A reader says, “I am currently 37, married (no kids yet), based out of Bangalore and, as usual, a very late starter to equity investing. My debt portion (PPF, EPF, FDs) is much higher than equity, and all I am trying is to catch up and make debt to equity 50:50 and regularly rebalance once a year (as you have suggested in your multiple videos)”.
“I have been investing in Index Funds since 2020 in 3 funds: HDFC Index Fund Nifty 50 (Direct) – 68k per month, UTI Nifty Next 50 Index Fund (Direct) -10k per month, ICICI Prudential Nifty Midcap 150 Index Fund – 7k per month”
“I started an ICICI Prudential Bluechip fund before. I stopped after investing close to 60k a long time ago, and this is currently valued at 92k. I have not withdrawn it and have kept it as it is”.
“I know you have warned against Nifty Next 50 and Midcap 150 multiple times on your website/YouTube, but I could not stop myself (FOMO, I admit). Anyways all of them are positive currently and I have a total corpus ~35 lakhs. I intend to continue this and increase the SIP as my salary increases”.
“My question” I regularly see low volatility investing being talked about in mutual funds (YouTube) and how, among the four factors in index funds, low volatility index funds are the safest for a common man like me”.
“I have watched some YouTube videos on this: Nifty 100 low volatility 30 index, and it seems to perform better in all scenarios compared to Nifty 50 and Nifty next 50”.
“Should I discontinue SIP (not withdraw) in at least two of the three funds, i.e. shift to a Nifty 100 low volatility 30 index fund and stop the Nifty 50 and Nifty Next 50 and combine the 78k into this single fund?”
“Is it worth the hassle? Is it a good way of decluttering my portfolio and moving to 1/2 equity funds at most with SIP? Or should I continue as it is? As you suggested, I want to continue with ‘peaceful investing’ as I have been doing for the last 4.5 years, and I would love to listen to your thoughts on this”.
Peaceful investing refers to focusing on the right priorities – having clear goals and goal targets, asset allocation targets, and aiming for conservative returns sufficient to attain our financial goals.
The choices of equity or fixed-income products are secondary. Active or passive investing is secondary. The market cap spread of the equity portfolio is secondary. Factor-based funds or broad market index funds are secondary.
FOMO is the enemy of peaceful investing. If we keep chasing every shiny investment idea, our portfolio will be messy. I think you should come to terms with the fact that some other product theme or idea will always be better than what we hold, and it is not practical to sample all the pies in a bakery simultaneously.
If active funds are subject to fund manager risk. Factor-based funds (and broad market passive funds) are subject to stock basket curation risks. The data we have on factor funds in India is extremely limited. So, it is incorrect to assume that low-volatility investing will always fare better than investing in the Nifty or Nifty Next 50. Everything is subject to ups and downs with unknown periodicity.
Of course, you can invest in a low-volatility fund, but do so with the full understanding that it could start underperforming Nifty 50 anytime. In any case, aim for a large cap-oriented equity portfolio to reduce risks.
We believe the best course of action for you is to stick with your existing funds and focus on increasing investments, aligning your asset allocation with your target and leaving your portfolio on auto-pilot with a 30-minute review once a year. Staying away from personal finance content (including freefincal) will help you stay the course.
Do share this article with your friends using the buttons below.
🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 7000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! ⇐ More than 2,500 investors and advisors use this!
Track your mutual funds and stock investments with this Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds and ETF screeners and momentum, low-volatility stock screeners.
Podcast: Let’s Get RICH With PATTU! Every single Indian CAN grow their wealth!
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
🔥Now Watch Let’s Get Rich With Pattu தமிழில் (in Tamil)! 🔥
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit ‘reply’ to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter(X), Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our new book for kids: “Chinchu Gets a Superpower!” is now available!
Most investor problems can be traced to a lack of informed decision-making. We made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So, in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it, as well as teaching him several key ideas of decision-making and money management, is the narrative. What readers say!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. – Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Do you want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.
Your Ultimate Guide to Travel
This is an in-depth dive into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)
