Hi, I have been investing 10k SIP since last one year → 6K in ICICI Nifty 50 Index and 4k in Parag Parikh flexi cap… Now i am planning to increase my SIP to 20k. I am confused whether adding nifty next 50 will really beneficial to my porfolio or would go with active large and midcap fund. Need some suggestions on this
which option is a good one?
Option A
ICICI Nifty 50 index - 10k
Parag Parikh flexi cap - 4k
Axis large&midcap - 3k
canara large&midcap - 3k
Option B
ICICI Nifty 50 index - 10k
Parag Parikh flexi cap - 4k
Axis next 50 index fund - 6k
@RajendraPatil @Akash_Shah
1 Like
Nifty 50 and Parag Parikh flexi Cap
These two are enough
3 Likes
https://tradingqna.com/t/highlights-from-spiva-india-scorecard-2021-on-the-performance-of-active-mutual-funds-vs-their-benchmarks/129750?u=raoawesome
If you ask me Mutual funds aren’t that great. If you know the fund manager personally or he has beaten index fund in any of last 3 years then buy MF otherwise you get returns but lose a lot on expense ratio. It’s very difficult to say which fund or fund manager will give good return. Personally mutual funds are old things , now that etfs are there.
Just do DCA to nifty index ETF than doing SIP to all these mutual funds.
3 Likes
If I were you, I would sell all this basket / suitcase of rubbish and invest only in NIFTY ETF.
2 Likes
Nifty bee is the best.
When it falls say 6-7 points, after you buy pledge what you bought & can trade intra day Niftybee both mis sell & buy &take quick profits. ( if yoh dont have fresh funds)
Bankbee is sexy but Nifty bee is some what bounce around to scalp.
Single scrip pledge fee. Unfledge free.
2 Likes
This is logic, but unfortunately most people are destined to lose their money with their intentional mistakes.
Nowadays when friends share their fresh purchase of another mutual fund during conversation, all I reply is “that’s nice.”
1 Like
I think Option B is good. But you can increase Nifty 50 to rs.12k, Parag Parikh & Axis rs.4k each.
1 Like
Hi, the problem i see with ETF’s is buying at NAV’s… most of the time we end up buying at higher NAV’s. Can you tell me how to overcome this prob
Use this. This is what I use. Every 10 seconds it shows INAV. Just make sure ask and bid price are nearby.
There is something called INAV. Refer this https://mf.nipponindiaim.com/FundsAndPerformance/Pages/INAV.aspx
Always place LIMIT ORDER!!. refer above website and see ask and bid price compare. I actually bought units 0.15 points less than INAV sometimes. Never buy at market open or first 1 hour of market open or last 1 hour before close.
If Market trades at premium wait for 2 days. Market makers will sell/create units to bring price to market value. Frankly ETF trading at premium is very short lived.
3 Likes
Well I am gen z and working in IT where everything self learnt self taught using internet. The generation before has crazy levels of herd mentality and too bought by degrees believing in school & college. They would rather listen to a guy wearing suits and boots from AMC MF blabberring a abridged version of zerodha varsity , than actually reading zerodha varsity themselves. Funny thing is most of these AMC MF representatives never tell anything about entry load, exit load, expense ratio nor about the past history of fund manager.
Yeah, it’s a fad now saying you bought MF 
. When I said I don’t do SIP rather do DCA on nifty ETF and gold ETF with a portfolio of equity to gold ratio of 80:20, I get very weird looks.
2 Likes
I would recommend nifty ETF 50 based historic data but it’s your choice.
Well think of ETF as a basket of stocks. You are just buying that basket. Just really like index fund. In mutual fund your money is taken by fund manager and he pools it buys the nifty 50 stock and gives you the net asset value. In ETF AMC creates a basket of nifty 50 stock which you buy. Either you buy directly from AMC or but from exchange This basket is traded on the exchange.
1 Like
For the long term, I would hesitate to put my money in active funds. @raoawesome mentioned why
For ETFs, apart from Nifty50, I am not sure about liquidity . I am not an expert in it, but the zigzag pattern in daily charts unnerves me. My personal preference is to use Passive funds.
if you want majorly large cap and some midcap exposure you can consider some combination of following.
- Nifty 50 index => large cap => fund house of your choice
- Nifty Next 50 Mutual => majorly large cap and some amount of mid cap ==> fund house of your choice
- Low Volatility index => good mix of large and Mid cap => at least two fund houses offer it,
- Nifty 200 Momentum 30 index => high risk high reward mix of large and Mid cap => at least two fund houses offer it
One of the ways to look at managing a portfolio is something like planting a sapling and watching it grow. over the years.
My suggestion would be: Start investing only with what you are confident of, don’t experiment too much apart from maybe yearly re-balance in the initial few years.
3 Likes
Don’t go with Nifty Next 50. It’s not a good index. 15% weightage is to overpriced Adani stocks. And last 5 year returns of Nifty Next 50 is not good.
1 Like
Niftybee daily 25-40 lakh shares traded.
Bankbee daily 4-7 lakh shares traded.
I don’t trade any other ETF as iam trading not investing.
( Opening high & low print is scary ofcourse)
I do play this “opening print” lottery daily.
GTT cnc sell higher than expected.
( Should have cdsl authorisation before 9am in place)
GTT cnc BUY but bidding much lower than expected open
1 out 10 attempts i hit the lottery.
If the gtt buy does not get executed by 9.16am ,i cancel cnc buy order even if triggered ( cnc full margin ),then place a realistic mis buy.
Cnc gtt sell triggered but not executed,i modify for a realistic sell price i think i can buy it back intraday.
I think it’s a good idea to think about adding Nifty 50 to your portfolio. Truly, you should analyse the market again and see what works. Good luck!
2 Likes
One NIFTY 100 index fund is enough (HDFC/IDFC/ICICI NIFTY 100)
1 Like