I've also been tempted to add Nifty midcap 150 index to my portfolio, given the significant outperformance in the last year! But I now see Pattu Sir's point. When there is a significant liquidity event in the market (something likely to happen a few times in the life of a developing country whose systems are still maturing and evolving), the crash can be significant! So this should temper one's investment into midcaps. Nifty 50 is likely enough, at the most with a little dose of Nifty Next 50.
If I look at returns based on a monthly investment for the past 2yrs mid cap 150 seems to be now lagging behind nifty next 50 which was not the case 6 months ago. So the recommendation on nifty 50 and next 50 does seem to hold credibility. Nifty 100 or any other more cumulative index simply seems too rigid as at any time we either have a broad market rally or cap specific rally and you want to rebalance across nifty 50 and next 50 instead of buying nifty 100 in same weightage. Anyways , every investor will have their own data point.
One of the benefits of index investing is to keep investing very simple, and focus on the rest of one's life. This means not needing to know much about markets and it's valuations, and yet do well enough on one's financial goals. From this point of view, a Nifty 100 is even better than a Nifty 50, as it covers more of the market. The only deterrent is that the expense ratio of Nifty 100 funds are much higher currently. @@whiteroommenace
Index fund is now giving opportunity for short term hence for one or three month if we can park money we can make good return. Since most index funds has 15 days redemption period so it's good for short term. For long term may be we get 12 to 22 percentage return.
1. Index and etf- 1. Index investing is better than etf coz in etf live market price may be a lot diff from nav 2. If in etf diff b/w live price and nav decreases thru some regulatory intervention point 1 can be challenged 3. Tracking error doesnt hold much imp, at the eod return are to be compared(rolling returns are the best metrics for laid back passive long term investors)
2. Small Cap and Midcap(Active and passive) 1. Rare active small cap fund or active mid cap fund can beat the midcap index 2. Thus mid cap index is better than active small or active mid cap funds
3. Next 50 v/s midcap and small cap 1. Nifty next 50 return is very close to nifty midcap index. 2. Next 50 has more liquidity as compared to small cap 250 or midcap 100 3. Next 50 is matured/seasoned against crisis times standing the test of time 4. Small or mid cap is yet to witness crisises 5. Thus next 50 is a better option than small cap/mid cap Summary: Pattu sir advocates high weightage of large cap index with a little exposure to next 50 if feelimg fomo for long term(all passive)
No clickbait thumbnails, unpopular opinions, hitting with facts, honest to say that I don't know about the future... Hmm qualifications for an unsung finfluencer... 🎉
Please give some valuable inputs about the nifty large midcap 250 Index. Can this be the only one fund where we can put our money ditching all other actively managed mid small cap funds
Moral of the story: if going passive have at least 65 to 70 percent in Nifty 50 the rest can be in nifty next 50 or a combination of next 50 and midcap 150. However my personal opinion is to have just one equity fund and that is NSE100. Keeps life simple
Pattu sir, All your efforts are highly appreciable.. Thank you very much for making such a responsible video.. Please keep rocking.. I would like to have a video how to get detailed history of a certain stocks through pandas (python)
Thank you Sir for the two part series 🙏🏼 Lucid and enlightening. Every time I get FOMO when someone shows me their "Groww" app portfolio and a stock giving 250% return during the last 1 year (they never show the loss making stocks), I will re-watch these videos to stay sane.
Pattu sir, thanks for this clarity. You have helped me build an investment philosophy of my own with conviction and which is mostly 'Keep it simple'! Thank you so much.
Following Pattu Sir for more than 5 years now. Always brings me back to safety and avoiding unnecessary things in investing and life. Great insight, which you will never get anywhere else. Also, I would highly recommend people to read Random Walk down the Wall Street book to know further on this topic. Cheers!
Thanks Pattu sir, always, for sharing knowledge very responsibly to us without bias. You are a great example that people learn and come from scratch will be guiding and leading others.. Thanks again a lot sir. Please continue and share your good self knowledge sir.
Sir, please take my question. Should an investor hold cash at any given time, if yes then where should I keep that cash in India and how much percentage of cash an investor should keep at all times? I am asking because warren buffett parks cash in U.S. Treasury bonds all most all the time.
Hi sir, recently started watching your videos . I really like the idea of goal based investing , currently i invest in nifty 50 and largemidcap250 but as you say to seperately invest for each goal does it mean i should start investing in another seperate nifty 50 fund lke a new one for that goal like basically how do i seperate the investing for different goals
Can you make a video explaining why retaining a Debt fund longer than its tenure makes more sense (for eg Gilt fund or a Short Term Debt fund). Your insight will be valuable to all who also invest in Debt funds.
Sir, My age 26,,, removes all mid and small craps from my portfolio. I don't need money for next 20 years. Added UTI S&P BSE Low Volatility and Nifty Next 50 in 50:50 ratio.... Is it right way to mix low volatility with high risk? If yes dn should i do periodically rebalancing between them?
Please help - : I have a folio of 1.5 cr plus. All in Equity. 70% in index funds (Nifty 50 and Next 50). Both funds are from the same fund house, happens to be UTI. Should I choose a different fund house for my further investment to de-risk the fund house concentration? OR it doesn't matter?
Hi sir .. I'm 17 yr old student i want to invest early .. so i save amount around 5k by some part time jobs .. investing in index fund is not possible in this time for me bez I'm not earn money monthly.. so i going to invest in individual stocks ... Going to create more diversified portfolio .. i option is correct, suggest me any idea to invest ....
Hello Sir. Always admirer of your work from last 5 years. Great work. Can you please discuss the portfolio for 35 years age persons perspective. Does Index Investing will work for 35 year old person. 😊
Hello Pattu sir I have a genuine doubt sir. After listening to you I have decided to sell my different active mutual funds. But Why you have not sold Parag Parikh Flexi Cap fund and invested that amount in Index fund. Why did you kept that active fund for so many years. This is a genuine doubt. Please reply sir
@PersonalFinanceCalculators Pattu, I think I have been saying this since 2018 but I need you to act on it and fix this one for me PLEASE! The past tense of "beat" is still "beat" its not "bet" or "bate" (whichever you are saying). And "beaten" is the past participle. So, in the last x years, y has not beat z, but z has beaten y.
And I checked since the last time you said it, or perhaps every time. I am not an expert on grammar like you, but the little search I have done tells me some people around the world say it like I do, which is good enough for me.
@@pattufreefincal You don't have to be an expert in grammar like am not one in physics... but if I can learn personal finance from you, why can't you take a little constructive criticism instead of defending an untenable position with some "search"? LOL Not the humble Pattu I spoke with in 2018 anymore, are you?
Sir, i have the below funds after watching your videos for 4 years. Nifty 50 index fund nifty next 50 index fund Midcap 150 index fund Smallcap 250 index fund do you want me to remove/add anything?
Remove the midcap and small cap index. Buy a debt mutual fund with that and every year balance your portfolio equity:debt mutual fund in 60:40 ratio every 1 or 2 year.
Thank you Pattu sir. You have taught me the life lesson "Keep it simple"..! Forever grateful to you sir.
I've also been tempted to add Nifty midcap 150 index to my portfolio, given the significant outperformance in the last year! But I now see Pattu Sir's point. When there is a significant liquidity event in the market (something likely to happen a few times in the life of a developing country whose systems are still maturing and evolving), the crash can be significant! So this should temper one's investment into midcaps. Nifty 50 is likely enough, at the most with a little dose of Nifty Next 50.
You definitely gonna make low returns. Unlike small cap 250. Nifty 150 midcap historically always outperformed every other indices atleast by 2%
If I look at returns based on a monthly investment for the past 2yrs mid cap 150 seems to be now lagging behind nifty next 50 which was not the case 6 months ago.
So the recommendation on nifty 50 and next 50 does seem to hold credibility.
Nifty 100 or any other more cumulative index simply seems too rigid as at any time we either have a broad market rally or cap specific rally and you want to rebalance across nifty 50 and next 50 instead of buying nifty 100 in same weightage.
Anyways , every investor will have their own data point.
One of the benefits of index investing is to keep investing very simple, and focus on the rest of one's life. This means not needing to know much about markets and it's valuations, and yet do well enough on one's financial goals. From this point of view, a Nifty 100 is even better than a Nifty 50, as it covers more of the market. The only deterrent is that the expense ratio of Nifty 100 funds are much higher currently. @@whiteroommenace
Index fund is now giving opportunity for short term hence for one or three month if we can park money we can make good return. Since most index funds has 15 days redemption period so it's good for short term. For long term may be we get 12 to 22 percentage return.
Nice to see thalaivar every day after a while
1. Index and etf-
1. Index investing is better than etf coz in etf live market price may be a lot diff from nav
2. If in etf diff b/w live price and nav decreases thru some regulatory intervention point 1 can be challenged
3. Tracking error doesnt hold much imp, at the eod return are to be compared(rolling returns are the best metrics for laid back passive long term investors)
2. Small Cap and Midcap(Active and passive)
1. Rare active small cap fund or active mid cap fund can beat the midcap index
2. Thus mid cap index is better than active small or active mid cap funds
3. Next 50 v/s midcap and small cap
1. Nifty next 50 return is very close to nifty midcap index.
2. Next 50 has more liquidity as compared to small cap 250 or midcap 100
3. Next 50 is matured/seasoned against crisis times standing the test of time
4. Small or mid cap is yet to witness crisises
5. Thus next 50 is a better option than small cap/mid cap
Summary:
Pattu sir advocates high weightage of large cap index with
a little exposure to next 50 if feelimg fomo for long term(all passive)
But investing in Index funds comes with the expense of fund manager fees isn't it ?
Thats for any mutual fund, expense ratio will be there...
I keep coming back to this video just to make sure i am not deviating from my Edelweiss Nifty 50 + Next 50
Been following you from 2018 I think, you helped DIY investors greatly.
No clickbait thumbnails, unpopular opinions, hitting with facts, honest to say that I don't know about the future... Hmm qualifications for an unsung finfluencer... 🎉
Thank you
Thank you professor
Please give some valuable inputs about the nifty large midcap 250 Index. Can this be the only one fund where we can put our money ditching all other actively managed mid small cap funds
I have learnt so much from you over the years and secured my financial life.. can't thank you enough.
Thank you
Same to me also. I never missed his early videos, this videos make me shapes me good investor
Moral of the story: if going passive have at least 65 to 70 percent in Nifty 50 the rest can be in nifty next 50 or a combination of next 50 and midcap 150.
However my personal opinion is to have just one equity fund and that is NSE100. Keeps life simple
Fully agree. Just that the Nifty 100 funds expense ratio is quite high now, compared to a Nifty 50 fund.
Pattu sir,
All your efforts are highly appreciable..
Thank you very much for making such a responsible video..
Please keep rocking..
I would like to have a video how to get detailed history of a certain stocks through pandas (python)
Thank you Sir for the two part series 🙏🏼 Lucid and enlightening. Every time I get FOMO when someone shows me their "Groww" app portfolio and a stock giving 250% return during the last 1 year (they never show the loss making stocks), I will re-watch these videos to stay sane.
Thanks Pattu
Pattu sir, thanks for this clarity. You have helped me build an investment philosophy of my own with conviction and which is mostly 'Keep it simple'!
Thank you so much.
Thank you
Thank you
Hi sir... Is it better to add 50% in Nifty 50, 35% in Next 50 and 15% in midcap 150 index
Following Pattu Sir for more than 5 years now. Always brings me back to safety and avoiding unnecessary things in investing and life.
Great insight, which you will never get anywhere else. Also, I would highly recommend people to read Random Walk down the Wall Street book to know further on this topic. Cheers!
Thanks Pattu sir, always, for sharing knowledge very responsibly to us without bias. You are a great example that people learn and come from scratch will be guiding and leading others.. Thanks again a lot sir. Please continue and share your good self knowledge sir.
Thank you
Sir, please take my question. Should an investor hold cash at any given time, if yes then where should I keep that cash in India and how much percentage of cash an investor should keep at all times? I am asking because warren buffett parks cash in U.S. Treasury bonds all most all the time.
Hi sir, recently started watching your videos . I really like the idea of goal based investing , currently i invest in nifty 50 and largemidcap250 but as you say to seperately invest for each goal does it mean i should start investing in another seperate nifty 50 fund lke a new one for that goal like basically how do i seperate the investing for different goals
Waiting for next part❤
It is over
Can you make a video explaining why retaining a Debt fund longer than its tenure makes more sense (for eg Gilt fund or a Short Term Debt fund). Your insight will be valuable to all who also invest in Debt funds.
Sir,
My age 26,,, removes all mid and small craps from my portfolio.
I don't need money for next 20 years.
Added UTI S&P BSE Low Volatility and Nifty Next 50 in 50:50 ratio....
Is it right way to mix low volatility with high risk?
If yes dn should i do periodically rebalancing between them?
Please help - : I have a folio of 1.5 cr plus. All in Equity. 70% in index funds (Nifty 50 and Next 50). Both funds are from the same fund house, happens to be UTI.
Should I choose a different fund house for my further investment to de-risk the fund house concentration? OR it doesn't matter?
It shouldn't matter but better to diversify
Hi sir .. I'm 17 yr old student i want to invest early .. so i save amount around 5k by some part time jobs .. investing in index fund is not possible in this time for me bez I'm not earn money monthly.. so i going to invest in individual stocks ... Going to create more diversified portfolio .. i option is correct, suggest me any idea to invest
....
Go for index funds instead of stocks
As always GOAT Pattu sir
Can you compare momentum factor investing vs nifty returns
Why people invest more in Nifty 50 funds than S&P BSE Sensex funds.? Is it due to returns or any other reason?
NSE got the edge over BSE when it computerised first and then the trend continued
Hello Sir. Always admirer of your work from last 5 years. Great work. Can you please discuss the portfolio for 35 years age persons perspective. Does Index Investing will work for 35 year old person. 😊
Thank you. perfectly
Hello Pattu sir I have a genuine doubt sir. After listening to you I have decided to sell my different active mutual funds. But Why you have not sold Parag Parikh Flexi Cap fund and invested that amount in Index fund. Why did you kept that active fund for so many years. This is a genuine doubt. Please reply sir
Why should I waste money on tax by selling?
Ok sir Thank you so much for the reply
Hi sir, regarding new content for your channel.. How about doing a series on the financial books you read and your views on that?
I have not read many :)
Where do you get the data for your analysis in all these videos? I also want to do some analysis where can i get it, can you please share the website?
See
freefincal.com/data-sources-for-diy-investing-and-analysis/
@PersonalFinanceCalculators Pattu, I think I have been saying this since 2018 but I need you to act on it and fix this one for me PLEASE! The past tense of "beat" is still "beat" its not "bet" or "bate" (whichever you are saying). And "beaten" is the past participle. So, in the last x years, y has not beat z, but z has beaten y.
I like your comment ❤❤
And I checked since the last time you said it, or perhaps every time. I am not an expert on grammar like you, but the little search I have done tells me some people around the world say it like I do, which is good enough for me.
@@pattufreefincal You don't have to be an expert in grammar like am not one in physics... but if I can learn personal finance from you, why can't you take a little constructive criticism instead of defending an untenable position with some "search"? LOL Not the humble Pattu I spoke with in 2018 anymore, are you?
@@goolqui LOL... the dude got offended; his response is funny 🙂
Bro put Tamil video
Can we also plot PE ratios of this indices and based on that decide if we want to invest in any index (based on undervalue/overvalue)?
Try it. It will only lead to confusion.
Good evening sir, view on Nifty 500 value 50 index sir?
Will be risky. Avoid.
what about equal weighted indexes?
avoid see past articles or videos
Sir, you could have included LM250 index
why? Because it is doing well now? 250 stocks with 50% weight to mid cap has the same reasoning as nifty midcap 150
Combination of LM250+NN50 seems a good strategy. LM250's majority allocation is in Nifty 50 and Nifty Midcap 100 stocks. Very less allocation to NN50.
Sir, i have the below funds after watching your videos for 4 years.
Nifty 50 index fund
nifty next 50 index fund
Midcap 150 index fund
Smallcap 250 index fund
do you want me to remove/add anything?
If u made this portfolio before watching pattu sir video…it was ok..But even after watching his video…Ur portfolio is shit😂
Remove the midcap and small cap index.
Buy a debt mutual fund with that and every year balance your portfolio equity:debt mutual fund in 60:40 ratio every 1 or 2 year.
@@MukeshDevi-gn3ib sure. Let me know the correction
@@praveennair170488 thank you Praveen
@@vinothsmart1 Nifty 50 Alone is sufficient…
Or u can go 70:30 with Nifty 50 & Next 50