I am a house wife of 46yr age. Wish to invest in stocks as a beginner. How many should i keep? A mix of caps is good? Time period? Wish to start from 5 to 10k only at beginning more stocks/money can add-on gradually as top up or sip. I need to invest through Groww app. I already have MFs portfolio mix of large, mid, small and aggressive hybrid funds with almost equal money value in all caps. Sip is ongoing in all of them. I am holding them since past 3-4yrs. Perception to keep funds is for long term. Same perception should i keep for stocks or they should be redeemed early? Pls. suggest.
The mutual funds you stated already invests directly in stocks,
For example Nippon india large cap invests in 69 stocks like Reliance, ICICIBank, Axis Bank, Bajaj Finance, Infosys, SBI
Here is the full list of 69 stocks it invests.
Your portfolio is already diversified enough, it would be easily having 150+ stocks that you already invest in via these funds.
If you simply keep investing in the stated funds, then also it is perfect.
No need to over-diversify further (this is already way to diversified).
Over-diversification can reduce returns, increase costs, and complicate portfolio management.
Just keep investing in the said funds (you may even reduce 2-3 out of them and focus on big funds only, even that is more than enough for investing).
If one invests in a large number of stocks thinking this will reduce risk and increase returns in long term, it is absolutely incorrect and a classic trap in markets!
Stocks need bit more understanding, start reading books.
One up on wall street by Peter Lynch is a good place to start.
A basic understanding of balance sheet is needed. Zerodha Varsity is decent.
“should i keep for stocks or they should be redeemed early?”
Stocks need even more time than mutual funds. Read about Coffee can portfolio by Robert G. Kirby
Nick Train UK fund manager, gives good advice on how long to keep a stock.
“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” - Paul Samuelson
How many should i keep? A mix of caps is good? Time period?
These will be explained in “One up on wall street”
Watch videos of fund managers like ICICI sankaran naren Kotak nilesh shah, parag parikh rajeev thakkar, old bridge kenneth andrade.
Download HDFC small cap portfolio they churn their portfolio less, we can get an understanding of how many years they hold stocks to produce meaningful returns.