[Learning] Down side protection on folio

Friyay Finance Fundae is here. With markets peaking and multiple big events (Elections in India, US, rate cuts, budget) in the near future, I was looking for a less-stress investing option. Went down the rabbit hole of momentum-style investing as I see fewer value opportunities in markets with indexes in ATH territory. I thought my time investment could help others here who are looking for similar opportunities. I picked Quant Flexi Cap 5Y returns - 33.76% Expense ratio - 0.59% Min Investment - 500 48 stocks in the portfolio, looks soft & RIL heavy Vs Capitalmind Momentum (One of the best momentum investors in India) 5Y returns - 36.61% Small case Fee - 18,000/Yr + STCG Min investment - 1L+ Between 15 to 25 stocks, sharp! Overall, at this point looks like MF > Smallcase; as 3% extra is not worth the costs plus a concentrated portfolio. If folks here are curious, I can add some PMS comparisons as well. Feel free to pitch any momentum ideas in current markets.

Hi folks, Wanted to know how much you guys have lost in Mutual Funds over your investing span? Saw loads of stories of upsides however would love to hear how risky these could be just to keep myself calm and composed incase such a correction happens.

DISCLAIMER - I have no intentions to become a finfluencer. These posts are just to trigger personal finance conversations as I see many noobs chasing small/mid caps without a fundamental understanding. *3 interesting parameters to select MFs!* 1. Standard Deviation - It reflects the range of returns from the investment amount. 10% SD on 1000 rs investment can return from 900 to 1100. Higher the SD, riskier the investment. 2. Beta - This reflects the downside of MF against the benchmark. Beta < 1, fund has better downside protection. If Beta > 1, fund might fall more if markets see a correction. 3. Alpha - It reflects upside on fund when risk-adjusted against benchmark. Risk adjustment in easier terms can be absorbed as if benchmark index would have taken similar volatile stocks what would have been returns associated with it. To connect the dots, a fund can have higher positive returns with higher negative returns. Alpha will absorb downside and reflect upside after that. Exercise - Check the SD, Alpha, Beta of any two funds in the same category and share your learnings. For any category of funds (flexicap, small, large) these 3 parameters can be used for comparisons. Few more parameters are there but those can be explained later. Which factors you use while buying a Mutual Fund? Happy Weekend!

Own a house worth 3.5 Cr which is on rent Have a home loan of 2 Cr outstanding balance Have cash of about 0.8 Cr, Shares and NF of about 0.5 Cr and PF of about 0.3 Cr. Have also gifted my parents property worth 1 Cr This is both a post of happiness and need guidance to grow this to 15 Cr in the next 6 yrs (so I can retire in peace)

The power of compounding really works! Started with a meagre salary of 4L/annum in 2018. But made sure to SIP 5K every month in Mutual Funds, and kept on increasing with career progression. This could’ve been more but I wasn’t able to regularly SIP during the two years of my masters I did after my first job. This may not be as much as the other tech dude bros out here sitting in CRs but this is a big milestone for me and all I’d like to say is SIP really does work and it’s all about being in the long run. Onwards and upwards only now 💪🏼💪🏼

- Central Banks have almost achieved their objective of controlling inflation through tightened monetary policy. Though the CPI is inching lower, asset inflation is resurfacing through stock prices and real estate. - Many listed companies that came out with the quarterly numbers are nothing good to talk about. Growth and profits are subdued and for small and mid caps the numbers are decimated but the stocks are still trading at a historical premium. - Analysts will once again start downgrading the earnings forecast and that will start the downward momentum. Once again people will undergo the "Flight to Quality" effect. - No of Bankruptcies is steadily increasing - No of Job openings are trending lower - Most of the US listed firms that have borrowed at a lower interest rate in 2021 are coming up for renewals this year. By the time they refinance, they will be doing it at a higher interest rate which will impact their PAT as a result their EPS estimates will take a biting. - Gold looks attractive from a market cycle standpoint. My Recommendation: - Have an emergency fund for at least 6 to 9 months to cover your expenses. - Exit overvalued small and microcaps stocks. Move to a reasonably valued large cap. - Have health insurance for you and your dependents. - Move out of small cap mutual funds and have some allocation to debt funds. Let me know your thoughts. I hope 2025 turns out better.

I've completed 1 year in my first job. I've tried saving and investing some money, help me decide what I can do better: Income: 22LPA PPF: 3 Lakh EPF: 2 Lakh MF: 5 Lakh Saving Account: 4.5 Lakh Income for new FY post increment: 29LPA I did these savings based on some advice from my elder brother. I'd like to spend more this year though, with some travel and going out more, maybe even purchase a scooty/bike and a PS5 😁 - would these expenses be justified? Apart from improving my savings & investments and still being able to afford a few luxuries, I want to know if I should get any of these: - Health Insurance - Only 5 Lakh cover from company for me and my parents (note - parents are getting old) - Life Insurance - Do we really need it, I'm still 24?

A win in its own sense. I invest in mutual fund as well which is worth 27L but this is direct equity portfolio. AMA