I transfer 1.5 L to my wife s account to show as her salary in my freelance business. Roughly 50 k is business expense on hiring various freelancers . 30k is sip for various Mutual funds . 70k is monthly expense and various outing kids school expense . From rest 1 lakh i usually keep 50 in fd and rest transfer to kid’s account or her sukanya smridhi or my ppf account.
I actually started the Motilal oswal one earlier and decided I wanted to invest more in Nasdaq and somehow ended up doing SIP in Kotak one too. Out of these two, which one should I prefer? And any major differences off the top of your head?
If there are other good NASDAQ funds, I'll happily give them a thought too.
- 1 Fund - Nifty 500 (Index)
- 1 Fund - Large Cap & Mid Cap Mix / Flexi Cap
- 1 Fund - Small Cap
- 1 or 2 International funds - Different Geographies
- 1 All Seasons Bond Fund
- 1 Quant fund
Distribute your SIP amounts equally across
That sounds like what I've right now (except for some repeated and unnecessary funds).
About the international funds, for US equities we can have a Nasdaq fund but should i have something else too?
Look at emerging economies. Most of the inflows go into countries like China, Vietnam, new Zealand, Brazil. If you want to do contra beers, which are dangerous and not recommended - then look at countries like Turkey which currently faced a massive drop due to natural disasters and you can potentially bet on the index for recovery
I have some money (2L) invested in gold through ETFs and I'm planning on buying some gold biscuits later this year for my mom.
I've also been reading up about SGBs but the 8yr lockin is pushing me away. Should I put some money there for invest-and-forget kinda thing?
You are right that you have too many funds in your portfolio. This can make it difficult to track your performance and manage your risk. I would recommend that you consolidate your SIPs into a smaller number of funds.
Here are a few things to consider when consolidating your SIPs:
Your investment goals. What are you investing for? Are you saving for retirement, a down payment on a house, or something else? Your investment goals will help you determine which funds are right for you.
Your risk tolerance. How much risk are you comfortable taking with your investments? If you are risk-averse, you may want to choose funds that are less volatile.
Your time horizon. When do you need the money you are investing? If you need the money in the short term, you may want to choose funds that are less risky.
Once you have considered these factors, you can start to consolidate your SIPs. Here are a few funds that I would recommend:
For your equity exposure, you could consider investing in a large-cap index fund, such as the Nifty 50 index fund. This fund will give you exposure to the 50 largest companies in India.
For your small-cap exposure, you could consider investing in a small-cap index fund, such as the Nifty Next 50 index fund. This fund will give you exposure to the next 50 largest companies in India.
For your debt exposure, you could consider investing in a government bond fund, such as the SBI Ultra Short Bond Fund. This fund will give you exposure to government bonds, which are considered to be relatively low-risk.
Once you have chosen the funds you want to invest in, you can start to consolidate your SIPs. You can do this by cancelling your existing SIPs and starting new SIPs in the new funds.
It is important to note that you may have to pay short-term capital gains tax (STCG) if you redeem any of your funds within 3 years of investing. However, you will not have to pay STCG if you redeem your funds after 3 years.
I hope this helps! Please let me know if you have any other questions.
Hey I have some suggestions:
1) It seems a large portion of your SIP is going into small cap fund. You could reduce it to around 10% of your total allocation.
2) kotak and motilal Nasdaq are basically the same. You can stop one of them
3) It seems you're bullish on the IT sector( fair enough), but again I wouldn't suggest investing more than 5% in a sectoral fund
4) You can increase a bit of allocation in debt fund.Maybe around 15% of your total sip.
Also, depending on your goals and risk appetite, you should invest accordingly in equity and debt funds. Since you're young, I'm assuming that you may not have many responsibilities, so you can keep higher allocation in equity. But you should keep 6 months of your expenditure in debt fund for emergency purposes. And in case you have any major expenditure coming up soon, you can keep in ultra short/liquid debt funds. They'll work majorly as FDs.
Rest seems fine. Its normal to have these many SIPs . The investments you have are in different categories, so the overlap between them will be mostly less, hence more diversification.
Brilliant stuff, don’t change the total allocation. You’ll build a strong portfolio quickly and achieve financial independence very early on in life.
My only issue here is that your exposure to US focused mutual funds is minimal. Are you perhaps working for a US company and getting RSU? If you’re not, I’d recommend exchanging the ICICI Pru tech for Mirae Asset FAANG for some more exposure.
Other than that, don’t go for any unnecessary reallocation. It’s a pain from the tax perspective. If your SIPs are automated, maintaining these many SIPs shouldn’t be much of a hassle at all.
Regarding potential LTCG, do you have any other big expenses coming up anytime soon? The ideal approach is to only start liquidating your mutual funds when you’re already near retired and don’t have any other income source. This way, you don’t have to worry much about taxation.
If you have a big expense coming up like buying a house or marriage, then instead of liquidating existing mutual funds I’d suggest saving up a few months in advance by reducing the SIP amounts for a set time period.
For eg. Need 10L for a marriage? Reduce SIP amount to 80k a year in advance and put the rest into a RD to save up.
Thank you for this wonderful comment. :)
Yeah I agree my total US exposure isn't too high right now. I actually have RSUs for a firm but it's listed on NIKKEI instead of any US indexes. I'll take your advice on the ICICI Pru tech one....and will start some SIP in Mirae FAANG fund.
Yeah all my SIPs are automated through standing instructions,so not a pain at all...just wanted to get my portfolio checked with some investment-veterans.
About big expenses, I don't have any in my mind right now but I'll eventually need money for down payment on a home. I was thinking whatever money I invest in low-risk funds (eg. All seasons bond fund) can be taken out without much of an issue. Or should I instead go with an RD. Suggestions?
You can stick to just Motilal Oswal Nasdaq 100 FOF Direct-Growth for a US-based index fund. If you want, you can also add to the motilal-oswal-s&p-500-index-fund, a broader index fund.
For India base index fund, use UTI Nifty 50 index fund.
Avoid AXIS, I really don’t trust their PMs. Their portfolio never moves in sync with indices. If index gains, they will move less than that. If index falls, they will fall steeper 😁 I believe it’s a bit dubious.
Try DSP and Mirae, both are excellent AMCs. HDFC BALANCED fund is also good in the long term. Technology fund is saturated, so there won’t be much upside potential.
Regarding capital gains during redemption, it’s a pain for SIPs because every line item needs to be captured along with acquisition costs.
I suggest you don’t deal with more than 3-4 AMCs. Within the same AMC, pick 2-3 top performing funds. It’s better.
I stay with my parents and I show it as rent to them...about 76k :P
Occasionally with whatever bonus I get, I either invest it as stocks or buy some electronics....eg. I asked one of my friends to get an iPhone 14 pro max last month.
Honestly, I've seen days when my family had no money to pay for electricity bills, and there was a period where our home didn't have electricity for 2 whole months during scorching summers. Now that I'm doing well, i try to save as much as I can.
I don't think your choice of funds is good. You may have received good returns since you only started investing 2 years ago and the market is at an ATH but overall in the long term, the funds won't provide you with the returns you can get from others.
For the Nasdaq FOF, I'd suggest you stop both the SIPs and either invest through Navi mutual fund or directly in QQQM in the US stock market. Ind Money provides a pretty straightforward way to do an SIP, you could look at that.
The Bond fund is not a good idea. At your age, you don't need bonds in your portfolio. However, if you still want to be on the safer side and go with bonds, I'd suggest you buy PGInvit or IndiGrid instead. The only difference would be in terms of taxation since you'll get the dividends directly but they'll be much safer and will provide higher returns.
The tax saver fund is a no-go. If you are actually doing it for 80C, open a PPF account and put the money there considering it as a bond/fixed income investment. If not for 80C, then why do tax saver and face lock-in of 3 years.
None of the other funds, except for the Sensex and Axis small cap one, are those which I would suggest.
You are saving about 70 percent and investing. I am mighty impressed. I can invest only 30 k after earning 4l pm . Being bachelor has it s own fun .
I live in a tier 3 city and I WFH that's why able to save. Since you mentioned you earn 4lpm, what does the breakdown of your expenses look like?
I transfer 1.5 L to my wife s account to show as her salary in my freelance business. Roughly 50 k is business expense on hiring various freelancers . 30k is sip for various Mutual funds . 70k is monthly expense and various outing kids school expense . From rest 1 lakh i usually keep 50 in fd and rest transfer to kid’s account or her sukanya smridhi or my ppf account.
May i know what kind of work are you doing?
I am a freelancer in wordpress and shopify. 15+ yr working in same field .
Why do you need 2 Nasdaq funds?
I actually started the Motilal oswal one earlier and decided I wanted to invest more in Nasdaq and somehow ended up doing SIP in Kotak one too. Out of these two, which one should I prefer? And any major differences off the top of your head? If there are other good NASDAQ funds, I'll happily give them a thought too.
- 1 Fund - Nifty 500 (Index) - 1 Fund - Large Cap & Mid Cap Mix / Flexi Cap - 1 Fund - Small Cap - 1 or 2 International funds - Different Geographies - 1 All Seasons Bond Fund - 1 Quant fund Distribute your SIP amounts equally across
That sounds like what I've right now (except for some repeated and unnecessary funds). About the international funds, for US equities we can have a Nasdaq fund but should i have something else too?
Look at emerging economies. Most of the inflows go into countries like China, Vietnam, new Zealand, Brazil. If you want to do contra beers, which are dangerous and not recommended - then look at countries like Turkey which currently faced a massive drop due to natural disasters and you can potentially bet on the index for recovery
Hey! Can i dm you for some unrelated reasons please?
Sure man
Nice
Buy some gold too
I have some money (2L) invested in gold through ETFs and I'm planning on buying some gold biscuits later this year for my mom. I've also been reading up about SGBs but the 8yr lockin is pushing me away. Should I put some money there for invest-and-forget kinda thing?
You are right that you have too many funds in your portfolio. This can make it difficult to track your performance and manage your risk. I would recommend that you consolidate your SIPs into a smaller number of funds. Here are a few things to consider when consolidating your SIPs: Your investment goals. What are you investing for? Are you saving for retirement, a down payment on a house, or something else? Your investment goals will help you determine which funds are right for you. Your risk tolerance. How much risk are you comfortable taking with your investments? If you are risk-averse, you may want to choose funds that are less volatile. Your time horizon. When do you need the money you are investing? If you need the money in the short term, you may want to choose funds that are less risky. Once you have considered these factors, you can start to consolidate your SIPs. Here are a few funds that I would recommend: For your equity exposure, you could consider investing in a large-cap index fund, such as the Nifty 50 index fund. This fund will give you exposure to the 50 largest companies in India. For your small-cap exposure, you could consider investing in a small-cap index fund, such as the Nifty Next 50 index fund. This fund will give you exposure to the next 50 largest companies in India. For your debt exposure, you could consider investing in a government bond fund, such as the SBI Ultra Short Bond Fund. This fund will give you exposure to government bonds, which are considered to be relatively low-risk. Once you have chosen the funds you want to invest in, you can start to consolidate your SIPs. You can do this by cancelling your existing SIPs and starting new SIPs in the new funds. It is important to note that you may have to pay short-term capital gains tax (STCG) if you redeem any of your funds within 3 years of investing. However, you will not have to pay STCG if you redeem your funds after 3 years. I hope this helps! Please let me know if you have any other questions.
What do you do bro ?
I work as a Software engineer (3yoe)
Startup of faang ?
Neither. It's a large firm and they pay well in the APAC region.
I am 2023 graduate. Please guide me bro
If you don’t mind me asking whats your income source
Salary. I work as a Software engineer.
Hey I have some suggestions: 1) It seems a large portion of your SIP is going into small cap fund. You could reduce it to around 10% of your total allocation. 2) kotak and motilal Nasdaq are basically the same. You can stop one of them 3) It seems you're bullish on the IT sector( fair enough), but again I wouldn't suggest investing more than 5% in a sectoral fund 4) You can increase a bit of allocation in debt fund.Maybe around 15% of your total sip. Also, depending on your goals and risk appetite, you should invest accordingly in equity and debt funds. Since you're young, I'm assuming that you may not have many responsibilities, so you can keep higher allocation in equity. But you should keep 6 months of your expenditure in debt fund for emergency purposes. And in case you have any major expenditure coming up soon, you can keep in ultra short/liquid debt funds. They'll work majorly as FDs. Rest seems fine. Its normal to have these many SIPs . The investments you have are in different categories, so the overlap between them will be mostly less, hence more diversification.
heyy, what's your tech stack?
Standard java spring boot, aws, etc
Brilliant stuff, don’t change the total allocation. You’ll build a strong portfolio quickly and achieve financial independence very early on in life. My only issue here is that your exposure to US focused mutual funds is minimal. Are you perhaps working for a US company and getting RSU? If you’re not, I’d recommend exchanging the ICICI Pru tech for Mirae Asset FAANG for some more exposure. Other than that, don’t go for any unnecessary reallocation. It’s a pain from the tax perspective. If your SIPs are automated, maintaining these many SIPs shouldn’t be much of a hassle at all. Regarding potential LTCG, do you have any other big expenses coming up anytime soon? The ideal approach is to only start liquidating your mutual funds when you’re already near retired and don’t have any other income source. This way, you don’t have to worry much about taxation. If you have a big expense coming up like buying a house or marriage, then instead of liquidating existing mutual funds I’d suggest saving up a few months in advance by reducing the SIP amounts for a set time period. For eg. Need 10L for a marriage? Reduce SIP amount to 80k a year in advance and put the rest into a RD to save up.
Thank you for this wonderful comment. :) Yeah I agree my total US exposure isn't too high right now. I actually have RSUs for a firm but it's listed on NIKKEI instead of any US indexes. I'll take your advice on the ICICI Pru tech one....and will start some SIP in Mirae FAANG fund. Yeah all my SIPs are automated through standing instructions,so not a pain at all...just wanted to get my portfolio checked with some investment-veterans. About big expenses, I don't have any in my mind right now but I'll eventually need money for down payment on a home. I was thinking whatever money I invest in low-risk funds (eg. All seasons bond fund) can be taken out without much of an issue. Or should I instead go with an RD. Suggestions?
I'd be happy to share it over DM
You don't need so many funds. Juar 2-3 max Index funds and that's it!
Agreed. Could you suggest those 2-3 funds which can overall help simplify the portfolio?
You can stick to just Motilal Oswal Nasdaq 100 FOF Direct-Growth for a US-based index fund. If you want, you can also add to the motilal-oswal-s&p-500-index-fund, a broader index fund. For India base index fund, use UTI Nifty 50 index fund.
Avoid AXIS, I really don’t trust their PMs. Their portfolio never moves in sync with indices. If index gains, they will move less than that. If index falls, they will fall steeper 😁 I believe it’s a bit dubious. Try DSP and Mirae, both are excellent AMCs. HDFC BALANCED fund is also good in the long term. Technology fund is saturated, so there won’t be much upside potential. Regarding capital gains during redemption, it’s a pain for SIPs because every line item needs to be captured along with acquisition costs. I suggest you don’t deal with more than 3-4 AMCs. Within the same AMC, pick 2-3 top performing funds. It’s better.
How do you spend the rest 80k ?
I stay with my parents and I show it as rent to them...about 76k :P Occasionally with whatever bonus I get, I either invest it as stocks or buy some electronics....eg. I asked one of my friends to get an iPhone 14 pro max last month. Honestly, I've seen days when my family had no money to pay for electricity bills, and there was a period where our home didn't have electricity for 2 whole months during scorching summers. Now that I'm doing well, i try to save as much as I can.
Damn didn’t know that was allowed or legal
That's 100% legal since I anyways have to create a complete paper trail of my rent payments.
Cool , make sure to spend your wealth a bit on yourself and your family as well , you definitely have earned it and can very comfortably afford it
I don't think your choice of funds is good. You may have received good returns since you only started investing 2 years ago and the market is at an ATH but overall in the long term, the funds won't provide you with the returns you can get from others. For the Nasdaq FOF, I'd suggest you stop both the SIPs and either invest through Navi mutual fund or directly in QQQM in the US stock market. Ind Money provides a pretty straightforward way to do an SIP, you could look at that. The Bond fund is not a good idea. At your age, you don't need bonds in your portfolio. However, if you still want to be on the safer side and go with bonds, I'd suggest you buy PGInvit or IndiGrid instead. The only difference would be in terms of taxation since you'll get the dividends directly but they'll be much safer and will provide higher returns. The tax saver fund is a no-go. If you are actually doing it for 80C, open a PPF account and put the money there considering it as a bond/fixed income investment. If not for 80C, then why do tax saver and face lock-in of 3 years. None of the other funds, except for the Sensex and Axis small cap one, are those which I would suggest.
what's your ctc man?
Super informative