Your colleague should cut down on his MF fund numbers. Most funds have the same company stock in their porrfolio. So he his paying for the same company again and again. There are utilities available online through which you can find out the duplicates in your portfolio.
Agree about not having too many funds. 5-7 is more than enough to cover most categories of funds. Are there utilities that show duplicate stocks held by the different mutual funds? This is something I've been thinking of doing manually to figure out what all I'm holding but if there's a utility for that, it would be perfect!
You should get a monthly "Common Account Statement (eCAS)" email on your registered email id with details of all financial transactions along with current NAV values and other details.
it is spread automatically in 3 funds. yes i should have spread them out but no worries, this is for 2-3 years only. Should i withdraw now and wait for some big correction ?MF's are not particularly suited for large lump sum investments. I would have spread the 30k across a few funds in multiple transactions or in multiple transactions in the same fund over a period of time.. this is because you can gain advantages by averaging of your price rather than just one big purchase. If the markets drop significantly (actually they're quite over heated at the moment) all your investment of 30k is exposed to the correction.
MF's also provide best returns over a period of 3-5 years. Time is the key ingredient. For horizons less than that, direct equity investments in select good quality stocks are more likely to be better return generators or liquid funds. Growth funds by their very nature need time.
But I'm sure you knew this already
I disagree with you. 30k is not a big amount and I don't think you should invest in multiple schemes. If you buy multiple schemes, your portfolio will have all index funds and you won't be able to beat the index. For 30k, I'll suggest a muticap fund for long term goal. I recommend having maximum of 4 mutual fund schemes in portfolio: liquid, small cap, mid cap and large cap, that's it. Liquid for goals less than 3 years and others for goals greater than 3 years based on your risk appetite.MF's are not particularly suited for large lump sum investments. I would have spread the 30k across a few funds in multiple transactions or in multiple transactions in the same fund over a period of time.. this is because you can gain advantages by averaging of your price rather than just one big purchase. If the markets drop significantly (actually they're quite over heated at the moment) all your investment of 30k is exposed to the correction.
MF's also provide best returns over a period of 3-5 years. Time is the key ingredient. For horizons less than that, direct equity investments in select good quality stocks are more likely to be better return generators or liquid funds. Growth funds by their very nature need time.
But I'm sure you knew this already
I feel your portfolio is very aggressive. But again it all depends on your risk appetite. I'll suggest don't clutter it by purchasing more schemes.
