Gains
We have heard so many times that it's difficult to beat the index and people should stick to investing in index mutual funds. Well I've been doing SIP in selected non-index funds for past 4-5 years and surprised to that I'm comfortably beating nifty 50 benchmark. How are your gains looking and how long have you been investing?
Good one Kafkaa. What’s your Portfolio size if you don’t mind me asking? You can speak in ranges if you want.
My risk is also lower than nifty 50 (8.2 vs 9.5).
Return/Risk ratio is almost 2x of the benchmark.
TheOatmeal
Stealth
9 months ago
Great returns @Kafkaa , mine is hovering 16% for 5Y period
Indusplateau
Stealth
9 months ago
Consistency is the key to compounding.
Higher XIRR just makes you greedy and switch. Dont fall for the emotional traps.
Yeah. This is my passive investment portfolio. I just do SIP of fixed amount every month in this. Not going to touch it for another 10-15 years.
SabChangaSi
Stealth
9 months ago
Which fund is this? Do you follow only sip?
LastPatch
Student
9 months ago
Not every fund beats the index at all the time windows. Your outperformance is due to you being in the fund that outperformed the index and that might not be always true.
https://www.thehindubusinessline.com/markets/58-of-large-cap-funds-failed-to-beat-benchmark-in-jan-june-period-spiva-study/article67407254.ece
The above summary of the SPIVA report provides context. Read the full report, it has interesting data.
LastPatch
Student
9 months ago
Please provide the details of the funds you have and their percentages in your portfolio
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EarlGreyTea
Stealth
9 months ago
Good on you Kafkaa,
The last 1Y, and 2Y have done well.
Although you could have risked a bit more during the covid 1st wave, maybe pushed the lifetime returns to 20-25% perhaps.
But great returns nevertheless
Completely agree. Got a bit pessimistic during covid 1st wave and played safe.
Congratulations! Thats very impressive for a 5 year period.
You're done with about 1/10th of your investment journey.
My only advice for sustained growth of your portfolio is to do less. More often than not people tinker around too much - more funds, more buying/selling activity, more assets, etc. Activity != outcome.
It's counterintuitive, but a steady (lazy) hand with periodically augmented investments actually does best.
Hear Rajeev Thakkar (he manages Parag Parikh FC) on index Vs active investing
If I get 18% return I am the king If i get 22% return I am an emperor" - Rakesh Jhunjhunwala
Over 5 years 90% of MFs don't beat nifty 50.your 1 year return is higher, but when you see lifetime I'm assuming it's 5 years it's only +3 percentage points. Over a 5 year+ period,the difference will be minuscle imo.
majboormajdoor
Stealth
9 months ago
Would you mind sharing the funds in the above investment @Kafkaa? Are these all LC funds only?
