I am confused about investing in ETFs and mutual funds. I am a 20 year old, earning 35k/month. I can easily invest 10k/month.
Right now my major investment consists of index ETFs and individual stocks of some companies. I have also invested a bit of amount in the recently launched NIfty LargeMid Cap Index fund by Zerodha fund House.
Am I doing right by investing in both ETF and Index fund? Should I keep investing in one of them. What would be more beneficial in the long run like 5-10 years?
ETF generally mean (atleast in my understanding) have very less expense ratio and low or moderate liquidity. Problem is in India, ETFs are still at early stage and to sell an ETF you gotta find yourself a buyer. When you purchase a non popular ETF it’s hard to find one to sell.
I think you did fairly well investing into the index.
I’m not recommending here or anything so do your own due diligence ,
If you can and have time to analyse about certain stock and make a future prediction about it, then it’s great. Otherwise, MF are good choice.
Index, flexi cap and a small cap with a 30, 30, 10 percentage and may be the rest 30 in a debt is a good idea.
Everyone says the investment is always based on risk levels. Risk and rewards go together (Saurabh Mukhergea disagrees though). Investment returns take time, so once invested, patience is the hardest problem to deal with. It takes atleast 3 years for certain MFs to show greater gains beyond the deposits. Some may even fail too.
So may be find your inner risk level and base it for your investments.
Always keeping the debt portion to a good amount is a good idea so it could help in emergency though with mediocre or average return.
Again, I’m not recommending or advising on anything , I’m only explaining my understanding.
Not sure of your strategy, but I feel there is a duplication. If you are invested in Index ETF, then you are most likely covering 50 of India top company (nifty 50 etf) or 30 in case of BSE index.
Now when you invest in LargeMid Cap index, this fund invest in 100 Large cap and 150 mid cap fund. So in total 250 stocks. What gain do you expect from this. Yes it could be diversified, but the weightage of individual stocks would be miniscule and even if a dozen of stocks do well, it will not have a major impact.
Also you have duplication as Nifty 50 would be replicated in Largemid Cap Index.
Investing in nifty 50 is ok but this LargeMid Cap is just too much of diversification.
These are my personal views only
As per my knowledge and experience you should not diversify your investments too much, otherwise you will end up making only FD returns from market because whole market reflects GDP of country and our GDP is around 8%
You should be focusing on selective index funds only so you can make around 12%
SIP in the Large-Mid 250 is enough. It’s a simple product with sufficient diversification.
I prefer funds over ETFs because the money is auto-debited and I can track the XIRR of all the funds combined. Although In Kite, even ETFs have an auto debit feature and you can view the XIRR of Individual ETFs.
Thanks for your views.
Thanks I agree with the diversification part.
About strategy, I don’t have any strategy as of now, as you can see the confusion in my question itself 
Thanks, that’s what I was thinking I did wrong.