Mutual Funds

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Swami007
Hello,

I want to invest in direct mutual funds (2 or 3 max.) for at least 15 years (until retirement from service) with a monthly investment starting at Rs. 8000/-. I will annually increase the investment by 10%. The expected return will be >11%. Kindly advise.

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Deal Subedar Deal Subedar
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If you truly have no intention of withdrawing for 15 years, then look no further than an Index fund.

Tata nifty 50, Motilal Oswald nifty 50, Nippon nifty 50 seem good. But anything in a good recognizable company will do.

100% in index funds.
----

Or

In the interest of wealth creation, short term profits(5-7 years) and tax harvesting benefits. Pick a flexi cap and small cap, invest in them as well.


It's important to know that small caps while generating higher returns for  short term in random periods, average out and deliver returns similar to an index fund.

While actively managed funds like flexi, multi cap can similarly generate high returns, they have historically underperformed index funds in long term.

(You pay a higher TER for flexi/multi/mid/small caps as well. They also eat away your profits).

So, finally consider a sip of

60% in index
15% in small cap
25% in flexi cap

If you see high profits in a year for small/flexi cap like 40-60%(for the units you own) withdraw and put it in your index fund. This will  also double as tax harvesting.

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Cool Cool
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Nifty50 index fund

Deal Subedar Deal Subedar
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Nifty 50 index and

Nifty midcap 150 index funds

Deal Subedar Deal Subedar
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If you truly have no intention of withdrawing for 15 years, then look no further than an Index fund.

Tata nifty 50, Motilal Oswald nifty 50, Nippon nifty 50 seem good. But anything in a good recognizable company will do.

100% in index funds.
----

Or

In the interest of wealth creation, short term profits(5-7 years) and tax harvesting benefits. Pick a flexi cap and small cap, invest in them as well.


It's important to know that small caps while generating higher returns for  short term in random periods, average out and deliver returns similar to an index fund.

While actively managed funds like flexi, multi cap can similarly generate high returns, they have historically underperformed index funds in long term.

(You pay a higher TER for flexi/multi/mid/small caps as well. They also eat away your profits).

So, finally consider a sip of

60% in index
15% in small cap
25% in flexi cap

If you see high profits in a year for small/flexi cap like 40-60%(for the units you own) withdraw and put it in your index fund. This will  also double as tax harvesting.

Helpful Helpful
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Thanks for enlightening me on this matter.

As suggested , I will choose from Tata Nifty 50, Motilal Oswal Nifty 50, and Nippon Nifty 50 for investing in index funds (60% investment). Kindly also suggest 1 fund from Flexi Cap & Small Cap categories for 25% and 15% investment respectively:

Flexi Cap:
1. Parag Parikh Flexi Cap Direct Growth
2. HDFC Flexi Cap
3. Kotak Flexi Cap Fund Direct
4. Aditya Birla Sun Life Flexi Cap

Small Cap (15%):
1. HDFC Small Cap Fund Direct
2. Axis Small Cap Fund Direct
3. Quant Small Cap Fund Direct Growth

Currently, I have a Demat account in Groww (opened in the name of my wife, who is a housewife). Should I use this platform or something else for this long-term investment in mutual funds?
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Deal Cadet Deal Cadet
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You may look for NIPPON BANK NIFTY ETF also.

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