My MF portfolio
My portfolio. I have SIP with nifty 100 for the last 22 months. I am thinking of starting a midcap SIP. What do you suggest?
You don't need to bother about any diversification with this corpus. Accumulate 50L and then start thinking of other funds to put money in.
100 stocks is HUGE diversification already.
Ghumu
Stealth
a year ago
May be I can gain more from midcap MF?
That's a false narrative. Don't focus right now on seeking alpha, you're too early in your investment journey.
Alpha comes with higher volatility, that scares people off when markets turn sour. All the Mid & Small Cap heroes you see on GV will lose the shirts off their backs when you see a quick and sharp drawdown.
Focus on building a stable Large Cap core, typically atleast 50L, ideally 1 Cr. Then diversify.
I think the Nifty100 is also excessive diversification. The Nifty50 is a better and more concentrated bet.
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Asset Allocation matters.
Imagine your invested amount to be more in ppfas instead of nifty100.
Nifty 50/100 --> you don't invest to beat the market. It is the market.
Philosophically... Having nifty100 + ppfas in same portfolio doesn't make any sense
This is a classic example why one needs professional help.
Everyone is of the view that they can handle their own money. That is not how wealthy person/family thinks. Think like a wealthy guy not like a rich/poor guy.
Indusplateau
Stealth
a year ago
Remember the lower category you go the higher is the time span.
If large cap cyle is 7 years, I think mid cap is 10 years.
Ghumu
Stealth
a year ago
That's new info for me.
Indusplateau
Stealth
a year ago
Yes the riskier bet you take the long time it needs to compound to hedge the risk.
If Midcap don't perform for 3-4 years you will panic and withdraw then in year 6-8 it will boom and you will feel guilty of it.
From: Investor from 2016 - 2018 wave
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Engineer404
Stealth
a year ago
No need, looks good to me. Keep investing
You might see more growth in midcaps, so its worth investing, although it is more risky.
Gonedalf
Stealth
a year ago
I just read the title in Samuel L. Jackson’s voice.
Few things you should do before making this call -
1. Define the risk factors of your investing, mid-caps will always have higher volatility
2. Check the overlaps between potential mid cap fund with your nifty100 fund components
3. Duration of your investments, if you are thinking of short term, might not be best as mid caps are expecting some de rating. Check how domestic MF houses increased cash pile in recent months.
DenseDog1
Stealth
a year ago
You should pick up a mid cap SIP for a higher swing when markets rise. Nifty 100 will give you a good cushion for a market fall.
Ghumu
Stealth
a year ago
Which one will you suggest?
DesignTinker
Stealth
a year ago
Invest in Kotak Smallcap fund. 3-4 year horizon. You’ll see profits in that in the long run
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