If you had to put 90% of your salary in a mutual fund for next 5 years , what mutual fund would you choose ?
The most important thing in investing is not generating the highest returns or picking the best mutual fund, it is the asset allocation. Putting 90% of your portfolio in a single fund won't suffice your aspirations or won't protect your downside. You need to understand that mutual funds are about returns, risk, liquidity and low exit risk.
For goals any less than 3 years, invest purely in debt funds. For 3-5 years, choose a conservative hybrid fund. For 5 years and beyond, go for equity.
If you're a conservative investor, then you can place 5-7 years goals' money in a balanced advantage/conservative hybrid as per your risk profile.
For equity you can go for a 50% large cap, 25% mid cap & 25% small cap, or whatever percentage you choose. Large caps are there to stabilise returns and mid-small caps are for the extra return kicker.
By going after the highest returns, you are ignoring various other risks and I'm not only talking about volatility risk, there are many. Make a prudent decision and not one in haste
I understand that, that 90% line just meant which fund you trust the most with your money for next 5 years , regardless of amount you put in , just your favourite fund
Ok, my favourite fund would be Nifty200 momentum 30 index fund, outperforms nifty 50 with good alpha and protects in drawdown as well.
IMO it depends on age bracket , if someone is in 20s then i don’t mind putting 90% in MF but if someone older then 20s then they must not put 90% in MF, they must balance allocation in different assets class. like Bond , Digital Gold , PPF alongside MF(50-60%)
It also depends how aggressive returns someone wants while opting for MF, or if someone happens to be conservative investor blindly go with index fund. Index mf fund has inherent lot of risk covered compared to non index fund( not saying risk isn’t there though)
Sure , agreeing to that .
Just wanted to find out if y’all have some favourite fund to trust your money with or bullish with in next 5 years
btw my allocation is largely in small cap and mid cap funds
small cap : Nippon small cap
Mid cap 150 index fund
Also i do have nifty next 50 and nifty 50
Nifty50 index fund with least tracking error. Unless you’re picking stocks directly or investing in small caps, there is no substitute to an index fund. Low TER and on average better returns than most managed funds. Active large cap funds are a borderline scam
ICICI Gilt
Parag parikh flexi
I am planning to invest 70k per month in mutual funds for the next 10 years.
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