Good that you revisited your earlier thoughts. When i started following your thread, i always wished , you will come back to it later with updated thoughts.
My few observations:
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mutual fund investment makes you less emotional about investment and start to look at them , more as an instrument/vehicle to fulfill different financial goals. You lose attachment with them. So if i need money for some personal purpose, i can easily sell uints of mutual funds without any hangover of emotions. But same is not true if you tell me to sell some shares of my any core holdings like Deepak nitrite or bajaj finance. I will feel like i m losing part of my own business. Its difficult to sell.
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If you really give it a deep thought, then frankly our mutual fund portfolio actually allows us to enjoy life and live a luxurious life as we can actually spend them as and when we want. But equity portfolio are like a legacy which we may not enjoy for ourselves at all…may be our children will enjoy that. So frankly sometimes i wonder…if i purely think for myself, then does it really make a practical sense? I want to enjoy my life with my hearts content and may be want to leave behind a little…But certaintly not to compromise for the sake of next generation.
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There can be a strategy of mixed risk management of stocks portfolio with mutual funds portfolio.
Just for an example…pharma is not your competence area and dont want to keep any pharma stock in portfolio…then you can manage this risk of zero exposure to pharma by putting some percentages in pharma sectoral mutual fund. -
since i m not yet able to decide on the proportion of allocation between stocks portfolio and mutual fund portfolio…every month when i have surplus amount to invest, it difficult to decide between the two…rather difficult to invest into mutual funds as my stock bets tempt me to increase their sizes , instead of purchasing more units of mutual funds
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