi Cap.
2. The second thing which I always favoured is the fund manager. If the fund manager is good, give him/her the money, have trust and patience.
3. Exit is equally important as entry; therefore, have the plan for exit too. If your goals are achieved, exit, doesn't matter whether the market is.
4. If you over-diversify, it’s like you are investing in the entire stock market. Then it would be better to choose NIFTY or SENSEX.

SIP OPINION:
See, SIPs are good; they will average your returns, but they can also negatively impact your return too. It’s like a two-sided sword. I never prefer SIP, only since I have a relatively better understanding of the market, entry point, and exit point. For instance, since the last 1 year, I haven't invested a single rupee because of the valuation. I knew that the market adrenaline would have to cool down at a certain point.

But if you doesn't have much knowledge about market, go through SIP, it's best.

NOTE: You can only make huge money if you invest for a short time, like if you have invested in late 22 and exited at Sep 24, you would have made huge money from the market, but on the other hand, if you have a longer horizon, you would have been sitting at almost flat return in this period.

A SMALL SUGGESTION - ALWAYS KEEP CASH IN YOUR HAND TO INVEST AT THE TIME OF MARKET CORRECTION.

I had a similar thought process, but there is the amc concentration risk (What if the AMC gets bad or fraudelent). Post that, I started sticking on to the fund type (Flexi/ Mid) and then diversified across AMCs.
do have a thought there too.

 

[SJM]

I had a similar thought process, but there is the amc concentration risk (What if the AMC gets bad or fraudelent). Post that, I started sticking on to the fund type (Flexi/ Mid) and then diversified across AMCs.
do have a thought there too.

Good Point. I have 15 MFs for the same reason.

 

[RAMESH BABU N]

It appears I am the only odd-man out here.

I do not any investment in any MF. Absolute zero.

I invest in n trade a lot in the stock market directly. No agents, no RMs, n no MFs.

 

[fradela]

It appears I am the only odd-man out here.

I do not any investment in any MF. Absolute zero.

I invest in n trade a lot in the stock market directly. No agents, no RMs, n no MFs.

@RAMESH BABU N, Invest in MF is simpler than direct stocks.

No agent, no RMS, no Demat account, no tax on dividend, no need to monitor your portfolio everyday.

Invest DIRECT GROWTH option INDEX Mutal Funds such as Sensex or Nifty 50, Nifty Next 50.

 

[RAMESH BABU N]

@RAMESH BABU N, Invest in MF is simpler than direct stocks.

No agent, no RMS, no Demat account, no tax on dividend, no need to monitor your portfolio everyday.

Invest DIRECT GROWTH option INDEX Mutal Funds such as Sensex or Nifty 50, Nifty Next 50.

As a choice, I do not want my money in MF. I prefer to trade n participate directly in Stocks. Been trading since 1985.

I spend 2 hours daily reading n analysing the market.

Been extremely happy with this approach and the outcome.

 

[ashwinikumar900]

I had a similar thought process, but there is the amc concentration risk (What if the AMC gets bad or fraudelent). Post that, I started sticking on to the fund type (Flexi/ Mid) and then diversified across AMCs.
do have a thought there too.

I hear you, and totally agree with you, AMC risks are there. But to be fair, which instrument is totally safe? Even the "safest" instrument, FD, has the risk; your money is insured only up to 5L.
What happened with Quant, happened with HDFC, and one another AMC too. So not even the bigger AMCs are safe.

Solution:
You can choose different AMCs; that’s why I chose two different AMCs. But if someone wants a more diversified AMC (and wants some adventurous return), then Motilal Oswal Large and Midcap Fund is my third choice, because of its concentrated portfolio, and very few overlaps with PPFAS and ICICI. Also the name RAMDEO AGRAWAL is bigger and reputed name itself.

I thought about HDFC Flexi Cap too, but again portfolio overlap would be more than 80-90% with PPFAS and ICICI. That’s why I avoid it.

Direct Stock Investing:
I do direct investing, but again, that’s not every man’s cup of tea. If someone has the knowledge, certainly do that; otherwise, stay away from it. And certainly stay clear of YouTube so-called "finance experts". Think about it: if they have so much knowledge, why do they sell a subscription for 159 rupees and repeat the slogan, “Like Karen, subscribe Karen”? Why not just go into the stock market and earn billions? Why are they behind penny subscriptions and selling courses?

 

[LordVoldemort]

I hear you, and totally agree with you, AMC risks are there. But to be fair, which instrument is totally safe? Even the "safest" instrument, FD, has the risk; your money is insured only up to 5L.
What happened with Quant, happened with HDFC, and one another AMC too. So not even the bigger AMCs are safe.

Solution:
You can choose different AMCs; that’s why I chose two different AMCs. But if someone wants a more diversified AMC (and wants some adventurous return), then Motilal Oswal Large and Midcap Fund is my third choice, because of its concentrated portfolio, and very few overlaps with PPFAS and ICICI. Also the name RAMDEO AGRAWAL is bigger and reputed name itself.

I thought about HDFC Flexi Cap too, but again portfolio overlap would be more than 80-90% with PPFAS and ICICI. That’s why I avoid it.

Direct Stock Investing:
I do direct investing, but again, that’s not every man’s cup of tea. If someone has the knowledge, certainly do that; otherwise, stay away from it. And certainly stay clear of YouTube so-called "finance experts". Think about it: if they have so much knowledge, why do they sell a subscription for 159 rupees and repeat the slogan, “Like Karen, subscribe Karen”? Why not just go into the stock market and earn billions? Why are they behind penny subscriptions and selling courses?

Yeah, Exactly - It could be anyone right - then why do we concentrate it further by heavier positions? Should not this uncertainty drive us to more diversification.
Overlaps too don't matter until it is extremely high - There are some quality names that are going to be in nearly all schemes of a particular category MF & if we are going to keep adjusting for overlap as the funds buy & sell- It'd be the effort of direct investing.
Just my cents - Your money & Your decisions win at last 🙂

 

[ashwinikumar900]

Yeah, Exactly - It could be anyone right - then why do we concentrate it further by heavier positions? Should not this uncertainty drive us to more diversification.
Overlaps too don't matter until it is extremely high - There are some quality names that are going to be in nearly all schemes of a particular category MF & if we are going to keep adjusting for overlap as the funds buy & sell- It'd be the effort of direct investing.
Just my cents - Your money & Your decisions win at last 🙂

"if we are going to keep adjusting for overlap as the funds buy & sell- It'd be the effort of direct investing." - this is a good point.
But what I wanted is that the fund should do something which the other two funds don’t, so Motilal Oswal Large-Cap Fund.

Concentrated portfolio is what I wanted, since there is enough diversification in the portfolio itself, with PPFAS and ICICI.
During the initial days, PPFAS used to have just 25-30 stocks, but now with the increase in fund size, they are more compelled to increase the number of stocks (right now they have more no of funds).

And yes, there are some 10-15 bigger names which will always be almost all the MFs.

I don't suggest anyone to change funds frequently, give the fund atleast 2-3 years to show its performance and then rebalance if needed.

Rebalancing is a must, as Kumbhkaran-style investing isn't small investing.

Again, it’s just my personal opinion; it doesn't have to match with others. So see what works with your goals and stick with it.

 

[hender]

As a choice, I do not want my money in MF. I prefer to trade n participate directly in Stocks. Been trading since 1985.

I spend 2 hours daily reading n analysing the market.

Been extremely happy with this approach and the outcome.

Could you please share more about it,
40 years a very long span, You must have rich experience and takeaways ☝️

I hear you, and totally agree with you, AMC risks are there. But to be fair, which instrument is totally safe? Even the "safest" instrument, FD, has the risk; your money is insured only up to 5L.
What happened with Quant, happened with HDFC, and one another AMC too. So not even the bigger AMCs are safe.

Solution:
You can choose different AMCs; that’s why I chose two different AMCs. But if someone wants a more diversified AMC (and wants some adventurous return), then Motilal Oswal Large and Midcap Fund is my third choice, because of its concentrated portfolio, and very few overlaps with PPFAS and ICICI. Also the name RAMDEO AGRAWAL is bigger and reputed name itself.

I thought about HDFC Flexi Cap too, but again portfolio overlap would be more than 80-90% with PPFAS and ICICI. That’s why I avoid it.

Direct Stock Investing:
I do direct investing, but again, that’s not every man’s cup of tea. If someone has the knowledge, certainly do that; otherwise, stay away from it. And certainly stay clear of YouTube so-called "finance experts". Think about it: if they have so much knowledge, why do they sell a subscription for 159 rupees and repeat the slogan, “Like Karen, subscribe Karen”? Why not just go into the stock market and earn billions? Why are they behind penny subscriptions and selling courses?

How you are doing now a days.

It appears I am the only odd-man out here.

I do not any investment in any MF. Absolute zero.

I invest in n trade a lot in the stock market directly. No agents, no RMs, n no MFs.

+1, Now two odd-man 😊

 

[Exewhyzee]

Zero None Nil

 

[hender]

Zero None Nil

Now 3 😁