Monday, 17 May 2021

My mutual fund journey

My mutual fund journey isn't great so far with meager returns, I have invested previously in Franklin dynamic PE FOF and Franklin ultra short term bond fund, which did not give great experience and FOF did not give good returns. My investments in passive strategy were good but I have panicked and impulsively sold them in Aug 2020, I have adopted a strategy to invest in direct stocks but my strategy does not need so much cash, and keeping them in debt NPS did not seem right so shifted that money to Morningstar managed portfolio although I have opted for a balanced portfolio.

My expectation is to have an overall return of 8%. My EPF does give a tab above this rate now I just have to keep my nerves with rest and ride out the next storm to achieve 8%.

Thursday, 6 May 2021

April stock portfolio

I have added Chaman Lal Setia Exports, Panasonic Carbon India Co. Finolex Industries, and Cupid. LIC Housing Fin. dropped 20% from my buy price and added 10k. Manappuram Finance dropped 10% so added 10k.

Total investment = 5,66,250

Value at the end of April 30th = 6,56,261

Value at the end of April 30th = 6,48,035
if invested in BSE 500

The chart is from Morningstar when I compare it with Bse 500

US Stocks:

Added Biogen, Vertex Pharmaceuticals, and NVR. I add $150 as an initial investment for foreign stocks.

You can find my Indian and foreign stock trades in stock trades.

Investment Policy Statement

Got this idea from the below link and it raised many questions

Create an investment policy statement

An investment policy statement (IPS) is a statement or document that outlines your general investment goals and objectives. It also establishes your specific investment strategy, risk tolerance, asset allocation, and investment philosophy. You can also include a section on how often you want to monitor your portfolio and when to rebalance. Write your IPS down. Keep it handy so you can refer to it when needed.

Investment Policy Statement

I already have one but not as specific as it should be.

Original: To have 25 times my last 12 months' expenses and not touch the savings at any cost unless medical emergency or job loss.

My investment strategy is simple, to put money in dynamic PE FOF after-tax investing.

Risk tolerance is low so invested in a dynamic fund that invests in both debt and equity.

Asset Allocation is simple too as the fund does it every month based on PE ratio.

The investment philosophy is to take less risk and ride the equity and debt markets at the same time and long enough to reach my goal to have 25 times my last 12 months' expenses (I should be tracking my expenses every month without fail).


New statement:

Original ambition remains the same but changes in asset allocation. PE fund is charging me 1.5% and if I am FI a few years from now and plan to withdraw 4% the expenses alone will consume 37.5% of my withdrawal. This is a high-cost option, I think I am making excuses not planing to work and be lazy and planned to retire in 5 years, but caring for my mother the financial burden makes me think I should work as long as I can and build wealth for myself and kid.

My investment strategy is simple, to put money in Nifty 100 index funds after-tax investing.

Risk tolerance is high as I am planning to be in the workforce as long as I can, even if disasters occur I plan to cover expenses through the emergency funds, PF money which I can withdraw in case of job loss or medical emergency. 

Asset Allocation is simple too as funds invest in Nifty 100 at low cost. I am not planning to re-balance as I am in the wealth accumulation phase, will think once I am FI on allocation change.

An investment philosophy is to take high risk and ride the equity markets and use emergency and PF cash in case of tough times and long enough to reach my goal to have 25 times my last 12 months expenses (I should be tracking my expenses every month without fail).

How often you want to monitor your portfolio?

I am monitoring it daily now, which is not a good thing but can not help it. I Will see if I can monitor it only on weekends.

Stick with YOUR plan
Have to see how long I am going to stick to the plan.
(Aug17,Sep17,Oct17,Nov17,Dec17,Jan17,Feb17,Mar17,Apr17,May17,June17,July17) lasted for a year.

A new plan from August 18:

Invest in index funds UTI Nifty Index Fund and UTI Nifty Next 50 Index Fund hoping to invest for 10 years at least. The change in plan is to use a low-cost option and ride the tide with emergency and PF cash cushion.

If money is in the Index I should monitor it once every month to calculate net worth.

A new plan from 5th May 21:

Invest in morningstar managed portfolio, ELSS/NPS Tier I for tax purpose  and invest in direct equities. The idea is to never sell any stocks or mutual funds I buy from here on. Coffee can portfolio will be a cornerstone for my investments from now on. The idea is that we have to give time for investments to mature at least 10 years and choose carefully. 

I will sell my investments only when I need money for emergencies (medical/unexpected travel) or unexpected events(job loss). 

I will sell my investments when I need money to provide for my kid's education.

I will sell my investment if my investment thesis is wrong or investment turned out to be fraud.

I will sell my investment if CAGR for 10 years is less than SBI home loan rate.

Friday, 30 April 2021

Monthly portfolio update and FI date


I have received a salary of 1,08,723 and I have about 30k in saving and may spend about 50k in May will need 20k and the remaining 88,723 I will move for investments.

Passive investments:

I have received 767 as dividends in the month.

Portfolio Value as of April 30th:

Fund NameApr 21
Franklin India Ultra Short Bond Fund - Super Institutional Plan - Direct Plan₹1,23,609.34
Franklin India Taxshield Fund - Direct Plan₹61,267.14
ICICI Prudential Savings Fund - Direct Plan₹1,03,236.32
ICICI Prudential Long Term Equity Fund (Tax Saving) - Direct Plan₹54,984.61
Axis Long Term Equity Fund - Direct Plan₹42,529.32
NPS TIER I₹1,76,681.01
EPFO balance₹12,96,859.00
Indian Stocks₹6,56,261.00
US Stocks @₹74.1₹1,82,473.51
Manas education fund-₹297,754.34
Total Value₹78,51,266.29

Mother's health care fund stands at 26,050.01

The vacation fund stands at 22,294

Company shares stand at $613.31, I probably will keep the shares until I leave the company.

FI Date:

Nov 2023 which is 2 years 7 months. I have spent a total of 4,77,779 in the last 12 months, it is 39,814 per month. I will be able to cover 16 years 5 months of expenses. I have to make a 6.09% (+inflation) per year return if I have to be financially independent now.