My Long Term Investing Portfolio | How I Select Mutual Funds and Stocks for Wealth Creation
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- เผยแพร่เมื่อ 2 มิ.ย. 2024
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Selecting the best mutual fund or stock is something everyone thinks of. It's a question I am asked often, so in this video I shall explain how I design my long term investment portfolio which is a mix of equity mutual funds, ETFs and stocks.
The portfolio is personalized to me on basis my asset preferences, risk appetite, investing goals, instrument of choice (i.e. equity mutual funds or stocks), time horizon etc. Your portfolio can and should be different from mine. However I think you'll be able to find some very practical information on how you can improve your own long term investing approach and derive benefits from my experience
🙋♂ Follow Shankar Nath on bio.link/shankarnath
👉 Video Chapters:
00:00 Selecting the Best Mutual Fund
01:15 Primary Asset Allocation
02:37 Secondary Asset Allocation
03:57 Mutual Funds to Avoid
04:39 We Actually Invest in the Fund Manager
07:30 Consistency More Important than Trailing Returns
08:49 Personal Preferences
10:14 My Equity Portfolio Construct
11:31 SIPs for Long Term Investing
#longterminvesting #bestmutualfunds #investmentportfolio
Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
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Just a token of appreciation for the immense value your videos have provided me, both through this channel as well as in past.
Thank you very much, Saikat. Happy to play a small part in your financial journey. I'll organize a video call sometime in early January with other Super Thanks contributors, will appreciate if you can join us then. This will be more of an open house (no particular agenda) but I'll want to get feedback on videos, topics covered, opinion on future topics, some flowing content plans I have in mind etc. I'll drop a note on this very soon.
Just when I thought the thumbnails couldn't get more creative, Shankar Sir you just outdo yourself with your every new video. Love every second of your valuable content.
Thank you so much 😀
It’s extremely difficult for one to accept their past mistakes and that too a person accepting it in a TH-cam video openly has a brave heart. Hats off to all your hard work especially for being brutally honest!
Thank you very much. A lot of investing is learning from one's mistakes. Infact, I ask everyone this one question - what is common between each one of the world's richest investors? It's mistakes and white hair :)
Thank you for making a video for my tribe 😀. Like the different keywords coming from different fund managers, your keyboards like allocation, rebalance, framework, consistency are very different from other leading TH-camrs presenting specific list of mutual funds. It's genuinely educational rather than masking specific MF/Equity tips behind barb of educational purpose videos that many do 😀. Please keep it up 🙏.
You are so welcome! A lot of it is experience in handling my own money. Plus there is my work experience (last 7 years at a wealthtech company) which allowed me to examine scheme performance, talk to people at dozens of AMCs and understand the purchase behaviour & performance of tens of thousands of user portfolios. All this helped me frame my own investing approach. Through research and these videos, I'll continue to improve it and share my findings with the viewers.
As I always say, education helps a person catch a lot of fish every single time over decades .. a tip that says "catch that fish!" will not go a long way :) Thx again for your kind appreciation.
Bravo! Another Banger of a video! These are getting too good day by day, most people would like to know which scheme u have bought however u got away with it like a legend! Most people miss the basics and go straight to returns and end up with an overexposed portfolio. Thank you for spreading awareness :)
Thank you, Arun! Yes, why tell someone "catch that fish" .. when they can learn how to independently catch many fishes for many decades. Over time every investor realises that investing is a process .. and one needs to customize the approach to suit their goals & preferences
Just started watching the video. Couldn't resist commenting on the thumbnail. It's awesome!!!
Thank you so much. Hope you liked the video's content aswell.
Regarding the knowledge i don't have anything to say it's always been stellar. But a new youtube channel having this much creativity in thumbnail, on top of that the production quality of the video is top notch! Really didn't expect! Great job
Thank you. I learnt what moves me a bit later in life i.e. what can I persist with for the rest of my life. Three things - 1. Investing, 2. Teaching and 3. Creativity. And TH-cam became that perfect outlet to practice these three things & I try to maximize my efforts on each of these 3 areas.
Love the way you share knowledge without suggesting specific stocks and schemes.
I appreciate that! Thank you Sujay.
I even proved the efficacy of these "10 midcaps that'll double your wealth in 3 years" claims in my Stock Tips video where the success rate of stock recommendations by big brokerages & research firms of reaching their target price was a mere 46%. Those recommendations over an year (Diwali to Diwali) returned 9.2% which underperformed the Nifty 50 (10.5%) and hugely underachieved the targeted return of 28.1%
In my view, 20 deeply researched stocks is enough to build a long-term basket. If even 2 of them turn multi-baggers (100x) over two decades and the other 18 lose all their value -- one still ends with with a CAGR of 12.2%. I feel working on identifying those 20 stocks over an year is better than receiving advice over TH-cam of 5 stocks every week with no personal accountability. I'm hoping my videos will help build that accountability layer and pleasantly, all this research is accelerating my learning aswell.
Keep eagerly waiting for all your videos !! The presentation and content , top notch … learn so much from all your videos .. way to go Shankar !!!
So nice of you, Jehan. Thx for the appreciation
Following you from last few years and big fan of your content and Thumbnails... Hats off! Appreciate your efforts and wish you good Luck ☺️
Thanks a ton Pareek. Happy to play a small part in your financial journey!
Thumbnails are always on point!
Excellent content. Thank you
Thank you Raju Kumar, happy you liked the content & hope to see you apply some of it in improving your own investing strategy. At the end of the day, you should be comfortable with your choices.
Great financial advice, that you rarely get anywhere else, Kudos!
Thanks Vaibhav. The fact that there is a B.Com, B.Sc., B.A. but no Bachelor in Investing .. means it has to be learnt by doing & practicing. Honestly, this video is just 10% .. the rest 90% will come when one organizes, implements and improves their investing strategy which gives them peace & comfort
it is so much fun to watch your videos with wonderful framework and ideas. Brilliant i am a great fan of your ease of presenting the content so eloquently and articulately . keep up the good work sir
Thank you so much 😀 .. I'm happy you are finding my videos helpful
Setting new benchmark for thumbnail creativity with every video. Kudos to your team.
Thanks!
Each and every second of this video is informative. Hats off to you sir
Thanks a ton, Kanakaraj
I have listened to this video over few times now and each time something I learn about my mistakes and tendencies to drift away from discipline.
Yes, that's how it works. The brain generates different brains and thoughts are different times even in the same situation
I like the innovative style of your videos, very interesting, funny at times and engaging!
Thank you very much!
For a Dumbo like me wrt finances, I find the videos very interesting, because you talk about concepts which are critical and helpful in long term. I'm learning a lot, though there is a long way to go! 🙏🏾🚩
Thank you very much, Gunjan. Happy to play a small part in your financial journey
@@shankarnath 🙏🏾 There is too much info and too little guidance out. Something like this is a good place for ppl like me to anchor and fish around!
Shankar and the art of Financial Education 👍. I'm old school and I picked up all my MF investment strategy from the one and only Value Research. But nowadays people have been flooded with Advisors, YT videos and Apps that influence them, thereby the retail investor not able to make right decisions 🙏
Thanks for your appreciation and sharing your experience. I was a VRO person myself in my early investing days. My ET Money experience helped me in seeing other sides and gave me access to data (hurray!)
From Blog to ET Money and now YT channel , Thank You For Educating Me Sir.
Most welcome!
Sir you are one of my investing Guru. Thank you for educating us in a better way...
Most welcome. Happy to play a small part in your investing journey
Its me again. I cannot tell you how happy I am to get your guidance its the best move for you to do indiviual channel role to guide us. Its a win win for all of us.
Great to hear! Thx for the appreciation
You are superstar sir. Only thing which can beat you is your video thumbnail. I mean literally.....oh my god !!! It is next level 👌👌👌
Thank you so much 😀
I was a regular consumer of the videos you were posting with et money but I am happy that I found you.🙂🙂🙂
Welcome aboard! Thanks for liking
Pressed like button even before starting video.
Really surprised seeing numbers in your portfolio!
Much appreciated! Thank you Satyasis
Hehe, love the thumbnail of the video 👌
I can totally relate when you say more number of funds in portfolio. Even had done the same mistake of investing in so many funds but later reduced it to only 4 types of categories. Thanks much for the detailed explanation and definitely learning much from your experience and enjoying your content as well. Bravo👍🏻🤩
Thank you Sachin. Congratulations on pruning the portfolio back to manageable levels!
Hi, What are the four types of funds u are investing in ?
Yet another content-loaded crisp video!
While I always loved your videos (ET), your content keeps getting better and you've become my go-to FIN-fluencer. More power to you...
Wow, thank you Hemang
Love you and your thumbnails sir. Even a non market person will surely feel like watching your video by looking at thumbnail.
So nice of you. I assure you, the content is better. Hope you like that aswell.
Outstanding thumbnail 👌mindblowing speaker❤️
Thank you so much 😀
Many thanks being provoking self thinking process, much appreciated content...
Most welcome .. and wishing your daughter a very happy birthday in advance! 🎂
@@shankarnath Many thanks Shankar ji (This is from my daughter)
Excellent.. and great knowledge sharing 👍
Thanks a lot Sasikumar
This video explains your honesty and integrity
Glad you liked it. Thanks!
Fabulous content Shankar as always
Thank you Gaurav, glad you liked it
You are really a shining star in chaos of finance you tube video
Thank you very much. Appreciate the kind words
Awesome Mr. Shankar Ji... your content and video thumbnail is very nice 🙂..
Thank you so much 😀
In reality Shankar sir is enlightened with modern outlook
Haha .. yes, this is me attaining niveshak nirvana
Very informative video sir. Thank you. I would love to see a video on "Stocks vs Mutual funds" comparison video.
Thank you very much, Prashant.
As there are already many videos & articles on stocks vs mutual funds .. are there any particular points of comparison would you like me to cover which has not be explained elsewhere. Thx for the suggestion
Simply outstanding
Thanks
Hi sir
Thank you for your guidance
And amazing thumbnails
So nice of you. You're most welcome
The creativity in the thumbnails, my God!
Thanks so much for the kind words! I'm really glad you like the thumbnails.
Nice thumbnail, it's like, the monk who explains mutual funds :), anyway nice video once again, please come up with fund manager style of investing, which is not much explained in their NFO videos are later
Thanks! 😃
Excellent video Sir! Looking forward to next video on MF House/MF Managers investment style, will be quite useful.
Thanks!
Excellent Shankar. Keep it up
Thanks
Hello from Sweden @shankar Nath. glad to see your new channel. would love to see more videos on NRI investment in India who wants to diversify investment in Asian market as well directly. Thanks again for all the content :)
Thank you for your appreciation & suggestion, Chakshu.
Not giving the exact names of MFs and rather gving a framework for decison making ! Thats how education shud be ! Shanker ji you are truely enabling people ! Thanks a lot !
Most welcome. I was talking to a friend a few years back and she said, "Instead of telling my child what to do, I will be a more satisfied parent if I can give her a framework by which she can take the right decision for herself every single time". Somehow that statement stuck with me and has helped me achieve a lot more than awaiting instructions & working per others decisions.
Infact I believe, my moving from a salaried role to a self-employed one is a result of that stronger foundation. Thanks for your kind appreciation
@@shankarnath thats even further enlightening and motivating thoughts shared... we should all try to traverse such path or way of life ! Highly appreciated !
Extraordinary video.
Thank you!
Big fan of you and your content 👍
Thank you so much 😀
Shankar Ji Excellent video. we need more videos from your end related to MF, How to take profit , Analyzing the MF portfolio , Which MF to choose , when to stop and when to exit from MF, What factors to consider before opting for any MF
Thank you for the suggestions and appreciation
Love your thumbnails :)
Thanks 🙌
Great shankar sir..
Thanks!
Must say the thumbnail suits your style and persona (based on the on-sccreen that we see)
Thanks!
Great Content ! Could you make a video on choosing international funds ? In light of RBI imposed instructions on international funds, could you shed some light of available avenues to invest in international funds ?
I'll add it to my content queue. Thx for the suggestion!
Very Well explained 🙂
Glad you liked it
You make really great video
I appreciate that! Thank you Dipendra
With this I have become ur fan shankar
Glad you liked it
8:24 - Full marks for using the football analogy correctly !
Thank you!
With the last budget announcement of allocation for infrastructure, it might be a good idea to look at an infra sectoral fund, is my thought. No?
I am a big fan of you Mr. Shankar. You are the only TH-camr who gives genuine advice.
Thank you very much. I'm happy you like my work!
@@shankarnath My pleasure sir. You have earned it but honestly you deserve a lot more.
Hi Mr Shankar Love from SURESH Tuticorin,Tamilnadu💚
Thank you very much, Suresh. Hope you are doing well
Oh then what are we doing here? :-) Thank you once again for wonderful video. Gratitude:-)
😊 you're welcome .. glad you liked it
Yet another great video Shankar.. At 10Minutes in this video, you were indicating for flexi and multicaps, you invest in passive way. But I couldn't find any ETF in 'large cap' category except ETF's hovering NSE / BSE 500... Not sure whether any (a) 'large cap' category is there within (b) flexi/multi, that too in (c) 'passive' way. Can you pl clarify these 3 combo?
Thank you very much! 🙌 There are many hidden passive funds in the largecap category. For example - the Nifty 50 Value 20 fund/ETF is a large cap as it picks from top 50 mcap stocks. Similarly, there's the Nifty 200 Momentum 30 which generally has a good number of large caps (it also bundles for me as a large+midcap option). Like this, you can find 5-6 additional funds/ETF
Hope this helps
Please make a detailed video on International funds. How to invest, where to invest and if there even is a need for so much diversification...
Thanks for your suggestion. I'll add it to your content queue
i too had around 12 to 15 mutual funds about 4 years back. Now i have 1 passive nifty index fund, 1 small cap, 2 flexi cap. (equity)
Thanks for sharing
Hi Shankar, your videos are very simple and practical. This video is on the same line. Your way of presenting is very down to earth. Much appreciated. Have one question. How do you evaluate increasing AUM or fund size and its impact on fund performance? I understand it can have positive or negative impact. What is your view?
Thank you very much for the kind appreciation, Basker. I have generally not found much correlation between rising AUM or fund size on fund performance. Everything depends on the fund manager and the style of fund and honestly, I don't think fund size even comes into my criteria. Ofcourse, I'll prefer active funds with over 3000 crores in AUM and index funds with atleast 200 crores of AUM as it generally means there is a dedicated team that's managing these schemes. There is no science around my estimations and I'm purely replying on my experience on this.
Great Content as always Shankarji! I have three questions.
1) You said multi-cap funds are your favourite. Why is that so? Aren't flexi cap funds better since there is no mandatory minimum investments in each cap
2) Isn't investing in a passively managed index fund better ? Lesser expense ratio, lesser effort to track. They have given 15% return over 15-20 years time window and correlate with large/mid/small cap fund returns over a long period
3) Are passively managed funds better than active funds? How often should we review our mutual fund portfolio and re-adjust? Are there any key factors based on which a fund switch decision can be made? Please make a video on the process of re-adjusting one's mutual fund portfolio
Thanks
1. It offers me a 50-25-25 splitting between large-mid-smallcaps which helps me control my asset allocation. With flexicap, I lose that control.
2. It's not wise to generalize. I can show evidence that actively managed funds are better and I can also show evidence that passively managed funds are better. The truth is some active managed funds are better than the rest and the same is true for index funds. Ergo, I have some of the better performing (& hopefully performing in the future also) active and passive funds in my portfolio.
3. I haven't re-adjusted my portfolio in a long time but then I've held schemes for many years and it's now on stable ground. From an over-thinking stage, I have moved to an under-thinking stage with my mutual fund investments and this has only helped me. I will try to make a video, thanks for the suggestion
Another useful video. I wish I had seen it much earlier. Can you suggest how to categorise Hybrid funds. As of now I am following Value Research categorisation. Is it necessary to identify the actual nature of equity in each Hybrid fund.
Thank you. I too follow the VRO classification with re: hybrid funds which I think is OK. It's their classification of large caps is where I have problems with a lot of sub-categories jumbled together including mcap index & factor funds.
Eventually it helps if you have an idea of the equity asset-type in the hybrid fund. Generally you'll see that's mostly largecaps with a sprinkle of midcaps. So if you are already largecap heavy and you have a bunch of hybrid schemes, then on an aggregate basis - you are thick into largecaps which might not be ideal.
Thanks for the highly informative video! Requesting a video on Small & Mid Cap funds for long term wealth creation over a 15 year horizon.
And on a separate note - Delhi aa jao aur ek lecture kar do! Thanks for the amazing info. Keep 'em coming!
Thank you very much for your generosity, m'lord
1. Hope you have seen my video on 16% returns using small cap strategy. It's something I have been using for a few years now .. and it works quite brilliantly. Link: th-cam.com/video/ppxnjQ86T-Q/w-d-xo.html
If there is something else in your mind, please let me know. Thx!
2. Post Holi, I'll organize a meetup. I live in Delhi myself so logistically there is no challenge :)
@@shankarnath bas toh ek Meet-up for us दिल्ली wallahs..
Well in that case please let me know, special treat of spicy Chole kulche from Central Delhi specially for you kind sir!
Yes, I did see your video on the small cap strategy. But for a totally passive investor like myself who just prefers to pick up a few actively managed funds (did try ET Money genius but it wasn't my cup of tea, investing in index funds) & do SIP in them for 10+ years but timing those SIPs & doing lumpsums ain't my thing. Therefore had been requesting a video for Actively managed small cap & mid-cap funds. Currently don't have any debt cushion as already have some money tucked away in traditional debt instruments.
@@lordrdx666 OK, let me try applying it on the active funds. The bias I see is the investing style which goes through periods of ups and downs. Anyways, will try!
Prefer bhature :) Khulche is fine if it's a little moist, I can't stand the dry ones
@@shankarnath BHATURE bhi khila denge & Kulche bhi... Kulche will be crispy tossed in Amul butter & Chole shall be spicy! Just typing it makes my mouth water! Still have your older ET money videos teaching the 15 x 15 x 15 plan for SIP for retirement. Still look upto it for mental stability during market volatility.
Look forward. The video I am releasing next has a simple 10-bagger approach which I personally use for building my retirement kitty. That 10-bagger mental calculation is what I really used to be able to move out of a salaried status to become a self-employed person. I'll release it on Sunday
Best video ever !
Glad you like it. Thanks!
@@shankarnath May I know why Multi cap is your favourite type of mutual fund..
@@dr.riteshchhabra3611 That's because a) it gives me participation in the best largecaps, best midcaps & best smallcaps as per the fund manager's research and b) I have a fairly good idea how much is going into each of these caps & generally it is 45% in large, 30% in mid and 25% in small caps
@@shankarnath Thanks for the reply Shankar ji..I appreciate your work..I am already Investing in a flexi cap..Is it a good idea to invest in both multi cap and flexi cap together..
Loved your content sir. Moreover thumbnail creativity is beyond everything. I am also a finance content creator and i know it's not that simple to think these ideas. Can you share the source how do you get these Brilliant thumbnail ideas? It can help me.
Thank you and keep it up.
Thank you, Jasleev. I follow a simple process:
1. I use a few websites:
a) For creation of thumbnail, I use canva.com (free plan is enough)
b) For swapping the face, I use faceswapper.ai
c) For removing background, I use pixetcut.ai
d) For removing watermark, I use watermarkremover.io
e) For free-form cropping out a picture (rarely used), I use pixlr.com
2. I try to not write the same thing in the thumbnail as the title of the video and restrict the number of main words to 4 or 5 (not always easy to do this)
3. The most important thing is to visualize the content of the video into a single image. For example - for the video on mutual fund mistakes, I visualized it as if I had been hurt .. which then led to that picture of me getting punched in the face
That's it. With practice, this becomes better. I have always been a bit creative and I love this challenge of fitting everything inside a small space in a way that viewers love it and click on the thumbnail. Plus the small space also needs to fit the presenters face so a lot to be done in a small 3x2 window.
Good luck to you with your channel.
@@shankarnath thank you so much for recommendations and resources sir. Learnt many new things and many more to learn. Keep it up and rab rakha.
Conclusion 👌🏻🙏🏻👏🏻
Thanks for the feedback! I'm glad you found the video helpful.
13.04: "Give a man a fish, you feed him for a day. Teach him how zo fish and you feed him for a lifetime." Suggested motto for your excellent video.
Thank you Yatin ji, glad you liked it
Gajab k thumbnail banate ho bhai 👍
Thanks for the comment, Shubham!
hey Shankar, thanks for this video
one question- you mentioned you tend not to look at historical returns while selecting a fund and will continue even it has not been beating the benchmark
So how do you track the performance and decide the point at which you would sell?
Most welcome. I base redemption on valuation levels and my asset allocation mix. This is where an understanding of how the fund manager has placed the portfolio also comes handy.
Great video, my debt is always in ppf,post office scheme, bank fds never in mutual fund debt , but i have 50 % in equity mf in large cap,flexi cap and very little in mid cap , i hope this is fine
Thanks for all videos they are all very informative
Most welcome
Excellent video as always :)
Shankar, do you think it make sense to invest in a large/multi/flexi cap separately while investing in ELSS fund?
Or rather we should invest in a Mid and Small cap for complete diversification?
Thank you. Waiting for the next video.
Thank you Souvik. It's a good point you raise and my observation has been that there is a lot of commonality (common portfolio) between ELSS, flexicap and large cap funds. And you can think of a multicap as a combination of large, mid and small. So yes, if you are more comfortable with large+mid+smallcap funds then please go ahead. While I invest in many SIPs, I always have my eye on the final allocation mix so I'm careful that way. Hope this helps.
@@shankarnath Thank you for your quick reply. Really appreciate it. :)
For long term, more than 10yrs, flexicap or multicap? with one nifty 50 index fund? Sir?
I hv literally become your fan. Someday might ask for your autograph.
Look forward!
Sir one question I wanna ask that how to know fund manager investment style ? As who invested in value fund or growth fund . If any website have these type of information so please share it . And THANKS for making such useful vedios ❤️ 😀
Hello Amit - as I said, you'll have to read more. Check out their interviews, the portfolio, what they say in their outlook letters etc. Most of the fund managers interview on CNBC, ET Now and other business news channels. Thats the best way of understanding styles.
"I am invested in 70 schemes" and working on it. This gives me some solace as I am invested in more than 100 companies and I am working on pruning. I know everyone's investing style, risk appetite, means and needs are different and there is no one size fits all. But I do know 70 for Shankar and 100+ for me, both are not correct, but we do it anyhow. Why I don't know. The most difficult part for me is to cut the numbers down,.even though all have more than 25 or 35 CAGR. If, in future, you can come out with a video in this connection, would be helpful for many like you and me. Also if you can guide that what will be the negative if we don't downsize. Would the end result be nominal or devastating?
Hello Anil ji .. congratulations on having 25-35% CAGR on your funds. My own portfolio (equity + non equity) tends to stay between 11.5 to 13%. I think a video will not be of interest to most as such a high number of funds is an outlier situation.
But to answer your question .. I don't see anything much to lose or win here. Over the long-run, most of the variation cancels out (atleast in mutual funds, maybe not in stocks). Infact, one indirect advantage of a high number of funds is that I don't bother looking at the mutual fund portfolio for weeks in a row. Actually, I look at it once a month typically on the 15th or 16th of the month when all the SIPs for the month are done with.
Thanks Shankar for insightful video.
Btw what do you mean by "factor based" fund?
Most welcome. Factor based funds is a longer subject to explain (needs a video), may I suggest you type the query on Google. There will be a link i.e. article from Vanguard .. which briefly describes it.
Amazingly compiled content for MF investors 😊
Glad you liked it. Thank you Rahul
Hi Sir,
Is there any central resource on internet from where one can download all the historical statistics such as 10 year SIP returns, 10 year Rolling Returns, etc.?
Hi. Please try advisorkhoj.com .. there's a lot of useful stuff there
Hi Shankar Sir, great content. Can you please suggest some tool/app/paid service to better track and do analysis of our portfolio. UI provided by apps like groww is way to simple and has less features too do simple analysis.
Hello Chitresh. Pls try valueresearchonline.com if you are a desktop user. I've used that for many years now & am comfortable with it. You don't need a premium version, the free version is good enough on most counts.
@@shankarnath Thank you 😊
Hi @Shankar Nath,
First of all let me say this is an excellent video alike others. I have a question though -
When you estimate your portfolio for lets say 50% equity allocation to large cap (or mid/small cap ... ), do you consider the large cap component that even the mid cap or small cap or hybrid funds etc. that you have in your portfolio have? because generally no mid cap or small cap is pure segment MF.
OR,
Do you estimate purely based on money allocated to MFs which are designated as a particular cap?
If former, the allocations are dynamic, so what's the best way to keep tab especially at this point when you more than 20 funds invested in? I do know how to bring latest daily NAVs in my excel investment tracker I personally built, but I do not see any way to dynamically retrieve other aspect of a particular MF (expense ratio, rating, allocations etc. etc.) unless I do all of them manually.
I will wait for your comment, thank you, and keep doing the best work you are doing already. Looking forward to what you gonna bring next.
Thanks.
Thank you, Rahul
1. Yes, large cap % incl. all funds incl. the largecap proportion in multicap, hybrid, ELSS etc. Same with mid, small & international funds, ETFs & stocks.
2. The split information (% and amount) is available in most portfolio trackers - VRO, ET Money, Groww & others. Additionally these (I am mainly referring to VRO now) has the other details aswell - expense ratio, type of debt paper (like AAA, GSec etc), AUM etc. I used excel sheets many years back but now that my corpus & funds is on the higher side, I rely on these portfolio trackers.
Hope this helps & thanks for your kind appreciation
@@shankarnath I was checking Value research which provides an option to upload mutual fund investment through CAMS/KARVY by providing the email Id used for investing. Is this a secure means of providing information to external party (in this case VRO?)
I'm not aware of their cybersecurity policy & practices. Apologies!
Good advice!
I am cutting down on my number of Equity schemes, now down to 10. It will take me at least 4 years to bring it down to 6.
1 question - I had Mirae EBC from a long time with a considerable amount in my portfolio. Since the fund restricted SIP inflows to a maximum of 25k per year, It is affecting my investment planning. I don't want to add a replacement fund because a)it will increase my number of funds and b)Offloading this fund will be painful with all the LTCG calculations. I feel like I am stuck here. Please advise or provide your opinion.
Thanks. It seems a major factor in you not rectifying the issue you have identified is because you don't want to increase the number of schemes in your portfolio by a count of 1. This is a very personal decision, but personally I won't care about an extra scheme in my already longish list if it helps me improve my allocation
@@shankarnath Thanks for replying!
Reasons for not adding 1 more fund - a) I can achieve similar allocation using other flexicap funds in my portfolio b) I prefer to run sizeable SIP amounts in limited number of funds (vs lower amounts in 10 funds) through markets cycles - like you said to eliminate original fund selection effect c) I try to do ad-hoc top-up based on economic/market conditions to improve overall XIRR - analyzing limited funds is easier in this case mainly because of limited time I have
@@karthikkaligatla5390 Cool, then that solves for your original question also i.e. your preference is to stop the SIP in Mirae Asset EB Fund and start an SIP in another large&midcap fund or flexicap fund that is already there in your portfolio. This will satisfy your a) and b) criteria and c) is anyways possible.
Sir, as a beginner like me i don't have any idea how to start with mutual funds and how to pick. So, I started my mutual fund journey with a financial advisor, going with regular funds. So, I think who don't have much knowledge in this field they should must go with a advisor without thinking of regular and direct.
Hello Kartik - if you don't have much knowledge now, you can go with your financial advisor. Please check with your financial advisor if he/she has other options like taking a small fee from you but giving you a portfolio of direct funds. But if your portfolio is small then please accept a regular plan as an acceptable tradeoff against useful advice.
My suggestion will be for you to progress into a direct plan especially for your equity SIPs as soon as you can. It doesn't make sense to stay in a regular plan because the advisor has not much advice to offer there .. afterall its just about investing a fixed amount of money every month.
Once your knowledge improves and you are comfortable (which should not take long), then you can chart your own course. You'll make small mistakes in the way which will help you make big wins in the future. Good luck to you & best wishes.
Your 9 sip invested stocks portfolio may overlap and hence possibility of returns rate will be decreased. I appreciate your allocation ratio
1. Large cap ( passive or active any one to avoid portfolio overlapping)
2. Mid cap
3. Small cap
4. International funds
5. Gold/REIT/Invit/ETF
Appreciate it, Annamalai. Curious to know - is there some literature/video you've come across which shows that portfolio overlap leads to reduction in returns? If yes, pls share. Thx!
@@shankarnath thanks for your reply and I don’t have references as of now .sir same company existing both active/passive/Elss large cap funds. If less than 10-20% overlap stock means ok sir.
Please make a video on preferred investment styles/theories of different AMCs or CIOs in India.
Thanks for your suggestion
Hello Shankar, Excellent videos and excellent content.
I have been following you from ET money days but now I am shifted to your channel
Please make a specific video on practical Mutual Funds in your portfolio.
Also suggest a right amount of SIP amount for 10 years in each fund
Thank you Nikhil for your continued patronage.
1. I don't reveal my mutual funds because I don't want anyone's judgment to be clouded by my own tolerance and profile. Plus never assume my portfolio is at 18-20% returns or something, its a lot lower & in line with my expectations
2. There is no right amount of SIP. At one point of time, 50% of my income was going towards SIPs .. so it's as much as you can manage comfortably. You have to be happy with your allocations at the end of the day
Hope this helps
@@shankarnath Thanks for quick response.
I understand your point here. Suggest some good funds in each category and best ways to consolidate your portfolio and limit to few funds
Also what is the right criteria and time to switch out from a fund
1. I haven't analysed schemes across categories. Let me add it to my content queue and I'll circle back when ready
2. Personally, I don't switch out of a scheme but I do switch out of a situation via the rebalancing route. I will have a video on rebalancing in a few weeks. I have a video coming up on Saturday on all-weather portfolio, you might find it interesting
My prediction this channel will have million subscribers in 6 months
Thanks for the prediction! I'll do my best to make it happen!
Hi Sir,
Content is good as always!
I find it difficult to know the fund manager. Like for Quant MF I was trying to watch some interviews of Ankit Pande but unable to find any. Secondly can we trust value research like platforms for ratings on MF?
Lastly is it okay to have maximum SIP allocation to 1 particular fund house in different schemes?
Most welcome, Ejaj
1. I'll make a video on Quant Mutual Fund's investing style. You are right, it is not very straightforward so I'll do the best I can
2. I used to look at ratings a few years back but for the last 3 years, I don't. I prefer to look at consistency of performance and the fund manager's investing style (basically what I said in the video)
3. No, it doesn't matter mostly. I feel your loyalties should be on the fund & strategy and not on the fund house. So if fund house X has all the schemes you want in your strategy then I wouldn't be bothered. The only thing I will be careful of is with schemes like largecap, large&midcap, ELSS, focussed and flexicap. Generally, all these schemes have similar stocks, strategy, characteristics & fund manager in them. So please keep an eye out for that.
@@shankarnath Thank you!
Sir please make a video on etfs I have many doubts in it ,like etfs are worth for long term investing...
Sure, I'll add it to my content queue. Can you list down all your doubts here? Understanding where you are coming from will help me create the content better
Please make video on passive fund
There are a couple of good videos on index funds on the channel, please have a look at those.
Loved your views, especially the 2-2-1 rule. But how do we go about researching the benchmark returns each year over the last 5 years. Because the data regarding the annual returns of funds is available but the annual returns of benchmarks isn't available. Do you have any resources for the same?
Thanks. Benchmark annual returns can be pulled out from here: www.valueresearchonline.com/funds/fund-category/?comp_bench=1#annual
@@shankarnath Thank you but the benchmarks used by value research are from S&P BSE indices whereas some funds have used NSE indices as well. Is it a fair comparison of BSE Indices with Funds? Just wanted your opinion. Thanks
@vedantv6618 Hi. Alternatively, you can manually punch in the values on a website like advisorkhoj.com and compile the information. Here you'll find Nifty based indices.
Personally, I don't see any material difference between the Nifty and BSE indices if the purpose of this exercise is to identify trends (which is certainly the way I am looking at it)
Thank you@@shankarnath
Hi Shankar Sir... Hats off to your content and thumbnails too. I was wandering you said there are more than 1000 schemes and also you are not naming any MF and also you said not to look at past returns, So can you please make a video on what % of MFs beat their respective benchmark in each category (flexi, multi cap, elss etc.) So that one can know the probability of beating benchmark in long term. It will be helpful to so many investors.
Also if you're restricted that you can choose only 2 equity funds for rest of your life and it can't be index funds then what it will be??
If you can't name them then atleast tell category like large cap, small cap, ELSS etc.
Thanks again for your time and effort 🙏🏻
Hello Sourabh:
1. For knowing what % of active MFs beat benchmark per category, please check out advisorkhoj.com. I will use the same source so you should also try it out. It's got a wealth of information
2. The 2 funds (non index) funds is a matter of personal choice. In my case, it will be a multi-cap fund (80% weightage) and an international fund (20% weightage). Ofcourse, you do realise I won't choose only 2 equity funds but am answering your question
Hope this helps.
@@shankarnath thankyou Sir for your reply, just wondering why not flexi cap or ELSS instead of multicap?
That's because : I know a multicap is atleast 25% in large, mid and small cap which allows me to work confidently on my asset allocation. A flexicap and ELSS is a free-for-all to the fund manager which opens up an incentive for closet indexing & it diverts me from my AA path
@@shankarnath thankyou so much for replying and giving food for thought
Hi Shankar, ardent follower here. Hope you share your thoughts on below two queries:
1. How to know one's MF portfolio's market capitalisation ratio? For example, I invest through Groww and it does show me a ratio but am always skeptical about its accuracy as it almost never changes even after making considerable changes in portfolio over the years. Is there a better way to get this report?
2. For smallcap investing, what's your view on offering such as Smallcase or Genius? I started my Genius journey primarily through your videos but would like your unbiased opinion on such portfolios even if you do not take their names on the video.
Hello Saikat:
1. Apologies, I have never come across this term "mcap ratio". I googled it now but found no information on it. I tried Groww (on desktop) but couldn't locate it. Does the Groww platform tell you how one can use this ratio?
2. For me, the instrument (active MF, index fund, ETF, smallcase or Genius) is secondary. I want to know what is inside the box and how it fits with my strategy. For example (and we saw that in the Peter Lynch video), I look for small cap high growth businesses at acceptable valuation. The 18-20 smallcap stocks I have in my portfolio are different from what I saw in some smallcase or mutual funds. But since I am comfortable with my strategy, I go with it. This comes back to the point I stressed in the video, understand the fund manager & his strategy -- applicable for actively managed MFs, smallcase & Genius. The alternate strategy for smallcaps is index funds and ETFs -- but still the investor needs to be clear with what he/she needs. Because I want growing smallcaps, I am into 1 actively managed smallcap SIP and a few stocks.
Hope this helps.
@@shankarnath Thanks for the response Shankar, bit of a fanboy moment for me 😊.
By mcap ratio, I meant the large cap: midcap: smallcap ratio of my mf portfolio. How do you measure it? In Groww, it's available under portfolio analysis (Hyperlink at bottom of the page)
Hi Saikat. Yes, all platforms provide the % allocation of one's portfolio in large cap, mid cap, small cap, debt & international. I use valueresearchonline which gives me that proportion in a piechart. So the image you see at 2:25 :
1. The equity/debt ratio is given in the "Overview" tab
2. The large, mid, small, international % & actual amount is available in the "Analysis" tab
Thanks
Thank you very much Rajendra ji for your kind appreciation and for this gratuity 🙌
Mr.Nath waiting for allocation video. hope you are doing good.
All well here, thanks!
Which app or website is it where you are tracking your investments. The screen I see at 2:34
That's valueresearchonline.com
Thanks for your valuable thoughts... Of late I have been hearing about investing in US Stocks.. how credible these Vested, INDmoney, etc.. they create an account in Mauritius and just say the amount was insured for 5 lakhs dollars and so on.. is it worth going through these apps?
Most welcome. I haven't tried Vested or INDMoney yet. My investments in US equities have been via India based mutual funds only.
@@shankarnath I hope we have very few of such fund houses, for instance Motilal S&P 500 fund doesn't replicate the exact amount of companies whereas they have just 224 listed under them.. not so credible.. isn't it?
Good evening sir,
It is a very helpful video but still I am not able to select my funds, is there any way you can analyse my portfolio?
It will be very helpful.
Regards
Good evening. Kindly explore taking the help of a financial advisor for a proper analysis of your portfolio.