Can I use a large and mid cap fund instead of an index fund?

Watch the "Basics of portfolio construction: A guide for beginners"
freefincal.com/basics-of-port...
---------------------------------------------------------------------------------------------
Watch my corporate presentation: freefincal.com/watch-my-talks/
Get six free e-books: goo.gl/KS75MF
Download robo advisory template: goo.gl/6g8z2M
Select from my handpicked mutual funds goo.gl/X32C7p
Free stock analysis tools: goo.gl/vJNx8n
---------------------------------------------------------------------------------------------
Follow me on Twitter: / freefincal
#freefincal

[@Anandarajguru]

Excellent. 90% of the indians or 100% of the middle class people need this one video recommendation with full understanding and conviction.... Then they may start investing in equity MFs and sleep freely. Thank you professor.

[@sujithr6142]

Thank you for this insight. I think the reason why one chooses a diversified active fund is to get a little higher alpha than a pure large cap index since there are no credible passive alternatives in this space like you mentioned.

[@pattufreefincal]

NIfty 200 is essentially large cap and so it is not a good choice from that pov either

[@saivenkatesh7309]

Happy teachers day sir.

[@shravan419]

Do mutual fund redemptions affect the performance of a fund?

[@balasubramanian-dk2my]

1) An active large&midcap fund is more risky than nifty 50 but less risky than nifty next 50
2) Nifty next 50 can be alternative for active midcap but not alternative for active large&midcap
3) if i invest 65% in nifty 50 and 35% in nifty next 50 it solve but periodic rebalancing between nifty 50 and nifty next 50 requires effort
4) So considering an index fund which is more risky than nifty 50 but less risky than nifty next 50 - Can nifty 100 equal weight index be one fund solution to replace active large&midcap funds sir ?

[@shakthis_view]

Nifty 100 equal weight index fund returns is less than nifty 50, next 50 and nifty 100 index fund.. just have a look at sundaram nifty 100 equal weight index fund

[@raspreetsingh7409]

Hi Pattu Sir, I wanted to know that although it shows around 40 to 50% funds over different time periods beating the respective benchmark, the worse case in those 40 to 50% may be changing from time to time. So the same set of funds may not be beating the benchmark. Or, are there any funds from this category which are consistently beating the 3 benchmarks over all periods considered?

[@pattufreefincal]

What will you do with this information?

[@somenathchakraborty2997]

@@pattufreefincalIf the set of funds outperforming the benchmarks remain same then one may consider investing in those funds. Also some of these funds might have small AUMs and are lesser known funds.

[@pattufreefincal]

@@somenathchakraborty2997 That is obvious but the problem is this is based on past information and toppers usually slide in future

[@amargadre9016]

Can we consider Navi midcap index fund?

[@shakthis_view]

Midcap index fund would be having high tracking error and highly volatile. Go with only largecap index funds

[@Mumbaiwestbengal96]

Hi, Please help. Different websites are showing different PE ratios of mutual funds. Where to get the correct data?

[@pattufreefincal]

There is no use of Mf PE ratio.

[@Mumbaiwestbengal96]

@@pattufreefincal I dont agree with you. Thanks

[@prasany]

Dear Pattu sir, does it make sense to benchmark against your own returns expectations, as in. Say XYZ mid cap fund does not beat the mid cap index, but still gives a personally expected/accepted return. Is it an okay approach, if the horizon and risk tolerance is within tolerable limits?

[@pattufreefincal]

I dont follow. Can you explain?

[@prasany]

As in, I'm okay with holding a fund for the long term even though it is not beating the category index in the near term (maybe 2-3 years), as long as it does not bring down my the overall portfolio return to the point that it goes below my overall return expectation. Mean to say I am always not thinking about the category return%, is this thinking okay, or should I always try to maximize within a category? and will that lead to lot of churn and value erosion?@@pattufreefincal

[@karthickmechien]

Sir I have a couple of questions 1. is there a plan with sebi to allow index funds in ELSS category 2. Is it a good time to invest in US index funds such as Nasdaq 100 at this juncture.

[@prabhus3737]

Dear Pattu Sir...
I am planning to do regular investment for my 2 kid (they are 10 years old and 5 years old) - each 2k/month and for 10-15 years, later hand over to them. which type of fund (passive/active) or please suggest any one or two mutual fund where i can start from Oct '22 month

[@pattufreefincal]

Is this for their education or it is wealth you wish to hand over?

[@prabhus3737]

@@pattufreefincal wealth, sir. Education i am planned in ssy for my girl (1st) and ppf for my boy (2nd).. Fixed instrument where i dont want to take any risk

[@pattufreefincal]

@@prabhus3737 You can use a Nifty/Sensex index fund for this. But for education PPF or SSY is not enough. you need equity there too. Not taking risk is the biggest risk

[@human705]

UTI Nifty 50 is the best 😎🇮🇳.

[@quaser15]

True!!

[@mahadevmondal2502]

Sensex fund always provide more returns than nifty ,,please check the past data

[@thangathambi5172]

Until last you didn't told the 9 or 8 or 7 funds names which were beaten the benchmark as per your rolling return test

[@pattufreefincal]

Because that was never my intention! Use our screener and find out for yourself!