MF Portfolio Review
Most of my money is in Small Cap funds. Around 95%, the remaining is in Mid Cap funds.
The investment horizon is 20 years.
But one thing that I have learnt from the recent drawdowns is to have balanced portfolio.
I will be adding Flexi Cap fund as well and making the % allocation around 33.33% in each fund.
Hi, How long have you been investing? Your returns seems to be really low, I just started like 5 months back and I currently have a 11% negative returns, Still I continue investing assuming that in the long run it would beat FD returns, but after looking at your portfolio I am questioning by choice.
Hi. I only started investing properly from 2022 although the sip amount was really less.
Most of the money is in small caps as I mentioned. I had around 26% xirr in December, but due to the recent market correction, it dropped significantly. I learnt the hard way about diversification so as to minimise my loss during market downturns.
Thatās a good sum invested considering the time frame, thanks for sharing your experience, Have you ever thought about switching your investments to RD considering the low risk and steady returns? What makes people stick to SIP? I am sticking to SIP myself, but I was wondering why.
20 years is excellent horizon for stocks that are well researched. But 20 years is too long a horizon for "mutual funds" , you need to churn it every few years . fund managers change , their strategy changes etc so what looks like excellent return today will be one of the worst in few years so you need to keep checking performance and if some MF is not out performing the market , replace it with some thing else. I do that every 3 years.
I don't have enough knowledge nor enough conviction to put my money in a given stock for 20 years. What you said is totally correct and I am okay doing that.
For a 20 yrs horizon, you should hold more large caps. Small caps are short time bets.
That's a very wrong view my friend. I'll give the logic. Small caps fluctuate a lot in the short term. If you wish to exit small caps within a year or two there is a very high chance you exit in a down cycle with 10 or 20 points down.
Large caps on the other band are like debt funds, they don't fluctuate much and can be redeemed in a tear or two without much risk of losing capital.
So, whoever told you small cap is for short term, you should stop listening to them.
there's so many things wrong with your view but I'll not argue on that. i do equity and fixed income quants research work for hedge fund clients and i can't press it enough
I would suggest you to have only three MFs Large Cap (50%) Icici Prudential Bluechip Direct Growth Mid Cap (30%) Motilal Oswal Mid Cap Direct Growth Small Cap (20%) Tata Small Cap Direct Growth
Thanks for your suggestion. Instead of Large Caps, I would prefer Flexi Cap.
If you check the data, large caps have rarely even beaten the index funds, so why should I pay extra money for expense ration.
I agree but check historical data. I feel if I'm going with Flexi cap I don't need anything else
I put 10.88 lacs in mf in Aug 2023 ish, then some lic stock and manapuram stock and my total portfolio turned to 17 lacs by Sept 02 2024. Sensex falling by 10k pts really hurt me and I also got married recently which wasn't helping the situation as expenses sky rocketed
Now my portfolio has net profit of 3.24Lš
What is this money for? For your retirement or some other goal?
I invest in small cap, blue chips, large cap, gold etf, silver etf
