MF comparison tool - Q & A Forum

Q & A Forum › Category: Portfolio Review › MF comparison tool

Jeevan asked 9 years ago

Hello Sreekanth, Some time back, I recall that you had published a MF comparison tool, so as to guide investors in which sectors they have higher or lower exposure. But I lost my bookmark, can you please guide me to the tool That tool, used Money-Control to extract information of the MF and its holdings (sectors) in which it was investing. So comparing that information, your tool could tell in which sector the investor has exposure and where he does not (or has less) thanks Jeevan

3 Answers

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi Jeevan, I guess, you are referring to Portfolio overlap analysis tools; https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/

0 Vote Up Vote Down

Jeevan answered 9 years ago

Hello Sreekanth, Even after comparing my MF investments using the comparison tools, I am not sure if one should take any action. For example, lets us assume one has 5 lakhs to invest (lump sum). They are invested as 1 lakh each in "Equity - Large-cap funds", "Equity-Sector funds". , "Equity-Mid-cap funds" and "Debt-Income funds", "Debt-Dynamic bond funds" This way a 60-40 exposure over Equity and Debt, is achieved. Now the 1 lakh in "Equity - Large-cap funds", are distributed over 5 funds (20K each) (Birla SL Frontline Equity, Birla SL Top 100, Franklin India Bluechip, SBI BlueChip, Mirae Asset India Opportunities) This way the 1 lakh are not parked in a single 'Equity-Sector' fund. and similarly for the rest of the money covering Debt, etc. (in all 25 different fund schemes) Is this good or bad? Should other factors be considered as well? Just following the proverb, "do not keep all your eggs in the same basket". thanks Jeevan

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi,
What if the portfolios of these five Large-cap funds have high overlap? Is this really beneficial to the investor?
Is n't that difficult to track the performance of so many funds?

Diversifying across Asset classes is good. Ex : Mutual funds, stocks, gold, real estate, bonds etc.,

Diversifying within an Asset class is good. Ex : Large cap fund, MIP, mid cap fund etc.,

But holding multiple funds from same fund category may not be really beneficial..