Elon_Trast
Elon_Trast
Apple

Mutual funds

Hi everyone, How do you guys decide mutual fund to invest in? Most people go by recommendation by friend or ca but if you want to do your own research it's still tough to decide. Tutorials online will narrow down 1000s of funds to couple of hundreds. How to decide after that? Or is there any other sip that I can starts like ETFs?

14mo ago
baffledwaffle
baffledwaffle
Stealth14mo

I’m sticking with UTI index fund and PPFAS Flexi Cap fund. Some into SBI Liquid fund too.

Some pointers:

  1. The AMC/fund house should be a good/ethical one, do research on the AMC too.

  2. Look at the 1,3,5 year returns

  3. Look for the expense ratio, exit load - lower the better

  4. Assess your risk and choose funds accordingly. Like read about the different kinds of funds and don’t put money in anything that you don’t understand.

  5. Stay away from the funds that have a considerable exposure to the “nEw Age TeCh IPOs”, chances are that the buy side and sell side are getting in bed together. Most of us don’t have the skill/experience/competence to find out whether they’ll give returns, most of them eroded wealth.

  6. Look at the companies which the fund is investing in, some funds will have a good 1yr, 2yr return since they were holding Adani stocks, may not be the case for future returns.

  7. Always read more and know what you’re putting money into, not from a mutual fund perspective, but the markets as a whole. I remember a fund manager saying that’ there’s no such thing as a buy and forget, you need to keep on tracking stuff.

  8. Do not over diversify ie, hold too many funds. Some of the stocks will be same.

  9. When comparing funds check if there’s overlap of stocks, check out this site: https://thefundoo.com

  10. These are good places to do research:

SleepyName55
SleepyName55
Stealth14mo

Thanks for the detailed pointers OP

Elon_Trast
Elon_Trast
Apple14mo

Thanks a lot man. Can't imagine someone writing such a detailed comment

dodgy_dave
dodgy_dave
Stealth14mo

I invest through a mutual fund distributor.. this uncle has been advising my dad for more than a decade and although he gets commissions, he does a really good job at guiding us. I also have a direct index fund investment for money given on occasions and by elders..

Elon_Trast
Elon_Trast
Apple14mo

Ohh nice

ElectricPing
ElectricPing
Decimal technology9mo

Investing directly from a mutual fund distributor means multiple accounts if you have invested in different mutual funds. So, how do you manage different accounts.

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