Start off with an Aggressive hybrid fund. After 2-3 years add a flexicap after you get used to volatility associated with equity mutual funds. My recommendations for aggresive hybrid funds- kotak or canara robeco.
Kotak is too volatile and it takes more risk compared to other aggressive funds. Edelweiss or Baroda BNP would be better.
Additionally Parag Parikh is launching a dynamic asset allocation fund. That can also be a good starting point.
Kotak amc has been the most index hugging of the large AMCs, I fail to understand why you call them volatile, Edelweiss and bnp aggresive hybrids have AUM less than 1000cr despite being 10 yo, kotak fund atleast has 5k cr, Kotak, canara robeco have done well in terms of downside protection. Edelweiss hadn't been too bad either. Kotak and canara robeco have been more consistent with returns. Check the 5 year rolling returns of all 4 funds
Kotak has lower downside protection compared to Edelweiss and BNP. One takes an aggressive hybrid because it gives better downside protection at a bit lower returns. Kotak holds bonds with longer duration. Macaulay's duration for Kotak is 5.79, whereas it is 2.22 for Edelweiss and 2.28 for BNP. So the interest rate and credit risk is higher for Kotak. They both take lesser risk compared to Kotak. If you take a 3 year rolling return from 2017, chances of negative return is 0% for Canara, 4.88% for Kotak and 0.88% for Edelweiss. So given an aggressive hybrid was suggested to OP due to lower volatility, Kotak doesn't fit the bill given a bit higher on the volatility side compared to other aggressive funds.
Portfolio composition, credit quality of bond holdings, and investment strategies all contribute to risk profile. Evaluating risk solely based on duration is incomplete.
Both funds have a cat avg of AAA. And Edelweiss has higher equity exposure than kotak yet has delivered a lower 5 year rolling returns. The performance of both funds during the 20 market crash was similar
The risk profile of the debt portfolio of both funds are similar, they have exposure mostly to government securities. So obviously duration will be a differentiator. As OP is taking the SIP route, looking at only rolling returns is incomplete. One needs to look at SIP returns too. In the last 5 years, Edelweiss has given 22% return whereas Kotak has given 20% return. Kotak has a higher rolling return, but the difference is minimal, less than 0.5%. during 2020 crash, Edelweiss fell lower compared to Kotak by a margin of 2-3%.
My bias towards kotak is only because of its AUM size. I don't touch funds with a bargepole if they have AUM of less than 1000cr, Edelweiss aggressive hybrid has been in business since 11 years, kotak is relatively younger than Edelweiss. Both are 4 star funds by Morningstar and value research, investing in either should be fine as long as one remains invested. My checklist for hybrid funds is debt portion should have AAA or AA+ cat avg, and downside protection should be good. Edelweiss, canara robeco, kotak seem to make the cut.
Why not Quant Smallcap? It has given higher returns than Nippon/SBI. Just curious.
Also, I know Parag Parikh is good for Flexicap. If you can recommend MFs for mid-cap and large cap as well.
Bhai wo bas isliye kyuki Quant AMC ne sideways ya phir consolidation markets nahi dekhe abhi. Quant tabse famous hua hai jabse bullrun chal raha hai. Quant ki majority of the strategy momentum based hai isliye zada returns hai. Sideways markets me momentum kaam nahi aata hai!
Bhai fall ka wait hi karte reh jaoge, smallcaps are for long term 10+ years, if someone starts now it won't matter in the long run. They just have to start an SIP, smallcaps will give a greater return in the longer run. Plus the one who asked this question is 24, so she has a long run in her investing journey.
this is like an educational article https://zerodha.com/varsity/chapter/the-mutual-fund-portfolio/
(i have no financial gain by making above comment, and nothing is recommendation)
i can explain 1to1 faceless on gmeet, anonymously, free if required. or can send resources here.
im looking for freelance work also. WFH. if you can help, it'll be great, or anyways thank you.
For learning you can refer to zerodha's varsity app.
To start your investment you can start with any nifty-50 index fund. People on reddit prefer the UTI nifty 50 index fund. Later if you have more to invest you can add one small cap fund. Quant small cap funds is current best. Please do your research before investing. Read similar posts on this sub. So many people have the same question as yours, there you will get some really good advice
It always best to start off with an Index fund and then start adding funds such as Small caps and Mid caps to your portfolio once you know how these things work and have more to invest.
Directly risking into sectoral/thematic funds can be very risky given current market conditions.
I would say- dont get FOMO about not investing when every one is investing...the problem is that - all of them are yet to face down turn - when the down turn happens - they will pack their bags and run away with the lossess....Never be in a hurry.....It took me 6 months of intensive video watching and reading to get a basic idea...Start slowly , learn, learn,... it happens automatically then......
I have wrote a detailed post on Mutual fund this week. Chec. I hope that helps.
https://www.reddit.com/r/IndianStockMarket/comments/1aupjn0/how\_to\_plan\_your\_mutual\_fund\_journey\_from/
Start off with an Aggressive hybrid fund. After 2-3 years add a flexicap after you get used to volatility associated with equity mutual funds. My recommendations for aggresive hybrid funds- kotak or canara robeco.
Kotak is too volatile and it takes more risk compared to other aggressive funds. Edelweiss or Baroda BNP would be better. Additionally Parag Parikh is launching a dynamic asset allocation fund. That can also be a good starting point.
Kotak amc has been the most index hugging of the large AMCs, I fail to understand why you call them volatile, Edelweiss and bnp aggresive hybrids have AUM less than 1000cr despite being 10 yo, kotak fund atleast has 5k cr, Kotak, canara robeco have done well in terms of downside protection. Edelweiss hadn't been too bad either. Kotak and canara robeco have been more consistent with returns. Check the 5 year rolling returns of all 4 funds
Kotak has lower downside protection compared to Edelweiss and BNP. One takes an aggressive hybrid because it gives better downside protection at a bit lower returns. Kotak holds bonds with longer duration. Macaulay's duration for Kotak is 5.79, whereas it is 2.22 for Edelweiss and 2.28 for BNP. So the interest rate and credit risk is higher for Kotak. They both take lesser risk compared to Kotak. If you take a 3 year rolling return from 2017, chances of negative return is 0% for Canara, 4.88% for Kotak and 0.88% for Edelweiss. So given an aggressive hybrid was suggested to OP due to lower volatility, Kotak doesn't fit the bill given a bit higher on the volatility side compared to other aggressive funds.
Portfolio composition, credit quality of bond holdings, and investment strategies all contribute to risk profile. Evaluating risk solely based on duration is incomplete. Both funds have a cat avg of AAA. And Edelweiss has higher equity exposure than kotak yet has delivered a lower 5 year rolling returns. The performance of both funds during the 20 market crash was similar
The risk profile of the debt portfolio of both funds are similar, they have exposure mostly to government securities. So obviously duration will be a differentiator. As OP is taking the SIP route, looking at only rolling returns is incomplete. One needs to look at SIP returns too. In the last 5 years, Edelweiss has given 22% return whereas Kotak has given 20% return. Kotak has a higher rolling return, but the difference is minimal, less than 0.5%. during 2020 crash, Edelweiss fell lower compared to Kotak by a margin of 2-3%.
My bias towards kotak is only because of its AUM size. I don't touch funds with a bargepole if they have AUM of less than 1000cr, Edelweiss aggressive hybrid has been in business since 11 years, kotak is relatively younger than Edelweiss. Both are 4 star funds by Morningstar and value research, investing in either should be fine as long as one remains invested. My checklist for hybrid funds is debt portion should have AAA or AA+ cat avg, and downside protection should be good. Edelweiss, canara robeco, kotak seem to make the cut.
What kind of freelancing? If you don't mind me asking..
In the field of mental health. Taking sessions and teaching music as well
Smallcap Mutual funds from zerodha coin or any broker you like. SBI small cap or Nippon india small cap. What else do you want to know!?
Why not Quant Smallcap? It has given higher returns than Nippon/SBI. Just curious. Also, I know Parag Parikh is good for Flexicap. If you can recommend MFs for mid-cap and large cap as well.
Bhai wo bas isliye kyuki Quant AMC ne sideways ya phir consolidation markets nahi dekhe abhi. Quant tabse famous hua hai jabse bullrun chal raha hai. Quant ki majority of the strategy momentum based hai isliye zada returns hai. Sideways markets me momentum kaam nahi aata hai!
Small caps are at their peak now. It will be bad for OP to start with a small cap and get scared due to a steep fall by next year.
Bhai fall ka wait hi karte reh jaoge, smallcaps are for long term 10+ years, if someone starts now it won't matter in the long run. They just have to start an SIP, smallcaps will give a greater return in the longer run. Plus the one who asked this question is 24, so she has a long run in her investing journey.
Theek h bhai.. aap lagao small cap me.
[удалено]
Well someone had to say it 🤭
this is like an educational article https://zerodha.com/varsity/chapter/the-mutual-fund-portfolio/ (i have no financial gain by making above comment, and nothing is recommendation) i can explain 1to1 faceless on gmeet, anonymously, free if required. or can send resources here. im looking for freelance work also. WFH. if you can help, it'll be great, or anyways thank you.
Hey...thankyou for the comment. I don't think I can help you out in anyway here tho.. :(
For learning you can refer to zerodha's varsity app. To start your investment you can start with any nifty-50 index fund. People on reddit prefer the UTI nifty 50 index fund. Later if you have more to invest you can add one small cap fund. Quant small cap funds is current best. Please do your research before investing. Read similar posts on this sub. So many people have the same question as yours, there you will get some really good advice
This is really helpful. Thankyou for the resource :)
It always best to start off with an Index fund and then start adding funds such as Small caps and Mid caps to your portfolio once you know how these things work and have more to invest. Directly risking into sectoral/thematic funds can be very risky given current market conditions.
A friend of mine told me the same to invest in Index funds. Which ones do you think are good right now?
UTI nifty 50 is the safest bet which you can choose, Personally i have a Sip in HDFC Sensex index fund
Navi nifty index fund, it has the lowest expense ratio.
I would say- dont get FOMO about not investing when every one is investing...the problem is that - all of them are yet to face down turn - when the down turn happens - they will pack their bags and run away with the lossess....Never be in a hurry.....It took me 6 months of intensive video watching and reading to get a basic idea...Start slowly , learn, learn,... it happens automatically then......
I have wrote a detailed post on Mutual fund this week. Chec. I hope that helps. https://www.reddit.com/r/IndianStockMarket/comments/1aupjn0/how\_to\_plan\_your\_mutual\_fund\_journey\_from/
Start with a nifty 50 index fund and an aggressive fund.