馃攳
3 BEST Mutual Funds for Salaried People - YouTube
Channel: unknown
[0]
please do not look at the fact that you
[1]
know what okay last three years kagar
[3]
has been this so therefore i will
[4]
continue to invest there is a very small
[6]
correlation between past performance and
[8]
future performance of a mutual fund so
[10]
because of this upswing in certain
[12]
sectors sometimes these sectoral funds
[14]
do very well and sometimes they just
[16]
tank so please be little bit aware and
[18]
conscious hi everyone welcome to today's
[20]
video so did you know that as per sebi
[23]
there are roughly 1500 mutual funds in
[25]
india these are divided into roughly 40
[28]
categories so the reason why i'm telling
[30]
you this interesting fact is very simple
[31]
that picking mutual funds these days is
[34]
becoming as complex as picking stocks so
[37]
i thought that i will shoot a simple
[38]
video wherein you can go and pick mutual
[40]
funds systematically using data yourself
[43]
without getting confused how will you do
[45]
it i am linking an excel spreadsheet and
[47]
i will walk you through this spreadsheet
[49]
where entire dynamic systems have been
[51]
inbuilt you need to go filter things out
[53]
as per the indicators you consider to be
[56]
important and you will get a mutual fund
[57]
list that you could consider investing
[60]
in this might be a great option for
[61]
people who systematically invest in
[63]
mutual funds on site basis that is that
[66]
they get their salary and then they
[67]
direct a certain portion of that salary
[70]
into certain mutual funds so this entire
[72]
excel spreadsheet can help you out in
[74]
terms of researching these mutual funds
[76]
better couple of important disclaimers
[78]
number one this is not a sponsored video
[80]
why because this has been sponsored by
[82]
my company which i run which is called
[83]
as visitor match we run very good
[85]
investment related courses the link is
[86]
in the description box and you can check
[88]
it out second key point some of you have
[90]
asked me to share my understanding of
[92]
some good mutual funds so i will take
[94]
some names along the way those are not
[96]
the sponsors of this video because i'll
[97]
be taking names of multiple companies
[99]
here on top of that i myself am telling
[101]
you very very categorically that i do
[103]
not invest in mutual funds in
[105]
traditional sense i only do index
[107]
investing when i have to invest in
[108]
mutual funds and majority of my
[110]
investments almost 90 95 plus is done
[113]
through direct equity purchase so that
[116]
is my style of investing very very
[118]
categorically putting it out so with
[119]
those disclaimers out of the way let me
[121]
do three things number one let me talk
[122]
about very basic stuff because some
[124]
people might not be the regular viewers
[126]
and they might be watching this video
[127]
for the first time so you can consider
[129]
skipping this section in case you
[130]
understand the basics of the mutual fund
[132]
second i will take you through the excel
[134]
spreadsheet and teach you how you can
[136]
filter mutual funds as per your style of
[138]
investing and as per the portfolio that
[140]
you're looking to build third and
[141]
finally i will talk about three mutual
[143]
funds that i consider to be good and if
[145]
i were to invest my salary today which
[148]
three mutual funds i will pick and buy
[150]
so let us get the discussion started and
[151]
first and foremost let me take you
[153]
through the basics of mutual funds there
[155]
are 100 different basics but i will
[156]
explain five very important basics so
[158]
first let us understand the difference
[160]
between a stock and a mutual fund a
[162]
stock is also called as equity so it
[164]
could be difference between equities and
[165]
mutual funds or stock and mutual funds
[167]
so very quickly let us pick an example
[169]
so let's say that if i am buying a stock
[171]
called as itc then what is it that i'm
[173]
directly doing i'm buying a company so
[175]
i'm directly going and purchasing a part
[178]
of a business directly this is not
[179]
mutual fund this is stock or equity on
[181]
the flip side a mutual fund what it does
[183]
is that it has a collection of different
[186]
assets for example it could have itc it
[188]
could have hul it could also have hdfc
[191]
bank so minimum there will be two assets
[193]
in a mutual fund and maximum can be
[195]
limitless so a mutual fund is nothing
[197]
but a briefcase that's it right so
[199]
that's what a mutual fund is when you
[201]
are purchasing a mutual fund you are
[202]
getting an ownership in all the assets
[205]
that are a part of that mutual fund so i
[208]
hope this first basic point is clear
[210]
that what is the difference between
[211]
equities and mutual funds who manages
[214]
the mutual fund these are the mutual
[215]
fund managers who manages the mutual
[217]
fund what exactly do i mean when i say
[219]
that they manage the mutual fund so
[220]
basically they are buying and selling
[222]
equities or whatever the underlying
[224]
asset of that mutual fund is now second
[225]
key point that you need to understand
[227]
about mutual fund is the difference
[229]
between direct and growth plan please
[231]
directly go download an app any mutual
[233]
fund buying app i am not going to talk
[235]
about which app you can use whichever
[236]
app you are comfortable using and you
[238]
need to go and buy the direct plan so
[241]
that is the categorization of mutual
[243]
fund that you need to buy for example if
[245]
you are talking about a mutual fund sbi
[247]
blue chip mutual fund then you buy the
[249]
direct plan of it not the growth plan
[252]
why because there is no difference
[253]
between the two except for the fact that
[255]
in the growth plan the commissions are
[257]
higher so please remember this point
[258]
very very important point i have helped
[260]
you save some money the third key point
[262]
that you need to understand is the
[263]
duration of the mutual fund for example
[265]
some funds categorically say that hey if
[267]
you are investing in our mutual fund
[269]
please keep a time horizon of three to
[271]
five years so please be considerate
[274]
about the duration please don't start
[275]
timing your returns from tomorrow
[277]
onwards that is a pointless exercise
[279]
some mutual fund managers say that we
[280]
try to optimize the short term or
[282]
momentum based performance of our mutual
[284]
fund so there you should be considerate
[286]
about the short term performance now
[287]
comes point number four that what types
[289]
of mutual funds are there there are
[291]
multiple types so i will not be able to
[293]
cover all of them but i will talk about
[294]
some basic things one would be that if
[296]
the underlying asset is of equities then
[299]
this is called as equity based mutual
[302]
fund right so that's point one a related
[304]
point here would be that it could also
[306]
be debt so that means loans so if the
[308]
underlying structure of the mutual fund
[310]
is that they are only investing in debt
[312]
then it becomes a debt mutual fund there
[314]
are also hybrid mutual funds hybrid is a
[316]
combination of debt plus equity on top
[319]
of that there are sectoral funds and you
[321]
know 100 different types of funds so i
[322]
will not be able to go through every
[324]
single type but when we talk about the
[326]
excel spreadsheet i will outline some of
[328]
the key points there fifth and finally
[330]
people get super swayed by the returns
[333]
of a mutual fund for example last year
[335]
this
[336]
mutual fund gave 25 return so this year
[339]
also it is going to give similar returns
[340]
no the past historic return of a mutual
[343]
fund is no guarantee that in the future
[345]
also that mutual fund is going to
[347]
perform this is something that you need
[348]
to keep in mind yes the positive part is
[351]
that maybe the fund manager is good and
[353]
if the fund manager has not been changed
[355]
then it gives you more hope that this
[356]
mutual fund is being run very
[358]
intelligently sensibly etc and you might
[360]
be able to make money through it please
[362]
do not look at the fact that you know
[363]
what okay last three years kaggar has
[365]
been this so therefore i will continue
[367]
to invest there is a very small
[368]
correlation between past performance and
[370]
future performance of a mutual fund so
[372]
with these disclaimers out of the way
[374]
let me move to step two where i will
[376]
show you the entire excel spreadsheet
[378]
how you can use filters in it and scan
[381]
mutual funds that might fit with your
[382]
portfolio or style of investing so this
[384]
is the entire mutual fund list so you
[386]
can go scroll through this list and take
[388]
a look at almost 250 mutual funds that
[390]
are listed here now i will explain you
[392]
the quick parameters here and then i
[394]
will talk about how you can go about
[395]
filtering mutual funds that fit with
[397]
your investing style so you can see a
[399]
few key columns one year return is one
[402]
three year return five year return what
[404]
is the expense ratio so very quickly
[405]
what is an expense ratio expense ratio
[407]
means the amount of money charged by the
[410]
mutual fund manager in order to manage
[412]
the fund for example if we are looking
[414]
at motival oswald medicare 30 fund
[417]
direct plan then the expense ratio is
[419]
roughly one percent so whatever money
[421]
you are giving to mutila oswal fund one
[423]
percent of that money would be deducted
[425]
on yearly expense basis most likely to
[427]
manage that mutual fund is this one
[429]
percent good what should be the expense
[430]
ratio etc etc that's an entirely
[432]
different discussion but generally
[434]
speaking anything less than one percent
[436]
is considered to be okay right so that's
[438]
what i would say that is my personal
[440]
opinion i do not like to pay so much
[442]
commission so i directly invest in index
[444]
funds if at all i am investing in
[445]
mutuals but other people also have their
[447]
perspective their viewpoint is that you
[448]
know what mutual fund managers know a
[450]
lot of stuff they are able to beat the
[452]
market all that stuff so therefore we
[453]
should give our money to professional
[455]
managers they might be able to generate
[457]
more returns i personally do not believe
[459]
in that philosophy so coming back to the
[460]
excel spreadsheet so you can take a look
[462]
at one year return three year return
[464]
five year return what is expense ratio i
[466]
have explained risk what is the meaning
[468]
of risk risk simply means the per amount
[470]
or per unit of risk that is associated
[472]
with the mutual fund well there are
[474]
multiple methods of doing it one method
[476]
is called as the beta method it aligns
[478]
with the volatility of the stock you
[480]
don't need to get into the math behind
[482]
it so let me give you a practical
[483]
example so let's talk about two options
[485]
option one option two option one is that
[487]
you invest in a small cap company and
[490]
you make a return of fifteen 15
[491]
okay this is option one option two i
[493]
give you is that hey you invest in nifty
[496]
and you make a 15 return which option
[498]
will you pick you will say that hey
[499]
returns are same in both so either of
[501]
the options i don't care no your answer
[503]
would be incorrect simply because of the
[505]
fact that in option one you are taking
[507]
higher amount of risk so that is what
[509]
the meaning of risk in market means this
[511]
is measured by something called as beta
[513]
i'll make a separate video on that but i
[515]
hope you get the picture what is the
[516]
meaning of risk when we are talking
[518]
about risk category here and return is
[520]
very obvious that this is the alpha or
[522]
the absolute return generated by the
[524]
mutual fund for example again if we take
[526]
a look at aditya birla sun life then its
[529]
one year period return was roughly 25
[531]
percent three year was ten percent five
[533]
year was five point one two percent so
[535]
if the return here is stated as high
[538]
what does it mean it means that in its
[539]
own category its returns are higher so i
[542]
hope all these constituents are clear
[544]
now how you can go and filter things out
[546]
so here you can see it says create a
[548]
filter so you just simply go there and
[549]
let's say that you're a short-term
[550]
investor and you want to do momentum
[552]
investing in mutual funds what is
[554]
momentum investing it simply means that
[556]
you are trying to invest in funds that
[558]
are playing the short-term markets and
[560]
they are usually giving high returns in
[561]
the short term so we will go by that so
[563]
here what you do is that you go here and
[566]
you sort out by high to low so z2a means
[569]
high to low and a2 z means low to high
[571]
so let's sort by z to a and you can see
[574]
that motilal oswal one-year return has
[576]
been quite good and it has been doing
[578]
some wonderful things on the flip side
[580]
let's say that you're interested in our
[582]
time horizon of three years so again
[584]
what you do is that you sort out by high
[586]
to low so here the dynamics change here
[589]
you have to go this because for some
[591]
funds it was not available so you start
[593]
from here it is called as quant small
[595]
cap fund so its three year return has
[597]
been quite high similarly if you are
[598]
interested in the five year performance
[600]
again go and sort by z2a again the
[603]
dynamics would change you go down and
[606]
here you will see this right so sbi
[609]
magnum income fund so these are some of
[611]
your options so you go play around with
[613]
this excel spreadsheet and figure out
[614]
funds that make the best sense for you
[617]
what i would say is that number one
[618]
please do not aggressively study the
[620]
past performance of a specific fund
[622]
especially if the mutual fund manager
[625]
has changed or is about to be changed
[627]
this is a very very important point how
[629]
will you figure out the information
[630]
about a mutual fund i will show that to
[632]
you in the next section of the video
[634]
number two point please take a look at
[636]
the funds name for example here you can
[638]
see sbi small cap fund so small cap
[641]
means what small cap means small
[642]
companies now if you are investing in
[644]
small companies then of course the
[646]
return that you are supposed to make
[647]
should be high there is no point in
[649]
investing in small companies and getting
[651]
returns that you will get by investing
[653]
in nifty that makes no sense because you
[654]
are taking higher unit of risk in this
[656]
particular option and you get this
[658]
information through the name of the fund
[660]
itself now comes point number three that
[662]
please understand the fund type for
[663]
example i would generally avoid
[665]
investing in hybrid funds because the
[668]
expense ratio is very high so let me
[670]
show that to you so here we go we use
[671]
the filter z2a this is 2.45 so this is a
[674]
sectoral fund so sectoral funds also
[677]
usually have a very high expense ratio
[678]
so for sbi sectoral funds sectoral fees
[681]
for example infrasector or pharma sector
[683]
or i.t sector so that involves a lot
[685]
more charges in case you want i'll make
[687]
a separate video on sector specific
[689]
funds what sectors you should be buying
[691]
what sectors you should be avoiding in
[693]
case you are interested in sectoral
[694]
funds but yes the advantage is that
[696]
sectoral mutual funds can give you very
[698]
high returns if the sector is on an
[700]
upswing for example these days the real
[702]
estate sector seems to be going up now
[704]
this is not an investment advice that go
[706]
invest your money in sectoral mutual
[707]
funds associated with housing and all
[709]
that no i am just giving an example so
[711]
because of this upswing in certain
[713]
sectors sometimes these sectoral funds
[715]
do very well and sometimes they just
[718]
tank so please be little bit aware and
[720]
conscious and understand what you are
[722]
investing into similarly you can see
[724]
taurus infrastructure fund this is two
[725]
point one four so this is parak park
[728]
flexi cap so flexi cap means that hey so
[730]
you can switch between small cap midi
[731]
gap large cap companies so typically
[733]
hybrid flexi cap and sectoral funds have
[735]
high expense ratio so please understand
[738]
before investing into these funds that
[739]
the expense ratio is going to be high
[741]
you should be doing it should not be
[743]
doing it that's a separate discussion
[744]
altogether but i just wanted to
[746]
highlight this point so now let us speak
[747]
about the third section where i will
[749]
speak about three mutual funds that i
[751]
consider to be good again not an
[753]
investment advice but i am picking these
[755]
mutual funds because they give me some
[757]
kind of diversification and i will at
[759]
least teach you how to analyze these and
[761]
again you can go back to the excel
[763]
spreadsheet whichever mutual funds look
[765]
good to you you can run the same
[767]
analysis on these different mutual funds
[768]
and take some positions in case you are
[770]
investing via mutual funds so the first
[772]
mutual fund that i would look closely
[774]
into is called as para park flexi cab so
[777]
why do i like this mutual fund simply
[778]
because it is giving exposure to both
[780]
indian markets and global markets so
[782]
it's a very very diversified so just to
[784]
give you some idea these are the
[785]
constituents and top ten holdings of
[788]
this mutual funds and you can see that
[789]
it has itc which is a defensive stock it
[791]
has bajaj holding which is a slightly
[793]
aggressive stock it has microsoft google
[795]
which are international companies so
[797]
first key point that i like about this
[798]
mutual fund is that it gives you
[800]
international diversification especially
[802]
across large cap so this is the first
[804]
key point second key point that it has a
[806]
good balance of aggressive and defensive
[807]
stocks so it looks like that people
[809]
managing this mutual fund are doing a
[811]
sensible jobs in terms of hedging the
[813]
risk so this is point two the third key
[815]
point is that this seems like a growth
[816]
focus mutual fund for example if you
[818]
take a look at the overall portfolio you
[820]
can go here and check it the 22 percent
[823]
is foreign investment holdings 70
[825]
percent are indian stocks and large cap
[827]
is almost 60 midi caps and small caps
[830]
are being balanced out so from that
[831]
particular perspective this is a
[833]
slightly aggressive mutual fund and if
[835]
you have a slightly longer holding
[837]
period three to five years time then
[838]
this seems like a decent mutual fund so
[840]
now let me also show you some numbers
[842]
for example if you take a look at the
[844]
trailing returns for this particular
[846]
fund whether it's on one day one week
[848]
three months six months one year three
[849]
five seven ten years basis and compare
[852]
it to s p 500 or other equity flexi cab
[855]
why are we comparing it to other equity
[857]
flexi cap because this is the category
[859]
of funds in which parag park flexi cap
[861]
fund currently lies so in most occasions
[863]
it has done better than the market and
[865]
it has definitely done better than its
[867]
competitors now let me very quickly move
[869]
on to a mid gap mutual fund and here my
[871]
pick would be access mid cap mutual fund
[873]
on a side note there has been a lot of
[875]
problems with the xs mutual fund house
[877]
itself in case you do not know about it
[879]
please go and read the news so there has
[881]
been corporate governance issues with
[883]
access but that does not discount the
[884]
fact that access is a very big group and
[887]
their mutual funds have reasonably done
[888]
well at least majority of them yes in
[890]
some mutual funds some fund manager did
[892]
some kaplan that's a separate story
[894]
altogether but that does not mean that
[896]
all access mutual funds are bad so very
[898]
quickly what does access medigap mutual
[900]
fund comprises of so these are the type
[902]
of companies that access mid cap mutual
[904]
fund holds they seem to be slightly more
[906]
biased towards finance oriented stocks
[908]
so that's a double edged sword because
[910]
if the market starts giving a return
[911]
then finance stocks are going to
[913]
outperform the market but in case a
[915]
market correction or market crash
[917]
happens then of course finance stocks
[919]
are going to get beaten so please
[920]
remember that that in a growing economy
[923]
investing in these type of funds make a
[924]
lot of sense but if the economy is going
[926]
dharma dual and if it is not doing well
[928]
then it's a problem the second key point
[930]
is that in the last couple of years the
[932]
mid gap and small caps have under
[934]
performed the market so recovery is
[936]
going to come at some stage so it's a
[938]
timing oriented game as well that if the
[940]
mid caps and small caps start rising
[942]
then a fund like access midi gap mutual
[944]
fund is going to perform but yeah taking
[946]
a look at the overall portfolio of this
[948]
mutual fund the overall split of the
[950]
companies look sensible so you could
[952]
consider doing further research on it so
[954]
let us very quickly compare this funds
[955]
performance against the benchmark which
[957]
is nifty 50 index and other similar
[960]
funds so here you will see and you will
[961]
find it very surprising that so three
[963]
month performance have been worse
[964]
compared to 150 mid gap tri here six
[968]
month performance has been better but
[970]
one year performance almost same three
[971]
are almost same five year almost same
[974]
seven years slightly better ten year
[975]
almost the same then why is it that i am
[977]
rating this point positively simply
[979]
because of the fact that here you are
[980]
comparing it to 150 mid cap tri and if
[983]
you take a look at access mid cap fund
[985]
it has a portion dedicated to small cap
[987]
funds also and for the last two years
[988]
entire small cap and midi caps have been
[990]
badly beaten down in fact they are still
[992]
trading very low so whenever the small
[994]
cap and mid cap start doing well this
[996]
type of fund is likely to do better now
[997]
comes the third and final fund which is
[999]
the sbi small cap fund i wanted to pick
[1002]
a small cap fund to discuss with you so
[1003]
let me very quickly show you some data
[1005]
around sbi small cap fund and if you
[1008]
start comparing it to nifty one month it
[1010]
has done better it has done better on a
[1012]
three month basis on a six month basis
[1015]
on a one year basis on a two year basis
[1017]
on a five year basis so it has
[1019]
consistently beaten the market and they
[1020]
are doing something good but again
[1022]
please go back to that concept of beta
[1024]
that since it's a small cap fund of
[1025]
course it is supposed to beat the market
[1027]
so there is nothing magical that is
[1028]
happening here it is just that there is
[1030]
higher unit of risk involved so this is
[1032]
point one point two is that if we
[1034]
compare it to peers has it done better
[1036]
so let me present some very quick
[1037]
analysis here so you can see the
[1039]
comparison of the peers as well so
[1041]
relatively speaking on a three-year
[1043]
five-year basis it seems to be doing
[1045]
well and even on a one-year basis it
[1047]
seems to be doing well so overall it
[1049]
looks like a sensible fund so let us
[1050]
very quickly take a look at the
[1052]
portfolio split of this fund and you
[1054]
will see companies like blue star v
[1055]
guard these are all good companies
[1056]
sheila forms it does mattresses i'll
[1059]
make a separate video on this this stock
[1060]
is already on my list so i will dissect
[1062]
this talk in detail so the overall
[1064]
portfolio looks good now very important
[1066]
set of disclaimers before you start
[1068]
acting on this advice number one i have
[1070]
already shared the entire framework
[1071]
please go use the excel spreadsheet
[1073]
please identify your risk profile your
[1076]
holding period of these different assets
[1078]
and then only accordingly take positions
[1080]
i have narrowed down a lot of work for
[1081]
you but little bit of work you still
[1083]
need to do so that is one second key
[1085]
thing whatever three mutual funds i
[1087]
spoke about today they are slightly more
[1089]
aggressive and i am an aggressive
[1090]
investor so i would usually invest in
[1092]
small cap mid cap companies i'll buy
[1094]
internationally tech companies etc etc
[1097]
so this style of investing might not
[1099]
make sense for you and therefore all
[1101]
these three funds might be pointless to
[1102]
you so in that respect you should go and
[1105]
only invest in large cap mutual funds so
[1107]
please do not do lump sum investments on
[1109]
these mutual funds and final final final
[1111]
point that the nature of these mutual
[1113]
funds their mutual fund manager might
[1115]
also change they might start taking some
[1117]
weird bets i do not know from time to
[1119]
time i will analyze all these mutual
[1120]
funds and i will keep on updating all of
[1122]
you but to cut the long story short
[1124]
please keep a track of wherever you are
[1126]
investing your money at least open up
[1128]
read about whether any material changes
[1130]
are taking place in that fund and
[1131]
accordingly restructure your portfolio
[1134]
thank you so much for watching and i
[1135]
will see you soon
[1137]
[Music]
Most Recent Videos:
You can go back to the homepage right here: Homepage