Thread by @doc_srishti

Today I'll make a thread on how i chose my 5 mutual funds.
I am a retailer and i am learning slowly but the evidence way.
Like in medicine we practice evidence based, same principles i apply to investing.
To learn from Data & evidence.
To understand that #MutualFundsSahiHai

First of all, as a retailer and a non finance background person we really need to understand what are mutual funds and why they are so important for a salaried person who wants to develop a big corpus over the long run

This one video by @PranjalKamra is 👏

I think i relate a lot with @PranjalKamra who talks in simple terms and tries to explain how can we find out the best ones for us.
I also did a course by @rachana_ranade ma'am who's my first guru of financial literacy journey.🙏

Which mutual funds not to chose.
That's again very very important as we fall a trap to bankers and CA's who want their own fayda and ask is to buy mutual funds through them.

Never ever buy through any one- they are the regular mutual funds.
We want direct

Sharing the best videos out there.
@warikoo big fan of you sir, you are giving back to the society in a beautiful way.
How many Mutual Funds to buy ?

@PranjalKamra .

Start first with SIP.
5 are enough.

Now which 5 funds?
It's a big universe. Every house has more than 10 dozens of mutual funds.
And we want only 5.
Remember only 5.
1. Index fund- low cost, low expense ratio. Follows nifty/sensex
I have HDFC index Sensex Plan -
I do weekly SIP through @zerodhaonline COIN app.

2. Flexi cap fund
It gives the house an opportunity to chose MF from any market cap.
I have parag parikh flexi cap.
There are many out there.
We will also see with how to conclude that which one we chose and how ?

3. Thematic funds.
These can be risky but one can chose a thematic fund in the sector they feel is the future of India & Indian Success story.
I have ICICI PRUDENTIAL TECHNOLOGY Fund direct plan.
I believe in Indian IT long term story.

4. Small cap fund
5. Small cap fund
I have 2 small cap funds : Axis small cap & quant small cap.
Small caps are volatile and individual stock investing is risky. But they do give better returns if chosen nicely.
Axis & Quant both are reputed houses.

Now how and where to compare these mutual funds ?
1. ET MONEY
2. GROWW
3. FUNDOO.COM
4. MONEYCONTROL

Let's see Fundoo.com
And understand why i like this.
This was again suggested @rachana_ranade ma'am.

etmoney.com/mutual-funds/e…

If we search on ET it gives us an option to arrange the funds in the order of their return or ET MONEY RANK or Value Research Rating or Fund Size.
After sorting in all these 4 ways. We see that Quant,Nippon,kotak,axis come in top ten of all sorting method

thefundoo.com
Then let me share why i like this site.
thefundoo.com/Compare/845

Let's the comparison of two mutual funds
Axis small cap vs quant small cap
We want to compare growth & direct ones only
I don't want dividends now.
I will do SWP on retirement.

I like how the @theFUNDOOweb simply explains in ticks the comparison of performance, quality, risk, quality and diversity of a fund to a retailer.
After doing a course one can understand the terms of mutual funds like alpha, beta, Sharpe ratio, Jensen Alpha.

Also one can understand the sectors in which the two funds are investing.
To conclude there are many funds in the small cap universe.
I will chose a big house, with good track record, with decently good ratings, less volatility and neither a very high or low AUM.

The returns of mutual funds start showing up at the later parts of the investment horizon.
Don't stop your SIP early.
Have a horizon of atleast 10 years.
And see the magic of compounding spurting beautiful in the end.
Enjoy siping
#joysofcompounding #SIP

It's not that easy to best the index.
Do compare the chosen mutual fund returns to the index and also compare the expenses.
It's surprising many a times.

Expense ratio of index fund
0.4 percent.
Expense ratio of another blue-chip fund
1.68 percent.

This matters over a long run and if a big corpus is being considered.

#evidencebasedinvesting

etmoney.com/mutual-funds/c…
See the returns of a blue chip fund compared to index fund.
😌
Interesting right.
#index ko harana aasan nahi hai.

Also it's good to see & understand the exit load, again that's less on an index fund.
etmoney.com/mutual-funds/c…

That's all for today.
Happy Researching.

It's the most rewarding research.
Once done you just need to do nothing.
Simply nothing
Keys to success: your behaviour around Wealth.
Remember you are here to make your retirement days peaceful.
Focus on your job, skills and happiness❣️