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The Mutual Funds Investment Thread

icebags

Technomancer
What bubble bursting? Before corona lockdown sensex was around 41k while nifty was around 12k & I seriously doubt you will see those levels again. Also, considering a 10 years horizon it can be safely assumed that both nifty & index will be much higher than today.
hmmm seems it may not matter much in 10yrs span. ok, lets not skip it.

also thinking about starting a small amount sip with axis mf small cap fund for long term investment. people also saying this fund is good enough for that, and long term returns also look promising. is it ok ?
 
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TheSloth

The Slowest One
How do you people decide on the duration of the investments? I want to invest for 3 and 5 yrs but do not know what kind of investment should I chose.
 

whitestar_999

Super Moderator
Staff member
How do you people decide on the duration of the investments? I want to invest for 3 and 5 yrs but do not know what kind of investment should I chose.
What's even the point of such short term investments anyway unless you are looking for an extra source of income in which case MFs/stocks are not recommended? For such short duration the safest way is FD but you have to pay full tax on its interest income so best option then is transfer the amount of money to your siblings more than 18 years of age & in school/college & create FD under their name/bank acc to avoid paying tax on FD interest income(money given as gift to direct siblings/own children is 100% tax free provided you have shown that money in your itr).
 

whitestar_999

Super Moderator
Staff member
also thinking about starting a small amount sip with axis mf small cap fund for long term investment. people also saying this fund is good enough for that, and long term returns also look promising. is it ok ?
Better wait for few months in 2022 to pass as markets expected to go through some major churning once the stimulus measure in US & India tapers off.
 

TheSloth

The Slowest One
What's even the point of such short term investments anyway unless you are looking for an extra source of income in which case MFs/stocks are not recommended? For such short duration the safest way is FD but you have to pay full tax on its interest income so best option then is transfer the amount of money to your siblings more than 18 years of age & in school/college & create FD under their name/bank acc to avoid paying tax on FD interest income(money given as gift to direct siblings/own children is 100% tax free provided you have shown that money in your itr).
short duration like upto 5yrs. May be something only for 10 yrs. I am not planning to touch the tax saving ELSS investment for at least 15 yrs since these are have decent returns for long term and also saves tax. But I am not convinced in tying my money for 15 yrs since I don't expect a perfect life where I won't needing money for 15yrs straight and I will be able to handle the money issue just by my salary. Hence the thought of short term investments. IF I am able to save the money continuously for 5yrs without any usage then I will just withdraw half of it for use and put remaining half again in another short term investment.
Also I don't want to put money in Paytm since another KYC will be needed. Since I have have already completed the KYC process with Groww and Zerodha, I thought these platform will have something about short term duration like filter but I could not find. Same reason I am avoiding Kuvera even though it has goal based investments filter; which is my need right now.
 

whitestar_999

Super Moderator
Staff member
short duration like upto 5yrs. May be something only for 10 yrs. I am not planning to touch the tax saving ELSS investment for at least 15 yrs since these are have decent returns for long term and also saves tax. But I am not convinced in tying my money for 15 yrs since I don't expect a perfect life where I won't needing money for 15yrs straight and I will be able to handle the money issue just by my salary. Hence the thought of short term investments. IF I am able to save the money continuously for 5yrs without any usage then I will just withdraw half of it for use and put remaining half again in another short term investment.
Also I don't want to put money in Paytm since another KYC will be needed. Since I have have already completed the KYC process with Groww and Zerodha, I thought these platform will have something about short term duration like filter but I could not find. Same reason I am avoiding Kuvera even though it has goal based investments filter; which is my need right now.
You are supposed to invest/save around 20% of your monthly income in any case & anything above that you can afford to save/invest then do it now & later when requirement is there then decrease it back to 20% at that time. Also it is not "tying money for 15 years" because at the end you get a good return which is required for your goals at that time. People invest in multiple MFs/multiple duration each for a specific goal like one for children education, one for children marriage, one for retirement corpus etc. I will again say, if looking for 3-5 years then best option is FD with at least 5-6% interest rate(create 1 year FD for now as interest rates expected to increase in next few months & FD once opened remained locked at the interest rate at which it is issued) with zero tax(the sibling method mentioned earlier by me).
 

whitestar_999

Super Moderator
Staff member

icebags

Technomancer
seems my funds are back on track. showing good increments now.
anyways, i posted a low cap sip and seems now my 25% of office income going to mf now. may be i should be capping here.
 

TheSloth

The Slowest One
Yes, Excellent fund. Have been investing it in since Oct 2019.
Yeah I read about it. But how is this fund against Nippon India NIFTY Bees and UTI Nifty Index fund? do you think it's better to invest long term in this PP Flexi Cap MF?
 
Yeah I read about it. But how is this fund against Nippon India NIFTY Bees and UTI Nifty Index fund? do you think it's better to invest long term in this PP Flexi Cap MF?
I'll say PPFAS is kind of like a large cap fund but more diversified & with international stock exposure. Good overall IMO. I have picked it over Index fund & have no index MF in my portfolio.
 

TheSloth

The Slowest One
^Any reason you have not picked index funds yet??
I liked the index funds, straightforwardness of investing only in top 50 funds and very low expense ratio of ETF are quite tempting.
 
^Any reason you have not picked index funds yet??
I liked the index funds, straightforwardness of investing only in top 50 funds and very low expense ratio of ETF are quite tempting.
Index fund is like a large-cap fund. PPFAS flexicap one is kind of like a large-cap fund but better diversified IMO, seemed to have better returns & lower volatility, also international exposure.

From what I heard, the historical returns that you see, let's say in Groww, is what you get after expense ratio taken care of.

Check these for regular vs direct plan:
Parag Parikh Flexi Cap Fund - Growth [51.7238] | PPFAS Mutual Fund - Moneycontrol
Parag Parikh Flexi Cap Fund - Direct Plan - Growth [54.7944] | PPFAS Mutual Fund - Moneycontrol
 

TheSloth

The Slowest One
Index fund is like a large-cap fund. PPFAS flexicap one is kind of like a large-cap fund but better diversified IMO, seemed to have better returns & lower volatility, also international exposure.

From what I heard, the historical returns that you see, let's say in Groww, is what you get after expense ratio taken care of.

Check these for regular vs direct plan:
Parag Parikh Flexi Cap Fund - Growth [51.7238] | PPFAS Mutual Fund - Moneycontrol
Parag Parikh Flexi Cap Fund - Direct Plan - Growth [54.7944] | PPFAS Mutual Fund - Moneycontrol
How do you say its better diversified?? It has only 30 holdings compare to a large cap fund with at least 50 stock holdings. Is it because of international stocks??
 
How do you say its better diversified?? It has only 30 holdings compare to a large cap fund with at least 50 stock holdings. Is it because of international stocks??
Yes. Also diversified as in not just large-cap companies, some from mid & small-cap as well. But Alphabet, MS, etc are large cap US stocks.
 

whitestar_999

Super Moderator
Staff member
Index funds are indeed quite similar to large cap MFs but not exactly same & that's why large cap MFs come with the possibility(but not guarantee) of beating index return over a long duration. Keep in mind that in stock markets, the index performance is considered as the benchmark & a good market investment is one which beats index performance while equaling index performance is the avg & anything less than index performance is bad investment.
@TheSloth @omega44-xt
 
Index funds are indeed quite similar to large cap MFs but not exactly same & that's why large cap MFs come with the possibility(but not guarantee) of beating index return over a long duration. Keep in mind that in stock markets, the index performance is considered as the benchmark & a good market investment is one which beats index performance while equaling index performance is the avg & anything less than index performance is bad investment.
@TheSloth @omega44-xt
Yes, agreed. Me not investing in an index fund is just my choice. PPFAS flexicap just seemed better. I have other MFs for riskier bets, high-risk high reward. Only you can know your personal risk appetite.
 

TheSloth

The Slowest One
Isn't the risk is pretty much same in Nifty50 Index fund/ETF or any other large cap MF since they are investing in more or less same firms?
 
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