@kenjisan70 I just post returns from all the funds compared that with active funds. Returns of most funds is better than Index funds. That was my point. If you want to talk would be, could be, post the damn returns first. You have no real life data to back index funds are better active. None.
But yeah. It’s your money you can invest it anywhere. My point was to show it isn’t hard to funds to beat index which I did.
While in theory, you're correct that cash positions would prevent larger drawdowns, but in practice, lot of fund managers go fishing with first signs of trouble and then things get out of hand.
I'll take a solid example - Quantum Long Term Equity. This is a fund that's been poster-child of downside protection, since it beat Nifty returns hugely in 2008 by employing cash calls as markets had heated up in 2007.
Up until 2014-15, it had a great 10 year record, handily beating Sensex TRI (that was its benchmark), riding on the wave of fund falls less than market when drawdowns happen, generating alpha.
@michellelovesjay Sorry for asking this question, many articles on several websites by various authors, say that an Index fund is good and it has so and so benefits. No one can say whether it will beat an active fund in the long period or not. But considering the above data active funds can atleast in most of the cases. Is there any more in depth study, article showing which one trumps the other or do they both go side by side in a portfolio?
@resjudicata You’ll be fine. Axis, Mirae are the best of Amcs out there. Stay away from HDFC Nippon or ABSL for equities as their TERs are unusually high.
Makes sense to add those funds which invest in foreign companies?
Yes. As a part of diversification and hedging. Parag Parikh has some foreign exposure here.
I’d also suggest add focused funds. As name suggests these focus of selected 20-30 good companies only. These are high risk high return funds. Meaning, in bear markets these will show highest losses but in bull market these will show highest gains. If your holding period is long you’ll make good hefty returns on this.
@michellelovesjay Thanks. Finalized those as per knowledge gained from threads here. Learning a lot from posts like this.
2 questions, 1. For investing in foreign mutual funds I am looking for funds in which one can invest without demat account, don't want to use zerodha for MO Nasdaq 100 ETF as limited knowledge+zerodha sucks, so besides MO Nasdaq FOF which are the funds that invest in foreign stocks? Also what does Fund of Fund mean?
For debt I have selected 2 but waiting for the right moment because as per many posts its not the right time to enter. Axis liquid fund and HDFC money market fund.
There are some run by ICICI, Franklin, and ABSL, Motilal has SP500 index fund. You need to know that these funds have high TER ( as funds pay high brokerages) and they are taxed as debt funds.( less tax benefit than Indian MF).. But can act as nice hedge to nifty. You can also invest in gold as a hedge to market.
I believe google is better source that me to explain FOF
For debt I have selected 2 but waiting for the right moment because as per many posts its not the right time to enter. Axis liquid fund and HDFC money market fund.
Who told you that? Liquid fund and money market are 2 separate type of funds. You can invest in Liquid fund any time, think of this as a parking space for your extra funds while giving you FD equivalent return.
Money market fund or GILT fund is altogether different ball game. It has a risk known as interest risk. This sub had discussions on gilt fund in the past, I highly suggest you read about this before investing.
Will look into MO SP 500 index and will get back. Is it okay to go for an index fund in this case, in case of foreign funds that is, or an active fund? Moreover is MO or PP offering any active fund, not etf?
Isn't the main difference between LF & MMF only the duration? I have no idea about gilt funds, yet. Will read.
