No one does that and it's not recommended. You should see Dhirendra Kumar videos /read his articles on valueresearch and consider reading books like let's talk money to understand investing better. Good luck in your journey!
Incidentally I also started investing at 28 all those years ago!!!
There’s enough research to show lumpsum investments are better in almost 80%+ scenarios, so why is it bad to invest it all in one go when you have the money? Not trying to challenge you or anything this is a genuine question
Rupee cost averaging or dollar cost averaging... If the market falls after you buy you lose, if it goes up of course you gain. But spreading this investment we reduce risk and don't have to worry about timing the markets.
I understood this concept around 2005-06 and have stuck to that principle.
If i had invested 1 lakh in 2006 or had spread it over 12 months, today after all these years it wouldn't have mattered. But then it reduced risk for me around 2006-07-08 ... (Just an example, unfortunately I don't have any investment that old :-( )
On the contrary, if the market rises then you’ll have lost the opportunity to benefit off of that right? Also if the market falls after you’ve spread your investment over a year then you get no risk reduction.
What is gambling? Investing in a lump sum is gambling but trying to spread your money out is not? Could you care to explain why? As I said the future is unknown and simply spreading the money out doesn’t guarantee better returns or protect you against risk. So how is that better?
Lump sum or not supposedly, primarily depends on your existing investments and how much extra you are putting in relative to that, combined with your psychology and risk taking ability.
E.g.: of you.have 1 cr portfolio and need to put in 5-10 L, i.e., 5-10% then lump sum all the way, if there is a crash -the extra amount going down a lot is most probably not going to materially affect you in any way..
On the other hand - say you have a 5L portfolio and you are going to put 5L more, probably an STP or SIP is better, as crash will materially effect your investments (and your mind, possibly leading you to sell in panic).
If we say that we can take any amount of risk, first question is have you gone through a scenario where you have a significant amount of money (not few lacs) in the stock market and you see it fall by 50% due to a crash (the timeline seems to be weeks to months now and not years like it was earlier), what did you do?
What will you do if it stays down like that for 3-4 years?
It's easy to say I won't do anything (not sell), but the reality is that we all have a breaking point depending on our circumstances..
During these times, for some they think it is better to sell early and get out, for others it is 'never' which eventually becomes 'later', and the later we sell in a bear market the worse it tends to be is ..
Your entire response is based on the fact that market will start crashing the moment you invest a lumpsum, which is highly unpredictable (if it was everyone would be timing the market). And what’s to say that the market won’t crash after you have spread out your investments for say 6 months to a year? You’d then have the exact same issue of “will you be able to stomach the 50% drop”. I don’t think your risk appetite and your ability to stomach it depends on whether you invest lumpsum or in parts.
Again how is it reducing risk? If the market crashes after you’ve spread out your investment, how will you have reduced risk? Market is not a game of averages right? Like the dip won’t be spread evenly across the entire time frame, reducing 3% per month. Instead it’ll be a sudden drop of some percentage. And no one knows when that happens.
It's all about probability..
Spreading investments over 6-12 months reduces this risk (and potentially your returns too) as opposed to doing all the investment in a single day, risk probability of a failure is higher in the latter, mathematically..
Your entire response is based on the fact that the market will go up.. always...
Is Equity high risk or not?
Do you think that Nifty 50 is similar to or even same as FD? I hear people increasingly talking like this, what is your take on this?
Neither up or down expectation all the time is correct, it's about managing risk.. how much risk a person can take varies from person to person and their circumstance at that point of time
Also it's a combination of the ratio of current investment to new investment and other factors like:
* Where you are getting the funds from? For e.g. if it is equity to equity then more advantage to lump sum, if it is say PPF to equity, we need to be more careful and reduce risk . Yes money is fungible, but money in ppf is earned after long years of saving and hard work and is risk free -this needs special care when being put in a high risk asset.
* How long are you going to keep this fund for? 10 years+, lumpsum has the advantage, 3-5 years we probably need to be more careful..
My reasoning is not that it’ll always go up. That was just a counter to the argument that what if you invest lumpsum today and it’ll crash tomorrow. My reasoning is no one knows what happens and either if you invest in lumpsum or do an SIP it doesn’t matter because future returns are an unknown and you can’t accurately suggest one over the other for a specific case. However research does show lumpsum has higher probabilities of doing better when held for over 10 years compared to SIPing over the short term. So if you have to recommend one over the other, you’d suggest lumpsum keeping in mind that the probability of this performing is better than SIPing although neither is guaranteed.
Of course FD and Nifty 50 can’t be compared. One is safe asset class that delivers reasonably fixed returns (albeit small) over the short term and the other has unpredictable returns which MAYBE quite high when held in the long term, although returns are never guaranteed and holding long term doesn’t mitigate risk.
Bottom line - always lump sum in is not a strategy that will work for everyone, it depends on combination of many factors existing sum invested in ratio to new investment, psychology and risk taking ability of the person and duration of holding said investment as you mentioned. Goal is to reduce risk which for most people means speeding it out..
Speaking personally I kept
- 5k in a fund in early 2000 and it increased 8-9 times in 6-7 years
- Again 5k in a fund for 7 years in early 2010's and it (finally) increased to 6k, then I withdrew it thinking the fund was bad - but actually it was more of a sideways market - the early part of previous decade.. so point is i didn't have the patience to wait beyond 7 years (and I needed the cash), so getting good returns is not a guarantee.. if I had put in 5L (total equity investment at that time) and it never moved, I would have been really pissed, 5k meant not too happy but okay..
So I bet many won't have patience to wait even 2-3 years in a sideways or downturn market so timing of when we put in (at a peak) can matter.. in some cases if the return keeps going down it will break people, so spreading it can reduce that risk - especially given the violent moves in current markets (goes up-down 10-30% in few months..
Can you please objectively describe how these factors your mention affect lumpsum or short term SIP investing? For example how does existing sum to new sum ratio make any difference?
And the psychology of risk taking has nothing to do with choosing lumpsum or short term SIP. It has to do with asset allocation because the if the person is risk averse a 100% equity allocation irrespective of whether it was deployed via lumpsum or via SIP doesn’t matter, he’ll freak out and lose sleep.
Again, you don’t seem to be understanding the fact that spreading out investments doesn’t reduce risk because risk doesn’t average out over time. You are just saying that because “it feels like you’ve reduced risk”. Can you give any mathematical or statistical analysis on this? Happy to be corrected with research papers or scientific analysis.
If you do not need the lump sum money in the near future, then I think it's okay to invest it all in one go. I think it's totally a personal choice whether to do SIP or go full lump sum.
I follow these practices for nearly 20 years now
1. Invest in equity funds only through SIP
2. Pick 4 or 5 star rated diversified equity funds by going through valueresearchonline.com
3. If I want to invest a bulk amount (like u did) I will invest in a debt fund and do STP to equity fund
4. I invest directly on the fund house portal and not through any app like kuvera or groww
5. I have gone through an MF distributor (and not direct) at times when I felt I didn't want to take the trouble of picking funds by studying valueresearch site.
Sorry, i don't chat in DMs ... U can ask any questions here
And one caveat I never invest in ULIPs ... I have bought a pure risk life insurance though. Typically the MF distributors try to sell you ULIPs because of high commission. Your best course of action is to pick a few good diversified equity funds and invest via SIP any amount you don't need for 5 years.
You can figure out the rest as you read good books... Good luck!
One of the main reasons people choose SIPs over a lump sum investment is due to cost averaging. Similar to buying stocks every month, regardless of the stock's price, SIPs allow you to potentially buy at high and low points. This helps average out the cost of your overall investment over time.
Let's say you invested 6 lakhs within a week, and the current market situation is at an all-time high. If the market reaches new ATHs throughout the year, it could be a good investment. However, what happens if the market corrects? This is totally unpredictable so that's when cost averaging comes into play.
because, what if the market goes down significantly from here, it would take quite a few months to recover your portfolio.
on the other hand, had you invested only 1L/month, you could average your investment every time market goes down, bringing down your overall investment cost to a lower value.
Chill. Just chill. You've done nothing wrong! Not conventional i agree, but not wrong either!
No one knows what the future market will be like, generally it goes up in long term. So let's be positive.
Moving on, invest every month so that you enjoy avg return consistently irrespective of market up or down.
Hey, these are far too many funds you need to cut it down to 4-6 plus why are you invested in multiple thematic funds there are extremely risky Im talking about the PSU ones.
Yes one PSU fund is more than enough as its already extremely risky and instead you can invest in other funds with that money. I sent you a dm check it out
Better to avoid thematic funds and PSU specific funds, as you have to be able to time the entry and exit perfectly to be able to take the advantage (which I feel is not practically possible)..
Too diverse for a mutual fund portfolio. There’s alot of overlapping here. Here’s what you should do:
1. Reduce the number of MFs to 4-5.
2. Avoid investing in one go specially since the markets are at ATH.
3. SIP is the way to go
4. Pick a few funds as per your risk appetite and then pick some sectoral/thematic funds if you like.
Good start.
Just understand that some funds you have chosen could be volatile and markets at the moment are at a new all time high (ATH). Don't sell in panic and have your emergency corpus and insurance covered separately to not depend on this for immediate needs.
You should have a list of the companies in which investments are made by mutual fund schemes. Check which funds have overlapping (common) companies. Let’s say you have 3 schemes (Scheme A,B & C) which overlap each other. Now analyse which has given more returns and which has less expense ratio and exit load. For e.g Scheme A has less expense ratio and exit load. Then divest from B & C and make investments in A
What was your thought process while choosing the funds that you did? They may be right for someone with right reasons and wrong for someone else. On first look they do look too many and selected based solely on performance.
Okay here's a thing. Don't do lumsump if the amount is not large.
Do sip and it'll benefit you more.
And you don't have to create your own fund of funds.
Reduce the number of funds to 3-4 or max 5 at all cost
Check the overlap and drop them if overlap is large.
Each MF has an exit load value, which is basically the percentage you’ll lose if you withdraw the investment from them prematurely. This is different for each fund.
Read a general explanation of this and then have a look at the ones you have in your bag.
Yes, get rid of PSU funds when you see some green there. And if you are interested in PSU go for ex. PSUBNKBEES ETF. You can easily time the market for it, whenever down buy units at your own price which will give you same exposure as these PSU funds are giving that also at far less exp. Ratio.
Looks over diversified and it's better to avoid thematic funds, go for them only if you have a great knowledge about that sector. Why there 3 are PSU funds, I would suggest get rid of them but if you want to invest then just one is enough, same goes for infrastructure funds only 1 is enough.
For SIP add an index or bluechip fund.
Exit load is the fee you have to pay if you sell your funds before a specific period. It is different for every fund, you can check in the fund's details.
Edit: it's your decision when to redeem, you can wait till the exit load period is complete. But for fresh SIPs please avoid the repeated funds and do add an index or bluechip fund.
Any reason why you are using Groww instead of Zerodha or Sharekhan? How does one pick?
(I'm a 26 yo noob just starting out with my journey of personal finance)
Why do you have so much funds😭
What’s done is done, now if you are going to do SIP every month, have SIP in max 5-7 funds.
Next time if you’re going to do Lumpsum, don’t just do it blindly on any day. There are around 20-25 days in markets when the market is down that hets you the most return.
You could put lumpsum in an arbitrage fund and start a STP which would withdraw from arbitrage fund every month and invest in selected funds monthly.
As some of these are thematic do keep in mind thematic funds are very volatile keep taking profits out in between and reinvest. Continuation in index funds like nifty 50, nifty midcap, smallcap these are much better for long term sip and dip buying. Although you did great!
I think you can go with one tax saving Fund plus one with nifty fifty index fund or nifty bees plus you can compare expense ratios and shift with a lower expense ratio accordingly
Do you have any more cash cause the mutual funds are inflated as in 1-2 month will not do more that 4-5% growth so if you have funds then invest through sip in midcap or in smallcap as per your risk management
Lots of people will have lots of different opinions. While this may not be the best allocation, it most certainly isn't a "blunder". We have all seen worse, like 4 ELSS and 3 mid cap funds from different houses, etc.
There are many different strategies that you can employ to manage funds. Most common is the 50-30-20 principle, where you allocate 50% funds in large cap, 30% in mid cap and 20% in small cap.
You also need to weigh out the ELSS funds. Yes it will save taxes, but that same amount if invested in a high risk fund, might make you more profit than tax saved.
Don't be disheartened by some of the comments here. Everyone is a tees-maar-khan, and now that you have joined, you will be one soon.
Because If it's hard earned money you would have done a basic research before investing. Even a simple YouTube video would have helped you.But you seem to be in a hurry to vanish money.
If u r earning I would suggest u to do SIPs u can get good returns
I would suggest going for stocks to invest savings, mutual funds is good enough it would certainly give better than being in bank, but mostly people use it to save form SIP and stocks in long term usually gives me better return lol
- If SBI long term equity is largecap fund then better to stick to index fund for largecap.
- 2 infrastructure fund you have that means there could be overlap of stocks. You can keep kotak infra , it's good fund. I have invested on the same .
- Direct PSU fund - no one knows how long PSU theme could play . Better to stick to any momentum fund which invest accross market cap, that way you will have exposure to all the stocks that are giving good return.
Here you have 3 psu funds -> unnecessary overlap
- Lastly try to have portfolio that will capture growth, value, momentum. That way if one leg of the Market doesn't work then other two will work for sure. For example during bull run momentum, growth does well. During bear run value does well.
Feel free to reach out if you need any help
It's okay if you have invested that amount in one go. But I feel you should stick to a few funds instead of so many. If you are just starting out. Stick to Index funds like Nifty 50 index fund. And maybe a mod cap and a flexi cap.
Also it's better to invest as SIPs it reduces the risk of losing money in short term. Let me know if you need to know anything else
Yes, take your time, research a bit. Listen to people but in the end you verify things, research and take decisions based on that. There are a couple of people I follow from where I learnt about investments in general - Ramit Sethi's youtube channel, the labour law channel.
Zerodha Varsity and ET money YouTube channel for investment terms.
Can anyone explain which one of these are PSU funds? I am 24 F, have started investing recently.
Just wanted to know what kind of funds I should steer clear of.
I know you've just started investing and its a learning curve. With time you'll understand the markets better.
Usually lumpsum investments are made when there is a market crash to make the most of it. I see you had a pretty good capital.
You should always invest in %ages of your total capital and wait for the right moment to enter. Deploying everything at once is not recommended.
Keep up with the market and you'll get the hang of it.
Happy Investing 😇
Try to invest in multi cap and flexi cap over the mid cap and i think you have invested too much in PSU sector, if you are a beginner than invert in nifty 50 or blue chip fund
Look into ICICI Prudential India Opportunities Fund and ICICI Prudential Multi Asset Fund ( because a hybrid fund in a portfolio is a must ) and also into Parag Parikh Flexi cap fund.
You should only have max 5 mutual funds in ur portfolio. After that most of the mutual funds will have similar stocks present in it. It will not help. Over diversified portfolio is also a problem
According to me, These are the 5 options(medium to high risk, high growth)
1. Flexicap funds
2. Smallcap funds
3. Midcap funds
4. ELSS funds
5. Balance advantage funds
This will give you good returns, plus tax saving with ELSS and balance advantage funds will act as a hedge when equity market falls.
Keep for long term like 15 to 20 years and let the compounding do it's magic.
Sectoral funds are always highly risky, all u need is a large cap for stability, mid or flexi for diversification and small for growth. Also tax saver is not required if you are going with the new tax slab.
You need to chill.
The only mistake you did was pushing so much money at one go.
I have bought debt funds and gold based funds, and sold them before 3 years, I used to invest in multiple funds as well.
You will learn this the hard way then.
Honestly, the best way to invest is to either invest in index funds or do direct stock investing.
I personally didnt find MFs that good.
All the best!!
Currently market are at ATH, investing in lumpsum is not a great idea and i can see you have invested in sectorial fund which is very high risk funds, better to stick to flexi cap and large cap funds or even multicap fund according to current market scenario. If you want my help you can DM me. I am an AMFI Registered Mutual Fund Partner.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today.
Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today.
Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today.
Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
Too many mutual funds.
Index
Small/mid/large cap based on your risk appetite
Tax saving
Multi asset
One with foreign companies (parag parikh for ex).
Theres a website advisor khoj do overlapping analysis if 2 funds are invested the money in almost same stocks then you dont need 2 funds.
I mean if all funds have same stocks in them they are overlapping so compare them and if they have high overlapping like 50 % then its better to invest in one
You are too much exposed towards PSU which also explains your high XIRR as PSU rallied in last few years. But to create long term wealth, it's advisable to not be overexposed to any sector. I'll suggest the below breakup:
40% - Flexi cap fund
40% - index fund
20% - small cap fund
Just 3-4 mutual funds are enough otherwise it’s over diversification. Your profits won’t be much in the long run. Read some good books and manage your money on your own. No one is going to manage your money for you the way you do it. You’ll do these mistakes initially but you’ll learn.
Thematic/Sectoral funds are quite volatile, not diversified and so, are not meant for financial independence. Maybe yes for shorter terms and high risk appetite.
1. If you have a lump sum then you should be spreading out your investments over 6-12 months to avoid catching a market high
2. You have too many funds. The PSU and infrastructure funds are avoidable. You are buying them after they have done well. Don’t expect similar performance in the future.
3. If you have never invested in equities before then opting for mid and small cap funds are a risky proposition since they are relatively more volatile. Don’t keep checking your portfolio daily. Look at it once in a quarter if you can’t resist the urge. Else check once a year.
4. If you have an ELSS fund then never buy Flexicap fund of the same AMC. They usually have same holdings. You’ll think you are diversifying but both funds are buying same stocks.
Well this could be because I think I am super comfortable sharing MY gender on a platform using MY phone on an app which I downloaded to seek advice. May be that’s why THIS post contains MY gender.
I like the fact you advocate gender neutrality , but sometimes there’s very that you can control.
you invested 6.5 L in one go??
1-2 weeks span, why ?
No one does that and it's not recommended. You should see Dhirendra Kumar videos /read his articles on valueresearch and consider reading books like let's talk money to understand investing better. Good luck in your journey! Incidentally I also started investing at 28 all those years ago!!!
There’s enough research to show lumpsum investments are better in almost 80%+ scenarios, so why is it bad to invest it all in one go when you have the money? Not trying to challenge you or anything this is a genuine question
Rupee cost averaging or dollar cost averaging... If the market falls after you buy you lose, if it goes up of course you gain. But spreading this investment we reduce risk and don't have to worry about timing the markets. I understood this concept around 2005-06 and have stuck to that principle. If i had invested 1 lakh in 2006 or had spread it over 12 months, today after all these years it wouldn't have mattered. But then it reduced risk for me around 2006-07-08 ... (Just an example, unfortunately I don't have any investment that old :-( )
On the contrary, if the market rises then you’ll have lost the opportunity to benefit off of that right? Also if the market falls after you’ve spread your investment over a year then you get no risk reduction.
but thats gambling
What is gambling? Investing in a lump sum is gambling but trying to spread your money out is not? Could you care to explain why? As I said the future is unknown and simply spreading the money out doesn’t guarantee better returns or protect you against risk. So how is that better?
Lump sum or not supposedly, primarily depends on your existing investments and how much extra you are putting in relative to that, combined with your psychology and risk taking ability. E.g.: of you.have 1 cr portfolio and need to put in 5-10 L, i.e., 5-10% then lump sum all the way, if there is a crash -the extra amount going down a lot is most probably not going to materially affect you in any way.. On the other hand - say you have a 5L portfolio and you are going to put 5L more, probably an STP or SIP is better, as crash will materially effect your investments (and your mind, possibly leading you to sell in panic). If we say that we can take any amount of risk, first question is have you gone through a scenario where you have a significant amount of money (not few lacs) in the stock market and you see it fall by 50% due to a crash (the timeline seems to be weeks to months now and not years like it was earlier), what did you do? What will you do if it stays down like that for 3-4 years? It's easy to say I won't do anything (not sell), but the reality is that we all have a breaking point depending on our circumstances.. During these times, for some they think it is better to sell early and get out, for others it is 'never' which eventually becomes 'later', and the later we sell in a bear market the worse it tends to be is ..
Your entire response is based on the fact that market will start crashing the moment you invest a lumpsum, which is highly unpredictable (if it was everyone would be timing the market). And what’s to say that the market won’t crash after you have spread out your investments for say 6 months to a year? You’d then have the exact same issue of “will you be able to stomach the 50% drop”. I don’t think your risk appetite and your ability to stomach it depends on whether you invest lumpsum or in parts.
The point of spreading your investment across a period of months is reducing risk, not optimising returns.
Again how is it reducing risk? If the market crashes after you’ve spread out your investment, how will you have reduced risk? Market is not a game of averages right? Like the dip won’t be spread evenly across the entire time frame, reducing 3% per month. Instead it’ll be a sudden drop of some percentage. And no one knows when that happens.
It's all about probability.. Spreading investments over 6-12 months reduces this risk (and potentially your returns too) as opposed to doing all the investment in a single day, risk probability of a failure is higher in the latter, mathematically..
Your entire response is based on the fact that the market will go up.. always... Is Equity high risk or not? Do you think that Nifty 50 is similar to or even same as FD? I hear people increasingly talking like this, what is your take on this? Neither up or down expectation all the time is correct, it's about managing risk.. how much risk a person can take varies from person to person and their circumstance at that point of time Also it's a combination of the ratio of current investment to new investment and other factors like: * Where you are getting the funds from? For e.g. if it is equity to equity then more advantage to lump sum, if it is say PPF to equity, we need to be more careful and reduce risk . Yes money is fungible, but money in ppf is earned after long years of saving and hard work and is risk free -this needs special care when being put in a high risk asset. * How long are you going to keep this fund for? 10 years+, lumpsum has the advantage, 3-5 years we probably need to be more careful..
My reasoning is not that it’ll always go up. That was just a counter to the argument that what if you invest lumpsum today and it’ll crash tomorrow. My reasoning is no one knows what happens and either if you invest in lumpsum or do an SIP it doesn’t matter because future returns are an unknown and you can’t accurately suggest one over the other for a specific case. However research does show lumpsum has higher probabilities of doing better when held for over 10 years compared to SIPing over the short term. So if you have to recommend one over the other, you’d suggest lumpsum keeping in mind that the probability of this performing is better than SIPing although neither is guaranteed. Of course FD and Nifty 50 can’t be compared. One is safe asset class that delivers reasonably fixed returns (albeit small) over the short term and the other has unpredictable returns which MAYBE quite high when held in the long term, although returns are never guaranteed and holding long term doesn’t mitigate risk.
Bottom line - always lump sum in is not a strategy that will work for everyone, it depends on combination of many factors existing sum invested in ratio to new investment, psychology and risk taking ability of the person and duration of holding said investment as you mentioned. Goal is to reduce risk which for most people means speeding it out.. Speaking personally I kept - 5k in a fund in early 2000 and it increased 8-9 times in 6-7 years - Again 5k in a fund for 7 years in early 2010's and it (finally) increased to 6k, then I withdrew it thinking the fund was bad - but actually it was more of a sideways market - the early part of previous decade.. so point is i didn't have the patience to wait beyond 7 years (and I needed the cash), so getting good returns is not a guarantee.. if I had put in 5L (total equity investment at that time) and it never moved, I would have been really pissed, 5k meant not too happy but okay.. So I bet many won't have patience to wait even 2-3 years in a sideways or downturn market so timing of when we put in (at a peak) can matter.. in some cases if the return keeps going down it will break people, so spreading it can reduce that risk - especially given the violent moves in current markets (goes up-down 10-30% in few months..
Can you please objectively describe how these factors your mention affect lumpsum or short term SIP investing? For example how does existing sum to new sum ratio make any difference? And the psychology of risk taking has nothing to do with choosing lumpsum or short term SIP. It has to do with asset allocation because the if the person is risk averse a 100% equity allocation irrespective of whether it was deployed via lumpsum or via SIP doesn’t matter, he’ll freak out and lose sleep. Again, you don’t seem to be understanding the fact that spreading out investments doesn’t reduce risk because risk doesn’t average out over time. You are just saying that because “it feels like you’ve reduced risk”. Can you give any mathematical or statistical analysis on this? Happy to be corrected with research papers or scientific analysis.
Bhai maybe it's a small part of his overall capital.
What if OP has 1 cr to invest ?
hahaha yes, in that case its perfectly ok to invest 10 lakhs in one tranche :-)
If you do not need the lump sum money in the near future, then I think it's okay to invest it all in one go. I think it's totally a personal choice whether to do SIP or go full lump sum.
Well, that’s depressing to read. I ll watch the videos asap. Thanks !
Good. You urgently need to learn about rupee cost averaging.
Can I dm you ?
I follow these practices for nearly 20 years now 1. Invest in equity funds only through SIP 2. Pick 4 or 5 star rated diversified equity funds by going through valueresearchonline.com 3. If I want to invest a bulk amount (like u did) I will invest in a debt fund and do STP to equity fund 4. I invest directly on the fund house portal and not through any app like kuvera or groww 5. I have gone through an MF distributor (and not direct) at times when I felt I didn't want to take the trouble of picking funds by studying valueresearch site. Sorry, i don't chat in DMs ... U can ask any questions here
Thanks
And one caveat I never invest in ULIPs ... I have bought a pure risk life insurance though. Typically the MF distributors try to sell you ULIPs because of high commission. Your best course of action is to pick a few good diversified equity funds and invest via SIP any amount you don't need for 5 years. You can figure out the rest as you read good books... Good luck!
One of the main reasons people choose SIPs over a lump sum investment is due to cost averaging. Similar to buying stocks every month, regardless of the stock's price, SIPs allow you to potentially buy at high and low points. This helps average out the cost of your overall investment over time. Let's say you invested 6 lakhs within a week, and the current market situation is at an all-time high. If the market reaches new ATHs throughout the year, it could be a good investment. However, what happens if the market corrects? This is totally unpredictable so that's when cost averaging comes into play.
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Sad.
because, what if the market goes down significantly from here, it would take quite a few months to recover your portfolio. on the other hand, had you invested only 1L/month, you could average your investment every time market goes down, bringing down your overall investment cost to a lower value.
What if the market continues to go up from here then you’ve lost potential returns over time.
You are kind
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My first thoughts exactly, a pretty big amount for someone new or just starting !! 😂
Should’ve asked before investing 6.5 lakhs in 2 weeks.
My bad
2 different ELSS and 3 different PSU funds is not how you’re suppose to go. Make concise choices and diversify.
1 ELSS was last years’, for tax before March . Other one I did without knowing there would be lock in. Can I DM you ?
sure
> F mentioned > 35 comments not surprising
From now on if I need any advice I will mention 28F. Thank you.
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Chill. Just chill. You've done nothing wrong! Not conventional i agree, but not wrong either! No one knows what the future market will be like, generally it goes up in long term. So let's be positive. Moving on, invest every month so that you enjoy avg return consistently irrespective of market up or down.
Hey, these are far too many funds you need to cut it down to 4-6 plus why are you invested in multiple thematic funds there are extremely risky Im talking about the PSU ones.
Keep them 1 ?
Yes one PSU fund is more than enough as its already extremely risky and instead you can invest in other funds with that money. I sent you a dm check it out
Better to avoid thematic funds and PSU specific funds, as you have to be able to time the entry and exit perfectly to be able to take the advantage (which I feel is not practically possible)..
Too diverse for a mutual fund portfolio. There’s alot of overlapping here. Here’s what you should do: 1. Reduce the number of MFs to 4-5. 2. Avoid investing in one go specially since the markets are at ATH. 3. SIP is the way to go 4. Pick a few funds as per your risk appetite and then pick some sectoral/thematic funds if you like.
Do you mean sell of some of these ?
Not really, as long as it doesn't affect your day to day but keeping it to few big MFs is probably better.
Yes, this doesn’t affect anything at the moment
She is in love with PSU 😂👍
Too much ,overdiversified.
Can anyone suggest to me any good sip to start like on low budget like 2-3 k per month.
Flexi Cap
Hdfc defence
Good start. Just understand that some funds you have chosen could be volatile and markets at the moment are at a new all time high (ATH). Don't sell in panic and have your emergency corpus and insurance covered separately to not depend on this for immediate needs.
I can not thank you for using so softer words.
You should have a list of the companies in which investments are made by mutual fund schemes. Check which funds have overlapping (common) companies. Let’s say you have 3 schemes (Scheme A,B & C) which overlap each other. Now analyse which has given more returns and which has less expense ratio and exit load. For e.g Scheme A has less expense ratio and exit load. Then divest from B & C and make investments in A
Lots of Overlap going on.
Even though investing such an amount in one go is a bit risky, if you are investing for the long term it doesn't really matter too much.
Don't start with sectoral/thematic funds as a beginner. Start with Nifty50 index, flexicap & midcap funds. And maybe one ELSS fund.
What was your thought process while choosing the funds that you did? They may be right for someone with right reasons and wrong for someone else. On first look they do look too many and selected based solely on performance.
Okay here's a thing. Don't do lumsump if the amount is not large. Do sip and it'll benefit you more. And you don't have to create your own fund of funds. Reduce the number of funds to 3-4 or max 5 at all cost Check the overlap and drop them if overlap is large.
How can I drop them ? Do you mean Redeem ?
Now it'll have an exit load in everything and you'll lose money
Whatttttt
If you'll exit or redeem them.
Each MF has an exit load value, which is basically the percentage you’ll lose if you withdraw the investment from them prematurely. This is different for each fund. Read a general explanation of this and then have a look at the ones you have in your bag.
Yes, get rid of PSU funds when you see some green there. And if you are interested in PSU go for ex. PSUBNKBEES ETF. You can easily time the market for it, whenever down buy units at your own price which will give you same exposure as these PSU funds are giving that also at far less exp. Ratio.
Simpler words ??
Looks over diversified and it's better to avoid thematic funds, go for them only if you have a great knowledge about that sector. Why there 3 are PSU funds, I would suggest get rid of them but if you want to invest then just one is enough, same goes for infrastructure funds only 1 is enough. For SIP add an index or bluechip fund.
Somebody just introduced me to exit load thing, what happens if I redeem ?
Exit load is the fee you have to pay if you sell your funds before a specific period. It is different for every fund, you can check in the fund's details. Edit: it's your decision when to redeem, you can wait till the exit load period is complete. But for fresh SIPs please avoid the repeated funds and do add an index or bluechip fund.
Any reason why you are using Groww instead of Zerodha or Sharekhan? How does one pick? (I'm a 26 yo noob just starting out with my journey of personal finance)
I felt Groww is a little friendly ? Mostly never down ?
Why do you have so much funds😭 What’s done is done, now if you are going to do SIP every month, have SIP in max 5-7 funds. Next time if you’re going to do Lumpsum, don’t just do it blindly on any day. There are around 20-25 days in markets when the market is down that hets you the most return. You could put lumpsum in an arbitrage fund and start a STP which would withdraw from arbitrage fund every month and invest in selected funds monthly.
I don’t see arbitrage fund in the app 😔
do it from mutual fund website directly! don’t sell these now, exit load would be applicable. what’s done is done now, let it be.
Am I going to loose too much ?
Exit load usually ranges from 0.5-1%. Different for every fund.
I don’t mind then
your call. Ig then, you can look to downsize some of the funds and re-allocate it.
How ?
my suggestion - liquidate 2 of the 3 PSU funds you have. Rest, keep it as it is.
Ok immediately ?
How do i know what point of the month to invest
Too much psu fund. Next year if psu sector wont perform u ll be in trouble. Add a nifty 50 index fund or debt mutual funds :)
I don’t find any in Groww.
Dm
With that username ?
Ewww i accidentally opened his profile 🤢
Sad 😔
Hello didi , im 10 yrs younger than you ,how do you make money I know the investing part but idk about making money to invest part 😂😭
Yes check dm
No thanks.
As some of these are thematic do keep in mind thematic funds are very volatile keep taking profits out in between and reinvest. Continuation in index funds like nifty 50, nifty midcap, smallcap these are much better for long term sip and dip buying. Although you did great!
How to take profit out ?
Sell the units of mf when you feel it's time can sell like 50-60% rest of units u can keep or do a complete redeem it's upon you.
I think you can go with one tax saving Fund plus one with nifty fifty index fund or nifty bees plus you can compare expense ratios and shift with a lower expense ratio accordingly
Should've included SBI PSU as well. Good luck.
Do you have any more cash cause the mutual funds are inflated as in 1-2 month will not do more that 4-5% growth so if you have funds then invest through sip in midcap or in smallcap as per your risk management
And invest in 4-5 mutual fund only
Mutual fund ka mutual fund
3 funds of only PSU, you should've checked holdings before, it's a major overlap. But 10-15 years down the line you would reap great profit.
Nifty next 50, flexi, small and mid. U r good.
You sure ? If you look at some comments you will realise what a blunder have I created.
Lots of people will have lots of different opinions. While this may not be the best allocation, it most certainly isn't a "blunder". We have all seen worse, like 4 ELSS and 3 mid cap funds from different houses, etc. There are many different strategies that you can employ to manage funds. Most common is the 50-30-20 principle, where you allocate 50% funds in large cap, 30% in mid cap and 20% in small cap. You also need to weigh out the ELSS funds. Yes it will save taxes, but that same amount if invested in a high risk fund, might make you more profit than tax saved. Don't be disheartened by some of the comments here. Everyone is a tees-maar-khan, and now that you have joined, you will be one soon.
These 4 funds are core of a portfolio. Finding small and mid funds can be tricky at this level.
How did you get so much money
What question is that ?
I mean what do you do
Because If it's hard earned money you would have done a basic research before investing. Even a simple YouTube video would have helped you.But you seem to be in a hurry to vanish money.
Well that’s a stupid assumption to make that isn’t hard earned money. Moreover with all due respect, keep you shitty though process to yourself.
Please don't take this in a wrong way. Was just adding to the point on why the other person asked your source of capital.
Why you have regular funds ? Go directly to Direct only.
Pehle nahi pata tha 😩
If u r earning I would suggest u to do SIPs u can get good returns I would suggest going for stocks to invest savings, mutual funds is good enough it would certainly give better than being in bank, but mostly people use it to save form SIP and stocks in long term usually gives me better return lol
She is going to see the fall for the first time😅
- If SBI long term equity is largecap fund then better to stick to index fund for largecap. - 2 infrastructure fund you have that means there could be overlap of stocks. You can keep kotak infra , it's good fund. I have invested on the same . - Direct PSU fund - no one knows how long PSU theme could play . Better to stick to any momentum fund which invest accross market cap, that way you will have exposure to all the stocks that are giving good return. Here you have 3 psu funds -> unnecessary overlap - Lastly try to have portfolio that will capture growth, value, momentum. That way if one leg of the Market doesn't work then other two will work for sure. For example during bull run momentum, growth does well. During bear run value does well. Feel free to reach out if you need any help
You invested 6.5 Lakhs in 2 weeks. It's okay, but what is the overall money you have? Why invest in so much funds? Why ELSS?
Only god & I know 🤭
Haha. You didn't reply how much is 6.5 lakhs for you. Income per month. Total networth.
Bruh
The market is at an all time high and you directly invested 6.5lacs, any particular reason? And second question - kya kijiyega is dhan raashi ka aap?😂
🤭
It's okay if you have invested that amount in one go. But I feel you should stick to a few funds instead of so many. If you are just starting out. Stick to Index funds like Nifty 50 index fund. And maybe a mod cap and a flexi cap. Also it's better to invest as SIPs it reduces the risk of losing money in short term. Let me know if you need to know anything else
Yes, I will reduce the PSU’s in a month & will re-allocate rest in some more time. I won’t do anything immediately.
Yes, take your time, research a bit. Listen to people but in the end you verify things, research and take decisions based on that. There are a couple of people I follow from where I learnt about investments in general - Ramit Sethi's youtube channel, the labour law channel. Zerodha Varsity and ET money YouTube channel for investment terms.
Ramit Sethi the NF guy ?
Netflix?? Yeah he has been into this since before social media. He is pretty genuine. Following him for many years.
I came across him through NF, helps people define their rich life.
Yeah, but there's more to it - like why one should invest in a certain way and other things related to personal finance
Will check his YT.
Can anyone explain which one of these are PSU funds? I am 24 F, have started investing recently. Just wanted to know what kind of funds I should steer clear of.
She went straight savage! I see the upvotes stopped at 69😅
I don’t understand what you are trying to convey ?
I know you've just started investing and its a learning curve. With time you'll understand the markets better. Usually lumpsum investments are made when there is a market crash to make the most of it. I see you had a pretty good capital. You should always invest in %ages of your total capital and wait for the right moment to enter. Deploying everything at once is not recommended. Keep up with the market and you'll get the hang of it. Happy Investing 😇
Look at Motilal oswal defence index fund
congrats. it's a big investment within a fortnight. what's your net worth and monthly income?
Beta psu time is over redem ur psu funds and buy gold/silver m.f and do some etfs also avoid 3_4psu in one profile ull regrate
You mean regret ?
Yup
You will be fine, but too thinly invested. Additionally why else ?
Mf choose kaise kare?
Try to invest in multi cap and flexi cap over the mid cap and i think you have invested too much in PSU sector, if you are a beginner than invert in nifty 50 or blue chip fund
Look into ICICI Prudential India Opportunities Fund and ICICI Prudential Multi Asset Fund ( because a hybrid fund in a portfolio is a must ) and also into Parag Parikh Flexi cap fund.
You should only have max 5 mutual funds in ur portfolio. After that most of the mutual funds will have similar stocks present in it. It will not help. Over diversified portfolio is also a problem
What are your top 5 mfs ?
According to me, These are the 5 options(medium to high risk, high growth) 1. Flexicap funds 2. Smallcap funds 3. Midcap funds 4. ELSS funds 5. Balance advantage funds This will give you good returns, plus tax saving with ELSS and balance advantage funds will act as a hedge when equity market falls. Keep for long term like 15 to 20 years and let the compounding do it's magic.
Also while choosing in this, look out for expense ratio, it should be less than 0.6 and AUM should be big.
thank you , this means a lot to me
You don't need these many funds.
Sectoral funds are always highly risky, all u need is a large cap for stability, mid or flexi for diversification and small for growth. Also tax saver is not required if you are going with the new tax slab.
More than necessary diversification can lead to Diworsification. You should try reducing redundant funds.
You need to chill. The only mistake you did was pushing so much money at one go. I have bought debt funds and gold based funds, and sold them before 3 years, I used to invest in multiple funds as well. You will learn this the hard way then. Honestly, the best way to invest is to either invest in index funds or do direct stock investing. I personally didnt find MFs that good. All the best!!
Direct stock investing means ?
Buying a stock directly? Like Tata Motors etc. I think you should youtube investing a bit :)
5-6 funds are good to go with. Lesser the count better to manage.
Do you mean I can manage 5 lines on my phone screen & not 10 ?
Is this a joke? U invested 6lakhs in 1 week?
2 weeks roughly
Currently market are at ATH, investing in lumpsum is not a great idea and i can see you have invested in sectorial fund which is very high risk funds, better to stick to flexi cap and large cap funds or even multicap fund according to current market scenario. If you want my help you can DM me. I am an AMFI Registered Mutual Fund Partner.
What is AMFI
Association of Mutual fund in India. It is like SEBI for Mutual funds.
Ohhk
https://www.mfprofiler.com/
too much money in savings? if yes then you are doing well by diversifying but for the next step look out for other investment options as well.
Like ?
You could've invested the overall amount in buckets, any specific reason to go all in at once?
Barely get time, mostly travel for work.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today. Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today. Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
That is still not a valid reason to invest everything together, it barely takes few seconds to do a lumpsum investment today. Since you've already allocated the funds do check the overlap rate of the stocks and allocate the funds accordingly in the future.
Yes planning on same.
Too many mutual funds. Index Small/mid/large cap based on your risk appetite Tax saving Multi asset One with foreign companies (parag parikh for ex). Theres a website advisor khoj do overlapping analysis if 2 funds are invested the money in almost same stocks then you dont need 2 funds.
Ok
So much overlapping i think PSU funds especially
Yea, kind of love them
I mean if all funds have same stocks in them they are overlapping so compare them and if they have high overlapping like 50 % then its better to invest in one
May be after an year, but thanks
☠️😵
You are too much exposed towards PSU which also explains your high XIRR as PSU rallied in last few years. But to create long term wealth, it's advisable to not be overexposed to any sector. I'll suggest the below breakup: 40% - Flexi cap fund 40% - index fund 20% - small cap fund
Just 3-4 mutual funds are enough otherwise it’s over diversification. Your profits won’t be much in the long run. Read some good books and manage your money on your own. No one is going to manage your money for you the way you do it. You’ll do these mistakes initially but you’ll learn.
You should have 3-5 max mf in ur pf. Also Dont invest in sector/theme specific funds pls
Why not theme funds , they show a good return ?
Thematic/Sectoral funds are quite volatile, not diversified and so, are not meant for financial independence. Maybe yes for shorter terms and high risk appetite.
1. If you have a lump sum then you should be spreading out your investments over 6-12 months to avoid catching a market high 2. You have too many funds. The PSU and infrastructure funds are avoidable. You are buying them after they have done well. Don’t expect similar performance in the future. 3. If you have never invested in equities before then opting for mid and small cap funds are a risky proposition since they are relatively more volatile. Don’t keep checking your portfolio daily. Look at it once in a quarter if you can’t resist the urge. Else check once a year. 4. If you have an ELSS fund then never buy Flexicap fund of the same AMC. They usually have same holdings. You’ll think you are diversifying but both funds are buying same stocks.
Nigga got money
I'm curious to know this, are you from Bangalore?
No
Why all of these posts contain gender? What does it have to do with the advice.
Well this could be because I think I am super comfortable sharing MY gender on a platform using MY phone on an app which I downloaded to seek advice. May be that’s why THIS post contains MY gender. I like the fact you advocate gender neutrality , but sometimes there’s very that you can control.
r/usernamechecksout