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I cannot predict the next 10 years, but here are the figures for the last 5 years and 10 years from VR:
Fund category returns 5Y/10Y
Large Cap 15.60/10.06
Multi Cap 18.72/12.04
Mid Cap 24.93/13.91
Small Cap 30.08/15.05
Balanced 16.64/11.12

Pradeep

Thats still 40% higher:)
We are talking about only 30% allocation to midcap not 100%.

I am talking about 10 year differences between multi cap and small caps. Rs. 10,000 per month at 12% would grow to 23,23,391 and at 15% would grow to 27,86,573.

That is approx. 20% more with a lot more risk considering small caps.

Pradeep

Please clarify.

What is the difference between switch from Fund A to Fund B
v/s
Redeem Fund A and then invest / buy Fund B?

https://www.valueresearchonline.com/....asp?str=20677

https://www.personalfinanceplan.in/m...-of-mf-scheme/

Pradeep

Yeah but original discussion started with Large Caps in mind and not the Multi Cap. Multi caps will have allocation to Mid/Small cap hence superior returns.
Lets agree to disagree on this one.

The original discussion was to have one large cap, a balanced fund, and two multi caps and not to have more than 30% exposure to mid caps.

I agree that a 5% to 6% difference​ in returns between large​ caps and small caps over 10 years results in overall 40% better appreciation as the previous calculations show. I have absolutely no arguments about that if that is what you are inferring.

I don't have anything against small caps. Each market cycle has its own flavours -- sometimes large caps and other times, mid caps and small caps. For the last 3-4 years, mid caps and small caps are doing well. You never know when the tide will turn.

I raised a concern only because the investor we were discussing about had no exposure to large caps or balanced funds. I still stick to my premise that over 30% exposure to mid caps and small caps is risky though they offer superior returns.

I rest my case. To each their own. I understand that risk appetite differs from person to person. Returns is just one parameter. There are so many other things you have to evaluate before buying a fund.

Pradeep

I finally got an MF Utilties account. I can now buy almost all direct funds (except Mirae) without paying any brokerage or yearly fees. This works as a single interface to buy any direct fund without having to visit multiple sites. Coin Zerodha also provides this facility, but they charge Rs. 600 yearly as demat charges and a flat fee. Also, they don't have all the fund houses on board yet.

https://zerodha.com/z-connect/tradez...-fund-platform

What is MF Utilities?

MF Utilities India Pvt Ltd (MFUI) is the Mutual Fund Industry’s “Shared Services” initiative formed by the Asset Management Companies (AMCs) of SEBI registered Mutual Funds under the aegis of AMFI, with an objective of investor empowerment, distributor / RIA convenience, consolidation of information to various agencies, operational efficiency for RTAs and benefits to AMCs, thereby benefitting all stakeholders in the industry.

https://www.mfuindia.com/

How do you start?

https://www.mfuindia.com/CANOptions

Though I opted for a completely electronic eCan, mine was changed to partially electronic eCAN at their discretion. I had to courier the prefilled form and supporting documents to their HQ. It took around 3 weeks.

I have not done any investments yet. I'll provide an update on how easy or difficult it was after I make my first transaction.

Pradeep

Can vouch for how useful MF Utilities is. Been using it ever since it launched

Thank you! I haven't started using MF Utilities yet. Does it provide switch (within the same fund house), systematic transfer plan (STP), and systematic withdrawal plan (SWP) options?

Thanks,

Pradeep

Guys,
Need advice on investing in MFs. Haven't invested regularly in MFs, I'm 38. Want to start few MFs considering my age with a family (me, wife and daughter). Timeframe is 10 years and 40k amount/month. Risk appetite is moderate.
Thanks

Yes, it provides all of these.

With such a time frame and provided that all those 40K is surplus investment with no intent of paying liabilities with it (like a loan), you may also go with an aggressive plan and consider investing in all equity funds.

My advise will be to avoid too many schemes which may overlap holdings. You may split the monthly investment into max 5 schemes with 8K in each through SIP mode. Schemes like Franklin Prima Fund, ICICI Value discovery, Franklin High growth companies Fund, BSL Top 100 fund, etc are good options.

Now since your time frame is 10 years, you may also consider putting some amount in ELSS (provided you have not exhausted your 80C) which will also benefit you in form of tax savings. Birla Sun life Tax relief '96 is a good option for the same.

Hope this helps,

Regards,
Saket.

Disclaimer: Not connected with any of the AMCs above.

You can transfer them to another account, as they are in Demat format (I got it clarified from the founder of zerodha and they reply promptly for your queries on their website).

Note: there are charges to transfer funds into your demat account (other options also exist but may incur NEFT / IPMS charges from your bank) + DP charges during redeem (due to accounts being on demat format) + 50 Rs per month for MF trading + 300 Rs demat account charges per year

Advantage is that you have both stocks and MFs on single platform @ nominal fee.

Wonder how is Unovest making money by offering direct funds on their platform with no fee?

Not everyone would opt for paid plans like DIY / Advisory / other plans. Probably they are currently in the process of building a customer base and later might charge a monthly fee (on the current free plan), once they have a good number of customers on boarded.

Yes, i too have been using it and find it quite good.
Yes they do. And in addition, they are working on switch of funds between AMCs. They plan to introduce this soon.