1. Actually, this "complex issue" can
be easily resolved by the individual investor himself, as he alone understands
his specific needs and goals for selecting his funds.
2. What's important is to "know" about Sebi's unique categories and choose only those which would "fit his bill".
3. For instance,
a) Hybrid Aggressive fund is suitable for 25-yr+ retirement corpus due to its auto-balancing mandate (currently 7 funds are 4/5-star).
b) Multicap fund helps weather multiple cycles and volatility across all market caps for meeting 20-yr+ goals (currently 11 funds are 4/5-star).
c) Midcap fund can benefit from our vibrant economy while meeting 15-yr+ goals (currently 6 funds are 4/5-star).
d) Smallcap fund can help achieve outstanding returns to meet 10-yr+ needs (currently 5 funds are 4/5-star).
e) ELSS fund is ideal for long-term tax-saving with 3-yr lock-in of each investment (currently 10 funds are 4/5-star).
4. After this conceptual clarity, an investor can decide the number of categories first and allocate the money which would enable him to reach his respective goals.
5. He can now decide how many funds in each category would "psychologically" satisfy him, (with each AMC offering one fund technically) and then invest his allocated money equally among them through SIPs, instead of "timing" his amounts and funds, so that he doesn't "miss speeding boats" among them.
6. In modern digital era, it is his own call how to "manage" them, but he should avoid frequent churning as it would again amount to "timing" markets.
7. As long as an investor perseveres with his chosen funds for continuation of long-term SIPs, after meticulously selecting them based on sound parameters for meeting his own goals, it's ok.
8. Therefore, for the sake of safety, if he is comfortable in owning and investing equally among "all" 4-and 5-star funds existing in his chosen categories, he may do so, although it's better to select only a few from different AMCs, while avoiding overlapping of stocks, sectors and styles.
9. This strategy enables him to devote optimum time and energy in career enhancement during his earning years, for maximizing savings to increase SIP investments.
10. Even a savvy stock market investor avoids portfolio churning too often, and keeps accumulating shares of same scrips, instead of removal/addition of scrips, till his goals from these scrips are reached.
2. What's important is to "know" about Sebi's unique categories and choose only those which would "fit his bill".
3. For instance,
a) Hybrid Aggressive fund is suitable for 25-yr+ retirement corpus due to its auto-balancing mandate (currently 7 funds are 4/5-star).
b) Multicap fund helps weather multiple cycles and volatility across all market caps for meeting 20-yr+ goals (currently 11 funds are 4/5-star).
c) Midcap fund can benefit from our vibrant economy while meeting 15-yr+ goals (currently 6 funds are 4/5-star).
d) Smallcap fund can help achieve outstanding returns to meet 10-yr+ needs (currently 5 funds are 4/5-star).
e) ELSS fund is ideal for long-term tax-saving with 3-yr lock-in of each investment (currently 10 funds are 4/5-star).
4. After this conceptual clarity, an investor can decide the number of categories first and allocate the money which would enable him to reach his respective goals.
5. He can now decide how many funds in each category would "psychologically" satisfy him, (with each AMC offering one fund technically) and then invest his allocated money equally among them through SIPs, instead of "timing" his amounts and funds, so that he doesn't "miss speeding boats" among them.
6. In modern digital era, it is his own call how to "manage" them, but he should avoid frequent churning as it would again amount to "timing" markets.
7. As long as an investor perseveres with his chosen funds for continuation of long-term SIPs, after meticulously selecting them based on sound parameters for meeting his own goals, it's ok.
8. Therefore, for the sake of safety, if he is comfortable in owning and investing equally among "all" 4-and 5-star funds existing in his chosen categories, he may do so, although it's better to select only a few from different AMCs, while avoiding overlapping of stocks, sectors and styles.
9. This strategy enables him to devote optimum time and energy in career enhancement during his earning years, for maximizing savings to increase SIP investments.
10. Even a savvy stock market investor avoids portfolio churning too often, and keeps accumulating shares of same scrips, instead of removal/addition of scrips, till his goals from these scrips are reached.