The Mutual Funds Investment Thread

[Vyom]

I advise you watch "Mutual Fund Guide" By LaborLawAdvisor in youtube, they seem to be "neutral" youtube channel compared to Akshat Shrivastava/Ankur Warikoo.

LLA channel is THE best channel for financial knowledge and awareness. The amount of well researched and deep knowledge they provide in every video is unmatched.
Been watching them since years and what Nerevarine said is true.

I stopped watching Warikoo though. He's just businessman.
Akshat is also good, but he explains micro economics in detail and sometimes it can get hard to follow. Anyway, his recommendations can be very counter to what investors call, safe, and if you are not already a veteran, it can backfire.
Also he does lots of course promotion. But if you can get passed that he does explains how to study a company and economics in painful details.

 

[thetechfreak]

I stopped watching Warikoo though. He's just businessman.
Akshat is also good, but he explains micro economics in detail and sometimes it can get hard to follow. Anyway, his recommendations can be very counter to what investors call, safe, and if you are not already a veteran, it can backfire.

Thanks for finally admitting this.

 

[TheSloth]

1. I want to start investing in index funds but confused between the options.
E.g. ICICI and UTI both have same returns for 1,3 and 5 years but their NAV is different, UTI has INR167.6 and ICICI has INR252.2.
So how do you chose between these two? which one is better? or this is insignificant parameter in this decision?

View attachment Screenshot 2024-07-06 075740.png

2. I was thinking to split the investment between Nifty 50 Index, Flexi Cap and Nifty Next 50. I have decided to invest in Nifty50 and Flexi cap for long terms(>10yrs) but there are some doubts regarding NiftyNext50

1. how much percentage of investment is recommended in Nifty Next 50.
2. How long should be the investment? Since its even more volatile than Nifty50, should the investment be withdrawn yearly from it?

 

[omega44-xt]

1. I want to start investing in index funds but confused between the options.
E.g. ICICI and UTI both have same returns for 1,3 and 5 years but their NAV is different, UTI has INR167.6 and ICICI has INR252.2.
So how do you chose between these two? which one is better? or this is insignificant parameter in this decision?

View attachment 22906

2. I was thinking to split the investment between Nifty 50 Index, Flexi Cap and Nifty Next 50. I have decided to invest in Nifty50 and Flexi cap for long terms(>10yrs) but there are some doubts regarding NiftyNext50

1. how much percentage of investment is recommended in Nifty Next 50.
2. How long should be the investment? Since its even more volatile than Nifty50, should the investment be withdrawn yearly from it?

1. NAV doesn't matter. Returns are supposed to be similar as it is a passive fund tracking an index, so Nifty index will have returns very similar to Nifty.

2. Maybe put it in small cap instead of next 50. Your call based on risk appetite.

 

[Vyom]

Only invest in MF what you are comfortable holding for multiple years. At the current market levels investing lumpsum is not advised. But SIP would be best. Keep some funds as Opportunity funds to invest on market dips.
You seem to lack some fundamental knowledge about the kinds or funds in the market. I would suggest reading and learning about it more before you invest your money.

 

[TheSloth]

Hey guys, Thanks for replying!!

@omega44-xt Why do you suggest small cap against Next50?
@Vyom yes i try to read more about these from time to time but still have not gained confidence. What knowledge do you think I am lacking from my previous post? Point me in some direction please.

I am still trying to find out how much and how long to invest in small cap/nifty next 50. I just want to get started with the investments!!

 

[shreeux]

Hey guys, Thanks for replying!!

@omega44-xt Why do you suggest small cap against Next50?
@Vyom yes i try to read more about these from time to time but still have not gained confidence. What knowledge do you think I am lacking from my previous post? Point me in some direction please.

I am still trying to find out how much and how long to invest in small cap/nifty next 50. I just want to get started with the investments!!

Atleast try in 4 to 5 funds with different category...Large, Mid, Small, Flexi, Debt or Elss

 

[TheSloth]

Atleast try in 4 to 5 funds with different category...Large, Mid, Small, Flexi, Debt or Elss

I do not want to diversify so much! I want to keep it simple so that its easy to learn and invest. So I have chosen 1 Nifty50, Flexi Cap and Small Cap/Nifty Next 50 categories.
Apart from this, I am already investing in NPS and will add Sovereign Gold Bonds, that's all I can manage.

 

[shreeux]

I do not want to diversify so much! I want to keep it simple so that its easy to learn and invest. So I have chosen 1 Nifty50, Flexi Cap and Small Cap/Nifty Next 50 categories.
Apart from this, I am already investing in NPS and will add Sovereign Gold Bonds, that's all I can manage.

Good...After invest...
Learn or track... above said category, choose the best one in each category, and see the performance and compare after 1 year.

 

[sling-shot]

It is generally advised to stay invested in a fund and not change frequently right? Also the situation is like selecting the best toll gate in a toll plaza. The queue you have joined suddenly might get stuck and everyone else might zoom past.

It is almost betting at this point.

 

[TheSloth]

What is the advise in case things go suddenly bad?
1. wait and watch the market?
2. start withdrawing(in parts/full) from the invested fund and start investing in other?
what else ?
Everything above is question, i want to know if I am guessing right and what else to keep in mind when facing this situation.

 

[omega44-xt]

No idea what will happen in future.

 

[rockfella]

What is the advise in case things go suddenly bad?
1. wait and watch the market?
2. start withdrawing(in parts/full) from the invested fund and start investing in other?
what else ?
Everything above is question, i want to know if I am guessing right and what else to keep in mind when facing this situation.

Buddy nobody knows what will happen. Just let your SIPS do their work. Don't try to "time" the market. Time "in" the market will give you life changing results.

 

[TheSloth]

Even when market crashed, we should the continue the SIPs instead of waiting for market to recover? Or we should stop for few days/months and keep an eye on market/news?

 

[shreeux]

Even when market crashed, we should the continue the SIPs instead of waiting for market to recover? Or we should stop for few days/months and keep an eye on market/news?

To be continued... or Add more if possible

 

[shreeux]

No idea what will happen in future.

The future is always there. We will not be there.

 

[Nerevarine]

Even when market crashed, we should the continue the SIPs instead of waiting for market to recover? Or we should stop for few days/months and keep an eye on market/news?

When market crashes, it is even more of a reason to continue SIPs. If you have time, then also buy more funds/shares directly during the crash. Make sure whatever you buy allots you NAV as soon as possible and not 1-2 days late.

 

[TheSloth]

NAV for mutual funds is calculated only end of the day no? So that is the max(least) we can get? I think ETFs have this option of current NAV like intraday. Please correct me if I am wrong.

 

[shreeux]

NAV for mutual funds is calculated only end of the day no? So that is the max(least) we can get? I think ETFs have this option of current NAV like intraday. Please correct me if I am wrong.

Yes...NAV is close price only
ETF has OHLC

 

[Nerevarine]

NAV for mutual funds is calculated only end of the day no? So that is the max(least) we can get? I think ETFs have this option of current NAV like intraday. Please correct me if I am wrong.

Yes sorry for late reply. Buy ETF during crash. I go for SBI ETF but there are other better options. But make sure you stay invested in mutual fund always. never ever skip a SIP. Also add step up to whatever percent you think your salary would grow by (atleast min 6% taking into account inflation).

If after a year of investing X amount of principal, if it generates capital gain (max 1.25 lakhs worth possible). Make sure to withdraw it and put it back in the very next day. (Tax harvesting). Do this once every financial year.