joyinhispresence
New member
@duffy44 I will be honest with you I am no expert or SEBI registered, whatever it's called. I am 24 and quite younger than you so everything I say might not absolutely be right for you. All that i write is purely what I have read or think is right.
Usually, a mutual fund portfolio should consist of 3 funds , 1 index, 1 risky, and 1 elss. Anything more will increase the amount of overlapping of funds. This will only result in further expenses while selling. If you are young (27 is young), more percentage would be given to the risky and elss fund. This is the time to grow wealth. The moment you cross 40/50, whenever you believe you have earned enough, you allocate massively to index for wealth preservation.This was the norm as per my family and whatever friends that I have.
As an example, my mutual fund portfolio includes
1. Quant tax saver
2. Hdfc nifty 50
3. Icici prudential smallcap fund(not index)
To this, you can add one sectoral fund now as per your own preference. In my opinion, there are 5 major sectors in india, auto, pharma, banks, fmcg, and IT. Of these, only IT, banks, and fmcg have created exceptional value compared to the rest (based on the respective index). Choose any one of the 3 sectors for your sectoral fund (i prefer IT as it is a disruptive and growing sector, to not influence i have not mentioned the name of sectoral fund but it is on IT index).
If at any point you believe you have the funds to diversify further, invest in other economies. Using etf mutual funds that's going to be your own thing. This is because INDIA is a net importing country. Until the oil issue gets resolved or our net trade becomes 0, rupee will lose value. I hold other currencies to counter that. This is entirely upon how much you can risk.
I hope I was able to help.
Usually, a mutual fund portfolio should consist of 3 funds , 1 index, 1 risky, and 1 elss. Anything more will increase the amount of overlapping of funds. This will only result in further expenses while selling. If you are young (27 is young), more percentage would be given to the risky and elss fund. This is the time to grow wealth. The moment you cross 40/50, whenever you believe you have earned enough, you allocate massively to index for wealth preservation.This was the norm as per my family and whatever friends that I have.
As an example, my mutual fund portfolio includes
1. Quant tax saver
2. Hdfc nifty 50
3. Icici prudential smallcap fund(not index)
To this, you can add one sectoral fund now as per your own preference. In my opinion, there are 5 major sectors in india, auto, pharma, banks, fmcg, and IT. Of these, only IT, banks, and fmcg have created exceptional value compared to the rest (based on the respective index). Choose any one of the 3 sectors for your sectoral fund (i prefer IT as it is a disruptive and growing sector, to not influence i have not mentioned the name of sectoral fund but it is on IT index).
If at any point you believe you have the funds to diversify further, invest in other economies. Using etf mutual funds that's going to be your own thing. This is because INDIA is a net importing country. Until the oil issue gets resolved or our net trade becomes 0, rupee will lose value. I hold other currencies to counter that. This is entirely upon how much you can risk.
I hope I was able to help.