I am a novice to the investment world. I have completed pretty much all of the zerodha varsity course and have a good portfolio to invest in ( at least good from a novice POV ). BUT now I have a big doubt, I cannot perform better than a professional investors managing big company portfolios then why not invest in the managed portfolios instead of applying so much energy and precious time into researching about individual stocks ( although the research is much satisfying than plain MF investment ).@Bhuvan @nithin @hm.evots @Karthik @Sensibull @pratheep
Hey @abhas_singh
Personal Opinion:
TL;DR
Active fund management is difficult and is a full time job. Give it to fund managers if you cannot spare the time and effort.
- What you said is mostly true if you are passively managing funds. (buy and hold)
- You may be able to out do fund managers, by the way. Most fund managers are restricted by their size. And because of their size they cannot invest in the same things you do. You are small, nimble, and can exploit smaller opportunities and smaller stocks than it fits the size of large funds. This point has a huge warning. It is VERY difficult to do active trading. You have to be really really good. And you have to have the time.
- If you are into derivatives, (and REALLY good) then you can easily beat anyone. And no one can (100% legally) manage your money in derivatives for you in India
- If you are not into direct mutual funds, your management fees will eat into your P&L, quite a bit
- But all of this requires time, dedication, discipline and effort. If you do not have the time, the best thing to do is to give your money to a money manager
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