No expert but let me share my opinion.
First of all you want to maximize return with the least risk possible and also with minimum effort.
So, you select a investment way that offers you the best risk reward or risk adjusted return. So, It’s a prudent thing to invest via MFs
Please consider the following things.
- If you are underperforming in a calendar year then it may not give the right picture. For ex. If you invested in chemical cos, you have underperformed but the same PF may outperform the index in next 2-3 years. So, the data you’ve shared in not enough to decide whether you’re skilled enough to invest directly
- Look at the Risk reward ratio: The smallcap and midcap indices can fall 30-40%, but probably you’re portfolio is robust enough, so it may not fall as much. In this case underperformance is justified. It may mean that you underperform the market in good times and overperform in bad times
However, if you think that you don’t have enough skill or time to invest directly it’s better to leave to an expert. You can develop you skill and build confidence in your self by managing may be 10-20% of your portfolio on your own. A few years down the line, based on your performance you can decide on whether to manage all your money by yourself or not ?
Disc: Not an expert. Please use your own diligence
Praveen
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