My Mutual Fund Portfolio | SIP Investments for Long term | Mutual Fund Returns & Charges #Finance

In this CashNews.co, I’m going to share my mutual fund Portfolio. Let’s see the returns of the mutual funds that I’m holding. For those who want to do new investment, it’s said that long-term SIP investment will give good returns. Bu is it worth

investing in it? It’s also said that many charges will be incurred in it. About its charges and returns, let’s answer all related questions. Greetings! My name is Boosan. You’re watching text-decoration: none;">Finance Boosan. I shared my mutual fund Portfolio last year as well. If you want to know the Portfolio changes in 1 year and its short-term returns, I will provide the link of that CashNews.co above and below. Compare both the

CashNews.cos. I have invested in 9 categories in my Mutual Fund Portfolio. Debt, Gold / Silver. Apart from these, I’m holding 7 categories of Mutual Funds in Equity. The first category is Index Funds. Before looking at Index Funds,

let’s know what Mutual Funds are. If you want to buy individual stocks like TCS, HDFC, Bajaj Finance, etc., to buy these 3 stocks, ₹3000 per TCS unit, ₹1500 per HDFC unit, ₹8000

per Bajaj unit, you might have to invest more than ₹10,000. You wish to keep investing in this monthly. Many people can’t invest ₹10,000 for these 3 stocks. Mutual Funds are baskets having these 3 stocks along with some other stocks. For example, let’s look at a NIFTY 50 fund. It

has Reliance, HDFC, TCS, Infosys and totally 50 companies are packed together. If an investor wants to buy these 50 companies, he will have to spend many lakhs. Alternatively, if he invests in NIFTY50 Index Fund, he can invest in this for just ₹100, ₹500. There are many investors like this. If

a fund manager collects money from all of them and buys these stocks for them, that is called a Mutual Fund. These Mutual Funds are divided into several categories. Stock-based Mutual Funds are called Equity Mutual Funds. Debt Mutual Funds hold

Debt instruments like corporate Bonds and Treasury bills. Other than these, there are Foreign Funds, Gold, Silver funds, etc. The underlying asset of each Mutual Fund category will change accordingly. Equity funds are again divided

into subcategories. There are many such subcategories. In these categories, let’s first look at my Index Mutual Funds. I’m holding NIFTY50 and Midcap150 Index Funds. I have invested in both of these in Navi Fund House’s Mutual Funds. NIFTY50 fund has given more than 30% as XIRR

returns. Absolute returns is around 14%. Looking at Midcap150, it has given more than 50% XIRR and 30% absolute returns. Here, absolute returns are divided into two by saying XIRR. XIRR is the correct metric to know the returns of all Investments. For example, if absolute returns

are ₹134 from ₹100, it means ₹34 Profit. If we compare it with ₹100, it will be 34%. So, if we say how much money has grown, it is called Absolute Returns. But, when we invest in Mutual Funds, we don’t see the growth and returns just after investing one time. We would

have invested different amounts in different intervals and time periods. So, taking all these Investments into account, and calculating the total annual returns, we get XIRR. These XIRR, CAGR, Absolute returns – All investors should know the difference between these. I have

given that CashNews.co link below and above. Please check it out. The interesting thing here is that… we have got more than 30% of annualized returns from NIFTY 50. But, in general, NIFTY 50 will give only 12-12.5% returns. So, let’s see how XIRR has come more than 30%. This chart

indicates NIFTY’s performance over the past year. In this, NIFTY has gone deep down by October. I have invested a lot of lump sum at that point. In fact, I have been doing SIP continuously since May 2022. But, when such dip occurs, we get more returns due to investing more lump sum. So,

usually, instead of stopping our Investments because the market is going down, if we invest more as it goes down, our returns will increase. That’s what this data proves. I have started NIFTY 50 and Midcap 150 in the same day.0 But, MidCap 150 has given a lot of returns

compared to NIFTY 50. The main reason for this is that… Mid Cap and Small Cap have given a significant run-up since March. So, usually, Mid Cap and Small Cap give more returns than Large Cap in a good bull run. But, the 30% and 50% XIRR shown here CAN’T be called sustainable in the long

term. Now, since this rally has happened in the short term, we have got such more returns. In the long term, we can expect 12-15% returns. So, basically by looking at this data, investing in Index funds is not a bad thing. If we invest correctly, we can see good returns. The next category is ELSS

Tax Saver. I have invested in Axis Tax Saver fund for this. In fact, this fund is the oldest fund in my Portfolio. I have been investing in this fund for more than 5.5 years. I HAVEN’T made any significant additions to it in the past 1 year. I’m just continuing my old

Investments. The XIRR of this fund is 14%. Absolute returns are 46%. I started investing in this ELSS category for tax saving. Usually, whichever tax saving instrument you consider, PPF, NPS, Sukanya Samriddhi, whichever you consider, there will be a big lock-in period. The least

lock-in period is only in the ELSS category. The money invested in this fund can be applied for tax exemption in ATC. The next category is Flexicap Mutual Funds. Usually, the fund manager has more flexibility in this category. Large cap, Mid cap, small cap, there is no constraint that it should be

in some proportion. So, fund managers can buy and sell any stock at any time. So that when the opportunity comes, they can participate correctly and generate more returns. In this category, I’m holding 2 Mutual Funds named Kotex Flexicap and Parag Parikh Flexicap. I have been continuously

investing in this Kotex fund for more than 5 years. I recently added Parag Parikh fund. I started investing in this fund almost 1 year ago. After investing for 5 years, I got around 19% XIRR and 78% absolute returns in Kotex fund. I got 25% absolute returns in Parag Parikh fund. XIRR is not shown

for Investments under 1 year. The next category is Large Cap Mutual Funds. I have been investing in Axis Blue Chip fund for more than 3 years. Its XIRR is 15% and its absolute returns is 34%. This fund predominantly invests in growth stocks. The Top holdings in this fund

didn’t perform well for the past 2-3 years. Probably in the next 2-3 years, we can expect good returns. So, I expect this 15% XIRR to be better after 2 years. The next category is Debt Mutual Funds. These 3 funds have given almost the same amount of returns. They have given

5-6% returns. Usually, Debt Mutual Funds give the same amount of returns as Fixed Deposits. Investing in this fund is for Capital preservation. Usually, we invest in Equity Mutual Funds to grow our Capital. But, we invest in this

fund to preserve our Capital. After 2023 budget, Indexation Benefit was removed from Debt Mutual Funds which was a Tax benefit. So, there is not much difference between Debt Mutual Funds and Fixed Deposits. So, I thought Fixed Deposit is better and

stopped investing in Debt Mutual Funds. The next category is Foreign Equity Funds. For this, I invest in U.S Index and a fund in China. In U.S funds, I invest in 3 Nasdaq100 funds and 1 S&P500 fund. There is a particular limit to invest in foreign

Investments through Mutual Funds from India. There is a limit for each fund house. There is also a total limit for all international funds. Since many investors want to invest in foreign funds, this limit will be breached sometimes. When it breaches, the fund houses won’t

accept new Investments. Since new Investments are temporarily paused in Nasdaq 100 funds, I had to choose another Nasdaq 100 fund. Since this Nasdaq 100 fund was also temporarily stopped, again I had to choose another Nasdaq 100 fund. So, I have 3 Nasdaq 100 funds

in my Portfolio. I have been investing in Motilal fund for more than 3 years. Its XIRR is almost 13%. Its Absolute Returns is 34%. Navi Nasdaq 100 fund gave 36% XIRR. and almost 50% Absolute Returns. ICICI Nasdaq investement gave 52% Absolute Returns. In fact, exactly 1 year ago, I

posted a CashNews.co in December saying that it is a once in a decade opportunity in the US. I started investing more in Nasdaq in that period. Exactly after 1 year, I have received more than 50% returns. I have already sold another Nasdaq 100 fund completely. After selling it, I decided to invest

in a Large cap and Blue Chip funds in India. I’m sharing such Portfolio activities and major macroeconomic updates in the Learner’s Member Community. If you are a serious investor, you can use the link in the description or click the join button to join our

Learner’s Member Community. The next foreign fund in my Portfolio is.. Edelweiss Greater China Equity Fund. I have been investing in this fund for the past 1 year. The only negative fund in my Portfolio is this fund. Some major blue chip

companies in China are Alibaba, Tencent, JD. These big companies got 50-70% correction. Fundamentally, nothing has changed in these companies. Because of macroeconomic factors, Chinese government’s bad policies, and due to the tension between the U.S and China, these stocks got significantly

corrected. So, basically, such times are an opportunity. It can be called a make or break. Means, it can either get worse from here.. or we can expect CAGR returns of 20-25% in the future. But the bad thing about this fund is that… its expense ratio is 1.43%. Usually, if the expense ratio is

less than 1%, it is a GOOD Mutual Fund. It will be like losing 1.5% of our returns in the expense ratio. This is not the case with this fund alone. Generally, there are many misconceptions about the expense ratio among investors. Many investors avoid Mutual Funds thinking they will lose their money

in the expense ratio. Usually, when an NAV value of a Mutual Fund is updated, they will deduct the expense ratio daily from it. If we look at the data of a Mutual Fund on a website, we are looking at the returns after the expense ratio is reduced. If it shows more than 15-18% returns after the

expense ratio is reduced, it is a GOOD return. It’s meaningless to treat this expense ratio like a villain and avoiding Mutual Funds. But when choosing a Mutual Fund, if you choose a wrong fund without knowing whether it is a direct or a regular fund, it might be like paying extra 1% expense

ratio unnecessarily. For example, I was talking to a friend recently. He started investing in a regular plan without knowing. The expense ratio was 1% different for the regular plan and the direct plan. This Mutual Fund has grown by 19% in CAGR historically. He has planned to invest in this for the

next 15 years. He planned to invest ₹50,000 monthly. If he invests this in a Direct fund, he might earn ₹5.1 crores in 15 years. Alternatively, if he mistakenly invests in a Regular plan, he might earn ₹4.6 crores after deducting 1%. He would have lost around ₹50 lakhs. So, while choosing a

fund, it is very important to have an expense ratio below 1%. It is also good to choose a Direct Mutual Fund. The next category is Sectoral Mutual Funds. For this, I have invested in 2 Mutual Funds. 1. Tata Digital India Fund 2. UTA Transport Logistics Fund. For the past 1 year, we had good

opportunities in Indian IT stocks. If you look at any IT stock, it has been trading sideways for 2-3 years at the same price range. If we accumulate more in these stocks at such times, we will get GOOD returns during its run-up. In fact in last April, I have posted a short and a post saying that

there is a good opportunity in the IT sector. From that point, IT stocks have given a good run-up. But, it is very challenging to pick each IT stocks individually. For example, consider Wipro stock. It has given 13% returns in this 1 year. Alternatively, if had invested in HCL, returns would have

been more than 40%. Instead, if invested in TCS, 18% returns would have been gained. All this is because these have given a run-up recently. If you had checked Wipro a few days ago, it would have been in negative returns. So, no one can say for sure which among Wipro, Infosys, HCL,TCS will grow.

There is a better alternative. If all these stocks are bundled together, it is a good option to buy that. An option like that is NIFTY IT Index. It is being traded as ITBEES. By buying these ITBEES, you can participate in all the top IT companies in NIFTY. But personally, I prefer Tata Digital

India Fund over ITBEES. The important reason for that is… In ITBEES, the top 3 holdings alone have 80% allocation. NIFTY IT Index totally has only 10 stocks. Out of these, 3 stocks alone have high concentration. Alternatively, if you open Tata Digital India Fund, there are more than 30 IT

stocks. Each stock has a proper distribution. So, we can get good diversification and consistent returns from this fund. I have been investing in this fund since last October. XIRR of this fund is 32%. Absolute returns are 23%. Another sectoral fund in my Portfolio is.. UTI

Transport Fund. I HAVEN’T made any new transactions in this fund in the recent 1 year. In fact, I have taken out all my invested money from this fund. Only my Profit is left. That Profit alone has increased by 77%. XIRR is 27%. That China Fund and these

sectoral funds are high risk, high reward bets. To mitigate this risk, I have invested in a Gold fund and a Silver fund. Both these funds have given only 12% returns. Basically, instead of investing in Gold / Silver, it’s better to invest in

style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs like GoldBEES / SilverBEES. Next category is Small Cap Mutual Funds. In this, I’m holding Axis Small Cap Funds. This fund is a very interesting fund. After booking a 100% Profit, I have got more than

60% absolute returns. Let’s see about this 100% Profit booking with actual data. I started increasing Axis Small Cap Fund significantly from the Covid dip . I kept buying different quantities at different price points. I have accumulated 2600 units in total. For that, I have

invested ₹1,17,000. This ₹1,17,000 has increased to ₹2,30,000 at a point. So, I have withdrawn my invested amount from it. When I withdrew, it looked like selling half of the units. Now, literally, there is no amount in this as my investment. Only the remaining Profits have

increased and given 61% absolute returns. Its current XIRR is above 30%. The main reason I sold this fund is because… Small Cap has given a significant rally and moved to the overvalued zone. At the same point, Large Cap stocks were in the undervalued zone. So, I have sold this fund and

participated in that opportunity. Totally I’m holding more than 15 Mutual Funds in my Portfolio. My total Portfolio returns are 30.52%. If you ask me whether we must hold this many Mutual Funds in a Portfolio, Definitely NOT! But, when I

bought each Mutual Fund, there was a reason for it. In fact by looking at this data, we will think like investing in Mid Cap or Small Cap would give lot of returns. But, after such thing is achieved, it is very easy to say that there will be more returns. No one can be certain about the performance

of any category in future. Also, to create a diversified Portfolio, or to participate in the upcoming opportunities, we might need to hold multiple Mutual Funds. But, if I want to start fresh and completely new, I will eliminate a lot of Mutual Funds from my

Portfolio. For example, I DON’T need these 3 Debt funds. Next, NIFTY 50, Mid Cap 150, and ELSS. I will combine these 3 and invest in a single fund called Large Mid Cap ELSS. So, I would have eliminated a total of 6 funds and added 1 fund. An important reason

for most of the Mutual Fund investors not getting good returns is that… they will stop their Investments when their fund is going down,. After a few days, when they see the performance of that fund, they will complain about the fund sighting bad returns despite showing good

returns in website. Here, the only difference between the fund’s returns and our returns is… only our behavior. If we invest with a proper discipline, and accumulate it in a dip, we can also get good returns. One thing that I learnt in these 5-6 years of investing is that… it

ISN’T a meaningful activity to keep on searching for the best fund. Also, often switching from one fund to the another fund, will make us lose our Profit due to tax and exit load. At the same time, our Portfolio will have more chances of getting cluttered.

Next, a general common question is that… When withdrawing money from Mutual Funds, will there be any charges? As I said earlier, expense ratio adjusts daily in our NAV. So, that won’t be charged upon exit. But there is a parameter called Exit Load. If you exit from a Mutual Fund within

a particular period, they will charge a small percentage for that. For example, I have redeemed 2 funds. One is Kotak Nasdaq fund. When I redeemed this fund, I did not charge any exit load. In another example, I redeemed HSBC small cap fund. For this, I had to pay a small portion as exit load. The

main reason I sold this small cap fund was because… this fund was as L&T emerging business fund before. Since HSBC acquired L&T funds, they swallowed that fund house and converted it to HSBC small cap. So generally, many people think that they can forget about their Mutual Funds after

investing and hope it will grow. But when such fund house changes, or the fund’s investment philosophy changes, we will miss it without noticing it. So, it is GOOD to review our Portfolio periodically once a year. I’m sharing my Mutual Funds, Stocks,

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