How many Mutual Funds should I have in my Portfolio?
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- Опубліковано 22 лют 2023
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A commonly asked question is - How many mutual funds should I have in my investment portfolio? In this short video, I explain my preferred set of mutual fund scheme types including the allocation I use. To put is as a summary, my ideal mutual fund portfolio will include 7 mutual funds:
‣ 1 Large Cap fund (25%)
‣ 1 Mid Cap fund (12%)
‣ 1 Small Cap fund (12%)
‣ 1 International fund (12%)
‣ 1 Gold fund (5%)
‣ 1 Liquid or Money Market debt fund (15%)
‣ 1 Short or Medium Duration debt fund (20%)
For more details on how I design my portfolio, watch this video:
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Instead of Large cap investing in Nifty is more cheaper with same returns as large cap
Most large cap funds were able to beat nifty 50 easily in >3Y time period with better downside protection..
Anyway I prefer flexi cap as it is also large cap biased and gives better risk adjusted returns
@@rurudradidi tou invest in both (large and flexi)
@@rurudra which flexi cap fund is best according to you after Parag Parikh
@@prajwaljeetmohapatra4957 if you already have parag Parikh then other flexi cap u choose can be more volatile and should have high returns potential.
Like Quant flexi cap or JM flexi cap
If you already have any quant fund in your portfolio then go for JM Flexi cap
Quand and HDFC @@prajwaljeetmohapatra4957
I have everything in equity 😂
Me too and seen almost every cycle except 2008.
Same bro😂😂😂
I took out money from my other funds and put them in equity. I felt like I'm missing the opportunities of equity if I keep my money elsewhere.
good only
don't fall for all the debt bs and if want to invest into gold buy sgbs and elss for tax saving
@@saifialigI am a beginner in stock market. Can you tell me how much total returns you got how many years?
I have everything in equity & 30% large cap index - 30% midcap - 30% smallcap - 10% elss
Kudos to who found total is not 100%
That rest is ELSS
He always gives his 101 percent
1 multicap
1 elss
1 gold fund
1 liquid
For NPS subscribers, this allocation will take care by NPS itself. For me I have 6 funds. 5 EQ, 1 liquid fund. In equity, 1 ELSS, 1 Flexi, 1 multicap, 1 sector and 1 international fund.
Thanks for sharing
@@shankarnathy many youtubers promote gold or debt as investment, which will never beat equity, not in the bear market forget about bull or sideways market. Warren Buffett himself said don't bet against equity. Tell me one person who has accumulated wealth investing in debt or gold.
Debt or gold never beats equity in the short or long term. New investor don't have hugh chunk. They should only invest in small and mid cap equity, 100%.
I'm glad that some people actually talk about gold and it's usefulness in building a strong investing portfolio. Even I ask people to have some proportion even if it's 5%, in gold as it is an excellent diversifier. I even explained this in a video where I showed how a combination of 60% equity + 25% debt + 15% gold would have given the same returns as a 100% equity investment over the last 16 years (link: ua-cam.com/video/VEwLxHVMhh8/v-deo.html)
Sooo good .. thank you 🙏
Thank you!
Mine Large cap 30% midcap 15% small cap 15% foreign equity 20% debt 10% Gold 10%
Bhai gold physical loge jada benefit milega like gold coin n something ya phir S Gold bonds lelo jada profit milega usme gold fund loge usme fund wale paise le jayega Har saal thoda thoda phir rote rhena k paise whi khade hai
50% equity
40% cash
10% trading FnO
Cash?
In portfolio
@@rashid4490debt fund may be
40% cash in what?
Liquid fund@@rashid4490
Cash means low duration debt funds. Like overnight funds or ultra short duration funds or even LiquidBees.
Thank you sir ji❤
Most welcome
Instead of Debt fund we can just invest in Bank FDs and postal FDs where we get 7-8% Intrest without any risk ... And in Debt fund we get 9-10% but with little risk.... Instead of gold bonds.. Buying 24 karrot gold is good....
Is it good that one has nps and ppf both, along with equity and FD??
I have 8 equity funds 1in large cap 2 in small cap 2 in mid cap 1 in nifty 50 index 1 in balanced 1 in genx fund . So question is it is good to go for above
Hi Shankar Sir, Do you think money Market fund can be used to park emergency corpus alongwith Bank FD?
Yes, I think so
It should be based on ur age..to start, one can invest 80% in equity.. what he is told is for ppl above 40 age
Please watch my more detailed video on asset allocation for a better perspective on this: ua-cam.com/video/VEwLxHVMhh8/v-deo.html
One single multi asset would suffice then. Instead of paying expense to multiple funds plus manually rebalancing the portfolio depending upon the valuation of each asset class.
It's a good point you raise & I used to think that. But I figured tactical asset allocation is also very important and as I explained in a few of my earlier videos, I buy & sell units tactically to take advantage of valuation gaps. Sometimes large caps are overvalued, small caps are undervalued etc.
@@shankarnath But with each purchase and sale of multiple equity funds, we end up losing money on fees and taxes. One good multi asset with ocassionally rebalancing would be simpler and effective solution. Tactical asset allocation might sound good for an experienced investor as they feel they can afford to take chances for higher returns. But for a simpleton who is completely noob about investing, I feel multi asset is more than enough with proper goals mapped to it and rebalancing it every 6 months or so.
Most of the Fund managers think in one direction, so either your large caps will do good, or your small caps..so either way your overall cagr will be less, it's better to have the cap in hand
Hi Aarvind - Thanks for sharing your views.
I have tried both variants i.e. strategic & tactical, paid taxes where applicable, examined the effort involved .. and have figured that one is better than the other. In the process, I was able to reduce my portfolio risk & improve my portfolio returns. Ofcourse, this is entirely my view of the world :)
Is it ok to invest in conservative Hybrid funds, will it be sufficient to cover our debt portfolio requirements.
It should. Please examine different categories under it for a clearer understanding esp. conservative hybrid, balanced advantage and equity savings fund categories
I am having 100% in equity
@@Manishshriyan You have mutual fund, all three mentioned above are mutual and index funds, but I don't have neither index nor mutual funds, I generally invest directly in stocks(equity).
I think our country is at a very good growth rate, so I prefer investing in growing sector, directly through equity.
@@abhidev4048 bro can you tell me what are the you have bought
I do sip of 8000 with 7 mutual fund all are equity fund
I am planning to do the same can u tell those mutual funds
One Index fund (Nifty 50) is more than enough - just my opinion.. No other funds proven beating Nifty in the long term 20 years.!!
Then see SBI small cap returns last 20 years
@@anand6132s SBI small cap is not 20 years old yet! But, I believe small cap funds will beat nifty 50 in the long-term!
Unless you have a large capital to invest , I feel 3-4 funds are enough
1. Flexicap
2. Elss
3. Gold
4. Debt (liquid/short term)
Gold wala kon sa h naam batao
@@abhishekkumarsingh3678 There are so many if you google. However I would prefer only HDFC gold fund, Nippon India Gold savings or ICICI gold fund.
@@lucifer8163 Kotal gold fund hm gives good returns as well
I have 1 large cap, 1 small cap, 1 mid cap, 1 micro cap, 1 thematic and 2 international funds.
I have 150 rs. udhaar from my paan wala bhaiya.
Which micro cap??
@@manishssawantmotilal oswal
which international funds
You speak fluent nice.
Cooomon Question
Nope, this is overdiversified. 5% Gold??! For what?
Your thoughts on keeping ppf & bank fd instead of debt funds & your views on Axis Triple Advantage fund?
PPF and bank FDs are good substitutes for debt funds. I haven't analysed the Axis Triple Advantage Fund .. let me circle back when I come round to it
@@shankarnathdid you check? Pls let us know
What about flexi cap fund
Shankar.. I usually avoid the debt funds due to my religious beliefs... Is there any other option for other hedging..?
Gold & real estate is generally preferred as a substitute to debt. Specifically -
1. Gold via SGB offers a 2.5% interest + opportunity of capital appreciation (please examine if this kind of interest works because all said & done the GOI is borrowing and paying an interest. However unlike other FD-type instruments, the bigger scope is capital appreciation)
2. Real estate need not be purchase of property. You can examine REITs or fractional real estate (I have a video on both)
Outside of these, a good wealth manager can help with AIF products. E.g. I heard of a covered call option which offers 14 - 18% p.a. currently at low volatility. I don't think there is an interest element within this but the wealth RM can clarify. Ofcourse, the ticket size is pretty high for such AIF products
Hope this helps.
Logic behind it?
Sir, Knowingly or unknowingly I have all the categories mentioned in the list apart from gold. Do I really need to add gold fund in my portfolio?? 😊
I'm releasing a video on Gold next week. I'll be putting forth some points there that you can consider. Also, please watch my video on Asset Allocation. That'll give you some food for thought
@@shankarnath thank you..
12% in international fund doesn't make sense, it should be 5%.
😂
Can someone guide me how to invest in International fund , through which platform
Thanks in advance
You can Invest in Nasdaq through Kite App
After the equity fund is taxed , should we have it in our pf?
No
With removal of indexation benefit from debt funds, is it still better than fd?
Kindly watch my video on this: ua-cam.com/video/h32ThMSJt80/v-deo.html
❤️
*My Investment Proportion*
ELSS : 20%
Debt : 20%
Nasdaq : 20%
Gold : 10%
Midcap : 10%
Smallcap : 10%
REIT : 5%
Crypto : 5%
Bank FDs are giving lucrative interests right now, is it wise to invest some of our portfolios in them?
Emergency fund only.
What about real estate
As far as debt and gold allocation is concerned, is it good to just have an FD and the remaining to equity?
Some points for you to consider:
1. Debt funds give higher post-tax returns than FDs (on FDs, I pay 30% tax while on debt funds, it's 20% with indexation benefits) so if returns are more for you then you should balance the FD & debt funds part
2. Debt funds also give a little more flexibility i.e. you can buy, sell, switch at ease. I've found a bit more resistance coming into & out of FDs
3. With re: gold, long-term returns are between 8-9% pre-tax. With tax (LTCG is 20% with indexation), it's about 7-8% .. so better than post-tax FDs. Again if returns are important, then keep a balance
4. I'll prefer to diversify. FDs and debt funds have similar risks of interest rate changes and defaults. Gold have other risk and generally work in an opposite direction to equities. So more food for thought for you
Considering FD rates are now about 7% will the post tax returns be more if we invest in FDs as of now? Also if a person is in his 30s is it good to have just equity and debt (by debt I mean only FD) in the allocation and no gold considering he can stay invested in equity for 5 years or more
1. Since the fixed deposit locks your returns .. so at 7% ... post tax returns = 7% minus investor's tax slab. So in my case, it's 7% - (30% of it) = 4.9%. You have to decide on this basis.
2. There is no general rule around this. Many people use equity and fixed deposits .. and many others don't. It's for you to do the research and figure out your comfort. A great point to start your introspection is : why don't you use debt funds?
Considering a person is just 31 year old and has started his stocks/mutual funds investment last year, is it right to just focus on equity considering he has a 5 years or a longer view to stay invested in it and let the remaining money stay in the bank account considering it to be debt for now. And then at a later stage increasing debt exposure to may be PPF or debt funds?
Modern day finance gurus!! 😅
Sir, I am 40yrs old and investing 30% in 2 small cap mfs, 20% flexi cap, 10% Nasdaq100, 10% NPS aggressive, 10% gold, 20% pf. Planned to invest in equities till 15yrs before it gets transferred to safer bets. Plz suggest for amends sir?
How to invest in NASDAQ
For a young investor this allocation doesn't make sense.
How do you invest directly in US stocks?
Hi. I presently don't invest in US stocks directly
Hello sir.
I have come across an incident that I need your help to solve.
My grandfather had invested into SBI mutual funds around 15-20 years ago.
I can access those folios now and reactivated his account and turns out he received dividends which are not received in the bank acc previously (now i receive dividends) which means they are unclaimed.
Please tell me how I can claim those if you have the idea 😅
That will be of a great help
Thank you so much in advance sir
So nice to know that I can ask you doubts and receive respectable answers 🙏🏻
Hi. You can connect with the AMC directly for this. Write them an email & also call at their customer service. Better still, if there is a branch nearby you can visit them and clarify the matter.
@@shankarnath ok sir will surely do that
I just wanted to ask if dividends lapse because I don't know if they are reinvested too
Thanka
@@rheopar1325 I'm not sure actually because I have never invested in a dividend plan myself.
@@shankarnath OK sir.
is the scenario same in shares of a company that sends cheques as dividend and if these are not encashed, are they still treated as dividends payable?
Sir do debt funds and FDs fulfill the same purpose?
No, the objectives, tenure, risk, return changes esp. with this new tax rule on LTCG. Please watch this video for more specifics: ua-cam.com/video/h32ThMSJt80/v-deo.html
Hi lic policy is good or bad. I have lic its can be substitute debt funds.
In my view, no policy or product is bad if it serves your needs. Your requirements need not be another person's requirements or views. As a competent investor, you should evaluate your LIC policy against two simple questions:
a) Does it serve your requirement?
b) Were there any better alternatives?
@@shankarnath Lic policy giving lifetime cover insurance and returns. Now is 50% of my portfolio Ssy and lic. remaining 50% Equity and stocks small case.
I think gov suopport for first 50 % , safe and normal returns.
Equity looking higher returs.
Is there any modifications needed
@@user-tf9my3ut9tthe lifetime xirr of LIC is 4-5% max. LIC is not called investment. It's called money wastage plan. I had 4 LiC policies since last 10 years. I am surrendering all of them now though I will incurr heavy losses. I will surrender them and invest the amount into mutual funds.
Komon question
Hi Shankar, will it be considered wise to have 2 small cap funds to minimise the risk? Or will that lead to over diversification which is known to reduce returns. Would love to hear your take on this, thanks!
Hello Pranav -- can I get some context on point 1 (i.e. small cap & risk minimization)? i.e. the research on small caps and risk that you have come across
With re point 2 .. here's how I look at it. The worse case scenario that'll happen due to over diversification is that your portfolio will start mimicing the index. And given what we are seeing today, the index if beating most actively managed funds. In that regards, the casualty between low returns and diversification seems a little suspect.
Hope this helps.
@@shankarnath thankyou for the insights covered in point 2, certainty makes sense.
Here is some more context for point 1 - by risk i was actually referring to drawdown/volatility, small caps by their nature face a lot of volatility, therefore if our portfolio's small cap allocation is done into 2 different smallcap funds rather than just 1 fund, will this strategy help minimise the volatility at any given point of time, thereby increasing returns Or 1 smallcap fund would be more than enough?
Got it. Then in my view, the number of funds will not help. Increasing the number of funds of the same type does not reduce volatility.
@@shankarnath I disagree with u.
Two funds with little overlap will help reduce volatility.
One fund may do well than other in such times which will protect the portfolio from sharp decline.
Especially in the small cap and midcap space.
Not in the large cap space as there r only 100 stocks to play with which is not the matter with small and midcap
@@dockad6870 Interesting. I would surely want to do a follow-up on this. Which 2 small cap funds do you think will reduce volatility if I do a 50-50 combination? I'll be happy to present my findings for the benefit of all
instead of a large, mid and small cap fund, how about 1 flexi cap fund?
Flexicap should be fine if the investor is OK rescinding control of asset classes to the fund manager. I prefer having clarity over the % level of assets hence would like a breakdown. I've explained this in greater details here: ua-cam.com/video/bN5QdxY3RVs/v-deo.html
@@shankarnath I love watching your videos. Really Fresh and insightful as compared to typical top stocks and top mutual funds videos. Clears a lot of concepts.
@@marketswithmohit Thank you very much 🙌
Shankar sir can I have two funds in one category ?
Sure, that is perfectly fine
@@shankarnath Thanks a lot ..Your way of explanation is fabulous ...
Mutual fund in itself is a portfolio. I personally don't see any value in multiple mutual funds. Especially, if it is not a small cap fund. 1 small cap fund should be good as far as diversification and alpha is concerned.
I disagree. Midcap provides better return than largecap and safer than smallcap. But unless you specifically invest in midcap fund, you can't get enough exposure in every category. But again, it's all upto your personal risk appetite.
Can one have PPF as an alternative for Debt Funds ?
4 equities, 1 Gold and yearly 1.5 lakh in PPF ?
That PPF is better than any Debt fund.
Agree👍
Sure
U can but liquidity issue is there in ppf as lock in period is 15 yrs and then it's 5 yes
@@paramjeet1699 not for next 3-4 year horizon
👍👍👍👍👍👍👍
Absence of index fund is surprising...
Index funds are also categorised according to capitalization. You can have respective index fund like Nifty50/100 in large cap, Nifty MIDCAP 150 for midcap and so on..
LargeCap can be replaced with Nifty50 /Sensex fund
Better we need to go with sensex fund instead of nifty50 index fund. Sensex is more concentrated fund with just 30 stocks. It doesn't have Adani stock 😆. If we invest in nifty50, even if Adani falling more than 50% it is not moving out of index. Here sensex is having an advantage.
Index fund is a sub-set of mutual funds and are available under most equity & even debt categories. Specifics of that with re: my portfolio is available in a longer video I made a couple months back. Link: ua-cam.com/video/bN5QdxY3RVs/v-deo.html
50% in Flexi Cap Fund
50% in Small Cap Fund
Mandi ayegi
Usse pehle change kr le
if you are in for atleast 3+ years than its good as largecap just slows you down in longrun
Why can't we add sectorial funds into our portfolio in equity. Let take now finance and defence are booming we can have them till they grow for couple of years and we can divert to other. Just want to check weather my thinking is correct or not
Yes, you can. Pls check my details video on sectoral investing here: ua-cam.com/video/mTXkio4dE0Y/v-deo.html
What’s the deal with Indian investors and gold? Here in the states gold is barely touched because of its poor performance but maybe I’m missing something?
Long-term returns from gold are 9-10%! And, Indians love to wear golden jewellery! And it's easier to get loans against gold at lower interest rates!
Please review
All 2k distribution of 10k mfs
Mirae Tax saver
Parag parek tax saver
Canara robeco small cap
Quant small cap
Navi Nasdaq 100 fof
Planning to add one mid cap motilal or sbi .. and should I add one index fund and exit one tax saver?? Please suggest
Hi,
Please review below 2 portfolios. I want to make 1 crore portfolio in around 15 years
1. Parag Parikh flexi cap- 5000
2. Motilal Oswal midacp- 5000
3. Quant small cap- 5000
4. Nippon small cap - 5000
Vs
1. Parag Parikh flexi cap- 2500
2. Jm flexi cap- 2500
3. Motilal Oswal midacp- 3000
4. Quant midacp- 3000
5. Quant small cap- 5000
6. Nippon small cap - 5000
Which one would be better? Is Tata small cap funds good to be added with lowering any other sip along with quant and Nippon small cap? Please reply 🙏
What would be the overlap percentage here? With such a high number of funds don't we face overlap? If in that case 1 flexi cap fund doesn't suffice ?
That'll depend on the funds you pick. You can check out the overlap feature in advisorkhoj.com .. it's a pretty cool functionality they have
1 flexicap is not advisable at all. For example a certain flexicap invests much more in largecap. So chances of growth would be very limited.
@@CS-dx1fx ELSS mutual funds are also similar to flexicap and have always beaten the benchmark.
Sir, Your explanations are very good....but request you to share deep knowledge.....as now a days every one is advising only....not by genuine heart.... As everyone says MFs Sahi hai....lekin no body tells dark side of them.... As a innocent investor loss hard earned money....with very less returns....hence please share good genuine advise for betterment of Average family earner....and for safe investment....Thank You....
Index ?
There is not much CAGR difference between large cap, mid or small. If you are below 30 yrs go with 80% in NIFTY50 20% in Large Cap ; 30-60yrs - 50% in NIFTY50 50% in large cap ; 60yrs welcome to 25 crore club 🎉
Debt funds do not perform that well. I think your allocation to debt funds is on the higher side
I got nothing on
Debt and gold .. 🥺🥺
My equities are over over diversified and very diluted across so many sectors 🥺🥺
Shankar, you have Portfolio having Home country bias..80% Equity is in Home Country and just 20% in Global Equity.. 😮
Keep small cap and midcap only u can double in 2-3 years.
I have fnk 10 funds in Equity... am i dead???
Don't understand as beginner
Elss
Debt funds
lol I have 49 funds with 76% total return as of 31st Dec 2023
We have a category called Multi-Asset Fund which has everything in one.
Large
Mid
Small
International exposure
Debt fund
Gold & other commodities.
Ise badhiya niftybees hi lelo Bhai
Ok sir now i willl buy nifty etf sip 😂
Weird thing is on an average gold has given the highest returns.
Give me some i’ll do it
90% equity
10% jaha dalna hai waha daalo😅
Over diversified
Pura market hi hua yeh
Worst portfolio
Plz give ideal portfolio bro