Wrong sub for mutual fund advice. Real advice would be to pay a financial planner to analyse and reduce the overlap while also reducing tax liability. The general rule most people follow is keeping 2-3 funds and maybe 1 thematic fund.
DIY tip: You can export all of their holdings in an Excel side by side and see where you can keep 2-3 mutual funds so you don't invest in two funds who are after all investing in the same stocks.
Level 2 of this would be to calculate exit load/tax etc and decide where to SWP/Transfer holdings from.
I'm sure you can find tons of tools online that take in the MFs and computes overlap, among other metrics. It's not necessarily a bad thing, but increases concentration risk
As to how to avoid them, the easy way would be limit yourself from holding too many funds in the same category
I don't deal with active mutual funds much so I'm sure some one more knowledgeable here can pitch in help you out. I just do Nifty 50 + nifty next 50 + one flexi cap
All the best!
OP with 39, you still have risk appetite. I'll suggest you to move to 1 flexicap category and 1 midcap category fund. 2 funds are sufficient. For ELSS you can add 1 more if you want.
Consolidation will depend on your age, goals, and risk appetite.
But a couple of things are definitely there, no matter what and how you do consolidation:
- Combine all Nifty50 & Sensex Index funds into any one fund.
- Pick any two liquid fund and park all liquid money in those two funds. If you choose a mid/small cap fund from a certain fund house, try keeping in their liquid fund so that you can do a STP if need be, if you plan to.
- You could also choose to move out of the mid and small cap index funds and put into good actively managed funds. There, FMs ability to beat the index comes really into play. For large caps, index is enough.
Why would you want to consolidate? Having even 30 funds for this amount would be fine because most funds don't always perform in the top 10 in a few years.
Have similar MF portfolio size and similar returns as you. Was overly diversified earlier. Able to bring the funds down to a more comfortable level.
Couple of pointers -
1. Since your portfolio is skewed towards some funds, I assume those are the once you have conviction on. For the equity mutual funds with lesser amount harvest 1 lakh gains and reinvest into similar category in the conviction bucket. Eg - Sell PGIM flexi and invest in Parag Parikh flexi.
2. Ideally you should consolidate your Index investments as well, but only do that in the year you can sell them without incurring LTCG (by harvesting upto 1 Lakh profit).
3. Your earlier posts hint you also have/had FDs. Liquid funds or any debt fund bought after 1 Apr 2023 are taxed at slab. At your income that should be about 40% so even if they give 7% return, you only get to keep 4%, which is pathetic.
Alternate for this that I use is investing in Arbitrage funds which are as safe as debt funds but taxed like Equity funds. They too have been giving ~7-8% return for past 2 years but with 10% taxation leave a lot in your pocket.
4. With the SEBI bans, your ability to invest internationally is very limited. Instead of going via FOF Mutual funds route (which are again taxed at slab), invest directly via IndMoney, Interactive Broker (preferred).
5. A big chunk of your portfolio is tied up in GOOG, I understand it is one of the FAANG and has given above average returns so you may be inclined on holding it. But same can he said for others in FAANG. So may be worth selling some RSU and diversifying into other high growth US based stocks.
There is a lot more that I see I can suggest. DM if you want to connect.
r/personalfinanceindia
That sub doesn't allow images in post. Started there and came here
This sub allows...https://www.reddit.com/r/mutualfunds/s/dc61S4yR0T
Wrong sub for mutual fund advice. Real advice would be to pay a financial planner to analyse and reduce the overlap while also reducing tax liability. The general rule most people follow is keeping 2-3 funds and maybe 1 thematic fund.
DIY tip: You can export all of their holdings in an Excel side by side and see where you can keep 2-3 mutual funds so you don't invest in two funds who are after all investing in the same stocks. Level 2 of this would be to calculate exit load/tax etc and decide where to SWP/Transfer holdings from.
Is there a good sub for this for India. The one I am in is not allowing images in post.
What is overlap newbie here
Same stock across different mutual funds
Brother how do I identify them , is there any easy way to avoid overlapping
I'm sure you can find tons of tools online that take in the MFs and computes overlap, among other metrics. It's not necessarily a bad thing, but increases concentration risk As to how to avoid them, the easy way would be limit yourself from holding too many funds in the same category I don't deal with active mutual funds much so I'm sure some one more knowledgeable here can pitch in help you out. I just do Nifty 50 + nifty next 50 + one flexi cap All the best!
How/where to look for financial planners?
Search for sebi registered fee only planner https://freefincal.com/list-of-fee-only-financial-planners-in-india/
Your age? How to consolidate in 4-5 mfs depends on that
Turning 39 in June.
What's the age of the portfolio?
Little above 2 yrs
OP with 39, you still have risk appetite. I'll suggest you to move to 1 flexicap category and 1 midcap category fund. 2 funds are sufficient. For ELSS you can add 1 more if you want.
Consolidation will depend on your age, goals, and risk appetite. But a couple of things are definitely there, no matter what and how you do consolidation: - Combine all Nifty50 & Sensex Index funds into any one fund. - Pick any two liquid fund and park all liquid money in those two funds. If you choose a mid/small cap fund from a certain fund house, try keeping in their liquid fund so that you can do a STP if need be, if you plan to. - You could also choose to move out of the mid and small cap index funds and put into good actively managed funds. There, FMs ability to beat the index comes really into play. For large caps, index is enough.
You don’t need so many funds. Just get 1. Nifty50 Index 2. Mid Cap / Flexi Cap 3. Small Cap 4. +/- ELSS if you use old tax regime
Just these will make a Crorepati ???? I'm a Clg student just thinking bout starting Got no idea 😕
Just do SIP in these things. You have to allow for the compounding to happen. It happens after 5 years
Lmao my portfolio looks exactly like yours
Why would you want to consolidate? Having even 30 funds for this amount would be fine because most funds don't always perform in the top 10 in a few years.
It's just too much in the app that's all
What app is this? Looks kinda nice
Groww app name
Definitely too many funds. I'd not keep more than 6, covering all aspects - debt, liquidity,equity, hybrid etc.
bro monthly kitna sip karre ho?
Have similar MF portfolio size and similar returns as you. Was overly diversified earlier. Able to bring the funds down to a more comfortable level. Couple of pointers - 1. Since your portfolio is skewed towards some funds, I assume those are the once you have conviction on. For the equity mutual funds with lesser amount harvest 1 lakh gains and reinvest into similar category in the conviction bucket. Eg - Sell PGIM flexi and invest in Parag Parikh flexi. 2. Ideally you should consolidate your Index investments as well, but only do that in the year you can sell them without incurring LTCG (by harvesting upto 1 Lakh profit). 3. Your earlier posts hint you also have/had FDs. Liquid funds or any debt fund bought after 1 Apr 2023 are taxed at slab. At your income that should be about 40% so even if they give 7% return, you only get to keep 4%, which is pathetic. Alternate for this that I use is investing in Arbitrage funds which are as safe as debt funds but taxed like Equity funds. They too have been giving ~7-8% return for past 2 years but with 10% taxation leave a lot in your pocket. 4. With the SEBI bans, your ability to invest internationally is very limited. Instead of going via FOF Mutual funds route (which are again taxed at slab), invest directly via IndMoney, Interactive Broker (preferred). 5. A big chunk of your portfolio is tied up in GOOG, I understand it is one of the FAANG and has given above average returns so you may be inclined on holding it. But same can he said for others in FAANG. So may be worth selling some RSU and diversifying into other high growth US based stocks. There is a lot more that I see I can suggest. DM if you want to connect.
U have 2.12 cr portfolio and u need free advice . Very strange
Oh dear! DM me for advice. Fair Warning: What I will tell you will be a bitter pill.